MasterCard's second-quarter profit rose a better-than-expected 33 per cent as the company processed more card transactions and revenue increased.

The New York-based payment processor beat the average Wall Street estimate despite signs that the US economy slowed in the quarter, and its shares rose 3 per cent in premarket trade.

Consumers increasingly rely on debit and credit cards for everyday purchases, rather than cash or other payment types. Processing companies like MasterCard and rival Visa benefit from this shift in consumer behaviour.

MasterCard today reported second-quarter net income of $608 million (€425 million)or $4.76 per share, up from $458 million, or $3.49 per share, a year earlier.

Analysts expected $4.23 per share, according to Thomson Reuters.

Visa also beat analysts' expectations when it reported quarterly results last week.

MasterCard's revenue increased 22 per cent to $1.7 billion as its cross-border and overseas business grew. The company also benefited from converting former Visa clients SunTrust Banks and Sovereign Bank to its own debit card system.

Overall, MasterCard's cross-border transactions rose 19.3 per cent, and processed transactions increased 17.4 per cent.

The company said it also gained from new processing business in the Netherlands and Brazil.

Total operating expenses increased 20 percent to $782 million. MasterCard said the rise was due to higher personnel costs related to acquisitions.

MasterCard shares were up $9.40 to $307.89 in premarket trading.

Reuters