Visa presented its earnings report for the second quarter of the 2024 fiscal year during an Earnings Call. On the call, as per statements made by CEO Ryan McInerney, the financial giant aims to focus on new flows and value-added services. Additionally, he communicated the potential and opportunity they see in consumer payments by digitizing cash and enhancing their capabilities in e-commerce, and creating new solutions for their network of networks.
The Q2 2024 financial performance of Visa showed a 10% net revenue increase, amounting to $8.8 billion. This influx was in conjunction with an 8% year-over-year growth in payment volume, indicating operational strength. It's also important to note the rise in both US and international payment volumes. Further assertions made on the call mentioned that both GAAP and non-GAAP EPS saw an increase, with 12% and 20% lifts respectively. There were also mentions of growth in exclusive intra-Europe transactions and processed transactions.
The financial performance mentioned above is, as per Visa, attributed to their strategic focus on consumer payments, new flows, and value-added services. Visa claims to have expanded the Visa credentials and propelled e-commerce and tap-to-pay systems, which they believe has been instrumental in digitizing cash and check transactions. According to Visa, this strategy has led to the introduction of over 100 million credentials and the switch towards Visa debit credentials in various countries.
Further highlighting their commitment to digital payments, Visa has reportedly embarked on initiatives for commercial and money movement solutions under the 'new flows' category. The resulting growth of Visa Direct transactions and commercial volumes is a testament to these efforts. An increase in revenue from value-added services was also noted during the call, said to be driven by advising and issuing and acceptance solutions.
The company's response to consumer-oriented trends is evident in the growth of e-commerce and tap-to-pay transactions. In Q2 2024, 79% penetration was recorded in face-to-face transactions globally. As per the call, the e-commerce functionality has seen growth in the US, Canada, Brazil, Australia, and India, largely due to the adoption of tokenization, improving security and user experience.
Visa’s future plans were also discussed during the call, highlighting a continued focus on consumer payments, new flows, and value-added services, as well as extending the digitization of cash and check transactions and increasing the scope of e-commerce. Expanding Visa credentials, promoting tap-to-pay, investing in open banking solutions through the acquisition of Tink, and launching risk prevention tools such as Visa Deep Authorization were also mentioned as part of their strategy.
A review of Visa's Q2 2024 earnings call reveals a company that, according to its executives, appears to be well positioned within the payment industry. However, it is important to take these projections with measured optimism, keeping a keen eye on the evolving digital payments landscape.
PSFK Earnings Call: Visa