MasterCard Profit Up 21% on Higher Card Purchases

MasterCard’s profit in the first quarter jumped 25 percent as more consumers uses their credit and debit cards, especially in overseas markets.
The world’s second-largest card network, reported net income of $682 million, or $5.36 a share, compared with $562 million, or $4.29 a share, a year earlier, the company said.
This marks a jump of 21.4 percent from the year-earlier quarter.
First-quarter net revenue increased 17 percent to $1.8 billion.
That surpassed Wall Street’s expectations of a profit of $5.29 per share.
“We are leveraging opportunities around the world,” said Ajay Banga, MasterCard president and chief executive officer. “In the U.S., we have significantly improved our position in debit and now have the capability to process transactions on about half of all U.S. debit cards.”
Consumers with MasterCards purchased $629 billion worth of goods or services worldwide, up 17 percent from a year earlier.
The card network also saw an increase in processed transactions of 29 percent to 7.7 billion.
MasterCard has been expanding its global business with the acquisition of international card processor, DataCash, and a global prepaid travel card manager, Access Prepaid Worldwide.
Both acquisitions showed about 25 percent operational increases.
Visa, MasterCard’s larger competitor, is scheduled to report its results following the close of New York Stock Exchange’s regular trading hours.

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