(Reuters) -Mastercard reported first-quarter profit that exceeded Wall Street expectations on Wednesday, on higher card spending by U.S. consumers despite rising borrowing costs and persistent inflation.
Payments firms have benefited from wage growth and a tight labor market that has afforded job security to its card users.
Gross dollar volume, the value of all transactions processed on Mastercard’s platform, rose 10% to $2.3 trillion. Cross-border volume, which tracks spending on cards outside of the country of their issue, rose 18%.
The New York-based company’s revenue and profit growth were powered by strong cross-border volume growth and new deal wins in every region, CEO Michael Miebach said in a statement.
Excluding one-time charges, the payments processor earned $3.31 per share, beating estimates of $3.24 a share, according to LSEG data.
Net revenue rose 10% to $6.35 billion in the quarter.
SEISMIC SHIFT
The payments technology industry is gearing up for a seismic shift following Capital One’s $35.3 billion deal to acquire Discover Financial.
The combination would create the biggest U.S. credit card issuer. Capital One, the third-largest issuer of Mastercard and Visa credit cards in the U.S., has said shifting its card portfolio from those two payment giants to Discover’s network would help it generate $1.2 billion in 2027.
Mastercard had earlier said that it does not expect its relationship with Capital One to change and would continue to cooperate.
(Reporting by Mehnaz Yasmin and Niket Nishant in Bengaluru; Editing by Arun Koyyur)
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