Watch Out, PayPal! Visa Vies For E-Payments

Eyeing ecommerce growth, Visa has agreed to buy online payment processing company CyberSource Corp. for about $2 billion. “Visa said the deal would increase the amount of online payments it processes and the resulting business for its client banks, which issue Visa credit and debit cards,� Reuters reports. PayPal parent eBay, meanwhile, had been better take notice. “We’re paying attention to PayPal, as well as other companies that are getting into the e-commerce space, and we are obviously concerned that that would have an effect on our market share ... This is somewhat in reaction to it,� Visa chairman and chief exec Joseph Saunders said Wednesday. The deal is slated to close in Visa’s fiscal fourth quarter, and will dilute its earnings for that quarter by about 4 cents to 5 cents a share.
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