2020 Retrospective: Fluctuations in Stock Prices of Payment Companies

Cross-Border Payments Industry Shows Resilience Amidst Pandemic Challenges

The cross-border payments industry has proven to be resilient in the face of the challenges posed by the COVID-19 pandemic. In 2020, the industry experienced a significant downturn following the outbreak of the virus and its classification as a pandemic in early March. However, by the end of the year, most companies had returned to pre-pandemic levels, demonstrating a capacity to adapt and recover.

The top ten cross-border payment stocks in 2020 by performance included companies like PayPal, Square, Visa, Mastercard, and others. These companies saw end-of-year values ranging from approximately 2 to 7 times their January start values, reflecting significant growth due to increased digital payments amid the pandemic.

In the following year, 2021, MoneyGram stood out as the clear winner in the cross-border payments industry. The digital business of MoneyGram has been a key driver of its growth, with the company climbing well beyond its opening value in January. The digital business has also been instrumental in its resilience and growth in the face of the challenges posed by the pandemic.

Visa and Mastercard, despite a downturn in travel revenue, have shown signs of improvement and have seen their values increase in 2021. Mastercard's value has increased despite a downturn in some of its core revenue drivers such as travel. Visa's value has increased despite a significant downturn in travel revenue.

The market suggests that the cross-border payments industry has shown a capacity to adapt and recover in 2021, despite the ongoing impact of the pandemic. Travel revenue remains down for Visa and Mastercard, but the industry as a whole has been relatively quick to recover from the impact of the pandemic in 2020.

In conclusion, the cross-border payments industry has demonstrated resilience and adaptability in the face of the challenges posed by the pandemic. As digital payments continue to grow in popularity, it is expected that the industry will continue to thrive and innovate.