The pandemic-led lockdowns and social distancing restrictions hurt spending on several discretionary goods, travel, entertainment and fuel, thus impacting payment network giants Visa, Mastercard, American Express and Discover. However, these companies are experiencing improved metrics with the easing of lockdowns.
Moreover, the pandemic has created an opportunity for payment networks due to a surge in e-commerce and the preference for contactless payment options. Last month, Mastercard revealed the results of its survey of small businesses across North America and said that 76% of these companies indicated that the pandemic prompted them to become more digital with 82% changing how they send and receive payments.
The TipRanks’ Stock Comparison tool will help us place Mastercard and Visa alongside each other and see which of these leading payment companies offers a better investment opportunity.