New York (AP) — Visa’s first-quarter profits increased 27%. This is because economic improvements around the world and an increase in the number of people using digital payments have helped boost the company’s wealth.
The San Francisco-based company said Thursday that it made $ 3.96 billion ($ 1.81 per share) from $ 3.13 billion ($ 1.42 per share) in the year-ago quarter. The results easily exceeded Wall Street’s expectations.
Visa generated just over $ 7 billion in revenue this quarter. This is the company’s record.
Most of that revenue growth was due to a 17% surge in spending on payment networks in the previous quarter to a record $ 3.63 trillion. Visa receives a fee from each payment that goes through the payment network, either with a traditional credit card, debit card, or digital payment.
Like other companies in the pandemic, Visa has seen more and more people around the world shift their daily purchases to online stores and merchants. This was good for Visa’s revenue and helped to make up for the loss of travel-related spending, which usually accounts for a significant portion of the money spent on the network.
“In the future, I don’t think the current pandemic surge will hinder the recovery,” Visa CEO Al Kelly said in a statement. “Economy around the world continues to improve, and cross-border travel will continue to recover as regulations are lifted.”
Travel has recovered significantly in the quarter, although not yet at pre-pandemic levels. The company said cross-border payments increased by 50%.
With the decline of the pandemic and the opening of the economy, Visa’s profits will increase by 27% | WGN Radio 720
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