Visa's fiscal third-quarter profits rise 9% as payments become increasingly digital
Payment processing giant Visa Inc. said its fiscal third-quarter profits rose 9% on an adjusted basis as it benefits from consumers and businesses moving their payments from cash to credit and debit cards
NEW YORK (AP) — Payment processing giant Visa Inc. said Tuesday that its fiscal third-quarter profits rose 9% on an adjusted basis, as it benefits from consumers and businesses moving their payments from cash to credit and debit cards.
The San Francisco-based company said it earned $4.87 billion, or $2.40 a share, compared to a profit of $4.16 billion, or $2.00 a share, in the same period a year earlier. Excluding one-time items, Visa earned $2.42 a share, which was in line with what analysts had expected, according to FactSet.
Visa processed $3.325 trillion in transactions on its network during the quarter, up 7.4% from a year earlier. Much of the payments growth came from Europe and Latin America, but U.S. payments grew by 5.1%, which is faster than U.S. economic growth.
Visa earns a fee from every transaction processed on its network. That fee varies from industry to industry, and whether it's done with a credit or debit card, but generally it is somewhere between 1% to 4%. Since the pandemic, more consumers globally have been shopping online for goods and services, which has translated into more revenue for Visa in the form of fees.
