Visa Inc. confirmed on Tuesday that its third-quarter profits have risen by double digits as the global consumer shift from cash payments to credit and debit cards continues.
The company announced a Q3 profit of $4.2 billion, amounting to $2 per share. During the same period last year, the company recorded a profit of $3.4 billion, or $1.60 per share.
As a result of the growing credit and debit card trend, Visa’s payment volume rose by 9% compared to a year earlier. The number of processed transactions increased by 10% on a year-over-year basis. Around $3.799 trillion was processed on Visa’s networks over the three-month period, with the largest growth coming from Central and Eastern Europe, the Middle East, and Latin America.
Because the company receives a fee from merchants using its payment network, Visa’s earnings largely rise and fall along with the global economy and spending habits. Another factor is whether customers elect to use a Visa credit or debit card ahead of their competitors.