MasterCard profit rises as more people turn to plastic

Debit and credit card firm MasterCard said profits rose 14 per cent in the first quarter as more people used cards to shop.

MasterCard’s worldwide purchase volume increased 10 per cent on a local currency basis to $759 billion.

Purchase volumes in the United States rose 9 per cent to $268 billion from a year earlier.

"We kicked off the year with a strong quarter, despite a mixed global economy. We secured several new agreements, including three of the largest retailers," chief executive Ajay Banga said.

US consumer sentiment rose sharply in the first quarter as optimism about the economic outlook improved, according to a global survey, which also showed rising confidence in debt-laden euro zone countries.

The company’s net income rose to $870 million, or 73 cents per share, for the first quarter ended March 31st, from $766 million, or 62 cents per share, a year earlier.

Net revenue rose about 14 percent to $2.18 billion.

Analysts on average had expected the company to earn 72 cents per share on revenue of $2.14 billion, according to Thomson Reuters.

Larger rival Visa said last week that US sanctions on Russia were hurting its card transaction and that revenue growth would slow further this quarter.

MasterCard made no mention of any impact from Russia in its statement today. (Reuters)