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Payments, Tech and Travel Hit by Coronavirus

By February 27, 2020January 28th, 2021No Comments

CardLinx members including Mastercard, Microsoft and Hilton have all announced negative impacts from the rapidly spreading coronavirus. This week Mastercard revised downward its revenue forecast by 2%- 3%, citing slower cross border transaction growth. Microsoft issued lower revenue guidance due to supply chain disruptions in Asia. Hilton recently temporarily closed 150 hotels in China due the coronavirus.

CardLinx Insight:

The announcements highlight the accelerating impact of the mystery virus around the world. What is notable is that these companies are from significantly different industries and they are all large global players. The disruption is most severe among hotels and airlines but the announcements by Mastercard and Microsoft demonstrate that the virus will reach far beyond the travel industry to finance, payments and technology companies. Other large companies including Apple also issued revenue warnings this week.

Industry participants should expect that the Covid 19 virus may trigger a recession in both China and Japan in 2020. China and Japan are the number 2 and number 3 largest economies in the world. The USA is the largest economy in the world and has had a more muted impact so far, but many forecasters expect an economic slowdown in the US also.


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