MasterCard, one of the country’s largest credit card issuers, announced this week it expects to see a 20 percent growth in profit by the end of 2010, after receiving a growth in foreign exchange and a slight decline in expenses.
New legislation, such as the Credit Card Accountability, Responsibility and Disclosure Act, have put limitations and regulations on issuers across the country. MasterCard says, however, that restrictions on things such as merchant fees are not expected to have a major impact on its revenue.
The company says it hopes to see profits grow between 12 and 14 percent by 2013. More consumers are showing a preference toward cash, which MasterCard interprets as an opportunity to increase revenue by investing in mobile payment systems.
AT&T, Verizon, T-Mobile and Discover recently announced a partnership to create a processing system for shoppers to make credit card purchases with their smartphones. Fraud protection is expected to roll over as well as more consumers begin using mobile payments.