(Reuters) -Visa reported a rise in third-quarter profit on Tuesday, as the payments processing company was helped by strong card spending volumes despite softness in the broader economy.
Consumers have continued to use card payments for essential purchases, even as they have reined in discretionary spending due to economic uncertainties spurred by U.S. President Donald Trump's shifting trade policies and geopolitical tensions.
Visa is used by billions of people globally for everyday purchases, making
the card network better positioned to withstand economic downturns.
Payments volume, a gauge of overall consumer and business spending on Visa's network, jumped 8% in the quarter ended June 30, while net revenue rose 14% to $10.17 billion.
Analysts have also noted a trend where consumers are front-loading expenses on products they expect to become costlier once tariffs take effect.
The shifting U.S. tariff policies, however, may be weighing on cross-border payments growth, with the volume of such transactions growing 12% in the third quarter, slower than the 14% rise reported last year.
Shares of the company were down marginally in trading after the bell. The stock has gained nearly 11% this year as of last close, outpacing both its rivals, Mastercard and American Express.
American Express, which generally caters to affluent customers, also beat estimates for quarterly profit earlier this month. Mastercard is set to report its earnings later in the week.
The company reported a net profit of $5.3 billion, or $2.69 per share, compared with $4.9 billion, or $2.40 apiece, in the year ago period.
(Reporting by Pritam Biswas and Ateev Bhandari in Bengaluru; Editing by Leroy Leo)
