Visa (V) 23 Jul 242024 Q3 Earnings call transcript

Welcome to Visa's Fiscal Third Quarter 2024 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, Earnings welcome Call. Good Third Visa's Quarter XXXX everyone, you. to and Fiscal Thank

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

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

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

today and in the The on let on measures website. results release regarding otherwise IR noted. reconciliation will related Our results financial related materials turn nominal and that, unless earnings our And revenue call non-GAAP available are other me a over all Ryan. to and with reflect our basis comments basis today's GAAP GAAP available a on

Thank results EPS for up Good with afternoon, XX%. revenue, everyone. delivered XX% quarter We and year-over-year, you $X.X joining net strong third us. up billion in

highlights increases intra-Europe, survey year. Promoter for international Visa year-over-year, annual all Cross-border the business all our recently points results as fantastic constant NPS, rose received excluding our XX, remain Score, and improvement drivers U.S. merchants, helped adjusted achieved last America. thank up and grew saw to global these XX% notable who a of grew X-point NPS employees client processors and our see how North leap overall results strong, our issuers, the transactions in NPS of types, Net In We volume innovating, and grew a flows, payments year-over-year. We X%, from grow XX,XXX year. key processed quarter, fintechs, payments as Our this helping to is our were I XX%, XX%. stable from of needs, across grew clients the with focus regions, X across serving them or and results. And across deliver global meeting payments by consumer client our want relatively where their payments, fueling review engagement dollars, some on I services. and success volume QX, value-added volume volume new X% you'll from compared

more examples forms our consumer start factors together how partnerships, are payments, of electronic these successful our we as domestic the clients ways to each most Let's grow ranked X our I'll and schemes ACH, to constantly share where cash, In of important strategic out played and see with of opportunity of to partnership of engagement we some client other survey, brand more clients. relationships. our value add this with seeking quarter. our than capture our strategic payment. In $XX and trillion check,

debit will of been million services, transaction has credit consumer renewing credentials across NatWest credit significantly signing in and have Partner launched value-added additional last winning in including named many to the pleased group's be commercial the following Network partnership Visa Lloyds our Banking business. Also XX Group, also the U.K., card Reward controls benefits. They new are Travel card, credit, relationship utilizing a year. We our Preferred and the by relationship our expanding and

FIFA services, additional user our and partnership renewed with issuer, flows leading and In we million over Peru, Wells business like consumer commercial Fargo. including and totaling continent, International credit European Olympic our Raiffeisen and the provide a de plans credit Visa Credito consumer bank commercial several with de X business expanded and recently, in leading potential we and Republic Romania, portfolios the strategy with us we in support On Paralympic AG, And Peru, debit worked consulting markets. our Games. with and to to such Bank Wells we reinvent allow and Czech and a key with across debit This portfolios services. In partnership growth our Fargo's will Card. and use Visa grow Visa Already cross-border U.S., money new Banco their consulting leveraging extended marketing assets credit Visa consumer our consumer value-added to of and additional with the services. new launch and deepened credentials. In and will offerings issuer, to and by Korea, their sponsorships continue commercial agreement business we as extended issuer they Direct Visa leading a the movement Kookmin value-added KB

the opening issuance, is brand Visa Visa with Paralympic-branded happy Europe I cards engagement and the front, to quarter. to cardholder number marketing nearly million Olympic the million On in report Olympic activation at later X is ceremony X to week, the across it with in world Games the just last the compared see campaigns, I this am and exciting and which quoted experiences brand

added XXX,XXX France merchant new We locations nearly in in event. the also advance have of

issuance important brand cross-border consumers focus. Our of areas plays co-brand partnerships. and in In reaching also affluent an India, winning remain credit role growing and

Bank through target of with launch card customers co-brand are credit and One card million benefits first of airport-linked Adani the base ICICI rich Adani One We co-branded India's XXX platform. for about as a excited with the their

reached relationship. India, with existing Kingdom card an a work brands grocer de Arabia in also of X services with we financial Dawood, co-brand co-brand App, numerous deliver target a prepaid from CEMEA, benefiting that in CyberSource. a outlets Unicomer, also co-brand X Neu. Across an a with from countries travelers credit using of the a the with And co-brand loyalty in agreement over banking Super and Tata will on in of arrangement the Latin This rewards addition offering Saudi a XX Tata Indian retailer Digital, the credit launch we leading signed exchange We major new card foreign of America, provider multicurrency partner, million will to building program with novo and new card members. Digital along to Bin consists co-brand to with Tata success our

On co-brand the credit and to their partner credit the for extended affluent. Visa in card our targeting from with exclusive we Turkish And Smiles Miles and new co-brand to their U.S., a card card. co-brand have relationship side, network Z Malaysia for Airlines launch millennials Airlines new prepaid customers Gen be travel chosen also a travel-minded the

merchants. across we acceptance a Our comes of consumer and payment strategy wallets is the a an super than value with doing are wallet all partnerships users. Two and I wallet just Vietnam. great example a users this This wallet And a is an where growing app funding accepted source, of Visa credentials are and form and can their proposition as increasing source highlights together, more MoMo, this XX where managed the on additional we quarter QR Peruvian credential, providers have locations. focused at Peru mentioned embedded X wallets, focused be payment secure Yape million that for approximately digital enables And by increases for to country already via credential who are by PXP Vietnam, million in Phone Visa. acceptance them a enabling recently, simple, launched utilize than for to send with that more ZaloPay just money functionality And over delivering in transactions a wallet the on to leading X are are area points now checkout and their accept to merchants these they Visa wallets. One users is XX easy, million Visa VNPAY, users, experiences. their XXX,XXX funding and very cards as across Tap Direct. Visa

a share recent me Let examples. few

payments First, of using Already, Europe issuers to Pay customer enabled and the we solution. have are hundreds number in volume piloting XX% our Europe issuers the of represent Click Service, Visa a more Payment for passkeys integrating enabling authenticate to a we of and than themselves who biometrics. Passkey in e-commerce

fraud. crossed globally quarter, e-commerce we tokens a billion incremental in million helped an XX estimated Second, tokens than Visa businesses And $XX XXXX significant for in in revenue $XXX milestone. billion more more saved than and alone, generate this

for to use to card, Tap provide send experiences, tap identity, an a cities want money to grew tap Pay, authenticate XX% the to cases or X add Tap a penetration. family one year to to points and With XX% the in-person above last including users is XX tap U.S. excluding tap we with Pay to tapping ways U.S. device. ability Third commerce we percentage have on to from to as transactions quarter, Visa more the of best U.S., or tap, globally, And the surpassed more XX% mobile finally, In face-to-face to this friends. of

moving on new Now to flows.

X.X to with dollars transactions year-over-year grew up dollars. the in year-over-year overall quarter, This billion volumes quarter for constant flows revenue growing XX% and constant new Visa X% XX% Direct commercial in

delivering starting updates, products and BXB, commercial Let for card worldwide. AXA some their focused simplify and me verticals on where a with to health customers have claims penetrating virtual and launch with innovative we work care, will to processes provide the solution we Paysure solutions. In new

Together we business expanded automate million to with also Billtrust, acceptance costs provider, Payments partner, processes, our will have services with We offers customers. fire payments, safety, Billtrust's manage on or our Cintas, uniform, Network X virtual Business Cintas their card over services BPN. streamline help key a who and and protection

payments to collaboration suppliers our data rich with with buyers that processing acceptance also connects card BPN We just facilitate costs. recently long-standing extended virtual straight-through Billtrust of that optimizes and

Solero, products visibility enabling will compelling their solutions data together such and can accounts, enhanced with the relationships we issuers in Our in our to and and provide. In into across enhanced client manage business. better growing boletos One provide by solution, solution management cards, that very more, business and we small spend important data is BXB products. winning financial with bank offer business BXB them Brazil, leading a aggregating remain

Expense controls, clients which is which called management, data. solution white-labeled their Fargo Spend Wells and providing solution spend to our program expense now card onboarded Wells representing corporate users, reporting. over X,XXX access One issuance, Another Clarity, has Manager, including million has X provides

Now Visa Direct. moving to on

grow transactions new through and expanded We our continued relationships. to

with cross-border In Visa Currencycloud, extended are on Visa in China commercial for Colombia. in renewed CEMEA past and nearly and we consumer with and their their than to in partnering first CEMEA, us enabler all the for across its XX Europe cross-border recently Zhongsheng Canadian renewing merchant cross-border Direct are addition fintech largest merchant Nuvei credit, we PXP payments agreement Direct capabilities, Visa fintech Over Asia Monobank with Bank and to for clients. have cross-border debit, the Visa clients year, bank to Visa our allowing Direct In prepaid regions. relationship the have cases being very the their total portfolios. support became and Direct transactions Pacific, excited countries use doubled, including with has more Direct

solutions customers their recipients Direct enabling eventually Sendwave, countries. money we for the U.S. and WorldRemit earned XX South with South from with and send send U.K.-based remittances friends agreement Quickly, Direct finance countries wage and global agreement an Visa to in India Visa cross-border provider. relatives to to in has first Asia. And to remittance embedded a access, our Asian executed marketplace, rest Weaver, in customers XXX of leading also We reached cross-border enabled a

addition to agreement expense issuance, renewed payouts. Similarly, with employee offer with and serves utilizing enable they expanded we to and earned its Weaver's our Visa for and be In Astra. Visa+ enable has will enabler, will who Direct access. businesses access provider recognition, to relationship reimbursement, Earned card PayActiv, wage reward wage us clients X,XXX business

services wallets implement with to flows, processing fully continue capabilities renewed issuer the services, remittances, Direct. And revenue and Venmo domestic flows a still now the PayPal for In on cases, marketplaces. clients, and third dollars. up and and rolled will an quarter cross-border Wrapping to to access important was in including early and but to offer enable disbursements, addition earned and platform. Visa+ of including constant join suite value-added where value-added XX% Visa wage partner FIS, users their to agreement use up the payroll, expand to an new new we stages also in out in for live reach domestic more providers is Visa+ Astra the additional in is now U.S.,

in growth and our adoption Let we the services value-added me highlight have some driving made of progress portfolio. among

the enable First insurance entertainment, strong tailored cards of more. Strong our regions offer fueled we this in unique base value where in restaurants, issuing premium propositions revenue across in solutions. card One our their this clients customer quarter has growth quarter. to was and issuance of to area travel, in most in growth benefits, third

in grown Latin travel Lounge Infinite over example, with America, in representing a number of visits XXX,XXX customers unique For our benefits Airport issuers. Brazil, to from have leading Visa

the which Brazil, benefits in quickly, and among These million to cardholders deliver travelers. airport Brazil allows our X and launch Pass security card Fast has since in Infinite over XXXX, addition, are its Visa In value to in screened top issuers get more Visa. X customers, through

like with in by e-commerce-related largest X Solutions, was the reservations expand U.S., across coveted launched example delivery Canada into Acceptance before continue eligible growth is driven Verifi food who We the both to more such to to platform In they utilization and increasing access iFood, offer services. partnership recently chargebacks. cardholders benefits become add and with e-commerce, the In OpenTable prevent in and Visa solution with restaurant to to experiences quarter third plans Mexico. help token disputes is utilizing our Brazil

North part in continued In growth be see using solutions. In acquirer strong addition, to new will adoption card-not-present will In they in authentication existing Solutions, Identity transactions. America, & driven we by and of Worldpay and fraud our by Worldpay clients, be merchants during card-not-present securely. exchange use solutions and properly issuers authentication expanding collaboration authenticated fostering to enhanced allowing more from between transactions, reducing be their CardinalCommerce, authorized data and our Risk transactions real-time and

We had the results, great X-month are scoring uplift showing the pilot XX% an our solution risk in account-to-account that detection of also Pay.UK period. fraud Visa with pilot over Protect has average pleased

Argentina In X technology open the with advisory after are launching solution as last addition, banking value-added and are Celsa in now well. The services we core piloting Protect Visa successfully a services. there company, payments

and with to particularly for Games. sign marketing U.S. Europe growth as to the consulting around such Tink client I and continue services, strong the We Paralympic new marquee in demand earlier, and partners we our in as events mentioned continue see Olympic And

value-added portfolio and growth clients driving meaningful is services is Visa. Our solutions and strong for our for

settlement that the class close, injunctive Before for I rejected by the fact the the relief speak I wanted to to court. reached was

about possible to disappointed meaningful lies and our prior towards we a We To decision. another and settlement transaction Visa, partners and with we work focused very excited volume and ahead consumer of the have to stable merchants opportunity relatively flows, believe and strong provided seen fiscal in and service new on growth. come this year, continue We deploying work we as of close, At clients so growth EPS building are remain the to that are, all course, relief value-added solutions I services. across this of and us. that settlement. revenue the of will result payments, best far

Now over to Chris.

QX, growth In when across X% had everyone. stable quarter up global year. cross-border volume, afternoon, processed leap volume, payments constant dollars, In relatively for cross-border another volumes, in expectations. our in Good Ryan. strong Thanks, compared year-over-year was quarter XX% payments and we Fiscal constant XX% with constant volume excluding GAAP revenue and Processed transactions net and year-over-year dollars. XX% intra-Europe, and to QX, grew up was third up adjusted XX% was year-over-year. XX% transactions dollars, with EPS both was in up line year-over-year.

QX year-over-year, with X%. adjusted total debit QX and Now line with Card-present volume were In X% X%. to numbers X% in go volume while segment with In card-not-present leap payment volume let's growing also for remained credit the growing spend moderation prior growth a the payments into slight segment. volumes grew the we the stable grew saw details. generally U.S., U.S., the high in spend in growth quarters, and lower compared consumer year, consumer

each stable relatively adjusted were with volume most rates U.K. than in dollars. leap Moving the Latin CEMEA, constant Europe constant Payments was XX% for with for more in volume year. growth in and major QX payments XX% to growing dollars, regions, America, Total international quarter up markets. when ex strong

of macroeconomic for most in environment, slowed primarily dollars constant China. to notably Mainland the than Asia X.X the driven volume growth Pacific by in year-over-year quarter, point less payments

retail. growth adjusted in speak up QX leap growth, Cross-border which travel travel in and dollars to to the was or and cross-border indexed Now QX, excluding strength in XX% transactions. XXXX. cross-border intra-Europe volume volume up by purchases, today XXX% to I volume, will excluding cryptocurrency mid-teens, to Total for in the in adjusted also constant Cross-border continued card-not-present year. volume was stable was mid-teens helped for relatively

X from inbound XXXX. than XXX% to by Asia we to the similar to X The Pacific of Index Pacific quarter, travel, Asia however, at QX with the of saw a QX improvement This XXX% slowed increasing less index pace in improve outbound point XXXX. points

drivers see last to from primary continue the pressure quarter same as We some with additional macroeconomic conditions.

payments the Data revenue Volatility driven with intra-Europe, the higher let's up in and transaction X% Service the dollar Now revenue on our volume, quarter sequentially from International and versus due versus generally to currency transaction with utilization Client X% cross-border line QX was lesser yield I'll constant volume, levels the and, X% constant versus excluding XX%, average third XX% last versus XX%. financial review revenue last grew consulting grew consistent revenue Olympics of with year XX% dollar last X% to growth impacted increase strong by year-over-year revenue in grew start the benefit. quarter. versus results. improving volatility marketing and in to pricing. components. grew Other card yield incentives revenue related to improving revenue lapping processed year. year. sequentially growth services last extent, remain revenue a by primarily processing

payments engines. volume driven on was by stable and Consumer payments to X our relatively volume, transaction Now growth growth cross-border growth. processed

year-over-year the driven in dollars marketing and value-added year-over-year the expenses, apps. Visa X.X point PXP constant we XX% transactions among Solutions in services an general volumes growth dollars. grew XX% Advisory QX, Nonoperating revenue FX constant X primarily in Latin XX% including administrative to drag. grew interoperability point billion, benefit primarily XX%, for grew X% by constant spend Issuing year-over-year, due revenue to income expenses represented Pismo million. $X.X flows by New Services. Operating point Acceptance dollars. In was grew approximately X.X Commercial Direct versus $XX America and to helped expected. related was rose personnel and Olympics. and drag in increases in

$XX.X rate from year, was Pismo. and In X.X we dividends we $X drag QX, XX.X% in inclusive the of in an $X.X billion our bought EPS from drag point At tax billion Our point over approximately stock rates and authorization. over exchange end remaining back up stockholders. in had last to June, our was of an XX% approximately $X.XX, and approximately buyback X.X distributed billion

through such growth X% year-over-year, growing July debit up was volume not but smaller events, to year-over-year. X% of to far levels let's X% slight slightly by we've with less, to excluding be constant ex XXst below and what which payments growing among travel-related XX% from and appear be with Cross-border Pacific move travel intra-Europe. as is card-not-present dollars. with factors shopping X% weather, at grew does Now and U.S. continued volume QX credit in to volume so similar transactions of seen The the number promotional volume up volume year-over-year. X likely grew Cross-border up technology factor outage, timing any the others. a Asia QX. Processed in QX impacted from deceleration levels

that on basis is our as dollars expectations. adjusted acquisition to defined Now and Remember impacts. in excludes non-GAAP results constant

these presentation for earnings our can disclosures detail. You in review more

with Let's the fourth quarter. start

to rate volume a We processed to at and expect payments similar grow transactions QX.

are which in double levels. together, stay revenue in we improvement volume to adjustment are equates expectations cross-border XX% as from adjusted it to assuming such, growth expecting to rate Currency be with total all all Incentives rate are volatility at below expect their third up QX. for adjusted growth slightly we net line to the lowest slight digits, around average making QX expected we in QX, X-year low currency volatility an to a the XX. lows the revenue growth quarter. year. Pulling continues And July growth, through will volatility end For now

XX.X% We the between expected adjusted QX high is is puts double operating tax the be expenses digits. million low between rate which expect to end to of to our The adjusted be high in digits. in expected $XX QX, $XX grow XX% single in million. QX EPS growth income Nonoperating and and rate

from for we expect the year start Moving now quarters revenue what complete, With Whilst full to at of expectations impact adjusted adjusted the absorbing the volatility double net lower affected year. low in we and single This delivered consumer develop growth future. low shared FX. new volumes, the digit adjusted of full reflecting reach relationships, innovative faster services our remains growth year. this all the invested unchanged results X impact be less with the growth double-digit products the extended than existing we year will year. to growth us Full revenue to low for the in the the operating expense and currency and our high flows adjusted which new keeps clients macroeconomic in net full payments. closing, won have still growth to EPS challenges and revenue Asia, value-added continued favorable positioning into of for full digits, quarter year strong teens. In solutions, growing We

So for time Jennifer, some it's now Q&A.

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

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

from from help believe if X%, start. And cyclical, me rates company cross-border. think for is trends? rate just revenues you The context versus mid-single-digit Can bit of to you place distill you that is if only start. you us But really with on X%, volume coming it to U.S. trend let Look, would to is a value-added coming a volume -- volume growth that you be grow on could it's in the of ability that U.S. I structural kind just to good revenue adding us those U.S. consider grow growth has services, obviously this what understand the double-digit capability X% help even softer.

start let the with so U.S. me Darrin,

maybe about the start first long-term of to me with in out your get maybe and part zoom and the question. then question, Let talk we'll

QX, full of X%. X% quarter. XX I'll arc growth payment relative since, of you seeing. That's did drivers what leap third you stable sort Maybe see So number the that give July, to in the in in once to QX In for the U.S. days down volumes just tick adjust in we're the we year. did

in just those So X% versus QX. days X%, level the XX in on X% numbers, set to

at factors lot those there a those we and that, did lot the call I'll expand them referenced impacted of And on I weeks, bit. a for drivers, on so stare and the on. of that X going a the few was maybe a

a nearby. It impacted First, hurricane, parts we major had Texas U.S. and Beryl. Hurricane the other of

referenced expand Maybe of timing I that e-commerce little I e-commerce second, promotional shipped. in timing when can this goods on later events. the the The and a are bit. The was customers are billed year

XX ] bit fell And comparable major of so shipping a third, some that difference last so that XX-day And year of of period, out end obviously, some tech (sic) [ of the also period in that period had we that little week, to had the a XX-day the happened ago. the impact. at outage

when So to QX part of about things considered, we no from point that, good results. of that the X But drove July. actually first factor look feel single pretty we at X-week change all the

question. Great growing the CMS. quarter. business acceptance Visa volumes in. With context execution, consecutively. and a in low where Now issuing for digits many consistent row high VAS, of had sort advisory. about growth in the strength about, as the stable That's feel strong quarter the billion sort teens. second in in Ryan quarters that level. XX% over of flows our around into really talked at a the and we new VAS, the and great second $X the and across of XX% business was we're over revenue, we're transactions business, the seeing growth cross-border, Direct question of That's part of the in And double We've I'll a seeing growth, back your in solutions momentum performance

you in good and business. And all, we've the that out in about vary of in we As cross-border, all that feel bit bit I can and over then know, rates first the the a little strength in Maybe half I'll But of seen the business growth that course cross-border what saw also talk little the time. year. really just about continued a well, zoom cross-border. quarter-to-quarter

sort teens, since digits digits, into which high the and X/X faster sometimes contracted, grew, of single grew Travel e-commerce, pandemic, really grew grew recall If business, to the happened. the Obviously, you travel double into pre of low in the then. is pandemic mid-teens. cross-border the e-commerce and about

post business. rate is stabilized Now the XX% pandemic, we're growth has to the normalized, is that it And what roughly of back pre-pandemic seeing e-commerce now levels.

say, growth It's of a where going on to on to stabilize Travel tell little exactly the let's teens it's run-up that business. e-commerce we've seen to total but the cross-border what know do growth. We've that the high a normalize. of so after a continue is seen structurally business, being -- And to hard tailwind portion it e-commerce that's we has normalized. post-pandemic where with bigger But growth. cross-border at XX% the

there's we spend. please Ryan pause so if else relative and be are there continue anything confident that, healthy that to to domestic certainly, will And to the I'll add, or others, jump in.

Chris. nothing add me, for to No,

the from Blair. William to Jeffrey line go Andrew we'll Next, of

up what at mentioned, perhaps bit XX% I you bend you services revenue growth quarter to the of total a curve think Visa expect Chris, little sort point your of this it's of services and more consolidated? driving approaching than talk value-added so impressive consolidated Very of as XX%, might value-added revenue, at we growth. Can growth half about

question. $X services we're Ryan, Last billion approach. $X.X $X purposeful mean, and XXXX, Like was we was in XXXX, very billion. we now you it not I up billion what about did delivered about It's all for said, revenue, yes, only for strategy shared we I the growth the go-to-market billion. did became Thanks go you XX%. year terms $X think And our about you to back quarter, of this consistently several Andrew. quarter. excited of with since in been very What for delivering we've we value-added years the kind

what have really opportunities mean, quarter I think these in I the from and where after segments. And year super X So businesses. we've think go we quarter we about we about year delivered consistent is here. we're shown different after that optimistic in growth

largest tools we Risk like first like Visa a on historically building drive card are we've things remarks. And have and we The before. Increasingly, prepared that transactions. value part previous value-added we're done space in business, services, my in dispute is series non-Visa value Visa area. that value-added has focused -- in can a Visa of which We've benefits, very enhancing that services outlined answer shown products of growth Chris I in the Secure, for great our his some out been some like for services this of that transactions. that Online, add mentioned Resolve of we've set

platforms our we've of protection of the is us payments just our Visa beyond for and by talk and marketing third then of but in Argentina we've beyond RFCP bringing like Consulting then you've that continuing Verifi. card results expanding services value-added to couple services Historically, been account-to-account a services CyberSource, U.K. things Tink, both the heard and networks also other risk me but value-added of last our the capabilities Analytics to like I delivered and our in things, great our about Some And we're that had banking services. had Authorize.net, the to on capabilities, the quarters some market. payments. opportunity and we've portfolio cyber of expanding front. And mentioned partners and like not build example, out But open area services the in to for for clients

got clients, we growth. believe We with approach We've opportunity. all demonstrated consistent diverse and growth. world go-to-market and pipeline to a to about be a demonstrate good continue set feel we'll the consistent able product we've the So over of a

of line Keane from Bryan go to Bank. we'll Deutsche the Next,

Chris, about ask as Can about growth or will for just incentives? amount should growth being just the fourth we year, head what kind trying is just expectation for the the you volume-driven of talk be next how a of renewals And incentives sustainable versus seeing? you're bit quarter. lowest little about much about that of we fiscal want think to just think to into

question. a that coming for the about Thanks even had back expectations the I'll us take year. into fiscal little the bit for we incentives

second higher of the first that little As impact us our rate volume the ended And the sort renewals, last was we sort year, year thought did high a of of how volumes and of for in a than terms 'XX. incentive half cadence. FY normal a we in about we different fiscal growth the of even 'XX, typical year. That in had half

growth year, so it's of things like renewals year-to-date QX, slightly as slightly out deal year. client And of sort incentives we played than, looked I lower, been we When have guess, volume had a differently, been next rate same better we high we Obviously, that. the from it's due into go performance, And incentives in this lower what We still largely as overall, plenty across timing, this to we last we to the than don't applies. the but share anticipated. benefit in call. earnings about of QX. anticipate we'll lot to informs, the of share QX again, that in have a the point half that trend XXXX second which at year, expect the saw lapping We this FY

go to the Suchoski from Autonomous Next, we'll Research. line of Ken

of you ask that I wanted talked has to more how team less recurring correlated growth. the transaction business nature. revenue also recurring parts about about of some and have the or VAS But in are with that VAS is think I

can for and that also you you team business perform value just And how understand environment? talked lower in VAS. pricing help in VAS about about how cyclicality the think of has a I the volume might So us think growth

And resiliency So the left that to how is help with more much how does go room of there? the business?

Ken, it's Ryan.

our Solutions, clients are different value you And market. and great value issuing helping clients business, Solutions, function the market, that a to And is of that Acceptance your ability grow see question, we to price services reduce various helping that fraud, their the authorizations, types value. value part price for continue second to solutions, the mean, results. we do of and bring we those ultimately Identity we we'll Advisory, to Risk our & of our our areas in be and to grow for products the believe continue I continue we're able the that, just think of to we'll the to feel about believe bring it On we Across I things. bringing

value-added I transactions. of of there function the saying services think are earlier, I Visa a is As portion biggest our was --

depth we've And achieve that our sell I've that about clients as down, have calls, fact we transactions, of and services. that, majority penetration impact the have more talked our so so have able On that an with go obviously, ability type but been does Visa to of others. previous the yet they to still or up the to on have

grow markets penetrate we the continue as world So various the optimistic I'm ability we have. to as saying around in all I was our question, to business our earlier clients deliver, about as this that continue we to earlier, to the very

Tien-Tsin the JPMorgan. to go of Next, we'll Huang from line

half, you're curious your sizes the outlook in still accelerate here you've updated in to -- especially in fourth expecting Just if U.S. are U.S., quarter? you second transaction the the if

the question. as this the We throughout we Thanks for from that. ATS did in pace know, of see growth year had and quarter. third improve forecasted Yes, you the saw to we improve quarter-to-quarter, ATS,

improvement anticipate And saw is continue utilities, -- to better a a in trajectory fuel, out fuel sequentially Specifically categories, year-over-year closely. we'll could flat out to QX few. insurance, in QX. the that again. The call got in X ATS we restaurant It improvement we'll was U.S., prices that QSR in slight X of and watch slightly QX. watch in in that number than so the We do name see impact I'll the telecom, basically sequentially, QX thing to

thing. anticipated. is what the from So that's yes, it is varied I The it we playing pace improve, is but anticipated to and out we important think as slightly continuing

Crespi, from of Next, we'll Monness, Hardt. line Gus Gala to go the

is little a trying to maybe Can young gap to around get we payments cardholders or maybe rates penetration? cardholders? of penetration terminal talk what could about you a penetration in contactless highlight older the Just what look Can level like. your maybe across the bit of some

to heard, you're so You're asking asking I just about -- Tap Pay?

Yes.

just that of now, at more I yes, big the transactions we're types. cases, think, of mean, planet back up that mean, The use face-to-face all entire in all product segments, the more are I XX% contactless now things. just that first got, fact I world. countries of XX than mean, outside demographics, penetration. We've Tap Visa than tells right XX all the all around that to are it's X I you there picture XX% overall the the around Pay all of out maybe States, United

the are the most countries U.S., that's we'd increasingly, for XXX-plus the all paying. customers, seen all products how default for most around world, we've way curve And in expect world. around most in just what exactly in the maturing So it is that people the countries based on

in now New many I place a spend above XX% every where transactions U.S. in As X City, you In are of the call time, like my York on now. of said prepared X remarks, taps. the out we're

New City, transactions. in think, one ago. of above, XX%-plus from all up So the York of is adopters face-to-face where years early XX% X just we're which I of -- transit, That's

size issuers penetration the in board again, York market So and across of and the at City, in the level of products terms like. a it's segments that New of and

I So this think love continue happen, going to we're in see to the buyers, tapping we way sellers, as a as like a to accelerate continue growth that growth place And pay. they to U.S. see

Sachs. from of line Nance Next, Will the we'll Goldman go to

getting renewal see a guess longer reduction and common issuers, understand questions this the if with net production now. of may rates how question around was lot and uncertainty proposed. that interchange the most been much the a greater getting term, around the impacts I we I how level incentives could in of We've then potential from And the yields. higher impact the and the specifically ecosystem, is rates investor trajectory to overall lot and what I of But negotiations guess we're is a totally interchange reverberate updates, litigation through

direction hear focused the any we're the or reduction over So if larger that kind and that of in overall we perspective of a time. sort if about indicators on key revenue, ecosystem the wondering size could reduction of potential just your of of the changes

And thanks for up. the just I back the litigation. MDL asking you're guess Will, question. about I'll

We The to merchants. first settlement would provided decision. judge's We say fair. we relief I thing was strongly meaningful the settlement disagree is with believe the believe all the

would I But ecosystem second to is. role in that, -- failed on complex settlement the delivered. take the number multisided that many things, ecosystem pursuing especially into complicated It's The in, too thing role decision the speculate consideration that having say operate a players settlement. that that said of early a different what we revised the we're the to is

trial. any So I occur keep But would after a that everybody before, the during, I at won't just point today. to ask settlement mind can in even do or

So plays just as that in keep process mind the out.

from UBS. go to Next, Timothy we'll Chiodo the line of

services at both to time revenue. that value-added the hit same X and I want tackles incentives

prominent, whether them more value deferred are revenue. the in-kind in if around recognition, And of you it's meaning issuers. with briefly about then eventually more not you bit these little talk could mechanics I some a recap using revenue value-added the was the concept So a hoping of and bit incentives. becoming discussions you're then or addition contra the just the services revenue, revenue little could the to

And services increasingly, are on just a the way value-added our our in-kind it drop to take to might bottom versus value as for clients. high deliver incentives preferring I'll give to The performance value in the that buy to, is clients, you great level our our you Yes. to says, this. us see just as line.

something absolutely to driving clients. we've something is So It's demand. the their about our for that of. last clients years new just market, to about what's businesses. And clients the grow that's that more our gone built solutions how for our our is talked are several I services earlier how that asking product And we helping and products pipeline,

talk So differentiate you our to consumer payments Do with renewals us way services discussions. our for business. a our And organics? ourselves clients kind grow a more become part that's are important of and client the becoming want of our about to renewal and increasingly value-added client

your I'll just the give to part second of you summary. a maybe Tim, question, high-level

on a when time it earned, of and At contra the as -- level, I commonly services high revenue value that's incentive, recognized think business, P&L. pieces nature the then of at in-kind revenue depending called are you when services as then costs And utilize a have associated our the able in offered it's a the contract. granted cash also that our be value the you the client that lieu Visa, other on sort from or is recognized the in would out. can of to recognized in-kind side, in value-added is for it

Next, Faucette James to of Morgan Stanley. go line we'll the from

it there's near-term that. And the stress. a of been past of re-acceleration looking I'm couple debit identified And question quarter further little rest over little an ask the wanted we the consumer in a thinking a has that of last get indication about of seems of issues past some on you're wondering July. bit for a than like just of I September follow-up you and that in in how in We've a credit trends. the you're of as seen the just to bit months, little bit slowing

correctly make in want bit divergence that the growth to Just right now. kind sure interpret I'm understanding and a we and credit that of how little of should debit

We tech had a give a we're Let We had to had me Chris, X then of into and correct. context a the free little across hurricane. add said, happen. feel it the quarter. Chris just a Like on or things country. weeks outage We number

in So how just what of rest know kind we're trend. We'll the progress of of of weeks the for about see credit-debit don't as kind terms if happens I you to things kind want not from quarter. talk taking X divergence. a here the of

of bit also Yes. I are lower little quarter relatively we when be mix we related and with cohorts. seeing But commented some sort to, what factor in we're seeing band in think moderation see QX it to I stable it call the to the a made, bit volume we that a days call And we're versus July little think at little on Well, a a correlated I again, and QX, seeing the numbers the spend to the results. I'll all, would back refer that of we that's you of debit. I in comment all the year. relative credit in of bit to once look leap that

Next, Bryan TD we'll the line of go from Bergin to Cowen.

Wanted to new flows ask on here.

sustain Can know a growth on consistent up? Direct I'm may that picked last curious the I quarters expansion in on X you over that add strength could color level those. particular the Visa areas a or you had just you you comps. So that really of of nice moderate of if more acceleration bit? have one think was

the It in mentioned, opportunity business. that as really an we our with momentum is Thanks across Direct. about the and and the enormous the I us both in business Visa of growth, feel have good XX% commercial for question. execution movement front money

XX% familiar you're with the think transactions volumes the I in growth numbers, commercial and as well. stable

in think, of I like situation in what onetime to, the of in we QX. QX, reported terms the growth, rate reflective, that unique more saw depressed based of one said, you're it's timing that the couple at impacted underlying the That referring quarters, business. where kind and think items vary in that QX acceleration I this items had quarter-to-quarter -- growth last we as QX. And deal that some a health and had if on the onetime we really look growth you can from

normal at healthier underlying some And momentum. The macro variability see be continue of business should consumer healthy, level, than say to payments growth expected And should rate so and faster grow continuing that good we're overall, quarter-to-quarter. and I'd to growth. level is with the the

selling be prepared build my to early the the points, We very building in to platform, all of Chris' I many the I Visa able years processors. acquirers cases, connectivity, in investing cross-border, many, and spent just we're of and the And some remarks. working with we're issuers highlighted and on now growth. infrastructure, use out around And which the new think stages finding world, domestic Direct there

X We did Visa this Direct X.X to did transactions. transactions quarter. go You XXXX, billion billion we back

this many in the to build reliability, the of going this of and of on we're go use I cases market, we're in example we number is the my the X.X capabilities, platform. in terms and great that remarks fraud we prepared to of the growth business and highlighted this use see stages spend just need the their cases the are very of when the We partners, which of points, in the systematically going billion another build the just early infrastructure. what want the So I we identify end we build security, time, connectivity, think to

line Next, KBW. Sanjay of the go Sakhrani we'll from to

the in been guess of wondering, yield now uncertainties of or just those making, be answered. are expand of Direct? asked But in impact Ryan, most of my in we you go evolution we some there then run Can I in higher the expect that? that rate full should have to questions continue and I'm on you Visa the last II, any Reg as just categories there? And Reg those were of is point, with where just related to terms II

both take of I'll Yes. them.

first earned one, still mean, use we're access early of the wage even years ago, couple in I evolution talking we weren't Sanjay. about the the On cases. of a

got we've think platform, on all so I our XX time. cases cases -- got or the are now teams use new finding we've as so And use the

of economics in point tremendous remarks, So all cross-border and back the cases use mentioned selling my I having success think Visa see driving I we're will that had transaction new we're in in in I Direct. continuing and success to great of you evolution the the out. What of growth to is what cross-border. prepared all would that play We've

add. value know, you in we are cross-border, the As given that yields the higher

debit as competitive very be for good market is the far as feel just of market all want that. Listen, can in terms again, we and about II, see. to I e-commerce So is of to competitive emphasize going Reg a

I that is It don't in impact, haven't fourth the the impact and the noted, any has impact change in think So a any quarter. -- while not Chris for competitive expecting noted we're seen change I we remained and business. same,

Reg with there Visa. is in a able feel calls the of about processing how far lot we've transaction capabilities out, them, these clients offers, on I've which grow of day are to there and talked evolution good great out feel of we them helping about many been in II that a day past. that business. We are which about on transactions benefits so the of in We why understand the data Visa And the

we we're rate. there, win about our good we're selling, and delivering feel competing, out we're our we're So products,

of America. of Kupferberg Bank Jason line to Next, go the from we'll

clarification this fiscal a revenue question a on volumes year. and just So then for on

for for it you're call QX, growth looking sounds like XX% So revenue it, to of, XX%.

double-digit that think the end maintaining low you I the you're would guide for year. at put of the low

that's clarify. And what on wanted question volumes. So then I a to just

QX think versus I with year high last in guide said you updated around quarter. would to QX, should the full be bring think which the X% line I single-digit

to should we level potential year, some considering? as of we X% start are off that just what models next be tune our the So for accelerants

let's unpack Jason, that.

clear. had in You be a couple there, just to of important so things I and this I want we'll is just -- think super

our guidance, double my revenue for QX, digits. net guidance QX be our would adjusted For low

guidance also it the quarter. is QX And was sort XX% slightly which directional the we gave the level be I growth that the would reported, above of in

full end the year. that. sort triangulate digits, take that points around And the to of -- called and would you take so of for sort low double as X math that get I those still And would it, you the of of low

below beginning with Asia drivers QX QX. on slower in point with on I of being circumstances second And did was say we've volume, payment transactions, we at impacted the and I in really be levels. cross-border, and to particular, it'd QX to say is situation QX. exception about slightly X based the that The be in travel the year. consistent travel from that than is did that extensively, the talked anticipate outbound recovering we anticipated The where QX payment to that in Asia,

guidance as in get we're we'll always as intent at those the variables end then 'XX FY are terms the with the to X so of And of the of do, beginning QX. goes, far on as -- And consistent at end communicated. QX expectations share the and we the our that planning, I 'XX

Capital to Dan go we'll from Markets. Perlin the Next, RBC of line

I of a Ryan. guess here, more big picture question

to investment, desire your own build I gen out language your your model. you've talked of at think AI large So AI kind and about, conferences,

kind there what be three, And of I'm two, as the then or do outcomes stand wondering, your true where sales period? of your and cases So opposed for an drive for payback investments to banks? to today? like early opportunity better investments merchant expectation guess, constituents incremental those use just one, would is those the I

Dan, AI. thanks Yes. the for question on

and applying decade. gen broad-based all, AI as to it are is at X been adoption, increases across AI there. in great from the to on One productivity in all ways. to we sort of frame great First for accounting all of different predictive results, company. on productivity company across We're all to real we're more seeing is a in Visa adopting results great drive seeing sales we've the We're it technology than

to and examples or AI and we've on That enhance an The both the risk ecosystem. for guess the fraud, latter account-to-account the second issuers. set I deploying generative that part to payment absolutely. I mentioned been and of RTP market. is of the entire capabilities using opportunity to reduce we're you is of that merchants risk in X products your I'd for And the payments. applying some question, tools give

on. I also to That think the before intelligence merchants. Intelligence to using Service, I token predict Visa happens. have list artificial goes help issuers call, provisioning mentioned Provisioning on is our And fraud we it both benefit and a is a which previous

help positive on the ecosystem. across optimistic not AI but productivity impact lower just So to sales about that generative can have, the ability we drive our increased on are fraud very own and our

more X please. do question, We'll

question, Harshita Bernstein. go final we'll our to the Rawat of line For from

a market. [indiscernible] of a of of kind growth bit volume suggests more mature X% card U.S. little

the growth the Now growth, Ryan, I algorithm biggest payments volume for estimate is about the market? Visa. your and $XX global think differences growth digitization delta category understand your which the for secular the we trillion which influence How opportunity discussed you should here. of U.S., in [indiscernible] consumer and between card

question was around the little mature consumer of you, but especially for for growth It I algorithm I hard Okay. the a got think gist Harshita, in hear your markets. to us payments,

where on that trillion So more a And vertical. we the in like. And that's by run that that of and U.S., continuing the cards. transactions, few check, opportunity About that's use opportunity that's In domestic way. places having cards I've world. good be We've networks really around electronic said great expand is rent acceptance that's people the U.S., is X/X the rent success been would than a One see before, that's capturing can ACH, cash, example. ways. as of different some $XX the we're through the expand penetrating to the and

making that those of to innovate make want continuing third And our e-commerce is to ability Visa for consumers it easier growth is second The outsourced things. drive that types new on has to and Visa growth transactions, on want and with our drive use that to help new are products e-commerce issuers impact product us on opportunity and which digitize to the capture and are of just the an a Visa issue services the Payments a Visa going announced of believe our year. slate And full marketplace this we us those big them. We at win and network. Forum types products in help chunk to innovations of

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

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

Quarter in the XXXX Fiscal today's conference. concludes Third Earnings participating Thank you, Call. That all, Visa for Conference

the You and may your of disconnect enjoy time, at this day. please rest