Visa's shares rose in after-hours trading on Wall Street in response to the news that net revenue increased to $8.8 billion during the fiscal second quarter of 2024. In the meantime, the company joined forces with Standard Chartered to enhance cross-border payments.

The global digital payments giant reported double-digit growth in revenue, net income, and earnings per share, driven by steady increases in payments volume, cross-border transactions, and processed transactions.

Visa Posts Strong Q2 2024 Results amid Stable Growth in Key Metrics

Net revenue for the quarter rose 10% year-over-year to $8.8 billion, reflecting the continued recovery in global economic activity. Visa's GAAP net income increased 10% to $4.7 billion, while non-GAAP net income grew 17% to $5.1 billion. Diluted earnings per share (EPS) grew even stronger, with GAAP EPS up 12% to $2.29 and non-GAAP EPS surging 20% to $2.51.

“As we head into the second half of the year and beyond, we remain focused on the trillions of dollars of opportunity in consumer payments and new flows,” commented Ryan McInerney, the Chief Executive Officer of Visa.

Visa's core business drivers demonstrated resilience, with payments volume increasing 8% on a constant-dollar basis for the three months ended 31 March 2024. Cross-border volume, excluding intra-Europe transactions, rose 16%, indicating a rebound in international travel. Total processed transactions grew 11% to 55.5 billion, underscoring the ongoing shift towards digital payments.

Strategic Acquisitions and Partnerships

During the quarter, Visa completed its acquisition of Pismo, a cloud-native issuer processing and core banking platform. This action enhances Visa's capabilities in providing innovative solutions to its clients. Additionally, the company reached a landmark settlement with US merchants, agreeing to lower credit interchange rates and implement rule changes that benefit small businesses.

In the latest move, the payments again teamed up with the local US fintech Skipify for secured digital transactions. The cooperation aims to blend Visa’s expertise and Skipify’s innovative wallet solutions. Visa returned excess cash to shareholders through its stock repurchase program and quarterly dividends. The company repurchased 9.7 million shares of Class A common stock for $2.7 billion and declared a quarterly dividend of $0.520 per share, payable in June 2024.

Staying on the topic of stocks, Visa's shares on Wall Street rose over 3% in after-hours trading, reacting to better-than-expected results and testing the highest price levels in over a month, around $284.

Visa and Standard Chartered Partner to Streamline Cross-Border Payments

In the meantime, Standard Chartered has joined forces with Visa to leverage the Visa B2B Connect network. This multilateral payment network enables faster and more cost-effective account-to-account payments for corporate clients worldwide.

The partnership will initially benefit Standard Chartered's clients in Singapore, with plans to expand the offering to additional entities in the coming months. By integrating with Visa B2B Connect through API connectivity, transactions will be routed directly to Visa for processing, eliminating the need for multiple intermediaries and the associated costs and delays.

"Visa is committed to modernizing cross-border payments around the world, and the collaboration with Standard Chartered will extend our network even further," said Ben Ellis, the Senior Vice President and the Global Head of Visa B2B Connect at Visa.