Here’s what you need to know.
Credit card processing giant Visa Inc. said its fiscal third quarter profit fell by 23% from a year ago, undercut by the world’s consumers and businesses dramatically slowing their spending as the coronavirus pandemic took hold.
Visa said it earned a profit of $2.37 billion last quarter, down from $3.1 billion from a year earlier. On a per-share basis, the company earned $1.07 a share in the latest quarter.
Visa’s business model — taking a small percentage of every transaction that runs on the Visa network — is highly susceptible to fluctuations in how consumers and businesses spend money. As economies shut down in March, April and May due to the pandemic, consumers spent less money on gas, eating out for lunch and dinner, movies or any other activities that required being outside.