(Reuters) -Visa reported a rise in fourth-quarter adjusted profit on Tuesday, as strong consumer spending helped the global payments processing company's card transaction volumes.
More people swiped their
cards for day-to-day expenses in the July-September quarter, keeping overall consumer spending steady, although worries over the economy slowed down discretionary spend.
Global payments volume, a gauge of overall consumer and business spending on Visa's network, jumped 9% on a constant dollar basis in the quarter ended September 30.
However, Visa's cross-border total volume grew at a slightly slower pace of 12% in the fourth quarter, compared with the year-earlier period.
The company's services are used by billions worldwide for everyday purchases, making it a barometer for economic health.
Quarterly net revenue rose 12% to $10.72 billion, surpassing analysts' estimates of $10.61 billion, according to data compiled by LSEG.
The company reported adjusted net income of $5.80 billion, or $2.98 per share, in the three months ended September 30, compared with $5.43 billion, or $2.71 per share, a year earlier.
Shares of Visa rose about 1% in extended trading. The stock is up 10% this year, outpacing gains in peer Mastercard, although it still lags American Express, whose customer base is typically seen as more affluent.
American Express raised its 2025 profit and revenue forecasts earlier in the month, while Mastercard is set to report its quarterly results on Thursday.
(Reporting by Pritam Biswas in Bengaluru; Editing by Anil D'Silva)
