Visa Inc. (V)

Mastercard beats profit estimates on higher consumer spending

Consumer spending in the United States, which accounts for more than two-thirds of nationwide economic activity, has been on an upswing, supported by a tightening labor market and cooling inflation. Purchase, New York-based Mastercard, like its bigger rival Visa Inc, generates revenue by facilitating credit- and debit-card transactions and both their revenue streams are closely linked to consumer spending power. Mastercard also benefited from consumer spending outside the United States, with its cross-border volumes — the value of transactions made by overseas card-holders — rising 14 percent on a local currency basis in the second quarter ended June 30.