On Wednesday, the 24th of April 2019, the American multinational financial service provider and one of the long-cherished credit card providers, Visa Inc, headquartered in Foster City, had posted a 14.3 percent lift in its quarterly profit, as a squeezed labor market alongside declined wage growth had been bolstering its credit card spending.
In point of fact, US retail sales had risen to their highest levels in one and a half years last month, in critical sectors such as autos, appliances, electronics, food and beverages, while credit and debit card spending had played a pivotal part on to it.
A one and a half-years high US retail sale had robustly benefitted visa as beforementioned, as total transaction volume through Visa Inc. credit and debit card had soared just a notch shy of seven percent to $1.07 trillion, on a constant currency basis.
Apart from that, according to the Wednesday’s (April 24th), Visa Inc. earnings report, the multinational credit and debit card issuers net revenue had jumped by 8 percent to $5.49 billion, beating analysts’ estimate of $5.47 billion over the first quarter of 2019.
No matter how unpleasant truth it might have been sounded, there had been a 7 percent lift in its service revenue amid a worldwide recession concerns and risks of economic slowdown had stubbornly strengthened its credit card spending.
Despite a flurry of upbeat data, the shares of Visa Inc. had closed the day down by 0.11 percent to $161.49, over concerns that a cluster of larger US banks likes of JPMorgan Chase & Co. could have increased interest rates for the credit card issuers such as Visa Inc.
alongside Mastercard in a near-term outlook amid a raising corporate debt and Central bank’s rate hike possibility.