Growth of Visa’s Cross Border Volume is slowing down in 2023 Q1

Visa (NYSE: V) announced its 2023 Q1 financial results on January 26, 2023. According to the announcement, net revenues, operating income and net income were up 12%, 7% and 6%, respectively (GAAP, YoY, 3 months).

In addition, payment volume was up 7% (constant dollar basis, YoY, 3 months). Moreover, cross border volume excluding intra-Europe was up 31%. On the other hand, cross border volume was up 22%.

Looking at revenue growth by segments, international transaction revenues recorded the highest growth. The growth rate of the international transaction revenues was +29% (YoY, 3 months).

Net cash provided by operating activities recorded cash inflow of 4,171 million USD (-1%, YoY, 3 months). Moreover, free cash flow recorded cash inflow of 3,661 million USD (-1%, YoY, 3 months).

A man in front of a PC is trying to checking out with a Visa's credit card.
Photo by on Unsplash

Visa’s business performance became sluggish due to a decrease in the amount of cross-border volume just after the onset of COVID-19 pandemic. Afterward, it has rebounded significantly since 2021 Q3. Now, the revenue growth rate in 2023 Q1 is lower than that in Q4 2022. It suggests that the rebound in the post-COVID-19 demands may be abating.

Finally, Visa repurchased class A common stocks for 3.1 billion USD in the three months of 2023 Q1. The Company had $14.0 billion of remaining authorized funds for share repurchase as of December 31, 2022.

Visa Inc. (NYSE: V) Stock Chart

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