Mastercard reported a higher fourth-quarter profit Thursday as a resilient economy encouraged consumers to ramp up spending in the holiday season.

The company's shares rose 3.7% to $569 in premarket trading.

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.

The company's net revenue jumped 16% to $7.49 billion.

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.