Can Visa's Cross-Border Engine Still Deliver Double-Digit Growth?

Core Insights - Visa Inc.'s cross-border business is a significant growth driver, fueled by increased international travel and a rise in global e-commerce, with cross-border volume excluding Europe up 11% year over year in Q4 fiscal 2025 [1][9] - The company is enhancing its cross-border portfolios and expanding into high-potential verticals, focusing on product capabilities like multi-currency payment credentials [2] - Visa is integrating stablecoin functionality into Visa Direct to improve cross-border money movement efficiency, with international transaction revenues increasing by 10% year over year in Q4 [3][4] Cross-Border Performance - Cross-border volume for Visa rose 11% year over year in Q4, with e-commerce transactions growing by 13% and travel-related volume increasing by 10% [9] - Competitors such as Mastercard and PayPal are also seeing growth in their cross-border businesses, with Mastercard's volumes up 15% and PayPal's total payment volume increasing by 8% year over year in Q3 2025 [5][6][7] Strategic Developments - Visa's strategy includes incorporating multi-currency features and stablecoin options to create new cross-border opportunities and strengthen its long-term growth strategy [4] - The company aims to adapt to evolving travel trends and enhance security measures to maintain competitiveness in the digital commerce landscape [4] Financial Performance - Visa's stock has increased by 4.5% over the past year, contrasting with a 13% decline in the industry [8] - The forward price-to-earnings ratio for Visa is 24.89, above the industry average of 19.97, indicating a higher valuation [10] - The Zacks Consensus Estimate for Visa's fiscal 2026 earnings suggests an 11.7% increase from the previous year [12]