Visa sounds positive note during earnings call

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Daniel Webber
Daniel Webber
Founder & CEO
Daniel is Founder and CEO and has 20 years of experience in the international finance world focusing on cross-border payments, technology and the property sectors. Daniel is widely quoted as an expert… Read more
  • Cross border payments at the firm are up by 9% in volume growth terms
  • CEO shared insights into many aspects of the firm’s international money transfer strategies, including its acquisition of Plaid
  • “In the card-present environment, we continue to see meaningful momentum in tap to pay… we consider this to be the most friction-free way to pay in person”, said CEO Alfred Kelly

Major financial services organisation Visa expressed positivity during an earnings call this week – especially in terms of its cross border payments offer.

The fiscal results for Q1 announced by Visa revealed that volumes of international money transfer had risen.

It said that the growth figures for cross border payments were up by 9%.

Compared to previous quarters, this was a real boost.

The equivalent figure for both Q2 and Q3 of 2019 was 7%. Overall, the firm saw a rise in total payments volume of 8% year over year.

The total figure in this regard is close to $2.3tn.

As part of an earnings call, the firm’s CEO – Alfred Kelly – flagged some specific geographical areas which saw growth.

“Brazil and Canada saw slightly stronger growth” over the course of the holiday season compared to the year before, he claimed.

He pointed out that the UK, which is a key market, did not see any significant growth in the same period and instead held relatively firm compared to the previous year.

He also went into more detail about the firm’s strategies for growth.

In a sign that contactless payments are taking off in the eyes of corporates, he described the positive impact of a “card-present environment”.

“In the card-present environment, we continue to see meaningful momentum in tap to pay”, he said.

“We consider this to be the most friction-free way to pay in person”, he added.

Moving away from consumer cross border payments, Kelly also spoke at length about the corporate – or business to business – side of the equation.

“We wanted to highlight significant progress in the B2B cross border space”, Kelly said before going on to explain some of the firm’s recent partnerships and acquisitions.

These have included big names such as MoneyGram, TransferWise and Plaid.

Kelly divulged more information behind the move to acquire the latter.

He explained that Plaid has “a usage-based revenue model. Pricing is structured on a pay per API call basis”, a model which is similar to that of Visa’s.

The figures come in the same week as MasterCard posted positive results too.

Mastercard saw a rise in cross border payments of 16% in volume terms – and also said that its cross border payments offer has been responsible for revenue contribution of $1.4bn.

Keep ahead of the curve when it comes to payments news by heading over to our magazine pages and reading up on the latest developments in the sector.


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