Visa has warned of its revenue getting hit in Q2, with overseas spending waning in the wake of the coronavirus (Covid-19) outbreak.
The firm said that its revenue growth will be around 2.5-3.5 percentage points less than its earlier prediction.
“Through February 28, 2020, the most significant impact has been on travel to and from Asia. This has resulted in a sharp slowdown of our cross-border business, in particular travel related spending in both card present and card not present,” Visa noted in a regulatory filing.
The firm further stated that cross-border growth rates have worsened since the outbreak though “trends through February 28, 2020 do not yet fully reflect the impact of the coronavirus spreading outside of Asia”.
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“As such, we anticipate that this deteriorating trend has not bottomed out yet,” Visa stated.
With this forecast, Visa joins Mastercard and PayPal who have previously warned of lower revenue growth in the wake of the coronavirus outbreak.
Last week, Mastercard cut its revenue outlook for Q1 2020 owing to the outbreak’s impact on cross-border e-commerce and travel.
The firm expects revenue growth of 9-10% in Q1, down nearly 2 to 3 percentage points from its previous forecast.
Recently, payments processor PayPal too predicted lower revenue.
The firm forecast Q1 revenue to hit the lower end of its previously forecast range of $4.78bn to $4.84bn.
Covid-19 has so far claimed over 3,100 lives and infected more than 90,000 people globally.