MasterCard posted a tremendous growth in profits in the second quarter, thanks to some significant increases in debit and credit card usage.
The company reported profits of $848 million for the quarter, an increase of 21% from a year ago.
The main factor in this growth is the increase in debit and credit card usage.
Revenue increased by 15% to $2.1 billion, which was mostly fueled by the 11% increase in processed transactions. Part of the increase may also be due to the 17% rise in cross-border volume, which reflects payments made in one country for a credit card issued in another.
Experts predict that an increase in consumer confidence is what is causing shoppers to use their cards more readily these days. This may also be due to the stabilization of the housing market, which frees up money that was not available a few years ago.
MasterCard is also seeing particularly strong growth in Europe, and they expect numbers to continue to rise in the coming years.
MasterCard's Chief Executive Ajay Banga said, "We expect to grow our total market share by 50% in the Nordic and Baltic region over the next five years."
A potential threat to these numbers is the upcoming regulatory proposals in Europe and the U.S. that may limit the interchange fees MasterCard and other issuers can charge to merchants who accept payments from them.