Consumer spending trends this year look “relatively positive,” Mastercard CEO Michael Meebach said in an interview with CNBC on Thursday following strong holiday data.
Mibach’s comments in an interview with Power Lunch came as the Covid omicron variant is still widespread around the world, including in the US. same
“We are heading into the new year with the momentum of the holiday season and trends continue to look relatively positive,” Meebach said, noting that holiday spending was up 8.5% year-over-year.
Mastercard expects spending this year to be backed by cumulative savings built up during the Covid pandemic, Meebach said.
He explained that even if the number of cases of Covid-19 increases dramatically and consumers do not feel comfortable entering the store, they will simply shift spending to online channels.
“Consumers have learned. They have adapted and are showing every sign of wanting to do more online in digital banking, online shopping etc,” said Meebach, who has led the payment processing giant since January 2021.
Shares of Mastercard rose less than 1% on Thursday, which was a drop for Wall Street as a whole, as all three major US stock indexes were in the red. Mastercard shares are off to a strong start in 2022, up 2.9% year-to-date. Shares are up about 7% over the past 12 months, compared to more than 22% gains for the S&P 500.