Why is Visa comparing its performance to fiscal 2019 instead of just year-over-year (2020)?

Visa is comparing its performance to fiscal 2019 because the significant impacts of COVID-19 in March 2020 made year-over-year growth rates (2021 vs. 2020) less reflective of the underlying business trends. Using 2019 as a baseline helps provide a clearer picture of current operational performance and recovery.

What does the strength in 'Card not present' volumes indicate?

The strong performance of 'Card not present' volumes, especially excluding travel, at 159% of 2019 levels, indicates a sustained shift towards online and remote transactions. This trend was accelerated by the pandemic and appears to be a lasting change in consumer purchasing behavior.

How is the recovery in cross-border travel looking?

While travel-related spend, particularly cross-border, is still below 2019 levels (at 45% of 2019 for May), it has shown consistent improvement over several months. This suggests a gradual but positive recovery in international travel spending, with total cross-border volume nearing pre-pandemic (2019) levels.

Are there any regional concerns highlighted in the filing?

Yes, the filing notes that international trends were mixed. Specifically, India continued to slow down, and several other Asian countries were impacted by new COVID-related restrictions. Conversely, Europe showed improvement in many countries due to the relaxing of restrictions.

V 8-K: Regulation FD — Jun 1, 2021

Summary

Visa Inc. filed an 8-K on June 1, 2021, providing an operational update for May 2021. The report highlights that Visa is continuing to monitor the impact of COVID-19 and is providing performance metrics relative to fiscal 2019 to better reflect underlying trends, as year-over-year growth rates were skewed by the significant impacts experienced in March 2020. Overall, operational metrics in May showed consistency or improvement compared to April, when measured against 2019 levels. Key takeaways include continued improvement in U.S. Credit payments volume relative to 2019, while Debit remained exceptionally strong. Card-not-present volumes, excluding travel, showed robust growth over 2019 levels, indicating a sustained shift in consumer behavior. International trends were mixed, with some Asian countries experiencing slowdowns due to COVID-related restrictions, while Europe saw improvements as restrictions eased. Cross-border volume, excluding intra-Europe transactions, also showed improvement, nearing 2019 levels, with total cross-border volume reaching 98% of 2019 levels. Processed transactions globally also exceeded 2019 levels, driven by increased activity in several regions, notably Europe.

Key Highlights

1U.S. Payments Volume in May 2021 was 132% of 2019 levels, a slight increase from April's 131%.
2Debit payments volume in the U.S. remained strong, consistently at 151% of 2019 levels in May.
3Card-not-present payments volume (excluding travel) was exceptionally strong at 159% of 2019 levels for May, indicating a persistent shift towards online spending.
4Travel-related spend, though still below 2019 levels (45% of 2019 for card present and not present cross-border), showed steady improvement, increasing approximately 30 points from January to May.
5Total cross-border volume in May reached 98% of 2019 levels, up from 91% in April, signaling a significant recovery in international transactions.
6Global processed transactions in May were 121% of 2019 levels, an increase from April's 117%, driven by higher volumes in several countries, especially in Europe.

VISA INC. 8-K Report, Regulation FD Disclosure (Jun 1, 2021)

Summary

Key Highlights

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