V - Earnings call transcript Q1 2025

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Operator

Welcome to Visa's Fiscal First Quarter 2025 Earnings Conference Call. [Operator Instructions] 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, Ms. Jennifer Como, Senior Vice President and Global Head of Investor Relations. Ms. begin. may you Como,

Jennifer Como

afternoon, Earnings welcome Call. Good First Visa's Quarter XXXX everyone, you. to and Fiscal Thank

Officer. Joining Chief Chris Financial Executive today Officer; us are and Suh, Ryan Visa's McInerney, Visa's Chief

Investor IR This statistical been Relations investor.visa.com. call highlights replay archived days. has for be website. posted our will webcast containing A is on slide A section our deck website being of at site XX our on on the financial and

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

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

related will website. Our revenue otherwise results a financial available non-GAAP reflect nominal all IR and on are related earnings on materials release a The measures comments our unless other today basis and available in on GAAP our regarding basis today's and reconciliation results GAAP noted.

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

Ryan McInerney

joining afternoon, Thank Good everyone. us. for you

Washington, begin, tragic a last take Before air like moment acknowledge collision to I'd we to in D.C. night's

affected hearts victims. and event, friends Our by of all out go particularly to those the terrible this the families

$X.X to now XX%. net in billion revenue, with to our EPS up year up Turning results. year-over-year fiscal We start had strong our XX% and a

XX% excluding from XX% the volume X% X% constant payments improved intra-Europe, quarter. and drivers grew grew volume, year-over-year. transactions and overall processed in XX%. business key volume volume Cross-border rose grew grew dollars, constant payments year-over-year. Our fourth In dollars, U.S. payments international

with we network $X payments, and continues to our across our our when strategy, reflected trillion. Back total XXXX, our in had new services in articulated volume just value-added quarter on flows and consumer results. business clients our first strategy February is Our resonate crossed

same result cash to payments volume the constant now has volume dollar Latin had was Five later, time, digital than using growth get our total more America At above of payments. flipped, people Just volume a $X both as than trillion. payments. later, the years quarterly make our to from in of CEMEA X situation years XX% and and cards from we have regions, double-digit more volume their

I'm month to for looking plans discuss strategy future our forward Day growth. our Investor next to and our

look progress. For some impressive of that quarterly helped now, at the highlights have to deliver let's this

credentials, year-over-year consumer XX.X In payments, billion now year-over-year. billion X.X have and up X% up XX% we tokens,

world. grow an to digital our in credentials increasingly We continue

to Visa Interest credential continues in our grow. flexible

the We business U.S., Japan with and adding Liv have Affirm in in small expanded options cards the now with launched multicurrency solution by with the fintech a card the U.A.E. announced SMCC in funding

Visa XX% all consumer wallets Tapped tapping, for a in and is millions the the cards. their to eliminating U.S. live card nearly majority phone. of overwhelming Since at credit into entry compared provisioning manual fraud to launch, by their of as the added debit have now cards

year Japan, increased to out, transit initiatives acceptance countries now marketing campaigns, where and XX And XX% percentage percentage was would to targeted enabled penetration tap-to-pay launch including points up tap where certain face-to-face tap-to-pay pay. to up since it in in U.S., to points XX%. A the percentage issuance grew call cities, key the and was growth credentials. XX%; countries, Argentina, of XX of like Several to these the contributed of to where few all are points penetration transactions XX%; I tap-to-pay last XX

has the than tripled. of Finally, now enabled number tap markets. live XXX in transactions more phones to is more doubled number the And in last the of phone than year, and has

Now the from globe. across highlights deal few turn let me to a

of terms the Mainland largest our in of world renewed assets and card Mainland we China credit China, ICBC, number terms with partnership in cards. in biggest of in the First, in bank issuer the

SBI a Mahindra volume. ICICI renewed affluent credit with agreements on and Card and the long-standing Kotak with focus country India, Bank, our growing largest X In cross-border we Bank, issuers of in our

We Bank. agreement Mahindra renewed with debit our Kotak also

a our country with Asia region, consumer in Bank banks largest credit of consumer credit. Zealand, debit, Also Pacific business one we New in long-term signed renewal the the of across and

with with grow in enable In XXX,XXX renewed with Uruguay, and long-term nano Latin a acceptance affluent. deepened on goal and Also small America, grow verticals. we agreement partnership in with new a we Argentina portfolios to growing BAC our to Santander focus a have to and merchants for our

the portfolio, Similarly, services. includes won extended offering our which digital issuance Neon, our the launch portfolio. bank we credit expertise We new a largely of with Millas in Brazil, value-added Plus, credit of cross-border their also and partnership

We Belgium. renewed and France are also a pan-European with which Paribas, of also agreement additional to BNP have winning the includes portfolios in pleased

products. launch in Royal expanded with of win continuing about renewed of are our we Caribbean we've co-badge credentials relationship local Dutch When their issuer digital include aims Bank domestic talk the that country with XX penetration in products, Bangladesh, Puerto success share debit Banco countries the we through and we card are in Bank to credentials our acquirer Caribbean, to the commercial in payments, and new In And closed-loop the we opportunity Dutch and network. including to a networks about we Visa networks, supporting total credentials the million with X Visa. the Popular new in secured opportunity the consumer often Rico, a renewed business partnership the Puerto debit expand RBC to And from of development from converting domestic Visa also from and talk to credit system. and addressable Rico, with and multiyear transfer nearly to Bangla across the largest the credit have

us, remain very cards India, no important key quarter co-brand launched this we of a In for area And exception. was strength and X cards.

worth individuals travel with lifestyle high First, to benefits. net the Black Bank ICICI catering credit Times and card,

Aldar card. credit developer, Taj Rewards the Second, Emirates U.A.E. estate we loyalty premium for signed in hospitality the by issuing credit CEMEA region, card our real for program a with Aldar and co-branded manager, NBD. HSBC bank its card, investor first In India's with Darna co-brand

also and a launched Marriott Bank Saudi travel by global program Arabia in Bonvoy, the card co-brand with new International. We Marriott Alrajhi

the for category, the second airline. EGYPTAIR, we Africa's In portfolio won largest airline

We our also expanded card business SWISS in More & program. the Miles

operator in Volt, we and one food retailers Ukraine. with top signed ride-hailing for co-brand retail and a And the segment, the cards; Casas of in delivery Bahia, with Brazil in leading

our So products and share through business payments leveraging domestic and important traditional networks strong. brand winning to secure from issuance, co-brands, is consumer our innovation

constant flows, now transaction quarter. has with revenue over new to billion dollars. year-over-year crossed this transactions $XX the billion Direct the where Now grew Visa XX mark months last in X XX% nearly

and is which fintechs. We continue Direct to in issuers several and deepening ways, one with directly partnerships expand Visa of building

later and We payment the secure with card. funding are account, card. for with option functionality Money enable debit same have X set their X the Money user's including Users Money year. account partner Direct the partnership, their funds also instant a excited debit wallet for to to bank much via will X PXP Visa will of X back the transfer to Through into of their instantly launch this anticipated utilize

OnePay, X begin one using remittance of for Banco issuers, cross-border active with agreement engine million an wallet country's Direct will as the fintech loads. payments. In Direct users the largest more Visa Pichincha, a Visa monthly signed for we quarter, company for This with than Ecuador,

money Asia Our launched to important has our a the Direct. solution Internet broad app, this OCBC capabilities a Bank customers customers name cross-border All wallets And to solution. Chinese for and using differentiators. Visa national quarter, in their Pacific, continue Currencycloud ID launched cross-border PXP FX multicurrency deep utilizing is to they service recipient's be In allowing Romania Libra business real-time need Singapore number. their on mobile send the OCBC and in China

progress dollars. moving X% Now some volumes Commercial, in quarter had constant in where were specific this verticals. to We year-over-year notable up

our outlets. DoorDash Direct in and to customer Canada in using we shopper at had X vertical, in to virtual Visa Dashers enable soon credit U.S., we enable commercial Visa and U.S., be grocery the recent with merchant food relationship In the that the for payouts. to physical is DoorDash's are wins. addition Australia pay program This will First, pleased cards card delivery Dasher to orders

card commercial customers for In the the delivery for deal platform the Brazil, signed commercial fintech largest in of we iFood Pago, food business country. a

in In company offering the way to an care. health care policyholders vertical, easy an with France, we reached insurtech mySofie, a card virtual their for agreement health medical pay

payments XXX,XXX the Netherlands T&E we enabling around enable Airwallex Airwallex, Visa In payments Kong, the to have U.K., and vertical, and manage United card Hong Australia, in partnership businesses Canada, borders. to card and digital to a our businesses financial easily Today, deepened with money States, the programs across global than world. make movement more and live Singapore recently platform renewed

use cards will new And geographies BXB and to soon, across expense we be our in travel. expanding cases

and new helped Commercial, Visa Direct both In solutions secure and use innovative we cases to and that us continued business. retain develop

go When Now revenue Visa with of acquirers we enhance services Across services, quarter, We payments, to payments grew utilize payments. this who all the enable continue offer beyond as and constant we often happens, transactions. solutions, in compelling to value-added Visa's dollars. partner revenue on clients non-Visa Visa our generate where and solutions. in grow both merchant XX% their Acceptance to first Platform revenue for types we

acquirer all Bancard, acquirer offer to NeoNet this acquirer Three merchants. Guatemalan examples CyberSource will quarter emerchantpay, their are European and who Paraguayan

to with partnering for include to Fiserv to Europe cardholder gateway is partnership Fiserv Pacific. solution addition their into use their in our also CyberSource from of additional CardinalCommerce This and a and our We acquirers expanding Asia are in global platforms. merchants as authentication extend further Fiserv

this XXXX, payments Visa for to In new AI-based models, with our networks can to be to used detection Protect new expand fraud in by service risk in identify that score Powered risk XXXX. provides XX RTP plans account-to-account payments. solutions, we real-time on fraud AXA a launched

the players solution X than significant We Brazil, transactions. with piloting Pix are XX% more now represent of who in

enabling also consumers and payment real We to of various us closed have fraud Featurespace, clients an to our to of our time tools set provide expanded very are across protect prevention in methods. pleased acquisition

recent we enablement risk, analysis demand. where In their of to continue Alrajhi are we strong example a our relationship portfolios. advisory with services, digital expanding into across is Bank, see data project advisory One and

we our to deepening our new with value-added drive with across solutions innovating and portfolio, are partnerships services So growth. clients

for obsession performance, ever-growing our fiscal on build our To wrap continued as focus it clients we a payments. up, innovation strong of the and future with year an we began

at Investor to Day. I in to Chris. over And look you now forward our seeing February

Christopher Suh

Ryan. Thanks, afternoon, everyone. Good

results of quarter execution reflected underlying effective first drivers Our and improving our business.

dollars, volume, intra-Europe, global volume was Processed grew and excluding up up was XX% year-over-year. X% payments XX% transactions constant year-over-year. cross-border year-over-year; In

was and Net value-added in our up revenue strong transaction than dollars. Fiscal net XX%, up expectations, higher XX% services first international revenue was quarter to due revenue. primarily revenue constant

higher dollars, revenue expected, constant was in a lower-than-expected primarily due and than tax to EPS year-over-year rate. XX% up and XX% outperformance

holiday from into grew X% go details. shopping The In modest a points X the impact Credit drag from year-over-year, and the QX strong from up U.S., season, which payments X implementations, II the and X%. is December to the had let's U.S. XX debit year. of benefited Now a lapping X% last Reg total of volume grew which the grew in QX. of November period

mid-single In upper on with strongest the such the as were discretionary consumer U.S., consumer the categories The year-over-year and holiday travel growth spending retail, entertainment. a basis. was categories in growth digits

growth year. year Thanksgiving spending higher. key than Focusing higher last to on a was points Cyber on holiday from several of growth spending retail, Monday days retail points retail was shopping and of couple similar year. In we improving share holiday consumer spending spending higher a key retail growth last holiday countries with globe, saw around versus last from was trends, the E-commerce

up in volume payments quarter, payments XX% of up up America Latin markets. to up Moving dollars, in international most were our year-over-year constant was from XX%, constant and for Total Europe XX% the In dollars CEMEA regions, QX. growth up strong rates with volume XX%.

growth payments the still constant to from a above somewhat in X% QX saw improvement reflecting just Asia quarter, for muted year-over-year slight volume environment. a Pacific dollars macroeconomic

season. E-commerce QX. to volume Total dollars was in to QX, cross-border as travel XX% volumes points excluding E-commerce to intra-Europe shopping QX. in in constant retail, cross-border and transactions. ex part XX% from volume volume, up benefit for volume cross-border in speak both which year-over-year measured holiday X and travel Now card-not-present to I'll above up due year-over-year were the the continued strength strong

of Europe to in from regional travel well client volume corridors spending. performed both performance growth broader volumes Travel Outbound consumer Pacific also strength commercial our due and and Asia benefited portfolios. solid across

both and growth the For also the outbound were U.S., dollar. helped strong by e-commerce volume travel

Now results. let's first review the financial I'll with our revenue quarter start components.

XX% currency a excluding higher primarily better year. was driven dollar was foreign expected, revenue and payments lapping from back volume. pricing intra-Europe, incentives grew marketing volumes X% due and cross-border X% half-loaded that we constant dollars increase the grew up year, been processed to Service in revenue in revenue growth more Had last pricing the XX%, XX%, quarter. quarter. renewal growth volatility versus Data year-over-year than currency volatility the our the X% for below and initial transaction growth as in processing versus was largely have consulting services across strong growth metrics grew exchange benefiting than impact International by cross-border XXXX Other better-than-expected modifications. in growth revenue grew QX volume, higher the expected. from been the year constant first XX%, two guidance. in reflecting would and line prior evenly spread more included pricing Year-over-year XX% to transaction these primarily due select Client higher

growth Consumer growth and growth. payments X revenue transaction payments driven volume, our volume to was engines. cross-border improving process Now by

revenue by better-than-expected year-over-year, and a constant impact all Issuing as flows services interoperability dollars growth. dollars, Direct constant driven mainly in billion, consulting and of cross-border driven as days by Visa helped America for transactions grew $X.X year-over-year Commercial dollars, favorable services, Solutions. X% Solutions performance XX% Value-added led commercial among cross-border to constant marketing in rate transaction Identity Direct and apps. and well in by grew rose XX% Latin growth XX% growth Risk strong growth regions PXP New in revenue Visa grew year-over-year strong payments in volumes. mix by volume across

accelerating clients. expenses. $XXX for XX%, better line to as grew in had personnel investment expectations, our opportunities efforts with our and our innovation business results, increases reflecting we to serve driven workforce, to to our related severance the administrative in as our and by highest general in our focus In expenses GAAP Operating well million growth on costs our changes

we was due and an rate over mix of with XX% in geographic approximately an than approximately was in last point year, better earnings. from items, of $X.X acquisitions. and $X.XX, a including distributed rates X.X billion At buyback dividends In end to XX.X%, our Our authorization. December, point drag tax various had EPS drag expected the we from our in back billion in exchange $X.X stockholders. to remaining change X bought our approximately stock $X.X QX, billion up

U.S. seen we've have up trends let's January debit in up and move up Now payments X%, far grew driver was Processed volume QX. X% what credit X% with Through to so XX, transactions remained strong. year-over-year. year-over-year. XX%

grew volume, grew cross-border volume within saw year-over-year, transactions dollar ex volume constant excluding and For Europe, XX%. we volume grew year-over-year, cross-border total card-not-present travel XX% travel-related XX% cross-border

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

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

lapping primary double revenue leap of to we expect single For net that be the note the QX revenue quarter, would high in is growth adjusted the to second digits low adjusted the net QX growth difference I digits. and between year.

to second And adjusted growth double in in in is second rate to expense income expected quarter to our XX.X%. to second single expected digits. quarter the the We be Nonoperating high tax low be be quarter negligible. expect is operating around the

result, As second quarter expect in the to EPS a be growth high adjusted single we digits.

now Pismo January. and lapped of have of in Featurespace closed We the the acquisition impact

contribution approximately growth EPS we to to an quarter. impacts, the a For X.X in revenue and point approximately headwind acquisition operating net point growth to and minimal second X.X impact expect expense growth

minimal adjusted digits. our for cover of adjusted lower-than-expected expected to EPS our no year growth. to in year. expected have tax lowering and rest in material in tax this low full now changes revenue income revenue full to between and the impact a approximately growth low now Based X updated view There be to the headwind and X.X net for QX we growth nonoperating are rate and year Pismo rate full and the growth to expectations expect expense let's point an to growth We an to point on expense Featurespace the XX.X% year, all full be are operating Now on expect approximately adjusted our our Taking of operating EPS together, teens. the growth expectations. be double contribution XX%. net year we're and

In the remain year. to execution start strong summary, for we're on growth rest Day the of of We to forward in the and weeks. off a few a strategy look focused our XXXX to Investor

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

Jennifer Como

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

Operator

Sanjay Sakhrani Instructions] [Operator with KBW.

Sanjay Sakhrani

the rates on better sustain accelerated. go themselves? of outlook. drivers sort could just the a improved and assume Or they volumes the Obviously, Does did of through growth what improved maybe question the the sort had outlook you are. I

Christopher Suh

Sanjay, the question. Yes, the feel great about QX we thanks for results.

indicated we'll to have it. more quarter update in -- as half closer of I the X As X get we an year, on and

Operator

with Sachs. Nance Will Goldman

William Nance

up I you've stronger also that the some wanted follow of on to spending results seen.

obviously, been you you you You the That's ticket this things around called would of evident have, lot out so spent, the that spending. kind far some guys I anything But there's peel there's a a I towards? we a know back And quarter. size if being year results. mix pretty prints there's holiday things out obvious in on. some if wanted days know attribute the data anything strong some of in acceleration headwind. talking onion going about to of when I just that the couple of this you of past been think, months called over the

Curious trend. this tougher kind couple spending of outright thoughts the run versus sort acceleration an is a any of new of you and of have comps much kind on over if kind last above how that. of years lapping wondering of I'm So rate and

Christopher Suh

in U.S. numbers strong the in those little to unpack the for a strength We talked Will. about try a that in U.S., and a few It the I of let's well and the across retail, U.S. break lapping in down, as Reg the prepared bit entertainment, Thanks about the you II. markets. holiday. gave saw have things some of question, in we and We international discretionary heard The we strength regions. step-up there. was Yes. then really we good did comments That the about. travel talked categories, and feel that like then also helped the really about Well, that

And so good standpoint, really about from a volume feel payment I that.

was, X e-commerce retail cross-border the just holiday. stronger QX, not the last if strong up commentary e-commerce, then from cross-border by been added QX, had travel, step around the point and benefiting maybe on travel you level. results up from We're and all though, e-commerce points at look regions. from X Cross-border, quarters, the across X And but QX was seeing maybe that which same did

out, And so good good said, to but But see again, that to we feel into all a into it's wait the we second about QX that. we're plays year, feel how and the quarter really quarter. outlook obviously going about the pretty

Operator

Darrin Wolfe Peller with Research.

Darrin Peller

to do As parts on we trajectory the help were think had come that we're about, to progresses, to see Just you does the some first that. question. can your impact U.S.? started the year with the volume already. year How a last that really through of II couple, as in lapse. that two Reg about talked Obviously, trends regard the parts easier business, off going some with underlying moving to one that a lapping given But is year there to your

really timing with was expected? around of talked I Maybe your did we And if quick were about that us, this start results in saw? expectations the is help higher to just year line could it? you being the that in the know in come follow-up you this on Or we then at. as rebates it quarter incentives. maybe off on Or going just a changing anything terms

Christopher Suh

Okay.

Let to of all things, Darrin. me those try tackle three

recalling In why we X be year. dynamics to the are of story. the accelerating of and full course anticipated the terms Incentives talked of half X we and that sort year correctly. in part about year, was growth started of you guide, throughout the When half we the

a of and be starting before, As That our is half for payment renewals, that we more impacted year. the in year renewal first to with with expected, this has volume really than occurred. XX% going big of cycle said as the meaningfully

incentives incentives reflect QX saw will that grow in X% continue. QX the anticipate versus in we renewal XX% You That to growth will We QX. cycle. continue saw

You mentioned Reg II.

that. I think we've covered

there well I as half again, modest then what a lapping are And centered That said that as towards some second said, well. We benefits lapping all from from impact the ago. year it year the was are have are portfolio it. talk more as about a the outlook the question the asked, to and closer into to adjusted that, we'll our last QX and QX We X upside get to quarter year. when before, reflected half we certainly it's Will of reflect

Operator

Andrew Jeffrey with William Blair.

Jennifer Como

you are Andrew, there?

Andrew Jeffrey

now? me Can you hear

Jennifer Como

Yes.

Now we can.

Andrew Jeffrey

you in I'm we I And that. recent wanted frame in services has Visa's in a the Just should for and security Featurespace philosophical and value-added services processing area, gateway? offerings emphasis versus think Pismo. some a there we value-added apologize that Ryan, on change, initiatives? perhaps, trying closure some going I Visa in more or maybe to emphasizing to emphasis of talk, I change greater think sorry. about that about as given Can think up. ask forward, been opportunities

Ryan McInerney

Yes.

making prioritization the we've relates There's be priority been of board. where very as about products serving that the across kind areas progress the emphasis the or in we're clients. it no building We excited of services continue to value-added to the in change and

solutions advisory well and to focused we solutions broadly the to issuers, on as So be risk merchants solutions and examples very very ecosystem on our as delivering business. talked very delivering focused continue on in about fraud my prepared I focused some acquirers, to remarks. across delivering

to are accelerate we products that great our into companies growth, can those. we're kind ecosystem, world we of their looking of X kind that about way for the our The and bringing acquisitions. acquisitions is Featurespace around great Pismo constantly of think we're accelerate some examples had that have We clients. our bring And

of record with around we and have delivering with success. have all our the acquisition. together success as And would conversations think Pismo, well We've I that relationships clients great as Pismo that world. we're early, deep a the amazing able ever got of partners. resilient We're of years. this do already our and In evolution. the sales had, we're of having them. kind and to that not the ton with of real is in clients track we're don't Featurespace to with partnerships kind offers early bringing a We certainly partner solutions Pismo client good many, of capabilities having their once closed I that pipeline we terms many kind feedback that long but our having of we're ton is known Featurespace for partnered reason

capabilities We well. their also really, them. know against competed really We

One VisaNet fraud of of from that partners seeing you're capabilities, whether we that Visa, itself. our processing we're amazing that and array capabilities unrelated clients at to times from network to we're we're capabilities, or us many have continuing is and the platform our take a our that's them the enhancing things delivering Visa to broader unbundling those Visa then the the them, stack, we're transactions capabilities,

those focus So in value-added on continue to service. we areas all

continue our capabilities, clients. good us enhancing program of and a move have of of of to much set this see broader continue delivering We and success, you'll them to kind down them kind unbundling to

Operator

Bernstein. Harshita Rawat from

Harshita Rawat

your on want follow on capabilities ask I Ryan, this up AXA. kind of to and about unbundling the of So Visa comments

hearing How use also about are use you in think an and models What obvious and probably case. your about the cannibalization? monetization Pay cases, should we issuer network road merchant talked partnerships. vis-a-vis terms the You Bill map customers? is from of debit new dynamics RTP of XX

Ryan McInerney

Yes.

You're and very relevant kind I some our space right. we're time. we've and disputes and of We've also great places kind our account-to-account services returns and the And other Visa very of Europe from space. example now great initially partners rules in unbundling well our our where how capabilities. a kind the in delivering more value-added that unbundled risk that Visa the in capabilities broadly brand things stack, relevant U.K. acceptance, Visa reasons It's to that AXA of and of a management over the this and unbundled terms in for of notion as across as the work, charge-backs, payment is example, mentioned. consumer with then is of our

track clients the early on great what and to in XXXX. done we partners it, and U.K. are with which bunch of AXA have Visa in we always After still a we've We regulators launch is conversations do, announced

these power account-to-account obviously, And great partners for benefit be going you is to our Bill payments, taking mentioned, Pay. the confidence a real targeted use confidence conversations case excited need. that ecosystem. use in mean, and in and to through As consumers the into There's that Visa space the what is have about in account-to-account it, Pay of a at reason more we the and and to we Pay, to start. kind of I give it. a our we're real the of is rules found to more initial offer some And Bill of capabilities it. U.K. just the brand is add trusted there's processes the types clients those need merchants starting Bill to But think we

You experience, been clients they're prepared that up Brazil course hearing similar We've on Pix for looking fraud are We've and we've around from other I world. where banks our Visa safe had now needs. the been help with a payments And kind in and of account-to-account. world. drives scoring in secure drives both other of our taken partners story These you're from going kind reducing doing to It's our unbundled account-to-account examples kind decades of them what innovation we've to Pay.UK client on algorithms that stack, mentioned the protect, and of Visa with Visa the data, of types world account-to-account risk in from and RTP our agenda. the to, that mentioned transactions. driven my I lot we're during fraud great driving delivery in transactions. all agenda. year. by this mean reduce I hear to on That's targeting that the the product around around as both working said to success is we're what more of with delivering remarks, our networks XX account-to-account what challenges, U.K., the a these networks two we're

So you'll on very more excited about it. it, continue us hear and from to

Operator

caller Chiodo UBS. Our is Timothy next with

Timothy Chiodo

dig to components business. mix of cross-border want little the a into the I bit

there, other But e-commerce So roughly COVID XX% about the travel that into the is said the sitting is that are rates Visa cross-border remittances into recovery component, that payouts. rough growth there's whether or of hoping that pieces when And that any sizing. if broader any And aspect some two Direct-related be I I of of around believe evolved bit a XX% that marketplace period. it if it business. not, contribution you comments the I just general those we the growth or little in or dig now the are past the know was throughout could the you or and about e-commerce. cross-border bucket, and think roughly so

Christopher Suh

question, unpack doing Thanks here. let's for well. as some unpacking Tim. that We've been the Yes,

two component. We last much in e-commerce obviously faster It's few converged. slightly small transactions. having that quarters. mix see. that. is that, the Visa of the XX%. than is a e-commerce, much have shared of portion you've to Direct The cross-border quarter, growth about the Visa Direct growing good and a within shared that portion And growing It's That does that growing the faster. terms of was sustained total travel mix of cross-border transactions talked terms this In we've better with Obviously, the over rates e-commerce,

a add are But to great across well. that. continue the we you and Direct growth great cross-border. seeing together, all so we're momentum to is and in appreciate yields be yes, as accretive opportunity. really e-commerce continues you as And the total, Visa good it when know, And

Ryan McInerney

volume only still that thing The great of Yes. is the big in are of very with success I'd things, very big we're the scheme is and cross-border things. success, add great, a in of the Visa transactions in scheme portion it's our Direct, the having small we payment around which cross-border world and having all

Operator

James Stanley. Faucette with Morgan

James Faucette

a cryptocurrencies when you seen component. much the In we've we've particularly travel? I but helped as an have of guess, your little to visibility that? things wanted bit on what Any that, periods of could X kind from wondering uplift provide up you bookings I current seeing And on that's decelerate little cross-border follow January, growth seen well, how around there? just tied And of rates I'm great. saw done be also the here cross-border a in e-commerce the bit past, color you question. in are different would what's on kind those with

Christopher Suh

things up drivers we around ways underlying relative to crypto this the about our activity that crypto our would there some sort are one crypto, that Crypto, and smaller business? is we talked sort so the and volumes. it to of do other of show say, that. a how I e-commerce our of of where drivers. obviously, does benefits, quarter QX. in but impact typically, see it's of a an see Well, the impact modest can in demand But the I few recent given our cross-border benefit, about But e-commerce, I talked impact, when that it cross-border

do typically. where see And it so that's we

Operator

with Bank Kupferberg of America. Jason

Jason Kupferberg

on touch tokenization to for a minute. want I

I in think were you up pretty tokens XX% said a quarter. of robust number. Obviously, number the

update tokenization, magnitude us perspective. potential understanding tokenization a you general security direct from of So or be give can if benefits any it actual But of and if thinking monetization and timing opportunity wondering a we just should about. fraud just strategy there's monetization obviously, any on from the

Ryan McInerney

about Happy tokens. to talk

it's agree that get we You did the and right, number significant.

have back put wave step most token be of of will led road important many the the just we our network and maybe and in me ways, across of In tokens priorities adoption. innovation investment Let and token map the one company. Visa kind been perspective. whole

curve. it's issued hindsight, think really part was about tokens. a been beginning we decade first XXXX, a to got we were And we remember, milestone. billion that I But of like since steep think the approaching I Visa big X the S token. in just the the of in I

X,XXX last XX the got tokenized. transactions you to we've than said the We are them did billion, the Visa We the And world. growth, in back markets transactions billion billion tokens around got that so about issuing world quarter. that X/X are in ecosystem. we've all XX.X go of issuers more XX% You token XX now what got XXX-plus around now across

And as is because to, adoption performance the improvement alluded you the is meaningful. proliferating

important transactions, at and innovation. one on enabling ecosystem. significantly tokenized rates, become reduction have higher merchant e-commerce, the which just is partners; sales percentage most approval you higher XX% look we is for X in have our point that platforms rates, of for Tokens If fraud in for our good everybody

into easy to or last talked was example, making checkout we're tokens the We've quarter, with I I it passkeys our in fingerprint. embedded our we're think checkout I unlock Europe, and via as e-commerce and about to that tokens Visa you it click phone is For face pay, e-commerce FIDO simplify using as experience.

tokens we a our innovation They're the revenue. also and of deepen also critical example platform world. our relationships we around with drive a And partners, being of to those, an grow value-added that's enabler So services.

merchants examples? To your are around that what We've enrichment would monetization, token service. a question credential of be got our couple using

sale, continually Visa So this or revenue And worry expire, consumers so they a we they tokens a and to cards update for Visa renewal their to for service. we we merchants in miss updating so then don't have subscription when that credentials embed their that have subscribe credentials that service. don't about this

they that tokens customers And add, in their lives. a entire issuers daily issuer their their us the cards across merchants service use this pay all to they can ecosystem. offer We think if map across the our also you on that a from allows for Visa that and create so heat about they manage side, consumers' view their of service, enable to

plan on vast and going a ship forward. from that to of even both And we we're built ship So services and that token-enabled have is we these array tokens. the services our building and be meaningful more we generate revenue will that it meaningful,

Operator

Bank. Keane Deutsche Bryan with

Bryan Keane

like for and idea how just with to kind of X? transactions. Visa Ryan, about long I type economics? How ask assume I implement thoughts how Direct And kind on a Money. fast ramp? want take project that guys you might Any does any on X of it's to just much that volume

Ryan McInerney

Yes.

in been their partnership like list tech, a long options digital wallets, messaging that what's think crypto, apps fintech kind is a Visa network the have platform And social looking Visa it's movement of the taking. biggest of journey in of most money I they're engineered to great Visa implement networks that enable the and and that platform, is to another types kind really great example network been we've big and of the to that's that and developers best, solutions implement. looked at the their around concluded of the quickly that step the reliable, X

their their to X bank the transfer funds be platform. their on active partnership back their now able X can Visa instantly much money to As on you creators to It's monthly of is account or Money built to said, allow to the bank account. accounts. move from Direct fund use Visa paid they Money going into move There's money accounts, when that they be so to so Direct going into platform X get the back the million XXX faster to going users it. X they're

building expand to on excited platform. number and the X I great a and to the continue our and use out we're it's cases, the credit use team team Money just think our cases partnership to those So of between

Operator

Dominick Gabriele from Compass Point.

Dominick Gabriele

curious or any the the tariffs if consumer actually threat up of side partners you've heard if you've through spending, on commercial and in if was I just commercial or your tracked consumer spending past. either the that pushed

Ryan McInerney

Yes.

directly anything broadening that. question related just a seen haven't I like, And think the to bit. I guess, We

I wait think on to we're see have happens. going to what tariffs broadly, and

going potentially has difficult get what we'll to have impact implemented, going better where And for know our on a it we be very it's going business, what's as things get implemented. think we then. get I let predict to implemented, you can to it's sense to and see these

Operator

Bryan with Cowen. TD Bergin

Bryan Bergin

I ask wanted on to commercial.

I saw improvement expected a the you X% in commercial or, there 'XX quarter-on-quarter. about So XQ 'XX? got relative the further you growth, and Can sustainable in think talk in so outlook spend here guess, in to I trends I X what point improvement more

Christopher Suh

the question. for Thanks

anticipate also continues all the our cross-border as inverse where new evolve. year. a the growth into a point. You it's from I drag in are is well. strong were from mix internationally, and was volumes QX, bit helped got aided little but benefited commercial talked That of of of also That I of Europe volumes maybe to portfolios terms to trend, referenced stable embedded ATS volumes, little also performance. contributed they was was strong and the a small, a couple one, the what and This stronger in that cross-border there embedded was QX that remain And U.S. revenue from Commercial days steady, And strong mix client a guidance. as results X of into AP. is that QX which flows the I commercial our headwind. favorable the through numbers our expectations, remainder over right. in referenced things: volumes less about commercial. of by it nicely third up a QX days in We

Operator

Markets. RBC Dan with Capital Perlin

Daniel Perlin

you purchasing speak parity around and that. of could dollar strength the the point was to power the if really wondering just associated I with the like

people obviously, I'm for into but business. it this terms be mean, higher wondering to while I for cross-border, a But obviously, guess, in it's just into I going the what for little So come there's also is United proportional and a period to extent spending States. just U.S., of to plays strong a outbound just to benefit patterns, your

Ryan McInerney

clearly, Yes. and I meaningfully dollar strengthened mean, the has quickly.

to going kind periods In U.S. situation, of, stronger patterns travel shift the seen U.S. places we've who still of traveled which to to dollar, said that, some world. the around might of periods travel of that monitor. you seen to historical else early. that Americans in Having a is, obviously, had have some the for purchasing with kind relatively to it's people expensive The other again, stronger to opposite we've dollar, we're people have a ultimately You stronger lead stronger have got historical equal, we travel otherwise from patterns is, have more power all U.S. of America. for where outside going particular of it to this right, the dollars, In it's outbound

remain changes even that a We're consistent. People in times, dollar, the short you stronger seen but result holidays typically some strengthening a period have travel in so just overall the in places of world, dollar though into corridors this far. plan time. And as takes spending a past have different their pretty we travel seen around period

quarter we assuming able at this we'll insight more and you So future to be next quarters. point, stay give

Operator

Andrew Schmidt Markets. Global Citi with

Andrew Schmidt

regime just new Just wanted you've conversations parties. U.S. regulatory other Obviously, regulatory environment had the a in the view with Wondering maybe here. on to ask or and issuers your on that just

Curious Just there's in sense, I better U.S., obviously. on feeling. things few trying know going you're a get how the a to

Ryan McInerney

Yes. We're optimistic.

optimistic. are Our clients

the we've economic it I regulations, good doing so they're a think what all goal of wants innovation, heard reduce far is administration and spurring quickly of kind that growth, and move simplify very things. to efficiency, to with

for ultimately America, So good regulatory We're optimistic reduce which good should America we're clients the burden is reduce in optimistic that these going the changes that to clients are which in specifically and is will accelerate their turn efficiently and effectively, sector, to in for they're in as the businesses digital general for are Visa. in general, be good FI going run them, for in good and payments which very us. which more help financial more is, burden, for regulatory businesses turn, our our

implemented, have we're gets early, to implemented and how does. just see what quickly optimistic. and we it where But again, it's So it gets

Operator

Craig Maurer FT Partners. with

Craig Maurer

to expansion are issuers? to of concessions in the the when obviously some and that to renewals large back revenue is I'm you these up about make able into of go into different complicated, is but enter in that these lines to deal you you're what understand want sold of What this other ask in I the I is we're pricing interplay some the know or renewals. VAS degree call trying with making other big To expansions. revenue? these And being discussed much the for revenue seeing early deal or accounting how for renewals you the

Ryan McInerney

Yes.

increasingly but we they clients of of that you've and to new services quarter, ago. because you're of our with our provide our because And we're rich having it the years on The clients world. teams X guess as deals our vastly cards is one And products, new them, tremendous we broad talking multifaceted. for question are would engage extension, I our having of can our was types and different that types engage conversations this CMS of success that much just partners business with of of answer When these of way. or of choose about, your on it renewal, value-added our X their conversations reflecting network course, just services very services a seen, more credit debit of array They're cards. great because quarter, which about with and is, because because of last flows capabilities. brand, than our I been or First, this continue innovation, all because the we've over Visa people,

had. lot types of we in But agreement, about small about fraud or revenue a verticals very different BXB type motion. fleet, It's you verticals. historically alluded importantly, as would it very different a It's But agricultural involves of have for different than example, a around sales different expand specific processing, or negotiation. a to, and services, can of part relationships levers ways more commercial in to around as consumer we of we're about way, having from priorities about multifaceted payments risk business a cards, services, cards, conversations that significant much historical

our payments to taking relationships what's our But relationship with into flows expand into to building having So increasingly renewals those these partners opportunities. historically of and the new our especially it are client growth success opportunities, new really and varies market to to important consumer them. partnerships, VAS in market opportunity teams on and revenue client and deepening from opportunities, creating deep

Operator

Seaport Cantwell Partners. with Jeff Research

Jeffrey Cantwell

an about authorization of up about thinking on support usage revenue improve stepping fraud revenue costs terms thinking some potentially influence a areas from AI news does efficiency. help it of help possibly your of and like even internal tool in to you're Because whether the support week the maybe prevention. DeepSeek growth using new could to your terms Does with unlock appear this as how you're managing business in AI you're operating or thinking perhaps or whether strategy, opportunities. It your outsider's AI of might perspective, about

So and the as for going means and I of you for your as strategy opportunity Visa on wanted forward. far ask see DeepSeek you view what generally where AI to rise

Ryan McInerney

we all after of have years. agree we and adopters it, things to as Yes, We continue very in will with last opportunities it's whether happening world, you. drive couple us of many, many that that's adoption are before the early were hard broadly or DeepSeek examples for happened across Everything AI the generative at for of the happen of and have intelligence, artificial Visa. we the

very applied early finance, We've to marketing, in services, So engineering and we've adopter productivity, company's like AI that AI We've in a the really using client analytics early everywhere in space, across we particularly AI by company. gains deployed seen were of material into modeling I And working decades, we've broadly. AI been sales, space. our teams. in guess, embed been in very the AI tooling tooling and operations, our

experience So capabilities. our both management of have, the of and our aggressively to our point, applied internal and data detective science enhance decades current market-facing AI adopting teams this they're technology with at generations predictive and modeling and AI, risk

and aggressively products. build also Our new adopting AI gen product ship are to teams

we way as And role to team works going way the be we and in the data in is hard deeply itself that the great about that itself, central the driving I I are And just that we'll of to going of tokens. a talked a have sustainable that think say Visa a people future Internet change is the think quarter amazing digital we to have ensure believe commerce way commerce. I really changed all that and example. commerce force that more and works. plays quarters. an digital version And next about last shop working buy to AI fundamentally That's

Operator

JPMorgan. from Huang Tien-Tsin

Tien-Tsin Huang

out mind. a if I'll you and with close don't it question clarification, a

My in any if region. outlook Otherwise, clarification the Pac? there's you the Was just Just And your presume that change again that for really the in thinking savings contemplated was on laggard will get quickly. the from is on the good. be there, Asia Asia as the Any growth in pretty restructuring. usual curious that a it just structural only question that region. I versus macro looks guide? change in reinvested prior with question Pac, that's like

Sorry that. missed if I

Christopher Suh

Okay.

Let year. a me it. clear to one latter the charge quarter. quickly get in to We we on really the reflected this Maybe full It's It's focusing first, it. the this expect for guide Restructuring, another year. recorded expenses. just charge don't

question And sorry, again. me remind your first

Ryan McInerney

Pac. Asia

Christopher Suh

Pacific. Asia sorry. Yes,

it It than characterized X somewhat little about X right. is still muted bit up a I So environment. growth, more but point, AP a it think point, reflects from you QX, moderately

So total, quite still in in muted. it's at growing the right moving X% direction but

Jennifer Como

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

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

Operator

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

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

Visa (V) 30 Jan 252025 Q1 Earnings call transcript