8-KRegulation FD

VISA INC. 8-K Report, Regulation FD Disclosure (Mar 3, 2023)

Filed March 3, 2023For Securities:V

Summary

Visa Inc. (V) filed an 8-K on March 3, 2023, providing preliminary volume and transaction data for January and February 2023. The report highlights continued year-over-year growth in key metrics, including U.S. payments volume, processed transactions, and cross-border volume, even after adjusting for the impact of exiting Russia. Notably, cross-border volume, especially excluding intra-Europe transactions, shows strong recovery and exceeds 2019 levels, indicating a positive trend in international travel and spending. January's figures benefited from lapping the Omicron variant's impact in the prior year, while February demonstrated sustained momentum. Investors can find encouraging signs in the overall robustness of Visa's payment network, with double-digit growth in processed transactions and payments volume. The recovery in cross-border activity, particularly compared to pre-pandemic (2019) levels, is a significant positive indicator for global economic reopening and consumer spending abroad. While the report is preliminary and subject to change, the data presented suggests Visa is well-positioned to capitalize on recovering international travel and continued digital payment adoption.

Key Highlights

  • 1Visa reported year-over-year growth in U.S. payments volume of 13% for January and 11% for February 2023.
  • 2Global processed transactions increased by 14% in January and 12% in February year-over-year.
  • 3Cross-border volume, excluding intra-Europe transactions, significantly exceeded 2019 levels, reaching 148% in February.
  • 4Cross-border volume, total, was 152% of 2019 levels in February, indicating a strong recovery in international spending.
  • 5January 2023 volumes benefited from lapping the impact of the Omicron variant in January 2022.
  • 6Card-not-present volume, a key indicator for e-commerce, showed robust growth, up 12% year-over-year in February.
  • 7All reported data excludes Russia-related volumes and transactions starting from April 2022.

Frequently Asked Questions

Visa announced in March 2022 that it suspended operations in Russia. Consequently, Russia-related volume and transaction data are excluded from Visa's results from April 2022 through February 2023. The data presented in this 8-K reflects this exclusion.

The significant increase in cross-border volume, especially exceeding 2019 levels (e.g., 148% excluding intra-Europe in February), indicates a strong recovery in international travel and spending. This is a positive sign for global economic activity and Visa's ability to facilitate cross-border commerce.

January 2023 experienced a 13% year-over-year increase in U.S. payments volume and a 14% increase in processed transactions. February showed continued momentum with 11% year-over-year growth in U.S. payments volume and 12% in processed transactions. January's figures benefited from lapping the impact of the Omicron variant in the prior year, while February demonstrates sustained growth.

'Card not present' volume, which primarily relates to online and e-commerce transactions, grew 12% year-over-year in February. This indicates continued strength and growth in digital commerce, a key area for Visa's business.