Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Credit Card Use Grows Worldwide

Credit Card Use Grows Worldwide

By
Add to Favorites:
Credit Card Use Grows Worldwide

Plastic is, once again, increasing in popularity. More people than ever before are using credit and debit cards to pay for their purchases. The proof is in the profits: MasterCard’s earnings are higher-than-expected, due to an increase in credit and debit cards transactions in emerging markets.

“A solid global performance, including strong increases in volume and processed transactions, fueled revenue growth this quarter,” Ajay Banga, Chief Executive at MasterCard, issued in a statement.

The MasterCard payment empire includes the multi-national debit card service Maestro and the worldwide interbank network Cirrus, as well as their own namesake plastic powerhouse: the MasterCard. Those brands are licensed to more than 22,000 financial institutions for use in their own payment programs, according to investors.com.

JPMorgan analyst Tien-tsin Huang stated in a report that “the MasterCard network includes 1 billion cards and more than 32 million merchant locations worldwide.”

The company gains revenue as a result of the number of transactions processed, as well as through the volume of gross dollar purchases.

The Federal Reserve reported that June saw tremendous increases in consumer borrowing. Credit showed the biggest gain since August of 2007, with an increase of $15.5 billion. That’s nearly three times as much as the $5.08 billion rise in May.

Debtmerica.com reports that “the amount of money spent on consumers’ credit cards and the number of times they were used both increased considerably on a year-over-year basis during the month of July.”

This all coincides with the Wall Street Journal reporting that U. S. retail sales rose in July. Consumers have been spending more on everything ranging from gasoline to electronics, as grocery stores, furniture stores, clothing stores and online retailers all reported gains.

Retail sales have historically been a meaningful indicator of consumer spending and tend to be a driving force for economic growth.

However, the increasing use of debit and credit cards by consumers could simply be a result of elevated costs. Steep gasoline and food prices nationwide may be forcing people to pull out plastic at the register for their household necessities, instead of cash.

Add to Favorites:

Related News:

New Credit Card by Amazon and Chase

By Dar Dowling, Posted: January 19, 2017

Amazon.com, Inc. and Chase have joined together to roll out the new Amazon Prime Rewards Visa Signature Card offering 5% back on all Amazon.com purchases. Continue reading
Wix and Square Team Up to Make Payments Easier

By Dar Dowling, Posted: January 18, 2017

Wix, a cloud-based web development platform letting people set up a wide range of websites, is teaming up with Square to provide merchants and entrepreneurs a new method of taking payments for products and services bought online and in ... Continue reading
United’s MileagePlus Loyalty Program Voted Best

By Dar Dowling, Posted: January 17, 2017

Have you ever wondered what rewards program are trending with world travelers? Well, if you have, the word is out United's MileagePlus loyalty program scored the title of Best Overall Frequent Flyer Program for 2016 in Global Traveler. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. We’ll automatically match all the cash back you earn at the end of your first year. New cardmembers only.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit