(Reuters) – Visa Inc reported a rise in second-quarter profit on Tuesday, helped by a jump in processed transactions as consumers shrugged off worries of an impending recession.
Payment volumes for the three months ended March rose 10%, while cross-border volume excluding Europe, a measure of Visa’s revenue from international transactions, rose 32%.
The San Francisco-based company’s shares, up 11% so far this year, rose another 1.5% in after-hours trading on Tuesday.
Balances on credit cards had surpassed pre-pandemic levels last year, according to New York Fed’s latest data, in a sign that consumers largely turned to credit cards as spending on travel and entertainment rebounded after the pandemic.
That has largely remained unchanged this year as card giants continue to reap a windfall of fees from unrestrained spending and consumers brace for a milder recession than was once feared.
On an adjusted basis, the payments processor earned $2.09 per share in the quarter ended March, well above analysts’ estimates of $1.99, according to data from Refinitiv IBES.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Maju Samuel)
