Visa Inc. (V) Baird 2024 Global Consumer, Technology & Services Conference (Transcript)

Financial Data and Key Metrics Changes - Visa's consumer payments business remains the core, with an estimated $20 trillion addressable market opportunity globally, highlighting significant growth potential as half of global transactions are still cash and check [12][31] - Value-added services account for approximately 23% to 24% of Visa's revenues, indicating a strong growth driver alongside core payment processing [35][36] Business Line Data and Key Metrics Changes - The consumer payments segment is expected to grow significantly, driven by trends such as contactless payments and e-commerce, which are outpacing underlying consumer expenditure growth [26][27] - New flows, particularly B2B payments, represent a substantial opportunity with an estimated $145 trillion market, indicating a focus on expanding into underserved segments [31][32] Market Data and Key Metrics Changes - Visa operates in 200 countries with relationships with 16,000 banks and over 130 million merchant locations, showcasing the scale and diversity of its operations [4][12] - Emerging markets, such as Mexico, still rely heavily on cash, presenting opportunities for Visa to modernize payment systems and increase digital adoption [29] Company Strategy and Development Direction - Visa's strategy includes a shift to a "network of networks," allowing for more flexible service offerings through APIs and partnerships with fintechs, enhancing its competitive edge [17][18] - The company aims to leverage its scale and technology to address local market needs while maintaining a global operational framework [7][8] Management's Comments on Operating Environment and Future Outlook - Management emphasizes the importance of adapting strategies to different market maturities, with a focus on driving digital payment adoption in cash-heavy regions [25][28] - The long-term growth outlook remains positive, with significant opportunities in both consumer payments and new flows, particularly in underserved markets [30][32] Other Important Information - Recent product innovations include "tap-to-everything" capabilities, enhancing payment acceptance for micro businesses [15] - Visa's acquisition of local processors, such as Prosa in Mexico, aims to accelerate the development of local payment ecosystems [29] Q&A Session Summary Question: What do you think people underestimate about Visa? - Management highlighted the immense scale of Visa's operations and the collaborative culture within the company as key strengths that are often overlooked [4][6] Question: How does Visa drive adoption in different countries? - Visa's approach varies by market maturity, focusing on contactless payments and e-commerce in developed markets while building acceptance networks in developing regions [26][28] Question: What is the significance of the network of networks strategy? - This strategy allows Visa to offer modular services through APIs, enhancing flexibility and partnerships with various fintech players [17][18] Question: How does Visa incorporate new wallets into its strategy? - Visa views fintechs and digital wallets as partners, providing Visa credentials for wallet balances and facilitating acceptance at a large scale [21][23]