MasterCard 3Q Profit Up 38 Percent as Card Use Rises
NEW YORK (AP) — MasterCard says its third-quarter profit soared 38 percent on a big spike in card use.
The Purchase, N.Y.-based payments processor also attributed the strong results to new deals with certain banks to issue debit cards bearing its logo and new transaction processing deals overseas.
Mastercard's net income was $717 million, or $5.63 per share, on revenue of $1.8 billion. That exceeded Wall Street's expectations for profit of $4.81 per share, on revenue of $1.7 billion.
Purchase volume, the amount spent on debit and credit cards, rose 17 percent worldwide. In the U.S., spending is up 13 percent.
Mastercard Inc. says it increased rebates and incentives, a common practice in the industry aimed at winning business. The topic is one that concerns analysts, because it could weaken results in the future.