Visa Inc.’s 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.

Cross-border spending — among the most lucrative transactions for Visa and its rival Mastercard Inc. — fell two per cent in the first three months of the year. Still, Visa said in a presentation on its website that declines in such spending moderated and certain online transactions showed increases.

Key Insights

• Kelly, the chief executive officer, said “although the road ahead will likely be challenging for a number of quarters, our business model is resilient,” noting the firm renewed several partnerships in the period.

• Visa, which has vowed it won’t make any virus-related layoffs this year, said costs rose four per cent to US$1.93 billion, below the US$2.02 billion average of analyst estimates compiled by Bloomberg.

• Overall spending on the firm’s cards rose 4.6 per cent to US$2.14 trillion, despite a drop in spending in the Asia-Pacific region, besting the US$1.91 trillion average of analyst estimates compiled by Bloomberg. The firm warned in March of a sharp decline in spending on travel, entertainment, restaurants and fuel.

Market Reaction

• The shares fell as much as 1.5 per cent in extended trading after theannouncement. They ended regular New York trading at US$178.72 on Thursday, for a decline this year of about five per cent.