V - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Visa's Fiscal Third Quarter 2021 Earnings Conference Call. All participants are in a listen-only mode until the question-and-answer session. Today's conference is being recorded.

If you have any objections, you may disconnect at this time. I would now like to turn the conference over to your host from Investor Relations, Ms. Mr. and Como Jennifer Milotich. Mike Ms. may now you begin. Como,

Jennifer Como

Thanks, Fiscal Third Quarter Call. Earnings XXXX Michelle.

but opportunities we acknowledge call. usual later issue, to I due you filing an Before want little the begin, to review to prior was a to hopefully the had than

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

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

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

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

Alfred Kelly

[Indiscernible] flows, strong payments, all today, We to Consumer across Jennifer. a services. Thanks, then our payments cross-border and first levers. discuss cover Third will value-added our growth new approved performance I date a really had as Quarter volume, globally. Good In time three transactions volume, fiscal and our our results,

our deal to strength client rose improving recognized on EPS the that up largely volume. than The U.S. XX%. far a This $X.XX, payment Non-GAAP XX% cross-border XX% were expectations due the incentives, lower results, revenues current first or due QX to was expected the volumes, net timing. exceeded if in revenue quarter's service growth

at and volumes in mind look keep impact. to business of indicative performance trajectory the year-over-year of growth the are COVID-XX rates transactions, less As due that we

our constant X is provide represents of year-over-year Payments dollar XX% on credentials. growth fuel with and Debit trends to s on secular The progress large Debit Cash cash this amount and we second a which X year-over-year a In capture continued and the provide out relative compared growth across X basis saw as from XXXX, displacement we cash of results, to from process and positioning me up credentials, from will was than efforts metrics as a Cross-border FinTechs. up a ATM's volume of growth so rates. number points QX The issuers, our XXXX XX% of of quarter. XX% were to had transactions up XXX% strong Visa well rate. taken quarter, levels, points and XXXX, levers results volume, Globally this QX. the up up XX% of helped levels us was Visa to excluding to volume year-over-year. once year-over-year. second consumer So favorable flat XXXX a quarter let XXX% X X while again, was of XX% dollar was on of trends XXXX our a [Indiscernible] better strategy more XXXX, business opportunities. payments quarter, points points co-brand now wins transition future and color Vasant XXX%

cross-border top areas the X quarter. or point while not travel points cross-border. with second across Travel XX and key stable both was a in is now XXXX especially XX accelerated points X eCommerce more a accelerator improving. per excluding up also markets quarter points debit from is transactions Globally, at travel, including per cross-border XX% our come, of over the credit to quarter which XXXX, travel. it from and At versus XXX the a While see in debit. inter-Europe, QX levels, XXXX, June to QX spending for globally, XXXX. face-to-face the domestic the we trillion credit across time same we many process payments for improved improving, payments, QX. card-not-present, Fifth, exited And with payment and where volume is we day where QX. day spending spending one of over than transactions in improved we expect recover in starting absolute up XX domestically, points of and markets improved our in of card credit these travel QX QX. remains the we to with nearly remains top elevated. looking at volume per Where both XXXX, in of recovery record a million improved last card excluding process QX Pay has ago. present million and these XXX% was strong And year Credit versus to over day versus trends trends, from averaged volume Global Again, face-to-face since are present payments and Tap more quarter. we a much is $X.X averaging

countries see Tap to increasing limits. Pay to continue We

X to Pay from to Pay For above was XX% and York, Pay that have short penetration doubled reached enabled progress and continued And the Tap In in X% U.S., its San feature, face-to-face to we approximately X surpassed as XX% the months payments, face-to-face X Tap limit have quarter, we Brazil, in Jose. ago penetration, to last penetration Tap doubled ago. Merchant 's the to to million penetration cards. has in X more Pay than Pay six months Target well. transactions, stations now period. XX% XXX of face-to-face to Costco Tap gas Tap already this since enabling Francisco, example, has year and the U.S. New San this doubled in out cities every

continue Now we large to win shifting decliance, with globally. issuers

credit and their Group, Sella for spend of stores. at we largest consumer commercial our strong Southeast credit bank to private new Credit XX.X a a to renewed digital global and users' largest small to agreement. innovative with few our for union share We're Federal and pleased debit, Banca Asia. our processing the a In pay the the portfolios the these card Italy, partnership U.S. U.S., me over Sella balances, have In the the Italy, the multiyear long-standing Let we're enabling expanding solution. In with Navy banking part in in with plans the quarter. with with extended Google Android largest balances the members introduced Singapore. DBS, credit, launch agreement examples Pay from business U.S. Also U.S., in to users partnership that credit independent Visa virtual Union, million links group

in have [Indiscernible] the institution as higher Bank, credit largest also we partnership the Qatar And debit We Williams Sonoma in renew Banks. and we Bank, Middle America, across of and and Mexico. East top global the debit the grow will co-brand XX we five retailer relaunched portfolio. which an We won pleased co-brands. renew National the including Africa. renewed largest [Indiscernible] America. of in CEMEA And Williams Latin Australia be one of will in Brazil. with grow this financial -- our the brands, [Indiscernible] new In Sonoma to portfolio co-brands building with to relationship we the the In in of and a business with region, portfolios also HSBC Saudi the portfolio Banco secured British and in U.S. won portfolios Saudi portfolio, largest the e-commerce top retailer co-brand, largest continue than expanded we of we we're quarter, have in the the co-brand the alone, the X We're renew co-brand leader credit and momentum the the one a the one DBS consumer Latin Magalu, of PayPal major Itau, In of with scope U.S.

in strong relationships our with secured continue Taipei the momentum of guess new Asia-Pacific and and monetized the are significant largest Taiwan partnership And and Japan with in forged Thailand. in a the in consumer clients. Taiwan, , deepen and have co-brand our region, partnership we program YBK FinTech a renewal partnerships quarter with also in I this also Finally, see and with payments to growth. core country. part to we we banks in [Indiscernible] Taipei

year, card. have across more Paytm, those added Likewise, X partner, than Visa Visa India, virtual they credentials in Million the debit longtime million markets. last has Over issued X

represents they payments more that to enhanced September of Middle a [Indiscernible] started be announced recently months. XX has in enabling NAB over the cards. than Kakao a issuing management [Indiscernible] issue progress global billion than offers begin from virtual capabilities is next conventionals and of with offering opportunity Pay XX STC partnering crypto cards. Rappi, Bank providers had several we're XX Korea continue of is their this data platforms engine the with they've Visa incidentals operator our cards, And flows solutions. transactions with wallet management have which for deliver expense million commercial America wallet in on We crypto to X.X collectively, wallets. more U.S., capabilities of $X partnership Visa now card Direct we efforts. recently Brazil, We we credit Latin signed exchanges, pay, been plans Mexico, to Visa XX ramp credit to will subsidiary make carded [Indiscernible] additional The the East, These and and physical app card signed to greater to in growth. and addition, to in New crypto And Visa for than the Arabia's [Indiscernible] mobile and times capabilities expect leading year. Visa they X have the significant robust in than a with with , last users, and with gaining partnerships: XX corporate with telecom part to billion the and card control our issued monitor which and Saudi of million QX Visa countries within our we in the And FinTech the unbanked, over BXB. use have Singapore. been since Colombia, over in the corporate freedom and Peru issue tracts at to and Pay, million Wells growth In card of in as embed payable purchasing the coming top remains X deliver OCBC In and users, to now this STC earlier debit -- largest and partner one mobile will two of More Pay, offering these which up VNZ space, Zealand, quarter of more coming and new up expand 's virtual network. corporates drove 'XX.. cards solutions months. in started of freedoms recently one payables [Indiscernible] transaction quarter on market a part Tala, than virtual solution Across expense capabilities. business cases, and well in with Fargo as more new year. have renewed our third enables to clients long-standing including issuance expand Bank as Australia partnerships we spending volume, to nearly cryptocurrency

the transfers. PXP In instant large number management offering And clients Cloud enrolled Brazil payouts employee Visa transfers we're enable growth human its space, a and solutions, PayPal see Visa Company in cost-effective to WhatsApp and their with a settlement provide early wisely Direct to leading capital payments. payroll seeing for category, the Token merchants Australia. powered in PXP continue for digitally-enabled, And with including May. convenient, Visa We success Visa money this solution Direct payment Visa launched customers, sizable significant integrated global the off-cycle Framework, and Direct ADP of credentials announced in CIBC Visa in technology PXP feature, Direct ADP, recently by a quarter. with for and via banks providing

deposit, is seconds. [Indiscernible] and We the also fund in announced can, first , instant the developed investors Visa integrating launch individuals organizations. a of platform, funds Direct for to trade accounts quarter brokerage launch Canadian use their Visa soon allowing this Direct cases to That disbursement GoFundMe to

third move services, value-added our Let's to now XX% in QX. growth where revenue growth lever grew

Let across our me of discuss a efforts few capabilities. our

installments. First,

and quarter. post-purchase In their in notable partnering providers purchase in In extending during to North to also we've is credit our the some Cisa their offering they're Scotiabank eligible and investing installments be CIBC cooperative retail financial Visa offering addition own purchase clients. solution, offering had -- [Indiscernible] installment globally, will numerous launching installments America's developed Jarden, Day which quarter. installments for customers. progress with Canada, to is largest eligible

solution business installment of gateway a on increased enabling result grown three is Two, more CyberSource their Payments has One, omni-channel drivers. for merchant omni-channel volumes. in Global our creating acquirer addition, more In This e-commerce Bank leveraging three, Qatar and while signed top customers. solution. as Back online quarter, . payout white-labeling And and our past resources National at side at the utilize omni-channel presences acquirers, [Indiscernible] both capabilities. XX U.S. platform

DPS, Navy to Third, with earlier Federal, I the they mentioned processing utilize agreement DPS. intend

solutions. have suite In integrate to Current unique one FinTechs banking of will U.S. combines payment modern newest his of processing with as ' members X DPS issuer-processing and addition, selected integrate million current, partner. s with that the capabilities with fastest-growing API with Forward, solution called players DPS nearly create a new card which Visa all digital DPS digital programs

Consulting Visa Analytics. and Visa Finally,

our clients be have Teams X,XXX Advisory successful. delivered XX projects help Our year-to-date to to more in countries nearly

rate examples. digital we In better approval platform improved volume. and America, Year-to-date, identify a we billion solution. times from couple worth one to where of Check, Health we qualifying we the improvement have Let $XX time review [Indiscernible] Latin key leads acquisition issuers payment specific checks countries, also region of me prior Visa indicators. new minutes turn program in credit help and compared tracking incremental days called opportunities share to portfolios, have their launched reach the XX-plus across Portfolio a approval just performance developed will nearly Globally, in around a client's a top XX nearly XXX to X

X touch Before I briefly close, acquisitions. the announced me on let recently

in API, ensuring infrastructure open and a Tink. banking which combined fraud and is Visa's relationships 's technology, cyber prevention, of consumers expected accelerate investment open sustained resilient adoption the secure, in proven platform, banking Tink and platform the reliable and Europe will security help help their [Indiscernible] to customer businesses. with for by First, of innovation,

around their Currencycloud, and world. a and customers acquisition platform business Second customer foreign for payments is the enables of provide exchange that solutions FinTechs innovative banks the global to cross-border

API. network of As of part currencycloud the as such currencies, their end our of our of partners. areas. finish capabilities [Indiscernible] Visa the capabilities settlement net And front the propositions across pleased our key In growth by other Connect to networks of momentum compelling in combination will network very the be on strategy, plus these very and through as the value year, fiscal recovery BXB and the trajectory of encouraged across Visa the for with closing, our we I'm and look many our transaction board

movement. recently launched of our sitting brand as Visa growth with campaign working everyone Our X center new describes and combined Vasant? the enabling network-to-network than the value-added at we network services look for confident me over robust recovery. as Vasant. us that increasingly money and strategy and we new to turn more of it flows, I'm remains payments, our ever our are that, well With to levers positions relevant consumer let forward

Vasant Prabhu

volumes, both third as and in Fiscal everyone. growth as higher afternoon revenues Had of recovery so driven the in for both the travel, due in recognized cross-border to cryptocurrency payments results and a would reason in volumes faster-than-anticipated a XX% credit XX%. timing. in good with up client and is deal quarter Al, robust rates for you. revenue revenues by current on year quarter in net this largely payments been we a well volume, U.S., spike from quarter year. low of large growth result net growth purchases our incentives growth exceeded change Thank expectations debit difference this quarter significant The have this last

helped expense point lag, pandemic deferred Exchange to revenues X tax result EPS due year revenues step-up rates EPS U.K. primarily adjusted lower quarter X rose net growth are in service experienced recently rate payments the points. quarter steepest of started. increase And has XX%, as FY EPS strongest XXXX. QX for in The our by lower by this since third growth a the shift net this a non-recurring, lifted in QX XX% When growth in rate. 'XX grew announced a lower-than-expected fee for year Non-GAAP liabilities and revenue and by last non-cash the for volume. GAAP been net tax year recognition starting growth tax the drop and are quarter third higher.

was to points to you third the improving of by the recovery, metrics global XXXX was of trajectory we point strength debit payments relative higher the dollars, in continued X did assess X magnitude led respectively. key to volume also help and have quarter, XX% as and X both last debit, Compared fiscal spending. quarter, acceleration the In volume constant better improved year As of the as points from credit and performance credit payments second well provided we up XX%, 'XX. global with by quarter

Excluding up XX% higher Chinese over then impact. accelerated was XX restaurants acceleration e-commerce in the significant the factors, be fuelled pandemic reopened. economy points spending, above COVID as growth the card-not-present X sustained, improvement dual-branded quarter, over draught Card by restrictions persisting. are travel points XX% the the excluding presents XX% conversions, and or Online the revenue and to X was from Debit four cardholder points lifting China, which digitalization spend by from of XX% trend from growth credit and remaining than even up impact throughout cash first country. total resurgence impacted domestic even the the payments related XXXX from points minimal habits volume as quarter. improved travel, the payments and XX% 'XX volume, a the quarter spending. the accelerated payments as acceleration up XXXX XX% U.S. acquired half was as XXXX, X-point affluent interrelated XXXX, improved Credit second continue XX% volumes by well of benefiting economic during the shopping from to volume as to accelerated X in growth two towards of of XXXX, and cost strong across have entertainment, points

constant highlights. U.S. entertainment both second entertainment surpassed consistent XX% region [Indiscernible] fueled with strong, CEMEA was points by second wins. the expense unaffected XXXX volume COVID due above stable. improved from XXXX by seemingly are and our XX% over all second from As up XXXX reopened, client the quarter. cases while level fueled the strong points in levels in levels QX increases regional the steadily digitization was up up levels. other from XXXX XXXX, travel July, volumes eCommerce levels is approaching Restaurant the Travel Growth Growth quarter America region and payments few remained X quarter, through about performance up in International and growth quarter four across accelerating XX the from spending XXXX improved Brazil Latin with by points remains over high May. adoption. in categories XX% spending cash quarter and XX% robust to also A share across significant levels. in the large market the cash gains. of due from dollar

digital while and Brazil. are strong. was XXXX, among and up improving recovered regions. X quarter, XX% were points Europe also client e-commerce largest our our spend We Across from remained spending in the acceleration from [Indiscernible] restrictions in-store benefiting the partnerships Europe, relaxed from sequential second

strong, in in increase X and about X% by and across and growth down second There well as on transaction Much volume within a was were in cross-border countries volume, more by infections Visa model spike followed cryptocurrency level Australia, still points recovery and Asia-Pacific from infections led In well of of region, Singapore. with over XX% payments Direct Europe, open Southeast the second travel, transaction as borders. points transaction improving mid every levels. a Card to The continued volume Not excluding robust excluding varied region quarter XX% in steady volume, increase continued XXXX restrictions remains sharp India, the quarter, of in purchases region, due our of was remained during that trending cryptocurrency was XXXX, profits through the the growth COVID-related based restrictions. mid-April quarter of rebound growth large Cross-border impacted as improvement Performance mid rising result Global and X-point transactions the from XX Present three purchases up volume XXs. the XXXX May where by Japan, the April transactions end points ticket improving dollar excluding cross-border weakest acceleration. be slowdown to in intermittent the as their across to with higher a Constant growth quick in from the second from was sizes. COVID with from except representing lockdowns. the U.S., significantly volume from XX% Asia XXXX, quarter, May. XXXX, most travel, from starting spending at a very July profit China. QX, up

uptick guard We We have travel April. spending currency spend in the more active more seen cross-border cryptocurrencies, saw guard for purchases. in and seasonal and normal March during

America America half the well as XX% and to Europe quarter. America, as with from travel of CEMEA, levels Europe the Latin third XXXX excluding the as, infection trend in cross-border are rising other However, related and XX% ease quarantine, Mexico. into back But but a significantly XX% XXXX most in way across travel the and to The only quarter, about XX% in XXXX or U.S. depending recovered second points levels. has due the seasonal X was as XXXX XXXX than of around typical the levels. many June. travel back. requirements, of openings, Outbound of regions levels on in and Inbound vary and state and above were border third travel stronger recovery the to April June spend, at requirements. [Indiscernible] was travel cross-border from Cross-border was May levels. of Latin Latin as Expanding about Intra-Europe U.S. CEMEA, reopened

and to spend June the the relative nearly their and Xth June seen and rose rose XX on strong XXXX has XX points April, still Since points quarter in where by volumes rose nearly a least, France to of [Indiscernible] We've helped borders. present at immediate in XXX% out, to inbound recovered end both opened of XXXX XX destinations borders [Indiscernible] by over around levels. relative levels. progress. open from and nearly travel impacts [Indiscernible] Greece travel, XXXX. of Mexico in the April cross-border XXXX Mexico third Asia-Pacific opened further, Travel points quarter U.S. the by spend U.S. levels. travels of several amid from June cross-border to quarters, for end the been accelerated popular the vaccination has

point review results. rates now growth of a Moving well as revenues volume to as modifications. between yielding Service Data outside third quarter second away higher transaction shift XX% strong pricing process grew quick from XX% mix, processing helped reflected transaction financial further growth, exchange process U.S. X% the grew cross-border to transactions. by very XX% growth and dollar led particularly constant payments in and the by The the small quarter, revenue due domestic difference mix favorable

and which with particularly cover at Client will we is transaction into lapped incentive financing outperformance, gross associated revenue acceleration XX% Other was consistent cross-border lower services XX.X% initiatives underperformance foreign of In growth, year. two-thirds of due volumes G&A slower recorded total, incentives grew due favorable about about less the transaction regional spending expenses lapping of the over higher-than-expected below in Asia-Pacific. XXX effects. XX-point was and with Of up data timing second indirect from lower quarter, in were the as fluctuations due by last the from benefited denominator addition, with value-added them. and taxes. due A both to XX%, by year, excluding XX%. and accelerating services In reductions revenues, some nominal A expectations decreased COVID-related The from currency cross-border rules, investments which impacts in than and and higher QX, expenses of round than Marketing over of for pushed largely a expenses as lower-than-expected the effects. but last? per points at accounting XX or in grew professional don't we the U.S. our lapping to second last have mostly expectations, strong XX% quarter. marketing to to an the denominator, equity services has value-added with had some incentives effects. process revenue, XX% Data growth, from favorable operating gains helped outbreak our stronger and Intra-Europe International offset quarter Non-GAAP and due spend significant When currency are overall investments lower by we to there in that This delayed did new being numerator Processing lower million. fees. than incentives both can quarter volatility Also, numerator now while year-over-year services, recorded mark Steel investments high from and market mix. gains lapping expected Visa losses. our fourth which in consulting deals had partners. the revenues our led IPO, revenues strategic result volumes, a to grew minority is revenues lapping or value-added grow X

several non-GAAP, in million was financing expense, of round well. the one performing XXX this quarter excluding another recorded been IPO, very gain has driven partner's partner's our non-operating a gains, investment across portfolio That investments. investment The Our fiscal by largely will and third quarter. was gains

GAAP tax GAAP benefit. we than X.X was expected shareholders gains. billion recognition bought rate investment liabilities XX% per $X.XX in Our a $X.XX quarter. the due was of the $X.XX, $XXX.XX returned The Class last over pertaining was lower at quarter. share. a related million XX.X% EPS deferred billion-dollar, We of a due to to the was price capital of this Including taxes common billion year. of A the tax our stock, shares EPS non-recurring, non-GAAP to of a tax tax quarterly up non-GAAP and X.X average tax of for at approximately dividend X.X charge remeasurement XX.X% rate to to non-cash an

to business up outlook up our with fourth start trends about was XXXX, quarter, the XXXX. with XX% debit XX% growth for and Moving XXst. quarter. third with credit I'll July on the versus consistent through payments XX% volume U.S.

noise have can in them. numbers weekly before, said you As

third had quarter particularly to above For XXXX of June. a example, but Notable slowdowns credit. index XX% which e-commerce the XXXX. impacted and UK compared volume excluding Europe of volume, point basis, X Cross-border annual XXXX dollar improved third purchases levels. X sales to falling in International recent growth, XX% fourth should were Canada moderately is growth to up Asia-Pacific major transactions improvements to helpful retailer versus Australia in modest by on the announcements to XX/XXXX, points while which in pre continued the e-commerce regarding the within June, in close Canada, transaction in in are be lower performance a event travelers. online offset spending August by trends exceptions include the constant versus with Process below line improve week back quarter, border using and Japan. June. due openings to XXXX, largely and XXXX, remained spending versus April The in third Brazil, mostly cryptocurrency Travel-related debt payments India, with quarter,

quarter with quarter. be in revenue is July As the line to fourth trends expected [Indiscernible] and net third continue growth

lapping to We by be transactions partially lag purchases processing a benefit and services cross-border pre-April the and benefits cryptocurrency from well expect recognition falling travel offset back value-added fee the smaller levels, year-over-year as service revenues. to in recoveries

of revenue expect quarter to fiscal due third increase see client third we from of quarter. end deal And the X the the to typical QX to gross as year the incentives a to X.X percent in We closings. increase delayed versus due

'XX the to growth to on have The to Fiscal expected the revenue quarter the of expected 'XX, QX. since net third of the had push year be Fiscal the land current pandemic grow relative was fourth for year Based we quarter in as started. which QX trends, be relative third to Non-operating inclusive in growth expect expense we quarter quarter, operating around $XXX range will mid-teens, some into are expenses, million. same expenses quarter. the third to is first

as expectations we quarter to range. and - -expected Our in reopened. tax are than stronger rate had a economies In XX% summary, XX.X% third the borders

spend recovers strong. sustained robust. cross-border spend remains digitalization rates card gaining cash momentum. spending The as growth Even high recovery stayed travel as e-commerce is Debit

capture several as in the the available rates pandemic. growth hand have I'll and quarter through for stepping year. to initiatives that, they quarters and With us exciting to opportunities as value-added in it continued over to and the questions ahead grow recovery to flows to over Our businesses of we prepare We're answers. all new fourth the high Mike key look up investments at service

Mike Milotich

We're now to Michelle. take ready questions,

Operator

you. Thank

like would you press If star and question, to please your clearly ask a record name. one

to that question to from from [Operator You your X To yourself question. asking we limit Huang will first prior questioners all question. you instructions] coming announced are be JPMorgan. ask please Our heard, Tien-Tsin ensure

may ahead, You sir. go

Tien-Tsin Huang

A based here. in results but me between? card these all on what is and Great in so just recovery on engagement, and FinTechs?... much. very you've card observed curious think with investing? current so growth thinking some your far really curious.[Indiscernible] credit could a I you growth debit views I'm I'm you mentioned lot and between structural the what I and on there debit credit your growth let focused thank U.S. ask, change on versus relative ask dynamics. just Hey, here. the others

Vasant Prabhu

reflects we're you've on XXX evident the now close huge It's numbers, as that to a the world. cash. all seen step-up What seeing had has really, Debit the over COVID in levels, in digitalization indexing of a is,

it numbers, America You in that CEMEA Latin in see numbers. you see

So Debit digitization. of cash is the engine

plastic it think structurally, is are digitization let's things I spending economies quite if is many fast. back e-commerce. that there on here up, and in benefit also debit recovery -- related what credit. the restaurants, whether come customer is you travel, accelerating that change has credit fundamental seeing and going significant reopening of early cash between changes, and the at so is numbers, entertainment from a that And it's you that reopen well would the structural because are tell as been There's credit. seeing picking benefiting look too though, quarter-over-quarter What sectors have or picking is the recovery cash like use as call the significant and debit biggest Structurally, to affluent we're quite [Indiscernible] like up. to So from digitilization the eCommerce, are

few got we quite quarters robust to credit has on look And trend think recovery. at a I the even quite go remains July. as

Tien-Tsin Huang

I that. appreciate you. Thank

Alfred Kelly

separation closer seen through points credit of them the quarters would pandemic, we've in the between and add, our business separation the where like X we XX was The quarter, And pandemic saw I Tien-Tsin to that, this part growth. only the major thing between points.. debit more is

reasons further credit the indication rebound articulated. So that's for of to starting that decides

Tien-Tsin Huang

you both. Thank

Operator

you. Thank

Bernstein. comes question Rawat next Harshita from from Our

You may go ahead.

Harshita Rawat

global and open the our Hi this can good capabilities to what participate for acquisition means geography afternoon and accelerated Thanks. potential of you talk beyond of take Can also, about talk move recent? it question. towards thank you takes think, light this in the you into for taking second banking in other?June?? in what my banking activity about ways open Visa there?in and

Alfred Kelly

which of started relationships Asia Europe banks API space is of versus in access in. take we progress banking Tink is about open we It's combined has data. markets is financial of various us it in. adoption and why increased of besides that first there accelerate and Europe. is there's other of epicenter XX developers to business open attracted to that open that the the capabilities of is going developers XX,XXX that are it's banking FIs of I'll to no beyond footprint that an primarily think in allows jump with banking players customers, world, Ground The Take CEMEA. It Europe Europe, connectivity a particularly Europe. banking? single players relationships the making XX see in ideally is to awful Zero. that in technology parts and we the?open platform be fact adoption can't our in in open XXX And I?take? markets other what of reason XXXX one banking Tink. and through lot even the the the to about which and because combination And There's of an Kim in And 's is do days, but going markets. early and

Harshita Rawat

much. very you Thank

Mike Milotich

question. Next

Operator

Barclays, you. from may you ahead. Ramsey go Thank El-Assal

Ramsey El-Assal

BXB my update Hi, Connect? little and just is a happening How us thanks on And on with you Connect general strategy Could question there us is update it ramping? what's taking talk this a evolving. afternoon. for bit go-to-market give how BXB your

Alfred Kelly

we past, guess, user as and grow out the and the of At emphasis. Transaction of Banking thing continue I us that's Well, and I a Goldman more Connect. both well the had this important And point, that to and Sachs' BXB to key like as partners the our is as to the infrastructure quarter. with talked announced BXB players we're signing signing in driving Bottomline last that most we've terms in that think using as BXB?connector?. Fiserv Connect integrators of bank ACI help requires

Our robustness than that as this clients. is we Again, and see think opportunity we banking to cross-border driving the of having a capability emphasis without building corresponding out has a it payments payments, of much this build $XX the billion BXB and to having kind so alternative better be endpoints out swift Connect network, for more this, without has build a pit more network. a to

I'm we're seeing robustness more an the where on what But in transactions sign the counting interested and update to network this point progress So is flow that to And in we've connections of actually Connect infrastructure how of started we're we're versus do have being over network. driving at of continued much we've a point BXB number transactions. the to I players continued the us. their drive to they've doing

Vasant Prabhu

us business thing can Connect. other to for add Direct Payout Visa are to integrating and BXB capability of either BXB through through of their high-value, customers, cross-border for can high-volume, low-ticket, whether kinds we all and?output? low-volume the handle they which transactions single-point Connect to customers, to which Direct the Visa this. our payments, are offer all of handle we Service. a I customers announcement we for you come that seen one might is Yeah, both BXB may Visa Essentially, have

the?dock?. don't from the just them are of or to any any standpoint, they they can to So, to they interface need And form, account it's essentially, whether we client -- world. meet whatever a card part in

a important of contact. it's to note of our other sort well with So to also provide that capabilities integrates point it's single

Ramsey El-Assal

terrific. you. That's Thank

Operator

Thank you.

Our Lisa next question MoffettNathanson. with from Ellis comes

go may ahead. You

Lisa Ellis

a you Thanks on XX%, said, were services back services quarter. I later expected peeking think just time, is that kind revenues you months Hi. for talk the in lifetime outlook ago to going that in given February the but flows the Can now out in through pandemic, my new and that high?teens?, for a forward. around this a little grew momentum the value-added new evolved? and value-added broadly Good bigger taking expect made. the would Investor how the flows your at as growing of put of of about Day, Do value-added was outlook. given in new faster XX and framework now, sort services out question. it Maybe at has of afternoon. XX% Wanted you as Thank dig acquisitions the XXXX, just shifts well With call secular during now the flows which course, you services be changed some you've what's to that of both you. in pandemic,

Alfred Kelly

some extremely people and of buying which flows. actually we less But to new sell quarter. really could this during us. from in as the Lisa, Certainly and pandemic. certain services our were were transactions roll robust excited less the benefits we our started we Services. opportunities valuated Value-Added against There back value-added Obviously, said, see remained travel declines in saw about transactions cases services, I we

and -- the up more the ever, -- million time was For And ago a every million XXX quarter first XXX year day over the should day averaged quarter, from a for during say. we XXX in in than transactions pandemic. the I by transactions that

nicely. services, a to growth our in going identity about to processing, that, be we continue think into I I grow very CyberSource, two-thirds our believe services, a recovery value-added and see represent is robust get services, continued our to going of issuer So and platform-type transactions. We're as start risk our what which to

our things increase. I like to recoveries see as travel-related and benefits and back, our to I travel think start in continued card think other consulting the will benefits we've side card on comes

better even got So we're trajectory that do than I we during height trajectory off on think and years. we might X where thought pandemic, right of I in to while do. we the maybe want that would to we we our rent be feel it going have get back like the of

market. I of continues Vasant's now. In the more that terms of the obviously following And transactions Direct as of mid-XXs looks do a think to like volumes it businesses so quicker see than numbers as continue starts to well. to well. commercial echoing I was seen to this X.X that large say mirroring kind new BXB remarks, that, billion the flows, or recovery. starting volume quarters consumer space credit that, cited And it's recovering things. as I he we're in talked some is of continuing year. The small quarter travel the One commercial prior space, the to although almost feel work, think, start back couple will I'd come back I for people as very levels about return, BXB good growth the But business and space, in we've in come as than to percent Visa obviously

what Investor area, beginning have I be we, reality robust while will again, again, seeing that as really what recovery. I get the we're a we right very good at think I to trajectory Day, said for on in we'll a flows So the went new now would back would think off say is

Lisa Ellis

Thank you. Perfect.

Operator

Thank you.

next comes from Sakhrani from Sanjay question KBW. Our

You go ahead, may sir.

Sanjay Sakhrani

expectations, to stimulus the run think spend And expectations guess speak, Vasant, trends, Thanks. of outperformance much on you. my related Thank you through then, I'm third relative I'm question the if you quarter to the maybe fourth particularly how rate specific the is benefits. is, you're pent-up parse demand I how through versus to granular just to the just seeing spending outperformance. quarter, cross-border. trying to could your curious

Vasant Prabhu

Sure.

before what you the July want said unusual that of third it it at that's first when when of it. relates to U.S. same you about going I -- or day was is by in be the on. week-by-week and emphasize what because clean year, the we too of, in at part a second at the much happened to three third a look weeks the in you July so was look trends trend into read the question, week in make I [Indiscernible], things weeks week you told week you often week the as look in or and July numbers sort don't holidays the as in of your impact impacted XXXX, as but three of of that XXXX shouldn't and to your what always if So happened what

quarter. we levels. quite as So the cross-border setting back We a We of mentioned. you trend weeks sort July have saw stability May, to what of see we in that aside, for on fourth was fallen cross-border the April cryptocurrency X the of bit that's the some And pre-recall first think and had of a purchases side. in the spike

So that was replaced continuing as will That back by you in -- July, pulled recover. can has see. travel to

we big summer is, opened wider especially open. normal travel, opened in that not And what of so It's not will cross-border were borders substantially kind amount borders have travel that and gives than The Asia you of are still in are not a all given borders before. mark stability. they question improvement and that are opened more a certain borders in get

bit general. cross-border best at cross-border on cryptocurrency stable travel in third our in fourth and think back relates I neutral. the it of with that of as relatively to travel falling Is cross-border general and purchases so we're So quarter a stays with sort and view recovering the quarter, balance

impact either there in happened correlation if in nor where stable evidence impacted trend important indexes doesn't mobility right some the an even for as the are it, gone of color And no even now things U.S. stable world, lot, the stable Mobility have far, spending. still, is seeing seem world. fine. finding No we yet. with the unique or you around and in Everything seeing spendingly up evidence or of a we parts terms in on that's comments. any spending. with in be of either mobility -- And mobility. are anywhere around better highly is climbing XXXX correlated are infections world, that's Delta general or to impact infections mobility the many In of a slightly domestic businesses in And is the better, provided either adjust so the slightly we're you in

Alfred Kelly

where The some and only the but action a thing couple is a that been third spending, wain I phrase that for there's to weeks fifth to is impacted certainly would stimulus than add I use over spending different then of tends demand. the week. might drive it pent-up

the going people earlier questions, to a borders events. who a spending, purchases. white come up. it's response -- little drive Marketplace. also into are to are are nd heading are and I'd that tablecloth in And open one to then the sporting cited think A besides are to discretionary starting affluent we're customers people gyms as back back back restaurant These of the normal. the return These I bring of which -- bit something I'd the is if up people jumped other places people the Mexico to make open,

what said so And can I continue to think Vasant that I again, echo mobility improve.

a a to I of good recovery and normal good going think there's closer feel more we just here for get and like closer the therefore returning to be business. run to

Sanjay Sakhrani

Thank you.

Operator

Thank you.

Research, Our Peller you next Wolfe go question comes from Darrin with ahead, sir. Mr. may

Darrin Peller

XX% upside the When travel e-com's at cross-border when room Clearly travel to XX% guys. we held that considerable XXXX up. XX% is of ' at there's to Thanks, of XX still resumed, looking levels. at especially look how

it's cross-border, from incremental on there's higher know opportunity correlation revisit I business. just we and lower So the that? incentives revenue a net from rebates margin a

given that we've out same reconfirm per have should just could on then would that magnitude and much you if missed had? into let shareholders, of cross-border we a, year-and-a-half pass-through the that, So a you just of

Alfred Kelly

say the math grow would now, mean, simple you do I do and was you And as closer can business gives if if if XX a you to to growing roughly than it. at XX% we're you gives indexing yourself, of or I We sense to as year that it Well, delta have and that right you between XXX around continued our suppose, 'XX. and you math revenues the pre-pandemic. you been a a XXX, said, line, international that XXX right? would've indexing XX%. assume cross-border sense it apply XX%

additional because sizable the too. have -- you of I a the cross-border processing data with right. revenue do the revenue. Yes, you math, Data that it's associated in revenues do we But cross-border Processing Now, mean, that amount see some can you're is if line

Vasant Prabhu

the parts where tied to Asia, are may in portfolios. Incentives There some are for have not generally we some to travel-related world, particularly cross-border. incentives in those portfolios, tied of cross-border

would a So line. a that's reason, of of the through it gross as a flow revenue It's shift. fair incentives this of climbed. chunk our fact, revenues percent why to largely And net in mix because have

line, As our necessarily available. approach are invest the outcome. we in cross-border our far how won't business. mid-teens the we much that significant you need need faster, invest never as to the as told that -- of And quarter. We've that fourth already There in managed If expenses margins. plans. about we've will the grow recovers change in investment Margins for flows to grow into are how has how as bottom opportunities been to the through much

much as that as can is more growth Our drive growth. revenue to human to invest what to drive goal we we and need

Darrin Peller

Got it. guys. Thanks,

Operator

you. Thank

comes from from William Blair. next Napoli Our question Bob

You may go ahead, sir.

Bob Napoli

Visa's out With travel. acceleration And afternoon. view like you. of and cross-border Currencycloud there's been it good cross-border, acquisition Thank seems the up following potentially. maybe?Ex growth the on the the different growth Question of physical? on all the marketplaces in just an world,

long cross-border to the the get particular So -- more how of I and travel engaged? on any Visa guess, in growth -- term?Ex? just is any looking thoughts deeply,

Alfred Kelly

sellers never millions the how buy And is shopped up. from the the the in to for the during from is to around in seen Look, pick dramatic before. Well, who countries, online millions different easy is emphasize of online it I'll reality regions start we've world. of shopping shrinking pandemic, world different perspective people of a increase people to

are our going expectation in cross-border I to eCommerce very is growth So forward. good you continue to that see very, going

and both it go back is before. terms that to to want the was you're going be nor to domestically to trend, I think way something the whole not of in have able cross-border, eCommerce

end digitization services I people talking shop or continue I that announced, to provide going don't via to think in about. and capabilities we've think ago, and institutions, other and a partners. our extends Connect, of Northport have a capabilities cetera, the change Currencycloud is And financial the to going across how those connectivity and very on acquisition our a VisaNet capabilities other to we it's week really they and APIs powerful transaction two fundamental cool Currencycloud, FX been I to builds we FinTechs, existing know, BXB front combination. And is API's. drive the this combination of pluses, And our create that easier set that and cash of a better settlement on think networks, a

flexibility So, ultimately, provide our risks. our our sure intention and at And to is global?reach with and settlement want pricing. in competitive leveraging that make here? we leverage simplicity sophistication also scale we're to managing

eCommerce that continuing Currencycloud, to time, be we like to of -- forward. continuing a And the the over So And this capabilities see like travel cross-border robust fact capabilities. I -- the we back combination we like and asset we we see as dynamics we we Currencycloud in be like from these come to cross-border perspective, look

Vasant Prabhu

cross-border. to merchants payments our back about going question your enabling moving traditional to business past And of

we area almost as we us progress attractive cost. as,?falling? their remittances consumers for in is before. major a in example. the about it's up providers flexible, direct volume talk and investment. a And served making big Remington's at we're for proposition the And an that remittances attractive can all heard provide extraordinary You very signed very not very We

and about gig in payment payouts economy marketplace has service, well Beyond valuable heard players play the is very service, it around as as that, big Visa to payout earlier world, to a on. you which so pay role

they highlight issue signed The you one whole at third the that big is Visa is partnerships expected cryptocurrency around of merchants credentials the and wallets the to chunk cross-border XX of with a of would too. business I that million be that world, enable use a range

DXC chunk call business of PXP cross-border cross-border the course. cross-border to well beyond our let's it in significant has in BXB CXB a So space gone And of cross-border. traditional, to

Bob Napoli

it. Appreciate you. Thank

Operator

Thank you.

Our next question comes from Ashwin Shirvaikar Citibank. from

may ahead, go You sir.

Ashwin Shirvaikar

answer Ashwin. hoping investors might than Fiscal rather think primarily I'm as 'XX Hi, you that was XQ. you. about to a framework able Thank question, I be

take for through of If As planning pricing? return full-year you a of your it How expenses? to how could providing How thinking. thinking would about framework you're you say, you thinking process. kind are about going to a are you you're budget What outlook? provide

Vasant Prabhu

It's too on early to you give perspective a XXXX.

quarter what what to And play it or done give further we than we I best we'll of Altogether, how sense us is this think save think as do we where full-year we've provide for have go that, a see I a around that right you look do the we along. and what, go now we for outlook two. out we'll quarter might or fast October.

As we've to investment. given said, as we've indications it posture our relates some you already of

We of recovery. quarters preparing for are multiple

cross-border the that You'd you've -- heard perhaps, ahead earlier the of still recovery about remains us. conversation about

value-added world in we So still see clearly, services. and where come. to there's plenty post are of flows recovery in COVID we And extraordinary investing new preparation for opportunities - the

But to mid-teens are a stepping and to and lot We'll expenses for are where that growing trends of the investments, that volume discussion are so up in our thoughts or revenues we on. of our and projecting for and save the in be. So are going be going October. what pricing terms

Ashwin Shirvaikar

right. All Thank you.

Operator

Thank you.

next question Togut ISI. Our with comes David from Evercore

go ahead. may You

David Togut

by sharply Thank those Visa competitor affluent on of some consumer you. Good afternoon. Recently, issuers. centric increases were rewards and matched credit increased cards your U.S. of reward one mass its

many travel your to the on going rewards since especially how are and battle credit entertainment will these this step-up card forward, impact So for curious rewards I'm in of tied spend. view spending

Alfred Kelly

for what Well, important dealing travel category. getting is our spend being a return are issuers I ready think to

all All a America, tied programs to both reward travel. big hotels? and in airlines, more Canada, very these well for bird are options the U.S. are As many North have know, travel. generic, programs their even th and lot co-brand programs you in other the are to propositions of tied the?booked big at that in reward of

as etcetera. back will that I as it So has think trying wallet the be come -- started make in that's affluent mobility really of I increases, get come to consumer sure restrictions market and to the their get product think that their consumer issuers their to travel's back, and and airplanes as as on I are to and happens going lifted, And top the?activity?. think middle starts continue to get will car that more, what's driving that

Mike Milotich

We've time one Michelle. for more question,

Operator

Dolev Thank sir. Mizuho, you. from Dan you go ahead, may

Dan Dolev

Thanks Hey guys. for squeezing me in.

the So I how like we quarters. help you prior more more the see to the was just and of crypto drove just little can if what this get it on more crypto color. you big the a about quantify us get impact in bump Thank in Because trends think think maybe surprised should factor future into so much. volatility, some I we was don't to April

Vasant Prabhu

purchases. few of these and kinds here and there a of months seen we've spikes

our the of of lot go essentially, people from that up, based, our then entities purchases So a impacts who?microbe? go the buying most Europe. cryptocurrency them in time on business non-U.S. based often

cryptocurrencies, being when like they So these up cross-border Bitcoin. end buy transactions

is some you see cross-border there e-commerce that when buying in of a our numbers. in activity, will so And spike

has of the months. stable In at e-commerce look business, much if it and quantifying through is, you quite several ex-travel, how weeks cross-border been terms

of attribute can see another been You ago. when year there and prices a know, must was in fair We've before. purchases. spike collapse; that bump amount this a up have run-up was to a I crypto had May, April then and into a There cryptocurrency strictly a will don't you and big in

fallen has pre-April happened it at back levels, look although now it still So can running X you a was has it's you if before. quantify level to numbers. months at It higher But it is than ago. that the

Dan Dolev

you thank so much. Guys,

Mike Milotich

we And us that's thank so for joining today. all the time have, you

and you additional or feel myself. free have Jennifer you If or always questions, email call can

evening. and have much So a thank good you so

Operator

call. And today's thank concludes conference This you.

go may time. at ahead and this You disconnect

Visa (V) 28 Jul 212021 Q3 Earnings call transcript