Mong

Four Key Points from Visa's FQ109 Conference Call

Hello SocalSurf

a. regards issue of $3 transactions.

MacDonald's (ticker : MCD) turnover consists of a lot of such transactions, between $1.50 and $6, (or possibly more).

If MasterCard had say 10% of such transactions, that would do very well.

b. Marketing costs for small transactions.

Its probably not necessary for a huge marketing budget. Being able to settle little bills would be immediately obvious when you get into the joint.

c. The international market (vs supposedly mature markets)

Not withstanding the maturity of developed markets and the scope in such markets for small transactions, the international market offers potential too.

Small transactions like bus fares, soda drinks, automated coffee vends, are all good things.

(a), (b) and (c) are a compelling business idea, but as you correctly point out, the valuations are a perpetual problem, esp in this market.

Four Key Points from Visa's FQ109 Conference Call

There are two competing trends here, user352167 :

a. the much vaunted "secular trend to plastic".

I personally believe this has some merit to it. Particularly, with regard *small payments*. Ie, no more fiddly change, hence much quicker thru-put at the tills, and less stressed-out cashiers. This is one area Mastercard (and/or Visa) should pay attention to.


A very good area to move into.


b. Against the above mentioned trend is the recession, which points to lowered (or indeed, more accurately thus far, FLAT) spending. This is shown up in MC's/ V's figures.

This is a difficult case, as two conflicting trends present themselves.

Speaking personally, I think trend (a) has a good chance of winning out, and this would be manifested in stock price movements from *time to time*.

This stock is not immune to the current depression at all.


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