Mastercard's profit beats on strong card spending by US consumers

Mastercard MA.N reported first-quarter profit that exceeded Wall Street expectations on Wednesday, on higher card spending by US consumers despite rising borrowing costs and persistent inflation.

Payments firms have benefited from wage growth and a tight labor market that has afforded job security to its card users, reports Reuters.

Gross dollar volume, the value of all transactions processed on Mastercard's platform, rose 10 pre cent to $2.3 trillion. Cross-border volume, which tracks spending on cards outside of the country of their issue, rose 18 per cent.

The New York-based company's revenue and profit growth were powered by strong cross-border volume growth and new deal wins in every region, CEO Michael Miebach said in a statement.

Excluding one-time charges, the payments processor earned $3.31 per share, beating estimates of $3.24 a share, according to LSEG data.

Net revenue rose 10 per cent to $6.35 billion in the quarter.