Payments processor Mastercard on Wednesday (Jan 31) reported an 11 per cent jump in fourth-quarter profit, driven by resilient consumer spending during the holiday season as labour markets remained strong and fears of a recession eased.

The company reported a profit of US$2.8 billion, or US$2.97 per share, for the three months ended Dec 31, compared with US$2.5 billion, or US$2.62 per share, a year earlier.

Growing expectations of a “soft landing” – where inflation cools without tipping the economy over into a recession – is also boosting confidence.

Net revenue rose 13 per cent to US$6.5 billion, Mastercard said.

Last week, Visa also reported a better-than-expected quarterly profit, thanks to a strong holiday season. REUTERS