Visa (V) 24 Oct 232023 Q4 Earnings call transcript

Welcome to Visa's Fiscal Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. [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. begin. may you Como,

afternoon, Full welcome Year Good Fourth Visa's Quarter and XXXX everyone, Jordyn. to and Fiscal Thanks, Earnings Call.

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

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

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

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

joining and you for us. afternoon, Good thank

begin, life we Israel suffering wanted Before Gaza. to a and and in loss tragic to acknowledge the moment I of take

throughout our to admiration constant the in Israel challenging their exceptionally the time. other We are region, clients have teams and for in I contact each with and commitment and deepest their during this

prioritize situation, ensure people our of monitor and to safety to of continuity the to the business our close continue clients the operations. We stay

volatility, Total of X%. XX% XX%. inflation. to also GAAP Omicron were in many fiscal the up full with growth uncertainty EPS backdrop, early operations year and delivered. effects Visa Turning in suspension a There up fears the around with of Credentials non-GAAP noise of rates there revenues FX, grew Russia. macroeconomic XX% of net now Against XXXX, was in grew that a to our the XXXX around and some interest lot due There EPS of At results. our beginning and the recession. was rates unknowns environment

XX% XX% U.S., to we year and last billion And in transit year surpass systems. points from to cash companies surpassed and up credentials systems XXXX, throughout also We million with penetration including this billion, to XXX Solutions. our were signed transactions than and nearly such were transactions, Merchant bringing ride included added also than partnerships early-stage the of versus means fiscal times Visa to the average, pay were a the transactions, which helped players payment commercial XXX by Bangkok, up on from year, of full XX%. over mature face-to-face tap Philadelphia growth excluding new up the total Global XXX points used, Total More X.X for launches billion day XX%, more XXX America during year. We Global to globally footprint XX% growing grew tokens. XXX that value-added expanded system XX last to transit tap over and and U.S., locations fintechs our X.X strong in X in the as Latin year. transactions. year Acceptance CEMEA. penetration, the were XX%, services,

XX% the year. was note I'll new dollars On total in XX% few highlights. revenue Total trillion, flows commercial constant for the a $X.XX side, grew up full constant volume dollars. in

intra-Europe hundreds to and XX% of year XX%, number new average, year-over-year revenue quarter in overall strong billion XX% record than our X%; on PXP quarter. Value-added clients this the reached our and momentum products volume Cross-border for dollars: activation growth XX% top in a services net of travel XX% year-over-year programs than EPS continues Visa this grew happen We cases and with by cross-border volume the all payments on and transactions movement. transactions, to progress highlights with who of levers, transacting from XX our number over year the drive Across fourth following clients payments products banks grew than we we process with cross-border on grew use more XX%. in Visa average. continued year, Direct XXX banks the used and BXB the more by Russia, products, volume With X% have our constant XX%. Across payments have across grew were versus transactions XX% X,XXX nearly used international X%; payments last XX% XX-plus and of up revenue innovation full the and in helped and money excluding enablers. for up U.S. finished growth up year-over-year; Connect the quarter from of signed to performance, had Other increased constant growth that fourth doubling. excluding GAAP global XX%; of grew volume largest XX up all X.X volume XXX more XX% fourth include dollars. grew

As I to services, Visa, why our products, choosing of partnerships us our flows brand. new our a tell capabilities and their us for are when they reasons, mentioned quarter, clients with number our including value-added last and expand our asked our deepen people,

X play We continued to fourth quarter. and in I'll highlight see some that walk our each out through examples.

people. our First,

who and and they local outstanding grow support clients the the deeply business, clients tell on our laser-focused best that team from We value us helping partnership the are teams their have our advice, businesses. our in

across our ecosystem. and U.S. leadership appreciate complex commercial industry the have States. important portfolios. clients in one Our with was the They agreement quarter Bank, of thoughtful renewed consumer our the long-term their largest issuers example and on for this An United also issues

members. value-added recently whose fast services. In co-marketing million relationship are on are relationship to we an in Also pleased NFL we U.S., are X.X XXX credit that we long-standing and Brazil, and issuer U.S. very nearly cooperatives and FNBO across system top engaging include sponsorship. the expanded or projects renewed with commercial consulting unions consumer, services leveraging have growing, and reached our cooperatives addition, XX In Secovi, our with spans

our help our people, innovations and consistently to addition win. products payment us In

their We next-generation and customers are solutions payment and constantly their better innovation businesses. enable to grow experiences driving that serve our delivering and clients

terms of Colombia, country Nequi, holders pay the in In partnership the to digital enable expanded in million-plus we capabilities for first to tap with credentials. their our account with serve to digital XX fintechs, wallet our

also high in targeted a mass fintech offerings offering In for We signed are for affluent focused with on provide for we certain customers. customers. worth offerings customers. that market-leading have credit and Appify India, consumer for net delivering With we affluent mind,

our rates fintech And in and convenience payment greater securities, expanded traditional the with We mutual also funds Razorpay to to recently versus purchase methods. to e-commerce Visa offering with our higher success cards acceptance and debit Shopify renewed enable Balance like customers access funds we expenses space, cashback everyday and business the for by seller business day to U.S. Card, sellers agreement next marketing. on receive sales with shipping the allowing Shopify's from

We for new small business credit. also issuing agreement a signed

our and, are win. They help in provide innovate Visa. management for turn, helping services for drive value-added grow, our us risk Next, and clients solutions outcomes and them better

CyberSource, consumer issuer CyberSource initiative has of renewed portfolios. In transform support including Our resonated selected China has and new their acceptance sold Mainland really of process year. U.S. lobby its Canadian acceptance Costco including e-commerce countries. small experience. airport Acceptance to with CyberSource, payments over the North in the Visa We this to their clients services America, for Pacific, China, Solutions, Airlines Merchants more Alaska In XXX their has chosen all have solutions, Asia in business and largest transactions. kiosk in than Bank, X,XXX

also agreement more largest of allows FY as services. offer In In 'XX essentially have will addition to we issuer America, on VAA This and with the of by banks signed processing end our our Colombia, under penetration us us of domestic of from consulting also Authorization XX% more reach their to it our Service expand our value-added Visa services have flagship Latin VRM. Risk to CredibanCo, Bank addition our Manager, market's been the the Advanced use focused to and X expanding processor. nearly services, Financial China expanded they we management X risk have transactions Aon recently use XXXX. and on acquirer and penetration positions In through in Japan customers. to Visa processing strategic in of

services, X value-added acceptance of anywhere part have and As services. XX banks from these added agreements, risk including to

As is can Visa became QX, continue solutions collaborate with now real-time few funds service, processing both to follow and institution service the offer of to FedNow. Visa payments in with Visa This in certified receive with capabilities with origination network real-time our in next our for we In of follow. recently service FedNow RTP a networks FedNow. financial strategy, that payment the means part months. our to FedNow provider clearinghouse space, most the Using clients the through

clients. which to on increasingly capabilities, our Now differentiator our are important flows an to new

over with are business, agreement we have more long-term value-added across commercial for Citibank side, card their BXB XX than the On to also expanded services. XX an countries reached encompasses global pleased which

won We Southeast offering also spanning the with commercial new to partnership into consumers XX Citibank in the commercial and for over with card issuer. countries, business programs also recently products our expanded Asia, In services long-standing meeting bank the T&E, we and commercial businesses. as for DBS, card IBM credit renewed Singapore, largest in small purchasing debit continue and

remittance to to agreement total On we reach reach, endpoints. business. for the X.X over the billion. Direct with wallet Visa Visa an wallet continue Direct bring the will expand Tencent side, to Direct's cross-border signed Direct recently, Most Visa for we especially This Visa

We a and real-time send solutions. XXX U.S. Visa have countries of customer money expanded the our is customers Paysend Currencycloud cards globe from offering all Paysend's across and U.K. also to eligible compelling to enable cross-border to with partnership Paysend payments territories. across in

We with for and which and cross-border the value-added data Korea, credit, Direct for provision enablement in consumer Visa incorporates of the services capabilities Shinhan our remittances. in of also largest Card, recently the business also renewed issuer

payments their deliver marketing strength enable products payment the and added ticket but and pay. financial innovative well new merchants customers, Direct low-value, services not wide also as high-velocity cases payments Visa use continued RB payments Direct. And cross-border part platform partners have will clients partners to We with Visa's everywhere corporate brand be Brazil, with Banco range value efforts. small In with for BXB enabling as In brand. add last Visa as such our and a Direct certainly and of institutions, banking their Visa through and bill our U.S., will of as brand business. to least, helps our bill

FNBO. to and new for pleased are be issued co-branded by agreement that with payment exclusive an card Experiences will have credit We the Destinations to Universal be network their signed

for provide In we Investments way have co-brand addition, the to Visa recently credit Hollywood Korea and loyalty will is Experiences. and Saudi in signed And in And of pay U.S., Visa with properties. Also inaugural with Etihad Orlando Coupang, have their to retailer with co-brand with the XX together, benefits portfolio customers we Fidelity Riyadh signed we their renewed large Bank. our program U.S. compelling Airlines issued we Etihad we the cardholders and Airways. Guest, the Destinations a CEMEA, co-brand a across co-brand card. million And partnership now official in Bank, renewed at Universal by

and provide an experiences. provides we also our a and activating clients Paris showcasing look be for and which The brand at regional engaging business brand XXXX Movement, games Milano consumers been the at we're Games. Cortina clients clients. excited the XXXX, platform partners facilitating XXXX to initiatives global Summer the of innovation and Winter joint with to unique partnerships with and opportunity and has and Visa As level proud unparalleled Paralympic sponsor product while with promote Olympic exclusive a ahead, a and Since Visa Olympic

few to focus are for particular a looking highlights our have and games, European recent on business the in building the been Europe across We continent. I'll forward the a we share with upcoming business. momentum

in and past market. new the since Visa the the workforce expanded over have value-added flows, a penetration. years XX than capabilities doubled XXX transactions local enrolled In our enablers client new our On And XXX products, On years. X and X locations in products than service In the the through front, than over payments doubling people is more and alone, more and expanded have years into programs and than we past innovative Currencycloud. have be the in of and additional with has nearly of introducing services, clients increased Tink business, well more over X we acquisitions we we doubled number ago, our X Direct have have over relationships fintech in will XXXX. has X,XXX VAA more the

nearly cards We attractive XX% have pipeline since continent building across position uniquely the deals on have the Europe grown Continental an a each future been market. Active have of and steadily in strong by XXXX. signed competing for built

to Over And more portfolios nearly million nature the of XX in are Europe tend to cross-border next few years, in migrate the more clients. Continental we resulting we winning across the than higher expect XX volume, cards yields. include

capabilities, all for So and financial our our milestones these of performance. our people, solid had clients. XXXX brand, difference make many a Visa's

now As we but X I make would and a into we detail. fiscal I in uncertainty, year it. into our will is just Chris through to then that go 'XX, weeks there like manage few new like can are macro am fiscal general year, more still confident points, One,

and strategy flows stockholders are for next as B sure that focused and we exchange appreciate engage and that potential consumer X-K with offer focus stockholders. regarding program. that Board back in remain evaluating is on dialogue across you the the with Our had investors. our we've we saw A, propelling the continue new growth delivering to value-added and released we steps same: We light, Class September C services. Two, our In payments, an I'm

Finally, multiyear that $XX you capabilities, strategy continue in and, And may we to come. importantly, have announced and potential. growth hand repurchase strategy which to with that, I most let years share the our to seen the see has Board's program, propel me opportunity the brand, to our Visa tremendous reflects over our ahead. people it a Chris. for future today billion the confidence

Thanks, Good afternoon, Ryan. everyone.

solid with QX and strong cross-border click good of new revenue driven fiscal summary into QX flows services and start payments. our growing closing first healthy volume, value-added consumer with high-level I'll As of was payments said, Ryan strategy, and our a out in growth than process and another transactions by continued 'XX volume a faster performance details. more quarter, execution then

constant intra-Europe drivers. was dollars, volume year-over-year, XX% In fourth our year-over-year excluding constant payments minimal up with strong, revenues nominal were process year-over-year both quarter growth and Cross-border both from X% and volume QX. at was GAAP Fiscal up impact XX% XX% dollars. in up dollars. up was in to in and global stable FX, net XX% transactions up and Looking line dollars, in expectations. XX% constant was EPS EPS with constant non-GAAP our XX% grew

starting stable X% X% up process the to grew travel, debit volume, to growth grew year-over-year, X%. volume U.S. Credit on Now details, X%. at X%. excluding the spend and Payments and grew X% QX. U.S. was volume transactions was year-over-year card-not-present Card-present with grew volume U.S. stable

primarily volume Over that the as to course in of July segments from well easier stable has higher by across all spend ticket spend growth size remained with impact. high the year-over-year and gas March. quarter, fuel we driven tick sequential Consumer improvement low was a since as up saw September, to prices mix from comparisons payments positive growth mostly led by days

U.K. quarter growth CEMEA about total more growing in not dollars. up constant the indicate most in payments ex constant segments. In Latin was change through America, did regions Payments or Europe data any Our growth consumer volume behavior international major XX% markets, across in and volume were dollars. with strong rates XX%

XXXX grew spend volume grew line and travel in XXXX. speak year. Cross-border we volume consistent from from June transactions. quarter, up of Cross-border to intra-Europe improvement pre-COVID Now constant cross-border Total excluding XXX% most e-commerce increased a the index in grew XXX% trends Adjusted and card-not-present totaling with XXX% year-over-year purchases, in to volume the in XX% cross-border have for up travel-related for seen the cross-border The digits, X-point for dollars, X% with XXX% double and fiscal rates QX. September, spending growth cryptocurrency XX% XXX% versus was year-over-year. to low to year-over-year which the versus excluding in growth, cross-border, travel, XXXX. I'll

to of in CEMEA, and and volume XXX% out Asia points from to quarter, We the Europe points LAC, levels. of continued travel healthy see up levels XXX% was to ranging to XXX%. into Asia volume up while XXXX X travel QX, XXX% from volume at XXXX out Travel XX to indexing levels for continued improve, of

pushing specifically, recovery levels. accelerated remain improve the China XXXX Mainland relative XXXX. volume U.S. but continued all below quarter, indexed Looking levels. Travel inbound geographies continued this to outbound dollar index from travel continued the as strong the in at to time levels to be pre-COVID above for the volume to the XXXX mid-XXXs cross-border remain even strong to first U.S. travel to

versus and pricing. fourth growth process grew results. review declining Other XX% quarter X% revenues led value-added led excluding dollar due grew by transaction marketing XX% revenues XX% primarily year-over-year growth volumes, constant to to Now pricing, and growth Data consulting XX%, let's volume currency constant and growth benefits. our cross-border were XX% financial services, the processing revenues card in Revenue by International business transaction pricing versus grew in services up Service grew mix, due incentives XX%. QX volume primarily payments and the intra-Europe. dollar revenues lagged increase volatility. XX% client versus

into Now let strong was stability cross-border volume domestic in by engines. growth well volumes. transactions growth as X in Consumer dive growth revenues and as me payments growth process driven our growth across

drag. X-point advisory domestic increased higher an XX% had revenue. primarily to was grew operating due volume. GAAP expenses grew Commercial its we that last in services, were versus New growth, and X%, headcount, growth dollars primarily system volumes pricing Direct which as impacted grew personnel quarter's and in volumes quarter, to revenue XXX% a mentioned payment and PXP is client XXXX. transactions in select grew XX%. from flows transactions driven services revenue constant to XX% X% constant XX%, dollars, in constant dollars recorded were strong ledger QX. based in expenses a operating was and Value-added Visa by on and constant internal in up actions transitioned Remember dollars. nearly meaningful expenses that FX that Non-GAAP up X% not last by

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

tax provision. $XXX point our related Our an Non-GAAP rates. In foreign the the of approximately GAAP in the distributed and XX% inclusive and tax to a we $X.X EPS expense than of U.S. non-GAAP back benefit tax a bought in billion tax extension EPS credit GAAP from up income drag much last little was over line XX% to QX, $X.XX, dividends and was in rate due more tax XX.X% indirect stock exchange of in the X.X $X.XX. in million benefit was resulted which tax operating a to was larger stockholders. year, regulations, expense

$XXX the At to account, had stock we as buyback. remaining We which million $X.X the also escrow litigation added billion end has effect authorization. same September, a buyback our of the in

of an For EPS up year of exchange over revenues $X.XX non-GAAP XXXX, net fiscal the XX% and up XX%. of GAAP from drag $X.XX XX%, full rates. increased inclusive was X-point EPS was

Now year to let's fiscal move XXXX.

share will a had a in the comments. perspectives our make few we In as year, I year 'XX many close be we've ways, while. Before as on to want FY brief a to normal

and in We of overall fully impacts many to Omicron have markets. lapped inflation our moderate the Russia and continues

pleased will we're associated the updates. such, to outlook practices pre-COVID each update providing and for we time, will intra-quarter FY guidance we will the X-Ks 'XX, our with no which driver interim longer resume As be provide same our quarter. At

of seen in October. X impact X% was was days October. in through look let's step with driven fuel the from down what primarily and payment by X%. September at declining and the sequential both The weeks U.S. prices up volume September mix up credit Now debit we've first

growth XXX% impacted and transactions Europe, volume, excluding XX% volume stable cross-border XX%, payments to from Constant September October. within Process grew transactions dollar meaningfully to were XXXX. cross-border has indexed items, grew not year-over-year. volumes so II relatively far. travel-related X was Reg volumes those Excluding

Turning now to assumptions. our key

not yet we in we're at level, see also because assuming we've consistently, any in II not so outlook. forecasters, as and said repayments before, from no loan are a recession our I macro Reg we impact. student meaningful economic impact factoring As any We're and mentioned to

assumptions, more will continue to As regard information we to with these and gather provide the year updates. progresses we

transaction trends For China a low travel to improving driven and growth a volume year-over-year extent, digits to volume, X-point payments would we constant the This the quarter. improvement continue low throughout dollars that growth a a dollar to and AP and, in primarily expected moderate volume. growth inbound double cross-border digits when card-not-present process be lesser travel are the basis. the XXXX intra-Europe, ex each year-over-year will key continue low volume crypto constant saw QX be we year. is on the year-over-year in excluding assumption in travel travel in assuming on drivers, ex U.S. double volume to to equate generally compared by X- to growth basis. Cross-border are Cross-border, from Overall and improving XXs to mostly will

results and in presentation this In in means numbers I'll we you to the presented can adjusted for acquisition impacts, our dollars and the terms financials, as which speak earnings the in basis, an earnings what excluding of for review constant which on footnotes release detail. define non-GAAP more

Okay.

First, revenues. net let's discuss

for For net low current a the drag revenue Based full double-digit be curves, we the growth. X-point will FX year. currency adjusted on year, forward approximately expect

are but saw slightly We throughout relatively what QX a basis, expected slightly currency in On volatility than that the less year-over-year levels from are FY grow stable we incentives assuming to 'XX. year. remains moderates

faster 'XX. those consumer new continue FY expect and payments than we services, in value-added For to flows to grow

expenses. to moving Now

tax operating Our is FX factors. XX% to expected points to current to offsetting double is to to digits rate adjusted XX.X% between typical million million. with to The $XXX our due expected rate favorable Nonoperating of income some high to growth. to the in slightly approximately and be expense low be of plans non-GAAP grow are nominal single benefit X.X digit $XXX

XX.X% to have the hand, XX%. the our of one impact run puts which tax countries, rate increases new On to in rate we closer certain

benefits adjusted this XX% us growth full will related year. total, anticipate tax matters. second and of the EPS However, XX.X% together, this to all we the Putting between resolution half year the for tax some fiscal full put expect 'XX certain onetime half tale in also FX In growth. Also in from mind. the in FY in will variability drag growth X a second with about be halves the first of keep X.X teens to likely rate to nominal A aspects our point few the half. with non-GAAP to of we low

intra-Europe ex the second cross-border First, and in XX% first of XX% FY half. year-over-year half grew volume 'XX in the

FY second recall half. we volatility half currency Second, in relatively considerably 'XX, first it high and that the moderated the had in of

XX% half higher of performance. the Third, 'XX in due second the client incentives FY versus deal and primarily half were to first timing

As expect a adjusted revenue lower a to larger in we net first 'XX. FX growth also of the in headwind even half result, the second FY half FY This overall will be slightly second on nominal a than 'XX the in basis, be half the with first the of case half. than

On tax in and FX benefits to impact mentioned. operating But Olympics anticipated QX both half expense adjusted first to side, we growth the is I the onetime have increases largest expense is than we due The the half. the will expense year, and roughly in the tax Ryan ramp. mentioned, same the percentage be this expected to rate expect and the as an QX be lower second as

So given rate. to be specifically, growth I year-over-year QX revenues highest improving with the for expected at first is year, the adjusted QX have lowest and adjusted is net to the trend the an variables just growth throughout the rate described, expected quarter

items. Adjusted in to single XX% X.X puts point basis incentives mid-single that QX and three, acquisition-related strong point We was upper lower of XX.X% be other the between growth minimal of of from in than growth to in rate volume is World an XXXX. rate growth tax value-added This factors high to and revenue single benefit expenses first XX% Again, two, and the nominal first in mind. non-GAAP driven impact excluding run adjusted the cross-border a and is quarter were upper QX. expense non-GAAP QX nominal 'XX; expected other QX quarter the to by to to and FIFA due highest Keep expect and expected We 'XX; first exclude digits high mid- increases. non-GAAP services expense net in to approximately be growth basis. quarter due revenues in with operating keep few impacts. and on EPS in acquisition is net to headcount and one, salary FX. A currency closer litigation expected Cup-related adjusted anticipate volatility revenues to adjusted growth. The digits, performance grew as client the FX 'XX revenue, provision growth headwind new in mind of in approximately EPS digits dollars presented results the defined for constant and X.X items was And the

For estimated $X.XX million and costs finally, $XX results acquisition-related moving $X.XX exclude or the of million the capital approximately return. $XX FY 'XX, or approximately of from to amortization acquired intangibles. And

stable As repurchase Board our growth dividend are and and has the opportunities program Ryan healthy In quarterly multiyear by billion said, increased significant. $XX summary, authorized and business XX%. a share Visa's underlying the continues to be

the confident feel stockholders. our for And to to through we let's and uncertainties, Jennifer, in macro our be changing manage value to move business ability environment a continue there deliver Q&A. While now,

questions. Thanks, to ready Chris. we're And take that, with

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

Congrats on the quarter.

currency to ahead, the growth your for constant when Just year good double-digit the rate. thinking guidance fiscal about see it's

how services, some as about So of make think the inputs we to the as far you and new understand want growth sure I inputs just flows. like structural value-added

So XX% number growth assuming XX% the yet for more the importantly, of what same us then one, VAS can I a maybe color some on mean, you more -- new and of And those potential. little some give has it's you're the sustainably structural growth or anything company believe medium changed? at this the to Is algorithm right rate been of do you term? that's flows

Chris. address This Darrin, that. yes, let is me

I'll couple the say about 'XX a of guide. things FY yes, So

commentary drivers. will flows we transactions to payments both continue that volume see new than consistent I part process our and engine, on growth we expect be to First, the double underlying do that the and reflects services, which low payments value-added trends call business. consumer faster is the said in very of the also VAS, we underlying growing drivers, business stable as the shared, the growing be the in and digits,

which structure, you ways what to 'XX. that see so expect in described, I is and we to 'XX, in certainly many that's think And consistent

with from comes Koning question next Baird. Our Dave

job. Good quick guess ones. I And X

constant could then rate should than dive X%, lower XX%, Pacific how it? think to years, Asia that. tax was a currency volume that's And longer into normal. growth XX.X% Maybe basically little we in about you the out term,

I'll and then what you seeing maybe talk put the take we're the about it of rate. Asia around context can and is. the tax in world, It Chris,

One some answer QX we're lapping in a Australia, little question you growth points a Asia, There's X strong of a couple in as to also couple COVID Just on slowed ramp China your notably seeing you but of QX. I'd said, softness from is what on of point going places, there. specifically 'XX, to. we're ex things

you just look in sounds what the the the would XX% and are at seeing we're picture, at that numbers or kind of outside Latin back and we look around seen Asia, guys and like you growing you it regions resiliency. North Europe more. kind around of these Outside are If of if world, bigger of have at Asia, CEMEA, seeing America most up U.K., at you've of looked ex America,

there. good what's feel So about happening we

you to tax long-term I'll it tax the rate, over the rate. On Chris, turn

new that's Hi it. at increases the the mix the and XX.X% Dave. is to about related in think our I around to At -- parts we what tax tax tax we know our the certain it does Yes, think certain of about to XX%. world. how the Yes, jurisdictions now, -- rate, world put based right least It sure. do on of way run would

know the some next anticipate half the you new on what year, the But in of second we about as year. be benefits in we based talked below fiscal due that is estimated. of we we'll run rate today, the the As to that

with question David Togut Our comes next ISI. Evercore from

growth and Visa XX% PXP Good in XX% cross-border the to growth particular, year-over-year. see the transactions, Direct in in transactions

As we Visa promising look on use FY new of the what are biggest, working to 'XX, some Direct? cases you're for most

kind access. fintech that try invest some one. We're XX% mentioned drive growth you bill and remittance both things on around and I and focused traditional that new we're focused And going earned doing and with Cross-border Shinhan to and mentioned, strong and remittances think, on Paysend focused forward. We're disbursements. on of we're I'll previous work highlight wage I on growth Since to doing behind is world the year-over-year it. further payments. We're called some in with continue with others, call big we've the partners players. out, this a of calls insurance the is

to continue We in new around both focus more broadly the and domestic on cross-border. PXP geographies world,

just said the I've this, up, Direct the on time, believe in this at-scale point I money on Visa planet. at is back network previous movement If calls. largest I think, you

about more with the continue to ability a point I to we'll talking made X.X investments endpoints, billion got We now year-over-year billion have of going with now invest to and come. And digital we continue further. in But to where billion work. we've cards, to this billion get results announced forward to we're prepared hopefully enablers even use wallets. And world, to some do to X.X work and you have good X expanding to cases in X my network accounts look the remarks, consistently around the new sell to in network that the news put

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

give forward? You and guys you commentary of going on wins great just Can commercial had you deal the commercial do quarter. progress there a bigger Where update on broader strategy? your see in the and us lot a BXB opportunities

right? quarter. thanks. Citi good good world. buckets. partnerships, around -- we're in and really a expanding did the some wins those the and in to it It last having expand have So we're we I'd I partnerships couple just looking this quarter. And our building of I put is SAP -- we're mentioned commercial success quarter. different One IBM was mentioned Yes,

is we're expanding on verticals. thing focused Second

I us fleet You've and government, talk about fuel. talked agro, I last travel, heard into working and think, marketplaces, care. health like I mentioned, about quarter, selling

as cards. We it acceptance a creating just and products, suppliers, we'd innovating, new these to them they're virtual cases announced accept products card taking virtual them to we So of acceptance accept call verticals. And as like make a making the into to had sometimes easier to but actually Yesterday, preferred we are new delivering easy use. platform. cards easier use then it product not be. new to Virtual that many

the that platforms WEX core partnerships cards the putting over in out use. And like a easier virtual the products we've new make to to then So invest continuing of is to years. couple announced last we've see and announced years to partner that we of in couple world. that in the of a a of some growing example the around getting and great invested ago that really benefits of

the world. I countries get of so different that hands outside taking Ramsey, many I products to of in, the most these the just around developed we opportunity In say, products would also basic markets So of thing guess of are alone of into businesses, more let middle work can some the last there's there. we businesses the the doing for is a business, advanced and lot a of out that products large countries still business sophisticated small market more actually products there's using we're instead small the consumer products, example. In lot get small that broadly

more So that more cases, more in verticals, business. continue countries, use to invest partners, we'll more

Nance with Our next Goldman Will question Sachs. comes from

around kind if commentary could of just be? to what state increase would there's processing with that kind if geographies share, stand of any of market are processing And the you give union those interesting of Wondering opportunities us as a some had you that. mind You of share top gains. where

focused couple actually actually I on mean, Yes, we're remarks one, value-added processing but processing earn risk transaction. our in deliver we and a core things process capabilities, can loyalty transaction. processing capabilities the we well, the serve yield our reasons, share process more sure. the very of clients of it. prepared when transaction of I them very But one are as deliver we more a our more those services noted the we're when our capabilities, we the the is issuing ability on my important Obviously, enhanced just types is our which for of when effectively, to

a it. spend we So time lot of on

made we have them and how to we'll clients America, as then the those We've then transaction, work is use really get in to focus Latin America. working America. in with in Asia lot progress last as test the opportunities some years. the the good In on local markets, They processor, to which see in have the to unlock that several Europe of which and VisaNet, strides many to different we schemes different over we in and continue a of like. We've I local Latin Pacific. We're to Colombia making will remarks, mentioned they're strides my transactions these did been out and we've on processor. focused very good with and a case. have think countries Colombia Colombia in prepared continue worked places move good we I in processing, ultimately the think several opportunity well in countries I made very processing some that Europe, in in Latin

opportunities we So Will. those are some the have, of

from comes Morgan Stanley. next Our question with James Faucette

inputs Just travel about the the coming economic you component of you're how want cross-border can on circle expectation your But to you the arriving on necessarily little you're forecasters. back assumption repeat how appreciate, maybe that thinking year? in and often a then And not underlying year. have I said, guys that the as coming just for you're can us what for and color for at give target of year? of is bit

on general, we how and on in cross-border about the you blanks add fill then, the just that in travel made context year. some assumptions for give the and/or can Chris, think me Let we've

think Asia, it. have out we still we and to yet how about Here's of In normalize.

travel normal opportunity catch opportunity But in catch prepared But equal, or to around So world, a to up the more to broadly rate been, they normalized think all than into his to of international what's I as we've interesting in remarks, have still before the traveling at would else growth we got terms States. said pre-pandemic cross-border pre-COVID we've and a rate say the travel. normalize out faster United are the up in have levels. Chris alluded to People Asia. There's than new of at I to is levels continue would pre-COVID level. also higher at this

couple a numbers growth to rest the to mention in than think have but pre So the opportunity quarters, I of you levels. year? around would normalized the for the an we rates at COVID. world, we've up catch normalized of to we Do be the what want higher corners Around still saw

is in thing I'd really points and I Sure. if that what what the growth. call I many does in expect cases we a The the look that at and covered X a only index quarter, I commentary, normalized to thing is pretty to in the terms it shared we've is elevated be of add think to of you just X growth. healthy which that grow said, emphasize continuing what the And lot at might assumptions reflect Ryan

with Friedman Our next Jamie Susquehanna. comes from question

that Ryan, called been. -- the and in why But so, for CyberSource. you And important that very is always am your asset out a cadence I prepared inferring if remarks, why you in has business? an there's know I would increased be? it's

Yes.

it's start result remarks, I authorization investments they're strong and world CyberSource. great sell rates needed of clients world, around transaction in to As investments with deliver, maps, to understanding lot they adopting we're by road think partners, my look Jamie, over leads said, a in those we've understanding growing had success the the last when made partners. And into the of ability Why? around having I seeing platform then with those. in us new sitting capabilities, their others, that the investing the CyberSource prepared a been management the And clients and We've in down opportunities, client purposeful our success at our demand been capabilities of purposeful fraud our very tokenization with market capabilities. and very our prevention lot others and investing success what in in about driven years. has several the our that or platform the omni-commerce risk We've and any making for or given around CyberSource. we've having a to been for

question. thanks for the So

with Sanjay question KBW. Sakhrani next from comes Our

no anything a you that pause is doing there? sort also there yet have Ryan, Reg you adverse I wondering, I'm are just question the then, to gives impact anything front mentioned impacts? guys of caveated any II. you proactively Chris, get in and of on And outlook.

Reg went obviously, II, space. to answer in X is So things both. with talk summer else talk regards with I routing One made just question? that e-comm then going effect about don't into just you last the anything Why on, on and can let's Reg that Sanjay's change them the was contextually about II

seen and out value there, talking mentioned in we the holds around about Having they making And meaningful space, the we e-commerce to there products a work partners impact. the a that, sure liability. fraud the in merchant and propositions, any haven't Visa especially our of often we're there's benefits our ecosystem. where said As prepared our lot clients of remarks transaction, understand the happening

value teams to acquire and out, going And clients our showing in we compete. of the our in our products. our feel product, explaining and day them forward, about So ability sales the day good of are value merchant clients with

Reg regulated announced The look they do I'm is second to business interchange publish have interchange follow the it's the if markets, that they're is issuer. and higher I our about be don't the it can potentially thing interchange. know merchant closely. and see have just rate business II as the in exchange regulated in changes has what We'll strong lower that's a tomorrow, I going the some people regulated And resilient interchange what's notable something, announce regulated U.S. a that would our on Fed and the that think reminder, in we've seen take response interchange that on with going obviously to, We value say. markets, when model merits we think it And not is behalf. And sure proven a debit going they're between interchange to and very a we'll have markets

with Reg you alluded we're U.S. to we but a our on compete. in the good feel over as it and ability going So all to, lot II, about

a thus Hopefully, lot in we included there's and impact length, at very we're perspective. meaningful described Ryan any a guidance. impact on our add as any on, you But haven't going days and in therefore, is have as not coming we'll FY posted from keep 'XX evolve the call, Yes, the on far, it so things early months. seen that clear and just of I'll guidance and

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

authorization lot to like I higher your tokenization of wanted a for to like rate are but around not domestic just improvements, as drive ask broader-based implications the just partners token. rates a of feels just authorization international. It and a question and result able like just the this is

drive being to Visa. incremental just wondering the you're viewing of in how to back transactions I'm able So context that

for thanks the question. Yes,

higher Just for lower question, everyone, use protect helps a fraud. reminder authorizations your essentially that and is tokenization that and ultimately, we for drives issuers, merchants consumers, technology and to

I markets. we tokens in September. the end think said as I XXX of my of We're prepared remarks, in X.X crossed billion

we have think quarter, at I XX token billion in transactions which the like XX%. fourth growing is

is and we a partners. across see on fraud, a average, in around of fraud. are. reduction And we another with years So platform a and service rates approval example scaling in higher somewhere XX% question, that many we're our now invested a world. To broadly it this we in reduction the also your between and seeing, We're over X% X%

in why customer X if of fraud say, we you X.X we drive rates your invest who the can to We use are said, better platform well. our partners, auth rates one there that you is XX% that's points, sales, percentage see issuers, great continue lot that's in experience. And opportunity. now So our out reduce That's lower as products. ultimately higher to the to Well, your and that fraud, consumers you're our do tokens that a as ecosystem? a X and or benefits of have you billion

platform those enabling Fido and You'll types enhancing to of able in biometrics of and authorize the merchants devices customers be using see things. across us authenticate and the multiple to more from terms

it. We auth, to higher fraud. love invest platform, lower continue in the yes, So

next from with Jefferies. Trevor Williams Our comes question

to I the Chris, within on incentives clarify wanted guide.

I slower than in growth think you slightly fiscal 'XX. assuming you're said

part to to is Just want gross then revenue? sure, of growth year-over-year just percentage as a in make dollars that And or second the that.

of points else minus of You're normal year. basis percentage all should be equal, we gross framing up Should as interpreting or plus as that this year a incentive going kind XXX revenue? a more a normal be as meaning

clarify me let bit. Yes, to try a

rate result, pre-COVID through next a growth this provided about specific we It's we've on growth We've ways, on guidance as is formal dollar number ways, XXXX quarter, changes. specifically 'XX. net normalizing and made but you in is and that will and in slower returned to said, as question, went continue as guidance for on normal in call, many relative grow And a fronts. in which, full talked the went still year I many is to a in guide it As we'll a year. aspects, practices to it year-over-year that detail, 'XX we said normalizing. practice. And incentives, some your that is, through revenue commentary -- about We we and in of directional the some

very, business, aligned we Importantly, about we going very how manage the this it's is and how with the business forward. think consistent

is yield that net again, which consistent of with thing question at again We how we stable, specifically, how we because, business. The the this haven't across guided that is is percentage, part we consistent that's and we manage other very remained on with your the look think importantly do track that's economics. and about the very the very yield our deal revenue

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

of Ryan, characterize does How actually good is different it if I'm year to at as that curious, if I the don't pipeline ago. being was you? than any high fiscal single kind here. energy thing, the I'm a deal I'm in what to And you'd feel really credentials? you there growth MoneyXX/XX, X%. mind think just is you 'XX, that up pipeline side, same same curious on credential support me asking said digit

and success. Yes, business. there do energy remarks. And finding we're with clients We growing opportunities good credentials. that great of really grow having MoneyXX/XX, things there's pipeline. team new opportunities Visa the mentioned hope great some co-brands, prepared we I our serving at my with members see sales are clients, fintechs, are on I Glad my issuing, a to

the the are world. that it's growth about have feel on list IBM, U.S. generating. Shopify, good goes the We think whether Citi some serving teams right? pipeline. the and Merchants Shinhan, that China We Bank, mean, We feel or I around Bank, feel wins I about DBS, our feel we clients the way on, there it's good Saudi. good good about call, just about the of wins the Fidelity, out FNBO, Etihad,

question next with from Citi. Our comes Ashwin Shirvaikar

to on quarter. competition, Questions shift open CFPB a a of jump-start proposed banking Congratulations the few banking. on to obviously back. days sort open rule

U.S. guys dealt banking have You different the geographies. many outside with in frameworks open

that in to kind translates the and terms of Just on, terms of how like you bring Tink, to in acquisitions of curious over U.S. that made products, so

for Thanks the question.

that Americans. rule put CFPB they out the think good is for I

I think it's here America. framework great in for the and the regulatory structure clarifying

in it's the United all ecosystem. in different likely be think growth of clarity I to a for the catalyst is open banking States, it various the to gives players

markets them the their multiple a view manage finances of regulatory financial providers. And to you a opportunity If help tools Americans to types like of it, will digital different in think that own be put across seen then for help get lives we've data in own better, management, able different better point, your their personal their work great frameworks to to their world. about different around financial different it's

very banking. perform regulatory the open obviously one look business to well we outside which to continues framework of Europe, the in Tink leaders in bring Tink establishing for a Our was to And forward terms of Europe. opportunity of

consumers proposed are and to regulatory serve want build that we we that rules when effectively. will and because here at the that look the So serve welcome a business what we U.S., thrive we understand clients expectations our in the can so

thanks question. the for So

Last question, Jordyn.

comes question Bernstein. with from Harshita final Our Rawat

in fiscal opportunity business. you're digitization year about and As cash I ask your the to into looking beyond, the [indiscernible] next want

and about inflation forward persistent know, for and always you thinking is again, As given moving it this question a investors tailwinds. Visa the pandemic

developed also thinking are it you a about between how competition? especially more and So markets the segmenting little bit EM runway

the Thanks question. Yes. for

excited about around We be cash, digitization continue the world. to the opportunity check

to digitize continue to economies and the continue cash check world, around and world. grow around We the

check to continues checks still developed like United certainly, the when people exist. you the look So to how States, exists. I And cash still think much developing many surprise when look much world, how cash at and and they markets

And opportunity. acceptance about to with about we and the work algorithm. more across to to partners ecosystem, it to credentials our the among growth consumers' get that the ecosystem to good the excited our get think be with more work nano offers hands, especially more there activation We merchants tremendous runway. credentials micro and out among and drive partners into we're continue So going feel us usage and entire continue in

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

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

for participation Thank your you conference. in today's

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