Visa (NYSE:V) is expanding its value-added services business through faster product development, broader payment and banking capabilities, and increased investment in security, according to Andrew Torre, the company’s president of value-added services.
Torre said Visa launched more than 350 products, features and services during the year, a 25% increase from the prior year. The company has adopted artificial intelligence tools to develop prototypes and write code, with human supervision, and 60% of its developers and product teams have adopted the approach, he said.
Visa’s issuing, acceptance, and risk and security businesses are each growing more than 20%, Torre said. The event moderator said the businesses collectively grew more than 20% in fiscal 2026 and that Visa expects similar growth in fiscal 2027.
Services Extend Beyond Visa Payments
Torre said the common goal across the services portfolio is to help clients improve performance, whether through issuing, acceptance, risk products or advisory work. While Visa has traditionally supported its own payment network, he said it is increasingly providing services for other payment types and activities beyond payments.
As an example, Torre described an expansion of Visa’s fraud-scoring capabilities to non-Visa transactions. After a pilot with a client in the United Arab Emirates, Visa scaled the service, and it now has almost 400 million transactions, he said.
Torre cited Visa’s network, client relationships and distribution as competitive advantages. The company has 14,000 financial institution partners and 450 specialized value-added-services sellers, he said. Those sellers work alongside account executives, sales engineers and other staff to identify opportunities and implement products.
Visa also completed 40 advisory engagements in fiscal 2026 in which its teams worked directly with clients on their business goals, Torre said. The company is looking to more than double that number. He described one engagement with an Asian client in which Visa helped improve card benefits and address transaction declines while identifying opportunities to sell additional services.
Pismo and Tokenization
Torre said Visa acquired Pismo to address client concerns about costly, complex legacy technology and the need to bring products to market faster. The cloud-based platform supports debit, credit and commercial processing and is available in 28 markets, he said.
Clients can test individual use cases rather than move their entire business at once, Torre said. He cited Westpac as a processing win and Wells Fargo as a core banking win using Pismo’s ledger. Torre expects banks’ transition from legacy core systems to play out over the next five to 10 years, though he said institutions must weigh the cost of transformation carefully.
In acceptance, Torre said Visa wants to move from approximately 60% token penetration in e-commerce to 100%. Tokenized transactions deliver an approximately 5% uplift in approval rates and reduce fraud by about 35%, he said.
Visa began pricing tokens in April after years without a charge, Torre said. He added that a digital commerce authentication program designed to encourage tokenization and data sharing was producing a 300-basis-point lift, above Visa’s initial expectation of 100 to 200 basis points. He did not provide a target date for reaching full tokenization.
Cybersecurity and Emerging Opportunities
Torre described cybersecurity as a top-three issue for clients. Visa has commercialized its threat intelligence platform, embedding AI to help clients prioritize potential threats. The company also announced a partnership and small investment in Overwatch, whose technology gathers data from the dark web, he said.
Visa has announced an acquisition of BioCatch, which Torre said is expected to add behavioral identity capabilities. The transaction has not yet closed. Visa also offers tools intended to help clients manage transaction risks and maintain authorization services during outages.
Looking ahead, Torre identified stablecoins and agentic commerce as potential opportunities. Pismo already supports stablecoin payments for an issuer, Gnosis Pay, and Visa plans to integrate Pismo with its stablecoin platform, he said.
Torre also said clients in multiple markets are interested in testing Visa Intelligent Commerce, the company’s platform for agentic transactions. He did not provide a revenue timeline for the opportunity.
About Visa (NYSE:V)
Visa Inc. operates a global payments network that connects consumers, merchants, financial institutions and governments. Its network supports the authorization, clearing and settlement of electronic payments, including transactions made in person and online. The company’s services include payment processing, fraud prevention, identity and risk management, and money-transfer solutions such as Visa Direct. Visa-branded credit, debit and prepaid cards are issued by participating financial institutions; Visa generally provides the network and related services rather than issuing cards or extending credit directly to consumers.
