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Updated February 1st, 2024 at 08:00 IST

Payment processor Mastercard's Q4 profit jumps 11% on resilient spending

Payment processor Mastercard's Q4 profit jumps 11 per cent on resilient spending

Reported by: Business Desk
Payment processor Mastercard's Q4 profit jumps 11% on resilient spending
Payment processor Mastercard's Q4 profit jumps 11% on resilient spending | Image:Mastercard
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Q4 Result: The second largest payment tech firm Mastercard on January 31 reported an 11 per cent jump in fourth-quarter profit, driven by resilient consumer spending during the holiday season as labor markets remained strong and fears of a recession eased.

The New-York headquartered company reported a profit of $2.8 billion, or $2.97 per share, for the three months ended December 31, compared with $2.5 billion, or $2.62 per share, a year earlier.

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Growing expectations of a “soft landing”, where inflation cools without tipping the economy into a recession, has boosted consumer confidence.

A survey by the University of Michigan indicated that the US consumer sentiment hit its highest level in 2-1/2 years in January.

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Gross dollar volume, the dollar value of all transactions processed on Mastercard's platform, climbed 10 per cent.

The cross-border volume, a gauge of travel demand that tracks spending on cards outside the country of their issue, jumped 18 per cent.

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On the other hand, the net revenue rose 13 per cent to $6.5 billion, Mastercard said.

Last week, Visa also reported a better-than-expected quarterly profit, thanks to a strong holiday season.

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Published January 31st, 2024 at 19:11 IST

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