Earnings

Visa Q2 Earnings: X-Border, Digital Payment Growth Expected

Visa will release its quarterly earnings on Tuesday (July 23) after the market closes, and experts expect to see growth in payments volume and processed transactions, as well as cross-border and digital payments.

Growth will be fueled by new acquisitions, partnerships and collaborations with companies across the FinTech spectrum, similar to the company’s earnings report from the previous quarter, which surpassed expectations.

Visa forged many new partnerships over this quarter that will advance the “go cashless” movement, including with Singapore-based gaming hardware company Razer, messaging app LINE (which owns digital wallet LINE Pay), and Indonesia’s payments platform GO-JEK.

The new relationships all focus on improved efforts for seamless, global, digital and real-time payments. In June, the company was part of a group of major businesses that rolled out b.yond, a financial innovation platform that will help companies offer digital payment solutions to customers.

Over the last three months, Visa has also been busy acquiring new businesses to improve payments transactions. Just last week, the company acquired cloud-based POS payments system PayWorks, which will simplify and unify the company’s processing infrastructure.

In June, Visa announced a deal to buy Verifi, which offers solutions to help merchants avoid chargebacks on card payments issues, further strengthening transaction infrastructure. In addition, Visa partnered with Sabre in April to support digital business-to-business payments within the travel industry, and with Setoo and SafeCharge in July to support quicker insurance payouts.

The company is also targeting small business owners in Canada with their new collaboration with PayPal. The joint project, Instant Transfer, enables instant money transfers from users’ PayPal accounts to their bank accounts.

Visa is pursuing further innovations in infrastructure security for the payments industry. The company recently invested in the crypto storage company Anchorage, which safeguards investors’ digital currency and gives them more control over their assets. They announced the acquisition of Rambus in June, which uses tokens to prevent payments fraud.

Cross-border payments, which greatly contributed to last quarter’s revenue growth, will continue to play a large role in the company’s expansion. In June, Visa announced a partnership with Western Union to provide real-time, cross-border payments using Visa Direct, which will cut down on the time-consuming process of wire transfers.

They are improving the security of cross-border payments as well, announcing on June 4 a partnership with Currencycloud to offer customers improved visibility and management of money while traveling abroad. Their services include multi-currency wallets and real-time notifications on foreign exchange transactions.

The company has continued its pursuit of contactless payments in mass transit, first launching a contactless payments program on May 31, collaborating with Chase and the MTA in New York City. Then in June, Visa joined SimplyGo, the contactless payments platform for Singapore’s Land Transportation Authority.

Visa will discuss its earnings in a conference call at 5 p.m. EST on Tuesday (July 23).

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