Visa was created in 1958 as BankAmericard, the predecessor of a globally valuable card network.
Bank of America launched BankAmericard in California in 1958. The program was later expanded through participating financial institutions and renamed Visa in 1976. Visa became a major global payments network connecting cardholders, merchants, banks, and payment processors.
Visa does not generally lend directly to card users in the way a bank does. Instead, it operates the network that authorizes, clears, and settles many transactions, while member financial institutions issue cards and manage customer accounts. This business model helps explain why investors value Visa highly.
Mastercard is its closest major rival, but the two are separate companies. Visa’s market capitalization reflects its network economics and transaction volume, not the total value of money moving through its system.