Visa Inc. says its fiscal fourth quarter profits dropped 29 per cent due to fewer dollars crossing on its namesake payment network during the pandemic-caused global recession.
The San Francisco-based company on Wednesday posted a profit of $US2.14 billion ($A3.03 billion), or 97 cents per share, down from a profit of $US3.03 billion, or $1.34 a share, in the same period a year earlier.
Visa recognises revenue from the quarter before, so the payments activity that ended June 30 is reflected in the profits that the company reported.
The April 1 to June 30 period was when the US and the rest of the world was being hard hit by the pandemic’s outbreak, so payments and transactions plunged sharply.
During the period, Visa had $US2.493 trillion in payments on its network, down 11.9 per cent from same period last year.
The number of transactions also plunged sharply, down 23.6 per cent from the quarter before.
Visa earns a fee off of every transaction that runs on its network, be it credit cards or debit cards.
It was particularly impacted by a drop in fuel sales, since debit cards are the most common form of payment method at petrol stations.
Visa did see payments volume increase in the July 1 to September 30 period, as the US and the rest of the world started reopening but those revenues will not be recognised until the end of the year.
Travel expenses remain particularly depressed, the company said.