Visa Inc at Bank of America Electronic Payments Symposium Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Kupferberg - BofA Global Research - Analyst : <_ALACRA_META_ABSTRACT>You've got some really interesting perspective. You've now looked at Visa through multiple lenses over a long period of time. How has your view of Visa evolved?

Question: Jason Kupferberg - BofA Global Research - Analyst : Excellent. So maybe just talk to us a little bit about your day-to-day, your purview, your responsibilities, because I know Visa has got a pretty robust strategy organization.

Question: Jason Kupferberg - BofA Global Research - Analyst : Yeah. Well, that's a good segue because I think the timing of this chat is appropriate considering that you did just have the Investor Day. And it was chockful of presentations. If some of you haven't had a chance to hear it or see it, I would recommend having a listen. What are -- I mean, there were a lot of strategic messages shared that day. But what would you say or maybe the two or three that were most critical that you really want to make sure the investment community internalizes?

Question: Jason Kupferberg - BofA Global Research - Analyst : So I actually wanted to go a little bit deeper into Visa as a service. That seems like an interesting concept. I mean, it does -- and it does make sense. Maybe just talk about how you're rolling that out, I guess, both to issuers and to merchants, and how do you ultimately see that augmenting Visa's top-line growth?

Question: Jason Kupferberg - BofA Global Research - Analyst : No, it's interesting. I mean, I think people always appreciate Visa's scale and brand, like you said. But then sometimes, people forget about the innovation piece, right? And clearly, you guys have been very busy at that, and it came across very clearly at the Investor Day. And so now I wanted to do is kind of think about the pieces of Visa's business. You've got consumer payments. You've got the new flows. You've got the value-added services. And I actually wanted to start with value-added services. I mean, the new disclosures you guys gave were extremely helpful, I think, for the Street. And so if we think about the VAS business today, it's almost a quarter of your total revenue. And we got some interesting breakdowns on that, right? 40% from issuing, 28% from the acceptance side, 17% risk and security, 15% from advisory and other, so you've got some nice diversification within the services business. So I guess where you think about it, just strategically, what is Visa's value proposition kind of in those different subsegments of VAS? And at the end of the day, why does Visa win when it comes to VAS?

Question: Jason Kupferberg - BofA Global Research - Analyst : How should we think about the margin profile of the different VAS subsegments?

Question: Jason Kupferberg - BofA Global Research - Analyst : Right, right. The advisory can be kind of tip of the spear, I would imagine, in many cases. So what about the one-third of VAS that's not linked to transactions? How do you price those services? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 12:10PM, V.N - Visa Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - BofA Global Research - Analyst : So it's kind of a mix. Okay, okay. We've been hearing maybe over the last year or so a little bit more about value-added services being offered as part of client incentives, which are an important tool for Visa, and I think you referred to that as value in kind. So has that become a materially bigger trend? And if so, what's driven that? Do you expect it to continue?

Question: Jason Kupferberg - BofA Global Research - Analyst : Okay, understood. Understood. Let's move over to commercial and money movement, as you guys now call it, CMS. And here, too, we had some new disclosure, and we appreciated that. So unit economics, commercial business with revenue yields of 17 to 19 basis points, right, per transaction. Are there opportunities to potentially increase that over time? And I think at the overall Visa level, you're more in the high 20s.

Question: Jason Kupferberg - BofA Global Research - Analyst : Okay, so I wanted to hit on Visa Direct. Obviously, that's an important part of CMS. I mean, the transactions there have been growing at north of 40% CAGR, I think, and that's not off an insignificant base either. You disclosed that you were $0.09 to $0.10 per transaction from the Investor Day. And if we think about just strategically within Visa Direct, we heard a bit about increasing penetration of cross-border transactions, which I would assume are -- have some nice rich yields. So can you talk about some of those initiatives that are driving increased cross-border usage of Visa Direct? And I don't know if you're able to give us a sense of what percent of Visa Direct's total transactions are currently cross border.

Question: Jason Kupferberg - BofA Global Research - Analyst : Great. It sounds like you're pretty busy in cross-border Visa Direct. So the last one I wanted to ask you on CMS is just thinking about kind of B2B, but specifically the accounts payable and accounts receivable flows. I feel like this has been a really tough nut to crack for the payments industry. A lot of payments companies, including Visa, have talked about it probably for the past decade because it's a massive TAM, right? It's trillions of dollars. So what are Visa's plans to try and drive more revenue in this area over the longer term? What are the strategies supporting that?

Question: Jason Kupferberg - BofA Global Research - Analyst : Okay. Well, we'll stay tuned there. So consumer payments, we didn't hit that yet. It's the biggest piece of your business. It's two-thirds of revenue. And one of the themes that, I think, came across loud and clear at Investor Day is that Visa has this ability to continue growing faster than, let's call it, PCE, right, the market. And so that's true both domestically and outside the US, based on the data that you guys presented. Take us through the strategies that you're employing to achieve that growth. And I believe one of the other things you talked about at the Investor Day is that that growth gap could potentially shrink a little bit in the coming years. So discuss the dynamics there, if you would.

Question: Jason Kupferberg - BofA Global Research - Analyst : Okay, so really a law of large numbers kind of dynamic. Okay, understood. All right, are you ready for the AI question? Everyone gets an AI question.

Question: Jason Kupferberg - BofA Global Research - Analyst : Okay. Because you guys did talk about it at the Investor Day; and agentic commerce, those were themes. Just maybe take us through some use cases. And at the end of the day, I mean, is AI and Gen AI -- is that more of a revenue opportunity for Visa? Is it a cost and efficiency opportunity? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 12:10PM, V.N - Visa Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - BofA Global Research - Analyst : Yeah, personalized shopping experiences, right? So yeah, it will be interesting in the future. I wanted to spend a minute on the Visa Flex Credential. I remember when you guys put that release out, and we've seen the Affirm card for example. You're partnering with them on that. It was showcased at the Investor Day. Maybe for those less familiar, talk about what the Flex Credential is, what the rollout progress has been like. Are we going to see it more broadly here? Does it become material at some point? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 12:10PM, V.N - Visa Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - BofA Global Research - Analyst : Lighten the weight in our wallets hopefully one day, yeah. So we're going to end on just a double-click into some of the consumer payment opportunity within certain countries where we actually have seen domestic rails get some traction with consumer point-of-sale payments. Pix in Brazil is one that people talk about a lot. You guys went out of your way at the Investor Day to say, hey, there's $2 trillion of opportunity there. How are you going after it?

Question: Jason Kupferberg - BofA Global Research - Analyst : Excellent. Well, unfortunately, we have to leave it there. This was great. Really appreciate the time. Thank you.