Digital Megatrend Digital keeps MasterCard growth star-news.press/wp

The results of the second quarter of MasterCard are a good reminder that one of the largest commercial transformations over the past fifty years-the transformation from cash to digital payments-is still ongoing.

Cards network Publishing net income of $ 3.7 billionOr $ 4.07 per share, just over $ 4.02 Estimation of approval. Revenue increased by 17 % year on an annual basis to $ 8.1 billion, driven by continuous growth in purchase and cross -border transactions, one of the most profitable business lines in MasterCard.

The total dollar size 9 % rose to 2.7 trillion dollarsWith the presence of 15 % across border sizes with travel performance despite the volatile total image. The company addressed the payment of 42.7 billion, an increase of 12 % over the previous year, which reflects both the increasing consumer activity and the ongoing gains in MasterCard in deduction, credit and commercial payments.

It is still a space for running

In the United States and Western Europe, where the largest part of the trade is already digital, MasterCard presses more growth by capturing more daily transactions-thinking about transportation prices, buying the store, and the orders of restaurants that do not continue. In emerging markets, the possible runway is much longer: in many countries, cash still represents half of consumer spending, and the company expands partnerships with banks, technology and governments to maintain the speed of cards and adopt the portfolio.

The results also provide a reading of consumer behavior and electronic payments in general.

Because MasterCard sits at the World Trade Center (measuring its sizes in TrillionThe results act as a real -time pulse verification on consumer behavior, especially among the wealthy. These recent figures indicate that although inflation and political fluctuations-including prices that depend on customs tariffs-are still fears, high-income consumers are still ready to spend, especially on travel. This pattern repeats the results of the main airlines that show that the distinguished groups continue to grow, even with moderate spending or decline between consumers at the lower end of the income segment.

Moreover, while electronic payments may not seem to be a new, troubled story-because the infrastructure is now everywhere, and smartphones have made card payments almost invisible-Mastercard card numbers indicate that the huge direction still has years, if not contracts, for operation. The revolution is so huge that we are somehow in the first or middle part of the game, not the final half.

Wall Street reaction

The MasterCard mixture of mature market gains, emerging market adoption, and high margin services are the reason that the company, along with the visa, is still one of the most constantly profitable plays in the S&P 500.

Shares It increased by 1 % in market trading On Tuesday, while investors takes small profits and the size continues to grow as a sign that this “old” story still remains a lot of life.