With the global surge of online payments, as well as increased debit and credit card usage, Visa has reported a higher than predicted profit for Q2. During its recent earnings call, CEO Ryan McInerney announced that Q2 net revenue was up 11% year-over-year.
Global quarterly payments volume was also up 13% year-over-year, but this doesn’t include China or Russia.
Consumer Payments Is a Massive Opportunity
During the earnings call, McInerney also stated that despite the digitization that has been seen over the past few decades, “there is still a tremendous amount of cash and check spent globally.” Therefore, he continued, “consumer payments remains a massive opportunity for Visa. There is a very long runway of growth in this business.”
According to McInerney, consumer payments are essentially a flywheel that’s made up of three parts: grow credentials (more buyers on the network), grow acceptance (more sellers on the network), and drive engagement (more transactions).
Credentials were up 7% year-over-year, their acceptance growing to more than 100 million merchant locations globally. What’s more, tap-to-pay is now used in 74% of face-to-face transactions outside the U.S.
Continued Offerings
With the launch of its Visa+ network, the card company continues to expand its network offerings. As we have previously covered, Visa+ is their newest service that enables funds to be both sent and received across a variety of digital payment platforms.
Although the newly onboarded CEO is aware of “macroeconomic uncertainty,” what he does know is that he trusts in “Visa’s ability to manage through changing environments.”