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Notably, Visa has talked up its July purchase of CyberSource Corp. as giving it the tools to respond to the constantly evolving e-commerce and mobile payment space.
October 28 -
Visa Inc. is making inroads into the world of third-party software development, bolstering its ability to compete in e-commerce payments.
October 25 -
Observers say that Visa is trying to make its brand more relevant to a new generation of shoppers groomed on one-click online services — an audience that does not want to type a 16-digit number every time it decides to buy something.
July 5 -
Visa Inc.'s planned purchase of CyberSource Corp. shows that the payments company is serious about mobile commerce — and the potential risks of this emerging channel.
April 21 -
Visa Inc. said Wednesday it has agreed to buy the e-commerce merchant processor CyberSource Corp. for $2 billion.
April 21
Visa Inc. is making a stronger push in e-commerce by buying a payment platform for online games.
The card network said Wednesday that it has agreed to buy PlaySpan Inc. for $190 million in cash. The deal furthers a strategy set in motion last year with its
The PlaySpan deal gives Visa the technology to support a bigger role in growing markets such as online games, smartphone apps and social media. It also gives Visa a platform to support micropayments, said Beth Robertson, the director of payments research at Javelin Strategy and Research.
"On balance, that is positive although, since those markets are developing, PlaySpan does not have a broad, established share," she said. "Visa and CyberSource will have to contribute their resources to build that."
Most funds that move through Visa's network today are generated from consumer spending at merchant sites. Visa's presence in e-commerce, though strong, "is not as significant," said Thomas C. McCrohan, managing director for equity research at Janney Montgomery Scott in Philadelphia, in a note to investors published Wednesday.
"CyberSource was a clear message that Visa sees e-commerce as an important battleground," he wrote. PlaySpan's technology lets game and mobile app developers sell content through "in-app purchases" in 180 countries, meaning that users would not have to shut down the game to buy things through another window or device.
PlaySpan in Santa Clara., Calif., sells a virtual currency that can be used to pay fees and make purchases within many popular computer games, including FarmVille and EverQuest. Players can use cards loaded with this currency in stores as an alternative to using a credit card online. Facebook Inc. also uses PlaySpan's monetization service to give its Facebook Credits users payment options.
Zilvinas Bareisis, a senior analyst at Celent, said the acquisition is beneficial to Visa, though the online game space presents some obstacles for it to contend with. "I think the biggest question is going to be: How regulated it will become?" he said. "What will happen as it starts growing?"
Virtual currency is inherently tough to track, he said, making it riskier than conventional payments. "All I'm saying is, it's something to watch out for," he said.
Karl Mehta, PlaySpan's chief executive, said in an e-mail sent through a spokesman that the Visa purchase "allows us to take it to a broader set of merchants beyond our initial focus and success with Digital Media publishers."
A Visa spokesman said no job losses are expected as part of the deal. He said he could provide no further details on it.
The deal is expected to close in Visa's fiscal second quarter, which ends March 31. The San Francisco payments network said it might pay additional amounts to PlaySpan for reaching performance milestones.
