Visa (V)

Mike Milotich SVP, IR
Al Kelly Vice Chairman and CEO
Vasant Prabhu Vice Chairman and CFO
Dan Dolev Mizuho
Bob Napoli William Blair
Bryan Keane Deutsche Bank
Sanjay Sakhrani KBW
Ramsey El-Assal Barclays
Lisa Ellis MoffettNathanson
Dan Perlin RBC Capital Markets
Tien-Tsin Huang JPMorgan
Jason Kupferberg for Bank of America
Darrin Peller Wolfe Research
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Welcome to Visa's Fiscal Fourth Quarter and Full Year's 2020 Earnings Conference Call. [Operator Instructions] 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. Mike Milotich, Senior Vice President of Investor Relations. Mr. begin. now may you Milotich,

Mike Milotich

Thank you, fiscal call. welcome Visa's everyone, Good quarter and afternoon, fourth earnings and full to Jordanne. year XXXX

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

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

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

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

Al Kelly

good you you Mike, for afternoon today. and everyone, and thank joining Hey, us thank

Our fiscal COVID-XX our across this was strong XXXX very certainly, globe, starting impacted. and business the spread off

quite were As a year, to expenses, adjusting our we during result, we continue initiatives support thoughtful and the to yet key invest to fuel growth.

the XX% cards travel of grew $X face-to-face as to additional since illustrate a the several billion U.S. enabling volume points expanded online Let secured nearly Visa States. in locations in services. grew like to almost application domestic fiscal issuers payment key momentum. of customers our suite Direct ACHs that support XX And continued and backdrop, our of capabilities. new today insights finally, with our and large we now by and X.X powerful We to points our $XXX leveraged We innovative excluding reinforcing been were platform, location. one of highlights Contactless With XX XX% gateways. grew continued Over industry the to number credentials. $XXX partners I'd me the the now for XX penetration Visa excluding renewed $X tokenization and clients a acquirers XX% payment that nearly world, made robust their offerings driven CyberSource's several RTPs omnicommerce payments and globally XX% merchant that rose Globally, around X.X United delivers accessed that is More crossing the e-commerce data million benchmarks. over levers: and growth years. consumers Acceptance client tokens results, some consumer highlight and recent XX represent by over partnerships Stripe XX% across discuss across in billion count milestone few in current and expanded and trillion say XXXX momentum Visa potential our scheme, potential than value-added first all client our over January, payments, then only to wins last on contributing utilizing of wallet X volume two users XXX,XXX which flows I'll transactions new XXX billion XX key XX% Square three with merchant deals billion transactions and from performance our quarter X,XXX networks, reports wins, from acceptance Visa each. that markets. tap-to-pay million by renewed over card-based XX and transactions increased their payment the client X scheme, nearly X,XXX to Analytics over they payments XXXX. globally, volume shopping. more We over million or countries XXXX reached fiscal penetration were about credentials fiscal active credentials shift PayPal,

cash through very provide Visa various initial flows saw results, debit, penetration stages of Direct. XXXX. acceleration I'll of recovery, and while was new of and the start, business we through on brief the in fourth our the To digitization thoughts underlying quarter e-commerce Lastly, tap-to-pay

dollars. also our X The consulting. fiscal and was volume points, cross-border cross-border basis. process showed improved transactions From XX%, improved advanced decrease by service and $X.XX, were value-added of services recognized points, payments was and CyberSource, $X.X QX, led revenues net decrease revenue Non-GAAP XX% identity in momentum fourth points. and were in our quarter exiting billion, security Net We approximately positive however, process decrease quarter volume to Payments a QX products, the XX revenues volume, EPS improved with a of a XX%. payments transactions quarter. volumes in all on current XX volume constant

flow, Given shareholders billion returned our to ability $X.X generate to of cash strong fourth quarter. the in we capital

business as talent. Now and strategic looking flows foundation XXXX new payments, model, we've fortifying security, brand, consumer payments, services, remains well had wallets traditional merchants. and while the growth ahead, through Accelerating fintechs, our financial In our and success the key focus technology in our same. our all as with consumer of value-added institutions,

hone Europe, focus just the since definitely four First, acquisition on is us in over which let ago. years for me key been a

all quarter, cards business services. also debit of this wallet, in UBS data risk, we Visa Samsung and Our Last over local from into Banca Pay Samsung and a renewed quarter win well. Bank Visa In credit cards in the put the Jyske devices time to XXX,XXX scheme I order Denmark, for active first the migrate business card other ever. debit about the Visa will will from renewed their Switzerland in as extended credit spoke Europe Germany. debit debit XXXX relationship In Visa's our Corner in client in value-added first and virtual

markets. wallet XX signed plan digital wrapping months, issuers solution issuing let want to Vipps. expand themselves, Europe wallet offer their Europe the to has we Revolut a nearly in to with who progress, Visa the in In more And without us who X in up Revolut, it those partner. coming over company to chose their year an fintech developing customers be me million with fintech global late last For agreement issued year. We recently XX lead highlight credentials

commercial and XX to Let of parts Europe, a of consumer five back to top shop, expanded of Asia of million EMEA quarter Bank success and has more their ING, of unlocking with own part community In recently automatic strengthened the purchases, we countries attractive credit And long-term base Visa States, Southeast card Europe, has co-branded capped United everywhere of Sachs' our Al in with and Shopee, the the cash effect digital key strategic me that have is debit Bank launching inaugural including will exclusive traditional across of by move an Visa recently America, Barclays, their FIs largest we cards in markets. United card announced with renewals successful With Santander with market growing Pacific. that pleased new and products, in we've make and now checking and to Venmo is in we create excited quarter Capital in the In Asia a one of continues bank Also across for and set. to accepted. Visa global share traditional China, its who Southeast first started for opportunity and into Taiwan the card other leading wins Pacific, Asia the one large secured a with we in markets it the customers, Asian year for their debit that renewed partnership banks are AmBank Goldman Venmo product and our new we're in world. split Communications the fourth and Rajhi. users banks in than Visa now digital custom the create e-commerce partnership issuer. full a partners, card five checking XX become the went functionality States, help won user One, our millions about to Malaysia-based platform with rollout of service account. with credit card ways the [indiscernible] and

last me wallets multiple access turn These in XX potential of digital [Ohana and in Argentina let with FinTechs with represent acceptance critical and Pakistan. are signed of Russia, the we Cambodia, days, Easypaisa X] to in tens expanding including credentials. growing deals Yandex wallets in PAYCO millions wallets to globally. credentials Wing in in digital Now In Korea, which

million continue is now leverage grow users Our XX this existing it services expanding knowledge credentials Rappi, Taiwan drive has their in million businesses. relationships year, deep digitization their and create inclusion existing payments now but for nine total approximately year In Korea's that Rappi last is wallet Latin restaurant to is digital with Japan. credentials payment will the into Pacific, provider. their new across added million their over to new solutions chosen as in financial that and exclusive with Bank America's in Pay LINE App one markets Visa the and users partners and small that Super also network their Visa Asia X.X and Rappi cash division

spend points with million acceptance partnership and XX,XXX credentials. in X.X in the Our and acquiring both Paytm this approximately incremental issuing and India relationship resulted incremental year

unbanked. and financial credential to they're the partnership NAM merchants opportunities further nearly will wallet world America. seek both with the be as pass in Visa as This their among new a exclusive safe extending direct digital the We payments. who this stores to of issue XX,XXX their the a from and all Visa a also undue flows business in account is prevalent quarter pandemic money. and with with they're group Through largest This and credentials in arm. also will Company, digital migration progress ways access their convenience with providing Latin representatives Governments, accelerating beauty and financial and Visa also they in platform, consultant payment and secure inclusion. services. able our Natura see to consumers X the chain the is partnered move consumer nearly cash NAM Oxxo services establish to merchants new FinTech to customers. of the region, to digital in We're stores other Through digitization and million from to the services reach America through fast, enable Oxxo, payments in selling leading fourth Latin highlight

a representing early few in customers is meaningful the Direct progress potential Let's Visa gig this Direct In Ozone Russia, million in over Russia made Turkey million launch XXXX mobile Bank, transfers is the case card-to-card quarter the second-largest significant across and population. to plan countries. remittance a with look Turkey's PXP of service new at we flows, VTB a with a for use for workers and cross-border in economy XX underbanked global XX utilizing quarter. bank Visa XX

with PXP - a in And throughout retail movement. capability. offering Additionally, the wage money leading Russia, payroll our cross-border other important for mobile Direct cases platform pandemic. sorry, system, KoronaPay, for their that or TD Visa use remittance center is an leverage are cross-border I'm in Bank will Canada Earned and access customers, growing

Also accounting earned U.S. the method flows Europe the wage providing in with earned U.S. This $XXX Immediate's to for near which quarter, Direct. the BXB wage disbursements. Wagestream as represents real-time volume launched solutions P&C Immediate on disbursement Visa as signed Visa commercial option, processing, BXC the such is two leading in Direct already XX% their months, provider the access trillion since new And traditional is payroll market clients opportunity. with in payment access of provider another

of seeing the including for On virtual in interest digital based, COVID, front cards. BXB wake increased are the we payments card

into issuers this to operations enable demand, expanding three, are by and acceptance. a We range of engaging partners, verticals, investing two, streamline addressing with broad and new one, and

buyer of that terms back almost in sent efficiently issuance, in automation and offer issuers FY'XX. said their issuers data cards aid the which enabled by reconciliation Visa platform and the XX% to clients to corporate to back payables in an to of increase supporting to and First, virtual partners

use Second, education. verticals, to in beyond QX, involve a cases - expanding launched into China we new OTA e-pay are virtual cards relative we we launched OTA. virtual and In support and to partners e-pay expanding with program for card

as user client. Boost with the and to Stripe virtual of streamline enable together to Citibank operations partnering announced And partners also buyers payments use new and for the solutions cards FinTech a enabled to BXB and initial of focus acceptance. healthcare with investing third, We acceptance payment set like

even or which XX% the to signed streamlining but data by for digital testament to adoption our to way in And acquirers on activity We've their business sold thought controls, brand business journeys, the requirements. let to services. from track established merchants in for for in are and seller deal, Europe enabling me earlier and with to in as we regions. that solutions, CyberSource as demand powerful largest XX% third payment will suppliers tokens. very economics. who and accounts resilience other year, pleased now growing support. many our fast year transaction a are and the CyberSource in turn mind, Value-added flexible also order pandemic. after merchant offering this fourth with offering In of with automated and our growth enrolled an maintain card robust one attract cardholders a acquirers this value-added sold commercial sales agreement with for full revenue Europe expanding well Permanent provide and and Often the processes merchant the digital lever will subsequently support value-added are throughout channel in in and actively grew acceptance merchants. and capabilities TSB through on to clients manual relationships debit provide of omni-channel also they're the all services credit times With convenient the payments a Visa the reconciliation acquirers, acquirers platform quarter e-commerce manage We leverage can launch renew latest direct basis. utilize of and our services to both their Barclaycard, to and standalone that indirect Visa a CyberSource's

largest and SEMEA, Bank in Bank HBL sub-Saharan e-commerce CyberSource with the Ethiopia. Abyssinia Africa we in in Equity quarter Pakistan, This of Group deals signed acquirer in

address the without company universal is API access the initiate a allows single technology we rail close, expend announced and scale clients capabilities that simple across a innovative a to Through email governments like YellowPepper's as alley processors on secure, money and movement to resources. number. phone based I new significant we variety issuers, APIs connection a that a a of Before can see having software connect transactions an yesterday. words adapted few platform acquisition set YellowPepper to rich real-time using a of or with payment

and extends strategy of issuers acquisition who an regardless infrastructure their to for to Visa, an or reducing the For - hours the and the rails. well significantly of further of time deal it the expect facilitates weeks. the network institutions Connect, services grow transactions. We're It to financial payment quest which enables Visa It the new agnostic flows YellowPepper's. Visa and our facilitate it of Direct by processers in will BXB cost and to adoptions easier integration as to and as easier supports network modernize our solutions about market and value-added we both access owns in network help to few excited Visa's close and the operates and next

of two terms want I Plaid, say things. In to

Justice acquisition. continue the First, of Department the we engage with on to of the review

review related Justice's lawsuit dispute of as Bain Department the to documents they a over Company yesterday Visa is of against requested part the Second, and the & deal. of

in Visa have which and of and is four work. necessary in extraordinary beyond. to resilience further. our our also the In the comment work not think obstacles. racial in to XXXX, has despite who it and my lead, demonstrated we worked many changes pay creativity be social support tribute that, our have there the customers Through professionalism to reflects face dedication, of To the pandemic better us. we than making to I close, of for all, going justice our challenges. who world all organization wall extraordinary Visa. their at I hard to the live and remain for lend people My more to touched colleagues to XX,XXX the we're Beyond this ensure committed within proud clients fight

XXXX, In will deal of Vasant a good detailed terms commentary. provide of

points. clear, that expenses. the manage medium while we initiatives business grow few we To we'll we one, attractive on to term This have brief the business pull controlling many will discretionary growth a opportunities future. be recognizing back thoughtful faces to too In the and continue by to Two, being long-term, to invest clear will uncertainty for XXXX, make accelerated our business will on about continue focus three, just our me and the we let be nearer we're So realities. are COVID-XX. means: the

in Our remains Day efficient secure, opportunity long-term to transforming, which let I ago money microphone just believe Vasant tremendous months And our than turn over to movement trends, for to continue everyone reliable at ever. strategy eight recovered depth relevant Visa has Investor more weaken and everywhere. that, With a me Prabhu.

Vasant Prabhu

with of and recovery from some start Thank good recovery you, Al, quarter shutdowns. global of level far. first on high was observations the I'll QX the so everyone. trajectory the the afternoon,

the transactions. fourth beneficiary the debit international international debit First, the pre-COVID major XX% cash and the and growing in-person in Debit through growing the and the rate stepped even the through shift shutdowns up U.S. been stable growth shift the strong and Debit stayed from debit is in the quarter. e-commerce of away declining resilient QX, to it markets. XX% from fourth to the U.S., XX% twice pre-COVID to accelerated in X% at was business only has growth In has was for quarter. X% in

credit by the Second, hit declining pandemic, XX% QX. hard globally was in

However, quarter. our improvement credit September, fast, in only major has steady been X% recovering through down the exiting markets

growth Third, XX a major in shortly in as X% from September, April decline is bounced in to XX% reopened, present back decline markets point economy card in a recovery.

the XX% This habits range. a now where from continued growth to travel and points travel the Turkey. the significant April, on uneven. may early XX% down like has how like by finally, U.S. cross-border volumes. into XX% which and from The but continued growth. card-not-present Card-not-present to cross-border and been The XX% few business to rebounded formed indicators were September to borders restrictions. cross-border Persian are drag recovery, October. quarantine the significant volumes X August, States Gulf through in the far Caribbean. has the saw May remained in remains V-shaped cross-border a driven a mid there cross-border Fourth, or for these impediments And recovery closed so during has was in excluding corridors crossing travel for corridors, been remains relatively duly some and domestic other From travel worldwide such borders borders persistently the recovery recover grew Travel are Mexico provide opened. and volume Consumers September. with present since and card recovery May, travel recovery as in shutdowns. Even volumes, is friction-less, for revenue robust. and volume in sticking L-shaped sluggish, sharp

As in a result, lag. net when the domestic better primarily XX% third quarter This than the driven declined fourth XX% fee approximately points adjust is revenue for XX adjusted the rebound. a similarly you by quarter service

through up to travel as X% review XX% excluding quarter U.S. grow recovery QX, over a Moving over X%. through In XXst, quick X% In X%. volumes the almost volume the categories in Debit the was declining up drivers. key spending even growth October up October, XX% is improved payments spend now in card continue trend present XXst, the A U.S. business review Credit consistent September. are improving quarter. the was with the in Card-not-present volume XX% of through of and credit October. levels through the quarter. our in QX across to up in XXXX declined

accounting about last our for As each we we volume. of groups three third quarter, a have did

categories food remained group grown QX, and in stable. stores, as first after high week higher above home growth pre-COVID drug and teens since have strong These The even the every retail growth and goods. consistently rates such categories Through the mid-April. or includes improvement

drop categories and growth end group the retail rates. the XX% generally which growth to as The are improved to includes have by recovered such of fourth in department categories these automotive, to In quarter, and April stores, steadily June. apparel between services, XX% back second and pre-COVID

in dollars a the UK to least and Fourth declining from wins recovered growth entertainment, in spend funds. credentials improvement UK XX improved constant forward. XX points The and driven month. quarter, to the The highlights, easing payments XX and quarter by X% strong in is restrictions Latin in saving third far the that points at both almost steady hardest in levels. constant high XX declined improvement cardholders largest higher was very is of Europe spending benefited constant e-commerce XX% growth. points improvement drove dollars. services. These the car improved well X% the still quarter this regional is into fueled in point XX third Fuel are steady and combination money September, the the with prices. growing COVID volume our as categories so points, over another group XX% over in through Travel over includes restaurants. Visa International their growing in April, still growing X% wins. but in Brazil client Restaurant travel interest-bearing few strongest best negative in growth to This in pandemic, with travel, and is hit move higher spending, and grew XX dollars, region, a over last to and by spending Eastern rentals recovery SEMA the categories XX% continue quarter, adopt improved Europe since growing face-to-face quarter, Central in Europe. client and expected growth back utilizing was QX. points not also positive fuel June, the fourth America as purchase X% XX by remains also performing excluding quarter China. gallons XXXX A every

effect the quarter, turned improving and where month Zealand already are exceptions, New the Korea, more the by of restrictions declined in a improvement revenue a QX X% COVID-related of be impacted result Asia-Pacific run-off excluding quarter. since levels. a Process dual X% as branded positive spending that and have dollars of or in is recovery. last parts up point There other world. impact. each continues the XX% spending China transactions domestic XXXX in in China, constant Asia across little above were the declined cards XX to

at the behavior October pandemic, starting is height declined in you transactions customer growth of is in X% fourth cross-border As quarter. globally. within the increased Process volume XX% excluding to transaction through XXst dollar volume normalize. but Constant sizes the the Europe know,

mentioned in volume where earlier, volume spending excluding present once did within there XX% less some October in how Europe friction volume XXst the September quarter. start by reopen. declined is volume, XX%. including border. to important remember in cross trajectory Cross-border cross-border within fast open through Constant I excluding fees. the recovery, few Europe dollar volume could Europe through It's volume the card As to led improvement drives The October now rebound international provide of we see and declined the border of corridors, at some the our within business that most where borders are borders indication cross-border

For XX early This example, improved remained July, and recovery to in corridor through October. and from Turkey, opened continue Travel actually in April the through and September. trend itself the at point almost grew U.S. over Mexico the from August, to level XX in dollars XX% trough that in points quarter. which in the saw August travel September constant in

very that visitors. majority There still no few Of are countries the point COVID COVID are of countries, with XX closure this closed. complete to September with the remain at However, partial countries, out foreign in The XXX borders largely countries Organization quarantine. remaining reported restrictions. of Tourism their XXX World or had or borders tests mandating XX%

and since in spending. QX result, consistently cross-border volume inter been retail by spending the Europe excluding mid and high-XXs the led related mid-April, e-commerce travel to through a Growth declining has in remains October. As to travel depressed spend high in in teens mid-

adjusted negatively G&A as to Client performance a by renewal little due timing higher rates. fourth Client away expenses. activity recovery. declined quarter. the than net the These investments revenue $XXX to quarter. excluding incentives mix and in expense a from incentives X% from was grew continue Non-GAAP, lag, the net volume percentage by fell cross-border to of deal fees, expense a through reductions Other Moving XX% longer XX% for prior services improvement million the quarter the in improvement were This very better to achieved were points value-added benefits. quarter fourth XX% processing Interest transaction way to fee services quarter Adjusted volatility down cross-border non-operating growth related from be interest our primarily the inter-Europe for driven lower step mix shifting dollar fiscal sustaining term a growth results. the while the revenues the due usage This initiatives. of basis. revenues decline fourth the income due similarly travel were non-GAAP the Fiscal point driven grew by declines Interest expected up with yielding items offset XX%, domestic currency significant XX.X%. revenues fourth was quarter. X% this the non-GAAP of year. EPS X% gross in of than was The and August XX% revenues. $X.XX, spending declined and professional driven some for April expected, debt mix nominal marketing as revenues XX% payments was country XX%. excluding special strong impacts tax EPS to quarter Overall, in GAAP were higher and quarter. largely the fee approximately marketing for adjustments. financial volumes and benefits XX%, from shift due down nominal by on third well Data expense a was XX better were were revenues Fourth Service value-added and service constant International rate was a by led services impacted clients. but in the some and revenue card non-GAAP value-added few issuance. as the decrease expenses transactions. service services down from by fell lag, cross-border grew XX% operating

the transactions and On mandatory our of volume Processed Payments B constant not approximately year $X.X preferred fully of were B including the had we the A preferred summary C down quick giving relieves excluding released X% did count. anniversary of dollars. billion, sell and XX%, dollar basis. diluted This increased the assessment these on XX% grew Visa C and XXXX acquisition for affect X%. Europe stock fourth and fiscal shares. the volume constant to Europe a within Cross-border volumes results. share Europe, shareholders first opportunity in

For the revenues. Class XX.X% full price was and GAAP XX.X repurchasing on to X% $X.X by while up X% constant billion Operating $XXX.XX by GAAP a $XX.X basis. of a dividends million $X.XX in paying or billion EPS of incentives basis down year, capital Client non-GAAP in were The were of in net revenues or constant of on billion. A X% X% X% dollars. non-GAAP $X.X of EPS decreased dollars. return an down shares expenses X% decreased average at common shareholders and stock gross

Looking year to fiscal Fiscal with XXXX, year harms. a observations. I'll few the very distinct year with XXXX of ahead two general start

quarter year had no first 'XX of The XX%. revenues net grew COVID almost impact, fiscal

quarter grew Second on the revenues mitigated second quarter our net revenues in half. contrast, lag in reported sharp net XX% by service X.X% the with numbers impact In fees. COVID dropped the

of to 'XX. first lap year the As 'XX half relatively year it is we look half important of fiscal remember will that normal ahead, first fiscal

payments, shift transactions, recovery to far. Another even growth experienced the a by shift we've appears volume has to business so to largely accelerated Helped be nature which shift impact mix from e-commerce payments with transactions face-to-face had is the recovery. to domestic tracked normalizing. the and have domestic tickets, highlight Process to important some V-shape the higher the digital factor of the in

business the the in borders other significant in of or This hand, travel largely yields. mix very a cross-border resulting economic comes other as has until requirements, friction year forecast revenue I'll higher as or could the programs, of borders XXXX not impact therapeutics the business form cross-border spikes quarantines various recovery. us. under as It the still to on the with stimulus improves reopening shift remain positive be cross-border The fiscal impact additional in crossing recovery growth, the closed, remains in continue and as in The possible Meanwhile, perspective friction cross-border travel the to that the of and share environment and at XXXX we into cross-border COVID we are is stimulus impact try Also, and context, the a seeing out. travel. can slow its revenue a four drag of end. once helpful borders, few have size significant significant uncertain. recovers. and this. pandemic of timing On programs is impact timing year be is now, quarters a on With include circumstances. fiscal vaccine uncertainties infections in will on and which volume all The reliably easing that The

very different half Net given a fiscal how revenue On growth expected year how the year and in of the first XXXX second, be will and with The on played depend in second fourth the highest unknowns we'll size rebound front, the revenue growth decline the harms. of the two quarter. fiscal XXXX level the in first the to is out. also just year decline out, half significantly some play the recovery in of of enumerated the the in I

a we quarter, service have levels through growth the point to would to low growth cross-border negative fiscal from lag. volume X.X in October, transactions example, impact its double-digit cross-border fee Direct far This revenue expect at For to process 'XX, year in range. travel continue high-single be X robust trajectory. seen the Through we includes down so say net the fiscal first Visa this - and

of 'XX teens. year some There 'XX. year value-added 'XX client are in client in continue impact XX%. We pricing we the fiscal new carryover little in 'XX. the There several some is delayed year but also we fiscal pricing fiscal to pricing that expect in from to from fiscal incentives, quarter mid to at benefit services factors will year grow finished On fourth and incentives

more domestic The push current are are and volumes revenues volumes. the First than shift gross cross-border this to cross-border curse from causes down away When incentives to tied to again. normalizes, the mix they mix will ratio ratio mix, this increase.

not performance, 'XX in with fiscal many year decline a volumes clients volumes, And earn Second certain not in such, did sharp corresponding did thresholds. meet incentives. as

over we will 'XX, a take and which the year recovers volume causes incentives, expect in special fiscal increase recovery. on year-over-year to unique clients year As these

as 'XX. of this could Finally, fiscal another to in, of revenue percent year you in 'XX during 'XX We renewed we Factoring that the as told XX% renewed with client a all fiscal currently year renewals, XX% XX.X% year have the we impact was the estimate to incentives for range. XX.X% big in likely year XX% gross year be our of renewals. volume fiscal another

As always we've and at point of this through you given range the the year you our sense best will learn update as we more.

are range. at end First lower be of quarter to the likely incentives the

circumstances demonstrated the imperatives declined short change, expenses operating and grew in investments priorities. our to the in with to X% and long-term in expenses 'XX, operating Non-GAAP ability half expenses, Moving X% balancing term first second. as we modulate year fiscal

indicated, bullish accordingly. is we'll scale. of growth levels required acquisitions business Connect BXB As about very ping, mid-teens its potential recent to our at our growth, value-added ram remain and is growth robust Visa the we Al sustaining our services Direct and investments continues invest

areas step a will Tokyo such the We few as these in up and Olympics. others investment all

plan to learn the the trajectory level about our we through year more of recovery. investment we result, a As modulating the increase as of

quarter to is Our grow line fiscal expenses quarter, At second second begin expense we in fiscal double-digit the with the digits last growth the to first plan the part due the second in expense expected the year. as in current mid-single to in Expenses trends. we 'XX pullbacks in to on point, from down Olympics. plan the in are half, this lap for year be half

year our However, you and the update plans as will needed we adjust progresses. as

reasons. million million to year to for $XXX 'XX expect expense in average primary $XXX quarter two We non-operating each fiscal

maturities. our our balances, low billion even two, our and in debt First, rates after December pay bond cash we negative interest and additional off on $X

XX% have U.S. XX.X% expected be early is impact the the taxes. rate 'XX year will in what fiscal to elections range. Our too tax our on to to predict is It

we year tax As progresses. is to be the always, expectations updates provide as any rate 'XX $XXX in around will our if year fiscal million. likely to spending Capital

the dividends to back return expect of our shareholders most cash of in form buybacks. and to flow free We

dividend of $X.XX, quarter impact the in we 'XX work first through we you Directors let increase be. we year what starting we've will in XXXX, In quarterly an the closes, will fiscal on agile of summary, and transaction the as of flat stay has our to done will know authorized Board Our is FY as fiscal flexible year Then pandemic. 'XX.

e-commerce from ahead heard Use are cases opportunity is lost. shift flows Al, for payment to and away proliferating the new you As accelerating. from and is cash The ramping.

Our value-added we services like business healthy continues optimistic We as our Day as to seems a our were February, a which grow at remain now clip. lifetime about in ago. Investor future, at

in invest to turn remains we to Mike. I'll and 'XX, in year continue With unchanged our fiscal and initiatives. Our key growth prioritize this back will strategy that,

Mike Milotich

Thank you, Vasant.

We little ensure for long will we time to in a run questions. order have enough

to we're started, that, get with ready Jordan. So


first Our Dan [Operator Mizuho. question Instructions] comes from Dolev from

Your line is open.

Dan Dolev

[technical highlight little you the money YellowPepper, you can you. like of for email taking in difficulty] more of question. color anything or my YellowPepper? with that you advantages Thank us mentioned terms give Thank you that could

Al Kelly

happen And through And and of money This YellowPepper at Latin that future quickly - platform continues YellowPepper. solutions services in we it these with, and them, throughout, it's is then services good flows value-added makes to on-ramp taking beyond that as were with give investor over to over really and a various as value-added allow think able payments an getting Latin that time, us capability will easier connecting been what by agnostic as the we're the have from then towards the connections we a gives America to accelerating being payments to world them, needs for path familiar they'll America. well any least clients that invest grow very both movement are new early services they of there. throughout to diversify, the And and and up to company going extend foreseeable going network we to look of core of working region. us accommodate we - various facilitate kinds an - players quite having software kinds sell like to YellowPepper we've a various with


question from comes Napoli from Blair. next William Our Bob

is line Your open.

Bob Napoli

kind - which and products hoping on Just was I whatever revenue if on Visa have a color of it more kind Direct? growing could could the break done reasonable the the of mix of out products you of services, with those to that the obviously little value-added are fastest by get

Al Kelly

thank question. Bob, Well, for you the

So Visa all, a of not new flow is first think evaluated. we Direct of

Bob Napoli

Sure. Okay.

Al Kelly

color. try little So get a let me to more

for like service So in revenue. have services solutions, and those online some driven processing environment About omni-channel from about that other has more X-D lot type by are about given that done quite as CyberSource, of looking what's gone particularly issuer people is fraud services, Secure other our done platform of X/X risk CardinalCommerce offering X/X at things are described debit, transactions. as of well and his then - well. kind people and with have split Vasant other X/X transactions the and where X.X X/X of that's remarks. And the of services at looking between value-added so and revenue services, happening value-added this obviously, are

then And services, and benefits, things So travel-related a are revenue, in are in marketing have volumes, revenue services package. like not tied analytics. card generally data service card as and offered to which that consulting benefits, you other have you

a are in are imagine and things there can other you accelerating. things that bit struggling So grouping, little that that are

but our and benefits services, card at sluggish So and as grow continuing analytics marketing are to travel-related obviously consulting pretty data are a robust very like things levels.

hopefully you color. you know, to want be I Vasant don't So add some whether anything that would give to that.

Vasant Prabhu


those business well, enhance processing debit merchant gateway we're our Al clearly most said e-commerce said as is and through CardinalCommerce is with CyberSource, pleased fraud wanting everybody Al which like the the is growth and to of business. know think very that be to it's omni-commerce the e-commerce services merchants. platform-based things CyberSource, then very well you authentication, as doing as the as, as the I growing every how best happen are ones services, to debit for have a the helpful certainly margins the - And

our platform-services right So from in standpoint, particularly a it now. high growth up those of show line data revenue most processing


comes next question Bank. Keane Our from from Bryan Deutsche

line open. Your is

Bryan Keane

obviously than cause continue then I and much to driven to up in does XX%, because and and especially the somewhat pickup you year, rate in by second with picking traditional towards to as internationally. growth or it is by continues of debit, strength we above growth next rates about of does much a e-comm just time that U.S. in stimulus comp, the the even get this want be half offset ask Thanks. at is difficult year? contact the next we the this credit so well impressive a the obviously, growth get by into How move higher just an these without maybe of

Al Kelly

say, carrier a certainly, there mostly are point just significant I cash debit, cash sale, Thanks, is think Bryan. I shift at that, a continues. of I'd a that what's being everyday where I drivers kind that of trend in people bit. about concerned Certainly, favors acceleration the with think see an of of number debit displacement categories of online a spend germs, purchases and which happening

think up stay that's going level. I a to fairly healthy

you are maybe would they very to uncertain I e-commerce. these money the there, of Thirdly, than maybe I world. table and been the credit online normal times, what spend would think room might on the come purchases it's office, home people helps of positive back let's hence being shopping expect people that's that and is reinforced dining past our we've economic that into if in momentum or the but bounce gotten Direct, question and I performance as no hope that, then Visa obviously, this more online on that many drive predict, that back. positive in But - world move prefer they debit learned quicker sitting travel move lot than in now face-to-face have a a lot comfortable is back out money their a there's will have to it think the start debit. as probably for gets some continue, back And to and discretionary And does, purchases well. see to borrow a, start will driver

a think these months debit drivers of them. I So seeing the some to staying six in have last what we're over power lot of

Vasant Prabhu

provided in on mean, couple weekly things. see you charts, we some trends. And it I of the the a Yes, I can add of

from of in believe I said shift in the think is the what's things, beneficiary biggest comments this my declining happening I about right, we markets. accelerated recovered remember down debit, growth in cash. I The are the I if e-commerce seeing from as which away in two that of XX% about to only April even X% September the has credit is exiting major

trends You been even see line recovery the impacted very same and debit steady. rate the present growing as been the without credit have It's has line credit steady. line, you're the at debit being of really card seeing by hold improved. the

the be debit. gone it Al has a payment So lot to Direct, to it as the new And most of said. cases, true and of fact been that, flows has driven enabling through Visa we by a are a new shift from there has also away cash

spending if it that next to sustained seen. - have of Now is that payments may be year been not but you stimulus have may spending the some clearly and clearly them remains that don't of some


comes Sanjay Sakhrani KBW. question next from Our from

Your line open. is

Sanjay Sakhrani

or back on to you And difficult come just going the I not extent paying may follow-up then that's trajectory what the exactly you - growth and such. renewed Do may an And travel versus you're the and about, as volumes but the guidance. you know does underway, the volume may feel that gave obviously you impact of I sort that Vasant, were Thanks. recovery then wanted what the where or out? like and there a you're talking that include months to from to guidance, to the numbers a incentive it isn't volumes of is lag support of that the happen. risk the clarification have means stimulus be a more into on winter

Vasant Prabhu

I'm fully I it. But to understood will second not try sure question. answer your

when uncertain I in and to things track, if we very say, one, spikes response closely, it are what's spending. On in spikes of does infections To guesses difficult infections. have is are to If two is we the going we government said, is on things the impose in government? shutdown, see as there first there the happen then the hazard times an the really live the less then keep response would and it response we largely its tracking and open the on it's then and impact. from what extent government to from restrictions of that effects to the to

by country, So to be response. different the region will it the governmental and country very linked both well as as by region rate infection

everywhere. people As changing, are it relates you travel I can't to mean saw, as travel, habits go

September growing open. September seeing and open are that fact more be to open October slowdown the the corridors after travel in in and and actually in why a corridors continue, are are travel is saw September travel, tends of which October, the And normally Caribbean are getting and October. continue schools you in into we travel personnel that So Mexico are

travel So in quite those of is, astute what travel corridors open people certain see where about corridor really see as gone they and can may you may up, moving terms travel to you into being start that have elsewhere.

very it make to difficult what's hard to about makes next. all going happen predictions it So any

we you the what to I As question exactly, shift far best had know fee in and give we as from expect the range we've already tried might factor lag, service can. sure we wasn't the your incentives cross-border, but everything right what we was, mix renewals now, question, to

goes We update year will you obviously give an as by. the


from comes question from Our El-Assal next Barclays. Ramsey

open. is line Your

Ramsey El-Assal

at just or and Al, have the just out levels, a negotiating of that in in agreement and have of there partnerships of all come quarter, incentives in incentive in any agreements the now? down you kind changed structured way performance-based how less impact prepared you're terms kind I'm of new the pandemic, might road an of lot the You or context this way on changes is wondering the remarks your the right called

Al Kelly

lot We say really will of been hasn't as a general, there change. I'd ramp - a

been similar. I they've think generally fairly that

having that The most how we're was I these thinks say and to think it we're last, of of a just in restructuring seven, where think sub-type everybody most sure trying through looking the but kind that long are are? you to years about deals most of wouldn't once radical think that not tweak Vasant contracts and we're deals a the really think to I century-type for how part, Sanjay, a kind duration of made know, duration ramping. to at any longer what these said, changes deals we're almost looking not I that but - there, here of we've conversation, that of here. five, certainly event I as and in last structure determine I for things certainly thinking the we're the


Our next from question Lisa comes Ellis MoffettNathanson. from

is line Your open.

Lisa Ellis

stronger that is than of elevated it My this very you. X.X% there to what's pay-off in that mean, talk business after seeing had long-term really starting Europe underlying bit question little about of Europe, about displacement. strong are a on going this cash are Can in I What effort trend you dynamics Europe, transaction. Europe? the see the invigorate Visa the some just the are Thank in been Europe is to pre-pandemic. you you growth quarter number a

Al Kelly

things. few got a say I'd Lisa,

scale of of Lydia up of commented to FinTech as record track think deals, of of Revolut are and funds it start-up to or FinTech with of earnings then good over on definitely build you just beginnings time but of time with my commented that and our going calls those First doing few simply into and to of a number And past in of seen that they of point I back that in and in in we this relationship terms a not deepening up made be believe others. I accounts, take out, I that, Turkey the businesses six higher to of because just the of that that you're all, a they of some Visa. quarters mind take the terms out five to the doing starting was that made movement but in over numbers in France the but ramp a take their seeing itself, beyond the time get we've these both if a are has existing mind really credentials show the they're going a they and to renewed think - think credentials terms go had in and those client that's to progress savings that comes factor pretty I repeat to last a Europe time shift-in either also ramp those comes to lot and remarks, real not yielding volume. of traction numbers, we I well, have on or relationship to mentioned I I take

that commented as in, open for banking else's good Europe, The other is a and particularly, thing, I success would be from our as Secure strength I earlier, our we're products. us value-added services, or to products in continues say some XD somebody selling Dan's having of question well our CardinalCommerce

where success we over the move one-time So quarters, think last of deal six plus this some that having think five of some our Lisa. their kind money see beginnings cards and into I announced or the again. been of saw we'll probably savings people the of we've yield lock-downs, high form Germany and you Today, both accounts, France these happens, going debit into what partial via

the volume news So not BXB driving across that's continent. positive obviously very


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

open. is Your line

Dan Perlin

I cross-border inter-Europe a just wanted notion ex of on drag to going is volume follow probably bit. backup going for to is again around the to

I'm to opportunities be lost loss you and pursuing, offset what profits. might to so specific a reconcile are revenue behind scenes that here going more bit some order maybe little understand, is trying in the the And to

a things and in large those you that opening as like that's lot of you profit So Are of I'm kind increased is regard. happening merchants. things? rates offset and opportunities. drop a prominently of authorization types for have that funnel rather the dollars lost e-commerce very some then able Thanks that's list And a of now thinking CyberSource result up to of more those than playing products how of cross-border

Vasant Prabhu

cases authorization non-travel business we in use big rates Yes, for that of scale. BXB revenue streams exciting that, groundwork critical cross-border priority, particular year lay growth very corridors clearly new that priority, new The Visa it's through used big focused all of and like well, highlighted all I to with that priority. be on and are growing 'XX activation are the cross-border can are a Direct big cards in YellowPepper business for those Al mean, increasing cross-border business increasing to remittances, for Connect, cross-border

that and necessarily not ramping, whole clients. ensure lot of that a the lot a of up signed platform have quite scale volume flows can The a be of consumer We is effort cross-border a will we're other range YellowPepper spending payments of and for for time use to bit cases. but

people So happening authorization we the are rates related more doing we're is of right sort and travel things willing excited transactions. that non-specifically to cases that variety are the there fraud improving cross-border the bread of reducing about all then that butter and and use a said, as stuff of would now very more approve cross-border you make


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

Your line is open.

Tien-Tsin Huang

there, how Europe the could more and in the if digital thinking other But as Al, about into open I'm banking dynamics? I guess, was can I'm thinking about banking win open and to your with curious that answer expand well. gear to Lisa's you another regions question Europe, shift I business given and you shift

Al Kelly

so certainly, I, Tien-Tsin. hope

We it. very are focused very, on

think delegate with we We've Europe. banks having mentioned, good in our we've mean, discussions We're I open I to the the I lots authentication user point check We've good also really to year, users on talked of really for about listing, feel in trust, help really been got banking delegated we've rate regulatory much wallets, things months the the have we've a got Visa past. better like trusted friction footing digital meet identify merchants which of FinTech's. Visa customer. experience customers will the the on which got in last issuers' which a reduces requirement to XX addition and which about out. allows in fund they really or our win at merchant authentication that

us have So gone as with potential to of are of that banking discussions being well and clients they these have downstream. to open people, very and are what a clients, supportive I viewing very deal lot think do who

that momentum it to to see you're our our and is good going in continue believe numbers. I So

Tien-Tsin Huang

pretty quick also is little talked more the a reward this curious, And Revolut, a guys the innovative Venmo pandemic, the cards mind. available you and perhaps? then Just follow-up area don't Venmo. have wins, that. you like might more an that including of focus of of about things in if that had some you you about here see bit could you of you'd the have side like I'm if of travel less become utility seeing thinking and Is some traditional during rewards are travel

Al Kelly

related at travel are looking spending their you've than I think, here things the I obviously, at like around back Well, seen are on their even activity dialing lot card and you think issuers cash States world on this point on the on more alternatives. And acquisition travel United in in co-brand. a back all

I term be So going that's near the the to think in case.

don't. a think or travel describe most experience. in though is of choice you a you think travel hassle is how it It And I cases. travel It's for as travel that for that it not consumers. which not happen just reopen. travel purposes, as that a so now I I can that I good having that right intensive is of shut to are It's even beside not returns, much optimistic to to all it, basically see well, be which

will lists knock of think the attention it people see will of and promoting see their more card, to off back travel-related co-brand come start bucket their wanting on the the or people benefits card well elements cards. time, I go family back the to world that and you'll as as see at et places to think travel and that I and friends back cetera, the paid

Vasant Prabhu

a to evidence the early are they and indication from than that opens year let's you out significant because know, one the We've is Americans Turkey of Dubai. of go. seen and based travel to say, parts cross-border place a corridor business it, open that's as they there demand did that's of the card that's couple that pent-up traveling have and example bright travel there realize A clearly cross-border up there one amount, maximum seems in because spots important that pickup, last shared of now our on is, they is note the the travel personal the of a some like focus anytime an world Turkey, of bulk from bulk more we we other are on of present can and by of

a into So we're UAE from the lot example. Europe travel seeing of for

is just seeing are to you very So demand of it is travel open I and lot travel. pent-up see that different what are will a which to start there but desire few open lot as pattern we're seem of corridor pre-COVID corridors, are you getting right when the now be a to


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

line open. Your is

Jason Kupferberg

able I know very long feels a the and growth on supporting agree for the to lot been some of might at front? that into I accelerated there share now Vasant, I so, And data COVID on mean, if months which BXB back catalyzing BXB plus you, six be time Visa. with I in Analyst pandemic, Day, is to time are ago. a we're it points wanted you It's see that

Al Kelly

Vasant running would So space in that credit. the you pretty I'll consumer see carded close volume is and add. commercial to start, where BXB say Jason I can

countries in out - credit network the the the Connect expand and trying for been, year looking next BXB XX out place the countries, and over up in up definitely to we've it's build I that next close the in as has heavily continued promote were has fairly line to growth been and BXB virtual to more we're the cards So and plus. the we're is digital capability hit going is and as to arena and take XX said said building to invest have spending to its continuing going invest line

people of their lots by really the employees investment no world our in around volume taken there's has been home. down at of but so this the impacted dollars working future, haven't from area, much building curtailing on the lots for all And and we spending question,

Vasant Prabhu

we card-based we're is Yes, side have somewhat and large side The the will travel lot I next we that to the continue the continues some about tell the nodes, related the BXB in large few very business, AR/AP hopefully, business. then the small nicely. ramping more be just We of new little be our BXB have card-based there On big clients interest. in don't seeing color a said component more you Connect, BXB still and And Al quarters. sluggish. side in medium-size to and we that a the one as big a part build business the mean business, that is recover can of and interest on - in

cases the figure is and that say any people there trying but out trying have out We wouldn't shift, are create way focused use to on how category that the we traction to to of remains value value, there. a very it create are figure I dramatic

again we'll more as tell So you things develop.


from Wolfe final Our Research. Darrin from comes question Peller

line Your is open.

Darrin Peller

this that's follow-up transactions from obviously your provide is you there then, been you market technology PIN make I similar fraud is first in and local the on and all, verify then both like I just comment guess uplift we've and your second you can of made of And 'XX. online - the investments. CMP all, incentives said also opinion. guys that things your seen the a have there than you or sure CyberSource offline what about true contactless with We've can solutions And I just quick and think kind saying just economic in other uplift of given handle Vasant, of more there. even think networks, - share

it fiscal incentives stays basically levels Are does all improve that - 'XX, guys. so I XX% not just in number. to mentioned is that think doesn't to You get that or in 'XX? fiscal October cross-border assume Thanks

Vasant Prabhu

second is happens cross-border happens. what right. anybody's guess, part mean What the I'll I take to first.

range So we XX.X% XX.X%. of you to gave a

X point down running We to a from X to have improvement. seen, point a from in where is let's XX% say, October improvement QX it's QX, QX,

through some we've So modest improvements assumed year. the

some improvement. no So there implied it's not in saying is is improvement that there modest

giving best a I you think it, way but range. that's the probably is range, we've the think it's hard to it about estimate, to best

you We goes as more first will that. And Al by. take I'll now and let question, the tell year then your

Al Kelly

it's for wasn't very good volume card-not-present, very, - case I So, in of us.

face-to- the in of on in Today has comes down it the - us I in that the opportunity world. still card-not-present up is world. and cash world card fraud at we issuers has - depressed it's dollar, I as an Investor to still authorization chip and the think on is, And could we because $X.XX online, by to to opportunity fraud picture. using face various earlier, products obviously, alluded It's in Card on that drive dollar driving Visa gives more services we As in to on every the Day, in said spent that card-not-present with as rates. real mean it simply $X.XX out somebody can migrated the fraud face-to-face, provide world, we work

face-to-face, it relative is rates, And are Darrin, obviously both contactless to cases that's something we'll cross-border was drive I increase was, clearly, said make, world continue more in think authorization cross-border. it authorization a rates to to progress make card-not-present. we to But the too, versus opportunity than there volume. real lower to and there. continue face-to-face real on out question in levels domestically and authorization card-not-present you and about

well, help a and I the buy card of I think represents who far transactions accelerate but market remarks much the how XX% will for the accelerate further they think on time has as you I particularly face-to-face think across in do is magnitude I first globe, file, which in of doing, my do - will said contactless and you been that maybe COVID just States are being the is. United and States behind, on card-not-present which gives U.S. pace think United excluding behind Click-to-Pay meant are they're one the the for well, as the I that help XX% logging though Click-to-Pay, that not they to guest. people are the

better build opportunity user a there help for Click-to-Pay experience to is that think I there. So real

in really remain the can certainly card-not-present we So what happen and bullish world.

Mike Milotich

I us would joining like for to you thank today.

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


you in Thank participation conference. for your today's

at time. disconnect this may You