Saunders Lays Out Visa’s Future
As a continuation from our last post on the current status of Visa Inc., as relayed by Visa’s Chief Executive Joseph Saunders, Saunders feels that Visa is positioned well to meet the growing concerns over the current global credit crisis. In particular, he believes that Visa is insulated to a degree from the credit crisis because so much of its revenue comes from processing credit card transactions rather than just issuing credit cards.
Of course, from our perspective that’s all well and good but because of the current economic crisis transactions have greatly fallen off as well. And of course, that has a negative impact on Visa’s bottom line as well.
Saunders countered this by stating that a slowdown in credit card use could be offset by an increase in the use of debit cards and other forms of electronic payment. He actually specifically stated that “a significant part of the company’s future” would in fact be based upon electronic payments in the form of debit cards.
He may very well be onto something. The use of debit cards, for the first time in history, surpassed the use of credit cards in the first quarter of 2009.
While Saunders offers guidance to shareholders of Visa and the credit card industry as a whole he also sounded a decidedly upbeat note in the face of economic uncertainty. In the end he believes that, “at some point in time, people will want to enjoy things they enjoyed in the past.”
We here at www.bestcreditquote.com echo that sentiment. The economy will improve and we as Americans will go back to doing the things that we do best… and that is being consumers. Nobody really knows how this will all play out in the end, but we are fairly certain that whether it be by credit cards, debit cards, or the most likely scenario, a combination of both, Americans will begin spending again as soon as you employment rate begins to fall.
Related Information:
- What Does the Future Hold for Credit Card Issuers Times are changing in the credit markets so we thought we would take a look at the future of credit card companies....
- The Pros and Cons of Using Debit Cards Find out what the advantages and disadvantages of using debit cards are in this informational piece....
- Visa Chairman Speaks Out On Credit Card Reform The chairman of Visa has his say about credit card reform....