Visa payment networks rebound, driven by debit card spending
Robert Armstrong in New York
Spending on Visa’s payment networks has picked up in recent weeks, the company said when it released its March quarter results.
Visa customer spending bottomed out in the last week of March, when it fell nearly 30% from the previous year. But during the week ended April 28, the drop was just over 10%.
The recovery was driven by debit card spending, which is now slightly up from the previous year. Credit card spending remains deeply depressed.
The company also reported an increase in online payments. Transactions without a physical card, excluding travel, have increased by almost 30% in recent weeks.
The spending patterns correspond to those reported by the Visa Mastercard competitor at the start of the week. The results of Mastercard provoked a strong recovery in the actions of credit card lenders.
The company’s revenues and profits, at $ 5.9 billion and $ 1.38 per share, increased by 7% and 6% respectively in the first three months of the year, as much of the activity in the quarter was not affected by the coronavirus pandemic. Both figures were slightly ahead of Wall Street estimates.
Visa shares fell 1% in after-sales trading. They have increased by 16% in the past month.