Visa Inc. ($V$) saw its stock price plummet by 5.03% in pre-market trading on Friday, as investors reacted to China's announcement of expanded visa-free transit access for multiple countries, including Indonesia. This move by China could potentially impact Visa's international transaction volumes and revenue streams.

The National Immigration Administration of China reported that Indonesia has been added to the list of countries granted visa-free transit access, bringing the total number of countries with such privileges to 55. Indonesian travelers will now be able to enter China through 60 ports across 24 provinces for stays up to 10 days before transitioning to a third destination. This policy change follows China's recent introduction of visa-free access for citizens of 11 countries in Southeast Asia, demonstrating the country's efforts to boost tourism and international travel.

The market's negative reaction to Visa's stock appears to stem from concerns that increased visa-free travel could reduce the demand for Visa's services in processing international transactions. As one of the world's largest payment processors, Visa generates significant revenue from cross-border transactions and currency conversions. The expansion of visa-free travel programs could potentially lead to a decrease in the number of visa applications and associated fees, impacting Visa's bottom line. Additionally, travelers might opt for alternative payment methods or local financial services during their visa-free stays, further pressuring Visa's market share in affected regions.

While the full impact of China's visa policy changes on Visa's business remains to be seen, the sharp stock price decline suggests that investors are cautious about the potential long-term implications for the company's growth in the Asian market. As global travel continues to recover post-pandemic, the financial services industry will be closely monitoring how such policy shifts affect international payment ecosystems and consumer behavior.