Mastercard Inc. warned on Thursday that runaway inflation was sapping spending from lower-income customers, after rounding out a strong quarter for card issuers.
Consumers across the globe have been showing signs of cracking in the face of decades-high price pressures, with purchases at retailers including Walmart shifting away from big-ticket items to essentials and groceries.
“In the U.S., what you are seeing is a declining trend in terms of the growth rates on the lower income side of things,” Chief Financial Officer Sachin Mehra said on an analyst call.
Mastercard’s commentary was less optimistic than rival Visa Inc., which said it was yet to see signs of a pullback in spending from its cardholders….