Mastercard posted a jump in first-quarter profit on Thursday as resilient consumer spending ensured sustained transaction volumes on its network.
Its net income climbed to US$3.9 billion, or $4.35 per share, in the quarter, compared with $3.3 billion, or $3.59 per share, a year ago.
Spending has largely held up despite concerns of economic uncertainty fueled by the Iran war and U.S. tariffs, even though consumer confidence has waned in a sluggish labor market.
A bulk of the spending is coming from wealthier households who continue to make discretionary purchases, while lower-income families pare back on non-essentials.
Experts are increasingly highlighting the bifurcation as the so-called “K-shaped” economy continues to underpin consumer trends, cushioning industries such as travel and entertainment.
Wall Street executives and experts have said while trends have largely remained stable for now, higher gasoline prices spurred by the war could start pulling spending away from other categories.
Mastercard reported a seven per cent jump in gross dollar volume - the value of all transactions processed on its platform. Net revenue climbed 16 per cent to $8.4 billion in the quarter.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Arun Koyyur)
