MasterCard sees higher profits on more credit card use
Improvements in the economy have led more consumers to feel comfortable dealing with credit card debt once again, and one of the world’s top processing networks has seen profits explode as a consequence.
MasterCard, the world’s second-biggest processor of credit and debit card transactions, recently reported that it saw its profits in the first quarter of the year jump by 24 percent as consumers used both its branded credit and debit cards more often, according to a report from the Associated Press. In all, purchase volume – the value of products purchased using these cards – rose 13 percent to $545 billion, though purchases within the U.S. jumped just 7.4 percent.
However, the company also said that much of the international increase was the result of Americans traveling abroad, the report said. Foreign purchases on cards issued in the U.S. spiked 18.5 percent.
Overall, the number of transactions during the three-month period climbed to 6 billion, a year-over-year increase of 11 percent, the report said.
MasterCard is second only to Visa in terms of global credit card transactions processed.