Visa 2013 Annual Report Download - page 8

In October 2013, we announced a 21 percent increase in our
dividend, from 33 cents per share per quarter to 40 cents.
We also announced our tenth and most significant share
repurchase authorization to date — $5 billion. Both of these
actions are consistent with our views of capital management,
but also reflect the confidence we have in our future.
The Opportunity
We look forward to and are excited about our future. We embrace
our role at the center of one of the most dynamic industries in
the world. Our market position is extraordinary, and we have
outstanding clients that we value beyond what we can say. Our
business is centered on partnerships of all sizes, from the 2,900
issuers internationally to the 11,700 issuers in the United States.
We have a leading share of seven of the top 10 credit issuers’
business in the United States, long-term contracts with more than
600 U.S. financial institutions, leading share with credit union and
community bank associations, and leading share among global
payment networks at 17 of the top 25 international issuers in
our geographies (with 60 percent of international cards being
issued from smaller issuers). Seven of the top 10 co-brands in
North America issue Visa, and we work with more than 3,000
government programs in more than 30 countries.
Our business is global and it’s becoming more global. More than 45
percent of our revenues are generated outside of the United States
and growing at a much faster rate. To support this opportunity,
we are adding resources locally to support our partners. While our
headcount growth in the United States has been 21 percent during
the past two years, the increase internationally has been more than
30 percent in the same time period.
More than half our growth is attributable to the shift from cash
and checks to electronic payments. The good news for Visa
and our shareholders is that cash remains the way much of the
world still pays for goods and services. A total of 41 percent of
consumer spending in the developed world and 62 percent in
the developing world is made using cash and checks — about
$11 trillion in our markets and increasing.
Our business also succeeds as world economies grow. Personal
consumption expenditure (PCE) is the biggest driver of gross
domestic product growth across the world, and as it grows,
transactions over our network grow. As world economies
strengthen, we will be beneficiaries of that accelerated growth.
In addition, mobile technology has created a huge opportunity
that did not exist five years ago. Creating a network in developing
areas of the world is hard and takes years if not decades. Installing
physical terminals, connecting them through a physical network,
and getting cards into the hands of consumers are all hard tasks.
Today, most merchants and consumers have mobile devices. We
have the ability to connect these devices to our network to digitize
commerce in a very short time. This opens markets for growth that
did not exist five years ago.
Earlier, I mentioned the importance of improving our merchant
relationships. We have been able to grow even though some of
the largest merchants in the world have not been supportive. If
we can convince them of the value of our network and deliver
solutions to help them grow, they will become partners that
help us grow in ways they have not in the past.
Our People
This great company of yours has been built by some of the best
minds in the payments space and continues to be filled with
some of the most talented people in the industry. I have had
the opportunity to meet many of our 9,500 employees during
my travels, and I am inspired every day by their knowledge,
entrepreneurial spirit and, most importantly, their commitment
to our clients. They are proud to work at Visa, as am I, and we
work every day to build a stronger business on your behalf.
We will do everything we can to make Visa the best place to
work and will continue to build the talent base by bringing in
thought leaders from outside our company.
As shareholders you should also know that you have an
experienced, engaged, and independent-thinking board.
Sadly, Gary P. Coughlan, who like all of the independent
directors has been a member since the IPO, has decided not
to stand for re-election. Gary has been an active and valuable
member of the Visa board since 2007. I want to thank Gary for
his years of service. We will miss his experience and guidance.
In November, we announced that the board nominated two
outstanding individuals, Alfred F. Kelly, Jr. and Maynard G.
Webb, Jr., for election as directors of the company at our 2014
Annual Meeting in January. Al and Maynard have a wealth of
experience from their previous roles at American Express and
eBay, respectively.
There is no question that we will continue to face challenges as
the world and our industry undergo continued disruption and
uncertainty. The fact that Visa is so well positioned to weather
these challenges and face the future with such confidence
is attributable to the strong foundation established by the
employees and board at Visa.
Thank you for the trust and confidence you have in us. We
will continue to do all we can to make you happy and proud
shareholders.
Charles W. Scharf
Chief Executive Officer
Visa Inc.