Visa FY 3Q15 Earnings Call Notes

We see very little change in a weak global environment

“Overall, our results were especially pleasing given that we continue to see very little change in the overall global economy, with a few exceptions. We are hopeful, but not counting on an improvement in the US economy, but we see very little improvement with the US consumer in our numbers thus far, if any. There are positive signs in employment and housing, and the accumulated savings from lower gas prices should help, but we’ll have to wait and see. Internationally, we see continued weakness in Brazil and Russia, but we see strength in southeastern Europe and parts of Asia-Pacific.”

Not much to add on China

“Let me make a couple of comments about China. I don’t have very much to add since we last talked about it last quarter, but I want to reiterate a couple of things. We continue to move forward with our work to enter the domestic Chinese payments market, and look forward to growing our investment within China.”

We partner with banks, retailers, governments and tech companies

“Our business model, as you all know, is about partnership with banks, retailers, governments, and technology companies. We believe our ability to help them grow will help accelerate broader economic growth within China, both in the cities as well as the rural areas. And we continue to view this as a significant and important opportunity, and one which is very long term in nature.”

Partnership with FireEye

“We announced a partnership with FireEye to bring the first of its kind cyber-security capabilities to the payments industry, and extend our combined expertise and intelligence to acquirers, merchants, and issuers of all size. The Visa and FireEye community threat intelligence system will bring together threat information from both companies, allowing merchants and Visa clients to easily access our leading knowledge of cyber-attack data to quickly detect and respond to the attacks.”

There is hope that going into next year, we’ll start to lap some of this weakness

“I think if the dollar starts to moderate, a big chunk of our business is somewhat depressed right now, which is the commerce into the US, and several corridors are soft, like Brazil, which was hurt in a couple of different ways, Russia, et cetera. So there is hope as we go into next year that with some of those things now lapping and the dollar hopefully stabilizing, that things could ramp up in terms of volume.”