Visa, Mastercard pin hopes on China reopening as travel boom fades
01/29/2023|5:00:06 PM|Reuters

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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