Visa announces a 37% rise in processed card transactions
The strong rise in May could be linked to lockdown eases in many countries.
The Covid-19 pandemic has hit the global economy hard. However, Visa (NYSE: V) is not facing this situation. Visa reported a whopping 37% growth in May. Compared to its April growth, Visa has seen a jump. The payment volume in the United States improved by three points in May compared to April. However, Debit stayed high at 151% of 2019. While Card-present increased by 4 points to 113% of 2019 compared to April, Card-not-present remains strong with 159% of 2019. Additionally, Visa continues to shine in value-added services and is expected to grow 20% in the next quarter. Although the COVID-19 pandemic has accelerated digital payments, the higher fees for using Visa & Mastercard (NYSE: MA) have resulted. the cross-border volume severely affected As a result, the COVID-19 is proving to be the great enemy of travel companies. Globally, the payment volume in May was stable compared to the trends in April. With transactions increasing worldwide, particularly in Europe, global transactions in May were 121% from 2019. However, payment volumes in India and other Asian countries showed no improvement due to new restrictions being introduced to contain the Covid-19 were imposed. Excluding intra-European transactions, the cross-border volume rose 6 points in May to 85% from 2019, including the volume with non-existent cards, which remains at 162% from 2019. In addition, travel-related transactions improved by 5 points compared to April. As a result, the total cross-border volume rose to 98% in May. Although the cross-border volume increased in April, the situation is expected to improve in the coming months. According to Chetan Woodun, an SA contributor, Visa usage is increasing as financial institutions issue digital currencies, and digital currencies will continue to surge at a whopping CAGR of 82.4%. Also, since cross-border payments are less expensive than traditional ones, Visa will have more good days. According to Librarian Capita, another S.A. Contributor, Visa EPS will grow 20% in the third quarter.