(Reuters) -Payments processor Visa reported its smallest jump in quarterly profit in over two years as consumers worried about an economic downturn tightened spending.
Rising borrowing costs, wide-ranging layoffs and chances of a mild recession later this year are starting to deter pandemic-weary travelers and shoppers who had fueled a recovery in payment volumes for companies such as Visa and Mastercard in 2022.
Visa’s payment volumes rose 9% in the quarter, while cross-border volumes climbed 17%.
Peer American Express reported record spending in its quarterly report on Friday, but kept its full-year profit forecast unchanged. Mastercard is scheduled to report quarterly earnings on Thursday.
Excluding one-time costs, Visa posted a profit of $4.5 billion, or $2.16 per share, for the three months ended June 30, up 7% from a year ago.
The single-digit percentage growth was the smallest since the second quarter of fiscal 2021, when profit had contracted.
Shares of Visa were up 0.3% at $239.38 in aftermarket trading, slightly paring gains from earlier.
The San Francisco, California-based company has undergone a change of guard this year with long-time Visa executive Ryan McInerney becoming the CEO in February and videogame publisher Electronic Arts’ former finance chief Chris Suh taking on the CFO role.
(Reporting by Niket Nishant and Sri Hari N S in Bengaluru; Editing by Devika Syamnath)
