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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  3. Any opinions or statements expressed in this report are based on the author’s personal and subjective views, and are not the official views of the organization to which the author belongs.  In addition, although we have done our best efforts in making accurate assessments on the original financial statements, we cannot guarantee any complete accuracy of this report. We do not guarantee either that any future forecasts referred to in this report will certainly be realized. Investment in listed stocks, ETFs, etc. should be carried out under the responsibility of each investor, and even if the investor who read this report suffers a loss due to investment activities, Watanabe & Brothers’  Investment is not responsible for any liability.
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