Visa's spending growth slows as consumers are hit by inflation

Visa saw spending growth slow in its most recent quarter as inflation weighs on consumers.

Volume on the network rose 10.5% to $2.93 trillion in the fiscal fourth quarter, Visa said Tuesday. That was shy of the the 11% increase analysts in a Bloomberg survey were expecting and a decrease from the 12% growth the firm reported for the previous three months.

Andrew Harrer/Bloomberg

"As we look ahead, while some short-term uncertainty exists, we remain confident in Visa's long-term growth trajectory across consumer payments, new flows and value added services," Chief Executive Officer Al Kelly said in a statement.

Visa and its rivals have seen spending increases cool with inflation soaring to once-in-a-generation levels. They're also facing tough comparisons with a year earlier, when spending jumped as economies opened back up as COVID-19 vaccines proliferated and the pandemic began to recede.

Cross-border volume, a key metric for San Francisco-based Visa since such transactions are typically more lucrative than domestic spending, climbed 36%, matching analysts' expectations.

Revenue for the three months through September jumped 23% from a year earlier to $7.8 billion, while earnings totaled $4.1 billion, or $1.93 a share. Analysts were expecting adjusted profit of $1.86 a share.

Visa has been shelling out more in rebates to persuade banks and retailers to route a greater number of transactions over its network. Such incentives jumped 20% to $2.86 billion.