visa fiscal fourth quarter The results underlined the attractiveness of payment networks beyond card payments as new payment flows. especially gained momentum. comments from the call and From Earnings Supplement and Earnings Release Show that total payment volume increased by 8% year over year.
In the United States, payment volume increased by 5%, and international payment volume increased by 10%. across the border quantity, except intra Europeincreased by 13%. In consumer payments, CEO Ryan McInerney detailed that Visa's credential count has increased by 7% year-on-year to 4.6 billion, and has cumulatively issued 11.5 billion tokens.
“Our key business drivers were relatively stable compared to the third quarter,” McInerney told analysts on the call. “Over 30% of our total transactions are tokenized.”
he called account-to-account Payments as an area of particular promise, where the company is leveraging its “brand infrastructure and regulations as well as consumer protections” to enable simpler, safer and more secure payments. accounting book Payment.”
Visa A2A, he said, is “open to any eligible bank, And Open Banking Provider, and Verified Billers. Initially, it is targeted at bill payments, and we plan to launch in the UK in 2025.
Tap-to-Pay Growth
As has been the case in past quarters, McInerney exemplified the continued embrace tap-to-pay Exchange. “Tap to add card” is now enabled by issuers in more than 15 countries across five regions, he said.
tap-to-pay Penetration globally, excluding the US, is 82% of face-to-face transactions, up 6 points from 2023. and in He further said, U.S. it was on 54%, up 13 points from last year.
New flow revenue increased 22%, and Visa Direct transactions increased 38% to 2.8 billion in the latest quarter. Commercial volumes increased by 5%.
“We finished the year with nearly 10 billion Visa Direct transactions and $1.7 billion in commercial payments volume,” he said. Commercial credit grew by 18% year-on-year, which was quite fast Overall credit growth rate.
nodding towards value added Services, he said Visa's core banking and issuer processing platform, Pismo, “has a good pipeline and its solutions are resonating with customers with approximately 12 billion API calls per month.”
In his comments to analysts, McInerney also took cognizance The Justice Department filed a lawsuit against the company, Allegation of monopoly on debit cardby stating, “We believe the lawsuit is frivolous and reflects a clear lack of understanding of the payments ecosystem in the United States. We will defend ourselves strongly and we are confident of this. our ability to demonstrate Visa competes for every transaction in a thriving debit sector that is constantly growing and seeing new entrants.
stable consumer spending
CFO Chris Suh, assessing the payments themselves, said that during the quarter, credit and debit volumes each increased 5%card Present volumes increased by 2% and card-not-present volumes increased by 6%.
“Consumer spend has remained relatively stable across all sectors, from low to high expenditure, [compared] To Q3. Our data does not indicate any meaningful behavioral change across consumer segments from the last quarter,” he said. fiscal fourth quarter cross border ecommerce Card-not-present volume, measured as card-not-present volume excluding travel and crypto purchases, increased 15%.
The CFO expected that payment volume and processed transaction growth “will remain strong and generally in line with full-year 2024 levels.” In the current quarter, US payments volume growth is approximately 6%, with debit up 7% and credit up 6% compared to last year.
Investors sent Visa stock up nearly 1.5% In after hours Trading.
Asked about it on conference call account-to-account Payments and competitive environment -and with of an analyst Mention of Walmart's existence increased them Offering – McInerney said, “Tthere's a lot going on here with at account-to-account Payments in the US and around the world. …Bank payments are not a new capability. This is not a new capability in the United States. This isn't a new capability for Walmart. i think so Starting today, you can load up to three different bank accounts to your walmart.com Wallet to pay for things. …we expect payments to continue from account to account to beget Here and around the world. We believe there's a lot we can add in terms of value account-to-account Payment.”
The CFPB's final rule on Open Banking was also revealed on the call. McInerney said He The final rule “is largely consistent with the CFPB's initial proposal. And, you know, we're strong supporters of more control and more access for consumers over their financial data, but making sure that it safely and securelyWe are still evaluating everything details of potential impact From More detailed regulations across the industry. …What we found is that the Visa brand can be a meaningful differentiator, and the Visa brand can deliver trust to end users and data providers.