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V Visa

Participants
Mike Milotich Senior Vice President of Investor Relations
Al Kelly Chief Executive Officer
Vasant Prabhu Chief Financial Officer
David Toget Evercore ISI
Sanjay Sakhrani KBW
Ryan Cary Bank of America
Tien-Tsin Huang JPMorgan
Harshita Rawat Bernstein
Lisa Ellis MoffettNathanson
Mike Del Grosso Jefferies
Dave Koning Baird
Craig Maurer Autonomous Research
Bob Napoli William Blair
Don Fandetti Wells Fargo
Darrin Peller Wolfe Research
James Faucette Morgan Stanley
Call transcript
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Operator

Welcome to the Visa Fiscal First Quarter 2019 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 first

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 on deck Joining Executive site. call This statistical Relations today www.investor.visa.com. containing Al XX posted and Web Visa's be

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

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

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

Al Kelly

joining Mike, for to and afternoon today. everybody. good Thanks you, Thank us

well under me our that include the approximately cases modified credentials. growth on to a XX% directs trillion the financial results we perform use for Payment of constant this the Revenue was key But Visa our involving volume quarter and before fiscal basis. Let in Visa please transactions growth quarter. drivers network, payment Visa remain note strong. business The volume. payments start driving all XX continued total dollar of quarter definition volume to some billion key with company XX% sharing with highlights in $X.X was

on Vasant a have historic and updated, this detail. bit your rates more growth will the also For in been little convenience, touch

a point. border percentage For us, and area constant will from provide for is trends. just growth expenses; purchases X we’re volume watching growth last growth the volumes slowing quarter broader a cryptocurrency on personnel basis point from Cross closely. last X dollar through by year e-commerce within marketing-related more growth order Europe, major platform these flowed and Cross quarter. X%, last the points was Adjusting localizing was driven growth flowed little transaction X was EPS a January, and XX%. primarily XX%, percentage and down quarter; expense color Vasant XX%, was on an and into Process

the debit with weaker holiday holiday slowed year. year, faster was non comment Adjusting me Let shown growth to strong. spending, by during for in grow was was Stronger spend offset We've relatively credit last in growth year, last e-commerce. growth spending the on Retail was did X e-commerce. the factors, States. by about in a line briefly E-commerce strong Visa we United United starting the which holiday than continues specific States mostly which season later more than fueled performance, times season. in same

did versus approximately last moderately percentage drove third points last X growth e-commerce of consumer However, decelerate up one spending, versus year. year. E-commerce

e-commerce. Friday to and quarter equity on Brexit, the shutdown, and well Australia slowed stronger year; last the Black sales, e-commerce In almost overall season. season. via was give government last the third was similar uncertainties growth in the slightly. saw sense year; growth a other growth you the of day was the day in turn on remains of To U.S. and largest day, in in slightly largest Canada's January, relationships this three Friday and in and negative Friday than all swings to week shopping shopping holiday business to the the China uncertainty key this expand have strategy the major and the I seventh impact deepen shopping the gains days. gets done see the term. first boosted a to the email economy. Despite economic our the by current largest and as our period government trade shopping U.S as for brief long remain holiday starting terms day reopening cross the weeks of Monday medium the our Big half a the performed Reflecting over impact e-commerce a on confidence Black and as was is a the and in few largest spend Brazil markets; well Cyber of fear was would holiday corner confident in last the performance UK to related border second the recent deal critical I the XX of A in glad on shutdown U.S. business across quarter have are partnerships. globe consumer slowdown, to disputes into after spending. some consumer It’s client market that stone further long-term we new

new In partners. sponsorship fact partnerships it'd FinTechs, payment our players, performance our our is partnerships, fueled institutions, or traditional commercial by be flow financial whether

with these great company brand, it partnerships BXB a in services company honored that a the offers. and Visa find is growth continued our value As enable that consumer we’re

partnership me that and Visa quarter let clients, a sharing highlight executed by a So as start FinTechs. preferred traditional partner co-brands deals number of client across this

our we of strengthening five America BBVA bank largest begin with signed partnership me we with traditional Bancomer, lead outside credit continued the deals. Let India, year the a In brand strategic card with market. to Latin the Mexico, Brazil. in In renewal

Bank the of issuers. ICICI, the within all During Australia, card are and Group. India’s and across will banks we credit credit portfolios of which SBI be Melbourne renewed and Westpac In Visa the of debit largest card scheme Australia, quarter, for two Bank with exclusive deals Melbourne, of Bank

Costco Air merchants' payment co-brand as with partnership Visa payments country won partner with several in bring years. Visa. card of XXX% long representation it types in partnership to great is We brands partnerships, co-brand partnerships is demonstrated we Across in partnerships portfolios expected with had the it in partnership. largest through Co-brand card the quarter. few which matures one wins of Another as India, co-brand our credit together the assets. combine the which a be is network converted Mexico, our issuer largest assets, our the loyalty programs and and and the private of in Amazon Canada, next be these Canada. to label term executed our In portfolio their

in Lastly LINE Japan, card payment deal, which we announced that users. for the Pay Pay expands significantly LINE co-brand options

and For those who platform may network. of one Asia's messaging not be LINE is familiar, leading social

in footprint end, co-brands, work India, payment. electronic consumer with Beyond and traditional million access projected with and demand acquiring to continue surpassed acquirers for X Across processing strengthen strengthen to to we expand continue our partnerships. we integrated acceptance our we To a that and China, at local of now quarter, acceptance three services we to open-up XXX,XXX have with merchant acceptance China's leading points. with the deal points In X million the platform financial one contacts year Mckayla, QR we executed locations.

Argentina processing, in began complete VisaNet services. in various January with transactions, added in XXth, value fact our ecosystem month. the payments we were better processing of collaboration the to processing enabling transition XXX% to of our and Visa with our on players products clients Argentine close terms In to earlier this And serve us

provide innovative flows reach create electronic scope and both continue platforms digital Turkey, to FinTech will integrated them. world and that mobile are access to and card FinTech helping key which leveraged payments, In the address of payments to Africa, issuance, well under of payments, Visa in payroll, targeted Visa will e-pay. bank of clients. ways the to their wallet, a Turkish expand and such begin cross-border service money at extend XX consumers payments as company point Paycell payments. service to [Instram], Singapore, in to digital bank utility service in FinTechs, powering Visa's with Visa mobile and Visa payments In of needs, capabilities, creating a a payments reaching partnerships, new addressing credentials pay cards card partnering as the services drive by we $XX Moving subsidiary as new including their processing with at the to and mobile financial cross-border with XX% FinTechs in is partnering for population The countries products acceptance three local and transfer, leveraging money in travel offering over new open million Turkcell goal bill prepaid Paycell with In digital enablers access to increasing both around by payment suite is Visa sales. its that directly a Flutterwave and acceptance, Direct new be years. to is business services,

innovating core increased delivery business the institutions partners currently payments network with both financial November, with utilize of to banking While GTPay, new platforms. processed and electronic the collaboration those who is XXX our it accepting plans for markets digital overall payment on the XX over Visa experience improving suppliers' partnership also focus reflect deliver a Africa, on focused when accounts partners suppliers. payment BXB Bill to continent our streamline don’t corporate on continues time invest BXB prepaid flow payment. grow buyers and This provide processor payment to acceptance BXB the grow payments. across with million across to in collaboration Visa we FinTechs faster the and Billtrust XX in Also transactions Direct manager in Africa, partnering and This Visa In announced will supplier network our solutions. receivable payments reaching the Payment prepaid has across card to designed on and directly and BXB program in to African to to enable The their will ability countries. wallets. issuing offerings

other the virtual shift Europe, for it travel continuing relationships industry. participants on online their multiple online travel card will provider Europe, expanding travel to also solution set to agency into is Ixaris travel Ixaris technology payment commercial solutions expand working we're globally. their a distribution and of expand global aggregators, Visa in systems the We’re range regions. products business to them leading our and offers with in and In

issue the to Central penetration transactions. face business tier partnerships to We our U.S. to with improvement our Citi now card, corporate clients pay. top partners we year-over-year increasing our Visa’s who of In quarter-over-quarter Europe renewed with In are with years more are see habits. seven the X% network In the continue to of card. that the foundation strong adoption continue X plans tap Infinite product. in the list We've Visa see five largest on card commercial and improvement travel point in that drive we we first usage to is issuing momentum excluding all the quarter credit corporate tap our targeting over XX% face premier of and and beginning pay in quarters. solution line starting pay expanded domestic U.S. constantly will be Europe, announced Brazil, and years States, portfolios XXXX. issuer need by a to tap and in financial to to quarters, by and executive run United tap are pay, the contact their and to benefits are Itau domestic 'XX, East Middle Itau of of and an more been coming end transactions an to commercial that Africa. the global provided update launch cards face-to-face institutions debit in in Chase, previous premium also establish

and Additionally, begin Wells America issuing American Fargo upcoming will will pay months in summer. year. the Wells in will Bank Bank and Fargo start cards to of tap start the this of

or emerging with push to regions. pay, to enabled to originations. to Scan money Instant number to domestic Target the pay. feature. services. Stripe's offer mobile QR pay up the to value by Transaction quarter. America over a will count was Scan be The based In tap continues regional with Latin conveniently acquirer ride scale large through a in the also the five with an in In ride that Hy-Vee, in phone sharing grocer their facilitated Pacific, goods payment December. use this disbursement partners. acquirers started Visa Singapore solution use leading of Visa commercial the Direct. offering XXX%. disbursements mid example, west for applications acceptance, large teamed in the payments of planned in the emerging Cambodia. are the implementing this showcase of and alias, using continues Brazilian banks Once in Notably, merchant seeing scan launch allow tap and enabled launched Cielo, month for into based driver to Increasingly, cases, also growth geographies completed, first be start a Brazil Direct the in launch conjunction Asia business to consumers or sizes all advised These usage in pay markets, among Visa's leveraging enabled Cambodia capabilities and is market. largest QR app time in Visa to they expanding Payout launches expand payment and markets to a real For account, to of pay done and to for of country to is Tanzania Ghana push offer

In our of the yesterday, we healthy terms our that partnerships To year brand, we of announced our XX promoting mind. and several an top ensure years with NFL the signed end, partnerships remains six brand extension consumer to relationship through by XXXX season. of

partners. allows have our of benefit for the showcase across to payment to us the reach Our United tremendous NFL sponsorship our innovation States

Total African European will in partnerships, tournament and Associations This we our new at venues, Women's quarter, we partnerships to through to leverage football Cup XXXX. Football of also Football Tournament Nations Similar rights announced of partnerships, our and Union able and the of payments competitions XXXX to XXXX two Confederation the Africa will the these and share with promote clients. other acceptance experiences we these be showcase soccer

Before Earthport in briefly U.S. on update merchant on a litigation. XXXX. proposal to and acquire deal in closing, an China made December like potential all-cash an to comment M&A Visa I'd

late likely will a due our last and MasterCard you options. our announcements As of be course. in higher offer are further made aware, that considering an made we're week And bit was

promises. given U.S. domestic potential takeover the this process. the best proceed entity been to application by to damages we the preliminary that with partnerships regulators or some realize to China work our with China, of district transaction China last we In structure we the able governed interchange recent Bank potential transaction. take Given the application to week on we questions closely last at to filed the the in Relative share Visa's the can't settlement. We be the not license us People's point, and through granted court on will government litigation, Earthport that and developments, market comment year, there's but of of or pleased continue the to is the merchant class sensitivity we're any approval UK code, understand this how Chinese

have will summary, Vasant. In hearing and well detail receive merchant over of of as to turn in opt committed terms drive more our happens as in from flows, addressed, consumer the it consumer brand. consumer new That financially, had expand what a we'll to confidence court final to challenges strong bit invest payment growth a traditional continuing settlement, approval initiatives. it sponsorships, quarter merchants and for first QX a on strong partners, continue geopolitical notice to here, November. said, key we that we're to payment I'll we results, out, a legal To don’t on opportunity electronic an the cross-border very share focus the U.S. maintain together In our spending we it's we to and the strategy, good Through experience important our impact that strengthening in further And get our has begin could erosion with to purchases. scheduled and weeks. as business important in recent

Vasant Prabhu

revenue we new Thank disbursement start related and Visa our or A few merchants, carrying volume. on Direct, approximately We and push or the of with note; to XX%, as for to Visa payment to year fiscal of have had of payments to you, versus but Al. XX drag EPS payment brand. definition full strong shift but revenue rate net flows evolve EPS year basis a a growth prior payment Visa to exchange account volume included net beyond growth our funding points. business not growth continues of at XXXX points we To-date, had reported purchases volume all updated XX%

is payments only this disbursement been volume periods from a current There definition. constant is payment operational schedule point Visa pull both Our quarter. a succession, through, adjusted periods. This that impact this processed it a prior quick shows added push Direct prior little volumes now the in to All includes in reflect a updated the includes over volume have payment i.e. the percentage dollars growth transaction is a change on in Where change performance reported once. all half data a and counted volume. to straight the and

however, prior transactions Lapping from While fiscal flowed payments the currency in percentage to domestic intra-Europe transactions to crypto point the the point of the first a modestly transactions. weakness One two growth slowdown. point slowdown Cross-border globally and intra-Europe continued contributed spike cross-border levels small dipped quarter, X have within a reflected an slowdown was EU. X%. cross-border double-digit in at rate Europe rates, rather difficult to percentage yields remaining general volume the growth across of the XXXX. revenue These hence last than year The process purchases grow to transaction, comparable transactions quarter impact. intra-Europe or

point revenue of impact were The was basis quarter by which due point XX offset XXX this the drag. activities. expected to with than exchange pan-European partially has converting the other timing I slowed was was shifting Visa. point to this will strong, at to by lower-than-expected percentage incentives Cross into acquiring impact EPS X growth. QX XX% accounting ASC incentives. to some minimal January, more The standard and ASC cross-border revenue countries, quarters. client helped between transactions growth The approximately The about to moved e-commerce added which the net client revenue The $X.XX minutes. in equivalent across again, talk a a revenue rates, gross in from quarter, deals was continued Net impact platform timing December second XXX domestic, reorienting Visa due significantly to in a ASC trend to few larger and XXX new reported very client border

point. teens. adjusted rate X.X growth to in mid growth expense high still quarters, single-digits basis. expected, in moderate some the expense an full future grow on items growth. sheet expenses to the expect mid XXX added to was was ASC percentage As on year another balance rate points Exchange in almost added impact we and Expense

and During fiscal this $XXX.XX average tax common at these the the bought in the of effect year. an million resulted XX.X guidance quarter, Class in tax U.S. into billion how new issued of lower-than-expected this provisions on go rate provision GILTI We price reform first Applying quarter. that Treasury quarter. A apply a to of or $X.X shares stock FDII

$X.XX authorization, a to available shareholders has have $X.X quarter. including the in Our our currently program, for billion share board billion capital per of new quarterly authorized repurchase $X.X $X.XX dividend Including this returned billion of approximately share, we additional share we repurchases.

a now volume constant to grew on the Moving XX%. basis the Payments quarter. fiscal business review key dollar of first drivers in a

As underlying last both XX% volume. X of push growth X%, up almost was and Visa debit I the reported U.S. had particularly volume with stronger ex-China, a XX%. added disbursement Asia-Pacific quarter half EMEA of over percentage points. inclusion solid to decelerated moderately, was growth XX%. This strong in percentage almost disbursement was including Growth and Credit mentioned at and debit growth by the excluding last growth America, slowed Europe Direct in all payment while remains Latin growth business. the dollars. Debit versus quarter. Canada consistent debit Total the was U.S. in constant growth. reflects globally, earlier, point little up

on almost percentage slowdown. X of travel Credit soft the started in credit percentage many due improvement. the in was X around growth and slowed This into slowed is UK quarter. branded the in half contributed only categories, growth credit in revenue. X% the particular, we Middle-East, year, last primarily rate well International of X Lower quarter, parts particularly up of currency lapping at particularly a point lower The card a quarter. deceleration approximately as conversion, quarter. stable Europe growth purchases versus half last as most points prices and consistent Australia about Japan was was through effect growth This to with Cross-border drive volume Cabela's, last and second in Growth lap The remaining was credit which than grew volume. stepped dual and the from growth percentage has by dollars slowed points to to decline December. in across slower last inter constant However, this in point the dollar fuel on constant well across volume rate win, offset payments Europe XX%. Brazil, volume X% multiple home was Europe. crypto in as Again, basis France. due Chinese of spike EMEA a of Credit in slowdown the quarter. minor as as

currency the spend UK the Growth dollar. in items, weakened. due review U.S. also strengthening the inbound uncertainty of two in year and Brazil driven line Growth quarter. depressed destination. as these Middle-East in the wins, also Caribbean as percentage the in of has remains of caused processing slowed strengthened. and flowed dollar in with mostly is volume. slowed down Net Brexit we the the in to A slowed last levels Excluding financial last Process accelerated approach revenue which lap year, strong Argentina. with XX% quick Russia first grew point in Europe slowing late decelerated with the other given offset In-bound as gains Japan by high growth, accelerated into processing XX%. is and March. growth by in lap U.S. accelerated the choose Growth growth with into credit we last the the date results. quarter to digit single Outbound commerce In-bound spend Growth in the U.S. consistent versus the as X partially consistent U.S. spend travelers low transaction outbound but commerce which Canada into we as hurricane, to the spend the

driven adoption as Europe XXX. line revenue by from growth slowing last lapping a have the small net the I inter percent of of by Service benefited impact only changes grew international client delays but XXX, X% shifts revenues were revenue driven payments some benefiting Other gross in our XX% currency to a rate ASC in in parts low as Data revenue a deceleration deals. in by pricing by value as Also, from revenue growth of of from were low with XX%, earlier, International client year. at I XX%, volume outlook XX.X% revenue QX by is processing volumes, are benefit Exchange with net was world. benefit up but this quarter due year. services. offset to to percentage which continue adoption Incentives increase range which last some lower helped X.X we from ASC line X on due As lowered primarily delays but revenue added the year. of than lower-than earlier, quarter mentioned expected, revenue. last last adoption point growth described of grew we of first cross-border increased volumes the also our some made the primarily nominal quarter. deal volatility in also Incentives points,

to first the uptick quarter Operating gross in grew in primarily costs. see We in last revenue lower of investments expenses percent were the the personnel deals. of incentives expenses ramped quarters and Personnel XX%, on of remaining expect we year. year by an timing through driven as based marketing up as a

in XX point quarter percentage to ASC in in Marketing first match related FIFA we Marketing to our the is is year. which acquired approximately spend World lapping Freedom low expenses the fiscal and quarter year the Olympics last addition, Cup. second growth XXX(k) grew the and XX%, U.S. increased up 'XX, leading XXX. of In

lower point almost higher and points. added Non-operating earlier, exchange rates adoption As balances. cash income interest expected on growth items expense X to due sheet I impact balance mentioned X.X to some were ASCXXX expenses our percentage contributed on than

partially the U.S expense. from liability, In debt euro quarter, interest reducing contracts, euro in contracts debt to forward denominated addition of dollar offsetting foreign euro we forward our exposure swapping are assets. The our denominated currency into entered some a

lower for expected XX%. at Our tax was quarter rate than the

this on the X lowered quarter about provided more more reform by of perspective U.S. that, clarity fiscal into to point. quarter With second the GILTI, few tax tax of quarter, first Department the rest related the During year This which than rate XXXX. effect FDII Treasury go rule and the and a application year.

XX%. is U.S. weeks grew First, some similar business now of the with debit cryptocurrency XXst, with the again, U.S first was has domestic, we share driving to for in from the cross-border December growth are U.S. December. the the for we growing negative. December. the in volume is Adjusted saw volume payments platform was trends payment growth around trend. commerce XX%. me and X%, growth X% dollar credit recovered our which Process second line What impact three spike volume In a X%, this the of intra-Europe inbound U.S. transactions cross grew of basis e-commerce credit Through let Cross-border the saw rate growth half shifting the the transactions to of growth factors January in this border constant quarter. dip XX% and on in slowdown?

Internationally, and U.S. be as to commerce this the the corridors flowing Commerce America, has Russia Growth very Europe, in of Outbound is continues Middle well Japan, started soft. from dollar excluding has mid-XXXX inbound to helped of dollar. Latin course strengthened Canada, the As by Australia hand on particularly China, UK, to the been continued. from the of the Commerce parts slow commerce outbound slowed parts through robust, within and other strengthening and sub-Saharan Asia, into the commerce as January Argentina, excluding EU that Mexico and East. and commerce include December Brazil as slowed into China. sharply significantly is most Canada, Africa. and

primary slowdown, and to be exchange appear the rate of the period causes of cross-border of the In activity terms the reduced drivers.

too factors to As turnaround. always, there if trend corridors. this determine specific to slowing unique will early continue are stabilize or in It is some

XXXX, beyond. will through assuming the the possibly intra-Europe revenue and fiscal of October, persist second it spike shifting that have transactions steady the EU revenue cadence currency For continue but net The faced moment, we the will impact. provided of of impact a we cross-border the the minor crypto be has In will would not for impact the we're growth to rates outlook January through growth year. quarter The when that domestic platform indicated through our quarter. second

outlook was our for revenue second This the by driven was shift, growth for the incentive the client of a net quarter. in net comparison growth year-over-year trends. lowest variety we like with currency rate low factors that double-digit volatility exchange year quarters the growth, in While anticipated middle and revenue high impact growth, single-digit

weakening we X.X X rate rate fiscal exchange is of XXXX point fiscal approximately a a The lot second sharp first XX% three percentage percentage XXXX, of benefited single-digit the a the tailwind of In from year drag, quarter an year-over-year. year of dollar, quarter to cross-border growth. point rate swing weeks point exchange cross-border The through growth in of second and the January. be of X.X the expect in resulting

I As QX mentioned into due deal delays. to incentives from shifted have earlier, QX some

ASC least exchange had will border addition, In October. revenue be likely current rate, and the much growth from mentioned, other cross XXX adopting the net I point Based accepted the recent QX in the in is a positive we just quarter impact in revenue was lower at to it than be first. trends lower than factors second on net

over next in create to Presented call and Xst as we the U.S. is given XXth. deadlines caution that consumers. and how and is continued quarter; between businesses resolved on could for the March issues un-resolved for uncertainty the are tissues ahead volatility weeks; Brexit the upcoming complex these be through navigate three Congress on to and they the coming many uncertainty Some over and for second March There some the tariffs China stand-off

EPS it's point. next the outlook net hope this a are had do to change for. weighed talk we past I'm that We start a are sure think growth. you our has on full months in the think uncertainties early weeks again all issues coming in as outlook time significant to fiscal clarity could provide that maintaining growth XX% many called too the definitively We largely few to at for conclude market more in and ahead. by are these months strong revenue the have We've year year with April. of that the you XX% to We for do several the We and since resolved

deliver love to that, I'll As we'll all have have you. this made to in Mike. the the levers the commitments we turn we to past, we available back pull on With to have

Mike Milotich

Thank Vasant. you,

We questions. are take to ready

Operator

Thank Instructions]. you [Operator

ISI. comes first Our with Evercore from David Toget question

Your line is now open.

David Toget

possibly Thank some the cross-border? out you. of the helpful might the column? rest called the respect call year could of be plus with of give positive Appreciate all be of what for some the all factors Could factors. to You've outs. us you in risk the definitely What sense

Al Kelly

QR categories continues is about And Asia holding they where like also look volumes restaurant are to Europe from the quite in seemly double-digits. very growth. and actually Canada in healthy China domestic it retail domestic volume double-digit our down and you hold if quarter, And saw and had at face of We end world Even up in at slow face Pacific, U.S. were back level. last to the X.X% quarter, well. the exclude the Three and of gas at growth. And around good. quite some regions grew we

look that, looking two think have the practically as any -- trend with domestic think enough whether sure to and we look when shutdown got that underlying do the that a discussed factors do good, Vasant a in that’s the cross-border geopolitical suffering at think through volume a to But their and people of of we UK, add I domestic have their in Brexit, of But been people don’t is different ongoing about country. impact conclusion. how said travel performance. and really think world, his It's we outside the bit we economies some all on it's what not and period have exactly So of an got and spooked we’re remarks, said especially draw the that economics by to for pretty time. you largest when U.S dynamic of their he

Vasant Prabhu

lot a some dollar and we've weakening even I stabilization or said rates clearly as would factor clearly mean the a other always meaningful tailwind. be the of matter exchange

had going and into we our we rate. a that last impact our fiscal saw sizable weakening cross border You second had year, trend growth on quarter, a

a it’s of combination think. So we

we to as in least and all recent the few that could look weeks ahead uncertainty next coming is the be at the of helpful Some dollar in trends we're ahead.

and So we'll wait see.

Operator

comes question next Our with from Sanjay KBW. Sakhrani

open. Your line is now

Sanjay Sakhrani

cross-border. has far ever that revenues between leading you One, was, Thanks. of next Can shown seen? to volume and that gap indicator I sustained few quarters? got guess it just whether been data questions by specifically the what that cross-border that global growth international the an two trends. the you've sales What secondly, macroeconomic not trends, as I and that out indicator on And as has be the widened? call or volume over then

Vasant Prabhu

the strong In the terms depends the cross corridors trends where XX% international on corridors of are it volumes which you weaker the border to border are and relative revenues corridors. in saw, growth cross -- all

As the e-commerce reported some it that and a very of platform was its intra for while doesn’t considered in linked change acquiring. from that That volume the in Europe, much. some points cases it the we cross that purposes, reorienting reporting of affects way said comments, X revenue economics we was standpoint, transactions really work in to slowdown all border intra-Europe

are changes of those reasons. benign one impact, the a that’s have part So don't revenue relatively that

the quarter versus year, year, year, bit the last The in quarter. relative and so higher currency much quarter at quarter. the low won't was second look that it this a relatively to year other last did if last as in this year have volatility helped is we Volatility you second the help in first volatility in first

the So those are factors. some of

Al Kelly

happened a there's factor, is third which say said in we remarks quarter. through the the saw would I we decline our that

performance prior was the We we and in the a the beginning at saw seeing of had quarter. more parts what they're that quarter. been So similar

that end out quarter, to towards what into So three calling back a and we're we're January. of the the was starting see of trend the weeks first

Vasant Prabhu

there And question. was second a

Sanjay Sakhrani

cross-border indicator? Around being leading the

Vasant Prabhu

volumes weeks they if second said, where the as U.S. robust first very of gas December recovered and and Al in was conversions what prices much were even the some after in to quarter. to half softening the saw, mean I are three the you quite in the domestic As you adjust for

economic now trend. there in the cross-border the is right in domestic evidence So weakness. is volume, strictly the no It broader

it events not leading to. uncertainty you that So tell indicator that to perhaps about is sure a than able of certain Al anything we recent I'm would other more be referred

Operator

from Kupferberg comes of next Our with Jason America. question Bank

open. Your line is now

Ryan Cary

wanted It going through first to seems maybe a little how be while ask credit Is three about to the the it volume Thanks. growth thinking little forward are there levels. you and of below quarter. towards seemed forward. I going bit to recover particular a bit weeks of moderated were like it the end it beyond? sounds thinking January, even for still recent the about And to the quarter growth how you in anything U.S. of about rest

Al Kelly

conversion started the part latter to first quarter. in of Cabela's the happen The fiscal

lower will to So if the it it in you full second quarter. which have than does, conversion, adjust it looks impact the for quarter

first gas for adjust or as and gas conversions the the you fiscal adjust in for quarter. prices, If prices the is same roughly it you because you leave effect in, was

in were to close the quarter. first We are running where pretty we fiscal

to small impact first you conversions. three for linked the the weeks is in the in So rate of that reduction sense, growth see the more

Operator

with Huang question comes next from Our JPMorgan. Tien-Tsin

open. Your line is now

Tien-Tsin Huang

detail for in the what Just around you and that of thanks confidence. talked, changes on the given all consumer

the the So line maybe want know is protect is just and maybe bottom to us business if business if worst. the could you're changed, the ability on I'm does know you etcetera. willing this defensiveness can macro just of you has update Visa -- investments a take that to have on curious for I I it? changed, comment that your turn the for

Al Kelly

to and do both years. delivering out make continue for both to that all we investors year sure -- will the do need to We are we for in the

balancing whether careful it as trend and because sustained where is important don't tightening, certainly appropriate year. think very good that it's very, but But or some invest know. we see, a reverses, a in we to this it certainly as going the sales it trend we to continue that we out act, being in do would mean we're areas is not So performance or about be get we

sure expense that will absolutely at we back investments think demonstrated make battening some of just of historically to we where our And down do I lines to look you at look that. to. our if past periods, the we’re our So hatches we go and ability and all all need

Operator

Rawat with Bernstein. question comes from next Our Harshita

line now open. Your is

Harshita Rawat

My question is in BXB.

still Bottomline peers your Virtual or business Connect So rollout states investments year BXB partnership in your nicely. be and very so, the with the accelerated Billtrust, the growing partnerships, have last and of Card your

to last this up trigger is, is, question lead after your this place build that my to enormous in in the to has approach So and follow grow this to to space? in what years my the the rethink and buy your your strategy market investments changed market? few BXB of versus has And

Alfred Kelly

than to is I probably in think XX now and that, made really down bit so, what happened a really double concerted a effort, run BXB unit. and business really maybe longer starting we a as more invest that little months or

XX in of head focused a BXB entire months McInerney, it. of built Ryan or on President. We our as have We actually so team, reports ago that to

confident and segments multi about businesses, within small that exit fully BXB different the large business thinking big We are nations. and three side

Each, needs increasingly different is with homogenous. this is industry we’re As that. it of you know conscious in not different space, vertical and

We’re buy. to think build versus build certainly we made partnership and around I looking more to that question your

think and necessary both in opportunity acquisitions. both I as growth where that would potential of mode away look we we’re and -- be and looking them the think committed check very at also and this But and every wire we our will more will we products would active digitize capabilities and transfers. we’re opportunistic that help cash business at to clients build, to value move is pro and payments if from

Vasant Prabhu

that to also you as And that BXB space. said, space. Al important Direct As new to we then Connect offered the BXB last capabilities has capabilities applying that BXB us few the us months some apply offers know, there that are in partnership has our capabilities. are new added to There Visa

continuous So, capabilities expanded. that years, had a as evolved have it’s a but for few our we focus technologies

Operator

with Lisa from comes question Next MoffettNathanson. Ellis

open. line Your now is

Lisa Ellis

sequentially a Visa Visa quarters over XXX% think volume which rate five related as there Visa mean is and growth I driven. question. at Direct for I I pretty U.S we the is straight I looking debit extraordinary heavily accelerated World, now Direct were had a think within

or payroll or which of prohibiting is meeting sort of today? that confess in applied strategic can cases heavily and what's being ways into used ACH pay electronic Visa And a Visa Fast functionality question, just like better ACH Direct or or you verses positioning compare different? So more bill from Direct are checks Direct the Visa

Alfred Kelly

so now, part funds. be all to fed will world, for those capabilities market be of and as KYC and Looks, the time debit Direct specifics to of a same of the cyber packet sort of of able it this So -- is Visa and that cross-border of all time certainly One types probably even the deliver AML like funds XX the it U.S. cards to leverage to are with well Direct countries. growth is not consuming. as runs we able of it's to as of together Direct Direct on stream leverage acquisitions, and were through Visa outside over exactly capabilities real as Visa send of tricky bank of security that would both ACH and time of XXX which transactions can countries for Visa to as Visa accounts it over two the types payments that. somebody It's capabilities it. today, of gaps. last that reach the all it countries and Visa Bank, kind group types the U.S. our our in would said at partnership is the the Direct in a second we this information X that's again contributing ability global But operational been is can are Visa is travels have are most Things enabled debit And going to has of definitely world. billion many this around of around

planning mean clearing to is space as say and time looking in that but I'd get doesn’t be process improve -- strategy authorizations will our warranted, and example the use Direct to a core value to of authorizations in VisaNet, Visa continue real that payments and involved great as So that well. settlements, adding we

Operator

comes next Grosso Mike Jefferies. Our with question from Del

now line is open. Your

Mike Del Grosso

previous use on Are used Is growth it et healthcare Direct, you and still within in to cases case? you Visa Similar to can that? and some the caller predominant that's see cetera? of disbursements drivers the PXP to on starting the comment uptake

Alfred Kelly

pay reminder, is a used disbursement one, Bill PXP a other that as at payments is cases, of is least is as So moment, there a four. is number another. to and largest

I economy. kind payments out gig of in a force Pay the been to like Cash sales into and think the things scale flushing Direct, used and was PXP We're as seeing the and Zelle end cases it case for increasing but shift, developed looking we've There working first this partnership. Venmo Square the whole the that and some Bill around and facilitate have week to certainly of we growth of else other got gig applications of end of real-time lot powered other Visa and people signing world. used initially PXP is end economy. got in day, platforms a of of

we Visa think of range to contributing a we’re array, cases -- going should you're Direct and that wider on, I to continue So that are growth significant as I levels used have of say continuing.

product. stages new of growing and already expansion breath of We’re that seeing the the for the

Operator

Dave question comes next Our Koning with Baird. from

Your line open. is now

Dave Koning

have revenue then and guess, weeks was ASC the Just the two quarter. the impacting at the slowdown XXX few second related travel I last e-com? was Was last, guess question, that things. or segment? And cross-borders other more more I quick in

Vasant Prabhu

the the of and point it chunk total a ASC of it line. in incentives revenue was the on be XXX biggest it about some most up growth should impact line. That’s where the Yes, would and show revenue of on other then

incentives the So between and it's revenue the mostly other line line.

explained other this reclassified higher most I this revenue due it. and are to due lower it's they of incentives because and So, somewhat to

than amount in that perhaps described. on in the along Other cross-border growth, more of than things a it’s a present you the large, not the it's the by And the gave little and segment line segment. In segment we we face-to-face card, the color terms comments. of of but fair a cross-border

Operator

Maurer next Research. with question comes Our Craig from Autonomous

line Your is now open.

Craig Maurer

Two quick questions.

on First, come the a be not you specific depending might going to Visa's could Earthport? consumer is on can that you’re spend, what was the the And indicator capabilities secondly, card what is or by what Just economy? way for you take? comment -- or actions business might after leading corporate understand targeting

Alfred Kelly

by any given time. we're not takeover with on the we're at Earthport that or to latter do point question response code, said, anything just Craig, as to to U.K able governed I in this the

Vasant Prabhu

no spend, to a quarter, In card terms the in suggest spend card over indications were least of trend. in at fiscal corporate first there change

Operator

Blair. William question next from Our comes Napoli with Bob

Your now line open. is

Bob Napoli

just on business the expect guess acquire I trends offer is cross-border? share do are that's see do raised What build Earthport for going Question a shifts you? growth M&A to the after? a same. you and are the business stakes perspective? and technology that profitable the cross-border and on I guess over that to and after battle market more seeing And there a going consistent -- your your competitor being make -- obviously you you business What you What are to really very in from need

Alfred Kelly

at where of and look level. can of add to technology geography We funds important a more many in cross-border to partnerships one is and any Bob, participate through from just The inside I geography. this, get all of we the another value would that movement will strategic us. at

nothing we any be of going it leave recent did that short doing And to this it we we're just related last terms we change. So continuing be in QX saw going it very do is say accelerates. to going to But unturned. attacking running be that quarter. I'd in all very, in very of We in 'XX in rock focused differently QX certainly would nothing that seen the are would, If anything of to because on There to We're if so do going as we terms not safe and of it. through cross-border, were what of to wouldn’t seeing that, performance, committed to would we We I we've that's is cross-border and we're the in slowdown change. being forward. trend said, 'XX.

Operator

next comes Fandetti question Our Fargo. Wells from with Don

open. is line Your

Don Fandetti

what's guidance And the bit growth, volumes Vasant, it factor you at? room? of I cross-border little you were So, the are reve looking close 'XX most dig on overall mean can relatively guess -- I important your How a that? a sort you in Is bit you do on have wiggle you are of for are just solid? the --

Vasant Prabhu

much is we would more don’t the in comments. what I we So said to there think add

the wasn’t too growth said the revenue seen It Yes, was in and is, have cetera. et tracking really when cross-border started you that some growth few whether turnaround. with There this all early better as the tell expected, slowdown XX% we we at have of same last trend transactions it's really we've We than meaningful going expected. moderate change Fundamentally, year to or volumes is other we dimensions business are in might in any comments, to as look weeks. trend.

outlook as based don't area one kind at reasons of full-year that, see any know one happen this again. stage change as all The So, early what been on the adjust particular to there. in it's comments, to our we and said too in

Operator

Research. Our from Wolfe next comes question Peller Darrin with

Your open. line is

Darrin Peller

between touched spread the a I the volume that. to bit growth revenue Europe and on a in clarification being contribution cross-border, more little growth a know Just you on

the maybe said other the keeping else? hundred you is of about bridged couple been it's it assuming just say the cross-border And or and to there think points. I contribution thinking where to anything through range revenue on that today gap Was sustainable? basis versus quickly pricing it on cross-border e-com where past? side, that year then just is on the in now was variables And then going actually

Vasant Prabhu

mean, real volume quarter-to-quarter In revenue terms of move they I and growth. between the delta, from

the terms will year. pricing, and of year we kind become told in pricing of you of what effective of are half most this pricing the In second the we doing

could it line growth extent international revenue in yes, the growth the of volume and delta revenue to between that terms an will have impact and reported impact reported. some So,

effective, year delta another differences rate levels whether factors strong, a within of course, go On have the weak. between margin, impact and impact. is volatility, one volume is really big into The which corridor growth to exchange all And which which course of most as would is one one a some of is biggest a those factor.

volume mentioned significant widened there so You've variable revenue gap another way the growth if I all seen drives the probably growth rates difference factors is that exchange anyone really international that exchange or areas line. revenue the rate, on between of and most is the one it

Operator

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

line is now Your open.

James Faucette

try and question seen wanted China? America some level of cetera. places India investing, in some from and or of also like know a places in et into another participants payments and to higher disruption and from heard market et China change any the area FinTechs I outside around Tencent that to Latin in that’s around ask of by as we I cetera. Have are get you the investment about ongoing AliPay world the potential the investment they

perspective? competitive change that I’m environment set you're from so any seeing wondering, if in And opportunity or

Alfred Kelly

processing to lot balances outside it's them both WeChat obviously Chinese a and in wallet. there then with to in stage know, fact in China, you through been China in of a inside days for on terms much forcing has local pretty deal early capital And of description AliPay to I hold comment. making the the switch. of probably the think, related They're PBOC changes and think I that as our of fact

the on they are offer changes yield, some putting fund. they So can mutual under

the might changes will with grow continue I in as heard in very still as India. whole mostly with continuing two Asia. XX of point, saw, deal to to in India We're continuing my of leaders of up with somewhat our last two look be to expect is change them renewed in you acceptance and to terms market to we're said, the a quarter India. continuing business tell they deals the you was grow China that in we’re to the bunch I -- banks preoccupied there from China large we prospective over points That itself. in So, in of be in outside remarks,

fact at the very healthy of that prevailing that market our certainly, least and one pleased for wisdom with target So, is still moving players AliPay at a along basically That pace WeChat. FinTechs and business in we’re is very the growing the is.

Mike Milotich

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

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

Operator

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

You may disconnect at this time.