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.
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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.
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