VISA

Good afternoon everyone I am Karishma from Group 7 are going to talk about brand Visa.
VISA which is Visa International Service Association
VISION: Visa’s vision is to be the best way to pay and be paid, for everyone,
everywhere.
MISSION: We are a global payments technology company working to enable
consumers, businesses, banks and governments to use digital currency.
It is an American multinational financial services company headquartered in Foster City,
California, United States.
It was launched in September 1958 by Bank of America (BofA) as
the BankAmericard credit card program. (Joseph P. Williams,ho was the leader of Bank of
America’s in-house development think-tank, Customer Services Research Group.)
Visa is the world's largest card payment organization (in debit and credit cards combined)
Also visa enables electronic funds transfers all over the world, and it can be mostly via Visa-
branded credit cards, debit cards, and prepaid cards.
(slide)This are the major milestones of the company
• As said earlier in 1958 first consumer credit card programme was launched in U.S.
• In 1974 IBANCO The International Bankcard Company forms to administer the
BankAmericard programme globally.
• In 1975 the first debit card is launched. 
• In 1976 BankAmericard becomes Visa, a simple name that sounds the same in every
language, identified by a blue and gold flag.
• Visa launches an ATM (automated teller machine) network, in 1983 providing 24-
hour “anytime, anywhere” cash around the world.
• In 1986 Visa went global and develops multiple-currency clearing and settlement in
21 currencies. (payment in various currencies through cards)
• (slide)Major milestone In 1988 where Visa sponsors its first Olympic Games in
Seoul, South Korea, and the Olympic Winter Games in Calgary, Alberta. This helps
VISA in building a strong brand and attracting more consumers.
• In 1997 Visa’s total payments volume reaches US$1 trillion, which is a major
milestone for the industry.
• 2001 Visa reaches 1 billion issued cards and launches the Zero Liability policy, which
protects cardholders from liability for fraudulent charges.
• 2007 Regional businesses around the world were merged to form Visa Incorporation
and, in 2008, the company went public in one of the largest IPOs in history.
 • 2008 Visa launches the Visa mobile platform to speed up the adoption of mobile
payments and value-added services
• 2016 Visa completed the acquisition of Visa Europe for dollar 23 billion.
• And in 2021 they rebranded themselves as a payment technology company rather than
a financial payment company.
(slide)This image shows the evolution of visa from various years.

(slide)Now the Target audience of visa

Visa has 3 major segments B2C B2B and tertiary market

B2C market i.e consumer payments comprises of Debit cards, Credit Cards, Visa Prepaid
cards are the core business of visa Facilitating global commerce through the transfer of value
across a worldwide network.

Apart from this visa has Click to pay services, person to person payment, Tokenisation and
Cryptocurrency are some other Consumer payment segments.

They also introduced

process through which sensitive information such as card

Tokenisation
number or account number is replaced with a unique set of characters
like cross that retain all the essential information without
compromising the security of the sensitive information.
Cryptocurrency payment gateway for digital currency

B2B market Business payments that are card-based, domestic accounts payable/accounts
receivable and large ticket cross-border supplier payments

• B2sB- Large businesses paying their vendors, suppliers, contractors and other partners
• D2C- Pay-outs via insurance disbursements, refunds, reimbursements, payroll and
more without the need for paper checks
• P2P person-to-person- Payments between friends and family domestically and
internationally
• G2C government-to-consumer- Government pay-outs for unemployment, aid and
stimulus payments

Tertiary Market (provides security and services for transactions)

Risk & Identity Solutions- Visa’s risk and identity solutions transform data into
insights for near real-time decisions and make account holder authentication
easier, assisting clients in preventing fraud and protecting account holder data.

Issuer Solutions- visa provide a range of services and digital solutions to issuers,
such as Visa Debit Processing Service, account controls, digital issuance, branded
consumer experiences and buy now, pay later (BNPL) capabilities
 Advisory Services- they identify actionable insights, make recommendations and
help implement solutions

(slide) this is the visa segment chart, consumer payments i.e b2c which has $18trillion in
consumer spending and then the major segment which is new flow i.e b2b which
represents the $185 trillion opportunity and then value added services i.e tertiary
market.

(slide) Brand positioning: Visa has long stood for TRUST, SECURITY, ACCEPTANCE
and INCLUSION (offer minimum amount credit card irrespective of their financial
capability).

These core values, in addition to the goal of enabling access for everyone to participate in the
global economy, will be expressed through a modernized, dynamic visual brand identity. 

As said earlier in history slide VISA don't regard themselves as a financial card company,
they are a Payments Technology Firm.

The ‘Meet Visa’ campaign shares an initial glimpse into the evolved visual brand identity.

To capture the bold ambition of Visa with brand evolution as a way to express what they
stand for

(slide) The campaign will run across film, TV, digital and OOH(out of house ad- outdoor
advertising, refers to advertising that reaches consumers outside their homes. Billboard)

• Over the course of 2021, Visa’s new brand identity will become visible in all 200+
countries and territories Visa operates in, cutting across the company’s primary
business strategy encompassing:
• Consumer payments, focusing on expanding access and moving the $17 trillion spent
in cash and checks globally to digital payments.
• New payment flows including cross-border person-to-person payments and a range of
value-added services
• A diversity of offerings and solutions through burgeoning partnerships with fintechs
and established brands, relationships with governments around the world and
innovative technology built for the future.
(slide) Brand equity in the Marketing strategy of Visa (this means what ethe brand has
earned)
• Visa has been ranked 27 in the list of most innovative companies in the world.
• It is ranked 30th in the list of world’s most valuable company as per Forbes magazine.
• Its has been ranked 6 in BrandZ Top 100 Most Valuable Global Brands ranking
• Its ranked 61 in Interbrand’s 2016 Best Global Brands.
 • It has been valued at $ 441.42 billion based on market capitalization method. (As of
August 2022)
(Slide)SWOT

Strength:

Excellent distribution network – Ever since the VISA financial service has been established

it has built up a reliable distribution network that can reach to huge potential market.

 Strong cash-flow – Visa has a strong free cash flow that provides the resources of the
company to expand into new projects.
 Innovation – VISA has a successful track record to develop new innovative products.
 Excellent brand portfolio  VISA has been highly focused on building an
excellent brand portfolio. This is the main strength of VISA. This helps the
organization to expand into further categories. ( A brand portfolio is known as the
leading brand of a company that covers all other brands or companies operated by
a company)
 Automation – All the activities of VISA are automated thereby bringing consistency
of quality to Visa Inc. products. It has helped the company to scale up and down as per
the demand conditions that are seen in the market.
 Customer satisfaction – VISA has an excellent CRM in place that has helped them to
achieve a high level of customer satisfaction and good brand equity among the
probable customers.
 Sponsorship – VISA has sponsored many sports events at the international level.
 Secured data center – VISA’s data centers are secured heavily against crime, natural
disorders, and terrorism. It can handle about 30,000 simultaneous transactions and
about 100 billion computations per second.

Weakness:

 Risk – VISA is highly vulnerable to risk and fraud. Hence VISA transactions might
lead to chaos at times.
 Unsuccessful in integrating firms with many work culture – VISA is not highly
successful at integrating firms with many work culture.
 Gaps seen in product range – There are a few gaps seen in the products sold by
VISA. This can be a weakness as this lack of choice can provide a new competitor a
position in the financial market.
 Research and development – Investment in research and development is little low as
compared to the fastest growing players in the financial industry. Although VISA
spends a good amount on research and development, it fails to compete with its
competitors in the industry with respect to innovation.
 Dependency – VISA has a heavy dependency on contractual relationships with large
clients.

Opportunities:

 New technology – VISA’s new technology offers an opportunity to practice

distinguished pricing strategy in the new market. It enables to maintain its loyal
 customers by providing great service and also new customers by means of value-
oriented propositions.
 New markets – VISA opens up new market due to government agreement. This has
helped VISA to adopt new technology standard and also government free trade
agreement. This has helped VISA to provide an opportunity to enter into a new
emerging market.
 Low inflation rate – over the period of time The low inflation rate has bought more
stability in the market thereby enabling credit at a low-interest rate to the customers of
VISA.
 Digital currency – The widespread use of digital currency at the international level has
seen a huge opportunity for VISA. By this, customers can easily transact money at any
part of the world. 

Threats

 Global transactions – As VISA is being operated across the globe, it is exposed to

currency fluctuations. This happens in a volatile political climate in many markets
worldwide.
 Less skilled workforce – VISA faces a shortage of skilled workforce in many global
markets that are a threat to the current products.
 Competitive environment – The highly competitive environment in the financial
market is a big threat to VISA.

(slide) Challenges:

1. Interchange fees & transaction routing regulations imposed on Visa- example- govt
asked visa and mastercard to base there transaction database in the country or prohibit
them from issuing new cards, which happens to mastercard.
2. Domestic card service promotion & policies by various countries – rupay card by the
govt.
3. Growing real time payments & its potential as an alternative of Visa cards- such as
UPI network in india has created a major shift in the payments ecosystem
4. Fintechs disrupting the payment value chain by providing rapid innovations- example
slice and lazy pay provide low value credit card to distrubt visa's credit card market
5. Global card networks are increasing their focus on value added services- such as
providing data insights etc.
6. Emerging market saturation in B2C market by various local players such as Rupay in
India, Discover in usa, Unionpay in China, JCB in Japan.
7. New market opportunities In B2B financial card payments.

Major success:

• VISA makes money on payment volumes, transaction processing, and value-added

services. 
• Operates an open-loop network and has a transaction-centric business model.

(Open-loop networks are multi-party and operate through a system that

connects issuers and acquirers. The network owner manages the information
and flow of value between them.
 VISA earns revenue primarily on the payment volume and the
transaction volume carried out through their cards. Hence, Visa
has a “transaction-centric” business model.)

• Built a global processing infrastructure consisting of multiple synchronized

processing centers.
• Partner with fintech and tech giants by making their infrastructure useful.