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What Fueled Visa’s Payment Volumes in Fiscal Q3 2018?

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Fiscal third-quarter payment volumes

In the third quarter, Visa (V) witnessed a rise in payment volumes from the United States on a sequential basis from 10.1% to 10.5%. 

This marginal growth was witnessed due to business transactions. However, a rise in the debit transactions was also a contributor.

Positive momentum was witnessed in debit transactions because of higher gas prices, supportive macros, and Visa Direct. Lower unemployment levels are an indication of an improving economy and higher consumer confidence, which favorably affect payment companies (IYF). Mastercard (MA) also witnessed a rise in its US gross dollar volumes from $419 billion in the first quarter to $442 billion in the second quarter.

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Targeting the B2B market

Visa has been deploying capital toward new and existing offerings to capture B2B (business-to-business) payments. The company is witnessing a favorable response with respect to B2B transactions. These transactions form more than 11% of the company’s payment volumes.

Capital One Financial’s (COF) commercial banking segment had total loans amounting to $67.6 billion in the second quarter. American Express’s (AXP) Global Commercial Services segment saw an 8% YoY rise in total revenue after deducting interest expenses, mainly due to spending.

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