Q1 2022 Visa Inc Earnings Call

Exactions and credentials in Q1, we cross the 60 billion payment transaction Mark for the first time in history.

26% from two years ago visa cards were used 28 million times per hour in the last quarter and we also increased our card credentials to over $3 8 billion up 10% in one year.

Im going to leave the rest of the details to besides just I want to focus on the future.

As we look ahead, we expect accelerated revenue growth versus pre COVID-19 over the coming years, driven by our three strategic levers of consumer payments, new flows and value added services.

Many current trends in payments, including AIA RTP buy now pay later crypto and wallets are enabling new ways to pay these represent opportunities for visa, where we are extraordinarily well positioned to utilize our unique strength and global network to help them grow and scale.

Let me start by talking about consumer payments the opportunity to displace cash and check is enormous at our last Investor Day, We said it was <unk> 18 trillion dollars.

In Q1, we saw debit cash volumes at visa growth, 6%, while debit payment volumes grew 19%.

Well cash displacement is certainly a reality global personal consumption expenditure of cash and check grew at a CAGR of 2% over the 10 years ending in 2019.

Speaker 1: When we look at the opportunity ahead, if you assume global cash grows at 1% annually, industry-wide digital penetration of personal consumption expenditure wouldn't reach 90% for several decades.

When we look at the opportunity ahead, if you assume global cash grows at 1% annually industry wide digital penetration of personal consumption expenditure when it reached 90% for several decades.

Speaker 1: For example, in Latin America, until a few quarters ago, there was more cash volume than payments volume on Visa credentials.

For example, in Latin America until a few quarters ago, there was more cash volume than payments volume on visa credentials.

Speaker 1: In fact, in the past year, there has been a nearly 6.5 point shift, and payments volume is now 55 percent of the total volume, even with cash in Latin America growing 10 percent this past quarter.

In fact in the past year, there has been a nearly six five point shift and payments volume is now 55% of the total volume.

Even with cash in Latin America growing 10% this past quarter.

Speaker 1: We have expanded acceptance locations in Latin America by almost 30% in the past year to 18.5 million locations, and we've grown credentials over 20%.

We have expanded acceptance locations in Latin America by almost 30% of the past year to $18 5 million locations and we've grown credentials over 20%.

Speaker 1: This quarter, we signed an eight-year agreement with Santander Chile, one of the largest issuers in the country. And in Brazil, we recently signed a deal with Banco XP, one of the country's largest digital banks with over 3 million customers.

This quarter, we signed an eight year agreement with Santander, Chile, one of the largest issuers in the country and in Brazil, We recently signed a deal with Banco XP one of the country's largest digital bank with over 3 million customers, Brazil remains a growth market with payments volume growth up more than one five times historic.

Speaker 1: Brazil remains a growth market with payments volume growth up more than one and a half times historic levels in recent quarters.

Levels in recent quarters.

Speaker 1: The key to digitizing cash is that the on-ramps to our network have never been easier to access. Wallet providers have been rapidly issuing Visa credentials as they see value in an open-loop ecosystem.

The key to digitizing cash is that the on ramps to our network has never been easier to access.

Wallet providers have been rapidly issuing visa credentials that they see value in an open loop ecosystem.

Speaker 1: NarhanhaX is a rapidly growing Argentinian wallet using Visa cards with 2 million credentials issued between prepaid and debit over the last two years. This quarter, we renewed our partnership with PayPay Bank, which enables accounts to PayPay wallet users. PayPay is one of the fastest growing digital wallets in Japan with 42 million users, and the bank already has 4 million Visa debit users.

No no.

Han Hot acts as a rapidly growing Argentinian wallet using visa card with 2 million credentials issued between prepaid and debit over the last two years. This quarter, we renewed our partnership with Paypal Bank, which enables accounts to Paypal wallet users pay pay is one of the fastest growing digital wall.

Wallace in Japan, with 42 million users and the bank already has 4 million visa debit users.

Speaker 1: We recently extended our partnership with Safaricom, the operator of M-Pesa, to cover African markets outside of Kenya, where M-Pesa has 50 million customers.

We recently extended our partnership with Safari Com, the operators and peso to cover African markets outside of Kenya, where and peso has 50 million customers.

Speaker 1: We're also providing on-ramps for crypto players, creating connectivity with fiat economies. There are over 65 crypto platforms and exchanges that are partnered to issue Visa credentials. This quarter, Visa credentials in crypto wallets had more than $2.5 billion in payments volume, which is already 70% of the payments volume for all of fiscal 2021.

We're also providing on ramps for crypto players, creating connectivity with Fiat economies.

There are over 65, crypto platforms and exchanges that are partnered to issue visa credentials.

S corridor visa credentials in crypto wallets had more than $2 5 billion in payments volume, which is already 70% of the payments volume for all of fiscal 2021.

Speaker 1: In addition to embedding credentials in crypto platforms, we continue to innovate around our settlement and crypto API capabilities, which have been key differentiators for us for fintechs and financial institutions that are looking to extend crypto capabilities to their customers.

In addition to embedding credentials in crypto platforms, we continue to innovate around our settlement in crypto API capabilities.

Which have been key differentiators for us for Fintech and financial institutions that are looking to extend crypto capabilities to their customers.

Speaker 1: We will continue to lean into the crypto space and our strategy is to be a key partner to provide the connectivity, scale, consumer value propositions, reliability and security that is needed for crypto offerings to grow.

We will continue to lean into the crypto space and our strategy is to be a key partner to provide the connectivity scale consumer value propositions reliability and security that is needed for crypto offerings to grow.

Speaker 1: Earlier this month, we previewed CBDC payment APIs currently in development, which would enable central banks to connect their Ethereum-based CBDCs with Visa rails through a wallet with digital issuance capabilities, enabling consumers to spend with CBDCs at any Visa merchant.

Earlier this month, we previewed CBD see payment Apis currently in development, which would which would enable central banks to connect their theory based <unk> with visa rails through a wallet with digital issuance capabilities, enabling consumers to spend with CBD fees at <unk>.

The merchant.

Speaker 1: We partnered with ConsenSys to develop this concept, which was selected as one of the winning entries out of 300 ideas from 50 countries at the Global CBDC Challenge as part of the Singapore Fintech Festival, judged by representatives from the IMF, the World Bank, the Bank of International Settlements, and the central banks of Brazil, India, Kenya, and Indonesia.

We partnered with consensus to develop this concept, which was selected as one of the winning entries out of 300 ideas from 50 countries at the global CBD see challenge as part of the Singapore Fintech Festival judged by Representatives from the IMF The World Bank the bank of international settlements.

And the central banks that Brazil, India, Kenya, and Indonesia.

Speaker 1: In the face-to-face world, tap-to-pay continues to accelerate growth. Let me highlight progress and a few...

In the face to face world tap to pay continues to accelerate growth let.

Let me highlight progress in a few larger markets in Brazil, the tap to pay penetration has increased from 5% to 24% in the past year in India, where we have increased merchant locations, 30% since fiscal year 2000 $19 million to $6 million at the end of fiscal year 'twenty one.

Speaker 1: In Brazil, the tap-to-pay penetration has increased from 5% to 24% in the past year. In India, where we have increased merchant locations 30% since fiscal year 2019 to 6 million at the end of fiscal year 21, the tap-to-pay penetration has nearly doubled to 16% in the same period. And all of these efforts have helped to fuel our 40% plus.

On the tap to pay penetration has nearly doubled to 16% in the same period in all of these efforts have helped to fuel our 40% plus year over year growth rate in payments volume in India. This past quarter.

Speaker 1: year-over-year growth rate in payments volume in India this past quarter.

Speaker 1: In the United States, we're nearing 20% cap-to-pay penetration, with key metro cities showing even stronger growth. L.A., Seattle, Detroit, Orange County, Miami, and Salt Lake City have all surpassed 25%. San Francisco, San Jose, and Oakland are up over 30%, and New York has reached 45%.

In the United States, we're nearing 20% paid tap to pay penetration with key metro cities, showing even stronger growth at La Seattle, Detroit Orange County, Miami in Salt Lake City have all surpassed 25% San Francisco, San Jose and Oakland are up over 30% in New York.

Has reached 45%.

Speaker 1: e-commerce is also key to digitizing payments, and e-commerce merchants are certainly growing as are our relationships with them.

E. Commerce is also key to digitizing payments and ecommerce merchants are certainly growing as our as are our relationships with them. We successfully closed a U S. Co brand deal with spot Shopify, a key e-commerce platform with millions of global merchants and entrepreneurs the shop.

Speaker 1: We successfully closed a U.S. co-brand deal with Shopify, a key e-commerce platform with millions of global merchants and entrepreneurs.

Speaker 1: The Shopify balance card will allow Shopify's U.S.

<unk> balanced cog will allow shopify U S merchants to access funds from sales by the next business day and receive cashback on everyday business expenses like shipping and marketing.

Speaker 1: to access funds from sales by the next business day, and receive cash back on everyday business expenses like shipping and marketing.

Speaker 1: Buy now, pay later, our BNPL continues to grow, and we're seeing more and more BNPL FinTech issuing visa credentials.

Buy now pay later of NPL continues to grow and we're seeing more and more be NPL fintech issuing visa credentials visa.

Speaker 1: Visa is enabling their shift to open loop so that their value proposition to consumers can scale through Visa's broad acceptance.

<unk> is enabling their shift to open loop, so that their value proposition to consumers can scale through visa is broad acceptance last quarter, I mentioned corner and this quarter I'm pleased to announce that our firm has chosen <unk> as their network partner for the affirm debit plus cogs as well as renew.

Speaker 1: Last quarter, I mentioned Klarna, and this quarter I'm pleased to announce that Affirm has chosen Visa as their network partner for the Affirm Debit Plus card, as well as renewing the virtual card.

<unk> the virtual card business, we look forward to supporting a firm's continued growth through visa is wide acceptance and reach.

Speaker 1: We look forward to supporting a firm's continued growth through Visa's wide acceptance and reach.

Speaker 1: BNPL Fintechs are increasingly using Visa Virtual Cards to settle with merchants, driving triple-digit payments volume growth year over year in the United States.

The NPL fintech, so increasingly using visa virtual cards to settle with merchant driving triple digit payments volume growth year over year in the United States.

Speaker 1: The NPL FinTech consumers also continue to use their cards to pay off their installments with active cards growing 50% in the same period.

The NPL Fintech consumers also continue to use their cards to pay off their installments with active cards growing 50% in the same period.

Speaker 1: For traditional issuers, we have a network installment solution called Visa Installments, which enables our financial institution clients to seamlessly offer BNPL capabilities through an existing credit credential on any Visa transaction.

For traditional issuers.

We have a network installment solution called visa installments, which enables our financial institution clients to seamlessly offer <unk> BNP al capabilities through an existing credit credential on any visa transaction.

Speaker 1: In Canada, one of the countries where we are launching the capability, we now have commitments from issuers and acquirers representing the majority of payments volume.

In Canada, one of the countries, where we are launching the capability. We now have commitments from issuers and acquirers, representing the majority of payments volume.

Speaker 1: Credentials on our network of networks through BNPL, crypto, other fintechs, and our traditional issuers bring compelling value propositions like identity protection, fraud prevention, dispute resolution, security loyalty, and more to consumers. This tremendous value motivates consumers to use their Visa credential online or in face-to-face versus cash, A2A, RTP, or even blockchain.

Credentials on our network of networks through <unk>, NPL crypto other fintech and our traditional issuers bring compelling value propositions like identity protection fraud prevention dispute resolution security loyalty and more to consumers. This tremendous value motivates consumers to use their visa credential online or in.

Face to face versus cash AIA, RTP or even blockchain.

Speaker 1: So to summarize, the opportunity in consumer payments is huge and has an incredible long-term runway. On-ramps to our network of networks have never been easier. We provide a compelling consumer value proposition, and the advances in new ways to pay are good for Visa and these payment providers. Visa is enabling utility and scale for BNPL, crypto, and wallets, and all other nuances.

So to summarize the opportunity in consumer payments is huge and has an incredible long term runway on ramps to our network of networks have never been easier, we provide a compelling consumer value proposition and the advances in new ways to pay are good for visa and these payment providers visa, enabling utility and cig.

Calle for NPL, crypto and wallets and all other nuance entrants.

Speaker 1: Now, let me move to progress with use cases and new flows, which represent the $185 trillion opportunity, 10x that of consumer payment.

Now, let me move to progress with use cases, and new flows which represents a 185 trillion dollar opportunity tenex that a consumer payments, we are seeing a large appetite from our partners and experiencing significant growth a key driver is visa direct which targets of 65.

Speaker 1: We are seeing a large appetite from our partners and experiencing significant growth. A key driver is Visa Direct, which targets a $65 trillion opportunity across

Five trillion dollar opportunity across <unk>.

Speaker 1: P to P, small b, B to C, and G to C.

<unk>.

Small b B C and D to C.

Speaker 1: These are all use cases that Visa didn't really serve just five years ago.

These are all use cases that visa didn't really serve just five years ago by.

Speaker 1: By aggressively pursuing these flows with our more compelling solution, Visa is seemingly displacing alternatives that rely on fragmented and gated technology, not the other way around. Visa transaction growth was 35%.

By aggressively pursuing these flows.

With our more compelling solution visa has seemingly displacing alternatives that rely on fragmented in data technology not the other way around these.

These are transaction growth was 35% this quarter.

Speaker 1: In the U.S., domestic P2P is currently our largest use case and also our lowest yielding.

In the U S. Domestic PDP is currently our largest use case and also our lowest yielding one as we scale and grow other geographies and use cases, especially those that are cross border. We expect the revenue yield to increase regardless of the yield. These are directed accretive given it mostly leverages our existing.

Speaker 1: As we scale and grow other geographies and use cases, especially those that are cross-border, we expect the revenue yield to increase. Regardless of the yield, these are directed as accretive, given it mostly leverages our existing platforms and capabilities.

Forms and capabilities.

Speaker 1: Usage is growing with banks signing on for global remittances using cards or accounts, among them the Qatar Islamic Bank, one of the largest banks in Qatar, and CIBC and Simply Financial in Canada. Visa direct is also enabling Fintech, Chime, and Neobank Barrow in the U.S. for account-to-account money moving.

Usage is growing with banks signing on for global remittances using cards or accounts among them the Qatar Islamic bank, one of the largest banks in Qatar and CIBC and simply financial in Canada Visa direct is also enabling fintech chine and Neo bank Barra borrow in the U S for account to account.

Money movement.

Speaker 1: Usage has also expanded across several other use cases this quarter, such as payouts to door-dash-dashers in Canada. We also recently signed an agreement with Toast to leverage Visa Direct on several fronts. First, near instant cash flow access to daily sales and loan disbursement for their 48,000-plus restaurant customers. And second, for fast tip payouts and earned wage access for their restaurant client employees.

Usage has also expanded across several other use cases this quarter such as payouts to door Dash dashes in Canada. We also recently signed an agreement with toast to leverage visa direct on several fronts first near instant cash flow access to daily sales and loan disbursement for their 40.

8000, plus restaurant customers and second for fast tip payout and earned wage access for their restaurant client employees.

Speaker 1: Visa Direct is a compelling capability because we offer incredible reach to more than five billion cards and accounts, global scale, a leading technology stack, world-class security, and 24 by 7, 365 reliability.

Visa direct is a compelling capability because we offer incredible reach to more than 5 billion cards and accounts global scale of leading technology stack World class security and 24 by $703 65 reliability, all of which is easy to access through hundreds of partners across our global.

Speaker 1: all of which is easy to access through hundreds of partners across our global network of networks, reaching bank accounts through a combination of card, ACH, and RTP systems in more than 175 countries.

Network of networks, reaching bank accounts through a combination of card Achei RTP systems in more than 175 countries.

Speaker 1: In the B2B new flows opportunity, we expect future growth to have several vectors. Let me just highlight a couple. First, B2B carded issuance in both physical and virtual cards where we have a leading share.

In the <unk> new flows opportunity, we expect future growth to have several vectors. Let me just highlight a couple first <unk> card issuance in both physical and virtual cards, where we have a leading share this quarter in India. After partnering with leading BTB Neo bank open for several years, we signed the deal.

Speaker 1: This quarter in India, after partnering with leading B2B neobank, Open, for several years, we signed a deal for credit and debit issuance, as well as the implementation of Visa Direct. In virtual card, we're expanding to new verticals. One recent example is health care. In this quarter, we signed an agreement with a direct health care company, KnowMeHealth, a health care provider that serves 30,000 people per day across 10 US states for its claims payment solution.

For credit and debit issuance as well as the implementation of visa direct and virtual card, we're expanding to new verticals. One. Recent example is healthcare and this quarter, we signed an agreement with a direct healthcare company know me health a health care provider that serves 30000 people per day across 10 U S state.

<unk> for its claims payment solution.

Speaker 1: A second vector of B2B growth is large ticket account-based cross-border payments through Visa B2B Connect, which links our global payments infrastructure with best-in-class capabilities to address the primary pain points of existing solutions.

A second vector of <unk> growth is large ticket account based cross border payments through visa <unk> connect which links our global payments infrastructure with best in class capabilities to address the primary pain points of existing solutions.

Speaker 1: In Latin America, Visa B2B Connect is available in nearly 30 countries, and we've enrolled partners in more than a third of those countries already.

America Visa <unk> connect is available in nearly 30 countries and we've enrolled partners and more than a third of those countries already.

Speaker 1: One partner is CBanco, a leading bank in Mexico. Since enabling the solution in March of 2021, the bank has grown vis-a-vis connect volumes, double digits every quarter, and has processed thousands of payments and hundreds of millions of payments volume.

<unk> partner is C. Banco a leading bank in Mexico since enabling the solution in March of 2021. The bank has grown <unk> connect volumes double digits every quarter and as process thousands of payments and hundreds of millions of payments volume.

Speaker 1: We also recently added Spurbank, the largest bank in Russia, Eastern and Central Europe , which will be live and processing transactions later this year.

We also recently added spur bank, the largest bank in Russia, Eastern and Central Europe , which will be live and processing transactions later this year.

Speaker 1: So to summarize new flows, the opportunity is 10 times consumer payments. Our capabilities and value proposition are strong versus the competition, and we expect revenue yield to continue to improve as we scale and grow Visa Direct, especially in cross-border use cases.

So to summarize new flows the opportunity is 10 times consumer payments, our capabilities and value proposition are strong versus the competition and we expect revenue yield to continue to improve as we scale and grow visa direct especially in cross border use cases.

Speaker 1: Now let's move to value-added services. In Q1, revenue grew over 20% and we expect strong growth to continue. One example is with Visa Consulting and Analytics.

Now, let's move to value added services in Q1 revenue grew over 20% and we expect strong growth to continue. One example is with visa consulting and analytics.

Speaker 1: In addition to our crypto offerings that I mentioned earlier, we recently launched a specialized global crypto advisory practice to help financial institutions eager to offer customers a crypto solution, retailers who are looking to delve into NFTs, or central banks exploring digital currencies.

In addition to our crypto offerings that I mentioned earlier, we recently launched a specialized global crypto advisory practice to help financial institutions eager to offer customers a crypto solution retailers, who are looking to delve into NFPA or central banks exploring digital currencies.

Speaker 1: Another example is with authentication. In Europe , we have tripled the use of Visa's new authentication technology, EMV3DS, since the start of 2021. And this has coincided with a reduction in card not present fraud by 28%. And it has also positively impacted the transaction authorization rate.

Another example is with the authentication in Europe , we have tripled the use of visas new authentication technology.

The <unk> since the start of 2021 and this has coincided with a reduction in card not present fraud by 28% and it was also positively impacted the transaction authorization rates.

Speaker 1: And we are launching new capabilities to build for the future. Visa Acceptance Cloud enables clients to move embedded payment processing software from individual devices to the cloud, eliminating the need for expensive terminals as well as the cost and time to certify the processing software.

And we are launching new capabilities to build for the future. These acceptance cloud enables clients to move embedded payment processing software from individual devices to the cloud eliminated eliminating the need for expensive terminals as well as the cost and time to certify the processing software.

Speaker 1: In addition, clients can access value-added services from fraud management to BNTL.

In addition clients can access value added services from fraud management <unk> NPL.

Speaker 1: We also recently closed our acquisition of CurrencyCloud. We believe the combination of CurrencyCloud's APIs on the front end, which provide real-time foreign exchange capabilities, and our settlement capabilities across our network of networks, we will have a very compelling value.

We also recently closed our acquisition of currency cloud, we believe the combination of currency clouds Apis on the front end, which provide real time foreign exchange capabilities and our settlement capabilities across our network of networks, we will have a very compelling value proposition together, we can innate.

Speaker 1: Together, we can enable new use cases and payment flows, particularly as we expand the cross-border use cases we provide our clients, including B2B Connect and Visa Direct. We can extend our FX platform for easier connectivity for FinTechs and non-financial institution partners, and we can offer real-time FX rates and improve transparency for our partner customers.

New use cases and payment flows, particularly as we expand the cross border use cases, we provide our clients, including <unk> connect and visa direct.

We can extend our FX platform for easy easier connectivity for Fintech and non financial institution partners and we can offer real time, FX rates and improved transparency for our partner customers.

Speaker 1: So to summarize value-added services, we will continue to bring these innovations to the payments ecosystem. We are diversifying our revenue mix, and this will help us retain and win business and grow revenue well into the future.

So to summarize value added services, we will continue to bring these innovations to the payments ecosystem. We are diversifying our revenue mix and this will help us retain and win business and grow revenue well into the future.

Speaker 1: In conclusion, as I think about Visa's future, I'm extremely optimistic and energized.

In conclusion, as I think about visa's future I'm extremely optimistic and energized while much has been written about new payment types being potentially disruptive to visa, we see a lot more opportunity than disruption our global infrastructure is providing connectivity through our network of networks to power more traditional payment.

Speaker 1: While much has been written about new payment types being potentially disruptive to Visa, we see a lot more opportunity than disruption. Our global infrastructure is providing connectivity through our network of networks to power more traditional payment types and newer ways to pay and move money. Our interconnectivity, security, reliability, consumer and fraud protections, risk management, and other value-added services offer a superior experience.

<unk> and newer ways to pay and move money, our interconnectivity security reliability consumer and fraud protections risk management and other value added services offer a superior experience.

Speaker 1: We expect to attract more and more transactions, which will continue to fuel our growth at an accelerated rate. With that, let me turn it over.

We expect to attract more and more transactions, which will continue to fuel our growth at an accelerated rate with that let me turn it over to facade.

Speaker 2: Thank you, Al. Good afternoon everyone. Our fiscal 2022 is off to an excellent start with net revenues up 24% and gap EPS up 29%.

Thank you al good afternoon, everyone.

Fiscal 2022 is off to an excellent start with net revenues up 24% and GAAP EPS up 29%.

Speaker 2: non-GAAP EPS adjusted for items including investment gains and the litigation accrual was up 27%.

non-GAAP EPS adjusted for items, including investment gains and the litigation accrual was up 27%.

Speaker 2: In constant dollars, net revenue growth was approximately a point higher at 25 percent and non-GAAP EPS approximately one and a half points higher at over 28 percent.

In constant dollars net revenue growth was approximately a point higher at 25% and non-GAAP EPS approximately one five points higher at over 28%.

A few key highlights.

Speaker 2: We had a very sharp recovery in cross-border travel in October and November as much of the globe ex-China moved to reopen borders or announced timetables to open borders and lifted restrictions such as quarantine.

We had a very sharp recovery in cross border travel in October and November as much of the globe ex China move to reopen borders.

Announced on cables to open borders and lifted restrictions such as quarantines.

Speaker 2: As a result, card-present and card-not-present travel, which exited September at an index of 61 to 2019, rose steeply to hit an index of 72 for the first quarter. Border reopenings came sooner than we had anticipated, and as we've seen throughout 2021, consumers were very quick to act.

As a result card present and card not present travel, which exited September at an index of 16, one to 2019 rose steeply to hit an index of <unk> 72 for the first quarter.

Border reopening skin sooner than we had anticipated.

As we've seen throughout 2021 consumers are very quick to act.

Speaker 2: As Omicron hit, some borders shut and some restrictions were reinstated. However, as we speak, borders are being reopened and restrictions lifted, and we expect the travel recovery to resume as we head into February .

As omicron hit.

Some border shut in some restrictions were reinstated however, as we speak borders are being reopened and restrictions lifted and we expect to travel recovery to resume as we head into February .

Speaker 2: Payments volumes remained robust through the quarter globally, with the index of 2019 stepping up relative to the prior quarter by two points in the U.S. and six points internationally. The credit recovery continued, and debit growth remained strong and stable.

Payments volume remained robust through the quarter globally.

The index for 2019 stepping up relative to the prior quarter by two points in the U S and six points internationally. The credit recovery continued and debit growth remained strong and stable.

Speaker 2: U.S. holiday retail spending was especially strong, more than 40% over 2019.

U S holiday retail spending was especially strong more than 40% over 2019 equal.

Speaker 2: e-commerce continued to gain share of retail spending up five points since 2019.

E Commerce continued to gain share of retail spending up five points since 2019.

Speaker 2: The impact of Omicron on domestic volumes has been modest. As the Omicron wave crests globally, we expect the impact to ease, as it has in markets such as South Africa and the UK, which are among the first to be hit.

The impact of WOMAC chromium domestic volume has been modest as the omicron wave crest globally, we expect the impact to ease as it has in markets such as South Africa, and the UK, which are among the first to be hit.

Speaker 2: Revenue growth was very strong across our three growth engines.

Revenue growth was very strong across our three growth engines.

Speaker 2: Consumer Payments and New Flows Net Revenues grew in the mid-20% range, and Value Added Services Revenues grew over 20%.

<unk> payments and new flows net revenues grew in the mid 20% range and value added services revenues grew over 20%.

Speaker 2: We significantly stepped up the pace of our stock buybacks during the quarter. We acquired 19.4 million shares for $4.1 billion at an average price of $2.210.

We significantly stepped up the pace of our stock buybacks during the quarter. We acquired 19 4 million shares for $1 billion at an average price of $2 $210.

Speaker 2: And our board authorized a new $12 billion stock buyback program in December .

And our board authorized a new $12 billion stock buyback program in December .

Speaker 2: Also in late December , we closed the CurrencyCloud transaction.

Also in late December we closed the currency cloud transaction.

Now onto the details.

Speaker 2: In constant dollars, global payments volume was up 20% year-over-year and 26% versus 2019, each accelerating three to five points versus the last quarter, led by continued strength in debit as well as improving credit spending.

In constant dollars global payments volume was up 20% year over year, and 26% versus 2019, each accelerating three to five points versus the last quarter led by continued strength in debit as well as improving credit spending.

Speaker 2: Excluding China, total payments volume growth was 22%, or 31% higher than 2019, and a four to five point acceleration from the fourth quarter. U.S. payments volume.

Excluding China total payments volume growth was 22% or 31% higher than 2019, and a 4% to five point acceleration from the fourth quarter.

U S payments volume grew 22%.

Speaker 2: up 32% over 2019, both higher than Q4.

Up 32% over 2019, both higher than Q4.

Speaker 2: Credit grew 27% and improved six points to 23%, about 2019, helped by affluent consumer and small business spending.

Credit grew 27% and improved six points to 23% above 2019.

By affluent consumer and small business spending.

Speaker 2: Debit grew 18% year-over-year and remained very strong at 43% about 2019, similar to the last quarter. As you can see, debit spend has remained resilient, even has credit recovered.

Debit grew 18% year over year and remained very strong at 43% above 2019, similar to the last quarter.

As you can see debit spend has remained resilient even as credit recovered.

Speaker 2: U.S. card present spend grew 25% and was 17% about 2019, improving two points at its highest level yet in the pandemic driven by fuel, retail, and entertainment spending.

U S card present spend grew 25% and was 17% of our 2019, improving two points at its highest level, yet independencia driven by fuel retail and entertainment spending.

Speaker 2: Cardano's present volume, excluding travel, grew 16%, 52% about 2019, similar to last quarter.

Card not present volume, excluding travel grew 16%, 52% about 2019 similar to last quarter.

Speaker 2: e-commerce growth remains robust, even as card presence spend continues to recover.

E Commerce growth remains robust, even if Scott present spend continues to recover.

Speaker 2: U.S. retail spending during the holiday season grew double digits and more than 40 percent above 2019 levels, both of which are very strong by historical standards.

U S retail spending during the holiday season grew double digits and more than 40% above 2019 levels, both of which are very strong by historical standards.

Speaker 2: The share of holiday car present retail spending improved a few points from last year, but was still five points lower than 2019, as the shift towards e-commerce over the past decade continued.

But the share of holiday card present retail spending improved a few points from last year, but was still five points lower than 2019 as the shift towards e-commerce over the past decade continues.

Speaker 2: Detail shopping is happening earlier in the holiday season than it used to, which is a trend that started last year.

Retail shopping is happening earlier in the holiday season than it used to which is a trend that started last year.

As a result relative to 2019 November volume was stronger than December .

Speaker 2: US holiday spending trends are fairly consistent with other major markets around the world.

U S holiday spending trends are fairly consistent with other major markets around the world.

Speaker 2: International constant dollar payments volume excluding China grew 22% and was 29% about 2019, improving 7 points from the fourth quarter.

International constant dollar payments volume, excluding China grew 22% and was 29% above 2019, improving seven points from the fourth quarter.

A few regional highlights.

Speaker 2: Latin America was up 44% year over year and 66% about 2019, accelerating eight points from the fourth quarter with robust performance across the region fueled by cash digitization and client

Latin America was up 44% year over year, and 66% above 2019, accelerating eight points from the fourth quarter with robust performance across the region fueled by cash Digitization and client wins.

Speaker 2: Our CIMIA region remains strong, up 31% and 58% from 2019 levels, accelerating 10 points from the fourth quarter, also fueled by cash digitization and client.

Our EMEA region remained strong up 31% and 58% from 2019 levels accelerating 10 points from the fourth quarter.

Fueled by cash Digitization and client wins.

Speaker 2: Europe was up 17% and 23% from 2019, improving 3 points from the last quarter due to strong performance across continental Europe .

Europe was up 17% and 23% from 2019, improving three points from the last quarter due to strong performance across Continental Europe .

Speaker 2: Asia Pacific, excluding China, remains our weakest region, up 16% both year-over-year and versus 2019.

Asia Pacific, Excluding China remains our weakest region up 16% both year over year and versus 2019.

Speaker 2: But a recovery is finally underway with an 11 point improvement from Q4, mostly due to relaxed, relaxed restrictions.

But the recovery is finally underway with an 11 point improvement from Q4, mostly due to relax relax restrictions.

Speaker 2: The largest improvements were in Australia, India, Southeast Asia, and Japan.

The largest improvements within Australia, India, Southeast Asia and Japan.

Speaker 2: Global process transactions were up 21% year-over-year and 26% over 2019, two points better than the fourth quarter, accelerating less than overall volume growth due to higher ticket sizes.

Global process transactions were up 21% year over year, and 26% over 2019, two points better than the fourth quarter accelerating less in overall volume growth due to higher ticket sizes.

Speaker 2: Constant dollar cross-border volume, excluding transactions within Europe , was up 51% year-over-year and was 1% above 2019 volumes, a 15-point improvement from the fourth quarter.

Constant dollar cross border volume, excluding transactions within Europe was up 51% year over year.

And was 1% above 2019 volume a 15 point improvement from the fourth quarter.

Speaker 2: Cross-border card not present volume growth excluding travel continue to strengthen up 26% year-over-year and 50% about 2019.

Cross border card not present volume growth, excluding travel continued to strengthen up 26% year over year, and 50% about 2019 seven points higher than the fourth quarter as consumer engagement continues to grow.

Speaker 2: seven points higher than the fourth quarter as consumer engagement continues to grow.

Speaker 2: Cross-border travel-related spending, excluding intra-Europe, grew 102% year-over-year and was 72% of 2019 levels, improving an extraordinary 14 points from the fourth quarter to the first quarter.

Cross border travel related spending excluding intra Europe grew 102% year over year and was 72% of 2019 levels, improving an extraordinary 14 points from the fourth quarter to the first quarter.

Speaker 2: The recovery in the first two months of the quarter versus 2019 was very fast and broad-based, with outbound travel from each of our regions improving more than 10 points relative to 2019 from September to November . Inbound travel to the U.S., Canada, Samia, and Europe all improved about 20 points during that time, while Latin America and Asia each improved at least 5 points.

The recovery in the first two months of the quarter versus 2019 was very fast and broad base with outbound travel from each of our regions improving more than 10 points relative to 2019 from September to November <unk>.

Inbound travel to the U S, Canada, EMEA and Europe , all improved about 20 points during that time, while Latin America and Asia, each improved at least five points.

Speaker 2: This recovery was driven by a combination of border openings, the relaxing of restrictions and pent-up demand.

This recovery was driven by a combination of Baltimore opening.

The relaxing of restrictions and pent up demand.

Speaker 2: Countries such as the U.S., Singapore, Thailand, Australia, Chile, Argentina, and many more reduce friction for inbound travelers. The U.S. to Europe course

Countries, such as the U S, Singapore, Thailand, Australia, Chile, Argentina, and many more reduce friction for inbound travelers the USD Euro corridor remained open.

Speaker 2: This steep travel recovery started to lose momentum in the last week of December as Omicron spread around the globe. We expect this to be short-lived.

This deep travel recovery started to lose momentum in the last week of December omicron spread around the globe. We expect this to be short lived.

Moving now to a quick review of our first quarter financial results.

Speaker 2: Moving now to a quick review of first quarter financial results.

Speaker 2: Service revenue grew 19%, slightly better than the 18% nominal growth in Q4 payments volume, helped by increased utilization of card benefits and small pricing modifications.

Service revenues grew 19% slightly better than the 18% nominal growth in Q4 payments volume helped by increased utilization of <unk> benefits and small pricing modifications.

Data processing revenues grew 19%.

Speaker 2: slightly below the 21% process transaction growth, mostly due to exchange rate changes.

Slightly below the 21% processed transaction growth, mostly due to exchange rate changes.

Speaker 2: International transaction revenues were up 50 percent, consistent with nominal cross-border volumes excluding intra-euro.

International transaction revenues were up 50% consistent with nominal cross border volume excluding intra Europe .

Speaker 2: Other revenues grew 17% led by consulting, data and marketing services, as well as travel-related benefits.

Other revenues grew 17% led by consulting data and marketing services as well as travel related benefits.

Revenue growth was robust across our three growth engines.

Speaker 2: Consumer payments grew in the mid-twenties, led by improving cross-border volumes and continued strong domestic volumes in transactions.

Consumer payments grew in the mid twenties led by improving cross border volume and continued strong domestic volumes and transactions.

Speaker 2: New floors also grew in the mid-twenties, driven by Visa Direct and the carded B2B recovery.

New flow also grew in the mid twenties, driven by visa direct and the B to B recovery.

Speaker 2: Visa direct transactions grew 35%. We're lapping very strong quarters from last year, which is moderating U.S. growth rates. Meanwhile, the international business is ramping fast, as is growth from use cases such as cross-border remittances, earned wage access, and marketplace payoffs.

Visa direct transactions grew 35%.

Lapping very strong quarters from last year, which is moderating U S growth rates. Meanwhile, the international business is ramping fast as its growth from use cases, such as cross border remittances earned wage access and marketplace payouts.

Speaker 2: Commercial or B2B volumes grew 28% year-over-year, and up 26% over 2019, a five-point improvement from the prior quarter, mostly in credit.

Commercial <unk> volumes grew 28% year over year and up 26% over 2019, a five point improvement from the prior quarter, mostly in credit the.

Speaker 2: The growth is helped by share gains and a portfolio of diverse spend categories that is not overly dependent on T&E.

The growth is helped by share gains and a portfolio of diverse spend categories that is not overly dependent on <unk>.

Speaker 2: Value-added services revenue grew over 20% led by risk and identity, as well as consulting and data service.

Value added services revenue grew over 20% led by risk and identity as well as consulting and data services.

Speaker 2: Growth was driven by new client adoption, increased usage among existing clients, and international expansion.

Growth was driven by new client adoption increased usage among existing clients and international expansion.

Speaker 2: Client incentives were 25.1% of gross revenues, about one point below our expectation.

Client incentives were 2025, 1% of gross revenues about one point below our expectations.

Speaker 2: This was the result of a significantly better revenue mix due to the faster-than-expected recovery of our cross-border business.

This was the result of a significantly better revenue mix due to the faster than expected recovery of our cross border business.

Speaker 2: As our revenue mix continues to normalize with the cross-border recovery, it will help this ratio.

As our revenue mix continues to normalize with the cross border recovery. It will help this ratio.

Speaker 2: Gap operating expenses grew 24%, inclusive of a $145 million litigation provision associated with U.S. Interchange multi-district litigation case.

GAAP operating expenses grew 24% inclusive of $145 million litigation provision associated with U S interchange Multidistrict litigation case non.

Speaker 2: non-GAAP operating expenses grew 16% in line with our expectations.

non-GAAP operating expenses grew 16% in line with our expectations.

Speaker 2: We recorded gains from our equity investments of $231 million.

We recorded gains from our equity investments of $231 million.

Speaker 2: Excluding investment gains, non-GAAP non-operating expense was $110 million.

Excluding investment gains non-GAAP nonoperating expense was $110 million.

Speaker 2: A non-gap tax rate of 19.3% was in line with expectations.

Our non-GAAP tax rate of 19, 3% was in line with expectations. Our first quarter tax rate is typically a little lower than the full year rate.

Speaker 2: Our first quarter tax rate is typically a little lower than the full year rate.

Speaker 2: Gap EPS was $1.83, non-gap EPS was $1.81, up 27% over last year.

GAAP EPS was $1 83.

non-GAAP EPS was $1 81 up.

2000.

27% over last year.

Speaker 2: including our quarterly dividend of $0.375 per share and our stock buybacks, we returned $4.9 billion of capital to shareholders in the quarter.

Including our quarterly dividend of <unk> 37, five per share and our stock buybacks.

Returned $4 $9 billion of capital to shareholders in the quarter.

A few comments on our trends through the first three weeks of January .

Speaker 2: On a year-over-year basis, U.S. payments volume was up 13%, with debit up 4% and credit up 25%.

On a year over year basis U S payments volume was up 13% with debit up 4% and credit up 25%.

Speaker 2: As you assess these numbers, it is important to remember that there was a government stimulus disbursement which caused a surge in debit spending in early January 2021.

As you assess these numbers it is important to remember that there was a government stimulus disbursement, which caused a surge in debit spending in early January 2021, John .

Speaker 2: January spend growth versus 2019 was up 40%, with debit up a robust 52%, and credit up 29%.

January spend growth versus 2019 was up 40% with debit up a robust, 52% and credit up 29%.

Speaker 2: These trends are relatively consistent with performance in our major markets around the world.

These trends are relatively consistent with performance in our major markets around the world.

Speaker 2: Process transactions grew 17% year-over-year, up 37% versus 2019, lagging volume growth due to larger ticket sizes.

Processed transactions grew 17% year over year up 37% versus 2019 lagging volume growth due to larger ticket sizes.

Speaker 2: Cross-border volume excluding transactions within Europe on a constant dollar basis grew 44% year-over-year and was 4% above 2019.

Cross border volume, excluding transaction within Europe on a constant dollar basis grew 44% year over year and was 4% above 2019.

Speaker 2: Card not present, non-travel growth remains strong at 67% about 2019, up 17 points from the first quarter.

Card not present non travel growth remained strong at 67% about 2019 up 17 points from the first quarter.

Speaker 2: The cross-border travel recovery has stalled since late December due to Omicron indexing at 72 to 2019 in line with the first quarter.

The cross border travel recovery has stalled since late December due to omicron indexing at 72% to 2019 in line with the first quarter.

Speaker 2: Borders are reopening and we expect the recovery to resume in February .

What are the reopening and we expect the recovery to resume in February .

Speaker 2: Total cross-border volume was 14% above 2019.

Total cross border volume was 14% above 2019.

Moving now to our outlook for the second quarter.

Domestic volume growth has stayed robust and stable for the past three quarters.

Speaker 2: Domestic volume growth has stayed robust and stable for the past three quarters. While Omicron has had some recent impact, it has been modest and will ease as the wave crests. This is also the case with e-commerce growth, both domestic and cross-border. We are assuming that these trends continue.

While <unk> has had some recent impact it has been modest and will ease as we have Chris. This is also the case with e-commerce growth, both domestic and cross border.

We're assuming these trends continue.

Speaker 2: The swing factor is cross-border travel. As discussed, the cross-border travel recovery was very rapid in October and November as the US border reopened and many countries eased restrictions or announced plans to do so.

The swing factor is cross border travel.

As discussed the cross border travel recovery was very rapid.

<unk> in November as the U S border reopened and many countries ease restrictions or announced plans to do so.

Speaker 2: With Omicron surging, some restrictions were put back in place, and some reopening plans were put on hold. However, restrictions are being eased and borders are reopening.

With omicron surging some restrictions were put back in place and some reopening plans were put on hold.

However, restrictions are being eased and borders reopening we're assuming the cross border travel recovery resumes in February .

Speaker 2: We are assuming the cross-border travel recovery resumes in February .

Speaker 2: As such, we expect net revenues to grow at the high end of high teams in the second quarter, including over one point of exchange rate drag.

As such we expect net revenues to grow at the high end the high teens in the second quarter.

Including over one point of exchange rate drag.

Speaker 2: Incentives should grow at a similar rate as the first quarter, which is a percent of gross revenues will likely be in the 25.5 to 26.5 percent range based on volumes, renewal activity, and cross-border performance.

Insurance incentives should grow at a similar rate as the first quarter, which as a percent of gross revenues will likely be in the $25 five to 26, 5% range based on volumes renewal activity and cross border performance.

Speaker 2: We expect organic, non-GAAP operating expenses growth at the high end of mid-teens with some additional investment spend.

We expect organic non non-GAAP operating expenses growth at the high end of mid teens with some additional investment spend.

Speaker 2: The inclusion of CurrencyCloud will add another 1.5 points to non-GAAP operating expenses.

The inclusion of currency cloud will add another one five points to non-GAAP operating expense growth.

Speaker 2: Tax rate is expected to come in at the high end of the 19 to 19.5% rate.

Tax rate is expected to come in at the high end of the 19% to 19, 5% range.

Speaker 2: We can also update some of the planning assumptions for the full year we had shared with you in October .

We can also update some of the planning assumptions for the full year, we had shared with you in October .

Speaker 2: Domestic payments volumes and cross-border e-commerce volumes as well as the associated transactions are largely in line with expectations.

Domestic payments volumes in cross border E Commerce volume as well as the associated transaction are largely in line with expectations.

Speaker 2: At the end of December we were running significantly ahead on cross-border travel index to 2019 relative to our assumptions in the fall.

At the end of December we were running significantly ahead on cross border travel indexed to 2019 relative to our assumptions in the fall.

Speaker 2: As such, we are now assuming that the cross-border travel index to 2019, excluding intra-Europe, ends the fiscal year 10 points ahead of our prior assumptions, or at 90%.

As such we are now assuming that the cost cross border travel indexed to 2019, excluding intra Europe .

And the fiscal year 10 points ahead of our prior assumptions are at 90%.

Speaker 2: inclusive of intra-Europe travel, this would be back at 2019 level.

Inclusive of intra Europe travel this would be back at 2019 levels.

Speaker 2: With these updated assumptions, net revenue for the full year would grow at the high end of high teams, including one point of exchange rate drag.

With these updated assumptions net revenue for the full for the full year would grow at the high end of high teens, including one point of exchange rate drag.

Speaker 2: Obviously, revenue growth would be higher if the cross-border recovery is more robust in the second half and more akin to what we saw in October and November .

Obviously revenue growth would be higher if the cross border recovery is more robust in the second half and more akin to what we saw in October and November .

Speaker 2: With revenue mix improving from higher cross-border volumes, incentives of a percent of gross revenues would range between 25.5% to 26.5% for the year.

With revenue mix, improving from higher cross border volume incentives as a percent of gross revenues will range between 25, and a half to 26, 5% for the year.

Speaker 2: We expect organic non-GAAP operating expenses growth at the high and the mid-teens.

Organic non-GAAP operating expenses growth at the high end to mid teens.

Speaker 2: The inclusion of CurrencyCloud will add another point to non-GAAP operating expenses.

The inclusion of currency cloud will add another point to non-GAAP operating expense growth.

Speaker 2: Tax rate is expected to be at the upper end of the 19 to 19.5% range.

Tax rate is expected to be at the upper end of the 19% to 19, 5% range.

Speaker 2: On a gap and non-gap basis, the impact of currency cloud is not material for the year.

On a GAAP and non-GAAP basis, the impact of currency cloud is not material for the year.

Speaker 2: As a reminder, in our non-GAAP numbers, we make adjustments to exclude amortization of intangibles and non-recurring acquisition-related costs.

As a reminder, in our non-GAAP numbers, we make adjustments to exclude amortization of intangibles and nonrecurring acquisition related costs.

Speaker 2: In summary, FY22 is also an excellent start.

In summary FY.

'twenty two is off to an excellent start.

Speaker 2: We expect our growth this year will be well above the pre-COVID rate as cross-border recovers. This will likely continue into fiscal year 2023.

We expect our growth this year will be well above the pre COVID-19 rate as borders as cross border recovers.

This will likely continue into fiscal year 'twenty three.

Speaker 2: Beyond that, we are confident the business can sustain a revenue growth rate above pre-COVID levels for three reasons.

Beyond that we are confident the business can sustain a revenue growth rate above pre COVID-19 levels for three reasons.

Speaker 2: First, an acceleration away from cash-in-check for merchant payments, both domestic and cross-border, as digitization becomes pervasive across consumers and businesses globally.

First an acceleration away from cash and check for merchant payments, both domestic and cross border as digitization becomes pervasive across consumers and businesses globally.

Speaker 2: Second, acceleration of cash, check, and wire transfer displacement as our new flows initiatives penetrate a broad range of new use cases with very large total addressable markets.

Second acceleration of cash checks and wire transfer displacement as our new flows initiatives penetrate a broad range of new use cases with very large total addressable markets.

Speaker 2: Third, sustainable high-teams growth across our value-added services, both from existing services and new offers.

Third sustainable high teens growth across our value added services, both from existing services and new offerings.

Speaker 2: As new flows and value-added services become a larger part of our revenue mix, growing faster than consumer payments, the sustainable growth rate will continue to rise.

As new flows and value added services become a larger part of our revenue mix growing faster than consumer payments the sustainable growth rate will continue to rise.

Speaker 2: We are and will continue to invest in the capabilities required to capture the extraordinary growth opportunity ahead of us. With that, I'll turn this back to Mike.

We are and will continue to invest in the capabilities required to capture the extraordinary growth opportunity ahead of us.

With that I'll turn this back to Mike.

Thank you for your time, we're now ready to take questions.

Speaker 3: If you would like to ask a question, please press star 1 and clearly record your name. You will be announced prior to asking your question. To ensure all questioners are heard, we ask that you please limit yourself to one question.

If you would like to ask a question. Please press star one and clearly record your name will be announced prior to asking your questions to ensure all questioners or hurt we ask that you. Please limit yourself to one question once again to ask a question. Please press star one to withdraw your question Press Star two.

Speaker 3: Once again, to ask a question, please press star 1. To withdraw your question, press star 2.

Speaker 3: Our first question comes from Darren Peller from Wolf Research. Your line is open.

First question comes from Darrin Peller from Wolfe Research Your line is open.

Speaker 4: Thanks, guys. Nice job. Al, can you start off by revisiting what you see as the key sustainable factors that's probably accelerated somewhat as the as the pandemic regressed?

Thanks, guys nice job al can you start off by revisiting what you see as the key sustainable factors Thats, probably accelerated somewhat as the as the pandemic progressed.

Speaker 4: Um, whether that services or it's just volume generally having shifted over faster. And then I guess on that note, as we get cross-border improving, you should get a pretty big pass through to the bottom line. I'm just curious, your thought process around the potential for reinvestment versus rewarding shareholders. Uh, thanks a lot guys.

Whether that services or it's just volume generally having shifted over faster and then I guess on that note as we get cross border improving you should get a pretty big pass through to the bottom line I'm just curious your thought process around the <unk>.

For reinvestments versus rewarding shareholders.

Thanks, a lot guys.

Darren I think.

Speaker 1: First, in the near term, I think the upside is going to come from continued recovery of travel and the affluent customer getting back in the mix of spending at the levels they were pre the pandemic. In terms of the sustained longer term opportunities, I think they come in a number of places. First, e-commerce adoption is going to be very sticky and millions and millions of people around the world went to e-com for the first time during the pandemic.

First in the near term.

I think the upside is going to come from continued recovery of travel in the affluent customer getting back in the in the mix of spending at the levels. They were pre the pandemic in terms of the sustained longer term opportunities I think they come at a number of places first.

E Commerce adoption is going to be very sticky.

Millions and millions of people around the world.

E Com and for the first time during the pandemic continued cash displacement is without question going to continue.

Speaker 1: Continued cash displacement is, without question, going to continue. There's just simply more ways to pay, which is going to drive volume.

Just simply more ways to pay which is going to drive volume.

Speaker 1: Geographic expansion for us is another area where we're going to get sustained growth over time.

Geographic expansion for us.

The other area, where we're going to get sustained growth over time, and then I would say continuing to penetrate both in new flows and the opportunities that we have with.

Speaker 1: And then I think continuing to penetrate both in new flows and the opportunities that we have with Visa Direct, B2B Connect, and other areas within B2B, plus our ability as we capture more transactions to be able to sell our value-added services. So I think there's a good number of levers that we can push that provide terrific growth for us going forward.

Visa direct BTB connect in other areas within B to B, plus our ability as we.

We capture more transactions to be able to sell our value added services. So I think there is a good number of levers that we can push they provide terrific growth for us going forward in terms of your second question I'll, let <unk> weigh in as well.

Speaker 1: In terms of your second question, I'll let Vassad weigh in as well.

Speaker 1: Look, we, besides, you know, talked about our updated planning assumption on cross-border where we think we're going to be about 10 points better than our original planning assumption, and you know, certainly that is going to be helpful for us.

Look.

<unk>.

Talked about our updated planning assumption on cross border, where we think we're going to be about 10 points better than our original.

Planning assumption and certainly that is going to be helpful for us.

Speaker 1: As we look ahead, we're going to continue to, I think, be very balanced in our thinking. We're conscious about making sure that our level of investment

As we look ahead, we're going to continue to I think be very balanced in our thinking we are conscious about making sure that.

Our level.

Level of investment is.

Speaker 1: is at the appropriate levels against the right initiatives to make sure that we are managing the business and being able to fund growth initiatives into the future. But we're also conscious of making sure that we're

Appropriate levels against the right initiatives to make sure that we are managing the business and being able to fund growth initiatives into the future, but we're also conscious of making sure that we're careful about our expense expenses.

Speaker 1: careful about our expenses as we go forward as well.

As we go forward as well down.

Yes.

Speaker 2: Yeah, I mean, going back to your question about, you know, shareholders and returning cash to shareholders, we did step up our dividend.

Back to your question about.

Shareholders and returning cash to shareholders, we did step up our dividend.

Speaker 2: It's $1.50 per quarter now, we did that last quarter. And then, as you saw, we accelerated our stock buyback.

It's $1 50 per quarter now.

Did that last quarter.

And then as you saw we accelerated our stock buybacks our.

Speaker 2: You know, our stock buyback is programmatic, but when we see opportunities, we step it up and clearly our cash flows are better. We felt there was an opportunity and we step up, stepped up our buyback.

Stock buyback is programmatic, but when we see opportunities we step it up until your cash flows are better.

There was an opportunity in the step up stepped up our buybacks.

Speaker 2: As I said, I mean, our first priority is investing in our core, you know, core business. There's plenty of opportunity here for growth.

As Al said I mean, our first priority is investing in our core core business, there's plenty of opportunity here for growth.

Speaker 2: Second would be acquisitions that enhance our capabilities.

Second would be acquisitions that enhance our capabilities.

Speaker 2: like CurrencyCloud and hopefully soon, you know, we close on Tink.

Currency cloud and hopefully soon.

We close on zinc.

Speaker 2: And then, of course, we've always been returning cash to shareholders, most of our free cash flow in the form of dividends and buybacks.

And then of course, we've always been.

Returning cash to shareholders most of our free cash flow in the form of dividends and buybacks.

Thanks, guys.

Uh huh.

Our next question comes from Reena Kumar from UBS. Your line is open.

Speaker 3: This question comes from Raina Kumar from UBS, your line is open.

Speaker 5: Good afternoon, Al and Vishal. Thanks for taking my question. So as you both highlighted, your debit volume remains very strong. Can you discuss how much of that strength is coming from Visa Direct and how sustainable that growth is in 2022, of course excluding the second quarter comp issue with the government stimulus? Thank you.

Good afternoon, Alan Thanks for taking my question. So as you both highlighted your debit volume remains very strong can you discuss how much of that strength is coming from these interactions how sustainable backlog 22 of course, excluding the second quarter comp issue with the government.

Yes.

Speaker 6: Rain, it's a couple of points that it's been consistently that through the entire run of the of the pandemic.

Right now, it's a couple of points.

<unk> been consistently that.

True.

The entire run of the pandemic.

Got it thank you.

Our next question comes from Hershey Silhouette from Bernstein. Your line is open.

Speaker 7: Good afternoon. Thank you for taking my question. I want to ask about inflation. Vasant, can you remind us, how does inflation impact you? You obviously get benefits and purchase volumes, but how does it impact ticket sizes, conceivable behavior, in your view? And can you also talk about the cost and personnel expense aspect of it? Thank you.

Good afternoon. Thank you for taking my question.

I wanted to ask about inflation.

Can you remind us how does inflation impact to you obviously get benefits purchase volumes, but how does it impact ticket sizes and people's behavior and Yoki and can you also talk about the cost of personnel expense.

Thank you.

Speaker 2: Sure. In terms of inflation as it relates to our revenues, as you know, our service fees, cross-border, etc., are denominated primarily in basis points on ticket size. So to the extent that there's inflation driving up, you know, ticket size, clearly it's beneficial to us. When it comes to transactions processing, our fees are generally tied to number of transactions.

Sure.

In terms of.

Inflation as it relates to our revenues as you know our service fees cross border etcetera denominated primarily in basis points on ticket size. So to the extent that there is inflation driving up.

Ticket size clearly, it's beneficial to us when it comes to transactions processing fees are generally tried to number of transactions.

Speaker 2: Right now, of course, the size of the basket has gone up. Some of it is because of inflation. Some of it is because it's just gone up through the pandemic.

Right now of course, the size of the basket has gone up some of it is because of inflation. Some of it is because it's just gone up through the pandemic.

Speaker 2: Some of it has to do with the fact that some of the smaller transactions you got in a normal world, like people going and buying themselves lunch at work or a cup of coffee, we're losing some of those transit. And so that causes ticket size on a mixed basis to go up, which will recover, and that will be good for our transactions business. And in general, when people are ordering in through e-commerce, basket sizes have tended to go up.

Some of it has to do with the fact that some of those smaller transactions you got in a normal world like people going and buying themselves lunch at work or a cup of coffee, we're losing some of those transit and so that causes ticket size on a mixed basis to go up which will recover and that will be good for our transactions business and in general and people.

In our ordering in.

Through ecommerce basket sizes have tended to go up so the basket size increase we see now is partially inflation, partially at some elements like the ones I just went through so net net I mean, we're a beneficiary of inflation.

Speaker 2: So the basket size increase we see now is partially inflation, partially it's some elements like the ones I just went through. So net-net, I mean, we're a beneficiary of inflation.

Speaker 2: And in terms of wage inflation, you know, generally speaking, I mean, we expect some, you know, everybody's seeing it But overall, I mean, it's it's it's reasonable at this point and we'll update you You know as time goes by if you know, if it's if it's more than we expected. I'm sure you have things to add

And in terms of wage inflation.

Speaking I mean, we expect some.

Everybody is seeing it.

But overall I mean, it's it's it's reasonable at this point and we'll update you as time goes by.

If it's more than we expected.

I'm sure you have things to add.

Speaker 1: No, I think it was a very complete answer, Vasanti. The only other factor that you didn't mention relative to ticket sizes is something I said in answering, I think, Darren's question, that as the affluent segment, which is the segment whose spending went down the most.

No I think it's very complete answer of SRT. The only other factor that you didn't mention relative to ticket sizes is something.

Said in.

Answering I think Darren question that as the affluent segment, which is the segment that.

Who's spending went down the most during the pandemic comes back in and obviously they tend to have higher ticket sizes as well so.

Speaker 1: during the pandemic comes back in, obviously, they tend to have higher ticket sizes as well. So there's a number of factors that drive ticket sizes. Actually getting to precision on causality and what the different weighting of those different factors are is virtually impossible.

There's a number of factors that drive ticket sizes actually getting to precision on causality and what what the different weighting of those different factors are is virtually impossible.

Okay. Thank you very much.

Our next question comes from John J stock Ronnie from K VW. Your line is open.

Speaker 3: I'm Sanjay Sakharani from KBW, your line is open.

Speaker 8: Thanks. So, Al, you talked about the many reasons in your opening that you expect the growth to be a significant tailwind with many of the partners and products that you cited. It's interesting because many of the doubters sort of speak to that as

Thanks.

Al you talked about the many reasons in your opening that you expect the growth to be a significant tailwind.

With many of the partners and products that you sided it's interesting because many of the doubters sort of speak to that as the.

Speaker 8: uh... the reason to be concerned about the outlook i'm just curious what you think they're missing and i just had a follow-up purpose on in terms of the updated cross-border

The reasons to be concerned about the outlook I'm just curious what you think they're missing and I just had a follow up for <unk> in terms of the updated cross border guidance does that assume that theres, a gradual improvement after February or that.

Speaker 8: guidance, does that assume that there's a gradual improvement after February or that that people go back to traveling like you saw in November and December ? Thanks.

Let people go back to traveling like you saw in November and December .

Speaker 1: Sanjay, I'd say a couple of things. One is that.

Sanjay I would say a couple of things.

Is that.

Speaker 1: Much of the innovation that we have seen is coming in ways to pass.

Much of the innovation that we have seen is coming in ways to pay.

Speaker 1: And we're a network that is agnostic to...

<unk>.

We're a network that's.

Agnostic too.

Speaker 1: the different ways people want to pay. We're truly a global open network that is willing to embrace.

The different ways people want to pay we are truly a global open network that is willing to embrace.

Speaker 1: fintechs and bigger players who want to introduce new ways for consumers to pay. We're not going to decide who's a winner or a loser. I'm not here to predict how big PNPL will get or crypto will get. I don't know. But I think that our job is to lean in and...

Fintech and bigger players, who want to introduce new ways for consumers to pay.

We're not going to decide who is a winner or loser.

Not here to predict how big Pnp al will get or crypto will get I don't know, but I think that our job is to lean in and support them and give them a chance to have their case.

Speaker 1: and give them a chance to have their capabilities or their ways to pay run on our network. Ultimately, the consumer will decide who wins and loses based

Capabilities are there ways to pay run on our network ultimately the consumer will decide.

Wins and loses based on the.

Speaker 1: the value that they believe that they're seeing as well as the user experience. I also think that the

The value that.

They believe that they are seeing as well as the user experience.

Also think that.

The pack.

Speaker 1: Back to the matter is, if you look out over time, open networks win over closed networks.

Back to the matter is if you look out over time.

<unk> networks.

Network, when Overclothes networks and.

Speaker 1: And, you know, these is a truly open global network with incredible reach and scale. And we what ends up happening in any kind of closed situation is that after the initial excitement and initial pop.

<unk> is a truly open global network with incredible reach and scale and.

What ends up happening in any kind of closed situation is that.

After the initial excitement and initial pop people run into a wall, where it gets much more difficult too.

Speaker 1: people run into a wall where it gets much more difficult to scale their businesses. And when somebody comes in and does

To scale their businesses and when somebody comes in it does business with us where we can make our $80 million are really closer to 100 million merchants available to them and help bring scale instantly.

Speaker 1: business with us where we can make our 80 million or really closer to 100 million merchants available to them and help bring scale instantly and prevent people from having to, for instance, go merchant by merchant in order to scale their business, we could do it much more quickly and much more efficiently for them. So I think that this kind of distinction between

And prevent people from having to for instance go merchant by merchant in order to.

Scale their business.

We can do it much more quickly and much more efficiently for them. So I think that this kind of distinction.

Tween.

<unk>.

Speaker 1: how to pay and a network like ours that is enabling multiple ways to pay is a distinction I think that people haven't fully appreciated.

How to pay and a network like ours that is an enabling multiple ways to pay is a distinction I think that people haven't fully appreciated.

Yeah going back to your second question on cross border.

Speaker 2: Going back to your second question on cross-border, I think what's become evident from multiple data points over the last six to nine months is that when borders open, it's like a switch turning on. The reaction is almost immediate. There's massive pent-up demand, and consumers are quick to act.

I think what's become evident from multiple.

Data points over the last six to nine months is that when borders opened its like a switch turning on the reaction is almost immediate.

With pent up demand and consumers are quick to act.

Speaker 2: And what we saw in October and November was really the world opening up ex-China.

And what we saw in October and November was.

Really the world opening up ex China.

Speaker 2: And if it hadn't been for Omicron, that trend was quite extraordinary. Between September and November , we saw a very steep increase in cross-border travel, driven by the opening of the U.S. border, the opening up of most borders in Europe . And what we started to see in October was many Asian countries, which have been the most restrictive, excluding China, of course.

And if it hadn't been for omicron that trend was quite extraordinary.

Between September and November we saw a steep increase.

And cross border travel.

Driven by.

The opening of the U S model.

Opening of most models in Europe , and what we're starting to see in October It was many Asian countries, which have been the most restrictive excluding China of course.

Speaker 2: either open up or announce a timetable for opening up.

Either open up or announce a timetable for opening up.

Speaker 2: So, that tells you that opening borders, which is something that is hard to predict because governments control it, can have a sizable and immediate impact. In terms of your question as to what is our assumption…

So that tells you that.

Opening borders, which is something that is hard to predict because governments control. It can have a sizable and immediate impact in terms of your question as to what is our assumption.

Speaker 2: You know, our assumption is for steady improvement through the year.

Our assumption is for steady improvement through the year.

Speaker 2: But we know it won't be steady. I mean, there will be periods when borders open and we could see some sharp improvements. And there may be occasional periods where if there is another variant, there may be some, you know, flattening out, just as we saw in January . But the bottom line is, it is very clear that when borders are open, things will move very fast to normalize. Thank you.

But we know it won't be steady I mean, there will be periods. When borders are open and we could see some sharp improvements and there may be occasional periods, where if there is another variant there may be some.

Flattening out just as we saw in January .

But the bottom line is it is very clear that when borders are open.

<unk> will move very fast to normalize.

Thank you.

Our next question comes from Ken to Husky from Autonomous Research. Your line is open.

Speaker 9: Hi, good evening, Alan Bassan. Thanks for taking the question. I want to follow up on the cross border business. I mean, some really solid results there and I'm just curious to get your thoughts. Can you talk about whether this business gets back to pre-COVID trend growth or do you expect the cross border business to get back to pre-COVID trend levels, meaning does cross border revenue and volume eventually catch up to where it would have been had COVID not happened?

Hi, Good evening, Alan Thanks for taking the question I wanted to follow up on the cross border business I mean, some really solid results there and I'm just curious to get your thoughts can you can you talk about whether this business get back to pre COVID-19 trend growth or do you expect the cross border business to get.

Back to pre Covid trends levels, meaning those cross border revenue and volume eventually catch up to where it would have been had COVID-19 not happened.

Speaker 2: Well, I think the short answer is we fully expect to get back to pre-COVID trend levels, meaning whatever the trend line was, we will get back to that trend line.

Well I think I think the short answer is we fully expect to get back to pre COVID-19 trend levels, meaning whatever the trend line was we will get back to that trend line.

Speaker 2: And, at least initially, the mix will be a little different because the part of the business that is growing well above trend is the cross-border e-commerce business.

And at least initially the mix will be a little different because the the part of the business that is growing well above trend is the cross border E Commerce business.

Speaker 2: The part of the business that right now is below the trend line is the travel business.

The part of the business that right now is below trend below the trend line is the travel business.

Speaker 2: The e-commerce business cross-border is clearly one that we think can sustain about-trend growth rates relative to pre-COVID.

The E Commerce business Cross border is clearly one that we think can sustain above trend growth rates relative to pre COVID-19 .

Speaker 2: And if the travel business returns only to the pre-COVID growth rates, which we see no reason why it wouldn't.

And if the travel business returns only to the pre COVID-19 growth rates, which we see no reason why it wouldn't so let's assume it grows about pre COVID-19 growth rates get to the trend line and then begins to grow at pre Covid trend rates. We see no reason why that isn't the case there is a profitability because of the e-commerce business that the Cros.

Speaker 10: So let's assume it grows about pre-COVID growth rates, gets to the trend line, and then begins to grow at pre-COVID trend rates. We see no reason why that isn't the case. There is a possibility because of the e-commerce business that the cross-border business in total can grow faster than pre-COVID growth rates after it gets back to the pre-COVID trend line. I assume that is sort of what you were asking. Yeah, that's exactly right. Thanks a lot for that.

The business in total can grow faster.

Than pre Covid growth rates after it gets back to the pre Covid trend line.

I assume that is sort of what you were asking.

Yes.

Exactly right. Thanks, a lot for that I appreciate that.

Our next question comes from Lisa Ellis from Moffett Nathanson Your line is open.

Speaker 11: Hi, good afternoon. Thanks for taking my question. I had a couple on strategic questions related to the visa acceptance cloud announcement. First, is this open to all types of card payments or is it visa only and then second, how are you monetizing these acceptance cloud. And then the last one is, how should we think about

Hi, Good afternoon. Thanks for taking my question I had a couple on strategic questions related to the visa acceptance cloud.

Announcements.

Alright.

Open to all types of card payment or is it the only and then second how are you monetizing these acceptance cloud and then the last one is how should we think about.

Speaker 11: the interplay between the Visa Acceptance Cloud and your ecosystem of acquirers and payment facilitators, given that many of them have their own solutions in the POS space. I mean, is this, are they embracing it, or is it potentially competitive with their solution? Thank you.

The interplay between the visa acceptance cloud and your ecosystem up acquires and payment facilitators given that many of them have their own solutions in the space.

I mean, I think embracing it or is it potentially competitive with escalation. Thank you.

Speaker 1: Well, Lisa, first of all, it's early days with this. Our approach on this is to not charge for it, because we think it's.

Well Lisa first of all.

It's early days with this.

Our our approach on this is to add not charge for it.

Because we think it's the.

Speaker 1: extremely valuable for the ecosystem to expand acceptance and that's really the driving strategic force for us here is to drive acceptance.

Extremely valuable for the ecosystem to expand acceptance and Thats really the driving strategic force for US here is to drive acceptance and certainly my expectation is that once we can.

Speaker 1: And certainly, my expectation is that once we can get the transaction on our network, we'll have more opportunity to sell things like value-added services over time. But despite the fact that our network has 100 million.

Get the transaction on our network, we will have more opportunity to sell things like value added services over time, but despite the fact that our network has the 100 million merchant locations. There is still a.

Speaker 1: a merchant location, there is still a long tail.

A long tail of.

Speaker 1: of merchants around the world that are not accepting, and it's important that we do everything we can to bolster the acceptance footprint that we have around the world.

Merchants around the world that are not accepting it.

It is important that we do everything we can to.

Bolster the.

The acceptance.

Footprint that we have around the world.

Okay.

Our next question comes from Jason Kupferberg from Bank of America. Your line is open.

Speaker 3: comes from Jason Kupferberg from Bank of America. Your line is open.

Speaker 12: Hey, guys. Thanks for taking the question. Just wanted to take your temperature a bit on the global regulatory landscape. Does it feel more or less risky than, say, where we were pre-pandemic? I mean, just given

Hey, guys. Thanks for taking the question just wanted to take your temperature a bit on the global regulatory landscape does it feel more or less risky than say, where we were pre pandemic I mean, just given the political climate in the U S. There's still the merchant litigation in Brooklyn, the Fed's proposing some changes to the Durbin Amendment.

Speaker 12: political climate in the U.S. There's still the merchant litigation in Brooklyn. The Fed's proposing some changes to the Durbin Amendment. There were some recent reports out of the U.K. from the payment system regulator there. So just wanted to see how you're thinking about that overall or, you know, any any areas of risk we should be potentially mindful of. Thank you.

There were some recent reports out of the UK from the payment system regulator. There. So just wanted to see how youre thinking about that overall.

Areas of risk, we should be potentially mindful of thank you.

Speaker 1: You know, Jason, for as long as I've been involved in payments, there's always been regulatory issues and discussions that take place around the world. So, you know, it's really part of being in the business. I do not think there has been any material change in the environment in the last quarter or, for that matter, in the last year.

Jason.

As long as I've been involved in payments.

Theres always been.

Regulatory.

Issues and discussions.

That take place around the world.

It's really part of being in the business I do not think there has been any material change in the environment.

Last quarter or for that matter.

In the last year.

Speaker 1: I do think that the pandemic has helped governments recognize a couple of things, though. One is the incredible importance of digitization, because at a time when people

I do think that the pandemic has helped.

Bob.

Governments recognize a couple of things one is the incredible importance of Digitization.

At a time when people.

Speaker 1: around the world were locked down, they were able to continue to order food and order items delivered to their house because of the digital payment ecosystem that is reliable and secure around the world. I also think that during this time, governments realized that

Around the world were locked down.

They were able to continue to.

Order food and order items delivered to their house because of.

Digital.

The digital payment.

Ecosystem that is reliable and secure.

Around the World I also think that during this time governments realize that.

Speaker 1: they should become more digital. And we, during this period, helped a number of governments with the issuance of stimulus money or in some cases,

They should become more digital and.

We do.

During this period helped.

A number of governments with the issuance of stimulus money.

Or.

Some cases.

Speaker 1: There was money to recognize first responders and healthcare workers and those kinds of things.

There was money to recognize first responders and health care workers and those kinds of things. So I think there is there is more discussions going on with governments related to.

Speaker 1: So I think there's more discussions going on with government.

Speaker 1: related to digital payments and we're helping them more. I'd also say that the subject of central bank digital

Two digital payments and we're helping them more I'd also say that.

Subject of Central Bank digital currencies.

Speaker 1: opens up and gives us an opportunity to talk to central bankers who in many cases are seeking our counsel.

<unk> up it gives us an opportunity to talk to central bankers, who in many cases are seeking our council as to what they should potentially being able to do and I think thats a very good thing because it allows us to have inevitable avenues to potentially talk about other things that they might be contemplating from a regulatory point of.

Speaker 1: as to what they should potentially be able to do. And I think that's a very good thing, because it allows us to have avenues to potentially talk about other things that they might be contemplating from a regulatory.

Speaker 1: point of view. So I guess in summary, in some, I'd say.

So I guess in summary, and some I would say.

Speaker 13: Regulatory attention is nothing new. There hasn't been any material change and we continue to engage thoughtfully and frequently around the world with regulators. Okay, thanks for that.

Regulatory attention is nothing new.

There hasnt been any material change and we continue to engage.

Thoughtfully and frequently around the world with regulators.

Okay. Thanks for that.

Our next question comes from Tien Tsin Huang from Jpmorgan. Your line is open.

Speaker 14: Hey, thanks. Good to connect with you all. Just on the strong mid-20s revenue growth this quarter, I know that was nicely ahead of the high teens you talked about last quarter that you expected. Was it primarily cross-border that drove the upside or surprise? I'm just curious if there's any other call-outs that you would point to because I know we've fielded a lot of cross-border questions. And then just quickly on rebates.

Hey, Thanks, good to connect with you all just on the strong mid <unk> revenue growth. This quarter I know that was nicely ahead of.

High teens, you talked about last.

Last quarter that you expected was it primarily cross border that.

What drove the upside or surprise I'm just curious if there's any other color that you would point to because I know we feel there's a lot of cross border questions and then just quickly on rebates and.

Speaker 14: and incentives, I guess, the outlook, 50 bps better than prior guidance, is that also primarily the result of cross-border and the other impacts from pricing, et cetera? Thank you.

In incentives I guess the outlook 50 bps better than prior guidance is that also primarily the result of cross border and the other impac.

Impacts from pricing etcetera. Thank you.

Speaker 2: Yeah, you're right, Injun. I mean, the cross-border outperformance in the first quarter was primarily cross-border, but we also had value-added services performing quite a bit better than we expected. So, strong value-added services was also a contributor. So, those would be the two main drivers. As you know, when payments volumes outperform, we book the revenue with a lag.

Yes.

Tien Tsin I mean, the cross border outperformance in the first quarter was primarily cross border, but we also have value added services performing quite a bit better than we expected. So strong value added services was also were also a contributor so those would be the.

So the two the two main drivers as you know when service.

And then payments volumes outperform we booked the revenue when the lab.

Speaker 2: There was outperformance on payments volumes too, but, you know, that doesn't show up in the quarter. It certainly wasn't anywhere on the order of magnitude as our cross-border outperformance, but there was definitely, you know, there would have been higher service revenues had there been no lag. The other part of your question, the other part of the question was?

There was outperformance on inventory <unk>, two but that doesn't show up in the quarter.

It certainly wasn't anywhere on the order of magnitude as our cross border outperformance, but there was there was definitely there would have been higher service revenues had there been no lag.

The other part of your question.

The other part of the question was revision incentives.

Speaker 2: Oh yeah, rebates and incentives. Yes, we have been saying for a while that.

Rebates and incentives, yes, we had been saying for a while that those numbers were.

Speaker 2: those numbers were going up because of the mixed change away from cross-border. We thought coming into this quarter that we'd be somewhere in the region of 26% of the low end of the prior range we had. We were a whole point lower entirely because our mix improved because of cross-border and the reduction in the range for the year is also driven by the improvement in the mix since we now expect the cross-border business to be stronger than we had originally expected.

Going up because of the mix change away from cross border <unk>.

We talked coming into this quarter that we'd be somewhere in the region of 26% of the low end of the prior range, we had given a whole point lower entirely because mix improved because of cross border.

The reduction in the range for the year is also driven by the improvement in the mix since we now expect the cross border business to be stronger than we had originally expected.

Speaker 1: So it's all mixed. Glad to hear it. Thank you. Tenjin, the only thing I would add is that I think we also had a very strong holiday season.

So Tom mix glad to hear it thank you.

The only thing I would add is that I think.

We also had a very strong holiday.

Speaker 8: And as Faisal pointed out in his remarks or in answer to one of the questions, you know, we've seen this phenomenon of the holiday season stretching. And you know, it's no longer really Black Friday to Christmas Eve. It's really starting early in November , driven by the incredible increase in the adoption of e-commerce. Got it. Thank you both.

Period.

And as <unk> pointed out in his remarks or an answer to one of the questions.

We've seen this phenomenon of the holiday season stretching.

And it's no longer really black.

Black Friday to Christmas Eve, its really starting early in November driven by.

The incredible increase in the adoption of e-commerce .

Got it.

Thank you both.

Our next question comes from David <unk> from Evercore ISI. Your line is open.

Speaker 12: Thanks so much for taking my question. Looking at the upgrade in your cross-border travel forecast for the rest of this year, does any of that include reopening of China? And if it doesn't, what impact would a China reopening have on the impact of cross-border travel payments, obviously depending on timing?

Thanks, So much for taking my question I'm looking at the upgrade in your cross border travel forecast for the rest of this year does any of that include reopening of China and if it doesn't what impact would a China reopening have on the impact of.

On cross border travel payments, obviously, depending on timing.

Speaker 2: Yeah, I mean, you know, we don't sort of, no one corridor accounts for a big chunk of our volume. So, you know, China opening or not, you know, don't have to make specific assumptions on that. We certainly expect some opening in Asia. The big surprise in October before Omicron hit was Asia was opening up faster than we expected. So, for example, Thailand pretty much opened up, you know, all their resorts.

I mean, we don't sort of.

No one corridor accounts for a big chunk of our volume so.

China opening or not.

Don't have to make specific assumptions on that.

We certainly expect some opening in Asia, the big surprise in October before Omicron hit was Asia was opening up faster than we expected so far.

For example, Thailand pretty much opened up.

All the results now they did they did pause, but they've reopened them again now now that the <unk> seems to be parsing.

Speaker 2: Now they did pause, but they've reopened them again now, now that the Omicron wave seems to be passing. We saw, you know, Singapore announced a phased opening plan and I believe they're still on track to do that.

Sure.

Singapore announced a phased opening plan and I believe there is still on track to do that we even saw Indonesia, India.

Speaker 2: We even saw Indonesia, India, you know, ease restrictions so more kinds of people can travel to India and Indonesia without quarantines and things like that.

Ease restrictions so more kinds of people can travel to India without in Indonesia, without quarantines and things like that.

Speaker 2: China is completely shut, and it's hard to predict when it opens. So I would say on balance, we are not counting on a big recovery of Chinese business.

China is completely shut.

And it is hard to predict when it opens.

So I would say on balance we're not counting on.

The big recovery of the Chinese business.

Speaker 2: But otherwise, the big swing factor at this point is how quickly Asia opens and how restrictive is it after opening.

But otherwise the big the big swing factor at this point is how quickly Asia opens.

And how.

How restrictive is it after opening.

Understood. Thank you very much.

At this time for one more question.

Our final question comes from Dan Perlin from RBC capital market. Your line is open.

Speaker 3: question comes from Dan Perlin from RBC Capital Market. Your line is open.

Speaker 15: Thanks. And thanks for sneaking me in at the end here. The question I have is...

Thanks, and thanks for sneaking me in at the end here.

The question I have is.

Speaker 15: know, Al, you outlined a ton of great opportunities for, you know, for future growth. But in many instances, just like just so many, it's hard to hard to kind of pull these things together. So when you when you take a higher

You outlined a ton of great opportunities for them for future growth.

But in many instances just like there's so many it's hard to hard to kind of pull these things together so when you when.

When you take a higher kind of elevated look and you think about it from a secular growth versus cyclical mix of your revenues where does it sit today versus maybe in the prior pandemic and how should we be thinking about that mix shift.

Speaker 15: elevated look and you think about it from a secular growth versus cyclical mix of your revenues, where does it sit today, you know, versus maybe in the prior pandemic and how should we be thinking about that mixed shift to get you to that accelerated growth path?

To get you to that accelerated growth path. Thank you.

Speaker 2: Yeah, I can start and I'm sure Al will add. I mean, look, in the short run, the cyclical recovery is by far the biggest driver of the growth. Having said that, I mean, underneath the cyclical recovery, which is most acute right now in cross-border, you can see that other components of the business

Yes, I can start and I'm sure al will add.

In the short run the cyclical recovery is by far the biggest driver of the growth, having said that I mean underneath the cyclical recovery, which is most acute right now in cross border you can see that other components of the business.

Speaker 2: are not only stable, but also growing at an about-trend level. So if you look at our payments volumes, credit is in a recovery mode, but debit is very resilient even as credit recovers and is at a growth rate. If you do a CAGR over the time period pre-pandemic, it's a higher CAGR than it was pre-pandemic. The same is true for e-commerce growth.

Not only stable, but also growing at an above trend levels. So if you look at our payments volumes.

Credit is in recovery mode, but debit is very resilient, even as credit recovers and is at a at a growth rate. If you do a <unk>.

Dr.

The time period pre pandemic, it's a higher CAGR than it was.

Pre pandemic the same is true for e-commerce growth.

Speaker 2: You could say the same about value-added services and new floors.

You could say the same about of value added services.

New flows.

Speaker 2: So while the biggest driver of short-term growth being about trend is the recovery component, if you look below it, the underlying sustainable and secular growth trends are also about trend relative to where they were pre-pandemic.

While the biggest driver of short term growth being above trend is the recovery component. If you look below at the underlying sustainable and secular growth trends are also about trend relative to where they were pre pandemic.

Speaker 1: Yeah, I'd agree with all of that. And if we look at our growth by certain verticals, incredible growth in home improvement and food and drug, and a lot of that, I think, is because there's all kinds of new models. People are buying online and picking up or buying online and getting delivery. A lot of these new ways of shopping and paying is going to help us drive growth in new ways going forward.

Yes, I'd agree with all of that in.

If we look at our growth by certain verticals.

Incredible growth in home improvement in food and drug in and a lot of that I think its because theres all kinds of new models people are.

Buying online and picking up or buying online and getting delivery.

Lot of these new.

Ways of shopping and paying is going to help us drive growth in new ways going forward.

Great. Thank you.

Speaker 12: And with that, thank you all of you for joining us today. If you have additional questions, you can feel free to contact or email Jennifer or I, we're happy to help you and have a great evening. Thanks so much.

And with that.

Thank you all of you for joining US today, you have additional questions you can feel free to contact or email Jennifer I will happy to help you and have a great evening.

Thanks, so much.

Yeah.