Mastercard has lowered its revenue outlook for Q1 2020, saying that the adverse impact of the novel coronavirus outbreak on cross-border e-commerce and travel could dent its quarterly performance.
The credit card firm now anticipates revenue growth of 9-10% in Q1, which is a decrease of around 2 to 3 percentage points from its earlier forecast.
Considering that the virus only affects Q1, the 2020 year-over-year net revenue growth is expected to be at the low end of the low-teens range, Mastercard further predicted.
The company’s shares dipped after the announcement.
According to data gathered till 24 February, the novel coronavirus has claimed the lives of around 2,700 people. More than 80,000 positive cases have been reported globally so far.
Earlier this month, it was reported that China UnionPay will scrap service charges for cross-bank cash withdrawals in Hubei, which is the epicentre of the coronavirus outbreak.
Fearing the spread of the virus, major banking groups including HSBC, Standard Chartered, and UOB, shuttered outlets in China, Hong Kong, and Macau.
China’s central bank has urged banks to disinfect used notes and isolate them for up to 14 days in an effort to contain the virus’ spread.
The outbreak also led to a surge in bank loan applications from Chinese companies, looking to absorb the shock of the outbreak.