More use of plastic money boosts Mastercard’s profit
Mastercard is benefiting as more people replace cash and cheques, and it has begun investing in technology beyond the plastic cards many consumers know
New York — Mastercard, the second-largest payments network, said fourth-quarter profit climbed 4.8% as customers spent more on its cards. Net income rose to $933m, or 86c a share, from $890m, or 79c, a year earlier, the company said on Tuesday in a statement. That beat the 85c average estimate of 30 analysts surveyed by Bloomberg. "Our continued investments in digital, safety and security, data analytics, loyalty and processing position us well for future growth in our core business and new payment flows," CEO Ajay Banga said in the statement. Banga has focused on working with governments abroad and expanding offerings outside the US, where Mastercard generates most of its revenue. The company is benefiting as more people replace cash and cheques with electronic payments, and has begun investing in technology beyond the plastic cards many consumers know. Mastercard shares climbed 5.9% this year to the end of Monday, outpacing the 5% advance of the 67-company S&P 500 information tech...
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