Visa's profits up 32 pct on travel restart

·1-min read

Visa's fiscal third-quarter profits rose 32 per cent from a year earlier, helped by yet another double-digit rise in the amount of money processed on its credit and debit card network.

The payment processing company said it earned a profit of $US3.4 billion ($A4.9 billion), or $US1.60 a share, compared to a profit of $US2.57 billion, or $US1.18 a share, in the same period a year earlier.

Excluding one-time costs, Visa earned $US1.98 per share this quarter, which was much better than the $US1.75 a share analysts had been expecting.

San Francisco-based Visa has been benefiting from a worldwide migration from cash to digital forms of payments, either through online shopping or the increased use of contactless payments.

The company processed $US2.939 trillion ($A4.235 trillion) on its network last quarter, up 12 per cent from a year earlier.

Visa earns a small fee from every transaction that crosses its network, with the amount depending on the type of transaction and the merchant who used it.

Most notably cross-border payments were up 40 per cent from a year earlier, a signal that consumers are returning to their pre-pandemic travel habits.

"Consumers are back on the road, visiting various corners of the world, resulting in cross-border travel volume surpassing 2019 levels for the first time since the pandemic began in early 2020," Al Kelly, chairman and CEO of Visa, said in a statement.

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