(Reuters) – Visa Inc on Thursday decided to pull its full-year outlook on rising unemployment numbers and more people conserving cash during the COVID-19 pandemic even while posting a second-quarter profit that rose 4%.
In January, the world’s No. 1 payments processor forecast a revenue growth in the low-double digits for the full year.
“Our prior outlook for fiscal 2020 is no longer relevant, and it is not possible to provide you with any reliable forecast for the second half,” Chief Financial Officer Vasant Prabhu said.
U.S. retail sales suffered a record drop in March from the closure of bars, restaurants and non-essential retailers such as clothing stores, outweighing an anticipated surge in spending on household essentials and at online retailers such as Amazon.com Inc.
“About 1/4 of our payments volume is in the hardest-hit categories, including travel, fuel, restaurants and entertainment,” Prabhu said.
The company’s total payments volume rose