Mastercard and Visa will rely on China reopening to give travel spending a boost, Wall Street analysts said, as the pace of growth in other parts of the world eases from a post-pandemic boom.
Executives at the payments companies on Thursday pointed to further room for travel recovery in China, which earlier this month reopened its borders after dropping its stringent COVID-19 control measures.
"The impact of the rebound in cross-border transactions is likely to diminish going forward, and this recovery could be at risk in the near term if the economy takes a negative turn," Morningstar analyst Brett Horn said.
"However, the reopening of China should act as a modest boost."
"Consumer spending has remained surprisingly resilient, but reopening has not been worked through in earnest – especially in Asia where there is pent-up travel demand post China reopening," said Macquarie Group analyst Paul Golding.
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