- Visa is one of the world’s leaders in digital payments
- Visa operates in more than 200 countries and territories.
- Visa to Invest $1 billion in Africa to accelerate digital transformation
Visa (NYSE: V, LSE:0QZ0) is one of the world’s leaders in digital payments. Visa operates in more than 200 countries and territories with products and services available on cards, laptops, tablets, mobile devices and more.
Visa to Invest $1 billion in Africa to Accelerate Digital Transformation
12/14/2022; Visa announced a pledge to invest $1 billion in Africa over the next five years to advance resilient, innovative, and inclusive economies across the continent. Visa’s expanded investments demonstrate the company’s long-term commitment to Africa’s growth potential and will help enable greater access to digital payments as an entry point for expanding formal financial services for individuals and merchants.
The investments will also focus on strengthening the payment ecosystem through new innovations and technologies, supporting digitization of economies, and investing in upskilling, talent development and capacity building.
In line with Visa’s corporate purpose to be the best way to pay and be paid, these investments will facilitate additional opportunities to expand financial inclusion. Visa is dedicated to empowering small- and women-led entrepreneurship in Africa through its operations and community programs. Today, an estimated 500 million people in Africa are without access to formal financial services, less than 50% of the adult population made or received digital payments in Africa, and more than 40 million merchants do not accept digital payments.
Fiscal First Quarter 2023 Results
GAAP net income in the fiscal first quarter was $4.2 billion or $1.99 per share, an increase of 6% and 8%, respectively, over prior year’s results. Current year’s results included a special item of $341 million for a litigation provision associated with the interchange multidistrict litigation ("MDL") case, $106 million of net losses from equity investments and $66 million from the amortization of acquired intangible assets and non-recurring acquisition-related costs. Prior year’s results included a special item of $145 million for a litigation provision associated with the MDL case, $231 million of net gains from equity investments, and $23 million from the amortization of acquired intangible assets and non-recurring acquisition-related costs. Excluding these items and related tax impacts, non-GAAP net income for the quarter was $4.6 billion or $2.18 per share, increases of 17% and 21%, respectively, over prior year’s results (refer to the accompanying financial tables for further details and a reconciliation of the GAAP to non-GAAP measures presented). GAAP earnings per share growth was approximately 12% on a constant-dollar basis, which excludes the impact of foreign currency fluctuations against the U.S. dollar. Non-GAAP earnings per share growth was approximately 24% on a constant-dollar basis. All references to earnings per share assume fully-diluted class A share count.
Net revenues in the fiscal first quarter were $7.9 billion, an increase of 12%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenues increased 15% on a constant-dollar basis.
Total processed transactions, which represent transactions processed by Visa, for the three months ended December 31, 2022, were 52.5 billion, a 10% increase over the prior year.
Fiscal first quarter service revenues were $3.5 billion, an increase of 10% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 6% over the prior year to $3.8 billion. International transaction revenues grew 29% over the prior year to $2.8 billion. Other revenues of $587 million rose 31% over the prior year. Client incentives, a contrarevenue item, were $2.8 billion and represented 26.0% of gross revenues.
GAAP operating expenses were $2.8 billion for the fiscal first quarter, a 25% increase over the prior year's results, primarily driven by increases in personnel expenses and the litigation provision. GAAP operating expenses included the special item related to the litigation provision associated with the MDL case, the amortization of acquired intangible assets and non-recurring acquisition-related costs in the current and prior year. Excluding these operating expense items, nonGAAP operating expenses increased 15% over the prior year, primarily driven by increases in personnel and general and administrative expenses.
GAAP non-operating expense was $113 million for the fiscal first quarter, including $106 million of net equity investment losses. Excluding this item, non-GAAP non-operating expense was $7 million.
During the three months ended December 31, 2022, Visa repurchased 15.6 million shares of class A common stock at an average price of $198.74 per share for $3.1 billion. The Company had $14.0 billion of remaining authorized funds for share repurchase as of December 31, 2022.
On January 24, 2023, the board of directors declared a quarterly cash dividend of $0.45 per share of class A common stock (determined in the case of class B and C common stock and series A, B and C convertible participating preferred stock on an as-converted basis) payable on March 1, 2023, to all holders of record as of February 10, 2023.
Visa is one of the world’s leaders in digital payments. Visa operate in more than 200 countries and territories with products and services available on cards, laptops, tablets, mobile devices and more.
Products and services
Credit: Credit cards and digital credentials allow consumers and businesses to access credit to pay for goods and services. Credit cards are affiliated with programs operated by financial institution clients, co-brand partners, fintechs and affinity partners.
Debit: Debit cards and digital credentials allow consumers and small businesses to purchase goods and services using funds held in their bank accounts. Debit cards enable account holders to transact in person, online or via mobile without needing cash or checks and without accessing a line of credit. The Visa/PLUS Global ATM network also provides debit, credit and prepaid account holders with cash access, and other banking capabilities, in more than 200 countries and territories worldwide through issuing and acquiring partnerships with both financial institutions and independent ATM operators.
Prepaid: Prepaid cards and digital credentials draw from a designated balance funded by individuals, businesses or governments. Prepaid cards address many use cases and needs, including general purpose reloadable, payroll, government and corporate disbursements, healthcare, gift and travel. Visa-branded prepaid cards also play an important part in financial inclusion, bringing payment solutions to those with limited or no access to traditional banking products.
Tap to Pay
Tap to pay adoption is growing and many consumers have come to expect touchless payment experiences. Globally, Visa has more than 30 countries and territories with more than 90 percent contactless penetration and more than 90 countries where tap to pay is more than 50 percent of face-to-face transactions. Excluding the United States, more than 70 percent of face-to-face transactions globally were contactless. In the U.S., Visa has 28 percent contactless penetration and 495 million tap-to-pay-enabled Visa cards. Visa has activated more than 600 contactless public transport projects worldwide. In addition, the company surpassed one billion contactless transactions on global transit systems in fiscal year 2022, an increase of 70% year over year.
Visa Token Service (VTS) brings trust to digital commerce innovation. As consumers increasingly rely on digital transactions, VTS is designed to enhance the digital ecosystem through improved authorization, reduced fraud and improved consumer experience. The provisioning of network tokens continues to accelerate. As of the end of fiscal year 2022, Visa provisioned more than 4 billion network tokens, surpassing the number of physical cards in circulation. The milestone reinforces Visa’s commitment to secure, seamless, digital payments, in-store and online.
Click to Pay
Click to Pay provides a simplified and more consistent cardholder checkout experience online by removing time-consuming key entry of personal information and enabling consumer and transaction data to be passed securely between payments network participants. Based on the EMV® Secure Remote Commerce industry standard, Click to Pay brings a standardized and streamlined approach to online checkout and meets the needs of consumers shopping across a growing number of connected devices. The goal of Click to Pay is to make digital payments safe, consistent and interoperable like the checkout experience in physical stores.
isa’s network of networks approach creates opportunities to capture new sources of money movement through card and non-card flows for consumers, businesses and governments around the world by facilitating P2P, B2C, B2B, B2b and G2C payments.
Visa Direct is Visa’s global, real-time payments network that helps facilitate the fast delivery of funds directly to eligible cards and bank accounts around the world. Visa Direct leverages Visa’s infrastructure to enable different transaction types and new money flows between parties for a wide range of use cases, such as P2P payments and account-to-account transfers, business and government payouts to individuals and small businesses, merchant settlements and refunds.
Visa Business Solutions
Visa B2B Connect is a multilateral B2B cross-border payments network designed to facilitate transactions from the bank of origin directly to the beneficiary bank, helping streamline settlement and optimize payments for financial institutions’ corporate clients. The network delivers B2B cross-border payments that are predictable, flexible, data-rich, secure and cost-effective. Visa B2B Connect continues to scale and is available in more than 100 countries and territories.
Visa stated in 1958, the year that Bank of America launched the first consumer credit card.
|Bank of America launches BankAmericard, the first general-purpose consumer credit card in the form of a paper card with a US$300 limit.
|National BankAmericard launches the first electronic authorisation system, followed by an electronic clearing and settlement system.
|The International Bankcard Company (IBANCO) forms to administer the BankAmericard programme globally.
|The first debit card is launched.
|BankAmericard becomes Visa, a simple name that sounds the same in every language, identified by a blue and gold flag.
|The first Visa Travellers Cheques are issued in four currencies.
|Visa launches an automated teller machine (ATM) network, providing 24-hour “anytime, anywhere” cash around the world.
|Visa’s first financial literacy programme launches. It is now in 20+ countries and has helped millions of people manage their money.
|Visa restructures, creating a new global corporation, Visa Inc.
|Visa launches the Visa mobile platform to speed the adoption of mobile payments and value-added services.
|The “V” ticker symbol appears on the N.Y. Stock Exchange as Visa becomes the largest initial public offering in U.S. history.
|Visa Inc. Completes Acquisition of Visa Europe.
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