Por Noor Zainab Hussain
Apr 27 (Reuters) – Visa Inc is emerging from the woes caused by the COVID-19 pandemic, its chief executive said on Tuesday, as a surge in online shopping helped the world’s largest payment processor overcome Wall Street estimates for quarterly earnings and counteracting slow travel spending.
Payment companies are seeing a sluggish increase in volumes since they sank from the coronavirus, as massive government stimulus and rapid deployment of vaccines fuel an economic recovery, unleashing pent-up demand for both goods and services. .
Visa’s total payment volumes grew 11% on a constant dollar basis from a year earlier, its biggest jump since the start of the pandemic.
“Visa has weathered the COVID storm and is emerging from the pandemic even stronger,” company CEO Alfred Kelly Jr. said in a call with analysts.
The firm posted a return to positive growth for face-to-face card and credit transactions, while debit and e-commerce also increased, Kelly Jr. said in a statement. Debit card volumes in the United States rose 31% to $ 806 billion.
However, restrictions due to the pandemic and the resurgence of COVID-19 cases in various parts of the world have forced individuals and businesses to suspend travel, causing Visa’s cross-border volumes to drop 11%. However, that level is still better than in the last two quarters, when volumes collapsed.
Visa’s net revenue fell 2% to $ 5.73 billion in the second quarter ended March 31, slightly more than analysts’ expectations of $ 5.61 billion, according to IBES data from Refinitiv. The company reported net earnings of $ 1.38 per Class A share, above analyst estimates of $ 1.27 per share.
(Report by Noor Zainab Hussain in Bengaluru, Edited in Spanish by Manuel Farías)