In this news, we discuss the Visa profit exceeds estimate as payment volumes rebound
(Reuters) – Visa Inc beat Wall Street estimates for quarterly profit on Thursday, as an increase in online spending helped a pickup in payment volumes following the coronavirus-induced crisis.
The world’s largest payment processor said total spend rose 5% in constant dollars from the previous year, after falling 10% in the previous quarter as customers stayed at home due to the health crisis were buying more on the web.
“We have seen continued strength in debit and e-commerce volumes as well as resilient domestic spending in most countries,” said CEO Alfred Kelly Jr.
Visa shares rose 1.2% on expanded trading, as the company said the number of trades processed rose 4% and approved a new 8 billion share buyback program. of dollars.
But cross-border volume fell 21% as the pandemic continued to hurt travel demand, with non-transaction volumes in Europe collapsing 33%.
The resurgence of infections in several countries has led to border closures, which mainly impacted the card spending on show, Visa said. A card-present transaction is a transaction in which a customer physically swipes a card to make a payment.
Visa reported net income of 1.42 per Class A share for the first quarter ended Dec. 31, compared to analysts’ estimate of $ 1.28 per share, according to IBES data from Refinitiv.
The company’s net sales fell 6% to $ 5.69 billion.
Report by Noor Zainab Hussain in Bangalore; Editing by Aditya Soni
Original © Thomson Reuters