(Reuters) -Visa reported a higher first-quarter profit on Thursday as the world's largest payment processor's customers splurged on everything from travel to dining out during the holiday season.

The San Francisco, California-based company posted an adjusted profit of $5.5 billion, or $2.75 per share, in the three months ended Dec. 31. That compares with $4.9 billion, or $2.41 per share, a year earlier.

Retailers offered deep discounts to entice budget-conscious shoppers to stores and websites during Thanksgiving, Black Friday, Cyber Monday, and Christmas, aiming to drum up demand.

Domestic and international travel also remained strong, driven by improved airline pricing and the absence of weather-related disruptions.

Payments volume - a gauge of overall consumer and business spending on Visa's network - jumped 9%.

Net revenue climbed 10% to $9.5 billion in the first quarter.