Ryan McInerney: Yes, thanks. It was — we did have some really good commercial wins in the quarter. I’d put it in a couple of different buckets. One is we’re looking to expand our partnerships, right? So I mentioned Citi and IBM this quarter. I mentioned SAP last quarter. And we’re just — we’re having good success building and expanding those partnerships around the world. Second thing we’re focused on is expanding verticals. You’ve heard us talk about government, travel, fleet and fuel. I talked about agro, I think, last quarter, working and selling into marketplaces, like I mentioned, healthcare. So taking these products, innovating, creating new use cases and delivering them into new verticals. And then just making the products easier to use.
Yesterday, we announced that actually we had a new product to make it easier to accept virtual cards. We call it virtual card acceptance platform. Virtual cards are a preferred acceptance of many suppliers, but they’re not as easy to accept as sometimes we’d like them to be. So putting new platforms out to make the core products like virtual cards easier to use. And then continuing to invest in the partnerships that we’ve announced over the last couple of years. WEX is a great example of a partner that we announced a couple of years ago that we’ve invested in and growing in and really getting to see some of the benefits of that around the world. So, I guess the last thing I would say, Ramsey, is just also taking these products more broadly around the world.
In so many different countries outside of the most developed markets that we work in, there’s opportunity to get some of the basic products into the hands of small businesses, for example. In a lot of countries we’re doing business, there’s still a lot of small businesses that are actually using consumer products instead of the more sophisticated advanced small business products, let alone the large and middle market products that we can get out there. So, more partners, more use cases, more verticals, more countries, we’ll continue to invest in that business.
Jennifer Como: Next question Jordan.
Operator: Our next question comes from Will Nance with Goldman Sachs. Your line is open.
Will Nance: Hi guys. Appreciate taking the question. You had some interesting commentary around processing market share gains. Wondering if you could just give us kind of a state of the union of where you stand with that. And if there’s any geographies that are kind of top of mind as opportunities to increase processing share, what would those be? Thanks.
Ryan McInerney: Yes, sure. I mean, we’re very focused on processing share for a couple of reasons, but the one I noted in my prepared remarks is a very important one, which is we can deliver more of our value-added services when we’re actually processing the transaction. Obviously, we earn more yield when we process the transaction as well, just on the core processing of it. But the ability to serve our clients more effectively, deliver them our risk capabilities, our issuing capabilities, our loyalty capabilities and those types of things are enhanced when we actually process the transaction. So, we spend a lot of time on it. I think we’ve made very good progress over the last many years. I mentioned Colombia in my prepared remarks, and Colombia is a good use case.
In a lot of these markets, to really unlock the processing, we have to work with the local processor, which we did in Colombia and then worked with the clients to get them on that processor. They will then test out the transaction, see how they’re working and ultimately move those transactions to VisaNet, which we like. We’ve been very focused in Latin America. We’ve made some good strides in several different countries in Latin America, and I think we continue to have opportunity in Latin America. We’re making strides in Europe, and we’ll continue to focus on processing opportunities in several of the different countries that have local schemes in Europe as well as some places in Asia-Pacific. So, those are some of the opportunities we have, Will.
Thanks.
Jennifer Como: Next question Jordan.
Operator: Our next question comes from James Faucette with Morgan Stanley. Your line is open.
James Faucette: Great. Good afternoon everybody. Just want to circle back on the travel component of cross-border and how you’re thinking about that in the coming year. I can appreciate, as you guys have often said, you’re not necessarily economic forecasters. But can you just repeat for us what your underlying assumption is for the coming year? And then maybe give a little bit of color on inputs of how you’re arriving at that expectation and target for the year? Thanks.
Ryan McInerney: Let me give some context on how we think about just cross-border travel in general, and then, Chris, you can add and/or fill in the blanks on the assumptions that we’ve made for the year. Here’s how we think about it. In and out of Asia, we still have yet to normalize. So, as Chris alluded to or said in his prepared remarks, we have opportunity to continue to catch up to pre-COVID travel levels in and out of Asia. There’s also the opportunity to still catch up into the United States. But more broadly around the world, I would say we’ve got to normalize in terms of cross-border travel. But I think what’s interesting is we’ve normalized at a growth rate higher than pre-pandemic levels. People are traveling international at this new normal at a faster rate than they would have been, all else equal, before the pre-COVID level.
So in a couple of quarters, we still have an opportunity to catch up to what would be normalized levels. Around the rest of the corners around the world, I think we’ve normalized but at higher growth rates than we saw pre-COVID. Do you want to mention the numbers for the year?
Chris Suh: Sure. The only thing I’d really add and I covered a lot of the assumptions in the call commentary. The thing that I might just emphasize is that it is pretty healthy growth. And if you look at what we’ve shared in terms of what we expect the index to grow at four to five points a quarter, I think that does reflect what Ryan said, which is normalized in many cases and continuing to be elevated growth.
Jennifer Como: Next question, Jordan?
Operator: Our next question comes from Jamie Friedman with Susquehanna. Your line is open.
Jamie Friedman: Hi. Thanks for taking my question. Ryan, in your prepared remarks, you called out CyberSource. I know it’s a very important asset for you and always has been. But why is — am I inferring that there’s an increased cadence in the business? And if so, why would that be? Thank you.
Ryan McInerney: Yeah. As I said, Jamie, in my prepared remarks, we’re seeing great strong client demand around the world for CyberSource. Why? I think it’s a result of a lot of the investments we’ve made in the platform over the last several years. We’ve been very purposeful about investing in our omni-commerce capabilities for CyberSource. We’ve been very purposeful in investing in our tokenization capabilities, our risk management and fraud prevention capabilities. And a lot of that has been driven by sitting down with our clients and partners, understanding their road maps, understanding what they needed us to deliver, making those investments and then having success growing with our partners. And in any given market around the world, when clients start adopting the CyberSource platform and others look around at the success they’re having with authorization rates or transaction success or others, that leads to new opportunities, and we’ve had the ability to sell into those.
So thanks for the question.
Jennifer Como: Next question, Jordan?
Operator: Our next question comes from Sanjay Sakhrani with KBW. Your line is open.
Sanjay Sakhrani: Thanks. I have a question on Reg II. Chris, you mentioned no impact yet and also caveated the outlook. I’m just wondering, is there anything that gives you pause there? And then, Ryan, anything you guys are doing proactively to get in front of any adverse impacts? Thanks.
