Why International Markets Will Change What Drives Visa’s Top Line Going Forward
Visa (NYSE: V) has grown its revenue from $ 14.5 billion to $ 17.0 billion over the 2013 to 2015 period. Contributing to this growth has been increased revenue from transaction fees, which are fees charged for settling a transaction between a customer’s bank and a merchant’s bank. Also contributing have been revenue from assessment fees, which are small fees applied at a flat rate to the total monthly volume spent on credit cards and debit cards.
Going forward, we expect Visa’s revenue growth to accelerate from both its entry into China and from increasing e-commerce and payments via mobile phones. Smart phones make it easier to pay via credit or debit card as opposed to cash or internet banking. As a result, we expect revenue from transaction fees to take a back seat and most of the revenue growth to come from international fees and assessment fees, as more and more users are added to Visa’s payment network.
Have more questions about Visa? See the links below:
- How Much Did Visa’s Revenue & Gross Profit Grow In The Last Five Years?
- How Much Can Visa’s Revenue Grow In The Next Five Years?
- What Is Visa’s Fundamental Value Based On Expected 2016 Results?
- How Has Visa’s Revenue Composition Changed In The Last Five Years?
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