U.S. Bancorp bets on corporate payments rebound

By Laura Alix29 days ago

U.S. Bancorps payment services businesses struggled during the pandemic, but executives are counting on continued increases in consumer spending and corporate clients embrace of real-time payments to fuel a rebound in 2021.

The companys corporate payments and merchant processing fee income declined in the first quarter from a year earlier, while credit and debit card revenues grew, fueled by government stimulus and increased consumer spending. Higher interchange income drove card revenues up 10.5% to $336 million year over year, while income from corporate payments fell 13% to $126 million and merchant processing fees declined 5.6% to $318 million.

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U.S. Bancorp reported net income of $2.3 billion, or $1.45 per share, in the first quarter.

Bloomberg

Though many corporate clients have seen their own revenues recover, thus translating into more transactions with their banks, U.S. Bancorp has seen corporate payments revenues decline because clients in certain industries, particularly travel and hospitality, are still struggling.

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