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MasterCard Inc. on Friday said purchase volume made with its U.S.-issued credit and debit cards grew by 8.7% in the fourth quarter and 7.7% for all of 2015, compared with the same periods a year ago.
MasterCard also said the number of U.S.-issued credit and debit cards increased. In the fourth quarter of 2015, it counted 192 million credit cards and 185 million debit cards, a total of 377 million. That’s a 6.8% increase over 2014.
Worldwide, not including U.S. figures, MasterCard said there were 1.19 billion total cards, a 16.7% increase from 1.02 billion in 2014.
Purchase volume made with U.S.-issued credit and debit cards bearing the MasterCard mark totaled $324 billion in the quarter, an 8.7% increase from $298 billion the year prior. For all of 2015, purchase volume increased 7% to $1.23 billion from $1.15 billion.
Globally, outside of the United States, total purchase volume for the quarter was $558 billion, a 1% decrease from $561 billion a year ago. Annually, the purchase volume was $2.13 billion, a 0.5% decrease from $2.14 billion.
“The U.S. and European economies are showing signs of strength,” Martina Hund-Mejean, MasterCard chief financial officer, told analysts during a conference call to discuss fourth-quarter earnings. “But, the rest of the world remains challenged. We have navigated through periods like this.”
MasterCard, like its competitors that also have business in Europe, is contending with new interchange regulations for consumer credit and debit cards that went into effect Dec. 9. The impact on MasterCard has yet to be felt, said Ajay Banga, president and chief executive. For most European nations, interchange is now capped at 0.3% and 0.2% for credit and debit cards, respectively
“Nothing has changed in six weeks,” Banga said. Noting that the preamble discussion about the caps started long ago, Banga said the conversation about their impacts on banks, acquirers and merchants has been ongoing. “Banks are likely worried about the impact on their revenue streams.” And more merchants should be willing to accept electronic payments because of the lower interchange costs, he said.
In its earnings, the card brand also says its fourth quarter net income was $890 million, an 11.1% increase from $801 million in the 2014 fourth quarter. It finished 2015 with a net income of $3.8 billion, a 5.6% increase from $3.6 billion in 2014.
