Increasing use of contactless payments
Visa (V) has been making efforts to increase the use of contactless payments in the United States after experiencing a positive response from Australia as well as the United Kingdom.
The company’s management expects that initially, it will take time to expand the use of contactless payments, but later on, growth will increase rapidly.
Visa’s management is confident that the initial growth in contactless payments in the United States could be slow, but later on, this growth could witness strong momentum. Of the total number of face-to-face transactions in Australia, contactless payments account for more than 93%.
Visa’s fiscal third-quarter net revenue
In the fiscal third quarter, Visa’s net operating revenue was $5.2 billion, implying a YoY (year-over-year) rise of 15%. During the same period, the company’s service revenue amounted to $2.2 billion, reflecting a rise of 13% on a YoY basis. This revenue depends upon the payment volumes of the previous quarter. In the previous quarter, the company’s payment volumes amounted to $1.9 trillion, implying a nominal increase of 15% YoY.
Visa’s data processing revenue in the fiscal third quarter amounted to $2.3 billion, representing a YoY rise of 19%. This revenue mainly depended on the company’s processed transactions. The company saw processed transactions of 31.7 billion in the fiscal third quarter, implying a rise of 12% compared to same period of the previous year.
Visa’s competitors (IYF) posted the following revenues in the June quarter: