Home > 2011 > Credit Cards > Profits Climb for MasterCard on More Spending

Profits Climb for MasterCard on More Spending

Advertiser Disclosure Comments 0 Comments

Profits for MasterCard rose 33 percent to $608 million during the second quarter of the year, up from $458 million in the same period last year, as consumers used the company’s branded debit and credit cards more frequently, according to a report from the Wall Street Journal. During this period, revenues increased 22 percent to $1.67 billion.

[Featured Product: Looking for credit cards for bad credit?]

The amount of money spent on MasterCard-branded debit and credit accounts rose 16 percent over the second quarter in 2010, and the number of transactions rose 17 percent, the report said. However, the majority of the purchases made on these accounts were through debit and commercial credit, rather than a sharper increase for consumer credit cards. However, consumer credit card growth was healthy as well.

As a result of the increases in spending and dollar volume, the growth seen during this period was the largest by quarter the company has experienced since the final three months of 2007, the report said.

Some analysts believe MasterCard can continue to expect its profits and revenues to expand going forward, according to Barron’s. Purchase volume and the number of transactions both beat forecasts, and given its status as a global processing power, foreign transactions will also help contribute to further growth.

[Featured Tool: Get your free Credit Report Card from Credit.com]

Image by Alan Chan, via Flickr

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.