PURCHASE, N.Y. – MasterCard reported a 25% surge in first quarter earnings yesterday, as consumers spent more with their cards and revenue rose faster than expenses.
Net income for the first quarter was $682 million, compared to $562 million for the same period last year. Revenues were up 17% for the quarter, to $1.76 billion.
The results were “driven by an increase in processed transactions” and represented the “highest quarterly growth rate since” MasterCard’s initial public offering in 2006, said Ajay Banga, MasterCard spokesman.
Cardholders made $629 billion worth of purchases worldwide during the first quarter, up 17% from a year earlier, while the number of transactions processed increased 29% to 7.7 billion. The increase reflects, in part, the increasing movement of consumers globally to making payments electronically instead of with paper currency, the company said.
