Mastercard has posted its results for the third quarter, reporting a net income of $1.2 billion, an increase of 21% versus the year-ago period.
Its net revenue saw a 14% increase to $2.9 billion, which Mastercard says is mainly down to three key factors:
- An increase in processed transactions of 18%, to 14.5 billion
- An increase in cross-border volumes of 12%; and
- An 11% increase in gross dollar volume, on a local currency basis and adjusting for the impact of recent EU regulatory changes, to $1.2 trillion.
Mastercard these were to some extent offset by “an increase in rebates and incentives, primarily due to increased volumes and new and renewed agreements”.
Also, excluded from its metrics is Mastercard’s domestic EEA co-badged volume due to new EU regulation, which meant the company no longer charges fees on that volume.
“Our business continues to perform well, and we are pleased with our strong growth in revenue and earnings per share this quarter,” said Ajay Banga , Mastercard president and CEO.
Mastercard’s announcement comes after its rival, Visa, posted its own strong quarterly announcement. The company’s earnings for the fourth fiscal quarter rose by 28%, driven by an increase in payments volume and transactions processed, as well as its acquisition of Visa Europe.
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