Visa's AI-Proof Business Model: A Safe Bet Amidst the Tech Tumult
Visa's business model provides an enviable setup for AI growth, allowing it to profit from global spending regardless of which technology prevails.
The company doesn't need to pick a winner in the AI race as it earns a small toll on every transaction that crosses its network, much like companies selling picks and shovels during gold rushes.
Visa's revenue growth has been impressive, with the total value of payments crossing its network exceeding $4 trillion in a single quarter for the first time. This is a testament to the company's position as the trusted layer underneath digital commerce, making it less susceptible to AI disruptions.
The company is actively working to entrench itself at the center of emerging agentic commerce, where AI agents carry out purchases on behalf of consumers, and has reinforced its defenses with the acquisition of BioCatch, a specialist in AI-powered fraud detection.