Consumer Spending on Visa Signature Surpasses $100 Billion For Past 12 Months

Thursday 12 May 2005 16:55 CET | News

Visa USA announced that, for the first time, consumer spending on Visa Signature cards in the United States surpassed $100 billion over a 12 month period.

From April 1, 2004 through March 31, 2005, consumers made $101.6 billion in purchases with their Visa Signature cards. For the first quarter of calendar year 2005, spending on Visa Signature totaled $24.4 billion, an 18.9 percent increase over the same period last year, as more Member financial institutions and co-brand partners launched new programs that resonated with the New Affluent consumer base. Visa also reported strong gains in average ticket and total number of transactions made with Visa Signature cards during the quarter. Most notably, the average Visa Signature purchase was 34 percent larger than those on traditional Visa credit cards. During the quarter, the number of Visa Signature cards issued by Visa Member financial institutions increased more than 16 percent to 8.6 million cards for nearly 5.3 million accounts, a 17.3 percent increase. This consumer spending milestone reaffirms Visas value to a consumer segment called the New Affluent. With average annual household income of more than $125,000, these cardholders look for added value in their payment products. Visa Signature delivers against these desires through the Visa Signature Dining program, providing exclusive access to reservations for hard-to-reserve tables at popular and new restaurants; Visa Signature Concierge, a round-the-clock service for personal and travel planning assistance; and Visa Signature Privileges, upgrades and discounts at some often worlds finest merchants. Visa Signature cardholders also benefit from Visas unsurpassed merchant acceptance. According to a recent survey by National Retail Census of Product Distribution, Visa continues to lead overall acceptance in key categories of everyday spend; big ticket items, such as cars, home appliances and furniture; and emerging merchant sectors. New Visa Signature Partners In the past month alone, Visa Signature co-branded programs were launched with Mercedes-Benz and Lexus, reinforcing the value of rewards card programs developed for this New Affluent audience. These new programs join a strong portfolio of airline, hotel and travel Visa Signature programs issued by institutions like Chase, Bank of America, MBNA and US Bank. Today, Visa accounts for 42 percent of New Affluent consumer credit card spending, outpacing all other payment brands. Visa Signature accounted for nearly 19 percent of Visa USAs consumer credit sales volume in 2004.

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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce