Tapping new markets
Visa (V) has been pursuing the Chinese market as a long-term opportunity, which could lead to an increase in its payments volume. According to the management, the payments market in China is well developed and could lead to strong numbers in Visa’s payments volume. Visa plans to use its industry expertise and has been planning to launch innovative products that could provide secure payment experiences. As management expected, the payments volume was negatively impacted in China on the back of the withdrawal of dual-branded cards.
Management expects that opportunity still prevails in the Indian market. The Indian market could be a major contributor to Visa’s payments volume, mainly due to its inclination towards the digital economy. In fiscal 3Q17, the company witnessed strong growth in its payments volume of more than 80% from India.
In fiscal 3Q17, Visa witnessed growth of 38% on a YoY basis in its payments volume. The payments volume in fiscal 3Q17 amounted to $1.9 trillion as compared to $1.3 trillion in fiscal 3Q16.