Mastercard Inc beat quarterly profit estimates as travel demand held firm in the face of a turbulent economy, and bet on consumer spending resiliency throughout the year.

Rising interest rates and persistent inflation have had little impact on wealthier consumers, who continue to spend on travel and leisure, boosting transaction volumes from payment processors.

“Consumer spending has remained remarkably resilient despite continued economic uncertainty”, Michael Miebach, the company’s chief executive, said in a meeting with analysts.

Suppressed consumer demand also helped Mastercard, driving a 35 % increase in cross-border volumes, an indicator of travel demand that tracks spending on cards beyond the country of issuance.

“Cross-border recovery trends remain constructive, and international volume growth is strong,” KBW analysts note in a note.

Gross dollar volume, which represents the total dollar value of all transactions processed, increased 15 % in local currency to $ 2.1 trillion.

The results capped off a mixed quarter for the largest US card companies, in which concerns persisted about an imminent recession and inflation that has been at its highest for decades.

K. Tovar

Source: Descifrado

(Reference image source: file)

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