Visa 2008 Annual Report Download - page 54

Table of Contents
presented in accordance with SFAS No. 141, "Business Combinations" ("SFAS 141"). See Note 3—The Reorganization to our consolidated financial
statements included elsewhere in this report. In addition, this management's discussion and analysis includes a comparison of our operating results for fiscal
2008 to the operating results of Visa U.S.A., deemed the accounting acquirer in the reorganization, for fiscal 2007 and 2006.
We believe that payments volume and processed transactions are key drivers of our business. Payments volume is the basis for service fees and
processed transactions are the basis for data processing fees. Current period service fees are generated from payments volume on Visa-branded cards for
goods and services in the preceding quarter, exclusive of PIN-based debit volume. Payments volume and revenues are impacted by changes in currency rates.
Payments volume and revenues increased, reflecting in part the impact of the weaker U.S. dollar, during fiscal 2008 compared to pro forma fiscal 2007.
Payments volume increased 17%, to $2.7 trillion during fiscal 2008, with double-digit growth in all product categories. Growth in the United States continues
to reflect increases in non-discretionary spending and growth in debit. Growth outside the U.S. reflects continued penetration into emerging markets.
Payments volume does not impact the operating revenues we earn from Visa Europe.
The following tables set forth product payments volumes for the periods presented:
U.S.A. Rest of World(3) Visa Inc.
12 months
ended
June 30,
2008(4)
12 months
ended
June 30,
2007(4)
%
Change
12 months
ended
June 30,
2008(4)
12 months
ended
June 30,
2007(4)
%
Change
12 months
ended
June 30,
2008(4)
12 months
ended
June 30,
2007(4)
%
Change
(in billions, except percentages)
Payments Volume
Consumer credit $ 661 $ 624 6% $ 802 $ 634 27% $ 1,463 $ 1,258 16%
Consumer debit(1) 733 637 15% 133 93 43% 866 730 19%
Commercial and other 217 188 16% 108 90 20% 325 278 17%
Total Payments Volume $ 1,611 $ 1,449 11% $ 1,043 $ 817 28% $ 2,654 $ 2,266 17%
Cash volume 406 382 6% 1,127 834 35% 1,533 1,216 26%
Total Volume(2) $ 2,017 $ 1,831 10% $ 2,170 $ 1,651 31% $ 4,187 $ 3,482 20%
(1) Includes prepaid volume.
(2) Total volume is the sum of total payments volume and cash volume. Total payments volume is the total monetary value of transactions for goods and
services that are purchased. Cash volume generally consists of cash access transactions, balances access transactions, balance transfers and convenience
checks.
(3) Includes Bulgaria and Romania through March 31, 2007, after which time such countries became part of Visa Europe.
(4) Service fee revenue in a given quarter is assessed based on payments volume in the prior quarter, excluding PIN-based debit volume. Therefore, service
fees reported with respect to the twelve months ended September 30, 2008 and September 30, 2007 were based on payments volume reported by our
financial institution customers for the twelve months ended June 30, 2008 and June 30, 2007, respectively.
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