Payment processing firms Visa (V) and Mastercard (MA) snapped six straight sessions of gains on Wednesday. The former lost 0.11% to end at $320.47, while the latter closed 0.27% lower at $522.92.
Since February 24, Visa has gained 4.43%, while Mastercard added 5.29%. The rise came after stocks of both companies declined heavily in the previous session on the back of a research report that revived fears that stablecoin-based technology will obviate the need for traditional card networks. V registered a 4.50% fall, while MA plunged 5.77%
Specific to credit card payment stocks, the Citrini Research note theorized that agentic AI turned to stablecoin-based systems to execute transactions more cheaply.
However, Seeking Alpha analyst Secret Compounders defended Mastercard, arguing that the article ignores deeply ingrained consumer habits and Mastercard’s core value proposition.
“Consumers actively prefer credit cards because they view the friction as a benefit, not a problem. They love being able to easily dispute charges at the end of the month while earning cash back on every swipe. The 2-3% interchange fee is certainly a complaint for the merchants who pay it. Today, many alternative payment systems are formed because of merchant pushback,” it said.
MA’s value-added services segment, which includes cybersecurity and data monetization, is a key and often overlooked growth driver, the analyst additionally noted.
Meanwhile, Ray Merola was bullish on Visa with a Buy rating on the back of record outstanding financial and operational results.
Both companies have been rated as Buy by Seeking Alpha analysts, while Wall Street analysts have issued a Strong Buy call. As per Seeking Alpha’s quant rating, both V and MA have been rated Hold.