Visa’s profits jump 28 per cent on consumer spending spree
Visa reported a profit rise of 28 per cent in the fourth quarter, beating analysts' expectations, as customers spent more money on its payment network.
The world’s largest payment operator said its net income for the quarter ending 30 September reached $1.93bn (£1.58bn), up from $1.51bn (£1.23bn) a year ago. Payments volume jumped 47 per cent. Total operating revenue increased by 19.3 per cent to $4.26bn.
Chief executive Charlie Scharf said: “We have begun to see the benefits from our acquisition of Visa Europe and strong cost discipline.
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"At the same time, we are unwavering in our commitment to invest in client partnership opportunities and the further build out of our digital payments capabilities"
Visa processes both credit card and debit card transactions and makes a percentage on every transaction that passes through its network.
The firm recently won a highly-coveted contract with Costco to operate its payment card system – a contract that had previously been held by American Express.
“As we enter fiscal 2017, we are positioned well as revenue headwinds will continue to ease, we will continue to see the benefits from Visa Europe in our results, and our strong client franchise continues to grow,” added Scharf.