US Credit Card Spending Rises 15%: Mastercard Report

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Mastercard’s latest financial results underscore the ongoing trend of American consumers relying on credit cards for their everyday purchases. According to additional documents provided by the payments network, gross dollar volumes surged by 15% to reach $2.1 trillion. Within the United States, volumes witnessed a notable 9% increase, totaling $673 billion. A closer examination reveals that loan volume in the United States experienced a robust growth of nearly 15%, reaching $343 billion.

The surge in cross-border volumes also grabbed attention, marking a remarkable 35% increase in the most recent quarter. Particularly noteworthy is the 17% surge in card-not-present cross-border volumes, excluding travel. However, in the initial weeks of April, cross-border volumes witnessed a slight dip, settling at 29%.

Interestingly, cross-border volumes have exceeded 171% when compared to pre-pandemic levels in 2019. This surge can be attributed to tourists using their cards for increased spending on experiences while traveling.

During a conference call with investors, Mastercard’s CEO, Michael Miebach, highlighted the resilience of consumer spending, describing it as “remarkably resilient.” He also emphasized the healthy macroeconomic backdrop, with savings levels remaining above historical averages and credit remaining accessible to consumers. Miebach also acknowledged China’s role as a “positive catalyst” in boosting travel-related spending, thanks to its increased openness.

Furthermore, Miebach highlighted the company’s remarkable expansion in terms of its “acceptance footprint,” which has now surpassed 100 million sites. This represents a more than threefold increase over the past five years, underscoring Mastercard’s commitment to expanding its reach and accessibility. Additionally, Miebach pointed out the significant potential offered by digitization, particularly in regions like Latin America and India. The shift from cash payments to cards and other digital channels presents lucrative opportunities for growth in these markets.

In summary, Mastercard’s financial results reflect the enduring popularity of credit cards among American consumers for everyday transactions. The substantial growth in gross dollar volumes, particularly in the United States, coupled with the surge in cross-border spending, underscores the resilience and adaptability of consumer spending habits. Moreover, Mastercard’s strategic initiatives, including the expansion of its acceptance footprint and focus on digitization, position the company for continued growth and success in the evolving payments landscape.