Specialist
Former divisional leader at Visa Inc
Agenda
- Implications of new payment flows for Visa’s (NYSE: V) business, highlighting potential impact of the network of networks strategy
- Strategy assessment vs Mastercard (NYSE: MA) and push towards services on top of payment rails
- Business outlook amid the emergence of open banking, real-time payments, closed networks and more
- Threat of new networks such as Plaid also leveraging bank relationships
Questions
1.
What are your thoughts on Visa’s network of networks strategy? What’s the longer-term vision there? To what extent is the business addressing the threat from non-card payment providers by pursuing this strategy, while also adding to a more diverse set of revenue lines?
2.
How might the network of networks strategy impact Visa 3-5 or even 10 years out?
3.
Can you provide an example of where Visa has poorly integrated an acquisition? What tends to be the point of friction?
4.
What networks or transaction layers is Visa missing when it comes to completing the network of networks strategy?
5.
How difficult it is to link into all the various banks and ERP [enterprise resource planning] solutions? What is the friction point for B2B Connect without those integrations?
6.
How has Visa positioned itself for open banking? In what regions do you think it isn’t adequately focused? How much volume could the company lose in a worst case-scenario if it’s not adequately positioned in preparation for open banking?
7.
How do you think about Visa vs Mastercard’s very different strategies? How might they pan out longer term? Should we monitor what could go wrong around Visa’s shift to value-added services? Is it about whether the company can roll these products out and get them to market fast enough?
8.
What are your thoughts on FedNow as another interesting threat? How do you think Visa can compete with this instant clearing and settlement, at least domestically?
9.
How does the emergence of public and private real-time payment networks impact Visa’s ability to drive B2B payment growth?
10.
How is Visa advantaged vs peers in the technology stack itself, the B2B clients vs peers?
11.
How do you expect the landscape around emerging payment flows to evolve? Mastercard and Visa have spoken a lot about the growth opportunities. We’ve touched on B2B already, but there’s also G2C and C2C, which are much larger markets than a C2B.
12.
What is the go-to-market strategy for B2B Connect? What innovation initiatives does the company have on this side of the business?
13.
Visa’s management claims to be completely focused on building out the B2B Connect infrastructure, which requires signing on some key partners. How quickly do you think the company can execute on this, maybe to the point where transaction volumes increase significantly? What is the biggest remaining challenge for it around partnering with the banks and ERP systems to become the embedded solution?
14.
What growth trajectory do you expect from Visa Direct in the coming quarters or years? What could be the most significant growth driver for Visa Direct?
15.
Visa is unbundling many of its services to reach more clients, which is attached to its broader focus on value-added services. How do you expect those revenues to grow? I think it’s currently around 20% YoY. Could that accelerate significantly, given its broader strategy?
16.
How do you think about the significance of Cybersource as part of that value-added strategy? Do you consider it a material growth driver on the value-added side?
17.
There’s been a lot of consumer-facing innovation around the method of payment, through services such as NFC and Apple Pay. The means of payment is still the credit and debit network, however. Do you think that the networks have the positioning and innovation to be insulated from those credit and debit rails being disrupted?
18.
In China a lot of payments are essentially P2P transfers between consumers and merchants. Do you think that could eventually occur in the US or is that more unique to China?
19.
When we think about Visa insulating itself from the impact of reducing card transactions, should we think about the Visa Cloud Token Framework and what the company is doing with WhatsApp in Brazil?
20.
Why do you think Visa attempted to acquire Plaid? How do you think Plaid now could take advantage of its connections to banks and make its own competing network to Visa? How might Visa react to that?
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