Despite a continued slump in consumer spending, MasterCard Worldwide today reported strong results for the first quarter ended March 31, especially in worldwide purchase volume and cross-border spending. U.S. debit purchase volume also continues to grow.
U.S. credit and charge card sales during the quarter totaled $110 billion, down 2.7% from $113 billion during the same period a year ago. Outside the U.S., credit and charge card purchase volume totaled $241 billion, up 24.9% from $193 million.
Purchase transactions for U.S. credit and charge cards totaled 1.3 billion, down 7.1% from 1.4 billion last year. Outside of the U.S., credit and charge card purchases totaled 2.9 billion, up 11.5% from 2.6 billion.
MasterCard issuers had 191 million credit and charge cards on issue in the U.S. at the end of March, down 18% from 233 million a year earlier. Outside the U.S., issuers had 498 million credit and charge cards on issue, up 0.8% from 494 million.
U.S. debit card sales, including PIN-debit purchases switched by competing brands appearing on debit MasterCards, totaled $84 billion, up 6.3% from $79 billion. Outside the U.S., debit card sales totaled $38 billion, up 46.2% from $26 billion.
U.S. debit cardholders initiated 2.1 billion purchases, up 5% from 2 billion. Outside of the U.S., total debit card purchases rose 31.8%, to 663 million from 503 million.
U.S. debit MasterCard issuers had 122 million cards on issue at the end of March, down 1.6% from 124 million a year earlier. Outside the U.S., issuers had 145 million debit cards on issue, up 36.8% from 106 million.
Regionally, total purchase volume in Europe was $139 billion, up 21.9% from $114 billion. Cardholders in the region initiated 1.8 billion purchases, up from 20% from 1.5 billion.
Purchase volume in the Asia-Pacific, Middle East and Africa region totaled $92 billion, up 33.3% from $69 million. Cardholders in the region initiated 1.1 billion purchases, up 18% from 932 million a year earlier.
Purchase volume in Latin American totaled $27 billion, up 35% from $20 billion. Cardholders initiated 488 million purchases, up 9.7% from 445 million.
Total purchase volume in Canada was $21 billion, up 23.5% from $17 billion a year earlier. Cardholders initiated 240 million purchases, up 7.1% from 224 million.
Total global purchase volume (credit, charge and debit cards plus cash volume) for the first quarter was $473 billion, up 15.1% from $411 billion last year.
Cross-border volume grew 38.9% to $446 million from $321 million a year earlier, MasterCard says.
As a company MasterCard reported net income for the quarter of $455 million, up 24% from $367 million a year ago. Net revenue rose 8.3%, to $1.3 billion from $1.2 billion.
MasterCard’s profit was much higher than what some analysts estimated. In fact, several analysts from New York-based Barclays Capital Inc. predicted in a recent research note net income of $403 million for MasterCard’s first quarter. Barclays Capital attributes this difference based on “a combination of strong cross-border revenue growth and low advertising and marketing spend,” the analysts say in a research note.
Robert Selander, MasterCard CEO, told analysts during a conference call this morning he attributes the quarter’s solid performance to healthy cross-border activity and to an overall “economic recovery in the pockets around the world.” Moreover, while U.S. credit growth still was negative, MasterCard “has moved beyond the double-digit declines of 2009,” he noted.
Despite the reduction U.S. credit card activity, the company still experienced “positive growth in processed U.S. credit volume for the first time in about 18 months, with the trend continuing through the first four weeks for April,” Selander said.
