MasterCard, the payment processing network, saw a 21 per cent first-quarter profit increase amid a global shift by consumers from cash to card payments, Financial Times reported.

The company on Wednesday, May 2 said that net income rose to $682m, or $5.36 a share, in the first three months of the year, from $562m, or $4.29 a share, in the same period a year ago.

Net revenues rose to $1.76bn from $1.5bn in the year-over-year quarter, but officials warned that growth would probably slow as the year progressed.

The extra day from a leap year and the U.S. tax season helped results in the first three months, while growth was strong last year making for tough comparisons as the year progresses.

Company officials nonetheless reiterated guidance that MasterCard could achieve a compound annual growth rate of 12 to14 per cent in net revenues and at least 20 per cent in earnings per share this year and next.

Worldwide purchase volume during the first quarter was up 17 per cent on a local currency basis versus the first quarter of 2011 to $629 billion. Processed transactions jumped by 29 per cent in the quarter to 7.7bn and, as of March 31, MasterCard’s customers had issued 1.8bn MasterCard and MasterCard branded cards.

The rise in cardholder spending was partially offset by an increase in rebates and incentives. Total operating expenses were $758m, up 14 per cent from the first quarter of 2011.

Gross dollar volume, a combination of purchases and cash withdrawals on cards, grew by 19 per cent in Europe in spite of the problems in the region. Growth rates exceeded 20 per cent in the Asia Pacific countries, central Europe, the Middle East and Africa.