Visa Inc (NYSE:V) has reported an overall increase in spending on its cards in the U.S the months of July and August even after the termination of the unemployment benefits. Visa says it reported a 26% increase in debit card spending in July and 24% increase in August compared to last year. This is according to the latest by Visa, the largest card company in the world.
Congress is yet to determine whether to extend the weekly $600 weekly pay under the unemployment benefits program. The program, which assisted millions of families during the pandemic, came to an end in July.
The increase in debit card spending in the two months has offset the 8% drop in credit card spending during the same period. Visa reported a 31% drop in cross-border debt card transactions in fiscal 2020. Visa’s overseas business is more profitable that its domestic business.
“While many countries had positive year-over-year domestic spending growth, only a few have seen cross-border travel-related spending improve as the majority of borders remain closed,” Visa said in the filing.
Visa U.S. Spending up 7% in August
Visa has reported a 7% increase in U.S payment volumes in August. The company has reported rebound in domestic spending since the outbreak of the pandemic. The company has maintained its July trends when it reported an 8% increase in card spending year over year. Again, the growth in payment volumes is attributed to the growth in debt card spending during the two months.
The company reported a 30% growth in card-not-present volume in August, which measures remote transactions. On the other hand, card-present volume dropped 7% compared to what was reported last year. Card-present transactions are those made in person.
During the same month, the card company also reported increased payment volumes in other countries like United Kingdom, Italy, Brazil, and United Arab Emirates. The company reported a drop in payment volumes in other countries like South Africa and India. Visa reported continued drop in cross-border volume, which dropped 435 in August.