Visa Inc.

of Investor Relations, Ms. Como, you may begin.

Thank you. Good afternoon, everyone, and welcome to Visa's Fiscal Second Quarter 2025 Earnings Call. Joining us today are Ryan McInerney, Visa's Chief Executive Officer, and Chris Suh, Visa's Chief Financial Officer. This call is being webcast on the Investor Relations section of our website at investor.visa.com. A replay will be archived on our site for 30 days. A slide deck containing financial and statistical highlights has been posted on our IR website. Let me also remind you that this presentation includes forward-looking statements. These statements are not guarantees of future performance, and our actual results could differ materially as the results of many factors. Additional information concerning those factors is available in our most recent annual report, on Form 10-K and any subsequent reports on Forms 10-Q and 8-K, which you can find on the SEC's website and the Investor Relations section of our website. Our comments today regarding our financial results will reflect revenue on a GAAP basis and all of the results on a non-GAAP nominal basis unless otherwise noted. The related gap measures and reconciliation are available in today's earnings release and related materials available on our IR website. And with that, let me turn the call over to Ryan.

Thanks, Jennifer. Visa is one of the world's best businesses with strong growth and leading profitability powered by a world-class brand, innovative technology, an unparalleled network, and global scale. This quarter, we saw the strength of our business model with $9.6 billion in net revenue up 9% year over year and EPS up 10%. Our key business drivers were strong, even with the lapping of leap day from last year and consumer spending remained resilient in an uncertain and dynamic environment. In constant dollars, overall payments volume grew 8% year over year. U.S. payments volume grew 6% and international payments volume grew 9%. Cross-border volume excluded in intra-Europe rose 13% in constant dollars and process transactions grew 9% year over year. Our strategy across consumer payments, commercial and money movement solutions, and value-added services continues to resonate with our clients and we remain focused on serving our clients through our innovation and product development. I will start with quarterly highlights and then make a few comments on the current environment. In consumer payments, we continue to execute the fundamentals, expanding credentials and acceptance and driving user engagement in order to grow both carded and non-carded volumes. Total credentials grew 7% with generally consistent growth across our regions. We added 1 billion tokens since last quarter to total 13.7 billion. And now nearly 50% of our e-commerce transactions globally are tokenized. We also crossed 1 billion tokens in Latin America and a half a billion in Semia. And we continue to make progress displacing cash in key markets. For example, India, Mexico, and Brazil each added more than 1 million merchant locations in the last year. as we have driven greater acceptance, including with smaller merchants. We recently signed an agreement with Effecti, one of the biggest cash networks in Colombia with over 30 million users. Effecti will launch 4.5 million consumer debit cards and build acceptance with their cash agents. We also convert closed-loop to open-loop opportunities. For example, I'll highlight two transit deals in Latin America. One in Argentina with Banco de la Nación to launch an open-loop SUBE Visa card for use on public transportation, and two in Chile with Metropago to also launch an open-loop Visa card and add acceptance locations at transit stops. As we mentioned at Investor Day, What gives us confidence in our ability to grow consumer payments are our products and our solutions. They are enabling us to succeed in important high value consumer payments use cases, innovations such as tap to everything, tokens, multi-currency cards, flex credentials, account to account solutions, and our differentiated cardholder benefits platforms. I'll note some progress this quarter. Our efforts in tap to everything continued, driving cash digitization and habituation. Tap to phone added nearly 2 million transacting device terminals since last quarter, with growth primarily driven by Latin America, the U.S., and Europe. Tap to pay penetration is now at 76% globally, with the U.S. passing 60% for the first time. Penetration at U.S. drug stores, retailers, and quick service restaurants is now above 60% as well. Tap to add card continued to gain traction, and with the majority of fraud being eliminated as compared to manual entry, it's not surprising that we now have nearly 150 issuers participating globally in more than 35 countries and territories. Tap2P2P is a Visa product that leverages tokenization for enhanced security, Visa's Tap Kernel and SDK technology for seamless contactless data transmission between devices, and the convenience of Visa Direct's real-time money movement for funds transfers. We are soon launching our Tap2P2P products in the U.S. with Samsung, Samsung Wallet, will introduce this innovative P2P payments feature that will allow users to quickly send money to friends or family by just tapping a phone to a debit card or another phone, a strategy focused on enabling cross-platform functionality across mobile wallets. Another development is in our stablecoin offerings. We believe two important capabilities are interoperability and programmability. we have continued to expand our interoperability, including with our first seven-day-a-week stablecoin settlement, recently surpassing $200 million in cumulative stablecoin settlement volume. On programmability, we also developed the Visa tokenized asset platform to help enable banks to issue and leverage stablecoins for new types of programmable finance. Our first pilot partner BBBA plans to launch a stablecoin later this year on the Ethereum blockchain. In our focus to attract and retain the affluent and cross-border traveler, we continue to evolve our Infinite product and are excited about the launch of the Scotiabank Passport Visa Infinite Privilege Card, offering elite travel benefits for Canadians. The card provides travel rewards insurance and exclusive perks moving to commercial and money movement solutions as we drive further penetration of these opportunities we have seen strong results in the second quarter with commercial volume up six percent in constant dollars visa direct transactions up 28 percent and cms revenue up 13 year-over-year in constant dollars In Visa Commercial Solutions this quarter, we made progress on our strategy as we deepened our relationships with a number of existing clients. To capture the accounts receivable and accounts payable opportunity, we are utilizing product innovations such as embedded finance solutions to meet payers where they manage their business to drive adoption of cards. We are pleased that Lloyd's has signed a deal with Talia to issue and embed Visa Virtual Cards in the SAP ERP and procure-to-pay workflows of their customers. Our vertical-specific strategies serve the needs of small, middle market, and large businesses. In that light, we are supporting Itaú in their Card-as-a-Service platform, which offers credit and debit card issuance, product lifecycle management, and digital accounts to businesses across agribusiness, real estate, auto, and retailers. In the B2B travel vertical, we continue to see strong demand for innovative payment solutions to transact in multiple currencies while enhancing payment security, reconciliation, and operational efficiency. We expanded our agreement with LeonLeon Global to launch a B2B travel solution in Hong Kong. LeonLeon Global will also be utilizing Visa Direct's multi-currency capabilities to support end-to-end collections and payouts. Continuing with Visa Direct, this quarter we signed an important deal with Jack Henry to offer Visa Direct, through their digital applications, to facilitate rapid transfers among bank accounts and enable their community and regional financial institution clients to offer Visa Direct to their consumer account holders and SMBs. In the cross-border space, Checkout.com is the first acquirer in the UAE to launch Visa Direct's push-to-card solution, enhancing real-time money transfer capabilities for both cross-border and and domestic transactions. And in the U.S., we expanded our agreement with Tabapay, a money movement platform serving more than 6,500 fintechs and enterprises. Visa Direct will now be enabling push to account and wallet in addition to push to card. These are all examples of our strategic focus to grow our domestic and cross-border business and expand with our existing customers for Visa Direct, the largest money movement platform in the world by transactions, volumes, and endpoints. In Value Added Services, we continued to deepen our relationships with our existing customers and also focused on attracting new customers with some of our recently acquired assets. Value Added Services revenue grew 22% in constant dollars powered by strong growth across all portfolios. I'll share a few areas of success in the execution of our strategy. In issuing solutions, PISMO brings a holistic offering with credit, debit, prepaid and commercial issuer processing, and core bank processing. We have a strong pipeline and we are well on our way to enter five new countries across four regions this year. Some recent deals to note include first in Latin America with Neki in Colombia and Banco de la Nacion in Argentina and in Asia Pacific with T2P in Thailand and Zenith Forex in India. Also in issuing solutions, we continue to grow our card benefits business. In Europe, Raiffeisen Bank International in Austria recently launched the TravelSentive travel platform, leveraging our solutions as well as added Visa's Priority Pass benefits to customers. In acceptance solutions, we recently announced two new product offerings. The first is a completely new version of Authorize.net, launching in the US next quarter and additional countries next year. It features a streamlined user interface AI capabilities with an AI agent, ANET, improved dashboards for day-to-day management and support for in-person card readers and tap-to-phone. It will help businesses analyze data, summarize insights, and adapt to rapidly changing customer trends. The second is the new unified checkout experience, available in the U.S. and in pilot stage in additional markets in Q4. As new ways to pay continue to emerge, merchants want to integrate once to accept all payment types to decrease the likelihood of lost sales at the point of checkout. Unified checkout can be launched in a few hours with a deploy-ready payment acceptance code. It is designed to deliver strong e-commerce conversion rates with an intuitive checkout experience, orchestrating over 25 card and alternative payment options. Because Unified Checkout is part of the Visa Acceptance Solutions platform, customers also have access to fraud management, 3D secure authentication, and tokenization management. We also continue to grow our client relationships in Acceptance Solutions this quarter. For example, we have now become the payment service provider of choice for sporting goods retailer Decathlon, who has more than 2,000 stores nearly 80 countries decathlon will be using our gateway and decision manager capabilities for their e-commerce business in risk and identity solutions since the closing of our acquisition of feature space we have been actively pursuing deals and have signed over 20 clients globally we also now provide an enhanced holistic fraud protection solution from feature space called the Adaptive Real-Time Individual Change Identification or ERIC Risk Hub. This solution utilizes machine learning and AI solutions to enable clients to build more accurate risk profiles and more confidently detect and block fraudulent transactions, ultimately helping to increase approvals and stop bad actors in real time. In advisory and other services, Our open banking platform, powered by Tink, provides payment initiation and account information services to sellers and payment providers, or PSPs, across Europe and the United States. In Germany, Tink and Audion are working with ReCharge and Vodafone to provide their customers the option to pay by bank when checking out. Tink has reached a milestone of over 10,000 merchants choosing Tink's pay-by-bank capability via our more than 10 European PSP partnerships. Across our VAS portfolio, our innovations are designed to address specific challenges in the payments ecosystem and to provide secure, efficient, and scalable solutions for businesses of all sizes. At Investor Day, I spoke about the evolution of our Visa as a Service stack. The foundation of our stack is our global connectivity and the infrastructure that Visa is built on. Our network, our network of networks, and access to our credentials and acceptance. Then we have our services architecture, which contains the specific capabilities that we think of as the building blocks for everything that we do, like risk, settlement, and more. Using these services, we create client solutions, We are taking these componentized capabilities and investing in and enhancing them to create new features and capabilities to offer them to a much broader array of customers and partners. And we strive to make it easier than ever for our partners and clients to access these solutions. I encourage all of you to tune in tomorrow to Visa's 2025 Product Wrap, where we will share how we continue to evolve the Visa as a Service SPAC to further our product development and lead in AI. You can watch live on our website at 10 a.m. Pacific time. Before I hand over to Chris, I'll share some thoughts on our business performance and the current environment. Throughout our history, we have evolved our network and strategy to deliver the best innovation, serve our clients, and pioneer the future of payments. We saw the result of these efforts this quarter with our strong financial performance. Halfway through our fiscal year, consumer spending has been resilient and strong, but there's much uncertainty. Focusing on the US, in Q2 and through April 21st, we have not seen any signs of overall consumer spending weakening. While spending growth differs among consumer spend bands, with the most affluent growing the fastest, all spend bands remain resilient and consistent with past quarters. Within spend categories, there are some select areas, such as in travel with airlines and lodging, where growth has decelerated, but overall discretionary and non-discretionary spend remains strong. Outside the U.S., we see similar stable trends. Within cross-border, volume growth was in line with Q4 2024 levels. We have seen some impacts from currency weakness and travel to specific countries, but the overall growth was above the pre-COVID trend. To wrap up, while we are certainly not immune to the macroeconomic impacts, our incredibly diverse business model has proven to be resilient in the face of a variety of environments, most recently in Q2. And we see this resilience playing out in our financial outlook, which Chris will cover in a moment. For the rest of the year and beyond, what I our leadership team, and our more than 31,600 employees are focused on is serving our clients and capturing the enormous opportunities ahead. We focus on what we can control and stand ready to make thoughtful adjustments when necessary. I am confident that our business model, strategy, and employees will continue to keep Visa operating from a position of strength well into the future. And with that, I'll turn it over to Chris to review the financial results, discuss what we have seen so far in April, and provide our expectations for the rest of the year.