Visa Tops 4.7 Billion Credentials, Logs 44% Growth in Tokens YOY

Core Insights - Visa's fiscal first-quarter results indicate significant growth in digital payments, with a payments volume of approximately $4 trillion, driven by a shift to digital payments that now account for over 60% of total volume [2][6] - The company reported a 9% increase in payments volume, with U.S. payments up 7% and cross-border volume up 11% [1][6] - Visa has issued 4.7 billion credentials (7% YOY growth) and 12.6 billion tokens (44% YOY growth), highlighting the importance of tokenization in enhancing transaction approval rates and reducing fraud [3][4] Payments Volume and Trends - Payments volume growth was driven by an 8% increase in debit volumes and a 7% increase in credit volumes within the U.S., while cross-border volumes increased by 15% in constant dollar terms [1][6] - The CEO noted that eCommerce transactions using tokenized methods have a 6 percentage point higher approval rate, leading to increased sales for merchants and a 30% reduction in fraud rates [4] Contactless Payments - 74% of face-to-face transactions are now contactless, with notable growth in markets like Japan and Argentina; in the U.S., tap-to-pay transactions increased by 13 percentage points to 57% [5] New Business Lines - Revenues from new business lines grew by 19% in constant dollars, with Visa Direct surpassing 10 billion transactions over the past 12 months and achieving 3 billion transactions in the latest quarter, reflecting a 34% increase [6][7] - The launch of the X Money account will enable 600 million active users to transfer funds instantly, enhancing the speed of payments for creators on the X platform [7] Consumer Spending and Revenue Growth - Consumer holiday spending growth in the U.S. was in the upper-mid-single digits year-over-year, with eCommerce card-not-present volume up 16% YOY and commercial payments volume rising 6% YOY [7] - Net revenue growth is anticipated to be in the high-single digits to low-double digits for the current quarter [8] Value-Added Services - The company is focused on expanding value-added services, with notable acquisitions like Pismo and FeatureSpace contributing to building sales pipelines [9] Future Developments - Visa is on track to launch its Visa A2A offering in early 2025, initially focusing on bill payments, which is expected to benefit clients and partners in the ecosystem [10]