Visa’s
shares rose in after-hours trading on Wall Street in response to the news that
net revenue increased to $8.8 billion during the fiscal second quarter of 2024.
In the meantime, the company joined forces with Standard Chartered to enhance
cross-border payments.
The global
digital payments giant reported double-digit growth in revenue, net income, and
earnings per share, driven by steady increases in payments volume, cross-border
transactions, and processed transactions.
Visa Posts Strong Q2 2024
Results amid Stable Growth in Key Metrics
Net revenue
for the quarter rose 10% year-over-year to $8.8 billion, reflecting the
continued recovery in global economic activity. Visa’s GAAP net income
increased 10% to $4.7 billion, while non-GAAP net income grew 17% to $5.1
billion. Diluted earnings per share (EPS) grew even stronger, with GAAP
EPS up 12% to $2.29 and non-GAAP EPS surging 20% to $2.51.
“As we head
into the second half of the year and beyond, we remain focused on the trillions
of dollars of opportunity in consumer payments and new flows,” commented Ryan
McInerney, the Chief Executive Officer of Visa.
Visa’s core
business drivers demonstrated resilience, with payments volume increasing 8% on
a constant-dollar basis for the three months ended 31 March 2024. Cross-border
volume, excluding intra-Europe transactions, rose 16%, indicating a rebound in
international travel. Total processed transactions grew 11% to 55.5 billion,
underscoring the ongoing shift towards digital payments.
Strategic Acquisitions and
Partnerships
During the
quarter, Visa completed its acquisition of Pismo, a cloud-native issuer
processing and core banking platform. This action enhances Visa’s capabilities in
providing innovative solutions to its clients. Additionally, the company
reached a landmark settlement with US merchants, agreeing to lower credit
interchange rates and implement rule changes that benefit small businesses.
In the latest move, the payments again teamed up with the local US fintech Skipify for secured digital transactions. The cooperation aims to blend Visa’s expertise
and Skipify’s innovative wallet solutions. Visa
returned excess cash to shareholders through its stock repurchase
program and quarterly dividends. The company repurchased 9.7 million shares of
Class A common stock for $2.7 billion and declared a quarterly dividend of
$0.520 per share, payable in June 2024.
Staying on
the topic of stocks, Visa’s shares on Wall Street rose over 3% in after-hours
trading, reacting to better-than-expected results and testing the highest price
levels in over a month, around $284.
Visa and Standard
Chartered Partner to Streamline Cross-Border Payments
In the
meantime, Standard Chartered has joined forces with Visa to leverage the Visa
B2B Connect network. This multilateral payment network enables faster and more
cost-effective account-to-account payments for corporate clients worldwide.
The
partnership will initially benefit Standard Chartered’s clients in Singapore,
with plans to expand the offering to additional entities in the coming months.
By integrating with Visa B2B Connect through API connectivity, transactions
will be routed directly to Visa for processing, eliminating the need for
multiple intermediaries and the associated costs and delays.
“Visa is committed to modernizing cross-border payments around the world, and the collaboration with Standard Chartered will extend our network even further,” said Ben Ellis, the Senior Vice President and the Global Head of Visa B2B Connect at Visa.
This article was written by Damian Chmiel at www.financemagnates.com.
