You might be hurting from the recession and trying to figure out how to pay your credit card balance down, but the credit card company reports that it is doing just fine despite a tough economy. Visa card predicts that its net revenue will grow at as much as 15 percent for 2010, beating its earlier predictions by more than $2 billion.
Meanwhile its arch rival, MasterCard, expects its net income to spike by not less than 20 percent this year, and it is so confident of its success that it has announced a plan to start buying back its own stock. The company justifies that because it believes that over the next 2-3 years its stock price will likely grow by 20 percent – which makes a buyback program sound like a bargain in an era when other stock prices are flat or barely eek out single digit gains.
But much of the money is being made overseas. MasterCard, for example, believes that China will become the biggest user of credit cards in the world during this coming decade. Right now the gigantic nation has about 200 million credit cards in circulation – a spike of about 400 percent since 2005. But experts think that such phenomenal growth in credit card use there is just the tip of the iceberg. They expect that by 2020 there will be about four or five times that number in the purses and wallets of Chinese citizens. So if you want to figure out how to make extra cash to pay off your plastic, you might consider investing in credit card company stock – especially if that company has a strong presence in China.
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