Mastercard Inc. shares posted their biggest intraday drop since February as the payments network warned that overseas spending growth on the firm’s cards had weakened in recent weeks. Cross-border travel spending growth slowed in the month through April 28, climbing just two per cent from a year earlier, compared with an eight per cent gain in the first quarter, according to a presentation Thursday. The data through April 28 for cross-border travel points to “ a more pronounced slowdown ” than what was seen from Visa Inc., according to Truist Financial Corp. analysts including Matthew Coad. Mastercard shares were down 4.2 per cent to US$503.17 at 12:50 p.m. in New York. They’ve slipped nearly 12 per cent since the start of the year. So far this year, Mastercard and its rivals have benefited from strong consumer spending. American Express Co. saw billed business climb 10 per cent in the first three months of the year, while Visa shares jumped Wednesday after the company posted what analysts called “one of the cleanest” quarters in years. But the rise in geopolitical tensions, as well as some price pressures on items such as gas, have spurred concerns about how consumers will fare in the coming months. American Express said that airline growth had softened in the last few weeks of March into April because of disruptions from the Middle East conflict. “We are seeing cross-border travel get negatively impacted by virtue of the conflict,” Mastercard chief financial officer Sachin Mehra said in an interview. “There is a little bit of noise because of timing of holidays, which is impacting those drivers specifically as it relates to the timing of Ramadan and Easter this year versus last year. So that creates week-over-week impacts, but none of that is structural in nature.” Operating expenses in the first quarter totalled US$3.49 billion, slightly higher than the US$3.46 billion average estimate from analysts. In a bright spot for the firm, Mastercard’s adjusted net income of US$4.1 billion topped the average analyst estimate of US$3.92 billion, according to a statement Thursday. Payment-network net revenue rose 12 per cent. Mastercard kept its guidance for non-GAAP growth in net revenue on a currency-neutral basis steady, while slightly raising its outlook for forecast growth in GAAP net revenue. The firm now expects that to rise by a percentage in the high end of low double digits to low teens. Anxious about finances during global upheaval? Here’s what you can controlGarry Marr: When it comes to summer vacation planning, we’re all commodities traders now “The essence of what we’re seeing is the underlying strength of the consumer remains solid,” Mehra said. “And this is true in the United States and it’s true globally.” Mastercard reported US$8.4 billion in net revenue in the first three months of 2026. Analysts had expected the metric to reach US$8.25 billion. The company has been seeking to build out its capabilities, particularly with stablecoins and cryptocurrencies. In March, Mastercard struck a deal to buy stablecoin firm BVNK for as much as US$1.8 billion. The firm has also expanded its partnerships with digital-asset firms including Circle Internet Group Inc. and Binance. —With assistance from Georgie McKay. Bloomberg.com
