MasterCard saw its first-quarter profits spike by nearly 25%, outpacing the predictions of industry analysts. The company reported a profit of $562 million versus last year’s results for the same period of only $455 million. The surge in revenue is being attributed to the fact that consumers are using their credit cards more to make routine purchases.

The companys shares gained more than three percent in response to the positive earnings report, and MasterCard’s CEO said that while company growth was widespread, much of the positive news can be traced to the American consumer who is spending more with credit cards, including discretionary purchases.

That comes as a welcome sign that much of the belt tightening and penny pinching of the past 3-4 years may be behind us and that the economy, boosted by consumer confidence, is regaining lost momentum. MasterCard was also helped by the fact that many businesses are seeing increased productivity, which translates into more travel and transportation expenses charged to credit cards.

Similar Posts:

• How Much Can You Really Save By Penny Pinching?
• Money for Life Applied Principle #10 – Create a Spending Plan Part II
• Credit card fears should not put off online shoppers
• Credit card fears should not put off online shoppers
• Chase Freedom Mastercard $100 Bonus and 0% APR on Balance Transfers for 12 Months