Visa 2Q profits rise 14% on rising credit, debit card usage
Payment processing giant Visa says its second-quarter profits jumped 14% from a year earlier on an adjusted basis, as the company continues to benefit from a global rise in credit card and debit card usage
NEW YORK (AP) — Payment processing giant Visa Inc. said its second-quarter profits jumped 14% from a year earlier on an adjusted basis, as the company continues to benefit from a global increase in credit card and debit card usage.
The San Francisco-based company said it earned a profit of $4.38 billion, or $2.09 a share, excluding one-time charges related partially to the Russia-Ukraine war and other accounting adjustments. That compared to an adjusted profit of $3.84 billion, or $1.79 a share, from a year earlier. The result beat analysts' forecasts.
For the past several quarters, Visa's fortunes have been bolstered by a global increase in online payments and usage of credit and debit cards. The company processed $2.955 trillion in transactions on its payment network last quarter, up 10% from a year earlier. The biggest growth is still happening in U.S., Europe and Asia, which make up more than 80% of the company's overall market.
Visa takes a fee from every transaction processed on its network. The fee varies depending on the industry the merchant operates in, where they are located and whether they are using a credit or debit card, but generally the fee is between 1% and 3%.
