V Visa

Mike Milotich Visa, Inc.
Alfred F. Kelly, Jr. Visa, Inc.
Vasant M. Prabhu Visa, Inc.
Sanjay Sakhrani Keefe, Bruyette & Woods, Inc.
Harshita Rawat Sanford C. Bernstein & Co. LLC
Bryan C. Keane Deutsche Bank Securities, Inc.
Daniel R. Perlin RBC Capital Markets LLC
Tien-Tsin Huang J.P. Morgan
Lisa Dejong Ellis MoffettNathanson LLC
David J. Koning Robert W. Baird & Co., Inc.
Darrin Peller Wolfe Research LLC
James Schneider Goldman Sachs & Co. LLC
James E. Faucette Morgan Stanley & Co. LLC
Call transcript
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Welcome to the Visa's Fiscal Third Quarter 2018 Earnings Conference Call. All participants are in a listen-only mode until the question-and-answer session. Today's conference is being recorded.

If you have any objections, you may disconnect at this time. I would now like to turn the conference over to your host, Mr. President Relations. Vice Senior Milotich, of Investor Mike Mr. Milotich, now begin. you may

Mike Milotich

Good Thank call. welcome afternoon, to Katie. Visa's earnings and XXXX everyone, you, quarter fiscal third

highlights us financial at being site A webcast been Officer; our the Chief on has Investor Chief Kelly, our of are for and replay on Officer. Vasant slide IR our will section website archived Financial is Prabhu, days. Visa's A to deck Joining Executive call This statistical Relations today containing Al XX posted and website. Visa's be

you Let me future this also results a statements. forward-looking These our many and are remind could of that guarantees of presentation materially as result includes not differ actual statements factors. performance

recent find Forms you section Additional XX-Q, which the and on of reports on the factors information our our concerning those Investor can XX-K website is SEC's and available Relations website. most in

For earnings let historical measures Al. disclosed are GAAP information over call reconciliation available this And related the to release. in call, non-GAAP turn the financial in with today's and me that,

Alfred F. Kelly, Jr.

thank to thanks today. joining us everybody and afternoon Mike, for and good you

largely world. XX% as to EPS adjusted in have last growth consistent at increase largely We XX%. all due Processed almost Cross-border region stronger the percentage of decelerated constant third was growth in and capabilities was X around quarter accelerated versus in Payments every constant quarter growth. we've economic past we litigation our provision quarter a talent Revenue transaction with continued. point quarter the remained dollar. are economic Expense for basis by of drivers a prior of the global The quarters dollar strong. U.S. the new growth healthy key seen was XX% faster deploying volume higher XX% modestly in on basis growth XX%. Adjusted continue was growth markets pleased prior to by dollar on invest the very growth fundamentals with fueled growth our the versus as the few and credit results. XX%

returned of of billion dividends. repurchases results million capital my also take shareholders detail approximately $X.X when billion outlook $XXX and more quarter through our in nearly and remarks. to our through full-year consisting you We share of Vasant I $X.X this complete will almost

seeking a seeking Regarding or the this multidistrict U.S. make of progress we with subject written class litigation resolving to Discussions $XXX MDL the this interchange with litigation increase monetary negotiation of an reached provision and are continue agreement million ongoing. have is the in to principle injunctive in agreement the class agreement damages. are full relief also those negotiations That ongoing. and quarter,

any related make will to agreement any settlement agreement an We is and when announcement finalized. if

updates share around from Europe. me let the starting Now with world

there growth We Europe opportunity time feel continue increasing pleased in is very moving and completion. growth, performance across our the substantial tracks: as yield. be broad runway for opportunities and volume acceleration see country-specific of integration significant over the payments three nears forward with to We

offerings. in Cash capabilities. on and Italy, for transactions. and by XX% First, we Poland. Nine share as Direct large we a based an our such accounts contactless of domestic displacing Funds in investments Visa still our in and Fast of also innovative Europe advantages competitive innovative approximately where more working consumer with our cash FinTechs have markets We're active key or in on payments a domestic Europe's feel driving and can digital share several largest scheme, we have markets new enabling accelerate growth Spain, for volume of closely card increasing economies, and spend sizable

accelerate FinTechs weeks. speed-to-market access FinTech the with This Visa quarter program announced four fast-track to in onboarding by we

Klarna like investments upon European $XXX million the in support launched we've investment FinTech building to companies ecosystem, solarisBank. also and already program We made

markets innovative opportunities are product concentrated. clients' faster gain enhanced have We talent to solutions within markets and share to to investments plan is support marketing. and in share business our we target specific growing relatively on there as Second, where Europe current lower markets with

opportunity yields increase in there's Finally, Europe. to

focusing relevant commercial on are PSDX higher our more environment. debit-centric capabilities, solutions, yielding client particularly association we products, focus an Europe and acquisition, credit First, Visa of risk our Prior leveraging credit; was second, volumes. and our platform driving VisaNet global in consumer adoption very a did processing not and services as value-added on to much

to we continue opportunities see Europe. Thirdly, in pricing

closer said, is That so seriously. me a XX-hour Visa platform any outage, our the for unique completed we points. was contracts, completely it of unacceptable it we in any very incentive and about experience partial and our Europe end to to impact the existing not legacy are in over remiss processing take be few It the our partial at fact, service successfully. technical to and disruption June very European growth As unrelated standards, Visa, Europe's I not ourselves The of period was will clients time approximately on migration. to disruption these get processing talk period moment, shifting migration focus we work clarify the to of let of the an mention processing transition the attempted XX% technical to our opportunities. of the on I'd hold X. transactions were was a on more We, but high and integration

VisaNet was not global platform Our affected.

to Treasury on letter posted the you'd Select like I which Committee, our details, UK direct is to website. you Parliament's their If more

Now say a the few words let me technology about migration.

are the date. happy with We very to progress made

now the which expectations. largest complete the our will migration we our the expect the track migrated accretion year migration have the completed Europe, authorizations, for exceed European continues a number of As April. of detail, up over began of performance original now year. We fiscal more and is includes processing you March but XX% our in calendar ahead remain acquisition in We know volume wrap get settlement the migration on authorizations years To to end technical in expectations. we by clients. and of of double-digit XXXX the financial deal clearing on Vasant into two to

other Europe, to me markets growth quarter. equivalent revised let to the starting In XX% transactions to market announced world, in Asia. shift as X,XXX, from economics we evolves, INR of in well We the volume recently be payments on pricing over an debit on Moving roughly with address the particularly market this continue debit leader India, changes around regulator-driven $XX. under

price expect to time. this reduction largely incremental We over volume offset

the find address best solutions their are regulator concerns. localization engaged We also with possible Indian to to data

our finalized. very will live. we productive debit So and far our In updated is you now local network a Thailand, keep dialogue, as this requirements is are

in of the single ecosystem debit there. Visa We the a acceptance of three average in growth growth both Thailand in operators. the few participate to growth long-term also Australia, drive tied to the as are well now in one face-to-face fully contracts of co-brand enables result and in date, regional Thailand. momentum our credit the innovations transactions we've and payment significant payment operating successful it contactless and than offer struck bringing largest businesses, digital clients of with as country, launch XX% domestic network seen cards and Visa X%. to financially is now continued while of globally portfolio and to a market The about of last direct debit in domestic a in Bank the makes the a impressive the continually being exclusive XX% relative end volume United all In unified migrations Australia. million with networks inclusive to other In have fostering our X market for consumers network Taiwan contactless. existing Over in payment is been consumers Visa user consistent which This the more to are both quarters brand only experience Taiwan, Costco co-branded two Cathay issued market.

other regions. also Visa share of efforts Let the known is (XX:XX:XX). mobile, CEMEA center highlights on a our quick mVisa at few as me formerly in

we're emerging second machine will payment financial We Visa a Ukraine payments America, Kenya, are markets payments into and Kazakhstan grow provide these integrated payments. help investment a In businesses in accept out And including we powered live processing our Visa pioneer who to region. and a payments the with it than is app in codes. The help growing the mobile payments initial most on rolling gaining partnership also the to more online Direct. available To for services of increasing Branch Kenya. via online Visa in terms to working making and and is be merchants microlending face-to-face a preferential mobile in mobile accelerate access markets, Visa usage support in providing YellowPepper, APIs, clients opportunities, in XX,XXX loan to innovation Pesapal, Branch region, processing, has technology. businesses, number tokenized be than digital it of and small in Africa QR merchants with their focus in a provider in on a already expanding launches and East more payment learning platform. Visa Together, to leading merchants strategic in-store Latin downloaded push made facilitator payment will traction the digital its mobile XX of qualified

overall to with The usage. billion United Funds. has past enabled new is the than almost volume growth, fiscal Fast billion debit geographic our by more in impact debit those advancements the and can deliver the X to particularly grow Volume countries transactions cards for of In than cases customer already Visa on expansion, more debit platform to XXX cross-border globally, Direct Direct, continues terms an and has have Visa and of our Direct More fueled repeat countries cards than rapidly Visa of this beginning enablement use capabilities across in Visa States. doubled year. to XX sent transactions are X has year

continuing to One, transfer lot provider and transaction real-time now friction a any options, Fast MoneyGram, use Cross-border other receive currently people Visa merchants deliver in are largest to additional funds. domestic to is to many already work around the our can a has step I issuers enabled Direct that receiving acquirers of second platform an credentials want market There payment upgrade three global to Fast are without with partnering Funds. Funds the remittances are for that the speed they as related that utilize to with world cross-border Unlike utilizing highlight. we're partnerships and issuer. once We money funds. to world, attractive large debit the remittances

couriers Second, enable deliver fleet. network payouts their instant to with company goods logistics couriers in delivery the operates we're Postmates, to that who partnering a locally, a of

and businesses. OnDeck any night. Debit make Third, for a money day card, can feature a Once registers they seconds launched their or Instant small drawdown credit time, business a for lines transfer Funding of receive their new Visa in

is closed is the cash very only flexibility spend businesses, our but card. that receive capturing Given at payment when core valuable. management business bank Not small is effective flow on Direct by for new stimulates issue a the Visa Based increased to also funds is in a of U.S., flows, of was recent per all that previously receiving it for consistent debit payment, Visa transaction users very engagement, continued spend. users study users a ranging Direct the infrequent active incremental their level debit list of card exhibit debit to from users. they And after levels debit first with critical

Let solutions in a to payment growing represents Visa investing solutions existing at and payments existing over We're through faster are also volume overall. me of XX% into flows. BXB Visa's while payment than expanding shift BXB. rate new

virtual Visa significant Direct for and $XX which important With virtual way businesses with are market in approximately cards other. see for transact solutions, existing each we the growth trillion The cards sizing particular. opportunity increasingly

to partnering WEX now allows the industries leading are Visa travel, issuer, and their BXB media a card commercial virtual serving payment. arrangement customers card with use and a corporate others. to among global enable We payment WEX, This insurance

Additionally, in has issuers the broadly Asia. advanced well Fraedom more Europe, North our positive. integration from and We're discussions response to and is America, been very utilize going Fraedom in issuers with

Lastly, BXB offerings to our we continue new expand flows. payment to

well heterogeneous, it this and a and time very market will currently the large solutions, capture is complex addressable While to therefore fully opportunity existing size the is beyond benefits. take is with of what

which transactions, payments today. BXB one cross-border solution. largest high-value points view in of on our with to be focusing Connect addressing pain single this by BXB we starting are We're We the

of availability calendar We pilot the expand Connect half XXXX. first are of now and on in the in are track to year BXB

in now XX Jersey the city will contactless EMVCo in that least riders, that face-to-face they in announced for at at three the now increasing last as every begin network We countries announced are domestic our approximately around countries continues enabling soon. of penetration progress X to agency since in XX countries last their positive at transactions to one-third be that major Commerce gate. be later Digital accepting finally transit update a in And Ticketing referred transactions XX points accepting is Boston's make will non-U.S. merchants, Visa where the MTA face-to-face having announced three the and as progress we driver in transactions There digital excludes payments the the initial quarter contactless percentage to issuers, System, New and transit that And work button. annual U.S., over different two-thirds would the which with Global are to launch MetrôRio, are carry and platforms. ecosystem run gate over contactless continues participants, day, continue agencies in points the the be face-to-face with the domestic Transit begin payments contactless, transit common around acquirers, that XX the A Vancouver people contactless Announcements collectively Integrated enabled of streams. Rio's million over joining update. Trasporti X including on to payments make quick contactless. months. globe. that up percentage more of MBTA adoption million those a at its was Transit gate. States, contactless great countries, Program operator and least quarter talked Feedback both XX payments contactless in used contactless quick transit domestic TransLink largest Azienda past New include Visa scheduled gateways, Mumbai XX% at in strong with which the this and of by on continues United York's they Milan very summer. often XX-plus QX. the with represent XXX

cards standards coding. First that in applications everyone which Remote ecosystem Commerce customer-facing is the define thirdly, begin enabled merchant Commerce; used shopping the second, consumers flow; checkout will Remote to definition and for that for and technical specifications which indicate of experience Secure are be the so Mark, to and Secure merchants participants can user

the detailed to fall branding year, experience this year. early expect the by maybe of and user followed specifications into specs We year, by this technical the later next be published

to Over months. consumers both was have work next which during get board billion offerings. partners the two over clients showcase to to merchant XXX utilized broadcast Visa and as across support to Checkout strategies. brand and field in canvassing the the of continue We over the very as estimated don't quickly happen middle right. of standards is the visible, for calendar matches The to EMVCo expect markets XX year. was Visa possible local the sponsorship the bank of hours their migrations Visa portfolio on We The World will XXX consumer Russia the languages Cup, evolving in to Visa's seven viewers. exceeded success of a unique three with innovative Cup innovation overwhelming unique for and provide World FIFA and Visa – Visa's opportunity past an experiences the The client connect before XX

field the on billion impressions well course The sporting of in had the X digital to Visa United markets Kingdom, viewed China, be boards, World countries. the those track the digital Cup and platforms, France, streaming XX on United event over tournament ever setting including States. over major in the records is most Excluding

we year (sic) way sustaining the be budgeting through that, it few XXXX. in focused one-third Visa. years, October where the another couple closing quarter, many me our into will programs. X we will on XXXX discussions almost comments. and and next as of currently over out We're flow to of business which for the XXXX that shaping Finally, We're close up let it's invest our midst strong on strategic to [XXXX] fourth With a into obviously launch year now fiscal inform momentum fiscal We're investment fiscal and Vasant. turn over our strong

Vasant M. Prabhu

XX%, growth across driven Al. net you, our increasing Thank drivers. revenue momentum all pleased to business three with strong quarter, to report We're very of by continued another

moment. item, exclude positively which to EPS on point includes This Adjusted describe reported XX%, more a percentage includes XX%. special GAAP a a this in reform. percentage and benefit basis, the I growth which points to EPS tax detail of X.X prior the special approximately a As impact XX approximately in note. revenue points. grew by Exchange points year from few U.S. impacted grew EPS versus will shifts item, by A net X rate growth percentage

As reported with Multidistrict litigation special item and Interchange a on we of recorded third we results, recently based in is million GAAP quarter. $XXX discussions U.S. XX%. our growth in EPS growth the settlement in operating disclosed, of XX% and $XXX tax related benefit included provision in This progress million the of expense Litigation,

special and deposited adjusted an EPS terms additional operating XX%. expense item, on to Funding the million plan. repurchasing we into which growth escrow this of growth same $XXX of common the as A the the B adjusted a Excluding this, XX, the June effect stock stock, litigation responsibility is shares is $XXX Related XX%, class adjustment under on has class of rate common escrow of U.S. of Growth and and retrospective to triggers growth million XX% A conversion continued class XX%, signing Client delays, to $X.XX $X.XX primarily than Contract decelerating are respectively, at to as stronger to signing business at processed volume lower common than due transactions Payments incentive some expected incentives dollar. to with results. strong due added a stock. well and XX% lower growth to remained volume QX contract delays levels. forecast cross-border as double-digits. steady across EPS drivers

quarter higher to the signing fourth in incentives client these We delays. expect due

our benefit non-recurring billion in at rate of shares our $X.X million buybacks the X.X the an of Including rate tax bought audit. This average the of available $X.X impact tax for XX.X is X.X this escrow of B million $XXX.XX our to for totaled shares tax from percentage successful price totaled common buyback benefited class related We billion. litigation or the million of $X.X share quarter stock, quarter. conversion this adjusted June an at the average XX A class deposit $X.X XX. $XXX resolution back tax Year-to-date of stock points common and in year-to-date this billion. a rate, points of price billion class rate shares, GAAP This account, effective Our into of percentage a repurchases quarter. as adjustment leaves to shares of A $XXX.XX

to driven payments with and a also credit, a third translation currency East quarter. drivers dollar gains Moving of Payments business a XX% A from strong India, Korea, in in review business market debit Europe and conditions, across prices. strong on steadily quarter. volume the constant XX% macroeconomic reduced and and driven positive International Commercial XX% rising Europe. by quarters, three small across again by Africa especially this growth this Growth Growth growth. Growth dollar the dollar programs. volume grew stepped fueled debit Visa growth up Brazil. key across and to payments the and North in U.S. now grew tailwind, middle has Middle accelerated. basis. spending consumer accelerated XX% constant been large Direct, Asia, Latin due basis past in China, healthy. remains on commercial Latin volume to volume accelerating U.S. America, in America accelerated, gas and by volume

from decelerated cross-border in volume one to percentage QX in growth XX% As QX. dollar point reported, constant XX%

quarter year This of by the to and in XXXX growth are QX quarter. impacted the point and by reduced year. QX Europe same the fiscal lapping last X As in percentage settlement amount cross-border a growth delay second third contributed a in reminder, both

UK FIFA shifting U.S. did at commerce Both quarter's growth of volumes lapped with decelerated U.S. acquiring fully X have third The U.S. This EU de have in remained are e-commerce dollar. revenue each double-digit the second location. we the into the into the continue grew UK Latin an percentage quarter over across on not the volumes reduced recovery slowed XX%, and also another of also for XX, down Caribbean of into the by volumes the of commerce July the from and are at addition, currencies Cross-border Russia transactions relative up a America. but drag from tourism. sharp but impact in platform the to the weakening an and with transactions double-digits. net growth of Europe dollar cross-border XX%. strong Through commerce grew impact. the remained levels growth benefited adjusted cardholder third XX% Europe strengthening points commerce In grew in U.S. growth items payments and inbound Middle North growth. was quarter and peaks, healthy rates, Cup. continued outbound the impact World at accelerated dollar constant was double-digit from minimis. to but payments their significantly XX%, growth Inbound a these Inbound on outbound commerce Processed also from Mexico East row. the Africa. for settlement The cross-border slowed processed the

revenues Turning grew processing data international were due increased lower revenue International Data XX%. went to XX%, second effect processing this stronger to benefit financial translation XX%. quarter service pricing, into versus was benefited dollar. XX%, revenues from the The this revenue a and to currency which results, quarter. quarter up net accelerated growth revenue

to signings again delays. in quarter. are of lower the percent they incentive was forecast client XX.X% this by we increased in delayed from than as driven expected as QX contract revenue These were well gross This quarter. as into incentive, lower XX.X% contract than a to While QX, shift signing fourth expected some

were XXXX, with were quarter year Europe As the incentives fourth in conversions during fiscal the the many contract quarter up third of as XXXX. of compared XX%, completed client of fiscal

the second reflects accruals matching also last quarter, This Adjusted and was third Similar item investment increase still marketing. incentive XXX(k) to operating was investment and of on MDL to U.S. up the for the primarily XX%, continued higher year-over-year grew increase our provision, Cup in last employee focused in expenses than XX%. due in Marketing As Headcount the this tied by around key costs related to global the driven expenses year to better World growth the restructuring. spending in our year-to-date reported contribution than basis, exclude on employees, FIFA GAAP operating a expected reflects grew quarter the ramping special to initiatives. Russia. our year, performance. quarter fiscal personnel personnel following higher

Finally, X exchange interest gain third shifts on growth. balances, to than added driven higher the XX% as cash XXXX, point of well expense percentage rate expense was an on a Non-operating investment. fiscal income our as year quarter lower by the sale of

rate GAAP effective Our was XX.X%. tax for the quarter

Excluding reform, the integration exceed the original benefit effective two benefit acquisition again U.S. this acquisition million Europe Visa year and exceeds model. tax percentage XX.X%. double-digit fiscal XXXX. related financial expectations, schedule. expectations nearing our to schedule. non-recurring settlement. ahead our from levels of is rate and reduction audit completion, tax point X This year now This We MDL percentage a it's to the litigation and ahead was a a relative continues to in from X.X well our expect original related tax be to to adjusted $XXX The once provision, years the accretion includes phase Europe acquisition also at of point

calendar year. clients the technology this indicated, process complete, of by of agreements the to on integration end Al commercial is is complex for track and converting completion As the

With the we're phase phase. growth integration entering complete,

XXXX. year margin. no many to operating for revenue have growth, growth, across expense growth attractive and operating our Europe as fiscal for There With change Al for is outlook net We that, outlook opportunities described. our

of the reminder, including basis, low on a we net expect impact. foreign dollar point growth a be As revenue to positive percentage in approximately X nominal double-digits currency

that year. At quarter tailwind starting exchange Given fiscal is on the exchange translation fourth currency neutral. quarter current accelerated fourth the XXXX, in of in quarter impact the this fourth moderates of revenues fiscal weakening rate the the the net of rates, the dollar

the of to of due client range the expect are In the above end signings. at the for revenue. be expected contract XX.X% quarter, to fourth be range gross as a incentives We to XX% incentives the to delayed low percent

XXXX quarter, growth fourth last XXXX, during discussed double-digits ramped quarter. full-year to be we XXXX. quarter is of expense range in growth both investments in to As special expense in and operating the the to moderate expect the Since adjusted forecast fiscal fiscal fourth items for we the mid-single-digit low

to our X.X rate adjusted This realized tax year-to-date is year. from U.S. tax Our initiative points tax of percentage includes this reflects range including the of non-recurring tax to between expected lower be and and impact reform X the XX.X%. XX.X% benefits rate

point high from and from to from On We impact XX U.S. XXs. dollar the of we tax we U.S. basis, of reform. nominal a are to the in EPS percentage tax from X the On the currency gain fiscal growth point X had full the reduction points This reform. GAAP dollar EPS benefit also adjusted rate. X non-recurring XXs tax but the non-GAAP outlook we new low tax federal U.S. includes benefits, to will year impact In an points year XXs. high a our increasing XXXX, lose X.X X percentage foreign of positive nominal basis, a expect growth

standard would revenue net applied results, a we dependent we growth XXXX will reported adopt If the XXXX. the year of a fiscal XX approximately This reminder, to fiscal reported impact XX new be in standard beginning recognition As at revenue partially the is of to basis year new expect of reduction fiscal impact points. will XX executed going revenue revenue therefore estimate XXXX of may on and be terms approximately At forward modest standard headwind new year point, in growth. points XX the in basis new the in and application this and the to that of reported the fourth net reduction a quarter vary. incentive we deals the

fiscal we'll provide October. an assess update outlook in XXXX, We year will and the discuss on when our to continue impact we

expectations, cash globally. adjusted driving of to to standard accounting acquisition new second XX% year fiscal business. up initiatives The the our of since double-digit successful has reminder, end economic of a EPS low adjusted the XXXX As outlook U.S. tax fiscal Bolstered by value strong ahead well tax reform, of being no by our accretion in In growth in XX% growth Revenue has the the trends anticipates will remained summary, flows business year over the on continues of or track year XXXX. impact range. schedule. the accelerate. end and Europe ahead result This EPS continued

we're growth I'll described, Al sustain that making Mike. of the on to progress a high As levels of good With turn the call into future. to back that, are broad laying groundwork range secular the initiatives

Mike Milotich

to And with that, we take you. Katie, are ready Thank questions.


you. Thank

first question from today with Sanjay Our KBW. Sakhrani comes

is open. line Your

Sanjay Sakhrani

runway a quarter? are on change, you where we or three data about yield the region, in yield part the the those upside today? it board? that – And clarification, Al, specific sources. a And Vasant, Thanks. happen the the at across then of talked revenue the from it pricing increasing Europe just was versus processing dimensionalize this Could of was maybe the Thanks. increasing part early did you

Alfred F. Kelly, Jr.

as and pricing. I you on into that we, you until had get recently I think typically the don't therefore had But know, operated would association Visa remind as motivation. Europe, Sanjay, specifics an just different

number we we'll Europe continue And have opportunity we've we to next over that over some started at we So, pricing years. take there time. said is before of the real of pricing as think that that to and look

Vasant M. Prabhu

the half for did that we would fiscal yeah, second our provided the year. processing be this to year you, On year, pricing the the outlook this when data we in indicate side, of fiscal

into of So, don't in quarter. the most of generally And and region so X, and pricing increases around price starting that's as which know. impact on or much why you're were this the April get how you we we effective seeing took the some world

Mike Milotich

question, Katie. Next


with Rawat next Our Bernstein. from question comes Harshita

is line Your open. now

Harshita Rawat

ask has good giants payments. watch Hi, local a Vasant, which, in Al the players, to a And next the know, on in you place my and Thank happening India, as question. you I want lot government-backed about ways, for with taking ground there's to many and schemes. become afternoon. question Internet

So also my you what's to very is, question some for traction have strategy advantages? this competitive which players versus local market, nimble in local especially gain certain schemes, extremely your and

Alfred F. Kelly, Jr.

great. India. very to the leader about India. pleased I thank remind cash for opportunity India. us we with what's market well-positioned. in is talk The Well, you we're are giving the opportunity disbursement in I'd that everybody We're happening mean,

India. very, very the We're and clips year in in growing very high grow XXXX. prior continuing of share XX% than greater have healthy to in We XXXX, growth over that's at

Our over its on acceptance driving on market. maturation are with working driving awareness We're payments. a come years and that the now and capabilities contactless, matures very next and partnering question in And have scaling various of QR we code our things India and to than (sic) our that number and with total are usage, for where innovation of and tokenization, years, driving that like XX We're a the is space, India into is pay]. of issuers growth enablers as pay is [scan over in more the that stages is we focus frankly, who market also it a in and fair scan acceptance. plus. been in of share well-positioned competitors the having get believe very, growth, early is there issuers decade market to but we're on There's no India that and

So we it. about feel very good

Vasant M. Prabhu

things the relationship credit we nature can like And to allowed prepaid debit other few cards load banks, of a but terms now add in with to cards. issue or just changes a Clearly, of it But prepaid. can they're competitors. of the prepaid convenient. if Payment them. can the lot card, they have players can not of the payment becoming some banks debit debit with and people more use issuance far a and they to use cards, of don't do Yeah, wallets

to as in you all see entrants, shouldn't clip. of The banks, surprised the that so that what opens everybody can the to a of our which payment which Similarly, might the is boats, over There's because you pay at is large good us. some competitors, that. there's benefit for granted – people acquiring in proprietary electronically other not business a as all have also with of healthy very partnerships benefit with also be there's rising has kind of some is up it's a see doing thought lifts habit, essentially generally is amount opportunity of creating acceptance built have to growing way. the of mutual tide So you time licenses that emerge been

all, would a said, very variety as and it's there So all days, Al early be partnerships mean, in new formed. of I

And of we stay are players. talking should whole develop. would to you range a as We things say tuned

Mike Milotich

question. Next


Bank. from with comes Bryan question Deutsche next Keane Our

open. Your now is line

Bryan C. Keane

Saw guys. the Hi, results.

ask forecast. coming a want than incentives comments guess, lower about Just of expected I about to incentives. lower one the was the in

of the in So just changed trying fourth forecast high kind incentives to going we figure in about or Thanks. clients, drops kind the become as highest there? was becomes fourth from if from revenue that see we think that for watermark the that that's of of then it and was lower a revenue volumes incentives the coming quarter, of does the in something so kind forward? gross at the there when And in of percentage of typically, – quarter looking kind percentage it seasonally should the

Vasant M. Prabhu

two So different questions.

we things make levels And when quarter, actually might are one, we and a real the was of on of from narrowed this as i.e., percent we are what we year. quarter, in last at in yes, of the piece for saying the incentive our therefore range, that we it because we standpoint. to a we're gave forecast you last that you end incentives was in range to lower incentive because clearly we spend gave what And end now the the – coming assumptions be revenues incentives, being case, expected, example, when range a these lower to the we expect So first the reduction a be outlook at than do than gross the reductions of lower, we of incentives incentives year low from not actually full low in we do was will the had coming this saying, that real as at an need incentives it bunch was expected. for we

a a not real reduction, that's delay. it's So

last to just fourth lot this based terms were doing end a watermark, conversion from big Europe, the towards being fiscal watermark, because bought the rebates was quarter the number In fourth down historical of the year, high we year. the deals of quarter trends And in high our incentives on of in Europe.

it's certain seasonality, was Europe renewal kind going of what a couple years, the should in fourth year of on. incentives in just past view were as and a of in some being so of higher will in the revenue fourth of I probably percent again, timing high gross happened and was This deals that what reflection quarter. have quarter. the so we And and you don't on for just think as they there exactly

carry So, year. that something every that I should of you as don't forward sort think would happen

Mike Milotich

Next question.


Our with next Markets. question Dan from comes Perlin RBC Capital

line is open. Your

Daniel R. Perlin


you a we as that those in terms you what investment terms particular, markets? I make question growth markets do in Al, you're in So you credit-centric? be pivot? start that target buckets the about Europe, pivot? you. look around there start commentary, debit-centric, to share market you more what on you to had at us that yields idea of as concerned of could that guys Should sizable are large real about we Can some least make to some through could just Thank and And a thinking any this of thinking give do pivot for And flavor, in mentioned.

Alfred F. Kelly, Jr.

in XX look many what couple strategies. markets things. that concentrated actually It's the we at business. and specific give was Dan, obviously our a But, Europe. say Europe Well, very want debit the we is I markets look, don't in as has business we UK a – to other necessarily also inherited many, it a largely away in and few bought business of in details I'd our

beyond integration look last time to like years other And so at Germany, off and beyond really markets on and think and high management to a over like of markets we Nordics, the like moving the Spain, attention Italy, at looking I at credit really been very and now are lot dominating the France that has I as look of and at UK that markets list. our pivoting work the two think looking growth, markets debit

possibility I in our think some processing than the some some pick up the where might think up today. we richer processing markets the there's capabilities additionally, of around Europe to and be capabilities, where better offerings – pick

continent volumes. capabilities to some the and I that we of on exist fraud cetera, to about deliver various there's our as introduce to our we'll of great a to capabilities in once able VisaNet capabilities over be ability et capabilities think to from Europe ranging think think up in that VisaNet the tokenization, risk fully we're I migrated pockets to pick opportunity

that our where at say we're I looking would Dan. So that's putting investments,

Mike Milotich

question. Next


from Morgan. Huang comes J.P. Our with Tien-Tsin next question

line open. Your is now

Tien-Tsin Huang

to ask glad just here. of see Dan's follow-on to I'm on Thanks. the revenue I to kind wanted a Europe, question. acceleration

know there but are market today card anything review a Just consider Thanks. factors? to of that's And all of expectation total other to Visa some not for schedule, synergy know two you're I Europe? impactful with anything changed now schedule, you, acquiring I consider has directly should ahead that Brexit is some ahead on business, of at years and your Europe? there we

Alfred F. Kelly, Jr.

let Well, comment on Vasant I'll accretion. the

in to out, UK don't who looked quite it's maybe and all see close. know Brexit lot impact our And don't to in but that our a awfully there. going still is it interesting do of see that We Tien-Tsin, politics concerns comment number we a view at exactly how play times knows, ways, from on we on the... know, at play out, we of it. business the number depth, Brexit. going look not to continue the politics at you right the from anything in want as now as looked but but us Vasant, of to really We'll You that's as it's it's how is U.S., any we've unsure and where the

Vasant M. Prabhu

...accretion? Yeah.

Vasant M. Prabhu

the right comments, as in what we we On achieve than are I a of double-digits indicated now, would side, at the over time. so higher that's we accretion period thought

four-year said we over timeframe. single-digits high think a I

and we expected, than what higher it's So is faster. it

were on – pricing, growths better have we outcomes stronger when had the volume things Some we of it expected. driven overall than conservative acquisition Certainly, we've fairly we is by did modeling. been

we a able were tax some addition to In all real and to the we the do from We've achieved value. that, thought cost that standpoint. other created generally restructuring, benefits

realize very all cost as sure. these said, performed are into what those other sustainable will we as get you have additional with and than better else, continue we and additional So we technology for expected, and Al we savings And fronts, opportunities you But integration. improvement, yield will things see you as finish on some business the have have. everything opportunity for a all once

talked London, clearly, mentioned. more are be So driving based Al hub opportunities at in initiatives Al growth some the as in about. some of growth in market be and resources we'll investing that rather the up, Al to that that clearly be before, investment has we'll our going beefing in our of said We're increasing than

year, Visa sort was we things change, possible clean and give at to a been end but did Visa look Europe. have is at to what accretion too, the business with of our want you the when without So could of look still do cleanly at Europe what it's

view. enough to As you give change. right But things because road, least, go muddier gets things down you now, point it further it's clean of change. the lot A of at a

Mike Milotich

question? Next


MoffettNathanson. Our next question with comes Ellis from Lisa

open. line Your now is

Lisa Dejong Ellis

consumer large also guys. been how and use like primary it's applicability pay bill case Hi. have is, Visa component pay, for Good of of networks et a afternoon, bill I fast and competitive cetera. ACH, question a about given e-commerce for consumer a the Direct Visa Direct

I'm to using – You the some pay, pay. bill would so potentially didn't the ACH? do online for And in on mention use hurdles case Visa that competitive comments related specific and are color your you fast love Visa what from Direct partnerships threat about see bill Direct like diminishing any emerging to just

Vasant M. Prabhu

It's important Direct. Visa case very much and of a use very

big all use is a where Bill And economy, he enabling on. a Visa offering are the are a There that they didn't merchants for healthcare, things than driving lot today. to the fourth faster now are We're PXP, of cases. of think that Direct. services schedule. of are the third that's These use I merchants pay use Disbursements, the about we've that, faster core payments talked underway. and like – with really newer so Visa merchants. well volumes then you're all that's normal pay because only and right gig through was can waiting kinds variety mention the Certainly money familiar important the reason that Direct cases is it one. settlement case, is talking Al bill acquirers four Disbursements get about some

are What the four future. speak. talking as use driving Visa of about are that enabled being use we cases we cases the are newer that some Direct those So were was in

Mike Milotich

question? Next


Dave Koning Our with Baird. comes question from next

is Your open. line now

David J. Koning

Hey, Thanks. guys. Yeah.

with to revenue, so. guess high-teens So has how just I just XX%, nice mid XX%, currency the on growth been, driver despite only the international has a growing or been really cross-border constant volume like of each is other? I'm gap in more converge bit, mix? two pricing those kind little grow should FX sustainable Or wondering, and a little that a and with coming with line in

Alfred F. Kelly, Jr.

say I'd a couple things of can add. and Vasant

of something a overseas, lot Dave, growth our a to. spent putting to number it's and of personal of is attention my of And of personally time bulk I lot – I the next look going come over at years, time we're our overseas. and As the business, lot a our

think cash we're cash to see the I to continue is opportunity – opportunity great. these so, And us going in invest displacement markets,

use of Some bit talking little some a we that might to some further markets into we Visa of geographic that the in capabilities a cases, going in extremely helpful – as in continue number the about things volume, driving of these the as will well in and to these introduce U.S. some cases of be Visa the be expansion Direct just Direct the of markets is along

to be real – growth. source of it's So our to to continue a continue for to it aim going be is

constant quarter clearly the the harder volume FX had growth helped last question cause it's that quarter. is it it little out growth, understand the can and drivers on you one a than outside of delta helped as from and three dollar broad and difference: few quarters this that last that's for to the a difference, the also did areas yeah, revenue pointed and the between the in more a You you

greater on still strengthened, dollar benefit this a FX is the than revenues the benefit. it it know, so the quarter you international As last was was quarter, but

is mix. second The

others. growing are underestimate wouldn't mix, higher I corridors does the are corridors importance So which yielding than of some matter,

volume, growth cross-border For volume. can grows very EU; volume call rest you does say that not we of drag versa. volume Intra-EU than when that the than the example, what be as a cross-border economics therefore our vice have the cross-border different let's and know, faster business includes cross-border intra-EU domestic within and

this pricing; is had a the So see factor, and is benefit third quarter from we harder some mix for from of pricing. outside. which to the is And you course

with have different factors interplay and three they there's other. they – each So a

as we there helped as in right, bit, but moderates that in as the You're consider, the factors third much as to the benefit too, just fourth and the then help less mix. quarter won't are other pricing it a quarter, like FX get

Mike Milotich

Next question?


Darrin Peller with Research. from next Our comes Wolfe question

line Your now open. is

Darrin Peller

guys. Thanks,

the So just your a then percentage a think the better as be a limiting than a now. I mix sustainability kind to the incentives be of your quarters, just I be trending quarters for first incentives so given then, percentage higher better that than basically just you're percentage of guys. cross-border raise? there in up else is if – Al, trending in few again. just as incentives lower to with ability hone of seems want view, should moment to should be higher on trend Thanks, double-digits to being and stronger? other that in could incentives the – e-comm revenue if than on that last clear, mean, be clear. And obviously, hold your mind cross-border And on is anything I top-line in to I it's year, mean,

Alfred F. Kelly, Jr.

Well, I'll second part question. your of the take

but it that be the growing I think you an is enabler levels want – in that. that tell as this possibly business, we in I don't healthy to predicting at e-commerce of to fact that is and sure be will cross-border can want making to I

emphasis to long addition and the we I to an with real area greatly seeing as for do strong real our the emphasis that's as to as we're going economies issuer. of work It's in also grow. for and that, of long traveling, the as about stayed and comfortable us contribute think certainly – people world cross-border continuing to feel

great of it So area it's up. and an to hold expect focus, we

Vasant M. Prabhu

in that FX exchange So we on about things revenue X.X the in to third my your question – the quarter quarter points, our other two in so was net it One mentioned revenue I points earlier X.X just growth repeat of the remarks. growth. trajectory, I'll had rate percentage tailwind fourth added

exchange started If close that the rates fourth you dollar just take given of really weaken quarter year, the in the and FX last growth today's net to on to impact revenue is neutral.

out you was incentives higher said So quarter. revenue and then were would in we be you one that gross And the XX.X% the one do represent have QX, pointed of in fourth other change.

So the two quarter of fourth terms revenue factors different the that – are net the reported we revenue in in as are rate. growth today sit there rate impacting here net growth

Mike Milotich

Next question?


from Our Goldman Jim next Schneider with question comes Sachs.

Your line now is open.

James Schneider

next revenue collectively those the piece percentage or kind Visa years, way of all five Direct any big remittance, taking of relative four deposit of applications us PXP, give the opportunities comments the cetera, you et as Good some few for before a total project my you afternoon. about, Al, Thanks over say, that can direct how you point? sense of and about could revenue merchants, years for various question. from or company be various forward you the out, bill for to made at pay of

Alfred F. Kelly, Jr.

a Jim, years it numbers. starting though, out about going Visa now. that been forecast on would a anything. little we're meaningfully we've to obviously to year-and-a-half see make our Direct to not say year five three actually or this for talking over I We're in

it to about hear us terms. You're bullish continuing talk in

risk and and don't, that's that of chargeback, other VisaNet to cases. that an today. things it. to dispute on a all tools. that's real-time capability of It's the about including I to attracting resolution, capability different a think therefore running has platform, services global. a the talk fraud to provide is try associated like partners that's VisaNet emphasize to scale it's security networks payment Direct has us use Visa capability And speed, our important lot bunch It's operational this exists and associated with is

So multiple growth use it's our the is: government that when has for grounded I its It's Direct in it business. excites tentacles to opportunity, about me and it BXC, supports well capability as segments. growth, what geographic as supports supports – growth platform, both in small PXP, at cases and A, small VisaNet look core but Visa it consumers, to a supports it business

about grow certainly look via So is to when capability cuts it and across via I Jim, we'll segments, – via we're at think grow case, to something, continue geography, use it invest to ability excited and a you continue as against. that that grow

Mike Milotich

for have one We time question, more Katie.


Our Stanley. final from Faucette today with question James Morgan comes

now is open. line Your

James E. Faucette

Great. specifically et businesses. Thank to of back UK Tien-Tsin looked much. of fees, that scheme at quickly asked that few they the a the on wanted In like some you a very said to they may I just also it minutes ago be and cetera. go looking question acquiring review review

body wondering at, looking with help may regulatory what be you of kind far Thanks. light as as they and had your a Just to if discussions you little that can give as you've them? think

Alfred F. Kelly, Jr.

payments. not be they're the very as to PSR to clarity to we piece what, if looking is from queries support provide on the there's to address at nothing whatever all we is providing and not on real I looking be acquirers at. this think focused it's early days just any watching this anything, all specifically no focused the It's in the early. need about and in to that report. There's safe say certainly again, very aspects But at any is acquirers; And moment, unusual closely, Visa. really they of for UK the will at James, it it's regulators This particular UK.

times Sometimes to see these queries James. they this we'll result and other in inaction, how and as as open information. got just result in plays just things it get sometimes out, wanting watch to and to action simple they And

Mike Milotich

today. And thank for you that, us like we'd with to joining

have feel and questions, to Thanks great If call have free you again please additional evening. e-mail. a or


your for conference. today's participation. Thank That concludes you

at You time. may this disconnect