A：In Visa's fiscal second quarter 2026, net revenue was up significantly year over year to $2 billion, and Earnings Per Share (EPS) was up 20%. This marked the strongest revenue since 2022, and when excluding the impact of the post-micturition Visa Europe acquisition, it represented the strongest revenue since 2013. Payments volume grew 9% year over year in constant dollars to $3.7 trillion, and processed transactions grew 9% year over year to 66 billion.

A：Visa's strategy is expected to drive future growth in four important ways: 1) The company is winning in consumer payments, commercial payments, and money movement; 2) AI and AI commerce will expand the addressable market and accelerate Visa's long-term growth; 3) stablecoins and blockchain are seen as significant opportunities, with Visa establishing its role as a key interoperability layer; 4) value-added services are a key driver of growth, now representing 30% of net revenue and growing at a rate exceeding 25% in constant dollars.

A：Recent partnerships and initiatives that illustrate Visa's growth include a debit card for TikTok content creators in the UK, a collaboration with mobile payments app paypay in Japan to deploy new domestic and international solutions, and the expansion of Visa Direct, the largest money movement network globally, to more than 18 billion endpoints. Visa has also secured commercial card portfolios and signed new agreements with Westpac and Scotiabank for commercial card modernization and expanded issuance focused on affluent and small businesses.

A：Visa plans to leverage AI and AI commerce to expand its addressable market in four key ways: 1) accelerating the digitization of commerce globally; 2) creating significantly more transactions through intelligent purchase splitting; 3) digitizing B2B payments to remove friction and automate processes; and 4) increasing economic growth and driving spending and digital payments transactions. Visa is well-positioned for this due to its network security and trust, scale, transaction data, and standards that enable trusted payments in the digital and emerging AI ecosystem.

A：Visa's technology and commercial model adapt to new payments use cases like transit, vending, parking, subscriptions, and app purchases, as seen in investments enhancing its commercial and technical model for smaller ticket payments. These use cases are expected to further benefit from the growth anticipated in AIC commerce, with Visa cards providing value through ease of use, broad acceptance, integrated transaction flow for privacy, liquidity management, and user security protections.

A：In emerging markets, stablecoins are increasingly used as a store of value on-chain, primarily for US dollar-denominated accounts, although they are not generally accepted as a means of payment. Consumers are using stablecoin linked Visa cards to spend their stablecoins online and at local grocery stores, while businesses are using the cards to buy digital advertisements and supplies.

A：Visa has introduced settlement capabilities for B2B use cases, allowing transactions to be settled using stablecoins seven days a week, providing liquidity and efficiency benefits. Visa has added five new blockchains for settlement and has increased the annual rate of settlement growth substantially.

A：Visa is actively participating and innovating to ensure it plays an important role in emerging payments-focused blockchains. It is a design partner for Layer 1 blockchains, a validator on certain networks like tempo and canton, and is involved in developing protocols such as the Machine Payment Protocol card specification.

A：Value added services revenue for Visa grew 27% in the second quarter in constant dollars, driven by a strong link to the network business and global transaction data which is enhanced with AI. The company is winning by offering a vast portfolio of solutions, trust, and continuous innovation.

A：AI has enhanced Visa's value added services, with a new large transaction model showing a potential for up to a 5x increase in fraud value capture. AI-enabled features have been integrated across Visa's solution suite, leading to rapid client adoption, particularly in dispute resolution and other services.

A：Recent acquisitions and partnerships contributing to Visa's growth include Pismo, which expanded into new countries, and the agreement for Wells Fargo to migrate to Visa's core accounts as part of its banking modernization. Additionally, the acquisition of Prisma and New Pay is expected to facilitate the deployment of advanced technologies and support growth in both carded and non-card business.

A：The conflict in the Middle East is closely being watched by Visa, with the impact on the business being discussed in detail by Chris. The primary concern is the safety of the team and clients. Financially, the conflict resulted in a step-down of about 2.5 points in payments volume growth in constant dollars from Q1 in the Asia Pacific region.

A：Visa's second quarter was marked by strong revenue and profit growth, with global payment volume up 9%, excluding Europe. Net revenue grew 17% year over year, with better-than-expected performance across several metrics. Earnings per share (EPS) increased 20% year over year in nominal and constant dollars. The company's resilience, strategy, innovation, and Visa as a service stack are expected to drive growth well into the future.

A：The Olympics and FIFA were cited as significant opportunities that contributed to revenue growth. The company completed activations for multiple clients in the region related to a music tour in Asia Pacific for a popular k-pop group, resulting in increased payments, volume growth, and card issuance, which drove revenue for clients and Visa, as well as direct base revenue.

A：The company bought back $7.9 billion in stock in the reported quarter, which was the highest quarterly buyback in Visa's history, signifying its capital allocation strategy and belief in the long-term value of the company. Additionally, the company distributed $1.3 billion in dividends to shareholders.

A：The constant dollar growth in US payments volume was up 9%, with credit up 10% and debit up 8%. Excluding transactions within Europe, total volume grew 9% year over year, with e-commerce up 14% and travel up 5%. The decrease in travel growth was attributed to the impact of the Middle East conflict and Ramadan timing.

A：The company has increased its full-year guidance on a non-GAAP basis to expect low double-digit to low teens net revenue growth, up from prior assumptions. The guidance incorporates strong year-to-date performance and current assumptions on drivers, incentives, volatility, and the impact of expected higher value-added services.

A：The key assumptions for revenue growth include the continuation of broad consumer spend stability from a macro perspective, the impact of the Middle East conflict which introduces near-term uncertainty, expected improvements in US and Latin American inbound travel due to FIFA, the lapping impact of low US inbound growth from last year, continued growth in cross-border commerce, and no material changes in pricing assumptions. In terms of incentives, the company is expecting higher volatility which will be addressed in the second half of the year.

A：The expected tax rate in the third quarter is around 18.5%, which implies adjusted EPS growth in the low teens, revised up from the prior outlook. The range for the tax rate is between 18% and 18.5%, with the potential for it to be closer to the low end of that range.

A：For the third quarter, the company expects net revenue growth in the low double digits, operating expense growth in the low teens, and EPS growth in the mid to high single digits. This guidance is on an adjusted basis and includes the impact of Prisma and new pay.

A：The company firmly believes in the future growth potential of Visa, driven by strong net revenue growth, higher growth in commercial and money movement solutions, value-added services, consistent consumer payments growth, and industry-leading margins. The company is executing against its strategy to capture these opportunities, evidenced by the financial results being delivered.

A：The expected benefits of using authenticated tokens for transactions include a reduction in fraud, enhanced protection of the ecosystem, more data on transactions for both issuers and merchants, and data that can be used in dispute processes.

A：The company has positioned itself as a hyperscale bridge layer between infrastructure like stablecoins and blockchain, and real-world solutions and applications. It acts as a Visa-like service stack engaging with all levels of the stablecoin stack to deliver bridge solutions with similar economics to its current products.

A：The enhanced data provided by programs like CEDP and DCAP can lead to reduced total cost of acceptance for merchants and increased trust in transactions. This data can help in running more efficient dispute processes, better risk programs, making better authorization decisions, and combating fraud.

A：The robust growth in the network asset and marketing services offerings is attributed to the company's strategy, investments in product solutions, sales force, and new ways of running the company to drive performance. Vas business units have built leadership, product roadmaps, and deployed AI-driven products across the value services portfolio, leading to outperformance and executing the strategy successfully.

A：The company has been actively engaging with governments, especially in Europe, due to the growing desire for countries to control their infrastructure. It emphasizes its long-standing approach of operating with local teams, infrastructure, and partners to navigate regulatory and market-specific requirements. In Europe, the company highlights its strong business presence, growing card issuance, and the value that the Visa network, brand, and trust bring to buyers and sellers.

A：Europe has a wide base of domestic digital payment wallets with good uptake, especially in account to account transactions and more so in person to person space. The introduction of digital euro adds to the competition in Europe, which is expected to increase further with more initiatives like Pepsi, Epi, and Wiro.

A：The World Cup is driving strong demand for Visa's fraud products, which is a signal of an environment where fraud is a top concern for CEOs of clients worldwide. This increased demand and focus on fraud prevention are contributing to the business performance.

A：There is an increased demand for Visa's products and services because fraud is now a top-three or four concern for clients, which was not the case several years ago. The company is viewed as the most trusted provider for these services and has introduced innovative products like Visa Lumina that improve value capture and meet client needs.

A：Visa expects accelerated growth in marketing services due to major events like the Olympics and FIFA, but this does not overshadow the growth across all portfolios, especially in Q2. Network products are among the drivers of outperformance and are expected to continue contributing to the strength and durability of the business.

A：The profitability and margin growth for Visa's marketing services are tied to a profitable business with incremental revenue and profits. The company is focused on driving volumes and spend back to Visa, which creates a positive flywheel effect, and is optimistic about the growth potential as it continues to invest and be disciplined with expenses.

A：Cross-border business remains strong even with some challenges, such as the impact of Ramadan timing in the Middle East. While there is a lingering impact in the Middle East due to prior trends, this is offset by strength in other regions, leading to continued expectations for healthy and strong growth in the cross-border and overall payments volumes.

A：The market should not recalibrate its multi-year view on the growth potential of the Vas and CMS businesses as the company is performing well and executing on growth strategies. Despite quarter-to-quarter variability, the underlying strength of the business is evident in the recent performance and the company remains focused on achieving long-term growth aspirations.

A：The monetization strategy for Pismo revolves around its role in helping large financial institutions modernize their platforms, often involving a migration to the cloud, and addressing the need for cloud-native scalable processing stacks for expansion into emerging markets. Potential targets include large financial institutions that are preparing for platform modernization.

A：Pismo is being utilized by financial institutions as part of their platform modernization strategy and is particularly beneficial for issuers looking to expand geographically into emerging markets. As a cloud-native, modular API-driven stack, Pism is well-suited for these migrations and is considered the best platform for processing issuance.