Growth in the number of transactions processed
The number of processed transactions directly drives Visa’s (V) data processing revenues, which account for nearly one-third of the company’s total revenues. Credit transactions account for 37% of Visa’s total transactions.
The above graph shows the number of transactions Visa processed and their total volume over the last ten quarters. As seen in the graph, the transactions look seasonally down in the quarter ending in March. The company’s reporting year ends in September.
The drop in the quarter ending in March might be due to consumers’ reduced spending in the winter months in the US, the company’s biggest market.
Payments and cash volume
The payments volume represents the total dollar amount of purchases consumers make with Visa cards. Cash volume represents the total dollar amount of cash disbursements obtained with the cards and includes the impact of balance transfers and convenience checks. Total volume is the sum of payments volume and cash volume.
Visa’s credit products contribute 63% to the total payments volume. Cash volume is primarily generated by debit products.
Payments volume is the primary driver of Visa’s service revenues. Payments volume comprises two-thirds of the company’s total volume. 54% of the total payments volume comes from the US market. Asia-Pacific contributes 29% to the total payments volume.
Latin America and the Caribbean contribute 8% to the payments volume, while Central Europe, the Middle East, and Africa account for 5%. The above graph provides the geographic breakdown of Visa’s payments volume.
Visa has a total of 2.4 billion issued cards. Nearly 1.5 billion of these are debit cards and 857 million are credit cards. The company had 2 billion cards at the end of 2012.