Visa Inc on Thursday fell short of analysts' estimate for first-quarter revenue and said revenue this year would be crimped by incentives it provide to banking clients, sending its shares down nearly 3 percent.

The world's largest payments network said it now expects client incentives as a percentage of revenue to be in the high-end of its forecast range of 22.5 percent to 23.5 percent in 2020.

Client incentives are what Visa pays out to their issuing bank partners to increase its total payments volume (TPV), and when a partner renews, Visa's TPV goes up. In October, Visa said about 15-20 percent of its TPV is slated to be renewed in the first half of 2020.