Visa sees mobile payment as big growth driver
By Tanya Agrawal
(Reuters) - Visa Inc (V.N: Quote) reported a better-than-expected adjusted quarterly profit and said the mobile payment industry would be "a great driver" for business, sending its shares up nearly 4 percent in extended trading.
The world's largest credit and debit card company and its competitors are turning their attention to mobile payments, an industry given fresh impetus by the entry of Apple Inc (AAPL.O: Quote).
Visa, along with Mastercard Inc (MA.N: Quote) and American Express Co AXP.N, have partnered with Apple in the launch of a system - Apple Pay - that allows iPhone users to pay for anything from office supplies to burgers at the tap of a button.
Several analysts have estimated that mobile payments will be a $1 trillion global industry by 2017.
"We have our traditional ways of doing business but ... we see the mobile opportunities in both the developing, the less developed and the developed world being great drivers," Visa Chief Executive Charlie Scharf said on a conference call.
The company, along with its smaller rival MasterCard, is looking to expand in emerging markets, where cash is still the preferred means of doing business.
Earlier on Wednesday, China said it would open up its market for clearing domestic bank card transactions following its promise to reform and free its electronic payments market. The move is expected to benefit both Visa and MasterCard in a market worth over $1 trillion a year.
Visa's shares rose to $223 in extended trading on Wednesday. Continued...