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Costco Win, Apple Pay Partnership And Organic Growth Make Visa A Solid Long-Term Holding

With the first quarter of 2015 now in the books I'm reviewing each of my stock picks from the beginning of the year to see if the original thesis that led me to buy in the first place still applies and see what has changed going forward for the rest of the year. This article focuses on Visa (NYSE:V).

Back at the end of 2014, I liked Visa for three reasons - the collaboration with Apple (NASDAQ:AAPL) for mobile payments, the opportunities for organic growth and improving economic fundamentals. While I believe that the organic growth story still applies I'm having some concerns that the retail spending environment might be weaker than I originally anticipated.

The rolling 12-month total number of transactions processed increased from 96M at the end of September to 98.4M at the end of December, indicating that consumers continue to increase credit card use. In the quarter ended in December, VisaNet processed transactions were up 10% year over year and payment volume was up 11%. And with outstanding consumer credit continuing to climb to unprecedented heights there seems to be little doubt that consumer credit spending is still alive and well. Read more