Consumer Spending Drives Visa’s Q1 Profits Higher
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.
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