2 days ago
Is Visa's Tap to Ride in Shanghai More Than Just Transit Convenience?
Visa Inc. V, a world leader in digital payments, is set to launch its 'Tap to Ride' service across the entire Shanghai Metro from June 28, following a successful pilot on the Shanghai Maglev Line on June 14. International travelers will be able to access any of Shanghai's 21 metro lines and 517 stations by tapping their Visa contactless cards to enter and exit the system.
Spanning 896 kilometers and serving more than 77% of Shanghai's daily public-transport users, the Shanghai Metro is among the largest and busiest urban-rail systems globally. With the rollout of Visa's 'Tap to Ride,' international cardholders will gain access to a secure, convenient and contactless way to pay for travel. This integration will enhance the transit experience, making journeys quicker and more efficient.
This move aims to connect 5 billion cardholders to the city's transit system, supporting Shanghai's growth as a global consumption hub. With contactless payments rising in popularity, Chinese users witnessed a 10% increase in Tap to Pay usage during the 2025 May Day holiday. Visa has launched more than 870 'Tap to Ride' projects globally, processing 2 billion contactless-transit payments in fiscal 2024.
Apart from boosting transit convenience, the expansion of 'Tap to Ride' is likely to enhance Visa's financial outlook by increasing transaction volumes, especially from international travelers, boosting cross-border revenues and strengthening its presence in key markets like China. It supports the global shift to digital payments and enables data-led partnerships that contribute to sustained business growth.
How Are Mastercard and American Express Keeping Pace in Transit Expansion?
Mastercard Incorporated MA has expanded its contactless-payment capabilities across the Beijing Metro, allowing international visitors to use their Mastercard-issued cards to pay fares directly at all metro stations. As the first global payment brand fully integrated into the city's transit system, this move highlights the growing push among major networks to enhance urban mobility and deliver seamless payment experiences for global travelers.
American Express Company 's AXP contactless cards have been accepted on Singapore's MRT and buses since May 15, 2025. American Express users enjoy standard fares, no registration and trip tracking via the SimplyGo app, enhancing convenience and transparency. This expansion strengthens American Express's position in global transit payments across key urban markets.
Visa's Price Performance, Valuation and Estimates
Over the past year, Visa's shares have gained 10.3%, outperforming the industry and the Zacks S&P 500 Composite.
Visa YTD Price Performance
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 28.1, up from the industry average of 22.47. Visa carries a Value Score of D.
The Zacks Consensus Estimate for Visa's fiscal 2025 earnings implies 12.9% year-over-year growth, followed by a 12.4% increase next year.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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