Visa’s spending growth slows to 10.5% as consumers hit by inflation

Visa Inc. saw spending growth rise 10.5 percent to $2.93 trillion in the fiscal fourth quarter, the slowest since the depths of the pandemic Visa posted less than 5 percent for the first fiscal quarter of 2021.

Shares gained as profit exceeded analysts’ expectations.

The volume was shy of the 11 percent increase Bloomberg analysts were expecting and a decrease from the 12 percent growth the firm reported for the previous three months

According to Visa CEO Al Kelly, while some short-term uncertainty exists, they remain confident in Visa’s long-term growth trajectory across consumer payments, new flows, and value-added services,”

Visa and its rivals are facing tough comparisons with a year earlier when spending jumped as economies opened back up as the pandemic began to recede.

When planning for 2023, Visa “did not factor in a steep economic downturn or recession,” Kelly said on a conference call with analysts. If such a decline occurs, “it will have some impact.”