The gradual reopening of cities around the world wasn’t enough to turn things around for Visa Inc.

• Spending on the firm’s cards dropped 10% in the company’s fiscal third quarter, which ended June 30. The world’s largest payments network has struggled in recent months as consumers stayed home and businesses remained shuttered to stem the spread of the coronavirus pandemic.

Key Insights

• Spending on Visa cards recovered in recent weeks, fueled by gains in online spending. The firm said in a presentation that spending on its network climbed roughly 10% in the week ended July 21.
• Cardholders’ overseas spending -- a closely watched metric because such transactions are more profitable for Visa -- dropped 38% in the quarter.
• The firm set aside $1.51 billion on incentives for banks and merchants to use its network, a 2% decrease from a year earlier. Still, that was above the $1.45 billion average of analyst estimates compiled by Bloomberg.

Market Reaction

• Visa (V) fell as much as 1.8% in extended trading after the announcement. It closed at $196.74 earlier in New York, for a decline this year of 4.7%.