MasterCard Beats on Earnings as Purchases on Plastic Surge

MasterCard Beats on Earnings as Purchases on Plastic SurgeOn the strength of more consumers using their credit cards, MasterCard reported quarterly earnings that were up 23 percent, beating Wall Street’s expectations.
Gross-dollar volume in the second quarter was up 13 percent and purchase volume up 12 percent.
The world’s second-largest payment network’s net income rose to $848 million, or $6.96 per share, in the second quarter, from $700 million, or $5.55 per share, a year earlier.
That’s 23 percent higher, excluding a charge related to the U.S. merchant litigation taken in the second quarter of 2012 over the controversial “swipe fees.”
Revenue increased 15 percent to $2.1 billion from $1.82 billion a year ago.
Last week, No. 1 payments processor Visa reported a 10.5 percent jump in earnings, also beating market projections.
MasterCard’s business is growing strongly in emerging markets.
The dollar value of transactions made using debit and credit cards bearing the MasterCard logo jump 17 percent in Latin America and 21 percent in the combined Middle East, Africa and Asia Pacific region.
The value of transactions in the U.S. increased 6.5 percent.
“This year alone, we have launched nine programs in tandem with government entities and other partners in emerging markets which are designed to bring much needed financial access, convenience and security to more than 350 million people globally who previously would not have had access to financial products,” said Ajay Banga, MasterCard president and CEO.

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