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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Date of Report (Date of earliest event reported): December 1,
2020
VISA INC.
(Exact name of Registrant as Specified in Its Charter)
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Delaware |
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001-33977 |
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26-0267673 |
(State or Other Jurisdiction
of Incorporation) |
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(Commission File Number) |
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(IRS Employer
Identification No.) |
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P.O. Box 8999 |
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San Francisco, |
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California |
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94128-8999 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (650)
432-3200
N/A
(Former Name or Former Address, if Changed Since Last
Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instructions
A.2. below):
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☐ |
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425) |
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12) |
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the
Act:
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Class A common stock, par value $0.0001 per share |
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V |
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New York Stock Exchange |
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(Title of each Class) |
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(Trading Symbol) |
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(Name of each exchange on which registered) |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 7.01 Regulation
FD Disclosure.
Visa continues to monitor the COVID-19 impact globally. In
November, year-over-year spend growth in some countries slowed due
to increased COVID-related restrictions while other countries
experienced boosts from elevated holiday shopping. Globally,
year-over-year spend growth was generally similar to October
levels.
In November, total U.S. payments volume rose 6% year-over-year,
with the difference in growth from October being relatively similar
by state. Debit continued its strong growth, up 19% in November
despite a smaller contribution from prepaid spending. Credit
declined 5% for the month. Card not present excluding travel
increased 27% year-over-year in November while card present
declined 7%. Growth in spend by merchant category was generally
lower than October, with the exception of retail goods, primarily
due to holiday shopping.
International market trends varied based on the level of
COVID-related restrictions and holiday timing in November. Across
Europe, in countries such as the UK, Italy and Germany,
COVID-related restrictions helped domestic card not present
payments volume but overall payments volume growth slowed. In India
and Hong Kong, domestic spend benefited from Diwali-related and
Singles Day sales, respectively. In Australia, the UAE, Japan and
Brazil domestic spend growth was consistent with or better than
October levels.
Cross-border volume excluding intra-Europe transactions improved 4
points from October, posting a 33% year-over-year decline in
November. This was led by strong eCommerce spend, up 20%
year-over-year in November, driven primarily by holiday-related
retail spend late in the month. Travel related cross-border volume
(card present and card not present) declined 65%. Cross-border
volume including intra-Europe transactions declined 19%
year-over-year in November.
Global processed transactions increased 3% in November, 2 points
lower than October, reflecting the decline in card present
spending.
As a result of COVID, the holiday season this year is likely to
look different than prior years in terms of where, when and on what
consumers spend. As such, specific week-by-week comparisons may not
reflect underlying trends and the full impact is not expected to be
clear until the end of the holiday season.
The table below shows the increase / (decrease) in certain key
metrics against the comparable 2019 periods for October, November
and quarter-to-date (October 1 – November 30, 2020):
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Year-over-Year Increase / (Decrease) |
October |
November |
Quarter-to-Date |
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U.S. Payments Volume |
10% |
6% |
8% |
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Credit |
(3%) |
(5%) |
(4%) |
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Debit |
24% |
19% |
21% |
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Cross-Border Volume Excluding Intra-Europe
Transactions* |
(37%) |
(33%) |
(35%) |
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Cross-Border Volume Including Intra-Europe
Transactions* |
(25%) |
(19%) |
(22%) |
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Processed Transaction |
5% |
3% |
4% |
*In constant dollars
Charts that follow provide growth trends against the comparable
2019 periods by week in September, October and November for U.S.
payments volumes, processed transactions and cross-border
volumes:
The foregoing information is preliminary in nature and has not been
audited or reviewed by our auditors and is subject to
change.
All information in Item 7.01 is furnished but not filed and shall
not be deemed to be incorporated by reference into any of Visa’s
filings under the Securities Act of 1933 or the Securities Exchange
Act of 1934 except to the extent otherwise set forth
therein.
Forward-Looking Statements
This current report contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 that relate to, among other things, the impact on our
underlying business drivers and other volume and transaction trends
as a result of COVID-19, our future operations, prospects,
developments, strategies and business growth. Forward-looking
statements generally are identified by words such as “anticipates,”
“estimates,” “expects,” “intends,” “may,” “projects,” “outlook,”
“could,” “should,” “will,” “continue” and other similar
expressions. All statements other than statements of historical
fact could be forward-looking statements, which speak only as of
the date they are made, are not guarantees of future performance
and are subject to certain risks, uncertainties and other factors,
many of which are beyond our control and are difficult to
predict.
Actual results could differ materially from those expressed in, or
implied by, our forward-looking statements due to a variety of
factors, including, but not limited to:
•impact
of global economic, political, market, health and social events or
conditions, including the impact of COVID-19;
•increased
oversight and regulation of the global payments industry and our
business;
•impact
of government-imposed obligations and/or restrictions on
international payment systems;
•outcome
of tax, litigation and governmental investigation
matters;
•increasingly
intense competition in the payments industry, including competition
for our clients and merchants;
•proliferation
and continuous evolution of new technologies and business
models;
•our
ability to maintain relationships with our clients, acquirers,
processors, merchants and other third parties;
•brand
or reputational damage;
•exposure
to loss or illiquidity due to settlement guarantees;
•the
impact of the United Kingdom’s withdrawal from the European
Union;
•a
disruption, failure, breach or cyber-attack of our networks or
systems;
•risks,
uncertainties and the failure to achieve the anticipated benefits
with respect to our acquisitions and other strategic investments;
and
•other
factors described in our filings with the U.S. Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the year ended September 30, 2020, and our subsequent reports on
Form 8-K.
Except as required by law, we do not intend to update or revise any
forward-looking statements as a result of new information, future
events or otherwise.
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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VISA INC. |
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Date: December 1, 2020 |
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By: |
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/s/ Vasant M. Prabhu |
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Vasant M. Prabhu
Vice Chairman and Chief Financial Officer |
