April 25 (Reuters) – Visa Inc (VN) on Tuesday reported an increase in second-quarter profit, helped by a surge in processed transactions, as consumers shrugged off worries of an impending recession.
Payment volume 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%.
Shares of the San Francisco-based company, which are up 11% so far this year, rose another 1.5% in after-hours trading on Tuesday.
Credit card balances exceeded pre-pandemic levels for the past year, according to the latest data from the New York Fed, suggesting that consumers have largely turned to credit cards as spending on travel and entertainment picks up again after the pandemic.
That has remained largely unchanged this year, as card giants continue to reap the rewards of unbridled spending and consumers brace for a milder recession than once feared.
On an adjusted basis, the payments processor earned $2.09 per share for the quarter ended March, according to data from Refinitiv IBES, significantly above analysts’ estimates of $1.99.
Reporting by Mehnaz Yasmin in Bengaluru; Edited by Maju Samuel
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