Published Oct 24, 2023 04:11PM ET Updated Oct 24, 2023 04:49PM ET
© Reuters. FILE PHOTO: Visa credit and debit cards are seen in this picture illustration taken August 2, 2022. REUTERS/Benoit Tessier/File Photo
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(Reuters) – Visa (NYSE: )’s fourth-quarter profit beat estimates on Tuesday as consumers undeterred by inflation and a cost-of-living crisis continued to swipe cards to travel and dine out, sending shares nearly 3% higher in extended trading.
Spending by affluent consumers and a post-pandemic rebound in travel has so far provided a bulwark for U.S. card giants against volumes taking a hit due to the prevailing economic uncertainty.
Visa said payment volumes rose 9% in the quarter, while cross-border volumes excluding transactions within Europe, which drives revenue from international transactions, increased 18%.
Even as higher prices for everything from groceries to electricity have begun to squeeze budgets, particularly in lower income households, consumer spending has remained remarkably steady in the face of a looming economic slowdown.
Visa’s profit beats estimates driven by strong travel demand
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