Visa, Inc. (V) Barclays 14th Annual Emerging Payments and FinTech Forum Transcript

Key Points Industry/Company * Company: Visa, Inc. (NYSE: V) * Event: Barclays 14th Annual Emerging Payments and FinTech Forum * Date: May 15, 2024 Core Views and Arguments * Revenue Growth: Visa reported a strong Q2 with 10% revenue growth and EPS exceeding expectations. * Payment Volumes: Global total payment volume grew 8% in Q2, with stable growth across regions except for Asia, primarily due to macroeconomic conditions in Mainland China. * Cross-Border Growth: Cross-border payment volumes grew 16% in Q2, driven by both travel and e-commerce. * Consumer Resilience: Visa attributes the stable performance to a resilient consumer base, with trends in high and low spend categories remaining relatively unchanged. * Addressable Opportunity: Visa sees over $20 trillion of addressable opportunities in the consumer payment space, categorized into cash and check, ACH and other digital payments, and volume on other domestic networks. * Value-Added Services: Value-added services revenue grew 23% in Q2, driven by various solutions including issuing solutions, acceptance solutions, risk and advisory services, advisory and consulting services, and open banking. * New Flows: Visa Direct transactions exceeded 31% growth in Q2, expanding beyond traditional consumer to business flows. * B2B Strategy: Visa's B2B strategy focuses on carded and virtual card space, cross-border B2B, and APAR space. * Pricing Strategy: Visa continues to price to value, with similar pricing levels expected for FY2024. * Reg II: The impact of Reg II has been modest, with Visa emphasizing the value proposition of its network and capabilities. * MDL Settlement: Visa reached a settlement on the landmark case, addressing concerns raised by small businesses while retaining flexibility for consumers. Other Important Points * Tap-to-Pay Penetration: Visa is approaching 50% tap-to-pay penetration in the U.S., with significant growth potential in other markets. * E-commerce Growth: E-commerce continues to grow faster than face-to-face transactions, providing opportunities for Visa to penetrate the long tail of cash in mature markets. * Acceptance Growth: Visa has a global strategy for growing acceptance, with a focus on underpenetrated markets and partnerships with local players. * Visa Direct Use Cases: Visa Direct is expanding into new use cases, including gig economy payouts, merchant settlements, content creator payouts, and marketplace settlements. * B2B Connect: Visa launched B2B Connect, a multi-lateral network focused on high-dollar, low-velocity cross-border B2B transactions. * APAR Space: Visa is exploring opportunities in the APAR space, including Visa Spend Clarity and partnerships with SAP.