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MasterCard posts 1st quarter profit leaps 25 percent as card use rises worldwide
NEW YORK (AP) ' MasterCard says its first-quarter profit rose 25 percent on a big spike in card use overseas.
The Purchase, N.Y.-based payments processor's net income was $682 million, or $5.36 per share, on revenue of $1.8 billion. That exceeded Wall Street's expectations for profit of $5.29 per share, on revenue of $1.73 billion.
Purchase volume, the amount spent on debit and credit cards with MasterCard logos, rose 17 percent worldwide.
Mastercard Inc. says it increased rebates and incentives, a common practice in the industry aimed at winning business. The topic is one that concerns analysts, because it could weaken results in the future.