Visa's Quarterly Revenue Rises 8%

Visa Inc. on Thursday said revenue rose 8% in its fiscal second quarter as payment volumes increased 11%.

Shares of the company were up less than 1% in after-market trading.

Based in Foster City, Calif., Visa is the largest U.S. payments network. Visa and competitor MasterCard Inc. don't issue cards or set interest rates, but they charge fees to financial institutions for transactions that travel over their networks.

The company's digital efforts have included the launch of Visa Digital Solutions, an initiative geared toward secure payments using mobile devices. Visa said in September it planned to create 2,000 full-time technology roles and open a new technology center in India. Visa and others have supported Apple Inc.'s Apple Pay service.

Last month, Costco Wholesale Corp. said Visa, along with Citigroup Inc., won the sought-after contract for its credit-card business, replacing American Express Co., in a move that will significantly expand the kind of plastic that is accepted at the warehouse giant. Starting on April 1, 2016, Visa will be the only brand accepted at Costco.

For the period ended in March, Visa reported a profit of $1.55 billion, or 63 cents a share, compared with $1.6 billion, or 63 cents a share, in the same period a year earlier. Revenue rose 8% $3.41 billion.

Analysts polled by Thomson Reuters projected earnings of 62 cents a share on revenue of $3.34 billion.

Payment volume grew 11% to $1.2 trillion in constant currency. Total transactions also grew 11%, to $17 billion. Data processing revenue grew 9%, and international revenue grew 11%.

Write to Angela Chen at [e-mail]

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