Visa Inc. reported a rise in fourth-quarter profit on Tuesday, helped by a jump in payment volumes as consumer spending showed no signs of cooling even against the backdrop of a slowing economy.
Payment networks such as Visa and Mastercard are making the most out of a pent-up demand for cross-border travel, with a boom in spending from higher income households offsetting a pullback from lower-income ones.
On a constant dollar basis, payment volumes surged 10%, while cross-border volumes - a key measure that tracks spending on cards beyond the country of issue - jumped 36% for the three months ended Sept. 30.
That drove a 19% gain in net revenue to $7.79 billion for the quarter.
Net income was $3.9 billion, or $1.86 per share, in the three months ended Sept. 30, compared with $3.6 billion, or $1.65 a share, a year earlier.