Visa earnings leap 73 per cent despite recession

Visa earnings leap 73 per cent despite recessionNew York  - Visa Incorporated, the world's biggest electronic payment network, Wednesday reported a leap in earnings of 73 per cent to 729 million dollars in its third quarter compared to the same period last year.

Although consumers have cut back spending amid rising unemployment, Visa processed 8 per cent more transactions in the quarter, displacing cash and checks for retail purchases and some government-benefit programmes, Bloomberg financial news service reported.

Some of the growth was in the form of increased use of Visa debit cards, as banks cut access to credit cards to save off consumer defaults.

"We're cautiously optimistic that things are getting somewhat better, not somewhat worse," chief executive officer Joseph Saunders said.

Visa reported a 2 per cent increase in net operating revenue to 1.6 billion dollars. Adjusted operating expenses declined 9 per cent and total operating expenses dropped 15 per cent, Visa said. (dpa)