April 28 (Reuters) – Visa reported a higher second-quarter profit on Tuesday as the world’s largest payment processor benefited from a steady rise in payment volumes despite ongoing macroeconomic uncertainty.
The company benefited from resilient consumer spending, which bolstered transaction volumes even as high interest rates and persistent inflation weigh on the broader global economy, alongside spillover effects from the war in the Middle East.
U.S. consumer spending rose more than expected in March as the U.S.-Israeli war with Iran boosted gasoline prices and receipts at service stations, while tax refunds supported spending elsewhere.
Visa, which operates a digital payments network across more than 200 countries and territories and is used by billions for everyday transactions, is well positioned to weather economic downturns.
Payments volume, a gauge of overall consumer and business spending on Visa’s network, jumped 9% in the quarter ended March 31.
The company’s adjusted net income came in at $6.3 billion, or $3.31 per share, in the three months ended March 31, compared with $5.44 billion, or $2.76 per share, a year earlier.
(Reporting by Rishab Shaju and Pritam Biswas in Bengaluru; Editing by Tasim Zahid)
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