Visa's CyberSource Enters Into Partnership With Tiket.Com

CyberSource, a subsidiary of Visa Inc. (NYSE:V) recently formed a partnership with Indonesian online travel agent (OTA), Tiket.com. Per the deal, the Indonesian OTA will receive CyberSource’s payment and fraud management solutions.

CyberSource is a payment management company that provides a complete portfolio of services to simplify and automate payment operations. It helps consumers to use its CyberSource and Authorize.Net brand solutions to process online payments, improve fraud management, and simplify payment security.

Tiket.com, on the other hand, is one of the largest OTAs in Indonesia. The company provides and facilitates online ticket ordering and purchasing system with an array of services. In fact, it boasts a below average fraud rate despite having doubled its revenues the last year.

This partnership is expected to help Ticket.com manage multiple customer channels through a single platform with a higher level of security. The travel industry involves cross-border deals with higher exposure to potential fraudulent transactions. Nonetheless, the company makes use of CyberSource Decision Managerto controlfraud as it grows its businesses.

According to CyberSource’s Senior Regional Director for Southeast Asia, Chew Ann Wee, the Indonesian eCommerce market is estimated to reach $16.4 billion by 2019 with the online travel sector becoming the country's second-largest market. Also, hotel bookings made through OTAs in Indonesia is expected to increase by $149 million owing to a 200–300% surge in online travel bookings. Hence, the aforesaid partnership will help Ticket.com, the largest online booking platform in Indonesia, to capitalize on the emerging opportunities as well as expand its operations geographically. The company should also benefit from customer satisfaction, and in turn retention, by proving them with seamless transaction.

Stocks That Warrant a Look

Visa presently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the finance industry are JetPay Corporation (NASDAQ:JTPY) , Wex Inc (NYSE:WEX) and Credit Acceptance Corp (NASDAQ:CACC) . While Credit Acceptance sports Zacks Rank #1 (Strong Buy), both JetPay and WEX carry a Zacks Rank #2 (Buy).