Mastercard reported an increase in third-quarter earnings as the second-largest card network company benefited from its investments in the payments sector.
During the company’s earnings conference call Thursday, Chief Executive Michael Miebach noted the company’s “focused execution” of Mastercard’s strategy is working even in difficult economic times and as competition in the payments sector heats up.
”Our diversified business model and ability to modulate expenses position us well to navigate through periods of uncertainty while maintaining focus on our strategic objectives,” Miebach said during the call.
Net income at the Purchase, New York-based company rose 4% to $2.5 billion thanks to the “resilient” consumer spending despite inflation at highs not seen in more than four decades, and a recovery in cross-border travel following the COVID-19 pandemic, the company said in a Thursday press release. Mastercard’s net revenue jumped 15% to $5.8 billion, according to the release.
”Notwithstanding the continued strength in consumer spending, we will continue to watch the environment closely, including fiscal monitoring and other policy actions taken in response to events,” Miebach said on the call. “This will inform our actions as it always has.”
Gains in cross-border travel resulted from consumers to seeking new experiences as opposed to buying new products, according to Miebach.
“Cross-border travel continues to recover as border restrictions are progressively relaxed,” he said, adding that it more than doubled over 2019 levels for the third quarter.
The card company also said it has expanded the numbers of digital-first customers who are issued virtual cards in near “real-time,” creating an “end-to-end digital experience.”
Mastercard and JPMorgan Chase announced last month that Mastercard would be the exclusive payments network for the delivery company DoorDash’s credit card.