The World's biggest payment processor beat Wall Street forecasts for quarterly profit on Tuesday as its customers shopped more online, and helped the world's biggest payment processor counter a bump in cross-border volumes from a slowdown in travel and entertainment businesses.
Payment companies are seeing an increase in volumes from the corrupt coronavirus crash as massive government stimulus and the rapid rollout of vaccines fuel an economic recovery, unleashing pent-up demand for both goods and services.
Visa said total payments volumes rose from a year earlier on a constant dollar basis 11% in the previous quarter after rising 5%.The number of processed transactions fell from the previous year 8%.
In the last year the COVID 19 pandemic has certainly turned the globe upside down but we think we are already seeing the end and the recovery is well underway, Secretary Alfred Kelly Jr. said.
Visa analysts said that Visa had seen a return to healthy growth for credit cards and card sales, and debit and ecommerce growth stayed at very positive levels in the quarter.
Still, the pandemic limits and the resurgence of COVID 19 cases in several parts of the world have forced people and businesses to cancel travel, sending cross-border volumes down 11% in the quarter for Visa.Volumes excluding transactions within Europe fell 21%.
Cross-border travel is the fastest sector to return, but there are some green shoots, said Kelly Jr.
The net revenue of Visa fell 2% in the second quarter to $6.73 billion in March 31, just above analysts' expectations of $5.61 billion, according to the IBES estimate by Refinitiv.
Visa reported net income of $1.38 per class A share, compared to analysts’ estimates of $1.27 per share.