(Reuters) - Mastercard 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% 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% in the fourth quarter.

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

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% in the fourth quarter. Mastercard's net revenue increased 16% 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% 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 last week also reported better-than-expected quarterly revenue on strong holiday spending.

Mastercard's shares jumped 23.5% in 2024, outperforming rival Visa's 21.4% 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.