Visa Sees 20%‑Plus Services Growth as U.S. Payment Volumes Gain Momentum

Key Points

• Visa reported that U.S. payment volume growth accelerated to 10% in recent quarters, up from roughly 6% to 8% over the prior 18 months, with October trends remaining strong.
• Value-added services revenue rose 30% to more than $14 billion in fiscal 2026; Visa expects low- to mid-20% growth in fiscal 2027 despite tougher comparisons tied to FIFA.
• Commercial payments volume topped $2 trillion for the first time in fiscal 2026, while Visa Direct transactions grew 23%; Visa expects both businesses to continue supporting growth above its overall rate.

Visa NYSE: V said its key business drivers remained stable and strong throughout October, while its value-added services business is expected to continue growing at a double-digit pace in fiscal 2027.

Chief Financial Officer Chris Suh told Citi analyst Bryan Keane that the rest of October matched the trends Visa had reported for the first three weeks of the month. He said U.S. payment volume growth had accelerated to 10% in the last couple of quarters, from roughly 6% to 8% in the preceding 18 months.

Suh attributed the acceleration in part to fuel costs, strong retail activity, Visa Direct and enthusiasm surrounding the FIFA World Cup hosted in the U.S. He also pointed to a healthy consumer and labor market.

Value-Added Services Outlook

Visa’s value-added services revenue rose 30% to more than $14 billion in fiscal 2026, Suh said. The company expects growth in the low- to mid-20% range in fiscal 2027, even as it laps a boost associated with FIFA.

The business spans issuing, acceptance, risk and security, and advisory services. Suh said the first three portfolios collectively grew more than 20% in fiscal 2026, while advisory and other services grew faster, benefiting from FIFA and the Olympics.

More than 80% of value-added services revenue is closely linked to cards, accounts and transactions elsewhere in Visa’s business, he said.

Within issuing services, Suh said Visa had expanded its Pismo platform into 28 markets. He described Pismo, which provides issuer processing and core banking technology, as complementary to Visa’s existing DPS processing business. Visa has combined capabilities from the two businesses for an offering aimed at smaller and midsize clients and financial technology companies, he said.

Commercial Payments and Cross-Border Revenue

Visa reached $2 trillion in commercial payments volume for the first time in fiscal 2026, and Visa Direct transactions grew 23%, Suh said. He expressed confidence that commercial volume and Visa Direct transaction growth would remain strong, supporting revenue growth above the rate for Visa overall.

He cautioned that the commercial and money movement solutions business faces comparisons in fiscal 2027 with prior pricing changes and a one-time performance adjustment benefit recorded in the second quarter of fiscal 2026.

For Visa as a whole, Suh said the contribution from new pricing in fiscal 2027 is expected to be similar to fiscal 2026, with more of it weighted toward the second half of the year.

On cross-border payments, Suh said travel growth was strong and stable, while e-commerce volumes had accelerated faster. He noted that revenue from cross-border activity appears in three revenue lines: service revenue, data processing revenue and international transaction revenue.

Lower foreign-exchange volatility than a year earlier has weighed on growth in international transaction revenue, which includes currency conversion services, he said. Differences in geographic, product and currency mix can also affect how revenue growth compares with cross-border volume growth.

Tokenization and Emerging Payments

Suh said more than 50% of Visa credentials and more than 60% of e-commerce transactions are tokenized. He cautioned that rising adoption does not necessarily translate directly into higher pricing: In the U.S., for example, token and lifecycle management are already included in a digital commerce fee regardless of whether a transaction is tokenized.

Looking ahead to agentic commerce, Suh said Visa believes all such transactions will eventually be tokenized. He said the company plans to build adoption and demonstrate value before pricing its services accordingly.

Suh also called stablecoins a potential growth opportunity. Visa is involved across several layers of the market, he said, and has more than 225 stablecoin-linked card programs. Stablecoin settlement is also growing rapidly, he said.

Asked about margins, Suh said Visa does not manage to a specific margin target. Instead, he said, the company is focused on operating efficiently and evaluating returns on investments in areas including stablecoins and agentic commerce.

About Visa (NYSE:V)

Visa Inc operates a global payments network that connects consumers, merchants, financial institutions and governments. Its network supports the authorization, clearing and settlement of electronic payments, including transactions made in person and online.

The company's services include payment processing, fraud prevention, identity and risk management, and money-transfer solutions such as Visa Direct. Visa-branded credit, debit and prepaid cards are issued by participating financial institutions; Visa generally provides the network and related services rather than issuing cards or extending credit directly to consumers.

Visa traces its roots to BankAmericard, a bank card program launched in California in 1958.

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