10-KPeriod: FY2020

VISA INC. Annual Report, Year Ended Sep 30, 2020

Filed November 19, 2020For Securities:V

Summary

For the fiscal year ended September 29, 2020, Visa Inc. reported net revenues of $21.8 billion, a decrease of 5% compared to the prior year. This decline was primarily attributed to the global impact of the COVID-19 pandemic, which significantly affected payments volume, cross-border transactions, and processed transactions. Despite these challenges, Visa demonstrated resilience, highlighting accelerated shifts to e-commerce and contactless payments as key growth opportunities aligned with its strategy. The company's strategic focus remains on expanding consumer payments, developing new payment flows (such as B2B and P2P), and enhancing value-added services. Visa continued to invest in its technology and security infrastructure, brand, and talent to support its long-term growth objectives. The company also announced its definitive agreement to acquire Plaid Inc. for $5.3 billion, though this acquisition is subject to regulatory review and potential legal challenges.

Financial Highlights

47 data points
Beta

Revenue

$21.85B

Net Income

$10.87B

49.7% Net Margin

Total Assets

$80.92B

Cash & Equivalents

$16.29B

Free Cash Flow

$10.44B

Financial Statements
Beta
Revenue$21.85B
Operating Expenses$7.76B
Operating Income$14.08B
Net Income$10.87B

Key Highlights

  • 1Net revenues decreased by 5% to $21.8 billion in fiscal year 2020, primarily due to the impact of COVID-19 on transaction volumes.
  • 2COVID-19 accelerated the shift to e-commerce and contactless payments, creating opportunities for Visa.
  • 3Visa processed 141 billion transactions in fiscal year 2020, with a total payment volume of $11.3 trillion.
  • 4The company processed 204 billion payments and cash transactions with Visa's brand overall.
  • 5Visa made significant investments in acquisitions, notably agreeing to acquire Plaid for $5.3 billion, though this is subject to regulatory approval.
  • 6The company repurchased $8.1 billion of its class A common stock during fiscal year 2020 under its $9.5 billion repurchase program.
  • 7Visa continued to pay dividends, declaring a quarterly cash dividend of $0.32 per share.

Frequently Asked Questions

Visa's net revenues decreased by 5% to $21.8 billion in fiscal year 2020 compared to the prior year. This decline was primarily driven by the COVID-19 pandemic, which negatively impacted payment volumes, cross-border transactions (particularly travel spending), and the number of processed transactions.

Visa's primary growth levers are consumer payments (focusing on shifting cash transactions to digital forms), new flows (enabling digital payments for P2P, B2B, and G2C), and value-added services. The company also invests in its foundational elements: technology, security, brand, and talent.

Visa entered into a definitive agreement to acquire Plaid Inc. for $5.3 billion. However, the U.S. Department of Justice filed a complaint in November 2020 seeking to prevent the acquisition, alleging it would lessen competition. Visa intends to vigorously defend the lawsuit.

Visa repurchased $8.1 billion of its class A common stock during fiscal year 2020 under an authorized $9.5 billion repurchase program. Additionally, the company declared and paid $2.7 billion in dividends during fiscal year 2020, with a quarterly dividend of $0.32 per share declared for the subsequent quarter.