Visa and Mastercard are set to report higher quarterly profits, driven by steady consumer spending. Analysts are eager to see how demand for travel and discretionary purchases is affected by tariff uncertainty. The results will provide insight into the financial outlook presented by major banks earlier this month, signaling a strong consumer base.

Billions of people globally use Visa and Mastercard for everyday spending, making the card networks resilient to economic downturns. The companies have diversified by adding value-added services like fraud reduction. However, analysts predict a potential spending slowdown in the latter half of 2025 due to trade tensions affecting high-margin businesses like cross-border travel.

Investors are watching for the impact of stablecoins on Visa and Mastercard, as both plan to launch products linked to cryptocurrency. Concerns have been raised about the potential elimination of payment intermediaries in the long term. Visa will announce quarterly results on Tuesday, while Mastercard will report on Thursday.

American Express exceeded profit expectations this month, bolstered by strong spending from affluent customers. Visa and Mastercard shares have seen gains year-to-date, outperforming the S&P 500 index. Analysts estimate Visa’s EPS at $2.85 and Mastercard’s at $4.03, higher than the previous year’s figures.

Read more at Yahoo Finance: Visa, Mastercard set for higher profits on solid spending trends