MasterCard Profits Rise While Visa Income Falls
MasterCard’s third-quarter profits jumped 14% over second quarter results, while Visa’s profits declined 28% during this time.
Much of MasterCard’s success comes from two factors: its global expansion during the past few years and a worldwide transition from cash to credit. The company’s net revenue rose 16% to $2.22 billion, and its net income rose to $879 million.
“We had another good quarter with growth across all geographies,” said Chief Executive Ajay Banga.
Visa, the world’s largest debit and credit card company, experienced a decrease due to a larger-than-anticipated tax provision and unexpectedly soft spending in the United States. The company received a $74 million tax benefit in 2012, but in 2013, they were hit with a $574 million tax bill. Visa has not disclosed a reason for the tax bill at this time. The credit card giant’s net income fell from $1.66 billion to $1.19 billion, but its payment volume rose 13%.