(Bloomberg) — Visa Inc. Chief Executive Officer Al Kelly warned the firm will be challenged “for a number of quarters” even as declines in spending on its network began to moderate in April.
As the U.S. government began sending out stimulus payments to millions of consumers this month, Visa saw an increase in spending on home improvement, automotive and some areas of health care. Still, spending on the firm’s cards in the U.S. has dropped 19% in April compared with the same period a year earlier, according to Chief Financial Officer Vasant Prabhu.
To offset the slowdown in spending on its cards, Visa said expenses in the second half of the year would be flat compared with the same period a year ago. The company, which has vowed it won’t make any virus-related layoffs this year, said costs rose 4% to $1.93 billion in the first three months of the