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Visa posted gains in revenue and payments volume in Q2 2016, despite global political and economic challenges and initial losses from the recent purchase of Visa Europe, which closed in June.
Overall, global gross payment volume (GPV) increased to $1.3 trillion in the quarter, up 10% year-over-year (YoY). But the firm believes that it will continue to post “healthy” growth in the next year thanks to gains from new domestic and international portfolios and macroeconomic improvements.
US GPV hit $749 billion in Q2 2016, up 10% YoY on a constant currency basis. That remains roughly unchanged sequentially. But macro-level trends and new portfolios have already shifted volume trends in early July. Credit: In Q2 2016, Visa US credit GPV hit $376 billion, up from $339 billion in the same quarter a year ago. But through mid-July, credit GPV grew faster than debit as a result of the acquisition of two major portfolios: Costco, which counts up to 12 million cardholders, and USAA. For context, Costco cardholders alone spent $5.7 billion in the first three-and-a-half weeks with Visa, which could have contributed to that growth.
Debit: Debit volume growth decelerated from 8% in Q2 to 3% in early July because a major merchant shifted its processing to a non-Visa network. Merchants’ ability to choose how they route debit transactions is afforded by the Durbin Amendment.
Internationally, the firm is facing uncertainty, but may see a lift from its Visa Europe incorporation. Cross-border volume growth remains stagnant. Cross-border volume grew 5%, similar to the number posted in the previous quarter. That figure was predominantly impacted by declines in outbound transactions from China, but was also impacted by a strong dollar […]
