Fintech

Visa Inc. (V) Citi’s 2022 Global FinTech Conference (Transcript)

Visa Inc. (NYSE:V) Citi’s 2022 Global FinTech Conference Call November 15, 2022 2:00 PM ET

Company Participants

Ryan McInerney – President

Conference Call Participants

Ashwin Shirvaikar – Citi

Ashwin Shirvaikar

Okay, cool. Let’s get started here. Good afternoon, everyone. And as we kick off the next session, I am Ashwin Shirvaikar, Citi’s Global Head of FinTech Research. It’s my pleasure to welcome the next company, Visa. And from Visa, I’d like to welcome Ryan McInerney, who is the President. Ryan, thank you for being here.

Ryan McInerney

Great to be here. Great to see everybody.

Question-and-Answer Session

Q – Ashwin Shirvaikar

Yes, absolutely. Ryan, I was going to start with this kind of going through each of your three pillars kind of dig into each of them. Start with consumer payments, which is still two-thirds of your revenues. And the question really, the fundamental question is how will Visa continue to grow consumer payments revenue, which is very pertinent to longer-term investors. And one way we’re trying to think of it is developed markets versus emerging markets and sort of growth in developed markets is more about usage, traction, velocity, things like that and EM is more of a penetration opportunity. So that’s how we’re thinking of it. Is that the appropriate way to think of it as we sort of think of the growth algorithm?

Ryan McInerney

I think there is an enormous opportunity, enormous runway in our consumer payments franchise globally. Maybe the relative emphasis of engagement versus expansion of the network is along the lines of what you said, but we see expansion opportunity on all those levers all around the world. I mean, we’ve now got about 4 billion credentials around the world, 4 billion cards. Historically, that number had grown kind of in the 5% annual growth rate. More recently in several quarters has been growing at 10%. I think in last quarter, it’s been growing at 13%. So we’ve been accelerating credentials growth all around the world. That’s true in developed markets, too. In the U.S., I think our debit credentials have been growing double digits. In Europe, they have been growing 6% or 7%, which is twice the historical rate. We also – I think we have close to 5 billion tokens now, 4.9, I think as of last quarter, billion tokens. So we’re expanding credentials all around the world, developed markets, developing markets, we’re growing acceptance. About 10 years ago, we had about 25 million sellers on our network around the world. As we sit here today, if you count all the work that payment facilitators have done and the squares and the stripes and the like, we have 100 million sellers. We have quadrupled the size of the seller side of our network, which just drives more opportunity for more transactions.

I actually got here a little early today, so I was walking around just kind of the bottom of Central Park out there. There’s a coffee vendor, they take Visa cards. There’s a guy selling like churros, he takes Visa cards. There’s another guy selling kebabs over by the horses over there, he takes Visa cards. I mean I went looking for sellers who didn’t take Visa cards and couldn’t find some. So we continue to grow the seller side of the ecosystem. And then to your point around engagement, that remains a huge opportunity. Tap to pay is a great example of kind of an accelerant of transactions, an accelerant of payments volume. In the U.S. now, more than a quarter of all face-to-face transactions are tapped, I think it’s 28%. All around the world, more than half of all the transactions now are tapped.

And if you put the U.S. to one side, we’re north of 70% around the world, 7 out of 10 Visa transactions being tapped. We know from our data that once you get a customer to start tapping as a way to pay, they make more transactions. They spend more on their Visa card. And there is a lot of those types of programs that we’re driving together with our partners. So the opportunity for consumer payments is enormous. It’s enormous in developed markets like the United States where we’re sitting today. It’s enormous in Africa. Africa is an enormous opportunity for us. We have – I think there is about 800 million people in Africa, about 500 million of them are yet to be banked. I like to think about them as yet to be banked as opposed to unbanked.

In the bigger markets like Nigeria and South Africa and Kenya, we’ve had offices there for decades, and we’ve been working to build those businesses. In more of the emerging markets like the Democratic Republic of Congo, more than 100 million people there. We just opened an office. Ethiopia, we just opened an office, 100 million people there. As soon as the U.S. relaxed their sanctions, we opened an office in Sudan, I think there is about 40 million people there, almost all of whom aren’t buying or selling with Visa cards today. So, it’s a great opportunity, developed, emerging kind of credentials acceptance engagement, it’s all upside.

Ashwin Shirvaikar

Right, right. And just to put a final point on that, in markets where ordinate payment mechanisms are sort of more prevalent and that does tend to happen, I think, more in outside the developed world? I guess the question is do the drivers of growth differ? And does it involve more work around partnerships with say, wallet providers or do you think that has played out as an avenue?

Ryan McInerney

Well, alternative payment methods are a reality in every market we do business at this point. I mean, again, here in the U.S., you’ve got Venmo, you’ve got Square Cash, you’ve got PayPal, you’ve got Zelle, you’ve got all types of alternative payment methods. And as you move around the world, you have Paytm in India, you have Line in Asia, you have Mercado Pago in South America and Ali and We and so on and so forth. We have – we’ve seen these wallets kind of develop in kind of relatively at this point, predictable ways. They start – they tend to start as closed ecosystems. No access to Visa either for issuance or acceptance as a lot of these companies around the world have grown and they’ve sought sources of revenue, which in this environment that we’re all in today, that fin-techs are in today is even more important than it’s ever been, not just revenue but profitability. We look for opportunities to both expand their business without having to continue to build out a closed ecosystem and they’re looking for opportunities to generate more revenue and earnings.

So we have leaned into these types of partners all around the world. We’ve made good progress with many of them, both issuing Visa credentials and turning some of these closed networks into acceptance points. I mentioned Paytm in India. Paytm started exactly that way. There’s a closed ecosystem. It only works within that ecosystem. Paytm is now an issuer of Visa Debit and Visa Credit cards in India. I think they’re going to surpass 15 million cards issued to their users at this point. They have also opened up what were previously closed sellers. They only accepted Paytm. Now they basically become an acquirer. I mean they’ve lit up, I don’t know, something like 0.5 million of their merchants to accept Visa cards, which helps them expand their value proposition to their users, helps them generate earnings and revenue for their business and ultimately grow and grow their flywheel.

And similar approaches we’ve taken. I mentioned LINE Pay. LINE Pay has got 8 million – 7 million or 8 million credentials they’ve issued. Ali and We, kind of some of the biggest closed networks have enabled Visa cards to push money into their wallets and WeChat launched a co-brand card with us. And even just here in the U.S., I mentioned Square Cash. Square Cash is a huge user of the Visa ecosystem, money in, money out, obviously, the Square debit card, which has proven to be a big generator of revenue and earnings for them. So the alternative payment mechanisms exist pretty much everywhere we do business at this point. We’ve leaned into them. I mentioned some of the on-ramps, off-ramps issuing acceptance. There’s a whole story around value-added services that we have success with as well.

Ashwin Shirvaikar

Yes. No, we will get to Ali in a bit. That’s a huge topic of discussion. We’re super interested. But it sounds like as you look at many of these opportunities, the path from close systems towards seeking growth and then becoming open systems and either you follow issuance path or a merchant acquiring path and then on to value-added services. That seems like something that, at this point, one can count on as repeatable?

Ryan McInerney

It’s something that we’ve had success and we’ve proven the ability to have success with it, kind of market after market around the world. And some markets are at different points in that evolution, but our country teams and our country managers and our account executives, we view all of these companies as partners and clients and opportunities. We’re in their offices all the time, talking to them about what we can do to help them, how we can advance their strategy, how we can create value for them. And so far, we’ve had some good success.

Ashwin Shirvaikar

Okay, okay. In terms of sort of network differentiation, right, is it – to what extent is it about rebates and incentives versus other factors?

Ryan McInerney

So when we compete against other networks, it’s – there is always a price game in any business, right? Price is always a factor in any B2B business. When I have the opportunity to sit in front of clients all around the world and talk about why they should choose Visa, which is a big part of what I have the opportunity to do, first, it always starts and finishes with the people. If you are making a decision on who you are going to partner with, you need to believe in the people that are going to serve you. I mentioned a moment ago, our country managers. If you’re going to choose Visa in Mexico or in Poland or in Australia, you want to know who is the team on the ground that’s going to help you. You want to know who the senior team is that’s going to support them, and you want to know their strategy and what they’re going to do to fight for you as a client. So these decisions, they often start and they often finish with the people and their belief in the people. The Visa brand is a huge differentiator. I have the opportunity and we have the opportunity to sit down with partners and clients and potential clients, and we show them the data. We show an independent research for agencies that we don’t hire that just ask consumers of these questions in general.

And almost always, in every country around the world, consumers and small businesses prefer Visa 2x or 3x the next most preferred network. And when we have the chance to talk to clients about this, I always say the same thing. I said, this is independent research, it’s looking at facts right there. The results are the same for affluent and less affluent, older and younger. Any segment that you want to look at it but I’d say, go do your own research, ask your customers, ask your members, ask them who they prefer. And almost always, it comes back with the same significant growth for the Visa brand versus any other competitor. And what that does is it drives performance. It drives higher acquisition. It drives higher spending, it drives higher engagement, and there too, we have a chance to sit down with clients and show them the work we do with whether it be the credit bureaus or other independent data sources to show them that Visa products outperform any other products from other competitors.

And then finally, it does come down to capabilities. And our value-added services suite helps us tremendously with clients. Here in the U.S., our debit processing platform, we think, is second to none as a huge differentiator. CyberSource has increasingly become a very important differentiator for our bank clients around the world who are looking to continue to compete in the acquiring business, but not have to continue to compete in this arms race of technology and cyber security and all these kind of investments that are required, data, risk scores, all of those capabilities matter a lot as well.

Ashwin Shirvaikar

Okay, okay. No, that’s very comprehensive. You mentioned value-added services, so let’s go here. And one thing I wanted to discuss was open banking and Tink. And just kind of broadly, if we can start with what is your open banking approach and then kind of roll in Tink and its capabilities and how that fits?

Ryan McInerney

Yes. We are thrilled to own Tink. It’s a fantastic platform. Coincidentally, I was just with several of our Tink team members who have flown over to spend some time with me today in New York. Back it up to the broadest part of your question, like we view open banking as a network opportunity. If you think about it, at its core, open banking is a network play. It’s about connectivity between on the one side, financial institutions, and on the other side, developers. And that is what we do. That’s what we’ve done for decades is kind of creating a significant number of parties of equal size and run an efficient, effective and secure network, and that’s how we see open banking. So that’s why we think it’s a natural opportunity for us. It’s certainly a space that our clients, whether they be issuers, acquirers, sellers, fin-techs or others, view someone like us as an ability to come in and provide a reliable, trusted solution.

So when we had the opportunity to buy Tink, we were thrilled with the opportunity, the leading platform, certainly in Europe and one of the leading ones around the world. The Tink team has done a great job building out connectivity. I think they are in 18 countries in Europe, if I recall, 14,000, 15,000 financial institutions. And we look forward to building out and expanding that capability around the world. Almost every client that I have a chance to meet as I travel around the world, they are looking for open banking solutions. They are looking for personal financial management capabilities for their clients that are looking for payment initiation capabilities in the account-to-account space. They are looking for risk scoring capabilities and algorithms that leverage their data plus the rest of the data available from other financial systems or players in an open banking driven market. So we’re very excited about the open banking opportunity in Europe, around the world and really excited to continue to invest and scale the Tink platform.

Ashwin Shirvaikar

Okay. Okay. Is it possible to sort of think of open banking, what might it mean in the context of the overall growth formula?

Ryan McInerney

Yes. I think it’s going to be a big accelerant. I think it’s a big opportunity. It’s an opportunity for us to continue to scale and build our value-added services portfolio. It’s also – I talked about it earlier as a network. It’s a network play as much as it is anything. So it becomes a platform for us to deliver more of our value-added services to our clients if we’re engaged with them as their partner in delivering open banking solutions, payment initiation solutions as well as our more traditional network solutions.

Ashwin Shirvaikar

Okay. Okay. And as we think beyond open banking, other value-add services that you would want investors to maybe focus on, maybe something that doesn’t get noticed as much but you’re super excited about?

Ryan McInerney

Well, I’ll just tell you how we – like internally, how we spend time and talk about our value-added services portfolio. And as you know, it’s a $6 billion revenue business for us, growing at 20% plus year-over-year growth. We are very excited about kind of our Issuer Solutions portfolio of value-added services. I mentioned DPS a moment ago. DPS, I think we just last year surpassed 2 trillion authorizations on the platform. And it is – when you think about issuer processing platforms in the U.S. and around the world, DPS has been a huge differentiator for us to help our clients, both our traditional clients on our traditional platform, but also our new cloud-based API-driven DPS Forward platform. You may have seen we recently converted Current, who’s a neobank here in the U.S. to the platform that shows that even fin-techs are voting with their feet and adopting that platform.

And then what DPS does is it allows us a platform to deliver more issuer value-added services to those that are on it. So that’s a really important area for us and focus. I mentioned CyberSource earlier. I think we just onboarded our 1 millionth merchant onto the CyberSource platform, one of the largest gateways on the planet. And that’s become a big differentiator, as I said earlier, for both our traditional banks who want to and need to kind of participate in the acquired ecosystem but don’t have the resources or the ability to continue to keep up with all the investments that are required, but also for us to engage directly with merchants and engage directly with sellers all over the planet.

If you go back 10 years ago, it was primarily a U.S.-based platform. Not at all today. We’re delivering and engaging directly with merchants all over the planet. And it is a chance for us to engage directly with those merchants, have a primary relationship, which is significant. Our risk services family of value-added services is a huge differentiator. Just given the big advantage that we have with data, given the size of our network, the number of transactions that we process, we’re able to provide better risk scoring algorithms, better data solutions for our clients. And then we also have our consulting and analytics business. We have more than 1,000 client-facing staff, helping clients and I think it was 80 countries around the world last year with engagements and driving new marketing programs, credit risk programs. We’ve got a crypto-as-a-service platform they are working on data analytics, segmentation all the different work that helps ultimately our clients grow better and deepens our relationship with them, and we talked a little bit about open banking as well.

Ashwin Shirvaikar

Yes. Yes. Do you – as you look at your portfolio of services, do you kind of consider it a relatively full portfolio? Are there things in there that are – I don’t want to say missing, but can be enhanced, can be improved on? And maybe the follow-up to that question is, can you walk us through sort of the build versus buy on that question, sort of the M&A philosophy.

Ryan McInerney

Sure. We feel great about the capabilities that we have. We’ve got great success with them, but we have a lot of opportunity. We have great product teams, great engineering teams that are working on in a deep and broad product pipeline in each of those five areas of value-added services that I mentioned. And regularly bringing those products and services to market here in the U.S. and around the world. When we think about the opportunity to build versus buy, it’s really a question of speed, capability and talent. Our preference is always when we’re able to build the products ourselves. And for most of the products and capabilities, both in VAS and the rest of the company, we’ve done that, and we will continue to do that.

But if we can get to market faster, if we can access capabilities that we otherwise couldn’t access or build as well, if we can access talent, we’re going to do that. So we think right now and especially over the next 6, 12, 18 months, there should be a lot of opportunities, as you might expect. We are spending a lot of time understanding a lot of the different companies around the planet that play in all the areas of our value-added services business and beyond. We do all types of work to get to know these companies around the planet, many of whom we have commercial relationships with, many of whom we might have made investments in. And so we’re familiar with the management team. We’re familiar with how they make money, how they go to market, those types of things. And we certainly look to be an opportunistic investor and acquirer of companies over the foreseeable future.

Ashwin Shirvaikar

Okay. Okay. Should we talk about new flows?

Ryan McInerney

Let’s do it.

Ashwin Shirvaikar

Awesome. So Visa’s B2B payment strategy. Let’s start there. How does it differ for domestic versus cross-border?

Ryan McInerney

Well, they are both opportunities, certainly. I guess we will talk a little bit about both of them. Maybe just frame it a little bit of saying, B2B is already a big business for us. It’s about $1.5 trillion of flows on our platform. It’s grown significantly over the last several years, and we expect it will continue to grow significantly. If you start on the cross-border side of things, there is really two sets of opportunities that we’ve been actively pursuing. I guess I’ll call it three sets of opportunities. The first is, and it’s the bread and butter, travel both corporate and small business around the world. That’s a big opportunity. It remains a big opportunity. Virtual is a huge capability in that business. The second is kind of the large dollar money movement cross-border business traditionally on SWIFT or via correspondent banks. We spent a lot of time laying the groundwork for a new network called B2B Connect. We’ve spent time with so many clients at this point around the world designing the product, designing the pricing, ensuring that it is a faster, cheaper, more transparent way to send large ticket cross-border payments, and we feel really good about the progress that we’re making, building out that network. And then finally, in terms of cross-border B2B, we’ve been building out a relatively big business in the disbursements business. So this is kind of a big B to small B, if you will. If you’re a ride-hailing company and you have drivers in India, we’ve created the ability for you to push those payouts, make it seamless, make it easy for those drivers to accept those payments on their Visa card in their account, in their wallet, whatever it is.

So that’s kind of some of the cross-border stuff. Domestically, the first thing I would say just domestically in many markets around the world, the commercial card product, the small business product, both credit and debit is still very underpenetrated. So we’re working with our country managers, our account executives, our account teams around the world to make sure that they are leaning in to their bank clients, helping them understand the power of these products for their small business and corporate clients. Outside of about 15 to 20 markets around the world, that business is very, very underpenetrated. It’s a huge domestic payments opportunity. We will continue to invest in that. We have done a lot of work through both partnerships and products, doing everything we can to build out the virtual card platform. Kind of domestically, we think there is a ton of runway for that product, not just in travel, but in health care, insurance and a lot of other verticals as well. So I mean, these are just some of the opportunities. But again, just for your audience and the investors really just to understand, we see an enormous amount of growth just in that continuing to scale the small business credit, debit and corporate card business like we have the consumer business in dozens and dozens and dozens of markets around the world.

Ashwin Shirvaikar

Right, right. And as you sort of think of virtual cards and so on, right, room to run versus the other monetization methods needed sort of – as a sort of not really a debate but a question, how are you thinking about…

Ryan McInerney

Tons of room to run, tons of room to run. Listen, think there is so many more segments to be added, so much opportunity to further deepen in the segments that we’re in and to be honest, so many opportunities to improve the product, the experience for the buyers and for suppliers. I think it’s a lot of opportunity for us.

Ashwin Shirvaikar

So even on purpose kind of said virtual cards because it’s one of the older ones. Is it not from…

Ryan McInerney

It is. But still, I think a ton of opportunity to continue to penetrate that space. And again, here in the U.S., but also around the world where it still remains a relatively nascent product in many markets.

Ashwin Shirvaikar

Right, right. You mentioned B2B Connect. Could you talk a little bit more about that in terms of just kind of usage and so on?

Ryan McInerney

Yes. Listen, when you’re building out a global network of 200 territories around the world, as we have been, it takes time. And that’s the phase development we’re in B2B tech, the base story of like kind of products in started by studying the space, understanding the pain points, where the money – cross-border, high-value money [indiscernible] significantly large opportunity…

Ashwin Shirvaikar

I think his mic has got…

Ryan McInerney

The hand-held mic?

Ashwin Shirvaikar

I think so.

Ryan McInerney

No worries. Can guys hear me in the back?

Ashwin Shirvaikar

Yes. Thank you.

Ryan McInerney

Yes, so we did the work. We studied the space. We identified the opportunity. We traveled around the world. We met with clients, we understand how incredibly dissatisfied they were with the opportunities that they had. And we designed and built a network from scratch that right now we’re building out. I think we’ve built out kind of connections now in 80 markets around the world or something like that. We have transactions now flowing on the network, but nothing near the size of VisaNet, of course, at this point in time. And B2B Connect becomes an important component of our network of network strategy where we’ve said we’re going to build new networks. We’ve got VisaNet. We’ve got Interlink. We’ve got B2B Connect. We have Visa Direct. Also partner with networks, whether they be real-time payment networks, ACH networks, other card networks and the combination of all of those networks delivered through single integration with our clients allows them to optimize money movement domestically and globally around the world, optimize speed, price transparency to deliver the best solution that they want for their partners.

Ashwin Shirvaikar

Okay. So, Visa Direct, right, it’s grown like a weed, but it still probably has a ton of opportunity. What are the top three use cases that you see today?

Ryan McInerney

I don’t know that I would say top three, are just the ones that come to mind that we are seeing some great success with that are newer, that your audience may not be as familiar with earned wage access, that’s been a great hit, right. The ability for an employee to be able to open up their employer’s app and just press Pay Me Today and have it to go right to their Visa Direct card. And it’s just like a magical experience. You sit in focus groups, you hear the end users talk about it. It does come across like magic. Remittances is a big area of focus for us. We think the global remittance market via the Visa Direct platform has an opportunity to be completely reinvented. Again, faster, cheaper, more transparent. We are having good success with that platform, both with the traditional remitters like Western Union, the more fintech remitters like Remitly. And they are all excited to put the Visa Direct platform to work. We are doing work in insurance payout disbursements. The gig economy of, as I mentioned earlier, drivers being able to get paid. Every day when they are done driving goes right on their Visa card, they can go to a restaurant and pay for dinner, those types of things. So, we just – our team, I am so proud of our team, they are spending time. They are out there. They are meeting with partners and potential clients trying to identify how can we help. And they come back it feels like every day or certainly every week with a new idea, a new use case that then our product teams and engineering teams build against and just that flywheel that we are seeing all around the world.

Ashwin Shirvaikar

I want to pull in a couple of acquisitions that you made. One is slightly older one, I think for maybe 3 years ago, if I am not mistaken, Earthport. And the other one is a newer one. Currency Cloud. So, as you sort of think of various aspects of cross-border, right, can you kind of talk to how these types of acquisitions help supplement the network and kind of build out what you are trying to build out there?

Ryan McInerney

Yes. Sure. Those two work together in many of the use cases, but let me just put it in the context of Visa Direct. Visa Direct started several years ago when we launched it as simply a push card to push card platform, which is significant. We had a number of Visa debit cards around the planet, but obviously, more limited than if you want to serve every customer on the planet Earth, which we want to do. Then we were able to expand Visa Direct to push to other cards. And then we bought Earthport. And Earthport was a bit of a watershed moment for the Visa Direct platform, where we added, I think the better part of about 2 billion accounts to the network or endpoints to the network that we weren’t able to previously reach with a debit card. And then I think it was a couple of weeks ago or maybe on earnings, we announced a partnership with Thunes, where we have now lit up a 1.5 billion endpoint opportunity via wallet. So, you put all that into context with Earthport, we are now able to go to a partner and say, we can deliver you a money movement network that reaches 7 billion endpoints all around the planet. We can reach many of those endpoints in real time. We can provide you via Currency Cloud with real-time FX conversion capabilities for any of the corridors that you want to deliver money. And that’s one example of how those capabilities come together. Currency Cloud also has a lot of utility beyond just cross-border money movement. It’s – and of a really important part of our go-to-market offering for our traditional card products as well. We can go to a partner via Currency Cloud. We can deliver them the capability to offer their cardholders, their users the ability to know in real time as they are standing at the point of sale via their bank app, what is exactly the FX rate they are going to get on that transaction. Gives them a lot of confidence, gives them a differentiated value proposition. That’s just – that’s an example of the capability that we are able to deliver with the Currency Cloud platform. So, really excited to have both those companies in the family.

Ashwin Shirvaikar

Okay. And when you think of sort of non-Visa Direct and some of this can be new flow and some of it, it can be in value-added services. But in terms of the non-Visa Direct account-to-account flows, how are you thinking about that?

Ryan McInerney

Yes. We are not just thinking about it. We are working aggressively and we are in this space today. Tink is one of the premier account-to-account money movement platforms in Europe right now. We just announced or recently announced that Tink is going to be powering audience pay by bank offering in many countries. So, we are actively engaged in account-to-account in Europe, which is certainly one of the leading geographies around the world. And as I mentioned earlier, we look forward to expanding that capability more broadly around the world. We are engaged in account-to-account in our value-added services platform. Token ID is a good example, providing non-card tokenization to RTP and ACH schemes around the world. I think you had someone from the Clearinghouse up here yesterday or today. Clearinghouse announced several months ago that they are going to be using Visa’s Token ID platform for their tokenization capability just as an example. We are having good success with Verifi providing disputes capabilities, YellowPepper providing directory services to RTP platforms around the world. I mentioned that we are engaged with many of the wallet players that are leading players in the A2A space around the world. And then as you mentioned, Visa Direct, I kind of think about Visa Direct as the largest, if not the largest, one of the largest account-to-account money movement platforms on the planet with, as I said earlier, 7 billion endpoints.

Ashwin Shirvaikar

Step back question as you look at various pillars and the new flows plus value-added services is kind of a third, 35%, somewhere there, of your revenues. Is there a steady state that you want to get to? I mean obviously, in the near-term, they are growing faster than consumer payments. But what’s the steady state for the pieces?

Ryan McInerney

We are just focused on growing the business and serving our clients. And as I said earlier, we think the consumer payments franchise has enormous opportunity as far as the eye can see. Value-added services and new flows, as you said, has been growing significantly faster than the consumer payments franchise. We think all three of these growth vectors provide tremendous runway, tremendous growth. We got great ideas, great people, great products, great go-to-market propositions all around the world and just working as hard as we can every day to serve our clients and deliver those to the market.

Ashwin Shirvaikar

Okay. If I can ask you to sort of give us your view on crypto. And obviously, these questions were written before FTX, but it doesn’t matter because it’s – I think what you do in that field is quite different in providing the on-ramps, off-ramps. Is your commitment to crypto for more longer term than any of the volatility you see?

Ryan McInerney

We have always viewed crypto as a very long-term play, both for Visa, but also for the ecosystem. We want to be helpful to our partners and our clients and our users to move money how they want to move money. And as you said, Visa credentials are an important on-ramp and off-ramp and we will continue to lean into that. We have been, I think the partner of choice for most exchanges around the world of issuing credentials to their users so that they have a simple, easy, frictionless way to spend money that they might have in terms of savings. And we also view stable coins as an opportunity. It’s something that we have been investing in on the Visa network. We have been piloting and also looking at expanding to using I think, first, USDC, and then potentially other stable coins as a way to actually transact and settle on our network. So, we got – we had a great crypto team at Visa. I think, many of the leading thinkers in the space, and they too are continuing to understand what clients need, understand what partners need, understand what users need, build great product. And we will continue to invest responsibly in the space with an eye to the very long-term.

Ashwin Shirvaikar

Okay. And my very last question. Given your position in the U.S. debit, right, how are you thinking of sort of the clarification that was issued recently from Washington with regards to Reg I?

Ryan McInerney

With Reg I, exactly that it was clarification. It was exactly in line with our expectations. As I think most of your audience knows, it just clarified that issuers need to enable two unaffiliated networks for card-not-present transactions. Many, if not most of our issuers had already done that. The ones that hadn’t are working to do that. I expect everybody will be in compliance by July 1st, and things will continue on from there.

Ashwin Shirvaikar

Awesome. Great discussion. Thank you very much.

Ryan McInerney

Yes. Anytime. It’s great to see your audience and I appreciate the opportunity.

Ashwin Shirvaikar

Absolutely. Thank you.

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