Joy Agwunobi
The drop in inflation from its peak in June 2022 has not yet translated into significant relief for consumers around the world, who still face soaring prices for everyday necessities. Groceries, medications, gas, and even routine car repairs have become unaffordable for many, pushing them to rely on credit cards to make ends meet.
Visa, the largest credit card provider globally, saw a surge in transaction volumes and total payment volumes, reflecting this growing reliance on credit to cover everyday expenses. In the first nine months of 2023, Visa reported 70.8 billion credit card transactions, an increase of six billion from the same period in 2022,according to alternative data provider, AltIndex. This trend indicates that as the cost of living continues to rise, consumers are increasingly turning to credit cards to make ends meet.
Top personal finance blog,Money Crashers reported that the dominance of Visa in the credit card market is not new, but its popularity and market share have grown in recent years. In 2022, Visa processed 61.6 per cent of all credit card transactions in the United States and 40 per cent globally, solidifying its position as the largest credit card payment processor by transaction volume. These figures,reports show, are likely to increase by the end of 2023, as more consumers turn to Visa credit cards to manage the rising costs of living.
According to Statista and data from Visa, the number of credit card transactions processed by the company has been growing steadily since the beginning of 2022. In the third quarter of 2023, Visa processed a record-breaking 24.9 billion credit card transactions, a 10 per cent increase from the previous year. Although the U.S remains the biggest market for Visa, accounting for one-third of all transactions, the Asia-Pacific and European markets have also seen significant growth.
By the end of the third quarter of 2023, Visa had already surpassed the 87.4 billion transactions processed in the entire year of 2022. In the first nine months of 2023 alone, people around the world made over 70.8 billion transactions using Visa credit cards, a whopping 6 billion increase from the same period in 2022. The number of transactions in the first nine months of 2023 was even 2.5 billion higher than last year.
While the total value of transactions in 2023 processed by Visa credit cards has remained relatively stable at approximately $1.5 trillion per quarter, the nine-month results show a significant year-over-year increase.
From January to September 2023, Visa credit cards processed an impressive $6.2 trillion in total payment volume, an increase of 42 per cent from the same period a year ago and $324 billion more than the entire year of 2022.
Visa’s impressive nine-month results have led to a significant increase in the company’s stock value, the company increased by nearly $74 billion. In November 2022, the company’s market capitalization was around $403 billion, but as of today, it has reached $476 billion. This growth is reflected in the company’s sentiment score, calculated by the AltIndex platform, which is 82 out of 100. This positive sentiment indicates that investors and analysts have a favorable outlook on the company’s future performance.
