Mastercard Inc reported profit that beat analysts’ estimates on strength in customer spending and online payments.
 
Global purchase volume in the three months through June jumped more than 7% from a year earlier, to US$1.97 trillion , also higher than analysts expected. Mastercard and Visa Inc have focused on digital payments to boost their bottom lines. 

Higher revenue and profit in the quarter were supported by “continued healthy consumer spending” and robust cross-border volume growth, chief executive officer Michael Miebach said in a statement on Wednesday. “These results reflect how payments and services enable each other to create differentiated value for our customers and help us realize even more of the shift to digital.”

Mastercard reported US$3.3 billion in adjusted net income, or US$3.59 per share, topping estimates of US$3.52.

As consumers spend more and inflation persists, they have also been carrying more debt on their credit cards. Citigroup Inc, for one, has responded by decreasing credit lines and proactively shutting down unused accounts. Capital One Financial Corp has stockpiled more funds to cover card losses. 

Mastercard’s results contrast with results released last week by Visa, which slightly missed revenue estimates, a rare occurrence that pushed the stock lower after the report. Shares of Mastercard rose 2.8% at 8.38am in early New York trading.

During the quarter, a federal judge rejected a US$30 billion deal brokered by Mastercard and Visa with US merchants, shutting down an attempt to settle longstanding litigation over credit-card swipe fees. Judge Margo Brodie of the US District Court for the Eastern District of New York said a trial in the matter should take place in New York, where the cases were originally filed. 

  - Bloomberg