MasterCard Inc.'s fourth-quarter revenue rose 10.7% from a year earlier to $1.4 billion as transactions made with its credit and debit cards rose.
The Purchase, N.Y., card network on Thursday said processed transactions rose 6.3% to 6.2 billion. The amount of money people spent with its cards also rose 10.8% to $567 billion.
But the higher volumes, along with new and renewed agreements with banks that issue its cards, caused an increase in the rebates and incentives it pays to those banks.
"Our business momentum was fueled by products and solutions that create efficiencies for cardholders, businesses and governments while driving future growth," Ajay Banga, MasterCard's president and chief executive, said in a press release.
MasterCard's net income rose 41.2% to $415 million. It said it earned $3.16 per diluted share in the quarter, up from $2.24 a year earlier. Analysts had estimated the company would earn $3.04 per share, according to Thomson Financial.
MasterCard's results mirrored those of competitor Visa Inc., which on Wednesday reported its payments volume made with its cards increased 14% to $829 billion and the number of transactions it processed rose 15% to 13 billion.
