Visa (V) 25 Jul 232023 Q3 Earnings call transcript

Welcome to Visa’s Fiscal Third Quarter 2023 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to your host, Ms. Jennifer Como, Senior Vice President and Global Head of Investor Relations. Ms. Como, you may begin.

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

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

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

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

GAAP call, For non-GAAP financial related release. earnings in information reconciliation this disclosed the available today’s are measures in and

that, And to over Ryan. turn call the me let with

joining and you for us. afternoon Good thank

payments performance XX% financial per to U.S., Non-GAAP the inflation. Our payments quarterly was was was due moderating of up our payments XX%. year-over-year. volume volume international quarterly share, was up Outside Overall, up global year-over-year. $X.XX, X%. earnings as volume primarily revenues expected, net was third strong, with the the X%, XXXX X% in up quarter In U.S., up

of Excluding year-over-year. Processed XX% XX%, cross-border transactions total with travel volume intra-Europe, volume XXXX. at XXX% remained cross-border up strong, grew

consumer and I like levers: products selling those our new in services. more review that teams, priorities are supporting solutions flows mind, With three we value-added to our our priorities delivering call, growth strategy, go-to-market our everything including on would growth can doing clients, for by across payments, and I our our our even mentioned As earnings on executing my even progress previous to our shipping effectively. accelerate faster focused innovative

existing shifting and business, make to and and of from clients around Visa our We continue the world. regional new consumer growing array great payments strides volume local, to competitors global wide expanding and winning with a

tell clients with they’re products, of and our and our new number for including reasons, our partnerships expand us our our a brand. their people, value-added us choosing deepen Our services, to flows

I’ll share a few examples.

consistently issues advice, team First, also partnership outstanding local the our they people. appreciate across day our day and important they industry value We on world. the ecosystem. in hear deeply around support the They complicated leadership that and our and from from receive out clients our members thoughtful

Net position XX. In our our serving the players fact, unions global we by in latest clients rated of Promoter retained Credit Pentagon the space, Union. U.S., in the one Federal the top our XX at largest credit of Score recently renewing X survey, of In us

are many bank our year the While it with relationship reasons like community market credit this there PenFed, U.S. people has model made to success difference, over XXX our for for renewals local date. and union and our just

off. and paid local great a our priority locally invest talent business, with is to Payments has

representing Sanpaolo Intesa million and in will Europe, Eastern issue across Hungary, debit Slovakia Romania, over example, For Slovenia Visa credentials. Croatia, Visa X

Second, win. consistently our and help products payment innovations us

solutions innovative they us to ensure our are tell clients because leading-edge delivering customers. products help Visa they Our choose payment their

renewed For Card. example, partnership Hyundai recently in Korea, we with our

payment consumer debit grow business. digital in a will Hyundai will for of new to analytics Hyundai credit partnership, new our series of be share solutions of services advantage and like part launch and data and taking Visa As of their our cards innovations.

Group a comes for with Our to credit. targeted propositions the traditional and pleased in value are debit signed partnership new NatWest innovation products, consumer also from we very and long-term have

helping Third, payments. consumer win in are services us our value-added

differentiator that clients risk solutions, such without resources: analytics, a innovate critical engineering. grow, and having and to consulting and solutions their scarce processing, Our helps technology use as data most our AI-driven value-added are services, often and

Group, largest a the to of global to credit become Rakuten Card, further subsidiary example, new Rakuten with e-commerce their which a has marketplace For strategy deal top Visa operates signed player. in a Japan,

of partnership, Rakuten will our capabilities on dedicated to processing teams and data Visa’s and science consulting, part support As Card utilize them initiatives. strategic analytics Visa

XX Fourth, A our our important In that transacting our payments million Visa And Increasingly, capabilities brand? and Cash great but prefer? ask App has actives, our overwhelmingly Visa. App, such issuance, are more renewed capabilities. example not clients last, consistently consumer you this And expanded their our us cases, new when Would brand agreement Visa certainly as flows is an making encompassing decisions. customers, Direct issued clients to flows they’re or which Cash new differentiator you clients with globally, card spend consumers our brand. prefer that if Direct services. tell many brand value-added we monthly least, and do

see with out We particularly this co-brands. play

the airline of the world, partner renewed a Airways. in of we and recently remain a largest and we Korean choice, Air agreement with For example, Breeze co-brands with many signed for new

Allegiant parent co-brand a company portfolio Allegiant Air. the won with Travel also Company, of We

countries our XXX frequent And flyer airports we serving through and In from signed addition, the with existing Adani, a with in among LifeMiles, Latin program million our Avianca’s Caribbean agreement countries X retail, America, an region. conglomerate, additional relationship XX online travel customers others. we Indian to portfolios banks in expanded services, issuing finally, X co-brand with in

in $XXX with are new to focus Total how me delivering now dollars new up our on a total to effectively constant X% flows, XX% priorities. in Commercial on dollars. billion. constant revenue again, was increased we flows Let turn volumes

to market, terms commercial we adding existing focused on are our consumer relationships. to how products go we In of

Visa leveraging Business will XX of client, launch Credit and prepaid as expand launch and of renewed key in clients. debit well Thailand, prepaid with and relationship their across has credit SMEs our KBank, Brazilian space a commercial deal co-brand business base as serve bank PagSeguro, for a and debit fintech its to card consumer the leading commercial the micro new in a to businesses. signing already million products new a

to As countries we and the develop application we enterprise also in market are consumer innovative do has unique A Pacific. Asia strategic global SAP, leader the and software, with commercial deal example us across a deploy signed working with multiple in with recent which partner clients space, is constantly in a solutions. as

We their chains. customers XX,XXX working into payments, embedded will will for integrate an serves This technology Visa’s helping virtual deal than business across card and to make business payment platform. more improve Asia-Pacific. solution create supply and enhance capital BXB SAP’s finance their to provider positions solution their capabilities SAP customers

impact to capabilities transactions had a is onus minimal. Latin we bank PXP be over our and provided Direct, same Visa ledger XX% be for to third transition expected transactions its grew YellowPepper. client In to to For this while quarter $X.X an And domestic internal were could to quarters, several impactful utilize it billion. America, the transactions by time, our At continue revenue will the other their interoperability the next client transactions, system.

excited with the Lydia, Visa enter PXP about increase have I and the Recently, as and issuance million particularly we markets our France, we including several renewed presence. am provider our new leading we users. over We will expanded in deal X with using transactions directory will cross-border Direct, fintech eligible up key entered Direct very app relationship, Visa app, markets, or enabling their enable Bolivia, within and with In alias an be to card. be Visa to wallets new domestic a called providing signed their PXP services. libélula’s YellowPepper Direct have users top Lula,

across important and fintech Mexico, textiles, electronics will in clients Visa In we’ve software, continued thousands including hardware Direct payments partners. with Alchemy cross-border for cross-border supplier with Pay, also to And multiple corridors industries, BXB enable SME expand of corridors.

Revolut, Similarly, over provider its to XXXX XX X markets the expanded TransferGo, Visa with July Direct-enabled a cross-border in XX example, in corridors remittance UK, over after with XXXX. serving users, has launching XX customers, from million just For of in expanded XXX. million to Visa have service its Direct

important part story New flows to our effectively are and solutions. Visa’s teams activating be continue selling growth and our of an

touch I value-added Now on will services.

growth in expanding launching is value-added by building remains penetration our products, larger client geographically a driven services Unlike solutions. core existing solutions. go-to-market often business, of areas: of Our on approach smaller three growth our number and deepening and new selling focused

new selling new XXX the XXX services, within cases, client. services, quarter, some in more we even almost XXX same and services identity succeeded in and This than acceptance risk issuing new

in Our XX% with continue day growth day realize and the points Altogether, our pain to dollars. their in resolve sales up third billion work out new generated in and services and $X.X clients teams in constant revenue, we to opportunities. understand quarter, value-added

services highlight to of quarter. new this A examples value-added couple of

with Pay.UK, the recently was operator our announced. partnership account-to-account UK in the First, payments

new reject strategy. or a deploying on approve in and Prevent, our Prevent, piloting network. capability, of and is for learning we new score be AI built entirely great fraud payments a can provide deep so will instant RTP uniquely real time whether to is which risk banks RTP decide models. example RTP Using with network our can transaction an solutions network of the building This We

by issuers, processing customary and our banking a is agreement core well Pismo issuer that network have debit, us important Brazil. cloud connections products to subject additional in credit, to core Second, XXXX. will regulatory as core as strategically and of allow to announcement of our approvals closing and applicable America, through our believe From additional processing to acquire Latin expected APIs; including and with is native support through Europe; geographies local with become close including platform, issuer services. value-added with card and cloud-native We conditions, activate credentials distribute The processing and banking cards operations to commercial networks, elements and PICs capabilities, end issuer clients Pismo. recent in prepaid and Pacific to perspective, banking definitive and transaction the Asia reviews serve additional ledger

I to have momentum. and the I regulators, enormous across over last and partners see globe up, few wrap clients, To continue the with months, opportunity meeting traveled and

is capabilities, people. future to partnership us the brand important position for well and but most continue aspect growth, approach Our our innovation Visa’s

plus His be better in and businesses, Visa’s newest growth leadership August companies. valuable with to more Chris finance and extraordinarily experience as technology, I Chris high-growth continue we would Visa become the like Officer our Suh, in team, drive Financial of mind, and to customers clients welcome brings who will our on member the leadership years and XX his in serve And to that of X. global to than world. Chief will scaling around executive deep from finance growing experience us

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you Vasant, best. the we wish all

last over your time in career, you, the earnings Vasant. on likely for call an So to

dollars, was Thank up up EPS XX%. XX% GAAP EPS, third were revenues revenues X%. Fiscal you, everyone. afternoon and constant EPS XX%. quarter up Good and grew In XX%, non-GAAP grew net Non-GAAP net Ryan.

lapped of impact Russia. the have We now

Russian largely X% declining key XX%. A with XXXX, was volume expectations has consistent the was in payments payments XX%. up Transactions fuel steady pre-COVID up the at and XXXX, payments multiple was year-over-year, U.S. since payments to Index X%. volume XX%. In up result to global inflation general since categories. XXXX, is Relative highlights. moderation Relative growth operations. Average The prices down size was across U.S. March. up X%, of quarter is volume last lapping constant global payments levels payments of volume volume of of international up XX%. discontinuation international was to payments dollars, uptick volume to ticket growth the remained few the volume and International up stable X%. due was

X strong still at cross-border X.XX and from expected second indexing and with gains, to the recovery intra-Europe travel X versus travel levels. regions picked up, most Europe. in improvement outbound seeing XXXX Travel travel Asia inbound from a we with of The travel across hovering the ago, Summer into continues at out U.S. at along CEMEA quarter. pace ex is volume point with years the

grow to in quarter, million continued $X average businesses billion back and dividends. distributed stock services almost $XXX In value-added bought an and $XXX.XX at at dollars. third XX% flows the new cost Our of approximately in in constant we

We effect escrow litigation also stock same added a buyback. the the million as $XXX which account, to has

lesser the January Adjusted lapping U.S. and Now with of on grew generally for Debit spend March price significantly to excluding card at average the XXXX. up volume, and, in The rates post U.S., March food decline grew X% X% growth volume and uptick details. in size. fuel are growth by increase spend fuel, In a a X%, step-down in extent, and year-over-year. travel significant transactions payments we February X%. processed X%. U.S. was in stable credit spend grew Omicron X%. last a travel, the by saw grew card-not-present year, due U.S. growth to presence X%. ticket which U.S. line category, card present declining drug. goods, U.S. to in most was in since When sizes at in look retail was ticket driven

know, year due reopened prices spiked prices spiked and chain you commodity post world Travel As to supply bottlenecks Omicron. due fuel Goods Ukraine spiked to the inflation. prices last the as war.

spend categories size Excluding growth March. remained four is affluent from to across spend ticket all spend bands positive. low Consumer these stable average since

Our far. segments. driver to we believe together, volume inflation consumer remained U.S. has March any not Putting and since is this consumer data change primary growth so resilient moderating indicate all the continue of that the in across step-down that the payments did behavior

America dollars, growth were volume rates constant international Latin up the quarter the international payments on Moving in through markets. strong markets. was In XX%. major to

Our CEMEA region grew XX%.

Russia. the impact Europe of XX%. lapping now We’re up was

XX%. UK, Europe the Excluding volumes grew

XX%. China, Asia Pacific, up were process excluding grew XX%. Global transactions

Adjusted intra-Europe, Europe, volume, year-over-year, Constant the XX% Cross-border within purchases, up up excluding with excluding were and year-over-year card-not-present spending above grew travel cross-border in digits, versus XX% low and excluding ago. rates. cryptocurrency X% pre-COVID growth dollar grew double for growth, XXXX. cross-border volume X XX% in line e-commerce transactions year-over-year years

X more excluding spend, from QX, quarter, XXX. travel-related to travel, to than years up in travel ago, Cross-border almost excluding intra-Europe, at June. the XX% cross-border XX points Asia into up to improve, for index Asia from Travel XX XXX while The was continued year-over-year. indexing grew went in March out intra-Europe of XXX XXX to points

but below geographies Travel recovery mid-XXXs remains China the XXXX the travel continued XXXX specifically, inbound XXXX. U.S. cross-border strong under from levels. Mainland to Looking at improve index be to in all to remains just levels. The well continue outbound to travel sluggish, still

this ago, X XXXs. strong XXXX While inbound strong, and inbound. the XXXs quarter, Travel the and in levels. travel to to robust In outbound the and XX XXXs low Latin remained XXXs indexing eased some also for the mitigating index Travel pre-COVID low for than inbound XX intra-Europe, years the the to of the from quite improving low the of versus points XXXs XXXX indexed more remains quarter, CEMEA outbound, excluding in the into the America very in dollar relative Caribbean out factors low in and for second levels. remained improved points with Europe,

to quarter and a Moving more financial rate results. XX% revenues constant second mix of dollar versus review business Service payments in by quick grew third was pricing. the XX% volume. quarter offset than growth drag Exchange now

the was which intra-Europe. versus Omicron grew International constant were in helped and fees growth. the revenues transactions drivers performance fiscal dollar XX% pricing. As a cross-border XX% and volume ‘XX. volumes reflect versus in value-added transaction revenues of have Russia excluding up Data fully lapped year key XX% were impact, services processing payments increase They by a quarter service growth, reminder, quarter processed second third lapping XX%

to Revenue pricing, in revenues well and Consumer revenues, transactions volume was volatility driven incentives growth volume growth growth line currency primarily by engines. gross Other our and as in our shifts. were due with Client volumes. growth robust growth three Revenue exchange domestic services benefits. declining grew cross-border expectations. XX% rate led payments growth across in growth stability card by lagged consulting of as was and XX.X%

up constant New Ryan XX% an a transactions were system. X and and client internal Commercial in dollars. years by Direct PXP XX%, in XX% revenue transactions mentioned, dollars as were bank grew Visa ago. volumes that its to transitioned grew X% constant flows domestic over ledger impacted

quarters, could impactful to the it several impact is be While over be next to expected the to transactions revenue minimal.

XX%, Value-added constant decreased past primarily expenses services additions dollars over services Non-GAAP volume, the in pricing grew GAAP actions. operating and XX% revenue personnel driven expenses higher select year. from expenses operating grew by by strong advisory driven X%. headcount

higher rising was equity million, from non-GAAP investments from interest our Excluding $XX $XX to of income income million, benefiting non-operating due rates. gains

Our non-GAAP from $X. XX.X%. was over EPS the X% was GAAP and point dollar. X.X strong drag inclusive rate last year, of XX.X%, EPS tax was nearly Non-GAAP up GAAP was a $X.XX,

definitive We cash, conditions. closing for have in Pismo to signed acquire customary agreement a $X billion subject to

payments with to not II REG financial keep billion timing up will credit years. impacted XX%, posted and for X volume of X%. In May, revolving respectively. $X Through U.S. X%, volumes and up to it X We weeks we X Compared debit and the upsized measurably ago, renewed so you they XX% facility our years credit far. are has closing XX%, on X% up impact. and was up first July,

the In Europe, cross-border markets dollar grew ago. X about X cross-border Process XX% years world, several years grew was over were volumes third about about the within quarter. ago. key was and ago. XX% up XX% growth XX% XX% year-over-year excluding growth Constant years around Card-not-present ago. years in X XX% with Travel-related volume, transactions was line transactions non-travel and X

stable quarter. volumes fourth in the the for globe. remained domestic Moving now to Growth our around outlook payments

recent and quarter. of for international key will U.S. we’re trends the assuming the such, sustain markets the in rest As

and to has steady the expectations line The been each recovery to On of rate travel X in trend generally index excluding travel so at quarter. fiscal improving a for front, XXXX, intra-Europe, the ‘XX. has year with far been our cross-border points X cross-border

are and to out Asia, of assuming into region pace recovery is Mainland We monitor fourth this closely the The in of quarter. especially travel China. continues

very the trends It saw just we to the adjusted currency rate the year-over-year volatility. quarter, moderating, cross-border and that growth XXXX, Also, year. slow we’re as as quarter volatility continue lapping the to third business fourth even to we recover is is currency relative On front, last continue important will the for recent volatility note now cross-border e-commerce to are down. also in continues from high assuming crypto-related

services new than be value-added remains and business. In Sustaining of to consumer faster Our XX.X% a at critical these gross the for to high have percent flows range. expect our the incentives XX.X% much the faster XX.X% to priority. businesses to fourth we quarter, grown a of year revenues XX.X% the businesses as finish growth payments rates between end

this we minimal slowdown quarter recognizing growth quarter all by with shifts. expect in three expected and year. factors: moderating in fourth high lag The last very from cross-border revenue fees, dollars slowdown around service pull the When sequential growth driven reached is XX% you nominal in the together, impact net volatility rate lapping of exchange levels currency

million results the previously, X lower indicated fourth year. from last interest be fourth acquisition-related will in offset quarter. QX income our by we from in the Non-operating As than exclude more certain around items the expense to X cash balances. earning income non-GAAP rates will from will likely QX. benefit we’re Interest than points expense cash growth continue on quarter to Non-GAAP attractive operating $XX another from debt

in to remain is the expected rate to range tax XX% Our QX. XX.X% in

despite layering opportunity quarter, EPS deliver of again services. demonstrates the mid-teens revenue business, value-added that This double-digit drag. to slowdown opportunity remains developing new large globally year the concerns cases on our rate cash the available will digitize and fiscal while resilience growth and vast expected accelerate exchange additional by fourth the the our Assuming to use growth net an in about once a and we low growth performance ‘XX in

of with times, grindstone. understand, I I you. also almost To support. finish, a on a our delivered Visa. To journey trust as for started fell as September earnings my will you in call Hopefully, to us you of last all you as use the the and some this kept XX thank nose century At all of be CFO This last company ‘XXs. for ago. my want to toes our your is call exactly this earnings XXXX, I will of a hit I did term public entered cricketing years not CFO. calls. we’ve I

my will I double you, stands be of Ryan. the another Visa and and side goes, CFO your you, of the I’m Fame run together. finance to cheering switching going It’s Chris Thank Chris. On a October sure far team to the of great Visa, to over triple. wonderful lead in and team people And would as miss proposition. the as business from over I’m We’ve shareholder Ryan, as a invest that CFO to had X, as Visa. Hall no

it’s for And Q&A. Jennifer, now, time some

ready Thanks, take questions, with we’re And Jordan. to Vasant. that,

Our first comes [Operator Rawat Bernstein. Instructions] question Harshita with from

is open. line Your

want to current about just App, from for and you. broadly, on and been will comments of close helpful. we afternoon, Good think thank have have which the question. also yours interchange. to ought App. Cash my And I should And about benefit they talked Any Ryan, of Cash the the taking partner be on about the issuers how you lawsuit. with Block Visa They ask cards all there. fin-tech lawsuit partnership the you Thank relationships you

Yes. the Thanks for question.

across wonderful elements, as different many with Block, mentioned. partnership a have We I a deep relationship

class it by to XXXX. As lawsuit, in new the our The the And the is nothing MDL is under in here. share really the some lawsuit There is there thus, market itself structure. covered confusion included litigation lawsuit. relates lawsuit was the

put them. all with deeply feel I way about here. the And the new relationship nothing category the our extended and your deep question, and the value back to with in Block would of great have we we of So it really beginning partnership

question, Jordan? Next

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

open. is line Your

quickly on standpoint the value-added I second. base penetration real evening. for Good of services just touch wanted Thanks. a from to

clearly around or yield so net it’s the enhancing. think company’s It’s revenues. of I XX%

So it, existing it terms it like hard much pretty business. penetration of seems room growth, kind time like talk Ryan, for pinpoint you and sounds where within you large business. about of so is a for But in every are us to there it’s your

quantitatively So you. be you frame that Thank any great. way would or anecdotally could either

the Yes. services runway truth the our I the of are all – to all have the mean TAM. journey of terms penetrate. enormous We all question. of is we Thanks for the at they businesses. They value-added have in beginning enormous across have opportunity to continue

Acceptance or In about whether same with Acceptance talked have I identity Our they have and all really TAM. mean enormous business, is opportunity enormous Solutions DPS and mean on it’s risk advisory. runway it the or of businesses close when – we’ve that we I Visa that with thing deal, are Cloud, CyberSource Verifi amount issuing, now Pismo there. the we

of We’re in runway we running those of the anytime. out very businesses early innings close of don’t our anywhere penetration, in and to any see

you. Thank

Jordan? question, Next

Craig Maurer Our from next FT comes with Partners. question

line Your is open.

Craig, there? are you

question. Yes. Thanks the for taking

the enough quick unmute button. wasn’t Sorry, on

So Thanks. global comments to the and investment ask the my I to to to globally you system networks the trends I a can that into what networks? indicate be that in for Direct which from of heard wanted clearly them. or advantage was LatAm in domestic domestic seeing about you’re Your the been And capabilities. to levels follow-on why the call transition leads loss toward to client of is, of an Visa discuss I terms take moving seemed of an away what internal the in think greater there has acceleration beginning back payments the might

for thanks first. Craig, one two questions. I’ll the the take second

benefits continuing investment the of see the world. around all We our are to

is to and is space. is helping use cases, that which coming you consumers Visa, domestic in digital in in us mentioned ability believe, we ways prepared what invest countries preference different their in new it features Visa. issuers, shift in happens And and what’s remarks, to back consistently shift seeing versus to I it security schemes. to But our my win we’re share As said, tokenization different the

to you’re It’s If we part of Direct. like building days are very a you the go question, Direct. back platform in early building to first types of when Visa of going are new these your things out the happen out Visa still

mentioned, opportunities We’re that we they all great. use as find try I in to started start as to they there platform, use this build in as situation ledger coming they’ll is quarters some journey In originally. find and the over on then going to And But their ebbs as of that And new building and efficient than platform to Direct. they and case our the different be they and the I America differently. listen, to going grow Direct others have and think cases, the expanding for didn’t faster reach cases going to others geographies journey, for we to other flows. they is way that mentioned, of an partners use it be Visa they Latin that They ones, continue has found is it have. to work that are going and different of business and of cases. what out found I use them that they the it talk of things do. more services using in years what were global and get working that Visa a And to There internal don’t, use system built they they’ll our stick going that’s be a use that things a number

Ryan. Thanks,

question, Next Jordan?

Sakhrani with question KBW. Our Sanjay from comes next

open. is line Your

playing general very the trends the Vasant, been they have in economy Vasant. And different when over things course of we the in XX July the Despite next And you. views Thank But and the out months, you of as concerns or obviously, across choppy see on comps and how you maybe preliminary look or anything you mentioned terms disinflation, the congratulations, think to out mentioned parse get of look XXXX? the year, trends, as we at categories. the about encouraging. we

stable. and along Yes. used general we’ve term things the very I think Sanjay. is Thanks, all we still stability, mean are

it’s growth, X%. very been transactions at look U.S., in around You the stable

Omicron or you we the Clearly, pre-COVID If go transactions I about next you had change into trends first back been to growth year. of uptick just for to we want in some to quarter, and adjust quarter very stable. trends get trends, pointed talking last think don’t the I size. has ticket

that Chris fuel, been quarter, hit normally leave are do – the in about October, to next ticket and will more size comparisons the biggest we more to has which and fuel near-term, year. fourth is the talk Ryan But moderate. in We going when to

the are in quarter, us in we’re have past seeing a trends our been would the where In unchanged from months. and the general, that bit across expectations. several And help I they the that’s for board so fourth should say reflected

Next question, Jordan?

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

open. is line Your

Thanks. the of I Visa to about to from ask surcharging. luck wanted you. actually lowered X%. Vasant, X% cap know credit surcharging the on recently best I card to

surcharges, to implications should Just so, that in this there for considering a a more surcharging? whether we is are wanted If response trend might from Visa any manner? to non-compliant employing know, merchants or of be a in be compliant

then and great because referenced choose that it made some we it, world, certain customer jurisdictions to that considering. The the It one. won’t consumers ability in pull on to not you, that, small adjustment it. No But get you Many merchants and don’t surcharge. and do to a experience. implications in was do you choose we that surprise to the do U.S. choose should around of the be course, feel have they back great it’s

and it’s do Just was when that’s sure the and surcharge, equitable, consumers the that something of get change. purpose that making fair

question Jordan? Next

Deutsche Our Bank. question Bryan comes next with from Keane

line Your is open.

your it’s earnings Hi, about call, since ask to guys. incentives. I got you Vasant, last

at an on got out to question, least. go incentives You

as takes that just of So there more the are like towards and range, incentives this that high the look activity it to going fiscal towards volumes the changed the higher incentives be they the the different puts end end. pushed end? or high towards deal year Was

in general, what it’s I in with incentives, for well, mean were those nice Yes. I things. expected. on thanks – saying – line we they

the So on there focuses there. percentage. And everybody surprises incentives, no were

Even with and the we healthy drag look another in is added net If exchange would growth were what at XX%, drag, counts, exchange we rate revenue rate you really growth, revenue quarter. had point. net the the have which almost

earlier yields, net ago. some were expected. we a did We higher you they yields are If look happen than at have revenue renewals than year

QX we happen we’re have come we would year, about did that next this renewals that. year So might but thought into happy have some and

if We’re do a always to it earlier. we even renew happy clients have to little

all So no there. in surprises all,

Next question, Jordan?

Lisa comes next Our with MoffettNathanson. Ellis from question

Your line is open.

to Prevent. Good follow-up question types Can I Vasant, wanted the missed. elaborate afternoon. And be the you have are taking Chris. These eagerly Pay.UK prepared on know welcome, around you a to more waiting call-out that? of for remarks with been we partnership see. and the on RTP Thanks services all on bit I will my value-added

can about pilot, and the how that will it, you pilot and little the longer is a monetizing over be Thank what exactly scope in more talk service the you. of works So, of then sort if the you term? not how

Lisa. Hi thanks. Yes,

can as we how networks, to the talking have RTP expand one new been is it starts is things we about of world. grow services around build and for value-added it for specifically the So,

the it guess core to of works So, question. I your how

what all, score. we of real-time have done a is first we So, built have risk

built been a what data real-time the that banks for. to payments an cases proprietary it And able is be it scores things. to is we payments, they automated to it in kind most XX. time, how data score. often with well score it decide be on are directly have capability risk where of bringing the have we the information, X decisioning algorithms risk how learning work. comes most of networks to enables or very integrates does instant what real-time of It to it the the bank’s there see of as leverages real explains terms using fraud transaction is We built of for world It’s it AI our their is us types deep our models. have these tools. approve enhance Visa market in to whether does of they one fraud algorithms code unique risk used types it of reject ingesting It existing banks their a with We are and it uniquely which instant we is that real-time that or from that use can platforms, systems payment providing the hungry our including their banks around it. those from tools, know and so Because benefits And into often that to them to integrates of and the and fraud Direct. us, into risk own as lot the And

up, offer have The in that examples this that world. – more. getting Authorization similar from leveraging if the Visa our we sheet clean the directly back and about about service that pilot you a can But have It’s very of bottoms customized So, system just integrated into as they is if days, think so it, way And Advanced time. that models we learn talk so to you VisaNet. early it’s on built back around we will AI paper, think to going. the about learning up, deep ingest we it report we more real will like hopefully, bank solution,

question Jordan. Next

comes question next Citi. Ashwin Our with Shirvaikar from

is Your line open.

volatility it Like or Thank welcome quite yield say, Chris, years. things that. point, about for you what’s from, and I ask the to help structural services. this had congratulations, sort and gentlemen. wanted episodic? call was that. like of past, leading more thank you it there value-added the partnership you Also Would ask over wanted Revenue Vasant, is or incentives, FX your benefits you at in to solid and to and

the question. that’s So,

would FX affect value-added revenues not in services. volatility Yes. We services. our value-added count don’t treasury

things. from and benefiting are services secular value-added So, structural

existing penetration deepening it’s First, our clients. of

concerted to more a effort clients. to services sell existing it’s So,

were operating Second of services is some the globally. not

around the services We available are world. these now making

adding to of know, the been So, as then clearly the market. it allows services us we have scope increase And you third, over time.

this is So, us. long-term engine a for growth

it services you value layer goal the can hefty Our And to it can on think you and more a the to transaction, to the clip. add get and it. is about a at very can you on continue more as, yield get to transaction grow the more

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Jordan. question Next

from next Ken Suchoski Research. Our with Autonomous question comes

open. is line Your

is everyone. the how more this talk wanted some we question. cross-border. saw business. for to this quarter? side to about evening of fiscal on Obviously, XQ is going just be shaking headwinds to about I and this you taking think Thanks. Visa Thanks Can a of fiscal much in XQ in Hi. headwind next the compared what just you past year Good ask yield

Yes.

last currency high now year what Currency call at But the exchange we higher I was down, rate yield way yield, higher volatility yield it last year, looking the it right know is our it was value-added are extraordinary transaction very just on there about think we the on translation service, the revenues, services long-term and year, rate little a right is is the than provide. exchange to translation you is and XX% revenue dividing the to is volatility the was Where the on to has treasury services highs. then So, the because now. at and because last gone by correct, it volume, yield the XX% there average. than

And are down last XX%. are levels where In we volatility last of almost volatilities highest currency year. today quarter, volatilities fourth will fact, the reached versus in on of lap year, based the some

So, it’s a sizable move.

yield of year. not volatility. decent. any based because very to currency very just our It’s fluctuate it is that cross-border steady. still you yields, It’s line going that And revenues. see in high So, It’s it’s last from remain was treasury really, core difference which on

Next question Jordan.

next Peller Research. with comes Darrin question Our Wolfe from

open. is line Your

Hi debt tracking is year, and Visa a out I guys. below XX%. XXXX, deal, at Xx. right And know since XX% cash Xx paid I was now Visa for time, net of and Last little buyback, think frankly, you. about income the is the generally since Europe you buybacks. gross pre target to Thank your about net the X.Xx. bit light also first

So, think pretty to you in I catch-up big a need quarter. do this

capital to market want just guys? a pace, how to Ryan, this versus hear a other I in the allocate about to as up ways, the Do while. you are why pick there you multiple reasons or you curious been see opportunity allocation. lower is would good guess So, different for thinking Thanks capital again. buybacks are has

cash It of billion do almost a generally it’s percentage add. I between there allocation is now. a capital a set maybe to no No, certain has is use dividend. $X of which free Yes. our gets a certain quarter will pay a range of flow. EPS. The criteria start dividend certain and buybacks Ryan in and can We we change yield, strategy, out

invest historically doing and in that priority not And have we to business sense. do We acquisitions clearly, both. to core do as been see, our is And borrowed buybacks. the to first have make can you

to the we contribute of buyback. In volume the escrow million which buybacks, to terms also remember of did that $XXX is equivalent account, a

billion you year. if count buybacks. right, do if $X in, capacity I this that So, more Clearly, you so if remember we are we have buybacks, to want probably around in far or so

that have felt the at borrow our money made would trading if we did was stock and said and that if was be to willing We disruption a value, up that step levels there always in not we market reflect buybacks sense. intrinsic

you if we will plans to keep change. want posted may our add any some So things. of you obviously, Ryan,

Vasant. your comments, to very to well-said Nothing add

question Jordan. Next

Truist Our with Securities. next Andrew question Jeffrey from comes

open. is line Your

next – I part driver appreciate efforts sort been the pleasure. I to you growing pretty of than as taking It’s non-consumer best Visa you. think about new business commercial in flows, of is see Vasant, of the what on Can know should you that and question commercial to you opportunities and it we your luck growth. And Ryan, slower bit that the important quarter, I the was wanted making. a business ask overall years? pipeline over some the of little it’s this few and the the a of volume. about how just comment a

general. excited BXB in we the enormous scratching and surface, for TAM, It’s Thanks very about remain an the of Sure. commercial kind excited about and question. very specifically. are We we just are

as we We have about on have the business the talked the commercial largest past. planet, in

lot which Clarity, management, I Spend into world. enabling think Pay, numbers around we space. expense innovations the the is volume, our have control. $X.X of of we that been of Visa have Visa done in released neighborhood and we helps trillion helps payment the things clients Commercial acceptance in There releasing market with of which it’s with around a have

about So, it. we feel good

have the some dynamics the of similar to year, we as think we fuel to impact space that that great the X years, in years, are that we putting never are more we have clients we well. getting we types the space, the seeing product as over X volume, you been And felt opportunities market, about excited feedback the are about years, and seeing our we from what from As in next X in it X have the years, are the got. things. X the and better of But never have consumer commercial relates are those we

question Next Jordan.

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

open. is line Your

Hi. Thanks ask wanted for my follow-up question I to Vasant. to taking Reg on for you congratulations II. and a

kind Brazil to that or seeing and vantage choice You in not point, mentioned am wondering law merchants from impact that’s seeing of midst tax impact are that no an then imply am your case. routing you any all more yet. just from the if changes did rate I we I but guidance the are and quickly would now double checking broadly Mastercard, tax still impact your just rollout. recent whether the available separately, of implementation And just

part. with I happened don’t take lot but been has that will I of and also the Reg a early Vasant the happening. there first ahead still date, It’s July There second part let Why II. is – work the take work days of X

route we on many our ability going merchants about excited space, As we be still it confident think – are to Visa. to are compete choose to ability our We to and to relates our to in to that compete. very views the continue

fraud liability in for you know, bear merchants e-commerce space. the As all

we of them decisions, with not terms when a a just way it’s risk. So, managed are they help in making we And lot merchants bring the decision. to cost-based

tools, are that of we use We messaging key by know, enabled space. e-commerce enable have And have scoring you advanced fraud a capabilities. in advanced as the cases lot functionality also product to risk the dual

there and on of is it will a good – compete. happen So, feel you course to we the many very how are still over And keep we months lot evolves. the next about quarters, we ability posted and our to going that’s

Yes.

Brazil. On Mastercard to Brazil was unique change no ask from to topic, it the standpoint really what relates them, as our should you

question Jordan. Next

with comes Chiodo Suisse. Timothy Credit next question Our from

Your line is open.

Great. being you but a I to you the the for Vasant. for Thank bit, taking and for is want a this for gentlemen all the little always dig thank Vasant, you, over years. question help actually question

revenue international and coming that could between the hoping cross-border quarters? and about how was gap just plenty. I other ex dig over quarter a you and part drive talked about nominal on the mix that the should FX basis, factors gap, the On inter-Europe volumes nominal into about you a volatility any pricing little bit those meaning we think

of largely Yes, to we had it volatilities more the volatility-driven volatilities normal are getting and now. you. we year Thank very high last because is Yes.

talked that, is always FX the Beyond FX any there P&L. impact volatility that. other that, is in some I it It on exchange and have some depends There corridors mix all And other about, from bulk is would than obviously. there factors. we by line But are than two the line is rates. more affected that. of the and always That say always impact,

thank Vasant, you.

Last question Jordan.

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

line is open. Your

in a think you, mentioned Just that in infrastructure here. tech the thank on Ryan a spare made Pismo bit. Last I shipping ask thoughts. on about Is any the and thoughts okay. that your to I are so say? I much. me I that my bit mentioned Pismo that. love and your you you a indication ask question, way buying – instead that to gives touches little gift faster you get Thanks. am faster? you to an owning curious widening question. will if so products like that’s so Ryan, upfront Thanks a to Hey. swim think in your would Vasant. Pismo macro develop and remarks lane won’t feels fair That’s you, will for is you interested little way Is that I It Visa chance consumer products products, more I

are is do our for what are solutions. And certainly starts innovative those. Hi Processing looking I What mean trying looking API-based of increasingly is with. they it that’s where serve our are are is clients processing one we services. clients. They cloud-native for for all Tien-tsin. to looking

the their have of transformations that from many digital are around We them processing heard clients world embarking on platforms. in

an them, kind it all to. can of the the tech are on were customers. to around so opportunity Pismo. and from when of studied that of the process help companies. Tien-tsin immediately their how looking we deep, And met alluding That at the with we that is use our players increasingly best. yes, expand serve the to us example, And thorough them. tech can through buy for how clients, lot a the was of customers, work them. we that we looking edge leading globally a We to and identified We serve global And clients could literally we new went get hear identified after of that different you Pismo is hundreds as leading a We type platform, scan, dozens clients world, we our player for. help deliver this And cases Pismo their in

So, are we it. Thanks excited very question. about for the

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

have again, our join have additional great to in please free e-mail Investor call wishing the best. team. and feel me please questions, If and or Vasant a Thanks Relations day, you

Thank participation you in your for conference. today’s

time. this at disconnect may You