Visa Beats Profit Predictions As Credit Card Spending Grows

The company’s better-than-expected results were said to be linked to increased credit card spending in the US, where Visa obtains over 40% of its overall global revenue.

Adjusted net income for the quarter climbed by 17% to $5.1bn, working out as $2.51 per share. This was $0.07 better than the average analyst prediction.

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The American market saw spending on credit cards rise by 6.2% last year, but this wasn’t the only significant increase in the Visa numbers. The company also confirmed that worldwide payment volume grew by 8%, and the total number of processed transactions was up by 11%.

When presenting the numbers in a statement, CEO Ryan McInerney said:

We remain focused on the trillions of dollars of opportunity in consumer payments and new flows and on continuing to deepen our partnerships with clients around the world.

Visa shares saw an increase of 2.5% on Tuesday’s extended trading following the release of these results. This was a continuation of the strong performance that had already seen the share price climb by 5.3% this year.

The payment card services corporation agreed with Mastercard last month to cap the swipe fees and allow merchants in the US to charge their customers for using credit cards. This is expected to save American retailers $30bn or more over the next five years, though the agreement is still subject to court approval.