Visa’s International Transaction Growth is recovering

Visa (NYSE: V) announced its 2021 Q3 financial results on July 27th. According to the announcement, net revenues, operating income and net income were up 27%, 36% and 9%, respectively (YoY, 3 months). Reviewing the results by segments, international transaction revenues grew significantly of up 54%. It was followed by data processing revenues of up 32% (YoY, 3 months).

In the past several quarters, growth in the international transaction segment had been stagnant since the onset of COVID-19 pandemic. However, the growing vaccination rate made borders be opened and number of tourists be increased. Accordingly,  the growth of international transaction revenues is now recovering.

In 2021 Q3, payment volume was up 39% (YoY, 3 months, nominal). Among them, cross-border volume was up 59% (YoY, 3 months, nominal). 

Visa announced agreements to acquire two companies. One is Tink, an open banking platform in Europe. And the other is Currencycloud, a global platform providing innovative foreign exchange solutions. Both transactions are subjected regulatory approvals as well as other customary closing conditions. 

We believe that Visa’s long-term growth would depend on ways how Visa builds next-generation payment platforms.

Important Notice 

  1. Watanabe & Brothers’ Investment is holding shares of Visa.
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