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00:00What's going on with consumers so tell us what you're seeing . Actually you know despite all of this thought that there is a recession coming. We don't see it you know. In fact our fourth quarter numbers which for us were September 30 numbers were better than the third quarter. The U.S. was up 8 percent though international is up 12 percent excluding China. Europe was up 13 percent. When you exclude the U.K. which has done a little bit of self-inflicted wound to sales along with everyone that we're talking so much about recession. I think it must just be the cycle. You know it's been a long time that we've had this upswing. And I think that people just look at the history and say what's it's got to go down at some point. But you know the consumer has stayed extremely strong around the world. The only place we see any weakness is in the UK. And as I said that's kind of related to the whole Brexit situation. But other than that the world looks pretty darn good. What are they buying . Where is where's their money going. In our world there's a couple of things that are really dry driving the increases in the number of transactions we're seeing. One is obviously e-commerce. You know people are jumping on their phones and jumping on their iPads and jumping on their computers and then buying in big ways. We're seeing though every month those numbers the growth in e-commerce anywhere between two and three times the growth in the face to face world every every single month. We're also seeing people continuing to travel. There was a real downturn in travel back in December and January. If you remember that's during the height of the U.S. China trade talks and ISE during the height of the Brexit conversations . And then we had the 45 day U.S. government shutdown and almost immediately consumers started to just stay at home and not travel. But we've seen that pickup especially in the last six months. And that's always a good sign that when people are willing to leave their home country and go to another country that's a that's a very very good thing. The other thing that we're seeing is an increased amount of smaller ticket items being used using digital payments. And a lot of that I think is driven by mass transit. We are really excited about mass transit. Just in the last 90 days we've seen open systems in Enviro and Sao Paolo. We started in July I guess June here in the MTA in New York where we're only had 18 stations from Grand Central Station to Atlantic Avenue in Brooklyn. But by the end of October of 2020 the MTA hopes to be in all 424 subway stops . Are people using it. Absolutely. Of tap and go a little bit tap and go. It's so convenient. It's better experience for the merchant. It's better experience for the consumer. We had a million transactions in the first seven weeks and we had no . And that's at 18 stations. It's truly amazing. I absolutely continue to grow. Tap to pay has grown hugely around the world with the exception the United States raised. Now what is it about the United States which is usually pretty innovative and in many ways an early adopting in terms of technologies. Why is the U.S. lagging. The U.S. is lagging because it first it goes back. You have to go back about six or seven years at least where the U.S. was much slower to adapt. Chip in the card and the. It took so long to adopt Chip but that point time people around the rest of the world were moving past actually just dipping the car to actually tapping. And the reality is that the other countries have moved hugely ahead of us. You have countries like Poland and Hungary that are over 90 percent tapped to pay in the face to face world. In the U.S. we have a very interesting situation. The vast majority of the businesses are set and plumbed to be able to facilitate tap to pay. It's replacing the hundreds and hundreds of millions of cards. And the banks rightly so want to do it on their normal cycle. So by the end of this year we'll have over 100 million cards in the United States that will be tapped to pay and enabled. And by the end of next year we'll be over 300 million. So this will take a little time. As the world eventually become China we were conversations. We constantly talk about it. It's in the magazine often that basically you've got your phone in China . And that's that's all you need. They don't want cash or any other kind of mode of payment. Is that will we move towards. I don't think fully. You know the interesting thing about payments and I've been in and around this industry for three and a half decades now it is an extraordinarily local business. It is driven by tradition. It's been it's driven by laws. It's driven by history. So you look at some of the biggest economy is in the world Mexico Germany Japan. They're huge cash societies still to the till this day. Right. And there there have been slow to adopt that. I think over time they'll that adoption will pick up. But I think there's still for a long period of time going to be a place in the world for all kinds of different form factors with certainly a card and a phone probably continuing to be the predominant one. What's the biggest existential threat to your company or industry . Well I think cyber security is always at the top of my list . You know the bad guys unfortunately have access to the same technology. The good guys do. And when we look ahead over the next decade you're gonna have 5G really take off Internet of Things take off artificial intelligence and machine language getting to the next level quantum computing perhaps starting to show up and all of that technology is going to create enormous opportunity for value to be delivered to consumers. But it's also going to create potential risks to technology based infrastructure companies like we are .

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Visa CEO Al Kelly Sees No U.S. Recession Coming

Visa CEO Al Kelly says despite worries about a recession, consumers aren't slowing down their card swiping- or, increasingly, tapping. He sat down with Bloomberg Businessweek hosts Jason Kelly and Carol Massar for BW Talks. (Source: Bloomberg)

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