Profits for the world’s second largest payment processing network rose considerably in the second quarter as consumers used its branded debit and credit cards more often.
MasterCard saw its profits increase 33 percent to $608 million in the second quarter of 2011 as card use rose. The previous year, the company posted a profit of $458 million in the same period. Revenue rose 22 percent to $1.67 billion.
“The global economy is struggling to get back on equal footing, but consumer spending seems to be holding up through the volatility,” Chief Executive Ajay Banga said on the company’s conference call.
The three-month period marked the highest volume growth since the fourth quarter of 2007, but that was largely driven by debit card use and commercial credit, rather than a significant increase in the amount consumers used their credit cards.
Many of the nation’s top credit card lenders and processing networks have seen profits increase dramatically in the last several months. At least part of this change is due to consumers using their credit cards more often to purchase necessities.