Visa, MasterCard earnings soar in first three months as cardholders spend more money

Credit cardholders appeared to shrug off concerns about the global economic outlook during the first three months of 2012, spending more on clothes, restaurants and holidays than they did a year ago.

Visa, the world’s largest credit and debit card network, reported a 47 percent jump in net profit to $1.29 billion, compared with $881 million for the same period a year ago, Bloomberg reported.

Adjusted earnings per share, which exclude one-off items, reached $1.60 and beat analysts' expectations for $1.51.

According to Reuters, the reason for the sharp increase was simple — people around the world spent more with their cards.

And Visa expects the upward trend to continue, increasing its full-year earnings per share growth forecast to “high teens to low twenties” from "high teens" three months ago.

MasterCard, which operates the world’s second largest card processing network, said its profit soared 21 percent in the first three months to $682 million from $562 million a year earlier, according to the Financial Times.

It also beat analysts’ expectations.

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Visa's international customers, like MasterCard's, boosted their spending at a faster rate than those in the United States, the Associated Press reported.

Visa reported international transaction revenue soared 17 percent year-on-year, compared with 12 percent in the United States, the AP said.

MasterCard saw usage of its cards in the United States rise 14 percent, below the more than 20 percent increase recorded internationally, according to InvestorPlace.

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