As the post-lockdown travel fever subsided and consumer spending slowed in a challenging economy, Visa Inc.’s revenue growth fell back to pre-pandemic levels in the first quarter.
The largest payment processor in the world nonetheless outperformed Wall Street earnings expectations, pushing its shares up 1.4% to $227.82 on Thursday in after-hours trade, reported Reuters on Friday.
Cross-border volumes increased 22% since the previous year as a stronger dollar boosted out-of-country travel by offsetting the impact of inflation and rising interest rates.
Total payment volumes increased by 7%.
However, the increase was significantly less than a 40% increase in cross-border volumes and a 20% increase in payment volumes in the first quarter of 2021.
Visa’s revenue increased at the slowest rate in seven quarters, increasing 12% to $7.9 billion.