Visa, Mastercard and American Express profits will rise as travel demand returns

Profits of US card companies are expected to rise. This is attributed to the fact that, despite high inflation, travel demand is rising, which contributes a lot to the companies’ revenue. 

Analysts are assuming that the cross-border payments of Visa Inc, Mastercard and American Express are likely to increase, citing that more companies are resuming business travel and more people are planning for vacation trips. 

A report from travel insurance aggregator Squaremouth.com. showed that pent-up demand for travel together with inflation had an impact on US travelers' spending. Travel spending is up 35% this fall compared with 2021. 

According to the leading US payment-processing companies, which posted quarterly earnings earlier this month, the deteriorating economic outlook hasn’t affected spending by consumers that are still well-positioned. 

Although American Express is more sensitive to interest rate hikes as credit cards make up the bulk of the revenue, it is seeing solid financial results. 

American Express will post its Q3 results on Friday. Visa and Mastercard are expected to announce financial results next week.