Jimmy's Drops #1: What I Learned from Visa Investor Day ($V)
Key takeaways from Visa Investor Day...
Hi, Investor 👋
I’m Jimmy, and welcome to the first edition of Jimmy's Drops! Today, we’re breaking down the key takeaways from Visa Investor Day - insights that highlight Visa’s strategic direction, growth opportunities, and what investors should keep an eye on.
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This edition will be divided into the following sections:
Visa’s Evolution as a Service
The Market Opportunity
Value-Added Services
Growth Framework
The Bigger Picture: Visa’s Next Chapter
1. Visa’s Evolution as a Service
Visa ($V) is transforming itself from a payments giant into a broader financial infrastructure provider.
The company is unbundling its platform, opening up new opportunities for fintechs, banks, and businesses to tap into its capabilities. It’s about staying relevant and redefining how money moves across the globe…
By embracing open networks and integrating with emerging payment systems like account-to-account (A2A) transfers, Visa is positioning itself as the backbone of the digital economy.
The challenge is to expand without cannibalizing its core business. But Visa seems confident that a flexible, modular approach will drive more engagement and, ultimately, more revenue.
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2. The Market Opportunity
Visa’s addressable market remains enormous.
In consumer payments alone, the company sees a $41 trillion opportunity (excluding China and Russia). $23 trillion of that is still up for grabs - locked in cash, checks, and outdated ACH systems.
Then, there’s the real game-changer: New Flows.
This segment, which includes remittances, B2B payments, and disbursements, has expanded to $200 trillion. Visa Direct alone could capture $80 trillion of that market, with commercial and virtual cards adding another $35 trillion in potential volume.
And let’s not forget Value-Added Services (VAS). With a $520 billion revenue opportunity and only 2% market penetration, this segment is a massive untapped growth driver…
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3. Value-Added Services
VAS now represents 24% of Visa’s total revenue - and it’s growing fast.
The company revealed new insights into this segment, showing that Issuing services make up 40% of VAS revenue, while Acceptance services account for 30%. Despite their already significant scale, these categories are still expanding at a double-digit pace.
One of the most exciting areas is Tokenization.
Visa is just scratching the surface when it comes to monetizing this technology, which enhances security while reducing friction in digital transactions.
With such a large and diverse market to capture, Visa’s VAS strategy has the potential to fuel sustainable, high-margin growth for years to come.
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4. Growth Framework
While Visa didn’t provide formal financial projections, the company reaffirmed its commitment to steady, predictable growth.
It expects to sustain high single-digit to low double-digit revenue growth, driven by:
Increased share in core consumer payments
Expanding New Flows and cross-border transactions
Growing adoption of Value-Added Services
Visa acknowledges that mature markets will see slower payment volume growth, but its diversification strategy ensures multiple pathways for expansion.
For a company historically seen as a 9-10% growth business, Visa’s latest playbook suggests a realistic path to hitting 9-12% revenue growth annually.
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5. The Bigger Picture: Visa’s Next Chapter
By expanding beyond traditional card transactions, Visa ($V) is creating a broader financial network that serves businesses, banks, and consumers in new ways.
Its unmatched scale, deep partnerships, and disciplined approach to innovation provide a solid foundation for long-term success.
Visa isn’t just holding onto its leadership position. It’s redefining it.
If you want to watch the Visa Investor Day and access the presentations, click here:
Until next time - see you in the next edition!
Cheers,
Jimmy
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Great article Jimmy! When I started working cards & payments two decades years ago, it was a great industry with a great future. Today, even more so.