On Wednesday, Visa Inc. (V) announced the extension of its partnership with the United States Hispanic Chamber of Commerce (USHCC) for the next three years.
The partnership allows Hispanic merchants to use Visa’s expertise such as customized tools for cash flow management, complementary advertising with Visa products and Visa’s extensive online self-help materials that include pod casts, workshops and workbooks on business creation and management.
Additionally, Hispanic-owned firms are granted access to Visa Business network, which is a Facebook community that provides networking opportunity as well as access to useful content like news feeds, blogs and videos. Moreover, Visa and USHCC will continue the joint development of acceptance solutions for USHCC merchants to provide them access to the best interchange rates available in the market.
Visa also became the primary sponsor of the 2011 USHCC Convention and Business Expo, which will be held from September 18-21 at the Miami Beach. The event witnesses the biggest congregation of Hispanic business leaders in the US.
The partnership is mutually beneficial for Visa and USHCC. It allows Hispanic merchants to access Visa’s business solution tools and educational resources which help in cost management, cash flow management, increasing operational efficiency and overall business growth.
On the other hand, the partnership helps in increasing Visa’s sales and provides other benefits such as assured payment, better record keeping and faster checkout times, thereby providing the company with competitive advantage against arch-rivals MasterCard Incorporated (MA) and American Express Company (AXP).
We believe that this successful partnership is not only advantageous for the companies involved, but also aids job creation and helps the growth of the American economy as the Hispanic merchants’ community is growing very fast. The number of Hispanic-owned firms grew by 44% during 2002-2007, while the US national growth rate was less than half of that at 18%.
Additionally, the Hispanic merchants’ community had a higher growth rate of gross receipts, employee base and number of firms as compared to other non-minority-owned firms in the US. Thus, they are playing an important role in the recovery of the US economy.
Visa carries a Zacks #3 Rank, which implies a short-term Hold rating.