Many people around the world shut themselves down because of the coronavirus and began not to go out unless they had to. It seems that this social isolation process not only affected SMEs but also negatively.
They Spend Less
According to Bloomberg’s report, Visa users started to spend less than usual with their cards. While consumers in the USA spend 4% less with their Visa cards, this rate has increased to 19% worldwide. However, there was an increase in the number of transactions between January 1 and March 28. Visa made the following statement on this subject:
“There was a sharp decline in travel, restaurants, entertainment and fuel expenditures especially because social isolation and quarantine were implemented in many countries.”
Company Revenues Decreasing
Visa’s revenues started to decrease within this month especially due to the developments in Asia. Asian Visa users started to use their cards less, and Visa reduced their expectations in the second quarter. But now Visa users not only in Asia but around the world spend less.
People started to spend less because of coronavirus, so Visa’s revenues started to decrease. The company therefore had to lower its revenue expectations in the second quarter of this year.