Case Interview Question #00406: Visa Inc. (NYSE: V) is a multinational financial services corporation headquartered in San Francisco, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards and debit cards. In 2008, according to The Nilson Report, Visa held a 38.3% market share of the credit card market and 60.7% of the debit card market in the United States. In 2009, Visa’s global network (known as VisaNet) processed 62 billion transactions with a total volume of USD $4.4 trillion.
Question #1: Suppose that you are a consultant hired by Visa to help them develop strategic plan to increase the profitability of their credit card business on an individual account basis. How would you go about it?
Profit structure for a credit card company on an individual customer basis comes from two parts: