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V Visa

Participants
Al Kelly Chairman and Chief Executive Officer
Vasant Prabhu Vice Chairman and Chief Financial Officer
Jennifer Como Investor Relations
Mike Milotich Investor Relations
Lisa Ellis MoffettNathanson
David Koning Baird
James Faucette Morgan Stanley
Sanjay Sakhrani KBW
Harshita Rawat Bernstein
Darrin Peller Wolfe Research
Bryan Keane Deutsche Bank
Trevor Williams Jefferies
Tien-Tsin Huang JPMorgan
Timothy Chiodo Credit Suisse
Ashwin Shirvaikar Citi
Call transcript
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Operator

Welcome to Visa's Fiscal Fourth Quarter and Full Year 2021 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 from Investor Relations, Ms. Mr. and Como Jennifer Miltec. Mike MS. may begin. you Como,

Jennifer Como

afternoon, Thanks, fiscal welcome Visa's And quarter Michelle. and Good fourth call. full to earnings everyone. year XXXX

containing us A section Visa's be our site Kelly, and Officer Joining has is replay being financial Financial Al will and the call slide website are 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 today 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 a 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 Form information Investor

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

Al Kelly

good economic you lingering global from of quarter. payments up and throughout a of everyone. validated delivered we about in this year-over-year as so, strategy thank the of QX points innovation QX the business results Visa's was resiliency payments pandemic. we Fiscal our rapid of growth the enable And Fourth-quarter backdrop quarter backdrop us afternoon, the XX% and XXXX the XXX% our volume much. continue very joining digital to XXXX, And movement thanks and and up the a despite against of quick results. pandemic globally. growth X.X In doing money strong of A summary uncertainty today. In and Jennifer, of for fourth COVID impacts demonstrated the drive

process year-over-year We QX excluding XX% global X up year-over-year. X -Europe, from up up XX% better $X.X a of XXX% volume, than points with were record and Cross-border a of transactions intra payments XXXX XX% also and total points of trillion. and volume was XXXX, QX set

revenues XX%. many year-over-year, I you for few non-GAAP pandemic. net wondering was we grew talking emerge too payments last over as $X.XX months, and ecosystem the Visa EPS head the the up what Our of and know from XX% a the you're And

So growth four to there's card usual key than more rather doing report still even the believe on payments, as than ahead I'm my consumer pandemic: we the that why about before today X. in positioned quarter, enormous X. these for the reasons better going broadly speak opportunity

our seamlessly network facilitate of accelerate for capability networks movement the players We enhance of the money continue flows. more and all to new to in penetration and ecosystem securely

Third, enable our the the diversifying clients in Visa's value-added while of growth. more services ecosystem, as payments volume. help driving much sophistication our and innovation scale business X. these leverage We helps and disruption which simultaneously and accelerate to

of me number global X, which amount to cash XX%, Visa credentials opportunity let In e-commerce XX increased cash. has monthly a with spend helped has has pandemic volume from dollar active withdrawn and further constant while debit payments. per last debit the In digitize of active start We in primarily are see So the grown both cards credential payments number debit strongly. XXXX, X%, basis. continue on grow the consumer months, volumes, that Cash to the the enormous

our renewed new X.X years, payments previous players in the up in per credential than example, to XX% monthly in more grew XX% active traditional contracts We've year-over-year. that After and for volume grown and by represented XXXX. versus on average active spend renewing credentials billion credentials we X both U.S., both For represented X% the client XX% XXXX. that contacts of

of X QX. X of just In of Merchants renewed in we few these as we including Bank America, issuers. Let and the issuers, a in XX And of deals those Bank North Asia-Pacific and XX China. highlight and top renewal Regions top portfolios. me renewed debit, consumer portfolios. PNC our China region, small into XX% issued renewed and prepaid acceptance issuance RBC the small In with credit prepaid Canada. also their in the consumer fueled to commercial at at the and credit prepaid commercial Square, Furthermore, growth. the respect last up of credit cards volume. more debit Visa to ventured million and credit and year, the merchant business have our their business debit debit, XX% small XX% and of payments like top have locations is more they a agreement credit north credit include businesses And of a fintechs have scaling. you more grown than merchant behind Robust, all XX We've players than of fintechs to locations. also globally. number growing credit, Visa transactions year-over-year. And face-to-face Fintechs to credentials, nearly when and million double pay Stripe debit XXX renewed are

double and cash. than we we Excluding the penetration. cards; XX% U.S., year quadruple XX years from X had now ago. U.S. more brings more with over a markets just with over tapping contact transactions ago XX% from than is what countries that We while penetration million with increased know digitizing other spending have XXX

our summarize, accelerate confident telecommunications future. as local To the ability infrastructure, us and Connect, in One access make innovation need the Visa innovate VisaNet any credentials, in to capabilities. opportunity, payments hardware. We for and an easier utilize recent investment specialized also payment Cloud, is clients enables centers, platforms to continue and for Visa's and growth eliminating feel it to and data to Cloud to which make via example partners acceptance, connect the consumer our about to that

lot global of new systems, complexity a of flows creates trillion. are in to our Payments ecosystem of infrastructure, for all Moving and a network nature, of the our The flows. while to movement is facilitate the seamlessly $XXX networks, continue penetration in world we local regulations money new enhance to accelerating all now which total very capabilities securely players in opportunity settlement trade. and

networks Visa networks networks, all coins build to cards programs billion is to such and more flexible and technology. including Our cases transactions to funds nearly network -- as Visa XXX across in move as In -- used fintechs. network directs processors, the sent point own received ACH enablers, the continue In and XXX is offers and nearly more in of the single to unique value it or XXX future, blockchain. have endpoints public stable alone, as competitor using enables cross-border a banks we global surpassing Direct 'XX, and the U.S. compared Visa out is FY Visa Direct. like Visa's clients acquirers, over connection capability help more has new domestically million RTPs X reach next

Visa on four for plan Our focuses key growth levers. Direct

case, existing disbursement globally. added PXP First use our is case another largest claims. An use surpassed nationwide this begin in use quarter trench PXP is programs XXXX; we insurance and to an cases. FY XXX and we distributing

Second, opportunity tuition cross-border robust eligible during and cross-border Jamaica, the we Western we The quarter, cards in and Colombia, want remittances odd cross-border fourth the Student added to will to soon Visa send, payments leveraging and for to capabilities capture other more. supplier for our payments. send countries. Thailand, followed Union's also pay expansion by a the plan be marketplaces, customers funds PXP we're for able U.S. Philippines,

include, fund deposits. vouchers, the managers XX brokerage in funding in Yardi lever distribute over Our the use tipping, live in Recent is quarter, grow to cases. scale raising, to security the area account we and the property rental third fourth space added examples airline for

right rapidly for scaled directed where Visa markets. but are in new scale acceleration. there more many Finally, conditions several market are markets, the

example, we For have a payrolls partnership in innovative adding are the cases strong PXP now use footprint like in to?swell. new launched solution Peru, and

we provider capture since financial we inclusion. to quadruple the $XX to than number trillion drive ahead on improve Visa have? opportunity. seeks our We providers Direct surface expect that In Globally, earned on have rapid XXXX. of are growth just platform on-demand the also market the and more scratching in years to wage access the short, Salary

BXB many utilizing Direct We examples our also partners have and of capabilities. Visa

their business This the plus through XXX,XXX will via cards. and that ability Direct customers to quarter pleased Visa Visa virtual BXB make we're offer payments BIM

payment into with JPMorgan's support agreement card pace We card will Credorax virtual in XXX for which transparency markets integrated clearing Europe commercial through global flows than their the incremental which through in initiatives for pleased available volume the money new also solutions, offers banks the Visa clients multilateral in also that launched These network. growth speed. and a include and and solution. bank pain have spur be of commercial include business a in Connect and drive time. for a Citi with new broadens We're yet wins over capabilities endpoints Visa's accounts Connect, BXB not with to more and operates been now participation distributed Visa for moving network Connect that a have existing partnership addresses to to settlement capabilities BXB for BXB Citi's points have technology cross-border, travel ledger

the Visa very role Connect we're excited expand about Citi facilitating to movement, and Given BXB this size of and money breadth in our the capability network.

banking movement. Open customer facilitating Whether account essential in the paid for reliable and banking or our open movement, also opportunities Visa of to can we provide for Tink. from to of data, for security, believe globally. of secure, our money data network platform offer networks. Looking our expand adoption be a account in money or creates accelerate a that continue We ahead, experiences. V of services leveraging Blockchains and innovation will Bank account to Together Europe banking plays networks. open clients expanded by value-added one-stop shop with partners can can Visa role valuable acquisition pending network a the it's

to on winning around have Our APIs continued and services innovation Crypto partnerships. settlement been capabilities our new key

nearly with in -- the volume capability already payment credentials, We there we're over platform X.X to billion issue have Visa and XX FYXX. of crypto capturing partners

be where we're reason simultaneously third COVID for our sophistication more value-added growth business and value. scale The more help is Visa's post clients and while services, driving positioned our diversifying even successful better

other adapt payments differentiate from network capabilities. up In X or which services in and XX% Visa's network XXXX. more our the or clients Our is and network our enhancing to XX% nearly of value-added clients use more, value-added our enable services ecosystem solutions XXXX, XX valuable deliver used XX% changing to and across rails,

and XX,XXX Let services me Cybersource have that highlight merchants. acquirer XXXX. new partners grown added a in XX significantly few

result Cybersource a growing over -- client grew broader called as as our base result, risk solution our Decision we're As and volume twice as XX%. payments a fast and Manager on

of X.X led enhance reduce to them tokens Visa token a XXX, and tokens manage Cloud We have merchant’s past have across XXXX issuers number the to to year X,XXX the over increase more than capabilities through doubled the X.X% helped billion in and screening fraud by a adept Manager intelligence and rates. reduction than fraud machine XXXX. XXXX in capabilities, and XX% artificial These Risk in authorizations utilize transactions approval in which billion and more $XX rate XX% learning Visa

have Since X% the of in quarterly averaged in grew approximately rates QX in and and approval our bags card-not-present cross-border our growth by rate XX% authentication, past services the efforts All in and year. authorization billion high drove also risk, began, teens $X Therefore, has volume. was the led revenue and additional FY optimization value-added increasing the to revenue nearly 'XX. pandemic in identity

in reason helps are we fourth present, is, help and ecosystem, fostering Visa. -- capabilities the partners the believe new than that for which have grow innovation them cases. innovation We enable great growth. past, we Visa's good the Disruptors accelerate can used as room future and the and about enable payments we we much that Finally, at we of scale. to that for disruptors enabling disruption good payments These

or ecosystem, winners many pick in our Given that role across potential losers don't well-positioned the growth outcomes. for we're we

they a an as they wallet. in cases example. of base a point Wallets tremendous digital and embedding their where of some a building Wallets acceptance. at seeking done job reach some many growth take Let's in them building are But have credentials a user Visa point are

X excellent cross-border can totaling payments. use Visa four So well example million as these portfolios pays Line send and receive an credentials the PXP anywhere X.X with as consumer across accepted, as launched co-brand is newer BNPL new Later quarter. we'll in Pay a that a in outcome. including or Now Buy similar have Thailand But we countries, the was fourth think example. a

a scale are But fraction disruptors. industries just While estimated volume are bringing billion. be there fast-growing, about XXX XXX total payment to the to we to of installments

by processor issuers the solution We in solutions XXXX to have largest with offer HSBC partners. network large flexible seamless our customer terms; to Malaysia, extend a network and our payment for credit in QX to partnerships option installment installments BNPL, Australia clients provide we as their a two-pronged with we The and volume, with Canada's Moneris, well volumes. offers in continue expand to ANZ a merchants their existing where Fintech as solution strategy ability to

in of virtual customers pay value-added BXB ways. We with consumer a cards majority with Visa as through the today. a revenue card through and partnered are their fintechs on We also payoffs number generate payments, of services. for The installments or cards installment

For to we're number individual believe used example, BNPL begin Individual and the companies platforms currently year, merchant. of by the model acceptance our globally, merchant take the to acceptance in X.X. X.X fintechs Visa already business believe Canada Visa partners and to merchant scaling deals, over by more fintechs leverage installments are to seeing we shape. the credentials evolve evolution with this difficulty data has We're to Eventually, overcome issue we last repay We than BNPL cutting XXX%. grown experiencing merchant. cards of

that brand quarter, Just at this global signed several expansion Florida deal scale accelerate into a markets.

X better before payments, growth network, capture opportunity the platforms, new by of it our revenue. than over the the growth. value-added of further and will scale as to flows our our and only a competitive I partner, and to consumer close, pandemic in that the return ahead So drive With next over we've of innovation, financial and opportunities in to years, Furthermore, believe the review to is to portion for services demonstrated the of history our Visa's willingness year. supported cross-border our offers compelling Visa turn made And and greater and and the over volumes positioned now it over capabilities, help successful. strong will we these Vasant business all also have you. our view -- to performance that, resilient Vasant, mean provide coming to QX a what Company, these becoming

Vasant Prabhu

Thank XXXX. some X% EPS -COVID second we In of first of recovery half you, was Fiscal non-GAAP lapping halves. COVID year was the half, revenues Al. we two impacts. very worst down declined year and certainly was and the different first XXXX a of lapped half, net the Good afternoon X%, underway, as XXXX pre the well a everyone. were In

net quarter result, strong a non-GAAP and expected XX%, by XX%. higher EPS net Fiscal's value-added As XX% Robust revenue with revenues than domestic were we services, U.S. up results better was grew cross-border up growth, fourth payment and trends. Investment EPS service been approximately gains volumes one-time from a faster current revenue on than volumes, in would Had equity net recognized anticipated revenues recovery year. from both and including EPS tax growth a credit in increased travel. expense XX%, higher, have quarter tax non-cash quarter's last Non-GAAP a GAAP QX. grew by we XX%. shift In as EPS debit volume fourth continued lower acceleration XX% rate debit, versus X.X in points volume spending. rate. revenue and to led Xpoint, payments well X.X% point of credit as dollar, global by XXXX, global the X improving strength was XX% Compared QX, payments up growth and with slowing approximately improving was rose XX% point. by constant net helped by Exchange a driven

from points, without volume third or by to at with economic Card-present was but dual-branded higher volumes XX% XX%, points points cash was quarter payments. the slowed payments. region drug with to excluding spending. much in XX% by XXXX, up Credit restaurants by and the China up robust across and XXXX benefit from impacted constant improved X about a spending. America acceleration XX:XX:XX] Debit strong over XX% the business dollar helped yet wins. our XX% payments closed over International digitization points XX% fueled was to spend highlights. from impact. small payments and level and spend minimal revenue XX% fuel volume few payments conversion, by domestic performance about X back quarter. and XX higher from improved strong food commercial improved X XX quarter. consumer third than points A points are to the QX, not shifted client impact consistent Latin travel, pandemic, total the some of was of growth from as very X X XXXX Card-not-present XXXX, remained at regional which the [inaudible benefit spending point XXXX, U.S. third highest stimulus to its and X driven levels. accelerated over XXXX, continue XX% China, volume up volume XX% without retail Excluding be card-present, XXXX

few weakest region quarter up XXXX, excluding Zealand, to recover to up QX, EMEA Europe, region, Tap instituted the QX. Direct client improved ticket remains the QX, penetration the and from Global Continental wins. XX% QX XX% with many started in has XX% have Visa from in restrictions from over to volume levels as fueled third to X markets due all India grew transactions strong US. Our points China. QX strong, remains XXXX and and in transactions increase the payments countries outbreak weeks. in X pay across down faster was process Japan, from performance the XXs in quarter Australia, up from past by with cash X% volume. Many XX% consistent fully sizes points than started from the from and New but XXXX recovered Singapore, with improving the improving digitization quarters. our Asia-Pacific previous consistent Europe including mostly XXXX, transactions severe to in normal COVID also return

while point Constant and as cross-border the travel new spending, travel, moderating nicely, ramping Across countries borders, but QX, recovery recovery XX% remittances, broader is e-commerce growth volume, Visa XX% driven at volumes, business in lapping transactions we from consistent with U.S. excluding excluding travel, XXXX payments first a X continued earned continue the from XXXX, PXP, open rates. pay their and in points continued started fiscal remains excluding dollar spike quarter, be as strong transactions Stimulus out. X such very quarter, QX. time. we're more to the third growth well as of from international Europe cross-border card-not-present hit access, XX declining wage within COVID-related is improvement very for strong. lapped of in the a that at marketplace volume, Direct which QX above volume XX strong when by skills This year May. Meanwhile, billion Cross-border the ended have as was

was boost XX risen versus QX excluding improved June, from the XX% in travel-related QX. XX% reminder, in primarily XXXX to intra to to cryptocurrency points It QX Cross-border in in saw a XX% spending As we purchases. XXXX -Europe of from from has September. April

travel versus In terms East, destinations restrictions. each in to and of such levels and points France air improved flights travel, similar XX Asia-Pacific spend as XXXX in improvements QX. at improving. by The by region the Canada, points in The spend QX spending between Middle in across is related Europe outbound largest border as Italy XXXX their versus relaxed indexing popular and is Europe. each were XX in-bound improved versus XX

closed remaining levels improve XX% travel XXXX, below of remained not meaningfully inbound our robust the both Latin quarter, remains Asia-Pacific up opened. mostly consistently Mexico there bookings we've than remains with America for the during XXXX of borders in seen and accelerate when spend QX, fourth levels. the pent outbound. to As U.S. as demand pandemic, and well strongest the in destination, travel is XX% more by did far over XXXX

year. Operating investments security XX% with and Europe reductions high-currency grew mix. year Personnel quick trusted returned than with Including per over A per volume. share, with the Visa's than we to XXnd, country a rate $X.XX, XX% as consistent benefit in gains, of from identity, with matter. and travel expenses revenue lower at a expenses price consulting of and COVID-related XX% nominal well in line excluding expectations. review average to value-added Client growth We QX by our and million A we as grew XX%, Data mix. transactions services authorized to cross-border common $X.XX XX% well XX% with of and data equity XX.X effects. gains some increase EPS third service was from services led XXX incentive resolution share. by due XX% services our capital consulting this as as excluding quarter revenues XX% the our and stock transaction improving led lower XX% of lapping, non-GAAP $XXX.XX small and to of a million year. total, were lapped services, quarter data XX%, point recorded grew basis Latin GAAP fourth EPS now In performance investment shareholders underperformance growth modifications. by spend to last XX% lapping processing quarter of unfavorable revenue bought non-GAAP up last International America as as due $X.XX, payments partially On line by to primarily nominal adjustments cross-border spending up accelerated was Marketing million. in of worth initiatives. the expectations. in Board quarter. We also in was up XX.X% our last an dividend results, Class the October The for quarterly volatility stepped tax non-GAAP, of volume Directors X.X in also professional from grew we gross $XX.X the and invest in and grew by non-operating tax XX.X% XX over strong continue points of expense small billion of billion our lift QX dividend shares is XXX U.S. X.X quarter. from line and Other helped growth increase in expected quarterly in Moving in for volumes, revenues was pricing grew into regional geographies, revenues in unfavorable with certain X a impact financial driven offset benefits. fewer

$X.X Class and X.X A revenues of shareholders up full-year, average in stock the and billion billion. to an of non-GAAP capital an was $XXX.XX shares net paying of dividend XX.X EPS return For billion at XX%, common of for price XX% by the repurchasing $X.XX million by increased XX.X

weeks the at with October. year X the volume, and XXXX, me with September within on XX% XX% about discuss of about transactions were XXXX. a volume was through up Europe transactions XXXX. Cross-border first ahead, we share XX% credit excluding about consistent payments let U.S. XX% performance at Process Before debit QX basis X September. spending X which XX% down was constant X non-travel of compared versus up from of to dollar XXXX and points up Travel-related improved and from XX% is from Card-not-present XXXX, points from X to X about points the points was XXXX. quarter fourth September points XX% XXXX, September.

Fiscal been Looking business the XXXX, Year recovery X track to ahead to our X has past on for a quarters.

globally. to factors The seen. if remains of recovering many Cross-border with even -- ending the openings. full on but be However, we stimulus stay pace not cross-border still to and well Debit in-store is support below returns. payments border impact peak recovery outperformed back the programs of levels travel project to depend well, we're the normal are yet and and on resilient credit and e-commerce of There consider shopping as recovers recovery. trajectory

and rates degree remained reopened a to the of variants domestically the not timing The in and cross-border still with Asia, rest Most vaccination has of travel in us key the Asia are importantly, across low both the of variable. large reopening is world parts key for COVID globe. countries has.

to trajectory X is the improved, great. normalcy for these casting factors of return remains while quarters With the out, Visibility, backdrop still difficult. the as not

best practice 'XX. you continue our year we providing will business and that of For a in fiscal the have one past been the at quarter time sense quarters, we few

combined investment is to comparable range continuing quarter a Assuming line low first rates in be the current in through XXX million trends grow year, XX.X% range, quarter you growth revenue XX% expenses of fourth the be are to as XX% high a mid-teens. with expect net with in revenue sustained percent leads XX% last incentives are the teens. fiscal Sustained Client to to XXX year to Non-operating likely and range. in operating December, 'XX. would the expected to of to in tax gross spending the in expense

recovery, out your mentioned. for all we I dependent challenge, factors we in assumptions are Looking quarters It as greatest is for poses order will a cross-border share growth assumptions other the the these growth, as of to pace be purposes. revenue projecting for making function just the on the of travel helpful, the planning well a internal variables. In significantly

domestic no lockdowns. and COVID-related were transactions, volumes For assuming from disruptions

trajectory and currently process such, Cross-border assume XX that to payments to the recovery assume summer As 'XX XXXX. steadily Fiscal levels XXXX that volume travel, XXXX We the Year intact by transactions Fiscal underway to from XX XXXX. through climate around 'XX. we the we index in recovery stays in reach underway assume continue of around through Year September

We also continues. assume in the strong growth cross-border e-commerce

We growth teens. flows in and expect the high value-added new services

These incentive expect basis over this each increased benefit in deals assumptions end to Fiscal partially by In mid-teens rate renewals. X.X of by of for growth from travel Year Fiscal result to offset Fiscal to impact. We the range for the revenue XX -COVID, reductions recover; of points net client continues to incentives due including the to Year 'XX XX% 'XX, cross-border Year revenue high XX% revenues mix percentage improvement we as new percent strengthening of the due point year the a and expect to in dollar. COVID consistent we the as lapping gross of Pre XXX to exchange had drag impact Fiscal from year, with between level. fourth 'XX, quarter, Year 'XX

Year quarter we Fiscal in 'XX. in year, moderate the First the the growth as lap recovery teens through will high

planning assumptions for said, internal purposes. As our are these I

the at provide outlook for continue for Fiscal one to a We quarter will our time business Year 'XX.

lines investment grow higher operating in marketing the P&L, up expenses 'XX the to low-teens In terms across of we as sustained the lay step fiscal foundation the we for post-COVID. growth in to We're business already increased elements of other expect of all year investment. X

functionality, to to and reliability. invest continue heavily enhance will platforms our flexibility, We in technology security,

half high the in Expense the Non-operating value-added moderate will second new disruptors. XX% quarter, half have utilize the expense our to XX.X% in Currencycloud, higher None also growth be be to each scale. to money drive investment these help sustain them in And Fiscal of stay Visa add the the is choice in in-market or revenue we of year. flows and XXX rate to to And innovators and be tinker of we of assumptions is to help close non-GAAP invest the to not in EPS. all in new will to 'XX. spending our which and turn, growth clients first expect tax We business. network of services include resources a material our resumption our year ranges will half range. movement. Fiscal for innovative They we 'XX capabilities. for continue lap will and fiscal expected We Year in the first We Year the the remains our XXX innovators growth. the and million to in as expected enabled we

supporting continued value-added network our new as our We alternative have expand business. services, the cases to the than clients to flows more of our differentiation, flexibility of enhance money in A functionality growth value new-generation and saw, the our can. substantially movement create we and use as fintechs driving for well networks

limited any create network increases of closed value more believe networks network loop all for geographically which network. participants substantially can our or strategy we than loans, Our

on a of flows value-added Q&A. growth it. hand Year acceleration. at newer we us, ahead we business, 'XX have As and recovering travel, I'll Mike to services good opportunity growth resilient and With ended momentum, it over XXx our we cross-border engine capture are e-commerce to the dividend Fiscal and Investor said a driving that, credit high-growth, and further Day, well-positioned new We

Mike Milotich

Michelle. Vasant. you to We're Thank questions, ready take

Operator

you [Operator Instructions] from you. MoffettNathanson, Thank go Lisa may ahead. Ellis

Lisa Ellis

on on Al, Visa's your up number X taking was networks. related to to that Good afternoon. follow for I Thanks wanted network my of list question.

Visa volume as and as open Visa as new actually services. negative one that banking you you. from from a value-added you Thank view for so because banking it elaborate it flows Visa often how away highlighted area a enables on shift point Can You banking? just open open debit. can positive for benefits and because perceived, that It's this

Al Kelly

into about jumping other We certainly best its there think are threat. of people But like. kind ecosystem where like what first approach stages. for we transactions, a that think I by of Look, lend know if are one routing than Lisa. money transactions. A get the nice just to hard security, and it When middle of will one level. fraud once dispute that is by of a lot that awful will as network moved things the is which the you, the more it's we A different people to transactions it's in about themselves open the at you Thank protections speed. There banking determine resolution, it's are much are instantaneously the an But help is as -- to know transactions of that's provided can and back elements that many early appreciate it, is awfully moved, all believe

services might to also really different We at go that a route with is Tink we to that we opportunity as even think by transactions potentially value-added network. are right the we an provide and getting learn opportunity involved -- on have there over and think

So leaning say, to might about be will the incremental, you to look move these to Lisa, that but line rail, going the learn influence and it be bottom by of can happening are we're or see I in, sure we as transactions transactions. is to it value-added some could that what's capabilities off at that what we we're our off able going provide services the other and more able various to also way would normal and make

Operator

Thank you.

Al Kelly

you. Thank

Operator

sir. may ahead, Baird, from go Koning David you

David Koning

outpacing? Oh, as but the thanks, just as part allowing bit. X the look stuff little just U.S. over discuss that, all generated grew the is know a last at years, X last the of volumes. or of A, world I every the a was we yeah. and U.S. the the I the year, faster I year next that's noticed of thing kind happened same does Maybe new US, growth, COVID or fiscal in fintechs that B, of that creating volumes lift some and looked than rest Hey, that reverse, XX guys. even years. years One

Al Kelly

David; of I certainly the fintechs. the It's and some it's of a combination Well, neobanks things. think of is explosion

helped the had markets spark other than has to I least certainly it the e-commerce more remarks, I point at growth Direct that much in also been the way also that is his other U.S. pandemic than of capabilities. is our Visa really besides say all in some adjusted to even that prior the somewhat though well. U.S. in those as and you're saying Although think in around the might developed mature platform markets -- advanced that more would the alluded world, more was quickly have. And much

cash markets are said, in COVID As us towards business do all March upon of that we XXXX. as in we in we which to and invest work. want the territories and All saw rapid to a out digitization globe setting we move around our grow set

than saw you mean, the more the growth XX future the still as happy result been I U.S. our very was back International to Latin U.S., next volumes Asia-Pacific, around U.S. prior the which to is the pandemic. are look way grow, the X And very, as I hard quarters. have do in world. of expect I this to growth and both nice and growth to CEMEA as quarter, strong as very really of in business hit the held really was but years, in grow by at the very, a by over expect I good restrictions continue think lockdowns in America the quarter healthy had but We I continue a the to

Vasant Prabhu

not largely low-single-digit penetrated about we Asia, the now volume are all things which our outside thing as -- add payments at as XX% other because said earlier, said comments, they that Al back international U.S. of might still said ahead, held Al thing I is the One levels because to that are you payments a open. look is ahead, is the almost we think XX% one look The contactless I growing as even right levels, only on his mean, already little is

off to we in Pay the contributor U.S., point-of-sale. take a meaningful So beginning the just the to growth. that know much allows capture to that and And of us transactions transactions engine of that's is at to U.S. larger Tap will growth also cash digitizes still a and be given a share the that size

David Koning

Great. guys. Thanks,

Operator

Thank you. Faucette James Morgan from Stanley.

You sir. may ahead, go

James Faucette

of provide the want comments much. in to think benefit expanding this a you a see there, advantages if those get that that you way think the relates I and how you Later little what avenue for Thank Buy transactions like Pay that I very will a acceptance Thank Visa? very it but as you bit little more that the go Now, a you conceptually much. to Visa. and made growth of that will talk to bit? you you idea back like as provide can of the color Can how one evolves I of and growth in that, look

Al Kelly

short-term, use or of the James, cards the in we're virtual to many, whether or debit various and many think seeing actually us these credit players I installments. our card credentials, off use they're pay

And it's point they wall. up bring is up a looks somewhat ago. of that so the us. And you where up don't was hard that to years And loop -- transactions. customers. scale, end choice level They I add came hard of one we're ways, what just capability; very four were to end to wall your X getting end is can hitting hitting for we're a a depth close The it's instead to transaction, in making BNPL of good closed getting it Wallets certainly many that's

what so think credentials going that I become have issue that Visa is will players the, within we'll installments issuers their happen will embedded who value BNPL itself. proposition is for to product the And

can very to quickly having XXX in remarks. scale very, they merchants immediately my I referenced that So by access the therefore million that

and going when to referring X.X. BNPL And I'm what so that's what I believe to say based that's I happen on history is

James Faucette

Kelly. great, Al. Thanks, That's

Operator

from go sir. ahead, Sakhrani KBW, may you Sanjay you. Thank

Sanjay Sakhrani

Thanks.

So should are on you trajectory maybe catalyst of you guys. you the pretty big the terms that guys expectations. perspectives you curious be I'm And inside reopening if any in U.S. Thanks. giving your just assumed anything for border of a what's bookings the seeing outlined. that's

Vasant Prabhu

weaker Asia. a inbound the better quite any revenues other for of -- travel - reason that Latin quite inbound the is U.S. than been the it largely Europe. border, And other U.S. as it U.S. much international has the improved bit not region being into the volumes. Asia, the have has say And but -- than U.S. the maybe fact been which the international inbound Lots America, of open. for quite of to to to than U.S. restricted The the referred have still and regions, strong it's citizens as inbound travel because in is is CEMEA Ex I'd grown

travel, a It travel from are end mix. fiscal to we it is at there to that's Canada, from be a benefited the there In clearly in of travels to as Europe So incorporated will is year we so it's what levels higher-yielding upside the permitted. It clear said is 'XX. there. Cross-border hard the cross-border to assuming views predict I our for general, corridor, improve. is mean, and how of the from going go

You of would part have to the all and to that's equation. assume improvement the U.S. inbounds

Mike Milotich

question. Next

Operator

Rawat Harshita you. Thank from Bernstein.

ahead. go may You

Harshita Rawat

up try question. disruptors Visa. comments your for Thanks I as wanted my And Hi, afternoon. for on enabling and follow taking could good to they

pay of seeing. that you're you term? super digital constraints, around now As world, cost networks And wallets, also newest in Do use Visa risk them at about issuers banking later the we're the already they mix account-to-account you if talked terms credentials two-sided seeing becoming funding of this Thanks. that buy payments rise or open think apps. pose they of something longer

Al Kelly

that helpful them. the we and of assume to Again, be on new has assume ecosystem, my additive they to always been these we can we be that view all players can

leaned have over very, have these the with of XX all the reasons position very in capability into from And of right many why we them where now we It's credentials. of we the crypto one them players these the have of we lean And because early. partnerships and are beginning. already issuing so we in had players new all right

help will players digitize away these continue of money some to and cash. think I from payments take

types all is I for a think bill A. to pay but purposes some will A transactions transactions that today, of lot extremely regular of A, it's that A likely A A to be there's to

we're sure. really from actually better processing if bring tool other with not net. there's capabilities in It's our we in and that of but we're said, that to new far out to position our box And Network services buy to overall, bigger of or on solutions think leaning providing transaction working don't the players. in have I'm possibility of that the we So value-added the that the party. of these a the transaction deal, still

that lean I'm how So of into best us to place play put see, optimistic out, to be successful. this have but we'll to taking, the is position all the which it's going to to in going we're all is that

Vasant Prabhu

them our go it movement can players. money Whether account-to-account, wherever and we with the one to security, on of is and the we provide meet the effect, maybe can. to to any journey providers, they there with that it of account-to-card, to it's expect journey all do which In we networks brings entire the other rails, And of remittance is it them not way can network the part the point about things allow trust it them flexibility, some and approach fundamentally for to on you means. B. We card-to-account, a be with solutions from money Visa, capabilities. dispute which we strategy all how The cross-border do brand but get the we are rails, those may A variety told go. on point all people easy we've Our their from connection get money to get your make resolution, needs reliability, you our

providing solution not just rails. solutions, about So -- fundamentally, about all providing about it's and

Harshita Rawat

Thanks.

Operator

from Research. Darrin Thank Wolfe Peller you.

You may go ahead.

Darrin Peller

stronger, XX% question, if XX with into probably cross-border we would just e-com the what on see just these And in and When look, obviously would 'XX, say qualitative travel, terms even curious of most outlook medium Thanks, your to guys. what long think macro acceleration higher being standing look versus to you debit be only understanding term. than positives but can you - It's of expect you two strong. trends, you then when on the first of you pre structurally structural try you'd sustainable in about touch kind assumptions? sided on Hey. -pandemic an areas what seen I build not. a conservatism about it the 'XX the were services other with you've is the at

Vasant Prabhu

I think first the question.

First.

And So sustainable, of because the payments we've that a in globally. happened healthy. changes digital gateway almost have debit, -- the terms first seen is driver is digitization that cash use. engine its is sustained of are consumers big structural that to extremely that And that clearly debit growth debit the has

we back and to card Direct Visa have there's Even come been reopening seen, bit by happen where quite a similar present strength resilience as and statements debit helped too. go

the and So all digitization to people of engine, forms used have digital emerging because indications formed gotten cash payment. being that are in especially using habits is are markets, off taken really

even extremely e-commerce of has too has things well think with cross-border -- to resilience the quite and there's has card-present you people can is Many have e-commerce used using past And a doing been Card-not-present there our see held decent there's resilient. held as if has the to charts e-commerce if few that, up. press remarkably been at thing bit how you of Cross-border e-commerce. evidence seen gotten up. quarters. The have send And look we We've bit there. out categories, release, biggest resilient. see you Again, in a new recovery we quite resilience has pretty So normalize. to e-commerce. the been shift as started

which saw If as at is spending is currencies, back in of second because XXXs. the And was in back. up rate. as it quarter card prior it's travel held it, XXXs cross-border its back. We the crypto even its very spike last hefty it growth has a even quarter, And but growth presence compared is to coming as the coming into look you indexing

the held X structural value-added past up have you of quite well bit resilience. Once have a those changes extremely look pandemic. through shown services those our So

new quarters been services the X past If high extremely the in it's the at And high to you the growth growth flows been We're X next our pandemic, value-added look over in our high expecting have average when too. had teens. tier. businesses teen’s we

all growth become quite engines a a a they're as of If have for great new faster core two pandemic. And our larger through lays the those way clearly growing of bit that our the larger consumer So and foundation business. business. payments resilience shown part they future the than

mix. that's they because So a larger growth of higher our part are structurally rate

Operator

sir. may you Bryan from go ahead, Keane Deutsche Bank,

Bryan Keane

to on ACH Visa Hi. that Good Al, have your and peers Direct. more the Visa rely of rails strategy decided not to and afternoon. decided take some has buy

versus needing you on So your latest you rails own the versus have give ACH was Visa what stacks to on us I thoughts hoping up Direct. just guys it not and could competitively how

Al Kelly

very, gives a very or and our what tell we're rails, spend differentiator. at to strategies. RTP the and net reach is And we We want -- and utilizing services VisaNet. scale. operating BXB platform, network to around as or our Visa whether our think It in to around funds the that sender allows they -- our cop believe much anybody it's there's what believe mile destination Well, incredible available to the RTP we -- core us network to and of capability whether that is our provide endpoints the else. us is world ACH order or we a value-added an offers great enabler and a first the to they're time that reach be us to we have world be can through leverage that so where other to of traffic last Bryan, facilitator places and because Connect, is, view Visa level beyond using that on is money for to us we And we the Visa its or are Direct successful Direct in ACH and think it's operate unprecedented don't them us operate our network networks an

had various we've in I and capabilities So success that the the remarks. great cases through in my to commercializing use referred

transparency and to continuing the good seamlessly is move invest in where to we So invest capabilities to is and there smart funds thing do. great the we think economics, take with place the to

Vasant Prabhu

clear perhaps to; try just are might banks the owned up a ACH bank central the misconception in consortiums, by the around question you Most I maybe world. what asked. rails

banks. They in over. And rails to competitor cases, -- use of you're You operating always the RTP the referring are the rail. the in owned essential -- as opens that's to a the be then rate. I by then referring some might and regulated business rails think building it's handing everybody bank are the to them rails by RTP which and way to don't rail, they said consortiums, typically about the I own you're they talking if The

So they're In best open competitive be referring them. does knowledge them cases, proprietary operate to They They're have, and return including my the them to move own to the opportunity in the rails to not rails. cases, just building RTP business business of of for anywhere. concluded on intelligence the we is the some you're and value-added we everybody rails hard is a as us. build not they some in adding at And and business. business rails business the that that's in. looked these these choose the it rails not and business, and to And building of of these capability good that using attractive we through an

Bryan Keane

Thanks it. for clarification. the Got

Operator

Thank ahead, may Williams from go you. you Trevor Jefferies, sir.

Trevor Williams

wanted a a the quarter, from I taking to surprised few know cross-border. yields in in little a despite moving data question. ticked in this ask down on but few good quarter processing. see for improvement there, percent was I the Hey, to by afternoon. there those Thanks are pieces the September

Vasant’s So XX. but there of as the it country we get I to just just a XQ some or variables be think helpful sense think to was it'd look sounds like from there and I what main mix, comments,

Just you rolling should much thanks. just how benefit next with pricing with the expectation mean, we year? that on XXXX that, embedded any if the can travel levels, like there's year be yield guys about thinking line next back towards that keeps have working And I that

Vasant Prabhu

impact. yield any was there sure not I'm

and look XX% revenues. all, quarter. this should no data on I or just volumes did are right? both in revenue it line -- something So net and revenues first the in the processing in XX% was with there's lag, you believe it And volumes at the quarter. line, move of volumes If

So in line. they moved

So wasn't any yield. really really in there change

up. from the the it and the therefore, relatively the recovering below from clearly, clearly quarter and cross-border, the going after stable. were was, short it fine and to on relatively mix There unusual business where another, confusion, yields impacted be nothing there's yields have helping answer unusual yields there. cross-border by call, shifting nothing any Mike and But Now, there. is, mix the could away my was would if the yields. and I'm speaking, Jennifer are sure the there is But still clear been improving one just was

Trevor Williams

Okay. Thanks.

Operator

you Thank Huang Tien-Tsin JPMorgan. from

sir. ahead, go may You

Tien Tsin Huang

bigger for Thank internal 'XX, late, as ask to near-term just this and thinking on. side cross-border you want excited that recovering, should points together about you I initiatives with budget and initiatives [Indiscernible] [Indiscernible] so much. what year? most products getting X we been products you or put from be aside are picture about focused your I know about you the just lead growth investments fiscal

Al Kelly

take business Tsin. now. last very Look, respond as of quarters, I -- in advancing --I'm feel I X know - the recovery with go I'll is Tien shape you each well, the the think more about there's seen we've think right the I good way and Vasant that, or X

to sustain. I positioned think stay think to response the few ago, in going questions e-commerce but a is is to strong, consumer payments I question,

shift America Pay more to a to of places acceptance Latin is throughout grow see cash see benefits sustain. to Tap the think in of region. I from and our we're and to like away starting that We're some PV footprint going to of starting

We've we've remain continuing customer consumer a good partners that. talked really commented And world on to office very gotten value see people and a got the wins think to to Direct. their feel terms most and work space. about think growing existing of starts think travel return, points, and priority will for issuing revenue in services bunch help the and BXB I with flows 'XX to as I I'm start return So good payments the our I advances credentials, high to continue I of traction for our still Visa butter getting and and of engagement And very, our lot about and Fiscal And a that's Fiscal acceptance bread going in Company and what on services. a out is and growing on And flows 'XX. us. other we've I new new very in value-added value-added streams -- base two think the into

business short got think we've pull. to I a like and the in So fact more diverse that model I leverage more

looks want more, we still But more we want as flags payments are Of bullish enter Fiscal all-in-all, nascent. continue I'm business a to little quite is bit on to the where to how to and movements anything? 'XX. course, plant Vasant, money the geographies and you add business

Vasant Prabhu

use Sure money we substantially and expanded is have cases then services going. offer. just the the to broad serve. sort we of we investment is give you a The I team sense of the where mean, all

what our getting that Every are and flexible. so And adds significantly more to flexible functionality. continue means make we more is more network Add investing capability. more is network day, to our

are clients. points. many our We to of of and more And services there now new substantially types sell are to acceptance types issuers new

on So significantly boots clients. ground increasing the to the number closest the of our sort of

So them, ecosystem. these incorporate into business, to in to new their bring also these the want ground to our clients our there's to into if make call of a fintechs types services big the easily clients closest investment in and you innovators all

our broadening is also of dimension third The brand.

seen You've positioning. new our brand

about missed watched of not you Visa It future the payments. It's it. have reflects Olympics, have is. where consumer the couldn't you just If

that sure gets making in investment message an clearly there's So that across.

for geographies, leader enabling the in broadly repositioning money cases, new new the new and brand whole movement. clients, So speaking, U.S. essentially it's

Tien Tsin Huang

both update. Thank the you for

Operator

Timothy Chiodo Suisse, Credit go from you ahead. may

Timothy Chiodo

Thanks how a of, this card-based bank-based question, the to to you the of speed course, are associated bit to the work some of and to etc. have, with this bank-based account mentioned in a with terms is of processes payment but protections something lot out Visa consumer then Generally make broadly little the are you And there for they globally. types more terms a many of about and speaking, that methods process, to industry help can account what taking bit out those that potentially do transactions. an just could charge-backs there talk follow-up add question. of earlier in I'll methods Maybe protections, terms any? of if little some account-to-account in our the payment of scheme, protections, security alludes

Al Kelly

replacement for of get protections that best And and or a protections zero to I or that that of run A particularly there's Tink. have AXA we fraud, be for that profile the as and into starting money you try the has protections I'm owning reasons shirt AXA as for well why is help a my blue about Well, it think a the And in back. AXA on see our you consumers obviously into important. will fraud that banking. of those to a sure to don't tend one ecosystem to network versus those open are for medium on for we're protection could you advances biggest To are options that provide those think to protections get about we have excited knowledge, the get think Tim, and of of. your profile the really of to are us we'll liable if today one, Visa. offer that We'll aware transactions behind either or consumers which the open stand deeper transactions different that step way red very kinds on thereof I you like just Europe, any of large and a not obviously ground the be we some see get consumer for banking, lack People charge-back whether think protections making order

Timothy Chiodo

context. that appreciate so you really I Al. Excellent. much Thank

Mike Milotich

last question for Michelle time have one We

Operator

Thank you.

from Shirvaikar Ashwin, Citi.

ahead, go may You sir.

Ashwin Shirvaikar

you. Thank

lines think I I in unpack and versus it growth debit mentioned of the parts. along the of comments higher versus post-COVID some So less credit than in mean, was U.S. your you sustained non-U.S. this

is margin like structures. structure was looks what So the helpful, the quite that question my revenue as

steps and what First historically. then normalized possibly beyond was up

Vasant Prabhu

the average view as we it significant. operating is are discussed we've on at Looking the said is we revenues not and to invest to our based takes as then grow the which And margins that. which opportunities and available our before, -- outcome objective. an do for general what that Company, an goal Margins we've are volumes

have margins. Our the have marginal cost to marginal business tend structure, services costs. a fixed comes low does a high good businesses Value-added transaction

given infrastructure our does payments flows can business. and flows business and businesses come But have good good different. new margin. leverages, very much than different The very are a businesses margins yields with it's have margins. that the New scale it Yields core

So from the saw nice improvement this in COVID era. you margins had to year. We what happened drop we the a had

same don't mean, So we vastly see margin net-net, the perspective anything still factors. different I driven from future, it the will a be in by

outcome, an As objective. it's an I said, not

Ashwin Shirvaikar

Understood. Thank you.

Mike Milotich

Well, today. thank for everyone you, joining us

Jennifer again to and and questions, you. additional have great feel we're a thanks to free happy myself for If And have to you reach out help evening.

Operator

Thank you. This concludes today's conference.

disconnect may time. this You at