Visa Inc. is looking outside the U.S. for growth and hopes to derive more than half of its revenues from international markets within the next five years, executives from the card company today told investors gathered in San Francisco for its annual Investor Day presentation.
Visa is on track to generate more than 50% of its revenues from outside the U.S. by roughly 2015, said Oliver Jenkyn, Visa global head of strategy and corporate development. “The natural crossover point is probably a little later than this, but we’re pulling it forward,” he said.
Among other international growth strategies, Visa plans to expand its merchant acquirer processing in select countries and to “actively explore” more joint ventures and other investments in companies in emerging markets, Jenkyn said.
Mobile payments also will be a crucial element in Visa’s global growth strategy, Elizabeth Buse, Visa group executive, international, told investors. “Mobile is a new access channel for existing payments,” she said.
Visa plans to take a leadership role in helping mobile-payments players to agree on global technical standards, and it will continue to invest in proprietary new mobile-payment technologies, Buse said. “We are trying to create an ecosystem for electronic payments in the mobile channel that expands the pie for everyone, and then we want to win on the basis of our differentiated products,” she said.
In a U.S. Securities and Exchange Commission filing today, Visa reported that its credit card payment volume in February increased 2% from the same month last year, while its debit card payment volume increased 20%. Moreover, February cross-border payment volume on a constant-dollar basis grew by 11%, and processed transactions increased 13% globally. Visa did not report the specific numbers.