MasterCard beats expectations as customers seek priceless memories abroad

 
Suzie Neuwirth
MasterCard customers are doing more of their spending abroad which boosted the firm's profit (Source: Getty)

Mastercard customers spent more abroad during the third quarter, helping the payment processing company beat expectations with a small rise in profit.

The NYSE-listed firm posted a 16 per cent rise in cross-border volumes – the amount people spend in transactions in other countries – which helped the total volume of transactions rise by 13 per cent to $1.2trn (£784m).

Net income rose by one per cent to $1bn, or $0.91 per share, excluding a $50m after-tax charge related to the termination of a US employee pension plan. The consensus expectation was $0.87 per share.

Net revenue increased by two per cent to $2.5bn.

As of 30 September, 2.2bn MasterCard and Maestro-branded cards had been issued worldwide.

“We are pleased with the results we delivered this quarter, in spite of the ongoing uncertainty in the global economy,” said Ajay Banga, president and chief executive.

“We continue to see double-digit growth in both volume and transactions in most of our regions around the world.

“As the world becomes more digitally driven, our innovations and investments in things such as MasterPass, EMV and biometrics are helping to redefine the way people shop and pay with convenience and security.”

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