Visa Reports 19% Increase in Q4 Net Income Despite Fear of Slow Growth in 2024, Remains Unaffected by Fed Debit-Routing Enforcement

Visa's Q4 growth attributed to resilient consumer spending and global acceptance of digital payments, company plans a $25 billion stock buyback and raises dividends despite expected slower growth in 2024.

Visa's fourth-quarter earnings beat estimates on strong consumer spending and growing use of digital payments. The company reported 19% growth in net income, reaching $4.7 billion.
Visa CEO Ryan McInerney confirmed that the company has not experienced any significant impact from the Federal Reserve's enforcement of Regulation II, which requires merchants to have the option of processing online debit card transactions over a network other than Visa or Mastercard.
The company raised the quarterly cash dividend by 16% and authorized a $25 billion multi-year share repurchase program, despite warning of slower growth during the first half of 2024.
Visa has successfully diversified its revenue, with strong growth in corporate travel-and-expense management and cross-border payments, as well as a 19% increase in revenue from Visa's Value Added Services.
The increase in digital payments and online shopping during the COVID-19 pandemic has clearly benefitted Visa. Consumers spent $3.196 trillion on Visa's network globally last quarter, demonstrating a fundamental shift in consumer behavior towards digital transactions.