Buckingham Research analyst Chris Brendler thinks there’s plenty that investors still underestimate about the two card companies, which he calls “simply the best businesses we’ve ever seen.” Visa and Mastercard have significant pricing power and are proving to be consistently resilient against up-and-comers in the payments landscape. And they’re poised to keep growing volume and earnings as they further eat into cash and check usage
.. For the most part, Visa and Mastercard have made it so that every relative newcomer in payments has to go through them. The companies struck deals with PayPal, for instance, so that the service would stop dissuading users from funding transactions with their credit cards. And while Apple Pay and other similar mobile-wallet services haven’t really taken off, Visa and Mastercard are well-positioned in case they do, since these tools rely on credit and debit cards, too.