The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: David Koning - Robert W Baird - Analyst
: Yeah, thank you. And what do you think -- stepping into the new role, what do you think -- now that you get to see everything kind of internal,
what do you think people underestimate about Visa?
Question: David Koning - Robert W Baird - Analyst
: Yeah. And you haven't been to all 200 countries yet to see operations, right?
Question: David Koning - Robert W Baird - Analyst
: And I've always wondered too, do the cards look substantially the same in every country? Like if I all of a sudden had a card from Istanbul, would
it look pretty much the same as my Chase card?
Question: David Koning - Robert W Baird - Analyst
: Great. And maybe you could talk a little bit about the long-term growth algorithm. I think what's so interesting about it is for all the complexity
and the different types of transactions and basis points, all the stuff, it's a relatively simple model just if we just look at the numbers, which I think
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JUNE 05, 2024 / 1:40PM, V.N - Visa Inc at Robert W Baird Global Consumer, Technology & Services Conference
is part of why the stock works well because it's simple. But maybe give a little bit about what the growth algorithm and then the opportunities for
growth over time.
Question: David Koning - Robert W Baird - Analyst
: Yeah. No, thanks for that. And then one thing you started talking about maybe four, five years ago, the network of networks strategies. And what
-- maybe define that a little bit. What does network of networks mean? And how does that drive growth?
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JUNE 05, 2024 / 1:40PM, V.N - Visa Inc at Robert W Baird Global Consumer, Technology & Services Conference
Question: David Koning - Robert W Baird - Analyst
: Yeah. Thank you. And what about the new wallets? Like we think of I guess, Cash App or Robinhood or Google Wallet. How do you play with those?
And those often like Cash App has $60 per account in it, right? It's very small compared to Chase. I don't know what the number is, maybe $10,000,
right? So it's so different like in terms of these types of banks. How do you incorporate your strategy with those types of businesses?
Question: David Koning - Robert W Baird - Analyst
: Yeah, thank you. And maybe if we talk a little more about the consumer business, again, driving adoption in different regions like, I mean, it's easy
in the US when like we get 1% to 2% cashback. We love to swipe whenever we can. One time even, I met with a Scottish client, and she tried to get
a Chase card here in the US because she wanted all the rewards points, and she couldn't because she lived in a different country, right? So each
country has its own reward systems. And how do you drive adoption in different countries? And what are the strategies there?
Question: David Koning - Robert W Baird - Analyst
: Yeah. Thank you. And it's interesting because the consumer business, you talked about VisaNet now being around 50 years, that continues to have
a lot of room to penetrate. It continues to grow really well but then the whole other pocket of the newer flows, right? And there's $200 trillion of
kind of opportunity there. I think of that as being largely B2B in -- part of the reason B2B is a little slower is like we think in this room, a lot of our
clients pay us by check, and we all trust each other, so we don't need the card systems much. But incrementally, there are services around all these
types of new flows where Visa can get involved. Maybe talk a little bit about some of those.
Question: David Koning - Robert W Baird - Analyst
: Yeah. Thank you. And yeah, those push payments are awesome. I just got my first one back from a scholarship of my daughter from her college.
So I got a nice electronic payment instead of a check sitting in my wallet for a month. So yeah, and then value-added services. So we talk a lot about
the consumer payments, the new business flows and stuff, and that's a big majority, but value-added has been a really nice growth driver. How
big is that? And what are some of the bigger parts of that? And what's the strategy around it?
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JUNE 05, 2024 / 1:40PM, V.N - Visa Inc at Robert W Baird Global Consumer, Technology & Services Conference
Question: David Koning - Robert W Baird - Analyst
: All right. Well, thank you. And that's about all the time that we have, but please join me in thanking Visa and Ms. Ellis.
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