Visa Inc. reports a significantly slower pace of decline in the U.S. payments volume in May

Visa Inc. (NYSE: V) said on Monday that payments volume in the United States dropped at a significantly slower pace in May as compared to the prior month. The company construed the data as a hint that consumer spending is starting to recover in the U.S as the government continues to relieve COVID-19 restrictions.

According to the financial services company, payments volume in the U.S tanked 5% in May versus a much larger 18% decline noted in April. In its filing on Monday, Visa also highlighted an 11% quarter to date decline in the U.S payments volume.

Shares of the company dropped a little under 1% in extended trading on Monday. At £154.22 per share, Visa is roughly 2% up year to date in the stock market after recovering from the Coronavirus driven downward rally that resulted in a low of £108.26 per share in March. Learn more about why prices rise and fall in the stock market.

Visa posts a 45% decline in cross-border volumes

In terms of cross-border volumes, the American multinational reported a 45% decline in May while the global processed transactions came in 12% lower last month. Cross-border volumes do not account for intra-Europe transactions.

In the international markets where it dominates as the leading transactions processors, Visa said that recovery in payments volume was lower than the United States in May.

Visa also highlighted in its report on Monday that cross-border volumes related to travel dropped about 78% in May. The e-commerce segment, however, performed strongly with cross-border volumes rising 18% last month.

In separate news, Visa said in mid-May that it had filed a patent for fiat-linked cryptocurrency system that aims to replace cash.

Visa Inc. performance in the stock market

Owing to the Coronavirus pandemic that has so far infected more than 1.8 million people in the United States and caused over 105,000 deaths, Visa estimated last month that the majority of its U.S workers will continue working from home in the remaining months of 2020.

The American multinational financial services company performed largely upbeat in the stock market last year with an annual gain of more than 40%. At the time of writing, Visa has a market cap of £329.73 billion and a price to earnings ratio of 34.98.

Visa Inc. weekly volatility is currently at 2.14%. Its ATR stands at 5.12 while the RSI (Relative Strength Index) is 65.95.