Mastercard (MA.N) reported a higher fourth-quarter profit on Thursday as a resilient economy encouraged consumers to ramp up spending during the holiday season, sending the company’s shares up 2 per cent before the bell.

Spending continues to be underpinned by a solid labor market and wage growth that have spurred consumer confidence, while retailers also offered discounts to attract budget-conscious shoppers during the holiday season between Thanksgiving and Christmas.

Mastercard’s gross dollar volume, the value of all transactions processed on the company’s platform, rose 12 per cent in the fourth quarter.

Cross-border volume, which tracks spending on cards outside of the country of their issue, jumped 20 per cent.

Mastercard has a more balanced global exposure compared with its peers, with the company benefiting from continued stability in volume growth, analysts have said.

The company has also focused on bolstering its value-added services such as fraud protection to diversify its business model.

Revenue from the company’s value-added services and solutions unit rose 17 per cent in the fourth quarter. Mastercard’s net revenue increased 16 per cent to $7.49 billion.

The company forecast 2025 net revenue to increase in the low double-digits percentage range, compared with the average analyst estimate of 12.7 per cent growth, according to data compiled by LSEG.

Mastercard’s net income rose to $3.34 billion, or $3.64 per share, in the three months ended Dec. 31, compared with $2.79 billion, or $2.97 per share, a year earlier.

American Express (AXP.N) last week also reported better-than-expected quarterly revenue on strong holiday spending.

Mastercard’s shares jumped 23.5 per cent in 2024, outperforming rival Visa’s (V.N) 21.4 per cent gain. Last month, Mastercard unveiled a $12 billion share repurchase program.

Visa, the world’s largest payments processor, will report earnings later in the day.