MasterCard says its profit rose 17 per cent in the first quarter, as consumers across the globe spent more on their MasterCards.

The payment processor reported net income of US$1.02 billion (A$1.27 billion), up from US$870 million a year earlier. On a per share basis, MasterCard earned 89 cents versus 73 cents a year earlier. Net revenue was US$2.23 billion.

MasterCard’s profits beat expectations but the company’s revenue fell slightly short. Analysts surveyed by FactSet were looking for MasterCard to earn 80 cents per share on US$2.28 billion in revenue.

MasterCard showed strong growth on purchase volume, or the amount of money customers spent on their MasterCards. Purchase volume was US$783 billion in the first quarter, up roughly 12 per cent from a year earlier.

MasterCard president and CEO, Ajay Banga, said one headwind the company faces is lower oil prices. Lower oil prices have meant consumers are spending less money overall on petrol, and Banga said consumers are transferring those savings into paying off debt or savings accounts instead of spending on goods.

Banga also said MasterCard’s results were hurt by the strong US dollar. Total net revenue was up three per cent from a year earlier, but would have been up eight per cent removing the impact of the US dollar.

AP