Mastercard Inc. reported stronger-than-expected earnings and revenue for the second quarter as consumers boosted their spending.
Mastercard shares jumped 1.5% in premarket trading. The stock closed Wednesday at a record high of $130.99.
Chief Executive Ajaypal Banga said the company has been looking beyond cards to focus on electronic payment services for issuers and merchants that allow instant disbursements and streamlined business-to-business payments.
The company’s customers charged more on their debit and credit cards in all regions in the second quarter, as Latin American gross dollar volume jumped the most.
Over all for the second quarter, Mastercard reported a profit of $1.18 billion, or $1.10 a share, up from $983 million, or 89 cents a share, a year earlier.
Revenue increased 13% from last year, to $3.05 billion, driven by a 17% increase in switched, or processed, transactions and a 14% increase in cross-border volumes on a local currency basis.
Analysts polled by Thomson Reuters had expected $1.04 in per-share earnings on revenue of $3 billion.
The company has benefited as consumers ramp up their spending amid a recovering economy. Its business last year accounted for about 25% of purchases on general purpose debit and credit cards in the U.S., while competitor Visa accounted for 59%, according to trade publication the Nilson Report.