Payment Giants Forsee Increased Spending
Shares of payment stocks are up after brief travel stalls and purchase hesitancy set in following the emergence of the Omicron variant. American Express, Capital One, Fiserv and DCA member Mastercard shares more than doubled the overall market’s 3% gain so far this month.
Research shows the new Covid-19 variant has had less impact on spending than Delta. When Delta came on the scene, travel restrictions were severely tightened, and stimulus money was running out—causing spending levels to drop significantly. Only eight percent of trips are being canceled now, vs. 35% in August and September. Anticipate positive spending trends to continue.