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MasterCard sees foreign growth, higher profits

MasterCard Inc. says increased use of credit and debit cards, especially overseas, helped lift its third-quarter profit by 15 per cent.

MasterCard Inc. says increased use of credit and debit cards, especially overseas, helped lift its third-quarter profit by 15 per cent.

The payments processor recorded a net income of $518 million, or $3.94 per share, for the three months ending Sept. 30. That compares with $452 million, or $3.45 per share, in the year-ago quarter.

Analysts polled by Thomson Reuters, on average, were expecting profit of $3.54 per share, on revenue of $1.41 billion.

MasterCard said usage of credit and charge cards in the United States dipped 0.7 per cent, to $132 billion. Domestic debit card usage dropped five per cent, to $108 billion.

MasterCard said the declines can be explained by changes at the banks that issue its cards. The company lost deals with several major banks, most notably the former Washington Mutual, which was taken over by JPMorgan Chase during the height of the financial crisis in 2008.

Chase has been converting its customers to cards bearing Visa logos, a process that is expected to be completed by the middle of 2011.

Chief financial officer Martina Hund said excluding the “roll-off” effect, debit card use rose nearly 16 per cent in the third quarter.

 
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