A：In Visa's fiscal first quarter, the key financial results were strong net revenue of $16 billion dollars, an increase in earnings per share (EPS) up 15%, and a 8% year-over-year growth in payments volume in constant dollars to nearly $4 trillion. Processed transactions grew by 9% year over year, totaling 69 billion.

A：Recent advancements in Visa's credential technologies include an 80% tap to pay penetration rate in the US and nearly 70% in transit, the launch of new digital wallet enablement for iOS wallets in 14 countries, and Vips mobile pay in the Nordics, and the pilot launch of a new Cash App Visa Debit Flex card that enables Afterpay as a feature for customers to pay over time.

A：Visa is enhancing its credentials to support multiple funding sources with the introduction of the Visa Flex credential, which allows for a variety of funding sources such as debit, credit, multi-currency accounts, rewards, and installments. This offering is available with about 20 million Visa Flex credentials and is expected to expand to more than 20 additional issuers in the year.

A：The significance of the Visa token in the ecosystem is that it is a digitally native payment credential designed for the unique characteristics and needs of digital commerce, with over 17.5 billion tokens globally. This makes it three times the number of physical cards and positions Visa in a strong competitive stance against cash, checks, and other legacy forms of digital payments.

A：The Visa intelligent commerce solution utilizes tokens and their configurability as the core underlying foundation for agentic payments. Partners in this initiative include over 100 partners across the commerce ecosystem, with over 30 actively building in the Visa sandbox. Notable partnerships include those with ramp streamlining corporate bill payments and with AWS making Visa intelligent commerce available on its marketplace.

A：Visa is contributing to the growth and regulation of stablecoins by expanding its capabilities to issue stablecoin cards in additional countries, enabling payments volume growth, and enhancing stablecoin settlement capabilities with USDC in the US. Visa's goal is to build a secure, seamless, and interoperable layer between stablecoins and traditional fiat payments. The company also offers a stablecoins advisory practice, works with blockchain initiatives like the Tempo Layer 1 Blockchain, and is piloting direct stablecoin payouts in the US.

A：Recent developments in Visa's issuer processing business include the acquisition of Pismo and the launch of Pismo ISS First commercial offerings in Chile with Banco Bice. Visa also entered into an agreement with finance now in New Zealand for Pismo's first fleet card offering, providing issuance, tokenization, and risk services.

A：Examples of Visa's risk and security solutions include the acquisition and enhancement of Feature Space for a holistic AI-driven fraud prevention platform, the introduction of Visa Account Attack Intelligence in the U.S. to prevent enumeration attacks, and the expansion of Visa Advanced Authorization and Visa Protect to more countries.

A：In the first quarter, Visa's net revenue grew by 15% year over year, with strong performance in value added services and constant dollar revenue growth across commercial and money movement solutions. Earnings per share (EPS) increased by 15% year over year, driven by net revenue growth and better than expected results.

A：Key components contributing to Visa's revenue growth in the first quarter were stronger value added services revenue, lower than expected client incentives, and stronger commercial and money movement solutions revenue. Revenue growth was also positively affected by increased data processing revenue due to pricing, strong value added services, and a higher cross-border transaction mix.

A：Consumer payment volume in the U.S. grew 7% year over year, with e-commerce growing faster than face-to-face spend. Total international payment volume was up 9% year over year, while cross-border volume excluding intra-European transactions grew 11% year over year. There was also strength in commercial volumes and improvement in U.S. inbound from Canada.

A：The updated guidance for fiscal year 2026, assuming a stable macroeconomic environment with consumer spending resilience, pricing stability, and no significant changes in the benefits of new pricing, projects a step-down in year-over-year growth in Q2 relative to Q1. Q3 is expected to have the highest year-over-year incentive growth rate, and the full year's growth is anticipated to remain relatively unchanged from the current lower volatility levels.

A：The step down from Q1 net revenue growth is primarily attributed to lower contribution from pricing, lower volatility, and higher incentive growth.

A：For Q2, adjusted net revenue growth is expected to be in the low double digits, and adjusted operating expense growth is expected to be in the mid-teens.

A：The Olympics and FIFA events are contributing to revenue growth and partnership building by providing sponsorship rights to clients and partners worldwide, enabling the design of bespoke programs to help clients grow their businesses, such as advertising campaigns and branded events.

A：The company's approach to capital return and share buybacks is programmatic and consistent, with opportunities being taken when the market underprices the stock. The company will continue to look for such opportunities.

A：The company's stance is that the proposed CCC Act is harmful and unnecessary. They engage with elected officials to educate them on the competitive environment and the well-functioning market, which does not require government intervention. The potential negative consequences include reduced access to credit, elimination of rewards, fewer credit card options, and weaker security protections, among others.

A：The better-than-expected growth in the commercial segment is attributed to the successful execution of the company's strategy, great products shipped by their teams, engagement with players worldwide, and success across three types of commercial opportunities discussed.

A：The three strategies for expanding business and middle market lending include converting more small business and medium business lending, scaling large in middle market card and payables, and delivering product innovation and network flexibility to help partners underpenetrated.

A：Recent client wins include the launch of the Chase Sapphire Reserve for business and the trip com Global virtual travel card issuing business. Idiosyncratic events that impacted international volume growth included promotional campaigns in Q4 and timing of tax payments in AP, which have now been normalized, showing relative stability across international payment volume.

A：The speaker is not directly answering the question about the sustainability of the Vas script growth but implies that the strong start to the year reflects momentum and execution against their strategy, which is expected to drive growth. However, specific factors from the quarter may not reoccur in a sustainable manner.

A：The speaker suggests that the increased expenses from stronger Vas revenue growth are tied to specific, one-time events (e.g., FIFA World Cup and Olympics) and are expected to be leveraged in the future through incremental revenue captured related to these events.

A：The flex credential is seen as a significant tool for Visa's growth, with potential to 'bend the growth curve.' It's still early in its development, but it has been well-received by clients and has the potential to impact growth positively over the next few years.

A：Investments in both DPS and Pismo have been made in terms of product and engineering resources, with great products being shipped and driving wins with traditional financial institutions and金融科技 companies. The momentum in the processing side is strong, with opportunities for modernizing tech stacks across the globe, and the company is continuing to ship great products and see upticks in sales, despite long sales cycles and big decisions involved.

A：The speaker indicates that the growth in stablecoin flows is ramping quickly and that it is not clear whether future growth will be related to settling consumer retail payments. However, stablecoins do present an opportunity, especially given the pressure on cross-border revenues from low effects while hedging and mix.

A：Product market fit for stablecoins has been achieved in areas around the world with high currency volatility or where it's hard to access US dollars. This includes countries with significant transaction volumes and regions that are underpenetrated in terms of stablecoin usage. Additionally, there is a strong product market fit in areas involving cross-border transactions, such as consumer-level remittances and B2B payments.

A：The use of stablecoins allows partners to achieve daily settlement even on non-business hours such as Saturdays and Sundays. This feature provides more liquidity by eliminating the need for holding collateral during weekends, thus offering faster settlement flows.

A：Product market fit for stablecoins in developed digital payment markets like the United States, the UK, or Europe is limited because consumers already have ample ways to make digital payments using their checking or savings accounts. The existing payment methods have become quite easy to use, which makes stablecoin payments less necessary in these markets.

A：The change in international transaction revenue commentary highlighted three factors: volatility, mix, and the impact of a growing but less profitable segment of the business. Specifically, the revenue volatility is due to the low currency volatility, mix is about the composition of yields across the business with different clients, products, and regions, and the impact of a fast-growing but lower-yield segment like Visa Direct cross-border transactions.

A：Pismo is off to a good start and making progress in terms of wins across both large and small banks. It has particularly excelled in assisting smaller players, such as FinTechs, with international expansion due to its cloud-native capabilities, which allow for broad global scaling.

A：The potential for Pismo over the next few years is substantial, especially in aiding financial technology companies expand globally. The cloud-native nature of Pismo enables rapid scaling across borders, benefiting both the FinTechs and Visa by helping the former grow and the latter by providing more opportunities for Visa credentials.

A：The growth in the number of tokens and the benefits of tokenization are changing conversations with various stakeholders. Tokenization is highlighted as a means to increase sales, reduce fraud rates, and improve user experiences, particularly in e-commerce. The focus is on showing the impact of tokenization through case studies with merchants and acquirers, especially regarding sales uplift and fraud reduction. There is also an emphasis on bringing tokenization to new markets and continuing the journey of engagement with stakeholders to realize the full potential of tokenized transactions.