Visa expects lackluster U.S. consumer spending

NEW YORK (Reuters) - U.S. consumer spending will remain lackluster for the rest of 2009, Visa Inc's (V.N) chief executive said on Wednesday, as Americans struggle with the worst economic crisis since the Great Depression.

Earlier this week, the world's largest payment network said payment volume fell less in August than in July in the United States, in a sign the contraction of the sector may be stabilizing.

But the way to recovery still looks challenging, Chief Executive Joseph Saunders said at a Barclays Capital conference.

"What persists is a resistance to spend more money," said Saunders, who added he did not expect a significant uptick in consumer spending for the rest of 2009. "We are operating in a very challenging environment."

Visa, as well as rival MasterCard Inc (MA.N), is partially insulated from the financial crisis as it does not lend and makes money every time a consumer swipes its debit or credit card at a store.

But revenue has slowed in the last year as debt-burdened consumers used their credit cards less often.

Visa shares rose 0.93 percent to $73.88.

(Reporting by Juan Lagorio; Editing by Leslie Gevirtz)