- Visa’s payment volume declined 10% yoy in the last quarter due to the coronavirus pandemic.
- However, Visa’s payment volume could return to positive growth soon as key parts of its business show signs of recovery as economies reopen.
The payment volume of the card network decreased in the third quarter of 2020 (end of June 30, 2020) currency-adjusted by 10% compared to the previous year Publication of results.
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This achievement is far from the 9% annual increase in payment volume comparable period a year ago and the 5% improvement over the previous year in the financial year Q2 2020 (ended on March 31, 2020). Visa payments declined dramatically because they had to be managed temporarily Lock and depressed demand in key industries such as sale.
However, Visa’s payment volume could return to positive growth soon as key parts of its business show signs of recovery as economies reopen. The entire US payment volume of Visa returned positive annual growth in June and from July 1st to July 21st thanks to strong positive growth in payment volumes for Debit and Card Not Present (CNP) and improvement in the performance of the credit card and card gift business, though the annual volume growth is still negative.
Part of this recovery is due to the reopening of many companies in the United States following closures. However, Visa could lose part of this progress if companies are forced to close due to the closure increasing Number of coronavirus cases in the United States.
While the pandemic is affecting Visa's performance, CEO Al Kelly highlighted some ways in which it can accelerate the payment trends that Visa's business is building on the company Call for profit.
- Kelly noted that the pandemic has made contactless payments popular, which may drive Visa transactions in the future. Contactless penetration increased by five percentage points in almost 50 countries from the second quarter of 2020 to the third quarter of 2020, as contactless payments can limit exposure to common surfaces during the pandemic. And contactless payments have increased mature market transactions by an average of 20% in the past, Kelly said. The sudden increase in contactless penetration causes Visa to track more transactions.
- And the switch to e-commerce already helps Visa to create more volume and sales opportunities. E-commerce has grown Other segments have problems during the pandemic, as consumers are more at risk of contracting the virus when visiting shops than when shopping online. According to Kelly, Visa's share of digital commerce is almost three times that of physical trade, so Visa can benefit from the greater role of e-commerce. The focus on online shopping has also made customers more interested in its value-added services that deal with issues such as e-commerce fraud, and has helped Visa to generate more revenue from its relationships.
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