Visa’s latest earnings results reveal that inflation doesn’t change the way people spend money
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Visa Inc. has reported on its fiscal third quarter 2022 results – earnings topped analysts’ expectations. Despite the increasing unease about the state of consumer spending, the payment processor witnessed no evidence of a volume pullback.?
Chairman and Chief Executive Officer, Visa Inc
Although Visa executives acknowledged the shift in consumer spending patterns, e.g. trading down from national brands to private labels, inflation didn’t change the preferred payment methods.?
Visa’s revenue for the Q3 grew to $7.3 billion from $6.1 billion, slightly surpassing analysts’ expectations of $7.1 billion. The increase of 19% was mainly driven by the year-over-year growth in payments volume, cross-border volume and processed transactions.?
Excluding Russia-related results from all periods, net revenues increased 26% on a constant-dollar basis. We have previously reported that?Visa and Mastercard suspended all operations in Russia after it started an unprovoked war in Ukraine. As a result, the company is no longer generating revenue from domestic and cross-border activities related to Russia.
Total cross-border volume on a constant-dollar basis increased 40% in the quarter, while payments volume grew 12%. Overall processed transactions also went up 16%.
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Nina Bobro
Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.
