Mastercard Shares Jump After Profit Beats Expectations

According to a recent Reuters report, Mastercard's MA Q3 profit rose 15% as consumers abroad increased their spending. The company, which processes credit card transactions but does not lend directly to consumers, makes money every time someone buys something with a credit or debit card. Chief Executive Ajay Banga, who took charge in July, attributed the good results to an increase in cross-border spending and strong spending growth outside the United States. MasterCard has relatively few opportunities for growth in the United States, where rival Visa Inc (V.N) dominates the debit processing market and most consumers already use credit and debit cards. Banga, is betting the company can grow more robustly in emerging markets like Brazil and India, where consumers still use cash more than plastic. Mastercard shares are trading 3% higher at $246.11 on the news.