Visa 2Q Profits See Significant Increase as Credit and Debit Cards Gain Popularity

Visa Inc., a company that helps make payments and purchases, reported higher profits for their second quarter than the year before. This increase is because more people are using credit cards and debit cards around the world.

A company based in San Francisco announced that they made a profit of $4.38 billion, or $2.09 per share, which is more than what was predicted. This is after removing any extra costs related to the conflict between Russia and Ukraine, as well as other accounting expenses from last year’s earnings of $3.84 billion, or $1.79 per share.

Visa has been doing really well lately. Last quarter, it processed nearly three trillion dollars in payments on its network, which is an increase of 10% from the year before. Most of the growth comes from three areas: the US, Europe, and Asia. Together, those places make up more than 80% of Visa’s entire market.

Visa charges a fee for all transactions it processes. This fee may change depending on the type of business, the place where it is being done, or if it is a credit or debit card. The usual fee is between 1% and 3%.

Using Visa cards is making money for the company, but it still depends on how the world’s economy is doing. Because of the pandemic, a lot of people stopped travelling and this made Visa lose a lot of money. There are now worries that there might be an economic downturn if central banks raise their interest rates to slow down inflation.

Ryan McInerney recently became the CEO of Visa. He said that even though there is a lot of instability in the world right now, he has confidence in Visa being able to manage and stay strong through it all. After he said this, the value of Visa shares went up by almost 2%.