FOSTER CITY, Calif.—Thanks in large part to Millennials, spending on Visa debit cards continues to grow at a faster clip than on credit cards.
Spending on Visa’s debit cards jumped 16.3% in this year's first three months, helping the firm raise its financial outlook for 2018, Bloomberg reported. Credit card spending rose 13.7%.
“Younger consumers prefer to pay with debit cards or cash after cultivating an aversion to credit while coming of age during the financial crisis. They also don't typically qualify for top credit cards until becoming older,” Bloomberg said.
Total spending on Visa’s network climbed 14.9% to $2 trillion in the first three months of the year, topping the $1.98 trillion average of analyst estimates compiled by Bloomberg. That helped boost revenue to $5.1 billion, a 13% increase compared with a year ago, exceeding estimates of $4.82 billion, Bloomberg reported.