Elaborative SWOT Analysis of Visa – An American Multinational Financial Services Corporation

(Visa Range of Cards, Source: Visa)

Products & Services by Visa

• Credit Cards
• Debit Cards
• Prepaid Cards
• Payment Systems
• Electronic Funds Transfer

Competitors of Visa

• Mastercard
• American Express
• Discover card
• Capital One
• PayPal
• Bank of America
• J P Morgan Chase

Now that we have understood about the company let’s take a deep dive into the SWOT analysis of Visa.

SWOT Analysis of Visa

Talking about Visa’s business, let’s understand how this corporation can cater to different individuals using SWOT analysis. SWOT analysis of Visa helps us to understand companies through the lens of internal and external factors. Strength and weakness are based on internal factors whereas opportunities and threats rely on external factors of the bank.

To better understand the SWOT analysis of Visa, refer to the infographics below:

Below is a step-by-step detailed guide to help you with the SWOT analysis of Visa.

Strengths of Visa

• Largest Market Share: The company has the largest share base in the United States as it operates on a global level. It is also a leading operator of digital transactions and a segment leader in the market.
• Innovative Products: It has a successful track record of developing new innovative products according to the needs and changing customer behaviours and requirements to attract their customer base and to be able to satisfy their customer needs.
• Secured Dossier Centres: Visa’s dossier centres are secured heavily against crime, natural disorders, and terrorism. It can handle about 30,000 concurrent transactions and about 100 billion computations per second. Every transaction is checked against 500 variables, including about 100 fraud detection parameters like the location, merchant’s location, and customer spending behaviour.
• Endorsements: Visa has many sponsored events such as Visa Newsroom, Olympics, the Paralympics, FIFA and events happening on a global level.
• Currency Of Progress: It has launched a program to better educate the world about how digital currency advances economic empowerment and business competence worldwide. It supports the agreement and currency modifications for stable coins such as USDC.

Weaknesses of Visa

• Risk & Hazards: Visa is highly exposed to risk and fraud. The internal analysis gives insights into Visa’s weak transaction system that sometimes lead to major duping payments and due to this problem, customers doubt the veracity of the company and its products thus Visa transactions might lead to chaos at times.
• Abortive in Integrating Firms with Many Work Abilities: Visa is not highly successful at integrating firms with many work abilities and they are not able to focus on many things one at a time so there are not able to adjust to terms and conditions according to the needs of the company and that is why they only what they can handle well. 
• Disagreements are Seen in the Product Range: There have been few differences seen in the products sold by Visa. It can also be a sign of weakness as this inadequacy of choice can create a new competitor with a better product than the company. Conclusion: there is a loss of customer base and that overall will affect the company’s position in the financial market.
• Probe and Expansion: Investment in research and development are a little less as analysed by the continuous growth of players in the financial industry. Although Visa spends a ransom amount of money on probe and expansion, it backslides to compete with its competitors in the industry concerning innovation.
• High Dependency Rate: Visa has a high dependency rate on contractual relationships with large clients. It has a large base of clients from almost all around the world so it is dependent on these persons to do that work due to a healthy relationship with their clients.

Opportunities for Visa

• Upgradation in Technology: Visa’s new technology offers a convenience to practice distinguished price strategy in the new market. It can maintain its firm customers by providing great service and also able to attract some new customers utilizing value-oriented proposals. Thus by upgrading their technology they are trying to attract a huge crunch of major customer base.

(Visa Enable Next-Gen of Digital Payments, Source: EPI)

• E-currency: The across world use of digital currency at the international level has seen a big indication for Visa. By this, customers can easily do transactions with money by sending money to their relatives living abroad from any part of the world.

Honestly speaking, digital transformation has made it easy for people to do whatever they want, no matter wherever they are. Not only Visa, other online payments, scan payment facilities and UPI transfer facilities have also made our life sorted from the fuss of cash payments. People have understood the benefits of digitalization and the easement of online working, which is why businesses and brands are continuously learning and implementing various digital marketing skills to establish their online business and bring the relief of doing business in their life.   

• New Industry: Visa opens up new markets in the industry due to concessions with the government. This has helped Visa to adopt new high tech standards and also government free trade agreements. Visa proved itself as an emerging player entering the market and selling its product range.
• Fall in the Inflation Rate: The low inflation rate has bought more security in the market thereby enabling credit at a low-interest rate to the customers of Visa. All the players in the market are now feeling secure as the inflation has now come down and now they can purchase things easily because the demand is now on the lower side. 

Threats to Visa

• Global Transactions: As Visa is being operated across the globe, it is exposed to currency fluctuations as different countries have different currencies so these fluctuations happen because the price differs from country to country. It happens in a volatile political climate in many markets all over the world.
• Less Experienced Workforce: Visa faces a shortage of experienced workforce in many global level markets that are a threat to the current product and not having enough workforce comes as a threat to the company in the future.
• Competing Environment: The highly competitive environment in the financial market is very much dangerous for Visa. It has big rivals, including Mastercard as well as digital payments companies such as PayPal and they are also the most established companies in the prevailing market. Thus Visa has to make its USP if they want to survive in the market.

This ends our elaborative SWOT analysis of Visa. Let us conclude our learning below.