MIAMI , December 18, 2020 - Visa Inc. (NYSE: V) presents an analysis conducted by Visa Consulting & Analytics (VCA), a Visa strategic consulting team for clients, revealing that in the Latin America and Caribbean region* the annual year over year growth in the online transactions versus the transactions made in person were 5 times higher in October 2020 when compared to the average for January and February 2020 (two pre-COVID months of the calendar year), showing an acceleration in the use online digital payments by cardholders in the region during the COVID-19 pandemic.
“The analysis shows a sustained level of growth in the use of e-Commerce by consumers in Latin America and the Caribbean as well as shift towards online digital payments during the pandemic compared to pre-COVID times,” commented Javier Vazquez, regional head of Visa Consulting & Analytics for Latin America and the Caribbean. “Insights on digital payment trends coupled with Visa’s know-how helps to support financial institutions and businesses in understanding the priorities and improving the payment experiences of consumers, particularly during these times of changes generated by the COVID-19 pandemic.”
Consumer spending category trends
The consumer spending categories that registered the greatest impact during the pandemic in Latin America and the Caribbean, based on the number of transactions made between March and October of 2020 versus the same period in 2019, were:
- Positive impact: Digital goods (gaming, apps, and books/movie/TV streaming); Recurring Payments (cable, satellite TV, radio, utilities, gas, merchant subscriptions); and Professional Services (cleaning services, construction,
delivery/storage/moving, Financial Services, Legal Expenses)
- Negative impact: Airlines, Travel Expenses, Logging, Car Rentals and Transportation.
The analysis also makes it possible to identify signs of recovery in the retail category, including department stores, clothing, and electronics:
- The number of retail sales transactions (both face-to-face and online) increased from its lowest point in April to its highest in October 2020
- The number of transactions in the online retail sales consumer-spending category almost doubled in October 2020 compared to the average levels posted in January and February 2020.
Visa is committed to continue working and innovating on its payment solutions to provide Visa cardholders with increasingly convenient, streamlined and secure payment experiences, both when making transactions through virtual channels as when making contactless or practically friction-free payments at physical points of sale. The Visa Consulting & Analytics (VCA) team, a group of consultants and experts in payment methods, works together with its clients, including acquirers, issuers and merchants, to identify opportunities for improving their performance and profitability. By combining knowledge of the payments industry with a strategic vision, VCA leverages its expertise in Data Analytics to develop innovative solutions that enable its clients to grow their business, understand their consumers and optimize their resources.
The analysis was performed based on VisaNet transactional data from January to October 2019 and 2020, comparing the number of transactions and nominal USD payment volume each week during the period specified above. The analysis includes the following countries and territories in the Latin America and Caribbean region: Anguilla, Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize, Bermuda, Bolivia, Brazil, British Virgin Islands, Cayman Islands, Chile, Colombia, Costa Rica, Curacao, Dominica, Dominican Republic, Dutch Caribbean Islands, Ecuador, El Salvador, Granada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Montserrat, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, St. Maarten, St. Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago, Turks and Caicos, U.S. Virgin Islands and Uruguay.
About Visa Inc.
Visa Inc. (NYSE: V) is the world's leading digital payments company. Our mission is to connect the world through the most innovative, reliable and secure payment network that enables people, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the vision of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit usa.visa.com/aboutvisa, visa.com/blog and @VisaNews.
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The information, recommendations or “best practices” contained herein are provided “AS IS”, are intended for informational purposes only and should not be relied upon for business, operating, commercial, financial, legal, technical, tax or other advice. When implementing any new strategy or practice, you should consult with your legal counsel to determine what laws and regulations may apply to your specific circumstances. The actual costs, savings and benefits of any recommendations, programs or “best practices” may vary based upon your specific business needs and program requirements. By their nature, recommendations are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Our assumptions were made in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. Recommendations are subject to risks and uncertainties, which may cause actual and future results and trends to differ materially from the assumptions or recommendations. Visa is not responsible for your use of the information contained herein (including errors, omissions, inaccuracies or non-timeliness of any kind), or any assumptions or conclusions that you might draw from its use. Visa makes no warranty, express or implied, and explicitly disclaims the warranties of merchantability and fitness for a particular purpose, any warranty of non-infringement of any third party’s intellectual property rights, any warranty that the information will meet the requirements of a client, or any warranty that the information is updated and will be error-free. To the extent permitted by applicable law, Visa shall not be considered liable to a customer or third party for damages under any theory of law, including but not limited to any special, consequential, incidental or punitive damages, nor for damages due to lost profits, business interruption, loss of commercial information or other monetary loss, even if notified of the possibility of such damages occurring.