V | Q1 2025

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Overview

• Non-GAAP EPS of $2.75 beats by $0.09.

• Revenue of $9.51B (+10.6% Y/Y) beats by $170M.

Takeaways

Visa (V) kicked off 2025 with a great quarter, reporting $9.5 billion in revenue for the first quarter—a 10% increase from last year—while earnings per share jumped 14%.

Payments volume grew across the board—up 9% in constant dollars, with the U.S. seeing a 7% increase and international markets climbing 11%.

Cross-border transactions, a key driver for Visa, rose 16%, and the total number of transactions processed also grew 11%.

One of the more impressive milestones this quarter was Visa surpassing $4 trillion in total quarterly volume—just five years after crossing the $3 trillion mark.

The shift toward digital payments is also accelerating, especially in regions like Latin America and CEMEA, where digital transactions now make up more than 60% of total volume, a complete flip from just a few years ago.

Contactless payments continue to gain traction as well, with Tap to Pay now making up 74% of all face-to-face transactions worldwide. In the U.S., contactless penetration climbed to 57%, while Japan and Argentina saw even bigger jumps.

Meanwhile, Visa’s Tap to Add Card feature—which lets users add their card to a digital wallet with a simple tap—has already been used by millions, cutting down on fraud that typically comes with manually entering card details.

Visa also locked in a series of major deals across the globe, renewing key partnerships in China with ICBC (the world’s largest bank), in India with ICICI and SBI Card, and in Europe with BNP Paribas.

The company also expanded its footprint in Latin America, working with Santander in Argentina and Uruguay and deepening its relationship with BAC to support small merchants.

Co-branded credit cards were another area of growth, with new launches including a high-net-worth card in India with ICICI, a travel-focused card with Marriott Bonvoy and Alrajhi Bank in Saudi Arabia, and a retail co-brand with Brazil’s Casas Bahia.

Regarding the financials, Visa’s strong quarter was driven by higher-than-expected international transaction revenue and growth in value-added services.

Visa’s value-added services business, which includes consulting, risk management, and fraud prevention, grew by 18%, showing that businesses continue to lean on Visa’s tools beyond just processing payments.

Visa Direct—the company’s fast-growing real-time payments platform—hit a major milestone, crossing 10 billion transactions in the last year, with nearly 3 billion processed this quarter alone.

Visa’s ongoing push into tokenization—its system for securing digital payments—was another standout. There are now more than 12.5 billion Visa tokens in circulation, and about a third of all Visa transactions are now tokenized.

McInerney noted that tokenized transactions not only cut down on fraud but also increase approval rates, which is great for both merchants and customers.

Looking ahead, Visa slightly raised its full-year outlook, now expecting revenue growth in the low-double digits, and it also lowered its expected tax rate, which should help EPS grow in the low teens.

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