MasterCard. Picture: REUTERS
MasterCard. Picture: REUTERS

Bengaluru — Mastercard beat Wall Street's estimates for quarterly profit on Tuesday, as a strong US job market and a boom in online shopping boosted transaction volumes on the company's payment network.

The company, which makes most of its money from card swiping fees and processing transactions, said its "gross dollar volume" - the dollar value of transactions processed — rose 5.4% to $1.48-trillion in the first quarter.

That drove net revenue 8% higher to $3.9bn, beating analysts' average estimate of $3.86bn.

The company said it processed 23.82-billion transactions in the quarter, up 18%.

US retail sales rose to their highest in one-and-a-half years in March, according to data published earlier in April, with almost all sectors including vehicles, electronics, appliances and food and beverages registering growth.

The company's net income rose to $1.9bn, or $1.80 per share, in the first quarter ended March 31 from $1.5bn, or $1.41 per share, a year earlier. 

On an adjusted basis, it earned $1.78 per share, beating analysts' average estimate of $1.66, according to IBES data Refinitiv.

Rival Visa last week reported a 14% jump in net profit, but its shares fell following the earnings as investors fretted over an increase in expenses, and sluggish cross-border volume growth.

Mastercard's share rose 1.17% in early trading on Tuesday. 

Reuters