Mastercard reported third-quarter profits that exceeded Wall Street forecasts Thursday, with the company's leadership highlighting its expanding role in artificial intelligence-driven commerce and dollar-pegged cryptocurrency payments. The Purchase, New York-based card network posted adjusted earnings of $3.96 billion, or $4.38 per share, for the quarter ended Sept. 30, surpassing analyst expectations of $4.32 per share.
Key Financial Highlights and Performance
- •Mastercard beat profit estimates with $4.38 per share versus the expected $4.32, driven by sustained consumer spending despite economic uncertainty.
- •The payment network's cross-border transaction volume jumped 15% on a local currency basis, while total revenue climbed 17% to $8.6 billion.
Net revenue rose 17% to $8.6 billion during the quarter. Cross-border volume, which measures spending on cards issued in one country but used in another, increased 15% when adjusted for currency fluctuations.
Consumer spending patterns have held steady even as President Donald Trump's trade and immigration policies raise questions about potential labor market weakness and persistent inflation.
Shares of the company edged slightly higher following the earnings release.
The results capped a strong reporting period for major U.S. payment processors. Visa topped quarterly profit projections earlier in the week, while American Express delivered record revenue by targeting affluent cardholders.
Strategic Focus on Emerging Technologies
CEO Michael Miebach told analysts that companies throughout the payments industry are working with Mastercard's consulting divisions to prepare for what he called "agentic commerce" — transactions initiated by artificial intelligence systems rather than humans directly.
"Players across the payments ecosystem are partnering with Mastercard and our dedicated consulting teams to ready themselves for agentic commerce," Miebach said during the company's earnings call.
The comments came days after PayPal's stock surged on news of a partnership with OpenAI that allows purchases through ChatGPT using PayPal's platform. Industry analysts view the payments sector as vulnerable to disruption as AI-powered agents and Stablecoins promise to reshape how consumers transfer money.
Miebach declined to address reports that Mastercard is close to acquiring Zerohash, a firm that builds stablecoin infrastructure, but he stressed the growing importance of these digital currencies in payment systems. "Like agentic commerce, we believe Stablecoins are an attractive and growing opportunity for our network," he said.
Stablecoins are cryptocurrencies designed to hold a fixed value, typically maintaining a one-to-one ratio with the U.S. dollar. Proponents say they can cut both the time and cost required to settle transactions.
Outlook and Industry Positioning
Mastercard's third-quarter results demonstrate the company's ability to maintain its core business while positioning itself for technological shifts in how payments are processed. The card network's dual focus on AI-driven commerce and cryptocurrency infrastructure reflects broader changes rippling through the financial services industry, where traditional payment rails face competition from emerging digital alternatives.