(Bloomberg) – Visa Inc. is beginning to benefit from the slow reopening of America’s cities, but its executives are not yet willing to predict what the next two months will bring.
Visa said spending on its network increased nearly 10% in recent weeks, after it struggled for months because consumers stayed home and businesses were closed to stop the spread of the coronavirus pandemic.
« Certainly, the future will have associated uncertainty, » chief executive officer Al Kelly said Tuesday in a conference call with analysts. « But we continue to believe in our strategy. »
The recent improvement was not enough for Visa to offer guidance on its performance throughout the year. The world’s largest payment network warned that it is still seeing a persistent drop in spending abroad, as many countries keep their borders closed to tourists.
Visa fell to 2.3% in over-the-counter trading. It closed at $ 196.74 previously in New York, for a decrease this year of 4.7%.
Spending on Visa debit cards increased approximately 25% in the first three weeks of July, compared to a 9% decrease for credit cards. Many consumers received their stimulus payments through a prepaid Visa card or direct deposit into checking accounts, which spurred spending on debit cards, Chief Financial Officer Vasant Prabhu said.
In-store transactions fell nearly 10%, while cardless activity increased 20% in the week ending July 21. A widespread switch to e-commerce works in Visa’s favor because its participation in such transactions is three times greater than at the physical point of sale, Kelly said.
Original Note: Visa Says Spending Improves as Virus Shutdowns Start to Ease
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