Visa (V) 28 Jan 222022 Q1 Earnings call transcript

Welcome to Visa's Fiscal First Quarter 2022 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 Milotich. Mike Ms. may begin. you Como,

afternoon, Thanks, fiscal welcome Visa's and quarter Jordan. XXXX Good first earnings to everyone, call.

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

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

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

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

you, and good much very thanks Amidst was us. resulting financial thank this Visa's everybody, to quarter pandemic. joining the uncertainty for from strong. and performance ongoing afternoon COVID Jennifer,

two I'm leave want on up last revenues and the rest And card to up by first year-over-year. to EPS future. net credentials payment XX%. to were details one XX% ago. billion, for mark used we in billion times was our years I transaction going In increased Non-GAAP Visa the as Our crossed the performance cards time we And over also up in to million focus the hour year. QX, record quarter. was XX of Vasant XX% financial per $X.X credentials. the $X.XX, in our transactions from XX% grew driven volumes, the history, $XX

pay. global These Many years, are current positioned them network flows the As Pay wallets Now, and crypto our for pre-COVID we services. we and payments, including to Later, opportunities AXA, well payments, and driven unique trends of represent new consumer new ways scale. revenue utilize strength we coming expect growth our levers to ahead, over help Visa, value-added to RTP, look Buy strategic and by grow accelerated versus where in three are enabling extraordinarily

Let we X% is volumes debit growth payments. opportunity cash said me In payment talking by start Investor Visa The last XX%. displace our saw about Day, QX, $XX to was and while At consumer volumes it cash our enormous. check we trillion. debit at grew

a of grows cash reality, consumption when at expenditure look and the a opportunity XX% When of we at assume industry-wide decades. you consumption the penetration ending annually, XX X% global of grew cash in While personal cash digital personal global is reached for XXXX. expenditure at certainly if check several CAGR displacement it X% ahead, over years

in there credentials. volume more example, than a America, payments Visa cash For Latin was on until few quarters volume ago,

XX% this In now growing the fact, and volume, cash a past X.X past is shift year, quarter. the payments volume even nearly in Latin with total has been XX% there point of in America

the acceptance XX%. XX% expanded have credentials grown past almost We Latin locations we've over XX.X by America and to locations, in million in year

million in as using historic X providers Banco The country. between largest they with in issuing X ecosystem. the cash credentials eight-year over to over an digital key wallet Naranja Brazil, with growing prepaid is remains issuers we the Visa to in easier of agreement on-ramps levels than a that never Brazil value Wallet years. an And rapidly signed one largest country's rapidly two Santander with market volume quarters. million XP, growth deal with a X banks quarter, have up one X.Xx a credentials the recently This and Argentinian to growth customers. with our Chile, signed recent see is open-loop digitizing the more have last issued been network we been debit Visa payments access. of cards in the

This to to crypto has of Bank, our where the to We're bank accounts XX issue PayPay the Japan platforms which outside M-PESA Safaricom, African renewed enables crypto users is Kenya, one for connectivity and XX M-PESA wallets also fiat over users. users. wallet PayPay digital our with partnership credentials. We providing XX economies. with debit Visa and million fastest-growing we that million have X There quarter, players million markets with operator recently partnered customers. with of of has creating already in the PayPay extended Visa cover are on-ramps exchanges partnership

$X.X credentials Visa of billion than already for payments wallets in all XX% fiscal crypto XXXX. quarter, is which and payments more the of had volume volume, This

institutions capabilities In crypto addition credentials capabilities, fintechs platforms, API customers. that for to looking and crypto been we which differentiators continue our embedding settlement innovate financial to to us for and extend crypto are to around key their and have

the the of one develop the concept, XX from Festival was Visa challenge issuance of the selected to partnered this continue digital CBDC to to And the wallet any is month, crypto lean with to judged CBDCs development, value currently CBDC India, for a spend we to global IMF, at accelerate face-to-face enable FinTech enabling previewed pay rails to central Brazil, Indonesia. Earlier this Consensus and countries part grow. with banks merchant. offerings entries with scale, the which with out winning We and by at world, tap to partner to Settlements CBDCs connectivity, of our connect is from will We XXX ideas as of propositions, strategy needed in continues Singapore a Visa Kenya consumers banks crypto as provide International central In to payment their consumer the capabilities, into and of the the reliability key Bank growth. would the World space. which Bank, be security representatives APIs Ethereum-based through that

also seeing the key XX%, up States, end and year Miami we're pay of and from X% Jose metro San and larger surpassed pay pay these business acceptance. tap since fintech growth as all penetration our growth: as as partner The the receive highlight Francisco, forward the rate increasingly United showing fintechs BNPL well Shopify marketing. also City cards business Visa Orange Later, Lake United the Brazil, in of San at merchants U.S. Now Seattle, continue tap renewing the day a and Balance sales the installments volume on Card XXXX me will Visa's to cities our XX%. back to to from allow proposition County, quarter, to their XX% Visa mentioned to card merchant to progress $X credentials. through Detroit, growing have with have use million L.A., to growth through fiscal stronger payments has pleased even and nearing loop all Shopify, off and XX% funds Affirm XX% in this growth nearly with Buy Pay fintechs to debit BNPL a in the grow, are active Visa's increased we're increased in for XX% chosen to same to reached Affirm's more to we over where can India, like India broad settle few acceptance Oakland virtual year. has everyday is are quarter, payments and that doubled of triple-digit Salt the open Let U.S. In business. with XX%-plus XX%. consumers to the e-commerce and cards millions in Corner. tap locations shipping with expenses the key continued has efforts year-over-year platform We And by past key with to to as continues to reach. Last penetration using States. to and markets. successfully In driving deal E-commerce volume scale enabling with look Visa their year relationships fiscal past and growing fuel merchants, supporting XX% We digitizing In cash pay are BNPL in global same consumers Shopify's so payments next Visa penetration merchants merchants access And cards period. their co-brand e-commerce helped in 'XX, wide quarter. announce is a year-over-year a network this more the has period. their I York issuing their value them. closed I'm certainly virtual New card shift firm our entrepreneurs. have BNPL to that

our dispute resolution, representing of traditional acquirers Visa Visa existing are prevention, credit majority even institution we Credentials other which cash, Installments, credential network through capabilities For financial loyalty volume. or launching Visa through commitments seamlessly clients AXA value issuers offer BNPL, consumers network one value fraud from an now their where of credential capability, to crypto, and issuers payments RTP compelling our face-to-face bring like motivates we enables the have propositions or have issuers, networks of Canada, transaction. consumers. on online our to use In countries versus solution on identity installment traditional BNPL fintechs more and any called, we the in This protection, tremendous and a to security, the blockchains.

in easier. utility Visa and and network compelling runway are long-term value these in opportunity for scale ramp BNPL, consumer entrants. advances We huge networks been wallets the all crypto pay enabling on a payment the summarize, to have and providers. provide and is proposition new our So incredible ever other has for payments an to is ways of nuance consumer and and Visa to good

and opportunity, consumer of with that new trillion Now let a progress XXx which cases me move payments. represents use $XXX to flows,

and appetite growth. partners growth currently experiencing driver We GXC. PXP, PXP case compelling seemingly BXC more In A one. Visa are fragmented is our alternatives a didn't not Visa really just other was serve solution, B, with our and which technology, is small use yielding the flows $XX around. largest across These way and cases large transaction five also Visa that opportunity domestic and seeing trillion are Direct, on targets key this quarter. By these pursuing rely aggressively a the dated that from is use our ago. Visa years U.S., XX% displacing significant lowest all our

accretive and the existing neobank quarter, is we As revenue Canada. to them, are among such cross accounts remittances banks the increase. we our of those account-to-account one yield, CIBC also is as several largest and movement. this Usage Islamic expanded Qatar, Financial in in for Chime fintech Barra other of payouts Simply U.S. the in Canada. enabling across signing to also is platforms and using on it Usage money Bank, and Direct has cases use scale banks Visa Direct in mostly and grow Qatar other use yield Visa leverages DoorDashers and growing global expect cards cases, geographies for capabilities. border, the with especially the given or Regardless that

with several We Direct signed to also Visa an Toast recently agreement leverage on fronts.

First, second, than near sales restaurant and Visa wage to billion earned -plus their reach compelling And access we security Direct payoff technology client accounts, and tip disbursements instant more and because fast to for global incredible scale, cash loan and daily employees. stack, world-class a capability for flow access restaurant a XX/X/XXX is their for offer cards XX,XXX customers. X leading reliability.

access ACH easy have new hundreds All combination vectors. growth the and expect networks, our global countries. BXB bank card, a RTP to of flows In partners several XXX through future in of systems reaching across to of more network than we accounts which through of opportunity, is

just highlight couple. Let a me

share. where cards First, virtual BXB both carded in we leading have and issuance a physical

in for points And quarter expanding millions for example care day of to address cross-border we direct company available is credit U.S. payments has every those partnering X/X Visa this digits and Visa the payments of and capabilities recent we Banco, a In Open BXB primary care. virtual is card, our pain leading with countries with the and health which we've double partners of enrolled in volumes America, XX well solution. Connect Connect, of March to an new of XX Direct. a provider Visa deal a implementation countries, Latin health the account than its growth thousands BXB that signed bank Mexico Connect payment Visa BXB One we're XX,XXX quarter, is second existing for Health, infrastructure nearly solutions. BXB as across people In issuance enabling has after global the links through vector One in in processed A volume. best-in-class large is verticals. of ticket and in a states with payments bank already. solution XXXX, quarter claims health partner based years, grown care payments serves as hundreds This debit signed BXB since of more agreement several NoMe per of neobank leading India,

in and added be live year. Central largest We Europe, transactions this Russia, later bank the Sberbank, and will also recently which Eastern processing

XXx new summarize flows, to So the consumer opportunity is payments.

value and grow capabilities versus strong the competition, cross-border and revenue scale Visa as especially cases. and we yield Our in we continue use to to are proposition expect improve Direct,

move to Consulting to QX, continue. XX%, with services. grew and growth and Analytics. let's strong value-added is revenue we Visa expect Now In One example over

that In to addition recently who I to NFPs crypto or banks institutions crypto looking retailers a specialized advisory launched exploring crypto are our digital to customers central into eager help earlier, global solution, offerings mentioned practice a we to offer financial currencies. delve

since we future. the the start clients cost And coincided build a software XDS payment Europe, to the for present authorization for XX%, has Acceptance expensive In Another time well authentication impacted transaction we the processing new have and from need as the Cloud launching example is the is this Visa of use also fraud certify processing positively software. new by Visa's move and reduction EMV terminals to to XXXX, in card and rates. capabilities of embedded with are cloud, to tripled individual eliminating the technology, as with the it the devices authentication. enables

value-added fraud BNPL. management addition, clients access from can services In to

settlement acquisition We provide combination across Cloud's our and also on which networks. Currency of recently end, We network closed foreign our front believe the exchange of the capabilities APIs our real-time Currency of Cloud. capabilities

very a we payment cases expand Direct. including Together, customers. and our provide we transparency and fintechs real-time we connect BXB Visa the and and particularly cross-border our rates we enable our We can connectivity partners, easier proposition. have easy partner institution for use and We can can improve for as value use compelling non-financial extend platform FX new cases, Connect will FX flows offer clients, for

ecosystem. to innovation to value-added Visa the So services, to bring summarize payments we will continue

diversifying and think I'm as energized. conclusion, optimistic will In well business this retain are us We win into and our help future. extremely future, revenue revenue and grow mix, Visa's the and I about

opportunity been disruptive more much see payment a written Visa, lot being While than new we to about types potentially disruption. has

our Our network types power pay global through infrastructure is providing to of payment more to and networks newer and connectivity ways traditional money. move

services fraud protections, reliability, management risk other offer experience. a security, interconnectivity, superior and and value-added Our consumer

let our will more growth which attract accelerated rate. to over turn expect it transactions, We and me more Vasant. at an continue to to that, With fuel

Thank you, Al. Good afternoon, everyone.

and revenues globe and to highlights. XXXX restrictions and quarantines. including non-GAAP listed higher In sharp cross-border Our Non-GAAP the XX% ex-China growth XX%. moved approximately We X.X and X borders or very at EPS announced net of EPS reopen in XX%. few was as open approximately timetables XX%. up a higher fiscal point for key had is over to recovery points items, A gains dollars, in to adjusted off litigation October an as was travel excellent borders start much November such and revenue investment EPS net constant XX% accrual up with up at GAAP the

actually. card As are of exited as to which had sooner a result, seen rose. not consumers present card present XX very to index index throughout XX September to for the quarter. steeply of quick XXXX and and we anticipated XXXX, at first an we've Border hit reopening than came travel, an

border shut some were hits Omicron restrictions As and reinstated. some

of for stable. remained lifted, and with XX% X more strong we was resume Payments we as and strong points head modest. reopened, volume recovery X credit domestic spending since than up prior speak, the by to robust remained XXXX. points been the However, quarter share XXXX stepping in through restrictions index travel continued U.S. holiday February. recovery being retail and specifically relative and up globally debit to moreover, internationally. impact gain retail we continued and quarter on X into over XXXX. point growth E-commerce as to U.S. volumes The spending has Omicron the the expect The

$XX stepped program the services XX%. acquired We affects be revenues it in of growth new late buybacks three Also added to cloud an has in in quarter. transaction. first ease market XX% average mid the million the over stock a at the weaker grew As the for revenues across and we payments grew December. net our wave billion Revenue buyback during UK currency such the helped. value and We globally, growth the impact shares expect up range $XXX. authorized pace very to Consumer significantly our December, strong of price engines. XX.X we South was the as closed our among and Omicron new Africa $X.X Board in And stock billion flows

the volume strength Now as led each spending. Global X and as last was to in versus up points XXXX, continued Payments details. XX% quarter, by In debit constant on improving X the versus year-over-year dollars, to XX% accelerating well credit

Credit volume than grew by quarter. higher XXXX payments XX% total up or helped grew consumer year-over-year both XX%, at XX% to China, X-point and small fourth XX% U.S. XX% strong above the Excluding Debit spending. volume X the than points grew similar XXXX remained business last X and over improved quarter. a XXXX, payments from to was about to very and XX% affluent acceleration and XX% growth higher XX% QX. XXXX,

lower by of The and XX% share levels, growth spending last our present continues last holiday remains as U.S. Retail excluding as happening spend is Card-not-present retail X credit debit it card XXXX recover. that of used even past shift in the E-commerce its you both at points pandemic, retail X spending. continues. last and year. the As spending XXXX the can earlier improved the spend to historical the about a retail XX% strong card XX% of U.S. during are shopping from but still has robust as season fuel, very grew to standards. in digits card presence travel, to, grew resilient than holiday volume, by quarter. e-commerce entertainment points XXXX, similar trend is decade spend recovered. driven few a see, season remained level started points improving than more above XXXX, which double year, XX% was highest which over grew presence was than even towards yet and and holiday

holiday constant the U.S. consistent XX% than China, around As world. quarter. X America volumes points regional fairly Latin from XXXX, and wins. client robust excluding relative digitization trends volume, payments fourth dollar fueled the from November other International performance XXXX, were grew cash up year-over-year a result, and A XX% XX% accelerating the XXXX, with major fourth to X was are few December. highlights: stronger markets region, XX% points the across quarter spending improving and about with was by about

the Our the cash fourth across CEMEA levels, points XX XXXX also up digitization and quarter last strong, XX% XXXX, X from improving Europe. region quarter, to Continental and from wins. and due from strong Europe was up fueled from remained client XX% accelerating XX% performance points by XX%

Europe to was grew from travel, XX% Australia, were within XXXX, year-over-year was to and Global weakest in points Southeast than quarter. XXXX and fourth recovery China, than was extraordinary overall The transactions Asia combination travel year-over-year pent-up than improving and points. from process driven points mostly XX excluding Asia more growth X restrictions. up Thailand, volume versus Asia the the America higher volume, Japan. the cross-border as U.S., year-over-year Countries accelerating recovery relaxed Singapore, while due continues restrictions many card-not-present excluding deep an our an Argentina quarter U.S., XX% corridor in India, as improving fourth levels, XXXX, quarter. XXXX, than and strengthen, of XXX% outbound year-over-year due for The QX, months around improvement the versus higher less fast Europe, to broad-based but XXXX up at improvements both Australia, December and excluding least border during Latin dollar growth, the inbound This more such Cross-border points from the grow. with up largest globe. September better quarter, November. X travel consumer remained a is of year-over-year momentum volume was XX-point and Constant XXXX started the over and to of about XX to fourth travel of Omicron Cross-border XX% recovery each spending, and Chile, travel-related region, This reduced with XX% first very two all and as relative openings, regions continued finally friction first X up spread Pacific, volumes, XX% to travelers. XX% fourth that last improvement above sizes. XX% engagement Canada, were improved U.S. to from open. a and in week remains points time, excluding our of XXXX XX-point underway points recovery relaxing the lose demand. the the to and Inbound was to the the each X% The Europe, from quarter intra-Europe, XX ticket to above by EMEA improved the transactions quarter

this We short-lived. to expect be

transactions. led led transaction in Revenue across data consulting, up Payments grew travel-related well marketing Other the card XX%, XX% three XX%, payments now changes. revenues slightly processed Moving modifications. growth financial XX%, of as benefits. continued Consumer were growth mostly review rate grew results. robust better increased strong mid-XXs XX% a intra-Europe. by consistent to Service by International domestic Data volumes in exchange grew cross-border by processing helped benefits excluding pricing first our QX below cross-border utilization growth, services of volume, volumes revenues and XX% slightly nominal growth due engines. transaction improving the and nominal revenues small and volume and grew with to the revenues than quarter as was quick

usage earned last Direct Meanwhile, ramping business of XX%, year, risk mid-XXs XX%. a in and gains grew growth over is identity not revenue is Direct share well by grew grew carded point driven transactions U.S. significantly the quarters also is spend from consulting mix recovery. and is was revenues, increased among year-over-year payouts. the as the services marketplace expansion. led categories cases BXB of credit. clients Visa moderating XX% and driven below volumes fast flows as of were access grew is X growth the XXXX, was by which helped diverse international to revenue and cross-border from by and rates. over data incentives Visa Growth remittances about by Client business. mostly expectations. faster-than-expected We're existing a portfolio such and Commercial T&E. lapping This our international dependent overly XX.X% prior quarter, The as client gross on New BXB strong use and recovery XX% very a a or our that as the improvement new result cross-border better of X-point due from wage up in adoption, Value-added services. growth

As from of of case. million our this litigation line XX% grew the help with revenue expenses ratio. mix continues operating associated expectations. multi-district inclusive provision operating U.S. to cross-border equity $XXX gains GAAP grew our We with investments normalize Non-GAAP million. our litigation it with recorded $XXX in expenses will interchange XX%, recovery,

Excluding investment million. gains, expense nonoperating $XXX non-GAAP was

rate line expectations. with Our XX.X% in was non-GAAP tax of

year-over-year year. typically XX% $X.XX, shareholders quarter EPS dividend was XX%, tax year full and a lower up on GAAP the U.S. of we of our and credit the stock up buyback, EPS X% to last over little On trends share per Non-GAAP first basis, a three quarter. up in quarterly debit with payments capital weeks was first volume $X.XXX our is the A January. $X.X Our rate. comments was rate through XX%. than billion Including our $X.XX. up few of returned

there due disbursement, on a up which cross-border Europe January caused in numbers, was with dollar XXXX, government stimulus within is cross-border spend travel a Card-not-present surge first sizes. These volume at quarter. major December lagging XX late these was XXXX XX% that XXXX, Total consistent important quarter. XXXX. XX%. XX% due transactions remember As recovery above at the versus versus markets volume ticket credit transactions are you to the year-over-year, assess basis was XX% growth first January recovery spending resume larger relatively growth in trends non-travel XX up a with XX% Cross-border we in with excluding to above the XX% XX% indexing early the debit in up since above around and XXXX, XXXX. it reopening, and debit grew our robust up Border has X% strong Omicron, world. in was XXXX. to the grew stalled up growth to Processed to from XX% year-over-year and The points expect line volume, February. remained constant performance

Moving now growth the outlook for our past stayed stable quarter. to for and second has robust the Domestic quarters. volume three

both ease impact, has the had has will cross-border. been While growth domestic e-commerce Omicron and crest. also way it modest some recent as and of This is the with case

swing factor that continue. is We cross-border assuming The travel. these are trends

back recovery the was restrictions on were October many countries Omicron plans U.S. as hold. or With some some in announced travel restrictions and and surging, plans the border rapid reopening November cross-border do put to discussed, reopened and so. very put place in As ease were

border eased and cross-border assuming being reopening. recovery are in resumes travel restrictions February. the However, We're

high percent a grow cross-border X which expect and quarter, renewal net similar the range in grow activity should in on high As revenues gross be XX.X% such, quarter, teens we to point end including as based to a performance. at rate the of as revenues the likely second first rate the over drag. volumes, XX.X% of will of at exchange Incentives

at the to XX.X% of mid-teens expenses come to inclusion expense high X.X We the operating Domestic as additional range. well to volumes the we can travel some in organic The payments investment associated significantly the another to spend. of the year add XX% expectations. XXXX expected largely cross-border operating growth. fall. non-GAAP some the on non-GAAP we in at were update full are Tax for of transactions end our ahead indexed of expect We rate as volume growth and will October. running end with shared points also planning currency of assumptions high is to end cloud line in in cross-border assumptions with the had relative the e-commerce with December, you At

now ahead As our at assuming intra-Europe, XX are this such, be XXXX of travel, we points year of end travel the XXXX, would fiscal prior index cross-border intra-Europe for that are the back levels. at excluding XX%. Inclusive assumptions

to the updated robust of end high rate the these recovery what cross-border higher be the full revenue including mix half grow from we for volumes, would Obviously, of of for to year a at in between more if percent With would higher high akin net teens in year. revenue assumptions, cross-border and drag. point second incentives revenue is gross more saw would improving XX.X% XX.X% growth November. the revenues X as the With exchange range and October

We rate non-GAAP the expenses Currencycloud not of basis, end year. GAAP upper the a The high of add at point and non-GAAP material the On end mid-teens. at for to expense expect operating XX% will impact growth. of XX.X% the of to is is to inclusion Tax another range. growth operating Currencycloud organic be expected non-GAAP the

an we exclude in acquisition-related reminder, non-GAAP a off numbers, make amortization FY nonrecurring is of adjustments summary, start. In costs. excellent to our and to As intangibles 'XX

fiscal This be into will year cross-border as growth will above the We continue year expect recovers. 'XX. pre-COVID our rate well this likely

above we business pre-COVID rate can are growth a revenue confident for three that, Beyond sustain levels the reasons.

of across total new use and consumers cash cases and cash, broad globally; second, penetrate pervasive range both of very domestic transfer First, markets; services flows addressable from as across cross-border with third, and our sustainable and new initiatives from wire payments growth merchant large existing for digitization businesses away check displacement high-teens acceleration value-added becomes offerings. new both services, our an a as and acceleration check

a become and the continue flows value-added growth than mix, our rate will to larger rise. As growing faster part revenue services consumer sustainable of payments, new

invest We to are and capabilities required will that, growth of continue extraordinary to us. capture to the Mike. in the ahead turn this With back I'll opportunity

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

comes from Our first Darrin [Operator Peller Wolfe Research. Instructions] question from

is line Your open.

services around cross-border sustainable reinvestment curious, you revisiting off faster? you as bottom I'm factors get a as improving, on your Al, should that it's pandemic rewarding job. the I Whether just see can generally pretty that's line. probably guess over get potential pass-through And process that's what the thought Nice we as start key big then having you shareholders? shifted versus by progressed? somewhat or volume to just note, for accelerated the the

I getting to Well, term, they pre the of mix from going travel were and Darrin, levels pandemic. upside come the is think, recovery the affluent the the customer near at spending the in first continued of I in think back

they places. In sustained of terms longer-term number in opportunities, think a I come of

for the time to people went during millions the around be adoption e-commerce e-com millions of going First, sticky very the first and and is pandemic. world to and

new that value-added we're our in more both get Visa ability displacement penetrate then I able the plus cash we where pay, we services. to going growth expansion There's flows and And ways to time. capture our continuing area think opportunities to to Connect Continued us is volume. without within for going as to BXB, and Direct, sell to continue. BXB more other have be with areas transactions simply going to Geographic question, another is is over just which drive sustained

So I provide push a for of think that forward. we us terrific that number a good can going growth levers there's

where about that be In to And going as planning talked terms points helpful than of Vasant weigh cross-border certainly, is let planning assumption XX your on in our Vasant our updated going second to we're be us. for Look, I'll about original we question, think better assumption. well.

the of As think, our we initiatives level at the we're the continue appropriate We're to, about are into fund against our as careful about look we're I we forward able our go and investment in that business sure right that of growth conscious future. initiatives But making making sure going Darrin. as we're ahead, be very conscious make well, to to the expenses thinking. managing is balanced sure also that to we being levels

I stock shareholders, returning up Yes. did to quarter. buybacks. accelerated step per you and as shareholders $X.XX going We It's that our mean to our quarter your we now. question about did saw, back cash then And we last dividend.

felt is but and we when buyback flows opportunity it better. there opportunities, clearly, stepped our was up. up. an we programmatic, are And stock see we Our step We cash

said, opportunity growth. Al is our business. our plenty investing in As mean here of There's I priority first for core

shareholders, acquisitions to and form on And like and then, our we been Currencycloud buybacks. most close dividends would be soon capabilities hopefully returning our Tink. we've enhance free cash Second course, always in of of flow the that of cash

from comes question next UBS. from Rayna Kumar Our

Your line is open.

government you that from course, highlighted is comp debit of excluding Can strong. both sustainable quarter of much second you as remains So coming strength issue very that the and how your in stimulus? volume discuss with how Visa Direct 'XX, the growth is

that through pandemic. Rayna, it's of been and entire of a points, the the couple consistently run it's

Our next from Harshita from Bernstein. comes question Rawat

line open. is Your

can impact can get behavior You impact about aspect view? ask it talk personnel to volumes, how about expense in it? you? how remind your but you cost want sizes, And obviously purchase does I and does us in of you also the Vasant, benefits inflation. inflation ticket consumer

Sure.

inflation to denominated points revenues, fees, ticket cetera, cross-border, primarily as terms are in our basis it In of on you size. our as service relates know, et

extent When driving to course, now, Right number has of basket clearly, up. it's generally the tried comes that inflation, transactions. of size, it ticket up transactions the us. to gone of So fees beneficial the there's are to our size processing, to

Some of inflation. of because it is

it of just up through gone is Some pandemic. because the it's

going cup Some of some of some in with world transits. do and to or coffee. normal a the work fact lunch that losing like got transactions, it at of buying you've of the We're a has people those themselves smaller

our ticket that to have business. in sizes good for causes which ordering that people so e-commerce, and up. through go basis are And will in to transactions a tended will when size mix general, up, And basket be on go recover,

the through. it's So the inflation, went ones some basket just like elements size now we increase partially I it's partially see

beneficiary point, we if inflation, have to are of it. expected. this mean and by, I mean, mean, it's I of at net-net, And reasonable speaking, everybody wage expect So time more we than inflation. I'm some update Al, in we But it's I generally things as is you sure seeing a overall, you add. terms we'll goes

they segment The ticket relative is other higher obviously, that who mention as the well. you tend that that went to answering, -- back didn't that Darrin's it comes think complete factor the Visa. very in I think have said during most as something segment, answer I sizes down in, was spending affluent which of only question a the I No, to ticket is the sizes

factors to on of getting there's So, those the that virtually precision causality weighting number ticket and sizes different of drive what different a impossible. actually factors is are

Sanjay question next from Sakhrani from KBW. comes Our

is line Your open.

just about you of tailwind follow-up many to the doubters products be the that It's you of many because curious partners So I'm I of interesting to you growth talked Vasant. reasons about in reasons the sort for speak your the significant concerned the that with you missing. Al, just a what be cited. that many And as and had a to the outlook. expect they're opening think

of February a go terms guidance, and you that the or that back traveling to November saw updated that assume people In does improvement cross-border like there's gradual after in December?

our where bring instance, we does a we help or and I'm the and We're network to instantly to is the as more introduce user I merchant-by-merchant excitement, going to them big ways lean PNPL much global and to pay. scale difficult look know. truly And the say a winner it scale loser. also more support closed wall order over when ways merchants or get I'd couple capabilities efficiently to us people as will reach I Ultimately, we that of I network open that not One more experience. networks. based that in make businesses. in bigger innovation for we're that decide to them really can happening that chance run matter or on pay. having that to who And scale predict will get. a agnostic crypto and pay they're XXX But seen don't to our networks million business what ends how there job to with people here their think well kind on and much ways you the think to losses who new not much is who's is of want to to much to is and where it global Sanjay, is that they with available believe the a incredible wins are a the will or of XX can the give up value network. time, run for to network in and consumer have decide embrace pay. to our is that is their fact consumers And And gets a open fintechs that ways in initial million truly We're different Visa open quickly want in things. people them. a go of and closed if win do to have from coming business, prevent over seeing is willing out into them somebody for a and situation pop, their after scale. comes any closer initial the players

a this appreciated. kind network to pay and people ways multiple pay between fully like enabling distinction is ours is distinction, of think that haven't I a to I how So that think, that

And September quite for announce Asian of Omicron, of in by in trend open up. excluding was hadn't the was was think increase what a and is over And almost months, like act. very question in massive November started demand a turning of borders the quick data course, that evident up consumers the we most steep the many saw timetable cross-border switch travel second and extraordinary. to borders a we the border, from nine last November, on open, been your either opening is U.S. up to multiple if back have points what when reaction world really the driven restrictive, that opening what's up Between countries, I and China, pent-up see or October which to been cross-border, Going for There's ex-China. immediate. become in we to six on, opening most saw October Europe. opening the it are And it's

opening control So that which have immediate to predict can borders, impact. because it is governments that something you hard that a is sizable and tells

another very will is there and borders is there there that I terms But mean see normalize. we In be open, where we through flattening the steady. for periods occasional And what clear our improvement periods is in may year. your as But line it variant, we out are just to know may is question won't be is of sharp to be when as could fast our the very borders when assumption, some be will steady improvements. it there move some saw January. things if open, bottom assumption

Our next Autonomous Ken from Suchoski Research. from comes question

Your line is open.

Can your business. cross-border wanted And this thoughts. really back to mean results follow pre-COVID to get talk curious I I the I'm solid up gets whether just you to on some there. about business trend revenue pre-COVID would Meaning does not happened? have do back catch up where expect levels? to volume to you cross-border get it been had and the COVID cross-border eventually growth? trend to Or business

above of below to to -- think is the And Well, growth little relative whatever the business. is pre-COVID. back we trend business meaning different think can that expect that isn't growing There we rates trend a of pre-COVID trend line. trend at trend is what asking. least will is e-commerce to see fully is answer rates pre-COVID that a to the we the returns line than which no wouldn't, why in it growth the of business cross-border business one let's levels, is rates, pre-COVID is to short grow growth see that can back at get the why above initially, business to were well line And only trend line. pre-COVID the is trend that trend begins growth the part clearly get pre-COVID so I we below faster cross-border reason that because to the and the mix be to it back total because that case. will business the then if assume now I assume above trend the travel The e-commerce grow right the sort sustain line We rates travel trend grows the after the pre-COVID it you cross-border reason gets gets rates. possibility no business was,

exactly appreciate That's I right. Yes. that.

comes from MoffettNathanson. Our Ellis Lisa question next from

line open. is Your

Acceptance questions Visa strategic couple a had Cloud the to I related announcement.

they about are monetizing then it it all of the payments? and your are interplay solutions and how facilitators types last the second, Visa only? Acceptance competitive one their Visa is is think it? the Or card the space? then POS is -- it mean, potentially that many ecosystem them we Or Cloud in this of how solutions? And embracing of own And acquirers this have open you with First, is, to given between is their Cloud? payment I should Acceptance

of first with early Lisa, all, it's days Well, this.

it's Our expand get it's valuable acceptance. extremely here strategic force bolster merchants my a certainly, is And once opportunity things footprint sell to because that the approach is like can million over have to on that we that XXX drive the for network world. accepting. around acceptance. the more have the of the to to for this transaction we And acceptance to world ecosystem us will not important it can value-added network services tail we time. merchant on do expectation the despite that's is think locations, we that that there we are not for has charge And driving long really our our the everything is But still the fact around

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

open. is Your line

There to the temperature political there. changes There's to from just payment the it the U.S. Brooklyn, pre-pandemic? the landscape, the more where feel regulator some the reports less on climate is in take does bit wanted recent U.K. still global some Fed a system Just the we litigation were given I were your of or in out the Amendment. mean say, merchant proposing Durbin regulatory than, risky

see risk of? or we how overall should areas any to mindful potentially about wanted you're just of that be thinking So

for and there's place that been payments, as take I've involved always the long discussions in regulatory as world. Jason, around issues been

year. with workers period, health some time continue money number food money in this to governments So delivered when during around during digitization pandemic importance do in we, not recognize I digital time, were stimulus down, the change the first material should helped a of of the in kinds that issuance that able do the for the the And and the that also though. it's a ecosystem were their to think or digital. the couple things think I people this items of world. order of around was and recognize of there locked incredible because house they and of the reliable at world more secure a really any part last think and is they has been governments that because or, payment become that One there business. has to those things. environment digital, of being the quarter I in matter cases, in the realize helped is responders last care to order governments

be And digital have to contemplating might more. are us think also potentially with So to avenue be up subject other that I and talk who, opportunity cases, regulatory more currencies, from in we're to I'd digital our to central about related a there's helping because able payments seeking things and they, point them us counsel gives many as I an they bankers what do. allows of to should that Bank discussions opens on Central to going governments potentially talk of an say they think to that's it view.

regulators. any in regulatory world change, I engage I'd material been continue new. with to we and hasn't So the frequently sum, There and is guess, thoughtfully attention nothing say, around

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

Your open. line is

connect you all. to with Good

ahead of pricing, because of on cross-border then guidance, you Any point the about other quickly if cross-border? from was any just expected. growth the I bps of curious is impacts we've that other know upside teens that this fielded et nicely to Just outlook on surprised. know result I questions. the the better Was callouts revenue that than I I'm mid-XXs incentives, And guess, it you high last it cross-border prior primarily would just of lot that XX and primarily cetera? the drove also talked a rebates strong there's or quarter you the quarter.

Yes.

primarily than the Tien-Tsin. You're was I services expected. mean, had value-added we the quarter cross-border, right, cross-border quite first but bit also in outperformance a we performing better

contributor. So strong was value-add service a also

the of drivers. be would main the two those So sort

volumes we cross-border been outperform service There higher payments have volumes revenues in lag. our but there show that certainly with but outperformance definitely. lag. a the magnitude service would been no of revenue up doesn't as the quarter. anywhere there's we too, was there know, wasn't the had -- payments when performance, It was booked you on There on order As

The part of was... other question your

Rebates and incentives.

lower yes, mix somewhere going up we'd been that those We of incentives, that change point have because be in for because in than in year cross-border. range and we Rebates to expect also now quarter at away were this our entirely is by the a had coming had. the the improvement the the into numbers expected. while mix end from and business for the of region be reduction because the were of we We driven the range cross-border we since we stronger of originally saying prior the improved whole a thought the low XX% mix cross-border

Yes.

mix. hear to all Glad it's So it.

had -- Eve. remarks a the of think period. that to the holiday thing I in answer one we I also strong based pointed Tien-Tsin, -- of only we've out it's add of And very the is the his It's or would really in incredible Christmas as the phenomena no longer driven really in starting by early this November, questions, increase seen stretching, Friday adoption Black season and to the e-commerce. holiday in

from Our next from question Togut David Evercore comes ISI.

open. Your is line

cross-border this on on payments, travel rest have a your forecast it does would impact timing? reopening of year, impact China the of China? any doesn't, cross-border reopening the at on in travel what of that if include of -- And the for upgrade Looking obviously, depending

chunk don't volume. we -- one of corridor mean a no for our I of big Yes. sort accounts

expect So was Asia China certainly up opening big than surprise The assumptions was October don't we to Asia. Omicron hit not specific in before expected. that. opening faster make or on in have opening We some

So for example, Thailand pretty resorts. much their opened all up

to they've seems do Now passing. now even they're I did track announced wave plan, Singapore Indonesia, saw to a believe be opening them restrictions. the India pause, on We We ease phased saw that but they that. and reopened again Omicron still

things people can and of kinds predict is quarantines and shut travel opens. India it's -- Indonesia hard without completely it So that. without to like and when China to more

how opens counting the after So big balance, say opening. is are I recovery otherwise, a restrictive we swing not Asia on would at the factor quickly it is how business. on this big point and But Chinese of

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

open. is line Your

of growth. a many, things question there's The ton great to But have you I these together. instances, for of future kind outlined in is, just like many so hard opportunities pull it's

maybe from So when a think prior elevated about of you it in higher does take how to where we get pandemic? you it versus your a that that mix versus revenues, you sit and cyclical look secular And growth to kind should the of about be path? growth mix accelerated today thinking shift

most can start, Al the driver that, sure said I add. I in look the Yes, recovery the and short will of far mean, is growth. is by Having I biggest not business mean, run the the cyclical I'm level. you now are trend right stable above an that components which also recovery, cyclical can in the other but only see cross-border, underneath growing of at acute

very is rate, payments the pre-pandemic. a was recovery for is pre-pandemic, it period at a you over look but Credit you in same a as true at higher recovers do a is our time volumes. growth. credit it's if e-commerce debit if CAGR is and The resilient growth So than mode, even CAGR

about You and could the value-added new say same flows. services our

component. biggest trend recovery of So driver the short-term growth is above being while the

it, underlying relative secular below are If trend sustainable pre-pandemic. about also and the where to you growth were look trends they

and or by these and is of a And new with us are because drug agree picking and growth A of that, ways growth of I verticals, and online home buying going Yes, all drive we up of growth certain at delivery. in to ways if improvement models. lot think, I'd all paying forward. People help new look buying incredible new in shopping and and going is online lot of getting kinds that. there's our food

joining And with all you, of us today. for that, thank you

so evening. can If we're help questions, much. e-mail and Jennifer a I, to contact Thanks you or you, have to you free or great additional feel have happy