Welcome to Visa Inc. Fiscal First Quarter 20 11 Earnings Conference Call. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the
Good afternoon, and welcome to Visa, Angel's 20 11 First Quarter conference call. We look to Tito Saunders, ESA's Chairman and Chief Executive Officer and Byron Pollitt, ESA's Chief Financial Officer. This call is currently being webcast over the Internet. It can be accessed on the Investor Relations section of our website at www of today's commentary was posted to our website prior to this call. Let me also remind you that this presentation may include forward looking statements within the meaning of the Private Securities litigation Reform Act of 1995.
By their nature, forward looking statements are not guarantees of futurements and as a result of a variety of actual results could differ materially from such statements. These include setbacks in the global economy and the impact of new financial regulations. Additional information concerning those factors is available in our last 10 ks and the 10 Q and 8 ks filings we filed with the SEC today. They can be accessed through its website in the Investor Relations section of our website. For historical non GAAP or pro form a related financial information disclosed on this call, the related GAAP measures and other information required by Regulation G of the SEC are available in the financial and statistical accompanying our fiscal Q1 earnings press release.
This release can also be accessed in the Investor Relations section of
With that, all over to Joe.
Thanks, Jack. And as always, thanks to all of you for joining us today. ZO began fiscal 2011 with another very strong quarter delivering net operating revenues of over $2,200,000,000 a 14% increase over last year. As has been the case for several quarters now, these revenue gains were driven by double border volume and Visa process transaction from across the globe. Net income for the quarter was 884,000,000 dollars a 16% increase over the prior year.
This equates to diluted earnings per share of $1.23 a an additional $800,000,000 was the same effect as a share repurchase. Later that month, our Board authorized a $1,000,000,000 repurchase program, which we actively executed upon during the Q1 by buying over $300,000,000 worth of shares. So we're off to its art in terms of returns as cash shareholders. Byron will provide additional detail on the repurchase. Nearly one year ago at Visa's inaugural Investor Day, we laid out our long term strategy that would drive revenue growth.
Key to this strategy is maintaining agenda to accelerate long term growth through new platforms and channels. During that same event, we also made a to further diversify our business including a long term goal of ensuring our revenues more fully reflect global presence. We continue to make steady progress on achieving our aspiration of having more than 50 percent of revenue come from outside the United States by 2015. Consistent with that objective, in this quarter just over 60% of total revenue growth came from Rest of World. VisaNet is the key asset that enables Visa to deliver on these innovation and revenue diversity commitments.
As we invest in long term growth We will maintain the unmatched scale, reliability, security and convenience that we deliver today. Our competitive advantages in this regard are significant. Unparalleled in its capabilities enabling us to deploy those assets and drive more volume and more value to networks in its participants. Importantly, the flexibility of VisaNet allows us to lead the evolution of our industry towards payment into new technologies and form factors that will spur the future 1st, look at e commerce and money transfer, 2 critical channels to driving usage of our products. Growing our business remains a top priority for Visa and will be an area of increased emphasis in 2011.
Our investments in this to date are yielding results as we saw 25% year over year growth in e commerce payments volume globally in Q1. CyberSource enables us to accelerate growth of the e commerce category overall by extending Visa's capability to deliver innovation to merchants, consumers and 40% year over year growth in billable transactions in the Q1. We have also made progress in driving future growth by continuing to expand merchant relationships with new wins such as Hertz and Tommy Hilfiger. We also signed shared lead generation. We've also begun making targeted investments to expand CyberSources' international footprint, including adding personnel to our existing office in Singapore, establishing a legal entity in Brazil and assessing the landscape in our CEMEA region.
While the international build out will take time, we are excited about the opportunities for Money Transfer is an example of our commitment to leading the evolution in payments, giving consumers a new channel to use account program for remittances from the United States to Mexico, which according to the World Bank is the largest remittances corridor in the world. Utilizing the strength of our global network, this program allows consumers in the U. Credit, debit or prepaid account in Mexico in a fast, secure, reliable and cost effective Money Transfer holds significant potential for our business both in the U. S. And globally.
In addition to our strong partnership with MoneyGram, we are currently engaged with other leaders in the field to pursue additional opportunities. As a leader product innovation prepaid is an area where we will continue to invest and foster global growth. In the U. S, our efforts to support issuers of major government prepaid programs continue. With the Bank of America, we recently launched a significant prepaid disbursement card program for the State California Employment Development Department.
Additionally, the state of New York recently announced the launch of a Visa prepaid parents now have the option to receive those funds through a Visa branded prepaid card issued by Chase instead of pocket of the globe and particularly in emerging markets. This is true from Botswana and Georgia, 2 countries that recently partnered with to introduce their 1st prepaid product solutions to India and Pakistan, which are further along authority of India to support that country's massive national program to issue unique identification numbers to local This program has the benefits of deepening our relationship with the State Bank of India, potentially growing the number of transactions We are gratified to see the progress that has been made since we joined the government of Pakistan and United Bank Limited, Bank Alfaala and Habib Bank Limited to launch a national aid disbursement card program after last summer's floods. More than 1,400,000 cards have been issued delivering $317,000,000 in humanitarian aid, one the fastest rollouts of the disbursement program of this kind. All of us who have been reading the news adopters of this innovative payments technology. That said, we announced the commercial availability of mobile contactless payments in the United States and in other select markets.
Last quarter, I said that we were standing on the threshold. And now for the first time in Visa's history, a mobile contactless payment solution is officially included in the list of Visa compliant products available for use by our client financial institutions. Wells Fargo has joined Barricka, JPMorgan Chase and U. S. Bank in piloting technology with their customers.
The solution works with existing contactless payment terminals installed Real Retail outlets worldwide enabling Visa account holders to simply hold up their phone to pay for purchases. We recognize that the U. S. Market is complex and will require an inclusive approach that addresses the specific needs of all stake holders. However, I believe Visa's network and payment expertise offer significant competitive advantage over new entrants and I'm confident that we will play a key role in the evolution of mobile payments in the U.
S. Visa's presence in the mobile channel also offers opportunity to build deeper relationships with existing customers as well as connect new participants with Visa through value added products and services. An example is our recent launch of the Visa mobile iPhone application now available as a free download the iTunes App Store. The application delivers customized discounts and is tailored to consumers' preferences and physical location which enables merchants to reach consumers in a targeted way and gives consumers access to exclusive deals not available to other shoppers. Security is another area in which we are evolving capabilities which will dramatically improve our ability to detect and prevent global electronic payments fraud.
By enhancing the underlying processing platform that powers Visa's advanced authorization offering, we are enabling our issuers to isolate fraudulent transactions from legitimate in real time. And historical data tells us that this can help identify an incremental 29% of the global fraud annually. Not only is this applicable domestically, but more importantly in cross border applications where you have higher of fraud and so have greater levels of denied authorizations. Enhanced measures will allow for a greater number of It's often easy to take our reliable, secure global process and capabilities for granted. But the reality is that as technology enables new payment platforms and competitors, our processing excellence will differentiate adjust competitively.
So in that regard, I'm pleased to report that we had a flawless peak season of transactions processing, which means that we achieved 100% success in authorizing and settling all transactions between Thanksgiving and New Year's Day. This marks the 18th year in a row that we've hit this mark. That captures some of our most recent highlights and there will be more to come. Overall, we believe that we are operating from a position of strength fully utilizing our sets and points of differentiation. Our competitive advantages are significant and will continue to enable us to deliver the payment and commerce solutions that consumers and merchants want.
Finally, I'd like to close with our thoughts about the recent legislative development in the United States. With respect to the Federal Reserve's initial recommendations related to No one. The debit price control legislation has bad policy and requires thorough review and revision before potential implementation. To that end, we're working with the entire industry to help the 112th Congress Federal Reserve better understand how the provisions create significant unintended consequences that will harm Consumers, the economy and financial institutions of all sizes even if those institutions were supposedly exempt up about the unintended consequences of this legislation. Most notably, there's a financial reform, Representative Frank and and amend the debit provisions to allow financial institutions to recover full costs associated with 1 running a reliable and secured debit network.
I've never seen the industry including banks of all sizes disengaged and around working together to improve the outcome. We and others in the industry are looking forward to participating in Representative Bachus' proposed hearing on this legislation currently planned for mid February. As we have seen the more this issue is debated, the more questions about who will really benefit in the end. But we don't know yet the final rules. Visa is working aggressively to protect the interests of and our clients and will support the industry's activities to shape the legislation that impacts community banks, credit unions and larger banks alike.
But no matter the ultimate outcome, I want to say to you that We remain confident in our ability to deliver strong revenue and earnings growth over the long term. We have developed a priority set business strategies and are ready to deploy them when the law is finalized allowing us to utilize
Thank you, Joe. I'll begin with some overall observations. Our business results reflect positive economic which remains global in scope. We saw solid wide growth driven by increases in cross border travel and healthy gains in credit and debit payment volumes. Now let me quantify these trends.
1st, I will cover our global payment volume and transactions for both the September December quarters as well as payment and transaction results for the 1st 4 weeks of January. Following the review of our revenue drivers, I'll cover the financial highlights of our fiscal Q1 followed by guidance dollars was 14% and improved slightly in the December quarter to 15%. We saw the following breakdowns in December quarter figures. In the U. S, payment volume growth was 12%, down slightly from percentage points from the 15% rate in the September quarter.
More recently, through the 28th January, U. S. Payment dollar basis in the quarter as the world continued to travel. And more recently through the 28th January, cross border volumes on a constant dollar basis sustained momentum with a 16% rate of growth. Transactions processed over Visa's network period a year ago and just slightly behind the 16% growth rate we saw in the September through 8th January, process transactions stayed the course posting growth of 14%.
CyberSource billable transactions, business as e commerce activity continues to grow both in the United States and internationally. Now turning to the statements. In our 1st fiscal quarter, gross revenues of $2,600,000,000 were up 13% from in 2010. Net operating revenues in the quarter were $2,200,000,000 a 14% increase over the Q1 of 10, driven by a sustained economic recovery, ongoing secular growth and better than anticipated order transactions. Moving to the individual revenue line items.
Service revenue was just over 1,000,000,000 dollars up 22% over the prior year period. This is reflective of strong payment volume growth in the quarter ending September and The impact of pricing adjustments. Data processing revenue was $844,000,000 up 10% over the prior year's quarter based on processing revenue growth was moderated by the impact of key contract renewals last quarter and by the prospective removal of certain offsetting gateway pass through revenues and expenses. International transaction revenues were up 14% to $630,000,000 due to the sustained improvement in cross border volumes during the period. Client incentives as a percent Gross revenues came in at 15%, little lower than our guidance, but on track with expectations.
We still expect incentives to be in the range of 16% to 16.5% for the entire year. Total operating expenses for the quarter were 8 $72,000,000 up 17% from the prior year, driven by the incremental expense from of the retailer's litigation. Additionally, remember that we announced an earnings As a result, dollars 67,000,000 of revenue and expenses, which were booked in Q1 fiscal year 2010 will not reoccur in Q1 fiscal year 2011. In the 1st quarter, this represented 4 percentage points of revenue growth. For the remainder of the year, these changes in presentation will continue to by our hedging activities and contributed a positive 1% increase compared to the same year period.
While our operating margin for the quarter business. One call out on depreciation and amortization. While the CyberSource acquisition added $22,000,000 of incremental depreciation and amortization expense to the quarter, the $17,000,000 in quarterly amortization for the asset step up that was applied when we first merged in 2,007. This step up became fully amortized at the end of September 2010. Capital expenditures were $75,000,000 in the quarter, representing ongoing investment in technology, infrastructure growth initiatives.
Moving on to the balance sheet. We ended the Q1 in great shape with negligible debt and cash, cash equivalents,
restricted cash and available
for sale investments of remaining 5 quarterly payments with $2,300,000,000 uncommitted as of the end of the Q1. As Joe mentioned earlier, During the quarter, we effectively repurchased approximately $1,100,000,000 of Class A shares at an average per share price of $72.08 This resulted in the lowering of our outstanding share count by 15 point of the fiscal Q1. Management remains committed to returning excess cash to shareholders. Accordingly, we will to be active buyers of our shares in the future at prices that align with our long term view of the value of our shares. At the end of this fiscal approved in October.
Last week, we announced the early release of all remaining after this date, we'll adequately convert to Class A shares. As a reminder, the release does not increase our market, we recently announced the sale of our 10% stake in Visa Vale Issuer CBSS to cards in Brazil. Visa's gross proceeds from the sale are $103,000,000 Upon regulatory approval, we will recognize an estimated pretax gain of approximately $85,000,000 net of transaction costs and to be approximately $44,000,000 As for our guidance for 20.11, given results to date and little incremental clarity from the recent initial Fed rulemaking, we have no changes from our prior outlook. As evidenced by our buyback, we remain optimistic about Visa's growth prospects over the long term. Once the final rules have been promulgated by the Fed, that, we are ready to take questions.
Thank you. The first question comes from Tim Willi with Wells Fargo. Your line is open.
I was wondering if you could just talk a little bit about Money Transfer and how you sort of see your expansion plans not only geographically, but if you could also shed any light on sort of the economics that are shared between And future money transfer partners, how do you think about that occurring as the business opportunity evolves?
Well, I think We mentioned pretty succinctly the arrangement that we have with MoneyGram and much of the revenue that we rate out of that comes through the transactional volume on our cards, both at the front and the back end of the transaction. Beyond that, money transfer is an integral part of our mobile strategy or our mobile technology strategy. Both domestically and outside of the United States, I think that money transfer takes on Different forms depending on what part of the world it occurs in. The transactions or the cards that we provide Pakistan are a good example of that a good example of how something emerging might be manifest. Some of the things that we are Beginning to think about and do in India also would embrace that notion.
As it relates to our financial arrangements between various different parties from a money transfer point of view. I think I'll decline to comment on that at this point in time. But we are
The next question comes from Bob Napoli with Piper Jaffray. Your line is open.
Thank you. Good afternoon. Well done upfront comments, Sergio. As far as your goals for 2015 over 50% Revenue International. It looks to me like I mean, are you progressing faster than you thought?
It looks I mean, your volume is down to 55%, now U. S. Actually down 200 basis points just quarter over quarter. It looks to me like you might get your payments volume under 50% in the U. S.
Maybe in 1 year to year and a half. So are you progressing faster? What is the difference in the revenue yields on the U. S. And international?
Well, there are differences in our yields around the world depending on what business we're in, in various different geographies. Having I mean, as it relates to your question, we have a, I think, goal out there. I think we're well on our way to meeting that goal. We might get it done a little bit faster. Remember, I've talked about country acceleration strategies and been much better in Brazil and Russia than we had thought we'd be doing.
We think that the same thing will happen in Japan. We're looking at several other countries right now. I can't bring that all together as succinctly as you might like and say, hey, we're going to have More than 50% of our revenue coming from outside the United States in 2 years or 3 years, but we are well on way to getting to that point. And let me reemphasize what I said in the comments, and that is that 60% of our growth in the past quarter came from revenue growth came from transactions outside the United States.
The next question comes from Zuckerberg with UBS.
Thanks guys. Good afternoon. Joe, just wanted to pick up on some of the comments you made around what's going on in Washington and just to get your sense if there is truly a genuine effort within Congress to pursue legislation that would actually change the language of the Durbin Amendment? And absent that type of legislation, do you feel that the public period and lobbying by various folks on the Hill would be enough to try and make the final version of the rules much less onerous on the industry than the initial proposals? Because it seems like The Fed kind of came out December 16 and said it doesn't really matter whether or not we like the Durbin Amendment or whether it makes logical sense.
They're simply charged with writing rules that implement the language and intent of the amendment and they kind of said, hey, our hands are tied. So I just wanted to get a sense from your vantage point, is the approach here to really push the legislative path to try and actually get language of the amendment changed as opposed to just work kind of softer lobbying channels, which was kind of done back in November December and at least as it relates to the initial proposals, didn't seem to have a big impact on the Fed's initial decision making.
Well, I learned in November December that it foolish to try to predict exactly what Congress will or will not do. Having said I think I lean toward agreeing with you as it relates to what they are able or not able to do. And while I don't think that dialoguing with the Fed or sending opinions to the Fed or commenting to the Fed about what's out there as we are supposed to do is over. And I don't necessarily believe that some things can't be changed at the margin. I say that the focus would be the congressional focus at this particular time in our position as Well as I think every other financial institution in the United States is that the enactment of this legislation should be delayed And the unintended consequences should be studied and it should require some action to reinstate or to bring into effect anything associated with this amendment predicated on the findings of that study.
The next question comes from Adam Fish, Morgan Stanley. Your line is open.
Thank you. Good afternoon. The question we get a lot is around the fiscal 2012 guide and why you were able to give fiscal 2011 outlook, which theoretically includes 1 quarter of the Durbin impact, but not a view on fiscal 2012. So Byron, my question for you is, can you provide at least some color on the influence to the P and L in 2012 as a result of the regulatory activity? Thank you.
Thank you for asking,
We would like the benefit of being able to interpret the rules that The Fed is promulgated and to put them into the context of the mitigation strategies and our go forward strategies, Irina, that we have crafted knowing that once the rules are clarified, we will know which ones are relevant. We'll be able to much better size the impact by line item and more open about what our competitive strategies would be at that time. We're going to defer at least another quarter before we address 2012.
Having said that, we've repeatedly suggested by buying back our own and by publicly making comments that we believe that Visa will survive and be a very viable But the specifics of that timing of what happens and how things may or may not happen really is, as Byron said, dependent on what the final outcome of everything is currently happening becomes. I will remind you that the majority of our growth in the past quarter did not come from the debit card business that came much of it came from outside the United States and from other initiatives that we have within the United States. And I'll remind that the debit business is about 20% in the neighborhood of 20% of our total revenue. So I and of course, without being specific, we're not going to lose all that business under any So you're going to have to think about it in your own terms, but we are
The next question comes from Zhenhuan, JPMorgan. Your line is open.
Great, thanks. Appreciate all the details. Kind of as a from the Reform Act. And I'm curious, are these mitigation efforts going to come from primarily Diversifying away from the U. S.
And growing the international business like you just talked about, Joe, or a game plan in place in the U. S. To, I guess, reinvent the business particularly in debit. I'm not really looking for details, just trying to rank the 2 in terms of priorities as we think about modeling the mid term the longer term outlook for Visa?
Well, certainly not all of our mitigation efforts will be focused on increasing our revenue It's an important part of who we will be in the future. But there are mitigation efforts that we will back against the business in the United States. And as we've just said, I mean, I'm not going to go
The next question comes from Julio Quinteros, Goldman Sachs. Your line is open.
Sure. Hey, Brian, real quickly, two expense items, a little bit higher than what we were looking for here on the personnel side. Obviously, it looks like you guys have the inclusion of the CyberSource stuff and talk a little bit in 10Q about some additional headcount. And then on the other line item, I guess if you could also address the Digi side with a comment about the reserves for potential government assessment, how big is that? And is that a recurring item or was this a one time item?
So on the Personnel side, the major call out is we had we're lapping a quarter in which we did not have CyberSource. So we are that's the single largest component being added to the personnel line year over year. And then in addition to that, We are actively staffing our growth initiatives outside the United States. And so as we continue to put more boots on the ground to drive Somewhat amplified by the weakening U. S.
Dollars. So you're seeing some foreign exchange impact in that line as well. With regards to the G and A line, there are always going to be some factors that are non recurring explanation is non recurring accruals related to those matters.
The next question comes from Rod Bourgeois with Bernstein. Your line is open.
Hey, guys. Turning away from The Durbin Amendment stuff, can you give us an update on the latest status on the merchant litigation case in the Brooklyn Court? And can you give us any thoughts on how to dimension the possibilities for a settlement and what forms the settlement
Thanks.
Well, unfortunately, the answer is no. I can't answer Any of those questions, obviously, the litigation continues and there are conversations. But beyond that, I really would be foolish to say anything else.
If I could just add one comment actually to Julio's prior question. Julio, the G and A also is impacted by the addition of CyberSource. So literally all the line items in the P and L are being impacted by the pickup of CyberSource expenses. So that's another important driver of that line.
The next question comes from Bruce Harding, Barclays
Let's see. I guess, we agree with your position on the Durbin legislation and unintended consequences. But in the event that the Fed rule stands As is and they extend the exclusivity issue to Signature Debit. What are the technology difficulties or what would
you be lobbying to the Fed right now in
there's only 2 networks able to provide that, correct? So wouldn't that just solidify the strength of the oligopoly that they're worried about policing and who pays the cost to change the cards? Would that be incurred by the banks? And how long would it take to implement that change? Would it take would that be something that could be turned around by the banks in terms of reissuing new cards with 2 networks within a month or is that a 6 to 12 month issue?
And just is true that the merchant acquirer decides on the routing anyway, and wouldn't they be incentivized to go with to stick with you since of the merchant acquirers, are your customers currently and would want to get the discount? Thanks.
Well, I mean, You've asked a lot of extraordinarily good questions and therein lies the dilemma. I mean, everything you said is Reasonably accurate. We are in a very good position. Regardless of what happens, I don't think you're going to see any kind of an overnight deterioration. And I think you're going to see us doing everything that we can to be the network of choice.
And I think that there are many compelling reasons that we can put forth that will help us secure that position. And whatever happens, we look forward to using our people and our assets, which we believe in this regard are second to none to make sure
The next question comes from Jim Kossain, Bank of America Merrill Lynch. Your line is open.
Thanks and thanks for all the color today. Byron, can us a sense of what portion of your U. S. Revenue is from issuers and what portion is from acquirers? Again, just on the US side.
Thanks.
Yes. Jim, for some time, it Plus or minus roughly equal, plus or minus. It has not materially When we first talked about that, I think
it was
Caballo. It might be a bit more if I were to round it, we would round a bit more to the acquirer, but there's been no material change since we first voiced that ratio about a year ago.
Comes from Craig Maurer, CLSA. Your line is open.
Yes, good evening. I wanted to follow-up On your discussion mobile, considering we're likely to see the likes of Google and Apple come out in a big way supporting contactless payments this year,
how do you expect or
how do you reterminalization to occur? Do you expect there to be Subsidies to get merchants involved who will likely be offering those subsidies and will we see the of Visa's marketing in the U. S. Changed to support some of the issuers that are trying to roll this out? Thanks.
Well,
Visa is supportive of chip technology And on a global basis. Timing of Lecurne how it will occur between the Card Act and the Durbin Amendment has stopped some issuers as it relates to what How do they want to invest? I don't think that there's any magic wand that is going to automatically make chip terminals or contact chip terminals automatically appear in an overwhelming way in the United States. I think that that will indeed take some time and I think most Issuers and even merchants believe that to be the case. I'm not certain, but I actually I think there are somewhat pure contactless terminals today than there may have been a year ago.
So we've got there issues in that regard as it relates to standards, chip standards. There isn't one contactless chip standard around the world. And so, All of this has to be reconciled before it becomes we become a country where people walk around cell phones and just automatically walk into face to face merchants and swipe their cell phone on a contact list. That being said, there is an Momentum to mobile technology and weather and and contactless chips and the service that is beginning to occur and it will manifest itself over some period of time. We are extraordinarily involved in those efforts and things that doing in that regard will become apparent as each quarter goes on.
And we're reasonably confident that we have invested the right time and effort and capital into taking our business in
The next question from Sanjay Sakhrani with KBW. Your line is open.
Thank you. I'm going to ask some easier questions, just model related. Byron, on that personnel color that you provided. So that delta year over year, is that something we should extrapolate for the remainder of the year across the quarters? And then you mentioned the rebates kind of coming in within the same range you guys had articulated.
That would suggest that the Next three quarters run rates are probably going to be higher than what we saw in the Q1 obviously. Is there any kind of that we should expect within that trend? And I guess that's it. Thank you.
Yes. So on the first one with regards to personnel, as you readjust your models for that line item, Now as you readjust your models for that line item, it would make sense to look at the Q4 of last fiscal year, recognizing that we integrated CyberSource in, I think, the last 2 months of the quarter. So you should see a beginning up in personnel expense. The next quarter that so the quarter just completed, that's What you should be thinking about going forward recognizing that there's always going to be some degree of lumpiness in personnel as we make various accruals, but I would key I would we would suggest keying more off the Q1. The as it relates to Our word our expression is client incentives.
I think another company uses rebates. With regards to client incentives, this is As we've talked about historically, this is some this is a category that is that tends to be a bit lumpy quarter to quarter based on when certain contracts are signed, when renewals are signed. And so, are signed, when renewals are signed. And so, rather than seasonality, let's use it's a bit lumpy and therefore we came in a bit lower than our full year guidance in the Q1. Therefore, you should see some in future quarters, we would expect it to come in a bit higher to average out somewhere between 16% 16.5% on a full year basis.
The next question comes from Chris Mamone with Deutsche Bank. Your line is open.
Thanks. Just a question on rest of world volumes, a nice pickup in the most recent data. So just wondering if you had anything to call out there as what's sort of That's solid growth rate.
So on Rest of World credit volume, looking at it on dollar basis, it has been pretty steady lows again, a constant dollar basis, pretty steady double digit, mid teen double digit through 2010. And January picked up a little bit, but that's no, the Q1 picked up a little bit. So it looks standpoint and from a cross border standpoint.
Next question comes from Bryan Keane, Credit Suisse. Your line is open.
Hi, good afternoon. I guess just two questions. I First, do you have any indication from Washington that getting the Durbin Amendment delayed is a realistic outcome? Meaning, is there real legs behind this right now? And then secondly, just on mobile payments, how will the economics change with the competitors getting involved like Apple, Nokia, ISIS and others?
Or do you think the economics of Visa like they have in the physical world will be the same in
I can't Can't predict what Congress is going to do. I can remind you that there is I think that you will see some reaction from consumers because in our opinion, consumers have been thrown on the bus in this legislation. And so in that regard, I would have to think that this is through some of the conversations we've had and because it is the right thing, and I want to Emphasize it is the right thing. We're on the right side of this issue. I'd like to think that something will happen.
And I would like to think, as I said earlier, that it will take the form of a day in the implementation of the legislation until the anybody and that this is a sign because none of those things would be true. So now that I've answered that, I forgot the second part of mobile. That's an interesting question. But when you look at mobile technology, as I said just a few minutes ago, I mean, it's coming or it's here, however you want to define it. It makes it easier for people to shop, it opens up new avenues of things that may be purchased Through your wallet.
And there are a lot of technology companies that have capabilities in this regard. Visa also has significant capabilities. We still have VisaNet. We still have And we have been vigorously looking at him on the technology. We think we're going to be in a very good position as it relates To this to the evolution of mobile technology in the electronic payments business, I think that it will afford us some revenue Tumi's that we currently have and I think that will be a very positive thing.
Will it change some of the other economics we have? I mean, it It could. But when we look at the overall landscape, we're very comfortable that this is a positive thing for Visa and will be And remember, we do not talk to these other entities that you're referring to, and they do need Some of the capabilities that we are either going to have to provide them themselves or they're going to have to come to somebody with us to get And so there are compelling reasons for partnerships to occur. A significant even when you look somebody like PayPal, let's not forget that a significant amount of their business is driven through Visa, Mastercard and that isn't about to change in the near future. And I know that's not totally analogous to mobile technology, but I think that what Visa privacy and a security point of view.
I don't think we're going to let that go.
Jose, we have time for a final