More customers paid for items using credit in September compared to the month before, according to recently released data from the Federal Reserve.
The institution announced that total borrowing during the month had jumped to $7.4 billion, after decreasing by $9.7 billion the month before. The gains were higher than the median forecast of $5.2 billion conducted by Bloomberg News.
According to some within the industry, the increase in credit usage may not be as positive as it may appear.
“While encouraging, much of this volume over the past year has been driven by affluent cardholders,” Byron Pollitt, Visa’s chief financial officer, said on a conference call with analysts, according to Bloomberg. “As we enter fiscal 2012, it is worth noting that we have not yet seen any discernible broadening of the U.S. credit spending base beyond this affluent income group”
Visa made news in recent weeks when it announced earnings for its fourth quarter. During the three month period ending in September, the merchant services firm earned $880 million, higher than many estimates.Back To Blog