Visa has reported a 300 percent increase in working capital efficiency.
Takeaway Points
- Visa reports 300 percent increase in working capital efficiency.
- Virtual cards saw a 32 percent YoY increase in usage and were linked to top-performing Index scores.
- On Oct 3, 2024, Visa said that it will report its fiscal fourth quarter and full year 2024 financial results on Tuesday, Oct 29, 2024.
Visa increase in working capital efficiency
Visa, a global leader in digital payments, on Monday announced the findings from its second annual global Growth Corporates Working Capital Index. The findings showed an astounding increase in working capital usage and efficiency, with an 81 percent adoption rate of at least one working capital solution in 2024. Beyond increased adoption, top-performing companies saved an average of $11 million in interest and fees—a YoY efficiency increase of 300 percent.
The Index surveyed nearly 1,300 CFOs and Treasurers across eight industry segments and 23 countries, all representing “Growth Corporates,” organizations that generate between $50 million and $1 billion in annual revenue.
Lauren Hewings, Visa’s Head of Working Capital Solutioning, commented, “Growth Corporates have unique needs and capabilities that often fall through the cracks between small businesses and enterprises. This valuable segment, which really represents tomorrow’s enterprises, has historically lacked access to customized, industry-tailored products and solutions from their financial institutions; however, increasingly, they are demanding them from their financial institutions as they seek flexible, on-demand methods for optimizing cash flow to drive strategic growth.”
Visa Virtual Cards
The digital payment company explained that its virtual cards saw a 32 percent YoY increase in usage and were linked to top-performing Index scores. Surveyed Growth Corporates that used virtual card solutions saw a higher probability of reduced Days Payable Outstanding (DPO), strategic utilization of working capital, better cash flow predictability, more supplier integration into payment systems, and early supplier payment.
Five out of eight industries represented by survey respondents mentioned lengthy approval processes and uncertainty about approval outcomes as their most significant obstacles, as respondents expressed the need for bankers with both the lending experience and working knowledge of their industry and region to design working capital solutions that fit their business requirements, Visa said.
Visa to Announce Fiscal Fourth Quarter and Full Year 2024 Financial Results
On Oct 3, 2024, Visa said that it will report its fiscal fourth quarter and full year 2024 financial results on Tuesday, Oct 29, 2024. After market close, Visa will furnish the results with the Securities and Exchange Commission and post them, along with accompanying financial information, on the Visa Investor Relations website.
The company said it will issue a newswire alert when the earnings materials are publicly available, including a link to those documents.
Visa’s executive management team will then host a live audio webcast beginning at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss financial results and business highlights, the report stated.
About Visa Inc.
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement.
