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pww.comVisa Inc. Presents at BofA Securities 2024 Global Technology Conference, Jun-04-2024 03:20 PM - NYSE:V

NYSE:V

Christopher Suh [Chief Financial Officer] 💬

** Key Points from Christopher Suh, CFO of Visa Inc.**

Business Trends

  • Global payment volume growth is stable, indicating consumer resilience.
  • Global payment volumes grew 8% in Q2, with the U.S. growing 6% and international growth at 11%.
  • Travel and e-commerce sectors showed strong growth, with cross-border travel increasing by 16%.

Consumer Spending Insights

  • Visa has diverse exposure across income segments, with spending patterns remaining relatively unchanged.
  • No significant signs of consumer pullback observed in the data.

Fiscal Year Guidance

  • Reiterated low double-digit revenue growth outlook for the fiscal year ending September.
  • Anticipated acceleration in the second half of the year due to normalization of cross-border growth and reduced currency volatility.

Ticket Size and Spending Trends

  • U.S. ticket size trends are positive, with easier comps expected in the second half.

New Flows and Visa Direct

  • New flows business, including Visa Direct, grew 14% in the last quarter.
  • Visa Direct is a significant growth area, with unit economics comparable to traditional debit transactions.

Value-Added Services

  • Revenues from value-added services grew 23% year-over-year, with consistent 20%-plus growth expected.
  • Focus on innovation and localized offerings to drive growth.

Debit Processing Service (DPS)

  • DPS is a leading U.S. debit issuer processor, handling nearly $2.5 trillion in authorization volume in 2023.
  • Recent acquisition of Pismo enhances Visa's capabilities in issuer processing.

Cash-to-Card Conversion

  • $10 trillion in global consumer cash and check spend presents a significant opportunity.
  • Visa is actively working to increase electronic payment penetration in markets like Germany and Japan.

Regulatory Environment

  • Visa disagrees with the U.K. payment system regulator's interim report on network fees, emphasizing the value provided by Visa's services.

Client Incentives

  • Client incentives are performing better than anticipated, but overall growth rates for the second half are expected to be lower than the first half.

AI Integration

  • Visa is heavily invested in AI, utilizing over 140 models across 40 products to enhance services and internal operations.

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