Core Insights - Visa Inc. has entered into a referral agreement with Extend to enhance its virtual card offerings, targeting the growing middle-market segment [1] - The partnership aims to capitalize on the increasing demand for secure and efficient B2B payment solutions, with virtual card spending expected to rise from $3.1 trillion in 2023 to nearly $14 trillion by 2028 [2] - This collaboration aligns with Visa's mission to modernize B2B payments, providing businesses with enhanced control and security through Extend's platform [3] Group 1 - The partnership is anticipated to drive greater adoption of Visa's virtual card solutions, improve customer retention for issuing banks, and generate additional transaction volume [4] - By simplifying B2B payments while enhancing security, Visa is reinforcing its leadership in the digital payments ecosystem [4] - Visa aims to achieve low double-digit revenue growth on an adjusted constant-dollar basis for fiscal 2025, with expected earnings per share growth in the low teens [5] Group 2 - Visa's shares have increased by 23.4% over the past year, outperforming the industry's growth of 18% [5]

Core Viewpoint - dLocal's Chief Financial Officer Mark Ortiz will resign due to health issues, with Jeffrey Brown appointed as interim CFO during the search for a permanent successor [1][2][3] Group 1: Management Transition - Mark Ortiz will step down as CFO effective after the filing of the annual report on Form 20-F, no later than May 1, 2025 [1] - Jeffrey Brown, currently VP Finance, has been appointed as interim CFO while the company searches for a permanent replacement [2] - Ortiz will assist as an advisor during the transition period, emphasizing his confidence in the company's leadership and financial foundation [4] Group 2: Company Background - dLocal is a cross-border payments platform that connects global enterprise merchants with consumers in emerging markets across APAC, the Middle East, Latin America, and Africa [5] - The company operates under the "One dLocal" concept, allowing global companies to manage payments and settlements through a single API and platform [5]

Group 1 - World Network's WLD/USD experienced a significant price increase of over 11%, making it the fifth-most successful cryptocurrency in the last 24 hours, with a trading volume that nearly tripled to $234 million [1][4] - The price surge was attributed to speculation regarding a potential partnership with Visa Inc. to develop a stablecoin wallet, which would leverage Visa's extensive customer base [3] - In contrast, major cryptocurrencies like Bitcoin and Ethereum saw modest gains of 0.74% and 2.79%, respectively, during the same period [2] Group 2 - World Network's project involves collecting people's irises for digital identity verification, allowing users to receive free WLD tokens, although it has faced privacy concerns and has been banned in several regions including Hong Kong, Kenya, and Spain [4] - As of the latest data, WLD was trading at $0.9146, reflecting an 11.58% increase in the last 24 hours, but it has seen a year-to-date decline of 56% [4] - Visa's shares closed at $343.87, down 2.45% during the regular session, indicating a lack of growth momentum despite high trading activity [5]

Core Insights - Visa Inc remains the scale leader in the payments industry, holding significant advantages in total volume, revenue, and operating margins, while Mastercard Inc is outpacing Visa in growth metrics [2][3][4] Financial Performance - Visa boasts 63% more total volume, 31% more revenue, and a ten-point operating margin advantage over Mastercard [2] - Mastercard has outpaced Visa in revenue growth by approximately two percentage points, maintaining a five-year average edge, and its adjusted EPS grew four percentage points faster than Visa's [3] Shareholder Returns - Both Visa and Mastercard are strong cash flow generators, returning nearly all adjusted net income to shareholders through aggressive share buybacks, with Mastercard and Visa shares gaining 23% and 21% respectively in 2024 [4] Valuation Dynamics - Mastercard trades at 33x forward earnings compared to Visa's 28x, reflecting Mastercard's stronger growth profile, while Visa's relative value case is gaining traction [6] Investment Outlook - The analysis maintains an Overweight rating on both stocks, suggesting that Mastercard's growth premium is sustainable, while Visa's relative value and easing regulatory risks could make it a safer investment choice [7]

Financial Data and Key Metrics Changes - In 2024, the company grew revenue by 9% to $71.2 million, driven by a 16% increase in wealth revenue and a 21% increase in payments revenue [6][10] - Adjusted EBITDA for the full year was $6.7 million, above the midpoint of the increased guidance [7][46] - The company ended the year with $49.1 million in cash, marketable securities, and investments, up from $36.2 million in Q3 [7][48] - Positive net income was reported at $10.4 million compared to $8.5 million in the prior period [46] Business Line Data and Key Metrics Changes - Wealth assets under management grew 22% year-over-year, reaching $428 million [7] - Wealth revenue reached a $12 million annual run rate, with a 19% increase in Q4 [8][45] - Payments revenue grew 21% in 2024, reaching $8.6 million, with total payments volume processing increasing 16% year-over-year to $11.5 billion [9][41] Market Data and Key Metrics Changes - The payments business, Carta Worldwide, saw a 14% year-over-year increase in payments volume to $3.2 billion in Q4, with revenue growing at a higher rate of 27% to $2.4 million [41] - The company anticipates 20% to 25% growth in wealth for 2025 and mid to high teens growth for payments [46][51] Company Strategy and Development Direction - The company is focusing on high-margin areas by exiting its institutional brokerage operations to streamline its business [10][49] - There is a significant opportunity in wealth management driven by AI, with a focus on scaling wealth and payments in a disciplined manner [10][34] - The company aims to transform the wealth management industry by applying first principles thinking and leveraging AI to align its business model with investor success [15][35] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious approach to lending due to economic uncertainties, particularly regarding U.S.-Canadian tariff disputes [52][66] - The company is prioritizing growth and investment in its key areas, with a focus on delivering better performance and lower costs through AI-driven platforms [35][54] - Management believes that the future of investing will be won by platforms that deliver the best results rather than those with the most features [29][36] Other Important Information - The company has monetized portions of its investment portfolio, including a stake in Canadian Crypto Exchange WonderFi, providing flexibility for future capital requirements [42][48] - The decision to exit the institutional brokerage business was made to eliminate distractions and focus on core objectives [60] Q&A Session Summary Question: Timing on the decision to leave the institutional brokerage business - Management indicated that the institutional brokerage business was a legacy operation that was never core to their strategy and was volatile, making it a distraction [58][60] Question: Potential acquisitions to scale wealth and payments - Management stated that while acquisitions are not a priority at the moment, they remain open to opportunities that align with their growth strategy [62] Question: Pulling back in the lending business - Management confirmed that the decision to be cautious in lending is proactive, influenced by macroeconomic uncertainties, particularly regarding tariffs [66]

I only buy strong businesses. I only buy them when they're cheap. Backgrounds in economics, philosophy, government, data. I started my investing journey with a fairly concentrated portfolio of Canadian dividend payers in the telecom, pipeline and banking industries. I have moved forward through different industries including payments, US regional banking, Chinese and Brazilian equities, REITs, technology companies and a few other emerging market opportunities, as well as microcap through to megacap range. I ...

Core Insights - Dividend investing aims to own shares of high-quality companies that provide both share price appreciation and growing dividend income [1] - Visa and Bank of America are significant players in the financial sector, both having raised dividends for at least 10 consecutive years [2] Company Overview - Visa operates the world's largest payment processing network (excluding China), generating over $36 billion in revenue and $20 billion in free cash flow over the past four quarters [3] - Bank of America is the second-largest bank in the U.S. with over $3.2 trillion in assets, generating over $101 billion in revenue and $27 billion in net income over the past year [4] Dividend Metrics Comparison - Current dividend yield: Visa at 0.7% and Bank of America at 2.5% [7] - Five-year compound annual dividend growth rate: Visa at 15.4% and Bank of America at 8.7% [7] - Dividend payout ratio: Visa at 20.8% and Bank of America at 28.2% [7] Growth Prospects - Analysts estimate both companies will grow their earnings at annualized rates of around 12% over the long term [8] Investment Considerations - Visa's business model minimizes credit risk, acting as a fee collector in the global economy, while Bank of America is more exposed to economic downturns due to its lending operations [10] - Historical total returns for Bank of America have been about 2,730% since the early 1970s, but recovery from recessions has taken years [11] - Visa has generated comparable total returns in a shorter time frame with less volatility [12] - The transition from cash to digital payments presents a more attractive growth trend compared to traditional lending [13]

Group 1 - Mastercard's Chief Services Officer, Craig Vosburg, has seen his role expand significantly as the services business continues to grow [1][2] - Vosburg has been with Mastercard for 18 years, starting in the consulting division, Mastercard Advisors, in Singapore [4] - Over the years, Vosburg has held various roles, including leading the North American business and managing the product and engineering team [4][5] Group 2 - The company restructured last year to create a new services organization, aligning key business units with growth drivers [5]

Group 1: Visa's Collaboration and Solution - Visa has partnered with four major Australian banks (ANZ, HAB, HSBC, Westpac) to launch Visa B2B Integrated Payments (VBIP) in Australia [1] - The VBIP solution, integrated into the SAP Business Technology Platform, automates B2B payments, reducing the need for reconciliation and enhancing productivity for administration and finance teams [2] - Visa plans to expand its partnerships with additional local banks in the future [2] Group 2: Benefits and Market Trends - The VBIP aims to alleviate pain points for business owners, making B2B payments as seamless as consumer transactions [3] - Automating payment processes can help growing companies manage supplier payments and cash flow more effectively, reducing the risk of late fees [4] - The rise of embedded finance solutions is transforming the B2B payment landscape, with digital marketplaces facilitating easier transactions between suppliers and buyers [5][6] Group 3: Challenges in B2B Payments - Historically, B2B payments have lagged behind consumer payments due to outdated systems, while consumer transactions benefit from digital wallets and real-time payments [7] - Legacy banking infrastructures, regulatory complexities, and entrenched business processes contribute to the inertia in B2B payment innovations [8]

Core Viewpoint - Wall Street analysts are becoming cautious on Mastercard Incorporated (MA) stock, indicated by downward estimate revisions for EPS in 2025 and 2026 [1][2] Group 1: Stock Performance - Over the past month, Mastercard shares have declined by 7.2%, while the industry and S&P 500 Index fell by 7.9% and 8.3%, respectively [2] Group 2: Operations and Growth - Mastercard's gross dollar volume (GDV) increased by 8.1% in 2024, following a 10.3% growth in 2023, with a consensus estimate indicating around 7% growth for 2025 [6] - Switched transactions rose by 13.9% in 2023 and 11.3% in 2024, with a projected 10% year-over-year increase for 2025 [6] - Value-added services generated $10.8 billion in 2024, up 16.8% year-over-year, with an estimated growth of nearly 14% in 2025 [7] - Expansion in emerging markets, particularly Southeast Asia and Latin America, supports long-term growth strategies [8] - The shift towards digital payments is a significant growth driver, with Mastercard leveraging its global network and investing in AI and fraud prevention [9] Group 3: Valuation - Mastercard is trading at a forward P/E ratio of 32.08X, higher than its five-year median of 31.75X and above the industry average of 22.78X [10] Group 4: Risks - Adjusted operating expenses have consistently increased, with a projected growth of 13% in 2025 [11] - Legal and regulatory challenges include a major lawsuit settlement and potential impacts from the Credit Card Competition Act of 2023, which could threaten the duopoly of Mastercard and Visa in the U.S. [13][14] Group 5: Investment Outlook - Mastercard is viewed as a long-term winner due to its strong global network and digital payment growth, but rising costs and regulatory challenges suggest limited near-term upside [15] - Current shareholders may consider holding, while new investors might wait for a better entry point [16]