New York  - MasterCard Inc, the world's second-largest credit card network, on Thursday reported a jump in second-quarter profits of 26 per cent.

The increase was attributed to higher fees and the results beat analysts' expectations.

MasterCard's second-quarter income was 349 million dollars, compared with a loss of 747 million dollars a year earlier, the company said in a statement.

"We are very pleased with our second-quarter financial performance and are adapting well to the challenging economic environment," said Robert W Selander, MasterCard president and chief executive officer.

"At the same time, we continue to invest in the future so that we are solidly positioned once the economic tide begins to turn," he said.

On Wednesday, Visa Incorporated, the world's biggest electronic payment network, reported a leap in earnings of 73 per cent to 729 million dollars compared to the same period last year.

Although consumers have cut back spending amid rising unemployment, Visa processed 8 per cent more transactions in the quarter, displacing cash and cheques for retail purchases and some government-benefit programmes, Bloomberg news reported.

Visa reported a 2 per cent increase in net operating revenue to 1.6 billion dollars. Adjusted operating expenses declined 9 per cent and total operating expenses dropped
15 per cent.(dpa)