Visa 2009 Annual Report Download - page 6

Table of Contents
• we, along with U.S. Bank, formed a joint venture named Syncada, a global payment network that delivers a proven integrated invoice processing,
payment and financing platform for financial institutions to offer to their corporate and government commercial clients around the world; and
• we sold our 10% ownership in Companhia Brasileira de Meois de Pagamento, or VisaNet do Brasil, in connection with its initial public offering.
Following the initial public offering, we amended an existing agreement with VisaNet do Brasil that grants a license to use our trademarks and
technology intellectual property.
Our Reorganization and Initial Public Offering
Visa Inc. was incorporated as a Delaware stock corporation in May 2007 and the Visa global enterprise was reorganized in October 2007. Prior to the
reorganization, Visa operated as five corporate entities related by ownership and membership. For more information on our reorganization, see Item 8—
Financial Statements and Supplementary Data—Note 2—The Reorganization.
In March 2008, we completed our Initial Public Offering, or IPO. As a result of our IPO, the financial institutions that hold our class B and class C
common stock represent a minority of the outstanding shareholder interest of Visa Inc. For more information about our IPO, our capital structure and our
classes of common stock, see Item 8—Financial Statements and Supplementary Data—Note 15—Stockholders' Equity.
Industry Overview
The Global Payments Industry
We operate in the global payments industry, which is undergoing a major shift from paper-based payments, such as cash and checks, to card-based and
other electronic payments. For more than 30 years, Visa has played a central role in driving this migration by providing payment products and services that we
believe deliver significant benefits to consumers, businesses, governments and merchants. We believe that consumers are increasingly attracted to the
convenience, security, enhanced services and rewards associated with electronic payment forms. We also believe that corporations and governments are
shifting to electronic payments to improve efficiency, control and security, and that a growing number of merchants are accepting electronic payments to
improve sales and customer convenience.
The global payments industry consists of all forms of payment and value transfer, including:
• paper-based payments—cash, personal checks, money orders, government checks, travelers cheques, official checks and other paper-based means
of transferring value;
• card-based payments—credit cards, charge cards, debit cards, deferred debit cards, ATM cards, prepaid cards, private label cards and other types
of general-purpose and limited-use cards; and
• other electronic payments—wire transfers, electronic benefits transfers, automated clearing house payments and other forms of electronic
payment not typically tied to a payment card or similar access device.
The most common card-based forms of payment are general-purpose cards, which offer widespread merchant acceptance. General purpose cards are
typically categorized as:
• "pay now" cards, such as debit cards, which enable the cardholder to purchase goods and services by an automatic debit to a checking, demand
deposit or other current account;
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