Consumer Spending Drives Visa’s Q1 Profits Higher

By John Heerdink LinkedIn

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Their mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive.  Their advanced global processing network, VisaNet, provides secure and reliable payments around the world and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying its brand, products, people, network and scale to reshape the future of commerce.

As reported on Wednesday, Visa Inc drove Q1 profits forward to the tune of 14% via consumer spending even though it is currently suffering from high expenses and lower spending habits by its customers when abroad. Major spend by the company was on the rewards and incentives offered to its customers, increasing the operating expenses by 7%. The cross-border sales dropped to 4% this year as compared to 11% last year.

The United States, its major market proved to be the savior with the volume of transactions rising by 7.9 percent and generating an overall increase in revenue for the company by 8% to $5.49 billion and is thought to further driven by higher earned wages.

Meanwhile, the payment processor is looking forward to growth in the UK and Ireland. Also, as per reports, the company has also continuing to work with a growing financial technology payment company in India to penetrate further into this vibrant market.

To learn more about Visa (V) and to track its ongoing progress please visit the Vista Partners Visa (V), Coverage Page.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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Visa profit jumps, lower cross-border volume weighs on shares

Shares of the company were trading lower after the bell as investors worried over a slide in cross-border volume growth, which measures the value of transactions made on a Visa card outside a customer’s home country. The company and its rival Mastercard had recently come under fire for charging..

finance.yahoo.com

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