MasterCard (NYSE: MA) reported Tuesday that first quarter earnings jumped 24 percent as the number of transactions the company processed and the prices they charged merchants to handle them were both higher in the period.
The credit card company said it earned $455 million or $3.46 a share in the first quarter, up from $367 million $2.81 a share in the same period a year earlier.
Revenue rose in the quarter to $1.31 billion, up 13 percent from $1.16 billion last year. The rise was helped by an 8.7 percent increase in purchase volume, along with a 5 percent increase to the prices it charges merchants.
“We are starting the year with strength across several of our business drivers, including healthy cross-border volumes, which contributed to our solid first quarter results,” said Robert W. Selander, MasterCard chief executive officer.
“We also made a number of announcements that position MasterCard well for continued success, including signing a long-term agreement for HSBC’s global mass affluent Premier credit business, and the ongoing adoption of MasterCard inControl with Fifth Third, J.P. Morgan and First National Bank of Omaha,” added Selander
MasterCard’s increase in transactions processed was mainly due to robust debit card use, which jumped 18 percent worldwide. Credit card use continued to lag, down 3 percent as consumers are still hesitant to take on new debt, choosing to pay for items up front.
