Visa Europe announces record revenues

 

  • Revenues grow by 25% in Annual Report published today
  • Visa Europe now accounts for more than €1 in every €5.70 spent in Europe
  • Rapid contactless growth accelerates shift from cash to electronic payments

 

London, STRICTLY EMBARGOED UNTIL 00.01, 26 January 2016 – Visa Europe has today announced its highest ever revenues of €2.31 billion – up 25% year-on year (year to June 2015). Costs have been held flat for a fourth successive year and the organisation has returned a record €739 million to its member-shareholders in the form of rebates and joint-investment initiatives.

Visa Europe now accounts for more than €1 in every €5.70 spent in Europe today while the number of Visa cards issued in Europe now stands at 522 million - or more than one Visa card per adult. Point-of sale spending has risen by 7.7% in the last year (to €1.58 trillion).

Visa Europe CEO Nicolas Huss said: “Our new Annual Report shows that, financially, this was our most successful year ever – and by quite some distance. We’ve done that while maintaining always on delivery with 100% availability of our systems for more than 100 months in a row and maintaining trust in the system by keeping fraud at record low levels of less than 5c for every €100 spent (0.044% year to June 2015) and investing in multiple layers of cyber and data security.

“Contactless transaction growth is off the chart – in 2015 we went through the billion contactless transaction-a-year barrier – and in a leading market like the UK it’s fast making cash seem peculiar. We’ve also launched a tokenisation service that devalues sensitive account data and brings more security to digital payments. Importantly it enables these transactions to flow across the existing industry infrastructure. In the first instance, it has supported the launch of Apple Pay in the UK, and is set to become the basis for many more payment products and solutions in the months and years ahead.”

Contactless transactions reached 1.7bn transactions in the year to September 2015. In the UK, contactless transactions now make up 1 in 7 face-to-face Visa transactions (Oct 2015), compared to 1 in 25 just one year ago.

The time is right for Visa to come together as one global company

Visa Inc. and Visa Europe announced in November a definitive agreement for Visa Inc. to acquire Visa Europe, creating a single global company. The transaction is subject to regulatory approvals and is expected to close in Visa Inc.’s fiscal third quarter of 2016 (April-June).

Chairman Gary Hoffman said: “This deal will unlock significant value for members, both through the consideration paid and because the Board believes a combined Visa will be better positioned to serve the needs of customers going forward. We are also confident that Visa Inc. is committed to long-term investment and development of the European business.”

Nicolas Huss commented: “We are performing extremely well as Visa Europe. However, taking a long-term perspective and against a backdrop of a rapidly evolving landscape, increased globalisation, intensifying regulation and competition, there is no better time to come together as one company.

“The time is right because scale, speed to market and investment are critical to bringing competitive advantage. Integrating into one global business will ensure we have the financial strength and operational scale to accelerate the next generation of payments throughout Europe building deep partnerships with our existing and new clients. The deal will also give Europe a powerful voice on the global stage using our world-leading position to drive the future.

“We’ll be giving our clients across Europe greater access to global scale, technologies, investment and resources. The accelerated development of electronic payments will shape the future of commerce, bringing tangible benefits to merchants enabling them to grow their businesses and to consumers by enabling them to pay where and when they choose, and on any device.”

Note to editors:

Visa Europe’s Annual Report 2015 can be found at https://annualreport.visaeurope.com/

 

 

About Visa Europe

 

Visa Europe is a payments technology business owned and operated by member banks and other payment service providers from 38 countries.

Visa Europe is at the heart of the payments ecosystem providing the services and infrastructure to enable millions of European consumers, businesses and governments to make electronic payments. Its members are responsible for issuing cards, signing up retailers and deciding cardholder and retailer fees. Visa Europe is also the largest transaction processor in Europe, responsible for processing more than 18 billion transactions annually.

There are more than 500m Visa cards in Europe, while €1 in every €6 spent in Europe is on a Visa card. Total expenditure on Visa cards exceeds €2 trillion annually, with €1.5 trillion spent at point-of-sale.

Visa Europe is an independent business with an exclusive, irrevocable and perpetual licence to use the Visa brand in Europe. Visa Europe works in partnership with Visa Inc. to enable global Visa payments in more than 200 countries and territories.

For more information, visit our website (www.visaeurope.com), the Visa Vision blog (www.vision.visaeurope.com), and @VisaEuropeNews