On Wednesday, Visa Inc, a global payments company, surpassed the estimates of Wall Street for second-quarter profit. The results that were reported by the company was driven by the increase in consumer spending in a resurgent global economy and lower provision on income tax.
The shares of the largest payments network operator in the world, which were up approximately 6 percent this year, increased by 2 percent during after-hours trading.
Just like smaller rival Mastercard Inc, Visa gets most of the revenue of the company mainly through transaction fees, which are earned every time a customer swipes their debit or credit card on the network of the company.
The payment processor has observed an increase in card payments, benefiting from the higher consumer spending in the United States of America and the increase in the prices of oil.
The net operating revenue of the company increased by 13 percent to $5.07 billion, revealing an increase in the volume of payments and the transactions that were processed.
In 2017, the net income of the company increased to $2.61 billion (£1.87 billion) during the quarter that ended March 31 from $430 million.
A year earlier, the earnings per Class A share increased to $1.11 from 18 cents.
According to Thomson Reuters I/B/E/S, analysts anticipated $1.02, on average.