Visa 2015 Annual Report Download - page 8

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In summary, we are delighted to be
reuniting the Visa family. We believe
that we have structured this in a way
that creates value for both Visa Europe
members, our shareholders and our clients
globally.
U.S. vs. Non-U.S. Mix
Our world is constantly evolving. With our
acquisition of Visa Europe, our global mix
of business will continue to become less
concentrated in the U.S. Our U.S. payments
volume will go from 53% to approximately
38% after the transaction. While we love
the U.S. market and continue to believe
that there is great opportunity for growth,
our non-U.S. payments volume is growing
approximately 1.5 times as fast as our U.S.
payments volume.
China
China is writing final rules which will
create a process to allow us and others
to apply for a license to compete in the
domestic Chinese electronic payments
market. We are actively working on
our plans and intend to submit our
application as quickly as possible once
the final rules are published. We view
this as a long-term commitment and
a long-term opportunity to help grow
commerce domestically in China. Our
initial investment will be substantial as
we build local processing capabilities
and the necessary infrastructure to
grow the issuance and acceptance of
our products. As an example, today our
acceptance has been targeted at those
locations catering to inbound tourism and
as such we are accepted at only about
370,000 merchant locations. China Union
Pay, the government-controlled entity
which processes all domestic Chinese
transactions is accepted in about 10
million domestic merchant acceptance
locations. Having said that, we have strong
relationships with the Chinese banks as we
have worked together for years helping
them successfully build their outgoing
Chinese cross-border business. We are
excited about the long-term potential
China represents for Visa and we are
confident that we will be able to develop
strong local capabilities which will help
grow the domestic Chinese economy and
deliver safe, convenient, and innovative
payment alternatives for Chinese
consumers.
Competition
We are often asked about how we
compete in the marketplace.
We have always had, and still have,
formidable competition. We compete
vigorously every day, doing our best to
earn our clients’ business and preserve our
share.
We are lucky to participate in an industry
which still has enormous growth potential.
There is about $16 trillion of cash and check
in the world used annually for commerce,
and consumers and merchants would be
better off if almost all of these transactions
were conducted electronically. This is
where we look for growth and it is also the
most valuable and sustainable source of
growth. Increasing our payments volume
by displacing cash and check, expanding
participants in the electronic payments
universe, and helping to grow commerce
We have always had, and still have, formidable
competition. We compete vigorously every
day, doing our best to earn our clients’
business and preserve our share.