“Credit-card companies are riding a surging wave in electronic payments and benefiting from continued growth in consumer spending,” Saabira Chaudhuri reports for The Wall Street Journal. “MasterCard Inc. reported better-than-expected quarterly results on Thursday, sending the company’s shares up 7.1% in recent trading.”
“The results — which came after rival Visa Inc. also reported strong results and delivered a better-than-expected revenue outlook for 2015 — show that card giants are benefiting from a wave of migration away from cash and checks toward spending on credit and debit cards even as consumer-spending growth remains mixed globally,” Chaudhuri reports. “‘Cash is the real opportunity for companies like us and that’s what we’re focused on,’ said MasterCard Chief Executive Ajay Banga on a conference call with analysts. MasterCard reported a profit of $1.02 billion, or 87 cents a share, up from $879 million, or 73 cents a share, a year earlier. Revenue rose 13% to $2.5 billion.”
“MasterCard, along with Visa and others, has also joined with Apple Inc. on its Apple Pay mobile payments platform. ‘The recent launch of Apple Pay will only help with the conversions of the physical and digital worlds,’ said MasterCard Chief Executive Ajay Banga,” Chaudhuri reports. “‘When people don’t have to fumble for their wallet and card but can just pay with their cellphones, they will be using that mode of payment a heck of a lot more,’ said Chief Financial Officer Martina Hund-Mejean. ‘Going contactless will be a huge driver.'”
Read more in the full article here.
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