Visa facilitates consumer-to-business (C2B) payment transactions. In a typical transaction, a consumer uses a Visa card to purchase goods or services from a merchant. The merchant then sends the transaction data to an acquirer (usually a bank or third-party processing firm) for verification and processing.
The acquirer presents the transaction data to Visa through VisaNet, and Visa contacts the issuer to check the account holder’s account or credit line for authorization. Once authorized, the issuer pays the acquirer the value of the transaction, minus the interchange reimbursement fee, and posts the transaction to the consumer’s account. The acquirer pays the merchant the amount of the purchase, minus the merchant discount rate (MDR).
Visa earns revenue by facilitating money movement across more than 200 countries and territories. Its net revenues consist of service revenues, data processing revenues, international transaction revenues, and other revenues, minus client incentive arrangements.
Visa is primarily owned by institutional investors like The Vanguard Group, with an 8.62% ownership stake, and BlackRock, with a 7.75 ownership stake. Some top individual shareholders comprise Chairman of the Board of Directors Alfred Kelly, President of Technology Rajat Taneja, and CEO Ryan Mclnerney.
Visa’s revenue in 2020 was $21.84 billion.
In 2021, Visa’s revenue increased to $24.1 billion.
By 2022, Visa’s revenue had grown further to $29.31 billion.
The revenuegrowth from 2020 to 2021 was approximately 10.4%.
The revenuegrowth from 2021 to 2022 was approximately 21.6%.
Over the three-year period from 2020 to 2022, Visa’s revenue increased by approximately 34.2%.
In 2020, Visa’s payment volume was $8.8 trillion.
The payment volume increased to $10.4 trillion in 2021.
By 2022, Visa’s payment volume had grown further to $11.6 trillion.
The growth in payment volume from 2020 to 2021 was approximately 18.2%.
The growth in payment volume from 2021 to 2022 was approximately 11.5%.
Over the three-year period from 2020 to 2022, Visa’s payment volume increased by approximately 31.8%.
In 2020, Visa processed 140.8 billion transactions.
The number of transactions processed increased to 164.7 billion in 2021.
By 2022, Visa had processed 192.5 billion transactions.
The growth in transactions processed from 2020 to 2021 was approximately 16.9%.
The growth in transactions processed from 2021 to 2022 was approximately 16.8%.
Over the three-year period from 2020 to 2022, the number of transactions processed by Visa increased by approximately 36.7%.
In 2020, Visa’s net income was $10.86 billion.
The net income increased to $12.31 billion in 2021.
By 2022, Visa’s net income had grown further to $14.96 billion.
The growth in net income from 2020 to 2021 was approximately 13.3%.
The growth in net income from 2021 to 2022 was approximately 21.5%.
Over the three-year period from 2020 to 2022, Visa’s net income increased by approximately 37.8%.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
