New York: Visa on Wednesday launched a $5 billion (Dh18.3 billion) share buy-back and beat profit estimates in its fourth-quarter results, as it shrugged off a stronger dollar and lower cross-border payment volumes.

Shares in the payment network rose 3.9 per cent in after-hours trading to $223.11.

Charlie Scharf, chief executive, said the company was “aggressively” pursuing new digital payments technology, including Visa Checkout, which allows customers to pay online but has been overshadowed by Apple Pay.

“We are excited about Apple Pay, but for us, as we think about what’s going to be coming to the market place, it’s only the beginning,” said Scharf.

Visa, MasterCard and the biggest US banks have signed on to Apple Pay, which allows customers to use the new iPhone to make payments in store and makes it easier to buy products online.

“There’s been much talk about disruption in payments and what it means for us. Most of the disrupters are great enablers for consumers, merchants and our industry,” said Scharf. “Apple is the first great example.”

Visa reported that net income fell from $1.2 billion in the fourth quarter of 2013 to $1.1 billion. Stripping out a $283 million litigation provision, net income was $1.4 billion, or $2.18 a share, which compared with analysts’ expectations of $2.11.

The provision was for continued legal action with a minority of merchants who declined to be part of a 2013 $5.7 billion settlement over claims that credit card swipe fees were improperly charged.

Announcing the share buy-back, Scharfsaid: “Given the opportunities in the payment space, we will continue to look for and prioritise growth opportunities.”

The news comes on the heels of IBM adding $5 billion to its share buy-back programme and Micron Technology unveiling a $1 billion buy-back.

Scharf highlighted setbacks, including in Russia where President Vladimir Putin has signed a law to make a Russian central bank-owned processor take over work from Visa.

“Russia continues to move towards its goal of controlling domestic processing,” said Scharf. He said the company would lose about $70m in revenues as a result, but added: “We continue to believe we will play an important role in Russia.”

Brazil was a “complicated market”, Scharf said, “given the elections and the recently implemented cross-border taxes but we continue to grow relationships there as well”.

— Financial Times