SUBSCRIBE

CATEGORIES

Visa emerging from pandemic ‘storm’ as spending volumes recover

imageStock Markets45 minutes ago (Apr 27, 2021 07:05PM ET)

(C) Reuters. FILE PHOTO: A Visa credit card is seen on a computer keyboard in this picture illustration

By Noor Zainab Hussain

(Reuters) – Visa Inc (NYSE:V) is emerging from the COVID-19 pandemic, its top boss said on Tuesday, as a surge in online shopping helped the world’s biggest payment processor beat Wall Street estimates for quarterly profit and counter sluggish travel spending.

Payment companies are seeing an uptick in volumes from the coronavirus-induced slump as massive government stimulus and speedy vaccine rollouts fuel an economic recovery, unleashing pent-up demand for both goods and services.

“Visa has weathered the COVID storm and is emerging from the pandemic even stronger,” Chief Executive Officer Alfred Kelly Jr told analysts on a call.

Visa’s total payment volumes rose 11% on a constant dollar basis from a year earlier, its biggest jump since the start of the pandemic.

It saw a return to positive growth for credit and card present transactions, while debit and ecommerce also grew, Kelly Jr said.

U.S. debit cards volumes soared 31% to $806 billion.

“If you leave out the travel part of the business, the rest of the business is beginning to look as if the pandemic never happened,” Chief Financial Officer Vasant Prabhu told Reuters.

Restrictions and a resurgence of infections in several parts of the world have hit travel plans, sending cross-border volumes at Visa down 11%. That was still better than the past two quarters.

Prabhu said the recovery continued despite closed borders, with travel to and from the United States and Latin America providing the biggest boost.

India’s second wave was affecting Visa’s business in the country “without a doubt”, he told Reuters.

“It’s probably going to affect travel in and out of India. Whether it will have a broader impact on our business … it’s too early to tell.”

Visa reported net income of $1.38 per Class A share for the second quarter, compared with analysts’ estimates of $1.27 per share.

Visa emerging from pandemic ‘storm’ as spending volumes recover

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.