Visa headquarters in Foster City, Calif. In 2019. Getty Images Visa Inc. saw its overall payment volume increase for its fiscal fourth quarter, but the company continued to be weighed down by the impact of the pandemic on international travel. Like Mastercard Inc. MA, -8.11% a few hours ago, Visa V, -4.83% on Wednesday afternoon released September quarter results which showed continued weakness in travel spending despite further improvements in the domestic categories. The period’s payment volume increased by 4% at constant dollar, while cross-border volume, excluding intra-European transactions, decreased by 41%. “The recovery so far has been patchy, V-shaped for domestic volumes but L-shaped for cross-border volumes,” CFO Vasant Prabhu said during the company’s earnings call. Cross-border spending typically generates higher returns for Visa, so the slowdown there creates “a drag on revenue growth, which will continue into fiscal 2021.” Visa has seen a “sharp recovery” in the limited corridors where travel is “relatively frictionless,” including travel from the United States to Mexico and travel to the Persian Gulf states, and Prabhu said this gives the company hoping for what the larger travel landscape might look like. like once the ease of restrictions. However, at present, “the borders remain largely closed”, he admitted. Shares rose 0.6% on Wednesday after-hours, after falling 4.8% in regular session. Read: Mastercard shares have come under fire after weak travel spending putting pressure on profits Visa saw its fourth quarter revenue drop to $ 5.10 billion from $ 6.14 billion a year ago, while analysts polled by FactSet forecast $ 5 billion. The company posted net income of $ 2.14 billion, or 97 cents per share, from $ 3.03 billion, or $ 1.34 per share, a year earlier. On an adjusted basis, Visa gained $ 1.12 per share, up from $ 1.47 a year earlier and above the FactSet consensus of $ 1.09. Visa declined to provide a formal quantitative outlook for fiscal 2021, citing uncertainties related to the pandemic, although the company has given some indication of how the year could unfold. The credit card giant expects revenue growth to decline in the first half of fiscal 2021 ahead of this’ rebound[s] significantly ”in the second half, said Prabhu. He pointed to many unknowns regarding the spread of infections, the impact of vaccines and other factors that could determine the extent of this income growth. PayPal Profit Snapshot: Capitalizing on Growing User Growth In its report earlier Wednesday, its Mastercard counterpart highlighted some October improvements in domestic spending from a year earlier, including an increase towards the end of October that the company said could be attributed to a major e-commerce player promotional event. This has been widely interpreted to mean Amazon.com Inc.’s AMZN, -3.76% Prime Day, which moved to October of this year from its typical July occurrence due to the pandemic. It’s likely that Visa saw a similar bump from Prime Day. Visa shares have fallen about 8% in the past three months as the Dow Jones Industrial Average DJIA, -3.43%, rose 0.5%. .



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