Why International Markets Will Change What Drives Visa’s Top Line Going Forward

September 28th, 2016 by Trefis Team
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Visa

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.

visa growth

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.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Visa
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