Visa and Mastercard Expected to Post Strong Quarterly Profits Amid Spending Trends

BENGALURU, India — Visa and Mastercard are set to announce increased quarterly profits this week, boosted by steady consumer spending. Analysts are keenly watching how travel demand and discretionary purchases are evolving amid ongoing tariff uncertainties.

The results from these leading payment processors will provide valuable insights into the financial landscape, especially following comments from major banks like JPMorgan Chase and Wells Fargo earlier this month, which reported a resilient consumer base.

Oppenheimer analysts highlighted, “Visa and Mastercard remain top ideas, particularly in an uncertain macro environment, given their broad-based exposure to discretionary and non-discretionary spend, geographic reach, and proven ability to stabilize their expense increase in downturns.”

Globally, billions rely on Visa and Mastercard for everyday transactions, positioning these networks well to navigate economic downturns. Their flexibility in managing expenses further supports profit growth.

Recently, the companies have diversified by enhancing value-added services such as fraud prevention and threat intelligence. However, some analysts predict a potential slowdown in consumer spending later in 2025, particularly impacted by cross-border travel tensions.

In specific, slower travel from Canada to the U.S. and rising geopolitical tensions in the Middle East have raised concerns about growth. Analysts are also investigating whether higher spending volumes may be reflective of consumers making preemptive purchases due to anticipated price increases from tariffs.

In the second quarter, total spending on cards showed modest growth. According to data from RBC Capital Markets, Bank of America reported a 110 basis point increase in spending across credit and debit cards, while JPMorgan Chase reported a 40 basis point rise.

“On balance and relative to expectations, data seems neutral for the networks and acquirers, considering overall spending trends appear at least stable compared to last quarter’s growth,” noted J.P. Morgan analysts.

Investors are also focusing on stablecoin forecasts. Both Visa and Mastercard plan to launch products linked to cryptocurrency, though recent legislation has sparked concerns that stablecoins could diminish the need for payment intermediaries in the long run.

Visa, the larger company by market value, will announce its quarterly results after markets close on Tuesday, while Mastercard is expected to report on Thursday. Earlier this month, American Express also reported optimistic quarterly profit expectations, driven by spending from its affluent customer segment.

As of Friday’s close, shares for Visa and Mastercard increased nearly 13% and 8% year-to-date, respectively, while the S&P 500 index rose by 8.6%.