MasterCard Inc said first-quarter earnings more than doubled, beating expectations, helped by the weak dollar and increased spending on its cards. Its shares rose more than 10 percent.
Investors are keenly awaiting information about how the economic slowdown will affect credit and debit card networks like MasterCard, but so far the companies are posting strong results.
MasterCard is seeing some evidence of U.S. consumers changing their spending habits: For example, more cardholders are using MasterCard for food and gas purchases, and fewer are buying luxury items, Chief Executive Bob Selander said on a conference call.
Spending growth was slower in the United States than other parts of the world, but volume growth was in the double-digits on a percentage basis globally.
MasterCard lifted the prices and fees it charges customers, including banks, during the quarter, which contributed to a 29.2 percent increase in revenue.
Both MasterCard on Tuesday and Visa on Monday said they have seen little evidence that any economic slowdown in the U.S. is affecting consumer spending.
