Visa Reports Q1 Earnings
The first thing of note is that the report is based on a one quarter lag which means Visa is really reporting on the end of 2008, not Q1 2009. While this better than expected quarterly report represents approximately 40% of their total revenue, fiscal 2009 is off to a slow start and projected to slow further in the coming quarters.
However the resilience of Visa can be seen in the contribution of debit products in the US as consumers continue to more frequently use debit as a method of payment. In fact, 95% of the volume in the Visa system comes from people that use debit cards which don’t have a credit limit or a credit card from people that either pay their bill in full every month or occasionally revolve and never revolve at more than 50% of their line. Visa is banking on debit to continue to take volume from cash and checks and sustain respectable growth in this tougher economic environment.
