Visa earnings benefit from ‘resilient’ spending as travel rebound continues

Revenue rose to $8.12 billion from $7.28 billion, while analysts tracked by FactSet were expecting $8.06 billion.

“Consumer spending remained resilient,” Chief Executive Ryan McInerney said in a release.

Shares of Visa were up 0.5% in after-hours action Tuesday.

Visa logged a 9% increase in payments volume during the June quarter, along with a 10% increase in processed transactions.

The company’s cross-border volume excluding intra-Europe transactions rose 22%, while overall cross-border volume was up 17%. Cross-border transactions occur when a cardholder spends with a merchant based in a country other than where their card was issued, and it is often viewed as a proxy for travel-related spending, though it also includes other elements such as cross-border e-commerce.

McInerney said that cross-border spending was “fueled by travel growth from the ongoing recovery and summer tourism.”

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Visa’s earnings offer a read on the consumer-spending landscape and they arrive after American Express Co.
AXP,
-0.77%
delivered its own results several days before. Amex executives highlighted healthy consumer activity among the company’s base of affluent cardholders, though spending growth slowed, indicative of potentially tougher comparisons going forward for payment-technology companies that benefited from last year’s post-pandemic economic reopening.

See also: American Express’s millennial-spending boom could cool amid student-debt repayments, says analyst

Read: Why American Express is feeling good about credit, even as it builds reserves

Mastercard Inc.
MA,
-0.87%
will follow with results of its own before Thursday’s opening bell.