By the numbers: Visa’s payments volume grew 7% year over year (YoY) in its fiscal Q1 2023 (ended December 31, 2022), per its earnings release. Growth slowed from the post-lockdown 20% YoY increase the same period a year ago.
The firm’s cross-border volume jumped 22% YoY during the quarter, down from 40% the year before.
Digging deeper: CEO Al Kelly highlighted three areas that contributed to the firm’s performance during Visa’s earnings call.
Issuer and fintech partnerships.
Inflation likely also played a role in Visa’s performance, but to a lesser extent because price increases have cooled in recent months.
Looking ahead: Kelly will step down as CEO, succeeded by Visa president Ryan McInerney in February. McInerney will oversee the company’s growth efforts, which include expanding via acquisitions: During the earnings call, Kelly suggested that falling fintech valuations are an opportunity for Visa to make acquisitions.
CFO Vasant Prabhu said he expects Visa’s departure from Russia and evolving exchange rates will hurt Visa’s revenue growth this quarter. But the firm will keep a pulse on the current economic environment to maintain its trajectory.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.