Helped by strong growth in purchase volume outside the U.S., Visa Inc. on July 27 reported healthy across-the-board fiscal third quarter transaction growth.
Global purchase volume rose 17.3% during the quarter ended June 30, to $941 billion from $802 billion a year earlier. Purchase volume growth rates were strongest in the Central Europe, Middle East and Africa region, followed by Latin America.
The payment network’s operating revenue rose 14.4%, to $2.32 billion, because of higher service, data processing and international transaction revenue (
Overall, 62% of Visa’s revenue growth for the quarter came from outside the U.S., Byron Pollitt, Visa chief financial officer, told analysts during a conference call to discuss the results.
Visa’s total revenue from outside the U.S. during the quarter accounted for 44% of the company’s total revenues, up from 41% a year ago, Pollitt said.
Within the U.S., debit card purchase volume during the quarter continued to outpace credit card purchase volume, but U.S. credit card sales produced the sixth consecutive quarter of positive growth, Pollitt noted. Visa credit card purchase volume declined in 2009 during the recession.
U.S. debit card purchase volume reached $295 billion, up 10.9% from $266 billion a year earlier. Total debit transactions rose 8.3%, to 7.8 billion from 7.2 billion.
Outside the U.S., debit card purchase volume rose 36.4%, to $75 billion from $55 billion. Total transactions rose 25%, to 1.5 billion from 1.2 billion.
U.S. credit card purchase volume totaled $224 billion, up 9.8% from $204 billion. Total credit card transaction volume rose 13%, to 2.6 billion from 2.3 billion.
Outside the U.S., credit card purchase volume rose 25.2%, to $348 billion from $278 billion. Transaction volume rose 10.8%, to 4.1 billion from 3.7 billion.
Total debit and credit card purchase volume in the Asia Pacific region rose 24.2%, to $246 billion from $198 billion, with transaction volume rising 3.8%, to 2.7 billion from 2.6 billion.
In the Latin America and Caribbean region, total purchase volume rose 38.7%, to $86 billion from $62 million, with transaction volume up 20%, to 1.8 billion from 1.5 billion.
Total purchase volume in Canada rose 14.6%, to $55 billion from $48 billion, with transaction volume rising 9.2%, to 474 million from 434 million.
The Central Europe, Middle East and Africa region produced total purchase volume of $35 billion, up 45.8% from $24 billion, with total transaction volume of 530 million, up 34.5% from 394 million.
Visa processed 13 billion debit, credit and ATM transactions during the quarter, up 11.1% from 11.7 billion a year earlier.
Through its CyberSource electronic-payments network, acquired last year, Visa processed 1 billion transactions, up 31.9% from 758 million during the same period a year ago.
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