Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD]

Earnings Per Share (EPS) - Diluted [USD]

56c059982d0a63c2a220b0dffcc05e3f3e5489d36f7a298229792c64a85457fd

| Metric [Unit: $ Billion] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Service Revenue          | **3.5**  **[0001403161-23-000010_q12023earningsrelease.htm:5]**  | **3.8**  **[0001403161-23-000027_q22023earningsrelease.htm:5]**  | **3.7**  **[0001403161-23-000069_q32023earningsrelease.htm:5]**  | **3.9**  **[0001403161-23-000092_q42023earningsrelease.htm:1]**  | **3.915**  **[0001403161-24-000013_q12024earningsrelease.htm:5]**  | **4.033**  **[V_3380280_6]**  | **3.967**  **[0001403161-24-000040_q32024earningsrelease.htm:5]**  | **4.2**  **[0001403161-24-000053_q42024earningsrelease.htm:1]**  |
| Data Processing Revenue  | **3.8**  **[0001403161-23-000010_q12023earningsrelease.htm:5]**  | **3.8**  **[0001403161-23-000027_q22023earningsrelease.htm:1]**  | **4.1**  **[0001403161-23-000069_q32023earningsrelease.htm:5]**  | **4.3**  **[0001403161-23-000092_q42023earningsrelease.htm:1]**  | **4.356**  **[0001403161-24-000013_q12024earningsrelease.htm:5]**  | **4.259**  **[V_3380280_6]**  | **4.489**  **[0001403161-24-000040_q32024earningsrelease.htm:5]**  | **4.6**  **[0001403161-24-000053_q42024earningsrelease.htm:1]**  |
| International Transaction Revenue | **2.8**  **[0001403161-23-000010_q12023earningsrelease.htm:5]**  | **2.7**  **[0001403161-23-000027_q22023earningsrelease.htm:1]**  | **2.9**  **[0001403161-23-000069_q32023earningsrelease.htm:5]**  | **3.2**  **[0001403161-23-000092_q42023earningsrelease.htm:1]**  | **3.019**  **[0001403161-24-000013_q12024earningsrelease.htm:5]**  | **2.984**  **[V_3380280_6]**  | **3.194**  **[0001403161-24-000040_q32024earningsrelease.htm:5]**  | **3.5**  **[0001403161-24-000053_q42024earningsrelease.htm:1]**  |
| Other Revenue            | **0.587**  **[0001403161-23-000010_q12023earningsrelease.htm:5]**  | **0.551**  **[0001403161-23-000027_q22023earningsrelease.htm:1]**  | **0.597**  **[0001403161-23-000069_q32023earningsrelease.htm:5]**  | **0.744**  **[0001403161-23-000092_q42023earningsrelease.htm:1]**  | **0.692**  **[0001403161-24-000013_q12024earningsrelease.htm:5]**  | **0.756**  **[V_3380280_6]**  | **0.780**  **[0001403161-24-000040_q32024earningsrelease.htm:5]**  | **0.969**  **[0001403161-24-000053_q42024earningsrelease.htm:1]**  |
| Client Incentives        | **(2.8)**  **[0001403161-23-000010_q12023earningsrelease.htm:5]**  | **(2.9)**  **[0001403161-23-000027_q22023earningsrelease.htm:1]**  | **(3.2)**  **[0001403161-23-000069_q32023earningsrelease.htm:5]**  | **(3.4)**  **[0001403161-23-000092_q42023earningsrelease.htm:1]**  | **(3.348)**  **[0001403161-24-000013_q12024earningsrelease.htm:5]**  | **(3.257)**  **[V_3380280_6]**  | **(3.530)**  **[0001403161-24-000040_q32024earningsrelease.htm:5]**  | **(3.6)**  **[0001403161-24-000053_q42024earningsrelease.htm:1]**  |
| Total Net Revenue        | **7.9**  **[0001403161-23-000010_q12023earningsrelease.htm:5]**  | **8.0**  **[0001403161-23-000027_q22023earningsrelease.htm:0]**  | **8.1**  **[0001403161-23-000069_q32023earningsrelease.htm:5]**  | **8.6**  **[0001403161-23-000092_q42023earningsrelease.htm:1]**  | **8.634**  **[0001403161-24-000013_q12024earningsrelease.htm:5]**  | **8.775**  **[V_3380280_6]**  | **8.900**  **[0001403161-24-000040_q32024earningsrelease.htm:5]**  | **9.6**  **[0001403161-24-000053_q42024earningsrelease.htm:1]**  |

99f6141920b3dc1bb8ddda6f51c8c2faf9a10b811ca70db605e959c173fea739

Visa Inc. is a global payments technology company that operates one of the world's largest electronic payments networks, VisaNet, providing transaction processing services such as authorization, clearing, and settlement across more than 200 countries and territories **[0001403161-24-000058_v-20240930.htm:92]**. The company does not issue cards, extend credit, or set rates and fees for account holders; instead, it facilitates secure and efficient money movement for its financial institution clients **[0001403161-24-000058_v-20240930.htm:92]**. Visa's business activities are primarily categorized into three growth pillars: consumer payments, new payment flows, and value-added services **[V_3376737_1]** **[V_3383497_2]**.

1. **Consumer Payments** - Focuses on increasing credentials and acceptance locations, with over 4.6 billion credentials and 150 million merchant locations globally **[V_3404417_1]**.
2. **Value-Added Services** - Contributes significantly to revenue growth, divided into issuing solutions, acceptance solutions, risk and identity solutions, advisory services, and open banking **[V_3389350_2]** **[V_3393963_9]** **[V_3401425_8]** **[V_3378161_7]**.
3. **New Payment Flows** - Represents a significant growth opportunity, including business-to-business (B2B), person-to-person (P2P), and government-to-consumer (G2C) transactions, with a market potential of $200 trillion **[V_3378161_5]**.

fd3678faad7bb98b4622a001995e58cb7da2ee403a546d74f675f7a4e1b7a1d8

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

e1835771e8ec6233c704d26c56450330289bee933edb7b07308029f3e7e50e4d

| Metric [USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| U.S. Revenue         | N/A     | **3,540**  **[0001403161-23-000031_v-20230331.htm:10]**  | **3,443**  **[0001403161-23-000072_v-20230630.htm:10]**  | N/A     | **3,645**  **[0001403161-24-000016_v-20231231.htm:8]**  | **3,643**  **[0001403161-24-000030_v-20240331.htm:10]**  | **3,621**  **[0001403161-24-000041_v-20240630.htm:10]**  | N/A     |
| International Revenue| N/A     | **4,445**  **[0001403161-23-000031_v-20230331.htm:10]**  | **4,680**  **[0001403161-23-000072_v-20230630.htm:10]**  | N/A     | **4,989**  **[0001403161-24-000016_v-20231231.htm:8]**  | **5,132**  **[0001403161-24-000030_v-20240331.htm:10]**  | **5,279**  **[0001403161-24-000041_v-20240630.htm:10]**  | N/A     |

e2d4a4d04c90c99b2bf9a511b0d4376bceb6c6976c06acba70d4819e4eeab0cf

5deed7c42c07cec608bd89b90a09639077427a99d6730ecd94e38bd95c905fbe

1. With the DOJ lawsuit challenging Visa's practices in the U.S. debit market, how confident are you in defending your position, and could you quantify the potential impact on your U.S. debit revenue exposure if the outcome is unfavorable?  **[V_3404417_9]** **[V_3404417_4]** 

2. Given the increasing proliferation of account-to-account payments and initiatives like Walmart's enhanced pay-by-bank offerings, how does Visa plan to compete and mitigate the risk of disintermediation in consumer payments?  **[V_3404417_10]** 

3. Can you provide more clarity on the deceleration in commercial volumes due to days mix in Q4, and what macroeconomic factors are influencing your expectations for commercial volume growth going forward?  **[V_3404417_11]** 

4. As value-added services for non-Visa transactions become a larger part of your business, can you break down the revenue contribution from these services and how they might impact your overall transaction yields?  **[V_3404417_14]** **[V_3404417_20]** 

5. With the CFPB's final open banking rule potentially changing the competitive landscape in the U.S., what strategies does Visa have to leverage open banking through Tink while addressing any potential headwinds?  **[V_3404417_13]** 

fb211aecd25d3644e5c86bf9adb655dddeee2495ce0adad536696bf4c006525a

Service Revenue

Data Processing Revenue

International Transaction Revenue

Other Revenue

Client Incentives

Total Revenue

bf032fe8326145f1f58585f3a5c8b8853d0298b6d2dfb70a4b43d851aea3cb07

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  - **Net Revenue Growth**: High single to low double digits.
  - **Incentives**: Significantly higher year-over-year growth, with more than 20% of payments volume impacted by renewals.
  - **Operating Expenses**: High single digit to low double digits.
  - **Non-Operating Income**: $150 million to $200 million.
  - **Tax Rate**: 18% to 18.5%.
  - **EPS Growth**: High end of low double digits.
  - **Q1 2025 Specifics**:
    - **Adjusted Net Revenue Growth**: High single digits.
    - **Non-Operating Income**: $35 million to $45 million.
    - **Tax Rate**: Around 18.5%.
    - **Adjusted EPS Growth**: Low double digits  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  - **Q4 2024**:
    - **Adjusted Net Revenue Growth**: Low double digits.
    - **Payments Volume and Processed Transactions**: Similar growth rate to Q3.
    - **Total Cross-Border Volume Growth**: Slightly below Q3 levels.
    - **Currency Volatility**: In line with Q3 levels.
    - **Incentives**: Lowest growth rate all year.
    - **Adjusted Operating Expenses**: High single digits.
    - **Nonoperating Income**: $40 million to $50 million.
    - **Tax Rate**: 19% to 19.5%.
    - **Adjusted EPS Growth Rate**: High end of low double digits.
  - **FY 2024**:
    - **Adjusted Net Revenue Growth**: Low double-digit growth.
    - **Adjusted Operating Expense Growth**: High single digit to low double digits.
    - **Adjusted EPS Growth**: Low teens  **[V_3393963_7]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  - **Full Year Guidance**:
    - **Adjusted Net Revenue Growth**: Low double digits.
    - **Operating Expense Growth**: Low double digits.
    - **EPS Growth**: Low teens.
  - **Q3 2024**:
    - **Adjusted Net Revenue Growth**: Low double digits.
    - **Adjusted Operating Expenses**: Low teens.
    - **Nonoperating Income**: $50 million to $60 million.
    - **Tax Rate**: 19% to 19.5%.
    - **Adjusted EPS Growth**: High end of low double digits.
  - **Specific Factors**:
    - **Pismo**: Minimal benefit to net revenue growth, 1 point headwind to non-GAAP operating expense, 0.5 point drag to non-GAAP EPS growth.
    - **FX Impact**: 1 point drag to net revenue growth, 1.5 point benefit to non-GAAP operating expense growth, 0.5 point drag to non-GAAP EPS growth.
  - **Cross-Border Volume**: Mid-teens growth.
  - **Payments Volume**: High single digits  **[V_3380280_6]** **[V_3380280_7]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024 and Q2 2024
- **Guidance**:
  - **Revenue Growth**: Low double-digit growth for the full year.
  - **Operating Expense Growth**: Low double digits for the full year and Q2.
  - **EPS Growth**: Low teens for the full year, high teens for Q2.
  - **Non-GAAP Nonoperating Income**: $350 million to $400 million for the full year.
  - **Tax Rate**: 16% to 16.5% for Q2.
  - **FX Impact**: 0.5 point drag on net revenues growth, 1 point benefit to non-GAAP operating expense growth.
  - **Pismo Acquisition Impact**: Minimal benefit to full-year net revenue growth, 0.5 point headwind to non-GAAP operating expense and EPS growth  **[V_3370886_6]** **[V_3370886_7]** .

8b7688ed36d890bfce863630b197ed92d9f0f3d3085c4baf0219e3c484979464

- American Express: Competes with Visa's network and payment solutions  **[0001403161-24-000058_v-20240930.htm:18]** .
- Diners Club/Discover: Competes with Visa's network and payment solutions  **[0001403161-24-000058_v-20240930.htm:18]** .
- JCB: Competes with Visa's network and payment solutions  **[0001403161-24-000058_v-20240930.htm:18]** .
- Mastercard: Competes with Visa's network and payment solutions  **[0001403161-24-000058_v-20240930.htm:18]** .
- UnionPay: Competes with Visa's network and payment solutions  **[0001403161-24-000058_v-20240930.htm:18]** .
- Alipay: Operates closed-loop payment systems with direct connections to both merchants and consumers  **[0001403161-24-000058_v-20240930.htm:38]** .
- WeChat Pay: Operates closed-loop payment systems with direct connections to both merchants and consumers  **[0001403161-24-000058_v-20240930.htm:38]** .
- Zelle: A bank-offered alternative network providing a platform for faster funds or real-time payments  **[0001403161-24-000058_v-20240930.htm:39]** .
- The Clearing House: Developed its own faster payments system  **[0001403161-24-000058_v-20240930.htm:39]** .
- Early Warning Services: Operates Zelle, providing another platform for faster funds or real-time payments  **[0001403161-24-000058_v-20240930.htm:39]** .

d36311a891fe5ec39662479e176027166c5a88ab7b69417296a2e38e5ecb663b

| Name                  | Position                                      | Start Date         | Short Bio                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------|-----------------------------------------------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Ryan McInerney        | Chief Executive Officer                       | February 1, 2023   | Ryan McInerney was appointed as the CEO of Visa Inc. on **February 1, 2023**. He has 20 years of experience in the payments and consumer banking industries. Previously, he served as President of Visa from May 2013 to January 2023 and held senior positions at JPMorgan Chase  **[0001193125-23-290295_d440665ddef14a.htm:16]** **[0001308179-24-000807_v4356611_def14.htm:14]** **[0001193125-23-290295_d440665ddef14a.htm:51]** .                                                                  |
| Chris Suh             | Chief Financial Officer                       | August 1, 2023     | Chris Suh joined Visa as Executive Vice President, CFO Designate on **July 10, 2023**, and became CFO on **August 1, 2023**. He was previously CFO at Electronic Arts, Inc. and held senior finance roles at Microsoft Corporation  **[0001193125-23-290295_d440665ddef14a.htm:57]** **[0001193125-23-281501_d440665dpre14a.htm:57]** **[0001308179-24-000807_v4356611_def14.htm:47]** **[0001193125-23-290295_d440665ddef14a.htm:105]** **[0001193125-23-281501_d440665dpre14a.htm:105]** .                                                                                                          |
| Paul D. Fabara        | Chief Risk and Client Services Officer        | September 2019     | Paul D. Fabara joined Visa in **September 2019**. He leads global risk and client operations, ensuring the integrity and security of the Visa payment system. He previously held senior positions at American Express, Barclays, and Alliance Data Systems  **[0001308179-24-000807_v4356611_def14.htm:47]** **[0001193125-23-290295_d440665ddef14a.htm:56]** **[0001193125-23-281501_d440665dpre14a.htm:56]** .                                                                                         |
| Rajat Taneja          | President, Technology                         | November 2013      | Rajat Taneja joined Visa in **November 2013**. He is responsible for technology innovation and investment strategy, product engineering, and global IT. Previously, he was EVP and CTO at Electronic Arts Inc. and held various roles at Microsoft Corporation  **[0001308179-24-000807_v4356611_def14.htm:48]** **[0001193125-23-290295_d440665ddef14a.htm:57]** **[0001193125-23-281501_d440665dpre14a.htm:57]** .                                                                                   |
| Kelly Mahon Tullier   | Vice Chair, Chief People and Corporate Affairs Officer | June 2014          | Kelly Mahon Tullier joined Visa in **June 2014**. She leads Visa's people, communications, government engagement, and corporate services functions. She previously served as Chief Legal and Administrative Officer and General Counsel  **[0001193125-23-290295_d440665ddef14a.htm:57]** **[0001193125-23-281501_d440665dpre14a.htm:57]** **[0001308179-24-000807_v4356611_def14.htm:48]** .                                                                                                         |
| Julie B. Rottenberg   | General Counsel                               | February 2008      | Julie B. Rottenberg is the General Counsel at Visa Inc., having joined in **February 2008**. She oversees global legal and compliance functions. Before Visa, she was a partner at Arnold & Porter, LLP, and served as a law clerk to two U.S. judges  **[0001308179-24-000807_v4356611_def14.htm:47]** **[0001193125-23-290295_d440665ddef14a.htm:56]** **[0001193125-23-281501_d440665dpre14a.htm:56]** **[0001193125-22-296190_d353100ddef14a.htm:47]** .                                                                                          |

26757692b789928b96dd361a4c8cf32d87cda22a5163ff52c4db239aba331e5d

97486566eceb5855ce15d8c39d0a8febf16321bc2295c5b50218f2547b6be8f8

| Program Details          | Program 1          | Program 2          |
|--------------------------|--------------------|--------------------|
| Approval Date            | October 2022  **[0001403161-24-000058_v-20240930.htm:120]**    | October 2023  **[0001403161-24-000058_v-20240930.htm:120]**    |
| End Date/Duration        | No expiration date  **[0001403161-24-000058_v-20240930.htm:120]**  | No expiration date  **[0001403161-24-000058_v-20240930.htm:120]**  |
| Total additional amount  | **$12.0 billion**  **[0001403161-24-000058_v-20240930.htm:120]**  | **$25.0 billion**  **[0001403161-24-000058_v-20240930.htm:120]**  |
| Remaining authorization amount | **$0**  **[0001403161-24-000058_v-20240930.htm:120]**  | **$13.1 billion**  **[0001403161-24-000058_v-20240930.htm:120]**  |
| Details                  | Completed  **[0001403161-24-000058_v-20240930.htm:120]**       | Multiyear flexibility  **[0001403161-24-000058_v-20240930.htm:120]**  |

6cf7e67ef50d952cefd908819d25bd1459982008fa2ac999ab5c769e56bb1a45

52dabecc400c5ee6bc8677d576a3a6fec916c8798d200d563b410e068046cf05

- **Strong Q1 Performance with Revenue and EPS Growth Exceeding Expectations**: Visa reported better-than-expected results in the first quarter of 2025, with net revenue up **10%** and EPS up **14%** year-over-year. This strong performance was driven by higher payments volume, cross-border volume, and processed transactions. The company feels confident about its Q1 results and expects positive trends to continue.  **[V_3413841_8]**
- **Optimistic Outlook Due to Favorable Regulatory Environment**: Visa is optimistic about the new regulatory regime in the U.S., expecting a reduction in regulatory burdens that can spur economic growth, efficiency, and innovation. This is anticipated to benefit Visa by helping financial institutions accelerate digital payments and operate more efficiently.  **[V_3413841_20]**
- **Growth in Commercial Volumes and New Revenue Streams**: Visa's commercial volumes increased by **6%** year-over-year, aided by favorable factors such as stronger commercial cross-border volumes. The company expects these strong commercial volumes to remain steady and contribute positively to revenue through the remainder of the year.  **[V_3413841_18]**

cd720c2f9ead02df88a513a60ee69e3b0956de3e0fc26f543a61185fd9f5aa46

- **Asia Pacific growth remains muted:** The Asia Pacific region showed only slight improvement from Q4, growing at just over 1% year-over-year, reflecting a somewhat muted macroeconomic environment. This lagging growth could impact Visa's overall performance if it continues.  **[V_3413841_23]**
- **Increasing client incentives may pressure margins:** Client incentives grew 13% year-over-year in Q1, up from 6% in Q4, due to a strong renewal cycle affecting over 20% of payment volume. Management expects incentives growth to continue, which could pressure net revenue growth and operating margins if not offset by revenue gains.  **[V_3413841_6]** ,  **[V_3413841_10]**
- **Uncertainty about sustaining strong spending trends:** Management expressed caution about the sustainability of recent strong spending trends, noting that it's only one quarter into the year and they will wait to see how Q2 plays out. This uncertainty may indicate potential risks to meeting future growth expectations.  **[V_3413841_8]** ,  **[V_3413841_9]**

5dc2d47aa4e56b4337b2248e1c09f01b041862bdda6f80267a414fb26788c059

1. **Improved Outlook Drivers**  
   **Q:** Does improved outlook assume growth rates sustain?  **[V_3413841_8]**   
   **A:** Management feels great about the **Q1 results** and the improved outlook reflects sustained strong performance. They will provide more updates on the second half of the year as they get closer.  **[V_3413841_8]** 

2. **Spending Acceleration Factors**  
   **Q:** What's driving stronger spending results?  **[V_3413841_9]**   
   **A:** Acceleration is due to a strong holiday season, improvements in discretionary categories like **retail, travel, and entertainment**, and lapping of **Reg II** impacts. Cross-border e-commerce benefited from strong retail and holiday spending, with travel stepping up by **4 points** from Q4.  **[V_3413841_9]** 

3. **Rebates and Incentives Impact**  
   **Q:** How do renewals affect volume and incentives?  **[V_3413841_10]**   
   **A:** Anticipated growth acceleration is influenced by incentives, with over **20%** of payment volume impacted by renewals. Incentives grew **13%** in Q1 versus **6%** in Q4 due to the renewal cycle. This trend will continue, with further impacts expected in the second half of the year.  **[V_3413841_10]** 

4. **Value-Added Services Strategy**  
   **Q:** Has Visa's VAS emphasis changed after acquisitions?  **[V_3413841_11]**   
   **A:** There's no change in emphasis; Visa remains focused on delivering solutions to merchants, issuers, and in fraud and risk. Recent acquisitions like **Pismo** and **Featurespace** enhance capabilities, allowing Visa to unbundle services and deliver them more broadly, accelerating growth.  **[V_3413841_11]** 

5. **Account-to-Account Payment Plans**  
   **Q:** Update on Visa A2A and use cases?  **[V_3413841_12]**   
   **A:** Visa A2A is on track to launch in early **2025**, initially targeting **Bill Pay**. There's a real need to add processes, rules, and trust to account-to-account payments. They're also expanding partnerships with RTP networks to reduce fraud through solutions like account-to-account protect.  **[V_3413841_12]** 

6. **Tokenization Monetization**  
   **Q:** Any direct monetization from tokenization?  **[V_3413841_15]**   
   **A:** Tokenization is key, with over **12.5 billion tokens** issued. Tokenized transactions have **6 percentage points higher approval rates** and **30% less fraud** in e-commerce. Visa monetizes through services like token credential enrichment, generating meaningful and growing revenue.  **[V_3413841_15]** 

7. **Big Deal Renewals and Revenue**  
   **Q:** How do renewals impact revenue lines?  **[V_3413841_21]**   
   **A:** Renewals involve multifaceted partnerships beyond pricing concessions, including value-added services and new flows. Conversations now cover processing, services, and expansion into small business and commercial cards, creating new revenue opportunities.  **[V_3413841_21]** 

8. **AI Strategy and Opportunities**  
   **Q:** How does AI influence Visa's strategy?  **[V_3413841_22]**   
   **A:** Visa has been an early adopter of AI, embedding it across operations, leading to productivity gains, especially in engineering. They continue investing in AI, believing it will fundamentally change digital commerce, and aim to play a central role in this transformation.  **[V_3413841_22]** 

9. **Cross-Border Business Mix**  
   **Q:** Details on cross-border e-commerce and Visa Direct?  **[V_3413841_13]**   
   **A:** E-commerce makes up about **40%** of cross-border volume. Visa Direct transactions grew **34%**, with the cross-border portion growing faster but still a small share. Overall impact on cross-border transactions remains relatively small.  **[V_3413841_13]** 

10. **Crypto's Impact on Cross-Border**  
    **Q:** How does crypto affect cross-border e-commerce?  **[V_3413841_14]**   
    **A:** Cryptocurrency activity modestly benefits cross-border e-commerce volumes but is a smaller factor. Recent crypto demand has had a limited impact on cross-border growth.  **[V_3413841_14]** 

11. **Commercial Spend Trends**  
    **Q:** Update on commercial spending growth?  **[V_3413841_18]**   
    **A:** Commercial volumes grew **6%**, up over **1 point** from Q4, aided by favorable days mix and stronger cross-border volumes. They anticipate commercial volumes will remain steady and strong throughout the year.  **[V_3413841_18]** 

12. **Asia Pacific Outlook**  
    **Q:** Any change in Asia Pac outlook?  **[V_3413841_23]**   
    **A:** Asia Pacific growth is moderately up from Q4 but remains muted, growing at **1%**. It reflects a somewhat muted environment but is moving in the right direction.  **[V_3413841_23]** 

13. **Strength of Dollar Effects**  
    **Q:** How does strong dollar affect spending patterns?  **[V_3413841_19]**   
    **A:** A stronger dollar increases U.S. consumers' purchasing power abroad but makes it more expensive for others to travel to the U.S. Historically, travel patterns adjust, but overall travel spending remains consistent.  **[V_3413841_19]** 

14. **Regulatory Environment Optimism**  
    **Q:** View on U.S. regulatory changes?  **[V_3413841_20]**   
    **A:** Visa is optimistic that efforts to reduce and simplify regulations will spur economic growth, efficiency, and innovation, benefiting businesses and Visa by reducing regulatory burdens.  **[V_3413841_20]** 

15. **Tariffs' Impact on Spending**  
    **Q:** Have tariffs affected spending trends?  **[V_3413841_17]**   
    **A:** Visa hasn't seen any direct impact of tariff threats on spending. Predicting implementation and effects is difficult, and they'll monitor the situation as it develops.  **[V_3413841_17]** 

912817d12a6802443b9137bfe788991b064345cbdc645563f697045e8455a96f

Visa Q1: Net revenue +10% YoY, EPS +14% YoY. Gains powered by strong cross-border momentum & 6% commercial volume growth. Asia Pacific lags at 1% YoY, while rising client incentives (+13% YoY) could pressure margins. Management sees continued strength but remains cautious.

a74931e046a04dbf6045f00e2dda6686f0486c24b1c7c83188047776afa2a1c1

d7b0aab6b73d4234976d529d7f60df2cc5e33b23a20db66012022c17962af3ae

**Quarterly guidance for Q2 2025:**  
- **Adjusted Net Revenue Growth**: high single digits to low double digits  **[V_3413841_6]**  (no prior guidance)  
- **Adjusted Operating Expense Growth**: high single to low double digits  **[V_3413841_6]**  (no prior guidance)  
- **Nonoperating Income**: negligible  **[V_3413841_6]**  (no prior guidance)  
- **Tax Rate**: 17.5%  **[V_3413841_6]**  (no prior guidance)  
- **Adjusted EPS Growth**: high single digits  **[V_3413841_6]**  (no prior guidance)  

**Annual guidance for FY 2025:**  
- **Adjusted Net Revenue Growth**: low double digits  **[V_3413841_7]**  (raised from high single digits to low double digits  **[V_3404417_7]** **[V_3404417_6]** )  
- **Adjusted Operating Expense Growth**: no material changes  **[V_3413841_7]**  (no change from high single digits to low double digits  **[V_3404417_7]** **[V_3404417_6]** )  
- **Nonoperating Income**: no material changes  **[V_3413841_7]**  (no change from $150 million to $200 million  **[V_3404417_7]** **[V_3404417_6]** )  
- **Tax Rate**: 17.5% to 18%  **[V_3413841_7]**  (lowered from 18% to 18.5%  **[V_3404417_7]** **[V_3404417_6]** )  
- **Adjusted EPS Growth**: low teens  **[V_3413841_7]**  (no change from high end of low double digits  **[V_3404417_7]** **[V_3404417_6]** )  

939172fe0c47fe9a7c7a411f59b067e268ab40d715de975758725c3b070f28c0

**Quarterly guidance for Q1 2025:**
- **Adjusted Net Revenue Growth**: High single digits  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]**  (lowered from low double digits  **[V_3393963_7]** )  
- **Non-Operating Income**: $35 million to $45 million  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]**  (lowered from $40 million to $50 million  **[V_3393963_7]** )  
- **Tax Rate**: around 18.5%  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]**  (lowered from 19% to 19.5%  **[V_3393963_7]** )  
- **Adjusted EPS Growth**: Low double digits  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]**  (lowered from high end of low double digits  **[V_3393963_7]** )  

**Annual guidance for FY 2025:**
- **Net Revenue Growth**: High single to low double digits  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]**  (lowered from low double-digit growth  **[V_3393963_7]** )  
- **Operating Expenses**: High single digit to low double digits  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]**  (no change from high single digit to low double digits  **[V_3393963_7]** )  
- **EPS Growth**: High end of low double digits  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]**  (lowered from low teens  **[V_3393963_7]** )  
- **Incentives**: Significantly higher year-over-year growth, with more than 20% of payments volume impacted by renewals  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]**  (no prior guidance)  
- **Non-Operating Income**: $150 million to $200 million  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]**  (no prior guidance)  
- **Tax Rate**: 18% to 18.5%  **[V_3404417_6]** **[V_3404417_7]** **[V_3404417_8]**  (no prior guidance)  

b0909f1aa145e94b7eeef52a33616eb48a58e661aab5c62171e9558d65094893

- Total Revenue: $9,510 million (**+10% YoY**)  **[0001403161-24-000016_v-20231231.htm:3]** **[0001403161-25-000017_v-20241231.htm:8]** **[0001403161-25-000017_v-20241231.htm:28]**   
- Service Revenue: $4,208 million (+7% YoY)  **[0001403161-24-000016_v-20231231.htm:3]** **[0001403161-25-000017_v-20241231.htm:8]** **[0001403161-25-000017_v-20241231.htm:28]**   
- Data Processing Revenue: $4,745 million (+9% YoY)  **[0001403161-24-000016_v-20231231.htm:3]** **[0001403161-25-000017_v-20241231.htm:8]** **[0001403161-25-000017_v-20241231.htm:28]**   
- International Transaction Revenue: $3,442 million (**+14% YoY**)  **[0001403161-24-000016_v-20231231.htm:3]** **[0001403161-25-000017_v-20241231.htm:8]** **[0001403161-25-000017_v-20241231.htm:28]**   
- Other Revenue: $912 million (**+32% YoY**)  **[0001403161-24-000016_v-20231231.htm:3]** **[0001403161-25-000017_v-20241231.htm:8]** **[0001403161-25-000017_v-20241231.htm:28]**   
- International Region Revenue: $5,772 million (**+16% YoY**)  **[0001403161-24-000016_v-20231231.htm:8]** **[0001403161-25-000017_v-20241231.htm:8]**   
- Diluted EPS: $2.58 (+8% YoY)  **[0001403161-24-000016_v-20231231.htm:3]** **[0001403161-25-000017_v-20241231.htm:3]** **[0001403161-25-000017_v-20241231.htm:16]** **[0001403161-25-000017_v-20241231.htm:25]** **[0001403161-25-000017_v-20241231.htm:23]**   

2140d006c9b7edca88e2b36a2a08982cd949b7b945553af48121d30508f160db

U.S.

International

- Visa Europe

- Revenues under Framework Agreement

2fc91cf60c2da169a6c084fdfd163465c1205077aa984a3699cb069f083e7815

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 2007  **[0001403161-24-000058_v-20240930.htm:84]**    | Present  | Current auditor   |

319aa4724d2e273277b049290150474a44ac0c9f7c655ae7af9f4e8003d129df

000a8238744086dd94c81539ee3ec800fe12381b0498d1c0ae39662c5e270f20

- Total Revenue: $9,617 million (+**12%** YoY)  **[0001403161-23-000099_v-20230930.htm:101]** **[0001403161-24-000058_v-20240930.htm:69]**   
- Service Revenue: $4,199 million (+8% YoY)  **[0001403161-23-000099_v-20230930.htm:101]** **[0001403161-24-000058_v-20240930.htm:69]**   
- Data Processing Revenue: $4,610 million (+8% YoY)  **[0001403161-23-000099_v-20230930.htm:101]** **[0001403161-24-000058_v-20240930.htm:69]**   
- International Transaction Revenue: $3,468 million (+9% YoY)  **[0001403161-23-000099_v-20230930.htm:101]** **[0001403161-24-000058_v-20240930.htm:69]**   
- Other Revenue: $969 million (+**30%** YoY)  **[0001403161-23-000099_v-20230930.htm:101]** **[0001403161-24-000058_v-20240930.htm:69]**   
- U.S. Revenue: $3,871 million (+8% YoY)  **[0001403161-23-000099_v-20230930.htm:101]** **[0001403161-24-000058_v-20240930.htm:69]**   
- International Revenue: $5,746 million (+**14%** YoY)  **[0001403161-23-000099_v-20230930.htm:101]** **[0001403161-24-000058_v-20240930.htm:69]**   
- Net Income: $5,318 million (+14% YoY)  **[0001403161-23-000099_v-20230930.htm:77]** **[0001403161-24-000058_v-20240930.htm:86]**   
- EPS (Diluted): $2.65 (+**17%** YoY)  **[0001403161-23-000099_v-20230930.htm:77]** **[0001403161-24-000058_v-20240930.htm:86]**   

4f0ecd0edcf3d44dac7efabc5fd58aa18931562b7f5e8394c444e0ddb2bc4b51

eec6ab940806d3a1823bbee13dbe92f89c8554c9566b8e24b66da2bca08b1246

537a711ee7b0642f8c998affda0ebd2ed074f4e36a26f48819bdd0f5e4200eb7

ffbbf046cef2c2d455e04bde01f47c3ea3c3bd46681d16213ade3d6f777a8931

- **Visa Direct transactions grew 31%** in the quarter, with **new flows revenue increasing 14%**, demonstrating strong growth in Visa's new payment flows.  **[V_3380280_11]**
- Cross-border e-commerce business is strong, growing above expectations, with total cross-border volumes growing **16%** in Q2 and expected to grow in the mid-teens in the second half, contributing to Visa's robust cross-border performance.  **[V_3380280_9]** **[V_3380280_19]**
- **Value-added services revenue has grown over 20%** in each of the first two quarters, showing evident momentum and significantly contributing to Visa's growth.  **[V_3380280_19]**

538a6fe9ed674ad6b234aa8aab80bc3c0fc3b8d801c82f9bf22f42666b8fbc11

- **Visa's U.S. payment volumes growth slowed down by about 80 basis points from Q4 to Q1, partly due to a "modest impact from Reg II," leading to decreased routing of transactions through Visa's network.**  **[V_3370886_10]**
- **Cross-border travel-related spend growth decelerated to 16% year-over-year in January, down from higher growth rates, potentially indicating a slowdown in this revenue stream.**  **[V_3370886_16]**
- **Visa's projected high-teens EPS growth in Q2 is driven by one-time tax benefits from the resolution of tax matters outside the U.S., which will not contribute to full-year EPS growth, expected to remain in the low teens.**  **[V_3370886_12]**

2f1ca18dcd4a6a0d46340177bd8249869bb7fe1edf511fc97a515922d5b6ffa6

1. **U.S. Debit Trends**  
   **Q:** Is U.S. debit growth weakening in Q3 guidance?  
   **A:** Visa sees **stable U.S. debit volumes**, normalizing for certain factors. Despite observed weakening in April, they believe data indicates **stable volume growth** in both credit and debit in the U.S.  **[V_3380280_10]** 

2. **Cross-Border Outlook**  
   **Q:** How is cross-border volume growth and outlook?  
   **A:** Cross-border volumes grew **16%** in Q2, with travel up **17%** and e-commerce performing better than expected. Asia Pacific recovery is slower than anticipated, leading to a moderated outlook for travel but increased expectations for e-commerce. Overall, they expect cross-border volumes to grow in the **mid-teens** in the second half.  **[V_3380280_21]** 

3. **Value-Added Services Growth**  
   **Q:** What drove the uptick in value-added services growth?  
   **A:** Visa's value-added services grew over **20%** in the first two quarters, driven by deepening client penetration, new product development, and geographic expansion. The momentum is evident, and opportunities are enormous with clients using an average of **22 services**.  **[V_3380280_13]** **[V_3380280_18]** 

4. **Incentives Guidance**  
   **Q:** Will incentives growth rate step down in H2 as planned?  
   **A:** Despite lower incentives in H1 due to deal timing, Visa expects incentive growth to be lower in H2, as previously guided. The **Q4 incentive growth rate** is expected to be the **lowest** of the year.  **[V_3380280_12]** 

5. **Merchant Settlement Impact**  
   **Q:** Impact of merchant settlement on interchange and dynamics?  
   **A:** The settlement brings **clarity and stability**. It reduces interchange for U.S. credit cards for both Visa and Mastercard, with **no increases** for five years, and gives merchants more flexibility. Overall, it allows the market to move forward.  **[V_3380280_17]** 

6. **Visa Deep Authorization**  
   **Q:** What is Visa Deep Authorization aiming to achieve?  
   **A:** It's an e-commerce transaction risk scoring platform tailored for the U.S. market. Built on deep learning, it addresses sophisticated fraud, aiming to **reduce fraud rates** and **increase authorization rates**, enhancing buyer and seller experiences.  **[V_3380280_15]** 

7. **Open Banking in the U.S.**  
   **Q:** How is Visa approaching open banking in the U.S.?  
   **A:** Leveraging Tink's success in Europe, Visa sees opportunity in the less developed U.S. market, aiming to introduce proven open banking capabilities and expand in a market at early stages of development.  **[V_3380280_14]** 

8. **New Flows Growth**  
   **Q:** What contributed to new flows growth recovery?  
   **A:** New flows revenue grew **14%** in Q2, with Visa Direct transactions up **31%**. The recovery reflects passing of prior one-time lapping issues, with expectations of continued strong growth in H2.  **[V_3380280_11]** 

9. **Gaining Share from Domestic Networks**  
   **Q:** How is Visa taking share from domestic networks?  
   **A:** By demonstrating the value of Visa cards over domestic schemes—offering better e-commerce capabilities, cross-border travel opportunities, and superior risk and fraud prevention—leading clients to issue more Visa cards.  **[V_3380280_17]** 

10. **Prosa Acquisition in Mexico**  
    **Q:** What's the progress and opportunity with Prosa in Mexico?  
    **A:** Visa sees significant opportunity in Mexico. With majority ownership in Prosa, they plan to bring world-class capabilities and value-added services, leveraging Prosa's processing experience and client base to digitize payments.  **[V_3380280_20]** 

11. **Service Yields Stability**  
    **Q:** Why did service yields decline, and outlook forward?  
    **A:** Service revenue grew **7%**, slightly below payment volume growth due to several small factors. Yields remained consistent with Q1 and over recent quarters, and net revenue yield is stable across the company.   

12. **FX Volatility Impact on Cross-Border**  
    **Q:** How does FX volatility affect cross-border revenues?  
    **A:** Currency volatility is at multiyear lows, impacting treasury revenues. Visa assumes low volatility continues into Q3, with slight improvement in Q4. Underlying business health is strong, but volatility remains a variable.  **[V_3380280_21]** 

13. **Average Ticket Size Trends**  
    **Q:** What's the trend and outlook for average ticket size?  
    **A:** Global average ticket size was slightly down, consistent with Q1. In the U.S., ticket size improved but remained slightly negative. Expect U.S. ticket size to turn positive in H2, with global ATS slightly negative due to Asia Pacific impact.  **[V_3380280_12]** 

14. **Middle East Growth Potential**  
    **Q:** Is the Middle East a significant growth market?  
    **A:** Visa sees strong execution and client engagement in the Middle East, capturing opportunities by meeting client needs and driving their strategies, as evidenced by wins like Emirates.  **[V_3380280_16]** 

15. **Addressing Cash and ACH Opportunity**  
    **Q:** How is Visa capturing the $20 trillion cash and ACH market?  
    **A:** Visa is having success across cash, ACH, and domestic network conversions. The opportunity is enormous, with efforts varying by region, and some teams ahead in different parts of the world.   

9fc6098e82120d2f1d961bf347f5ceaa9cb1b9dc964f0ca95c5777420ae8e04c

- **Visa reaffirmed its outlook for fiscal year 2024, expecting low double-digit growth in processed volumes and transactions**, indicating confidence in stable drivers and resilient consumer spending.  **[V_3370886_7]** **[V_3370886_17]**
- The company reported a strong **17% growth in merchant acceptance locations** and sees significant opportunities ahead, targeting hundreds of millions of small businesses and leveraging mobile payments to drive further volume expansion.  **[V_3370886_15]**
- **Cross-border volumes grew 16% year-over-year**, with healthy growth in both travel and e-commerce, and Visa feels positive about the outlook for this segment for the rest of the year.  **[V_3370886_16]**

919fb4e68d3f60f31acb56bc48672810cf33d4989139bcdffb26489ac93647f5

- **Strong growth in Value-Added Services (VAS)**: VAS revenue grew to over **$2.2 billion** this quarter, with **over 20% growth** for many consecutive quarters, significantly contributing to Visa's consolidated revenue growth.  **[V_3393963_9]**
- **Visa Direct shows tremendous potential**: Visa Direct transactions increased from **2 billion in 2019** to **2.6 billion this quarter**, representing a **41% year-over-year growth**, indicating early stages of growth potential.  **[V_3393963_17]**
- **Rapid adoption of Tap to Pay**: Tap to Pay has reached **80% penetration** globally (excluding the U.S.), and has surpassed **50% in the U.S.**, with cities like New York City exceeding **75% penetration**, highlighting significant growth opportunity in contactless payments.  **[V_3393963_13]**

cc44ff023a0ff87128e63debb2b3e7a616045facb96ffffc3ed373d91c52546b

| Year | Amount Due (in millions) | Debt Type              | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|----------------------------|------------------------|------------------------------------------------------------------------------------|
| 2025     | $4,000 **[0001403161-25-000017_v-20241231.htm:13]**               | 3.15% Senior Notes         | 3.26 **[0001403161-25-000017_v-20241231.htm:13]**          | 19.1% = (4,000 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                            |
| 2026     | $1,412 **[0001403161-25-000017_v-20241231.htm:13]**               | 1.50% Euro Senior Notes    | 1.50 **[0001403161-25-000017_v-20241231.htm:13]**          | 6.8% = (1,412 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                            |
| 2027     | $4,296 **[0001403161-25-000017_v-20241231.htm:13]**               | 1.90%, 0.75%, 2.75% Notes | 1.90, 0.75, 2.75 **[0001403161-25-000017_v-20241231.htm:13]** | 20.6% = (4,296 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                            |
| 2029     | N/A                          | 2.00% Euro Senior Notes    | 2.00 **[0001403161-25-000017_v-20241231.htm:13]**          | N/A                                                                              |
| 2030     | $1,500 **[0001403161-25-000017_v-20241231.htm:13]**               | 2.05% Senior Notes         | 2.05 **[0001403161-25-000017_v-20241231.htm:13]**          | 7.2% = (1,500 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                            |
| 2031     | $1,000 **[0001403161-25-000017_v-20241231.htm:13]**               | 1.10% Senior Notes         | 1.10 **[0001403161-25-000017_v-20241231.htm:13]**          | 4.8% = (1,000 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                            |
| 2034     | $680 **[0001403161-25-000017_v-20241231.htm:13]**                 | 2.375% Euro Senior Notes   | 2.375 **[0001403161-25-000017_v-20241231.htm:13]**         | 3.3% = (680 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                              |
| 2035     | $1,500 **[0001403161-25-000017_v-20241231.htm:13]**               | 4.15% Senior Notes         | 4.15 **[0001403161-25-000017_v-20241231.htm:13]**          | 7.2% = (1,500 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                            |
| 2040     | $1,000 **[0001403161-25-000017_v-20241231.htm:13]**               | 2.70% Senior Notes         | 2.70 **[0001403161-25-000017_v-20241231.htm:13]**          | 4.8% = (1,000 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                            |
| 2045     | $3,500 **[0001403161-25-000017_v-20241231.htm:13]**               | 4.30% Senior Notes         | 4.30 **[0001403161-25-000017_v-20241231.htm:13]**          | 16.8% = (3,500 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                           |
| 2047     | $750 **[0001403161-25-000017_v-20241231.htm:13]**                 | 3.65% Senior Notes         | 3.65 **[0001403161-25-000017_v-20241231.htm:13]**          | 3.6% = (750 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                              |
| 2050     | $1,750 **[0001403161-25-000017_v-20241231.htm:13]**               | 2.00% Senior Notes         | 2.00 **[0001403161-25-000017_v-20241231.htm:13]**          | 8.4% = (1,750 / 20,888) * 100 **[0001403161-25-000017_v-20241231.htm:13]**                                            |

d0776521c728c26d9c78a9636148920b43d18dec01e0aa4d9933e32a64eb82be

- **Visa is facing significant regulatory and litigation challenges in the U.S., including a Department of Justice lawsuit**, and is not disclosing its revenue exposure to U.S. debit, creating uncertainty for investors.  **[V_3404417_9]**
- **Visa may have limited operating leverage in the future, as expenses are projected to grow at similar rates to revenues**, with no commitment to grow revenue faster than expenses, potentially impacting profitability.  **[V_3404417_19]**
- **Visa's growth in the Asia-Pacific region, especially China, is uncertain due to macroeconomic conditions**, and the company does not forecast the economy, potentially limiting growth in that important market.  **[V_3404417_19]**

de7c85d05743d99db25e96b4d1fb276ba0c1fdfdfff96a0782220740e6674369

- **Slowing U.S. payments volume growth:** In July, U.S. payments volume growth decreased to **4%** year-over-year from **5%** in Q3, with credit growth at **3%** and debit growth at **4%**. This slight deceleration may indicate potential challenges in the U.S. market.  **[V_3393963_8]**
- **Cross-border volume growth expected to slow:** Visa anticipates that total cross-border volume growth will be slightly below Q3 levels in Q4, partly due to macroeconomic challenges in Asia affecting travel-related volumes. This could impact overall revenue growth, especially since cross-border transactions are a significant driver for Visa.  **[V_3393963_9]**
- **Moderation in spending among lower spend consumer segments:** Visa observed a slight moderation in spending by lower spend consumer cohorts in July, which may be correlated to the divergence in credit and debit growth. This could signal consumer stress and potentially affect future transaction volumes.  **[V_3393963_16]**

621b9e6b848a546da92004f74d356ed85432effbcde1d0235eff7805e87f9b6d

1. **Reg II Impact on U.S. Volume**  
   **Q:** How is Reg II affecting U.S. volumes?  
   **A:** Visa saw a modest impact from Reg II, with U.S. payment volume growth down about **80 basis points** from Q4 to Q1.  **[V_3370886_10]**  However, there have been no meaningful changes in volumes being routed away since October, and the impact remains consistent with Visa's expectations for the rest of the year.  **[V_3370886_10]** 

2. **Cross-Border Travel Growth Expectations**  
   **Q:** What's the outlook for cross-border travel growth?  
   **A:** Cross-border volumes grew **16%** in Q1, with travel up **19%**.  **[V_3370886_16]**  While growth slowed slightly in January, Visa feels confident about the outlook, expecting continued strong performance supported by regional expansions and recovery in travel sectors.  **[V_3370886_16]** 

3. **New Flows Growth Impact**  
   **Q:** Why did new flows growth slow this quarter?  
   **A:** New flows were impacted by a mix shift as cross-border volume growth slowed due to normalizing travel.  **[V_3370886_8]**  Additionally, a few onetime items larger than typical affected growth in Q1.  **[V_3370886_8]**  Despite this, Visa expects full-year new flows revenue growth to exceed consumer revenue growth.  **[V_3370886_8]** 

4. **Pismo Acquisition and Cloud Core Banking**  
   **Q:** How does Pismo fit into Visa's strategy?  
   **A:** Visa views Pismo as a global, cloud-based processor and core banking provider that meets banks' needs to transition from legacy systems to the cloud.  **[V_3370886_18]**  They aim for Pismo to be the preferred provider for banks worldwide, including midsized banks in the U.S. moving their legacy cores.  **[V_3370886_18]** 

5. **Value-Added Services Growth and Drivers**  
   **Q:** Can you expand on value-added services growth?  
   **A:** Value-added services generated over **$2 billion** in revenue this quarter, up **20%** in constant dollars.  **[V_3370886_13]**  Growth is driven across issuing solutions, acceptance solutions like CyberSource, disputes services like Verifi, and risk and identity solutions.  **[V_3370886_13]**  Client demand remains strong, and Visa continues to expand these services globally.  **[V_3370886_13]** 

6. **Second Half Revenue Acceleration Drivers**  
   **Q:** What will drive revenue acceleration in H2?  
   **A:** Visa anticipates drivers to tick up in the second half due to improving average ticket sizes as they lap lower sizes in the U.S. and see continued inflation in certain international regions.  **[V_3370886_17]**  They're also executing growth initiatives in global markets, such as processing wins in Latin America.  **[V_3370886_17]** 

7. **EPS Growth Outlook Reconciliation**  
   **Q:** Why won't high Q2 EPS growth carry over to the year?  
   **A:** The high-teens EPS growth in Q2 is due to specific tax matters resolved outside the U.S., reducing the tax rate to about **16%** for the quarter.  **[V_3370886_12]**  This benefit does not affect the full-year tax rate or EPS growth outlook, which remains unchanged.  **[V_3370886_12]** 

8. **Merchant Acceptance Growth Sustainability**  
   **Q:** Is 17% merchant acceptance growth sustainable?  
   **A:** Visa believes there is significant opportunity to sustain or exceed the **17%** growth in acceptance locations.  **[V_3370886_15]**  With hundreds of millions of small businesses still not on their network and innovations like Tap to Phone, they are pushing to expand acceptance globally.  **[V_3370886_15]** 

9. **Onetime Items Affecting U.S. Results**  
   **Q:** What onetime items impacted U.S. results?  
   **A:** In Q1, Visa had larger-than-typical adjustments from truing up incentives and rebates with clients based on reported metrics.  **[V_3370886_10]**  This net impact affected new flows growth, but underlying business fundamentals remain healthy.  **[V_3370886_10]** 

10. **Impact of Severe Weather on Volumes**  
    **Q:** Did severe weather affect recent volumes?  
    **A:** Yes, growth slowed in early January due to extreme cold weather in parts of the U.S., directly correlating to lower card-present volumes.  **[V_3370886_11]**  Such weather impacts are typically short-lived and expected to smooth out over the quarter.  **[V_3370886_11]** 

11. **Reaffirmed Guidance on Volume Growth and Incentives**  
    **Q:** Any changes to volume growth or incentive guidance?  
    **A:** Visa reaffirms the full-year outlook on key drivers, expecting acceleration in the second half due to factors like average ticket size improvements.  **[V_3370886_19]**  There's no change in incentive outlook; they continue to manage the business to net revenue growth.  **[V_3370886_19]** 

12. **Clarification on Growth Outlook and OpEx Guidance**  
    **Q:** Any updates on growth and operating expenses?  
    **A:** Visa expects growth to accelerate in the second half, consistent with prior expectations.  **[V_3370886_14]**  Operating expenses will be slightly higher due to including the impact of the Pismo acquisition and updates based on current FX rates.  **[V_3370886_14]** 

0512fad1be7d3f118962e2dea56c1d06c9f995cc7c8ea196b0cdd745174382e3

- **Slower recovery in Asia Pacific cross-border travel is leading Visa to moderate its outlook for travel in that region**.  **[V_3380280_19]**  Visa's management noted that while overall cross-border volumes remain strong, the pace of recovery in Asia Pacific travel is slower than expected due to macroeconomic weakness in key markets like Australia and Mainland China, weakness in some Asia Pacific currencies impacting consumer purchasing power, and airline capacity constraints.  **[V_3380280_6]** **[V_3380280_19]**
- **Currency volatility at multi-year lows is negatively impacting Visa's currency-related revenues**.  **[V_3380280_19]** **[V_3380280_6]**  Visa experienced lower-than-anticipated currency volatility treasury revenues in international markets due to currency volatility reaching lows not seen in about four years, and this low volatility is expected to continue into the next quarter.  **[V_3380280_6]** **[V_3380280_19]**
- **Potential weakening in U.S. debit trends with lower-income consumers reducing spending**.  **[V_3380280_10]**  An analyst observed that April continued the trend of weakening U.S. debit, possibly due to lower-income consumers significantly reducing spend in certain areas, which could impact Visa's U.S. payments volume growth.  **[V_3380280_10]**

0d40dc30cf2dcb58db716418cbf5b55b58452b82c54c24b49225f55674ca759f

1. **FY'25 Growth Outlook**  
   **Q:** How will growth in '25 differ across key segments?  
   **A:** Visa expects total revenue growth in fiscal '25 to be in the **middle of their provided range**, with stable trends across consumer payments, new flows, and value-added services. Growth depends on incentives, cross-border volumes, volatility, and macroeconomic conditions.  **[V_3404417_13]** 

2. **Operating Leverage and Expenses**  
   **Q:** Will expenses grow similarly to revenue in fiscal '25?  
   **A:** Visa plans to invest in significant growth opportunities, resulting in expenses growing **in line with revenues**. They focus on maximizing long-term growth over short-term operating leverage by investing in product development and market expansion.  **[V_3404417_20]** 

3. **Value-Added Services Growth**  
   **Q:** How will Visa sustain value-added services growth?  
   **A:** Visa will continue consistent growth in value-added services by delivering products for **Visa transactions**, **non-Visa transactions**, and **beyond payments**. This includes issuer solutions, acquirer solutions, risk management tools, and open banking services, fueling growth across their portfolio.  **[V_3404417_15]** 

4. **Incentives and Market Share**  
   **Q:** What's driving higher incentives and rebates in '25?  
   **A:** Increased incentives reflect Visa's success in **winning new business** and renewing deals globally. Significant client wins and renewals lead to higher incentives as Visa invests to secure and expand partnerships, contributing to incentives and rebates growth.  **[V_3404417_21]** 

5. **October Volume Growth**  
   **Q:** What's behind the recent uptick in October volumes?  
   **A:** The strong start in October is due to **favorable days mix** and lapping prior year's **Regulation II impacts**. However, Visa cautions that **three weeks don't establish a trend**, and they will continue to monitor growth.  **[V_3404417_18]** 

6. **Cross-Border Revenue Dynamics**  
   **Q:** Why did cross-border revenue grow slower than volumes?  
   **A:** Cross-border revenue growth was slower due to **lower currency volatility** compared to last year and decreased associated volume growth, contributing to the difference between volume and revenue growth.  **[V_3404417_16]** 

7. **Competitive Environment: Pay by Bank**  
   **Q:** How does Visa view competition from pay by bank?  
   **A:** Visa acknowledges the growth of **account-to-account payments** and pay by bank options like Walmart's. They believe they can add significant value to these payments and feel **confident about their ability to compete** and grow.  **[V_3404417_10]** 

8. **Commercial Volume Outlook**  
   **Q:** What's the outlook for commercial volume growth?  
   **A:** Despite recent deceleration due to **days mix impacts**, Visa remains optimistic about commercial volumes, viewing them as a significant opportunity within **new flows** expected to grow **ahead of consumer volumes** over time.  **[V_3404417_11]** 

9. **Featurespace Acquisition and AI**  
   **Q:** How will AI and Featurespace impact Visa's business?  
   **A:** Visa is excited about acquiring **Featurespace**, enhancing their **AI-driven fraud prevention** solutions. They're aggressively adopting AI internally to **drive productivity** and incorporating **generative AI** into products to differentiate and add client value.  **[V_3404417_12]** 

10. **Value-Added Services for Non-Visa Transactions**  
    **Q:** How significant is VAS revenue from non-Visa transactions?  
    **A:** While the largest component of VAS revenue is services for Visa transactions, Visa is expanding services for **non-Visa transactions** with platforms like **CyberSource** and **Pismo**, opening significant opportunities by addressing a broader array of payment transactions.  **[V_3404417_15]** **[V_3404417_21]** 

11. **CFPB Open Banking Rule Impact**  
    **Q:** What opportunities arise from the CFPB's open banking rule?  
    **A:** Visa sees the new rules aligning with their support for **consumer control over financial data** in a secure way. Increased open banking presents opportunities to leverage capabilities like **Tink** to offer confident solutions to the ecosystem.  **[V_3404417_14]** 

12. **US Card-Present Volume Growth**  
    **Q:** Do you expect US card-present volume to accelerate?  
    **A:** Visa anticipates overall trends will remain **stable** into fiscal '25, with payment volumes and transactions expected to be **similar to fiscal '24**. They will monitor performance as the year progresses.  **[V_3404417_19]** 

13. **APAC Outlook and China**  
    **Q:** What are your assumptions for APAC, especially China?  
    **A:** Visa expects trends to remain stable, with APAC performance dependent on macroeconomic conditions, particularly in **China**. They don't forecast the economy but note that improvements in China could **positively impact results**.  **[V_3404417_20]** 

14. **DPS and CyberSource Performance**  
    **Q:** Can you share growth rates for DPS and CyberSource?  
    **A:** Visa is proud of progress in **DPS** and **CyberSource** but doesn't disclose specific growth rates or metrics for these businesses. They focus on continuing success in these areas.  **[V_3404417_17]** 

15. **Value-Added Services Tie to Transactions**  
    **Q:** How much VAS is tied to VisaNet transactions?  
    **A:** The largest component of VAS revenue comes from services for **Visa transactions**, adding value and driving additional yield. Visa is also making meaningful progress in services for **non-Visa transactions**, expanding their market opportunity.  **[V_3404417_21]** 

1dbc412bf1a717a1c1fe6efef7bda2328456abb610c0a5233eb5e9c91679a748

- **Visa is well-positioned to capitalize on open banking opportunities in the U.S., leveraging their experience in Europe with Tink. In an environment where open banking is more available, the Visa brand can be a meaningful differentiator, giving confidence to end users and data providers, and helping resolve complexities in open banking.**  **[V_3404417_13]**
- **Strong growth in value-added services, with revenue up 22% in the fourth quarter. Visa continues to innovate and expand offerings, including services for both Visa and non-Visa transactions, such as CyberSource, Authorize.net, Verifi, and risk tools like Decision Manager, capturing new opportunities in the payments ecosystem.**  **[V_3404417_14]**
- **Confidence in navigating the competitive and regulatory landscape. Despite the complex regulatory environment in the U.S., Visa feels very good about their ability to manage through complexity, continue to run and grow the business, and continue to innovate and serve clients.**  **[V_3404417_9]** **[V_3404417_10]**

21d960df93add381905f7d58def3a91c71b931d7dde47fa8d6d0a923325bd3a6

1. **Litigation Impact**  
   **Q:** What's the impact of the recent litigation decision?  
   **A:** We strongly disagree with the judge's decision on the MDL litigation.  **[V_3393963_14]**  We believe the settlement was fair and provided meaningful relief to all merchants.  **[V_3393963_14]**  We're pursuing a revised settlement, but it's too early to speculate on its details.  **[V_3393963_14]**  A settlement can occur at any point before, during, or after the trial.  **[V_3393963_14]** 

2. **Revenue Guidance**  
   **Q:** What's the outlook for revenue growth in Q4 and beyond?  
   **A:** For Q4, we expect adjusted net revenue growth to be in the **low double digits**, slightly above the **10%** growth in Q3.  **[V_3393963_19]**  Payment volume and transactions are anticipated to be consistent with Q3, with cross-border slightly below due to Asia travel recovery.  **[V_3393963_19]**  As for FY '25, we'll share our expectations at the end of Q4.  **[V_3393963_19]** 

3. **Value-Added Services Growth**  
   **Q:** How is value-added services contributing to growth?  
   **A:** Value-added services revenue grew **23%** this quarter to over **$2 billion**, now approaching **25%** of total revenue.  **[V_3393963_9]**  We've delivered consistent growth quarter after quarter and see strong momentum across issuing solutions, acceptance, and advisory.  **[V_3393963_9]**  We feel great about the opportunities ahead and believe we'll continue to deliver consistent growth.  **[V_3393963_9]** 

4. **Incentives and Margins**  
   **Q:** What's driving the lower incentives and impact on margins?  
   **A:** Incentives are expected to be lowest in Q4 due to fewer renewals and better client performance.  **[V_3393963_10]**  Year-to-date incentives have played out differently, and overall, they're lower than anticipated.  **[V_3393963_10]**  We had higher incentives last year due to a higher volume of renewals, which we're now lapping.  **[V_3393963_10]** 

5. **New Flows and Visa Direct**  
   **Q:** Can growth in new flows like Visa Direct be sustained?  
   **A:** We saw **18%** growth in new flows this quarter, with Visa Direct transactions growing **41%**.  **[V_3393963_17]**  We feel great about the execution and momentum.  **[V_3393963_17]**  While growth rates can vary quarter to quarter, we're in the early stages and see immense opportunity ahead.  **[V_3393963_17]**  We've built strong infrastructure, and we're optimistic about continued growth.  **[V_3393963_17]** 

6. **Credit vs. Debit Trends**  
   **Q:** Are slowing credit volumes a sign of consumer stress?  
   **A:** In the first 21 days of July, U.S. payment volume growth ticked down to **4%** from **5%** in Q3.  **[V_3393963_8]**  Factors like a major hurricane, timing of e-commerce events, and a tech outage impacted results.  **[V_3393963_8]**  We saw some moderation in lower spend cohorts, which may correlate to the credit versus debit trends.  **[V_3393963_16]**  Overall, we consider the results relatively stable.  **[V_3393963_16]** 

7. **Contactless Payment Adoption**  
   **Q:** How is contactless payment adoption progressing?  
   **A:** Globally, outside the U.S., **80%** of face-to-face Visa transactions are tap-to-pay.  **[V_3393963_13]**  In the U.S., **1 out of every 2** transactions are taps, and in New York City, it's over **75%**.  **[V_3393963_13]**  Adoption is strong across all segments, products, and demographics.  **[V_3393963_13]** 

8. **AI and Generative AI Investments**  
   **Q:** How is Visa leveraging AI and generative AI?  
   **A:** We're all-in on generative AI, applying it to drive productivity and enhance the entire payment ecosystem.  **[V_3393963_20]**  We're using AI to develop risk tools and capabilities, like fraud prediction services.  **[V_3393963_20]**  We see positive impacts on productivity and our ability to help clients reduce fraud and grow sales.  **[V_3393963_20]** 

dc1a05fe767c43d6608b950716f323409ce7246bcf5eb11d900db553ae129d02

Visa Inc (V)

Financials