New York, January 12, 2026, 18:42 EST — After-hours
- Shares of Mastercard slipped 1.6% amid a wider selloff in card-related financial stocks
- Trump proposed a one-year cap of 10% on credit-card interest rates beginning Jan. 20, offering little detail on the plan
- Mastercard also highlighted a new open-banking partnership in Australia with cash-flow platform Obol
Mastercard Incorporated shares dipped Monday, pressured by a sell-off in card and consumer finance stocks following President Donald Trump’s call for a one-year cap on credit-card interest rates. The stock last traded down $9.17, or 1.6%, at $566.28, bouncing between $556.20 and $572.00 earlier in the session.
The headline matters because it touches a politically sensitive issue — the cost consumers face to carry balances — just as banks begin their earnings reports and investors search for clues on credit tightening. Mastercard doesn’t set those rates, but it’s at the heart of spending flows, which traders often downgrade when sentiment sours.
On Friday, Trump called for a 10% cap starting Jan. 20 but didn’t specify how card companies would be forced to comply, sending U.S. and UK financial stocks tumbling. J.P. Morgan’s Vivek Juneja argued the cap “would not address the root of the problem and could push consumers towards more expensive debt.” According to a Federal Reserve consumer credit report last week, the average credit-card interest rate in November stood at 20.97%. (Reuters)
Visa and Mastercard don’t face an immediate earnings hit like banks and issuers who earn interest on revolving balances. The danger is more indirect: if lenders tighten credit lines, reduce rewards, or steer customers to different products, spending could drop—and that means network fees take a hit.
Analysts doubted the White House’s ability to act without Congress. TD Cowen argued that “a card rate cap can only be done by Congress, not executive order,” adding that chances of a federal cap passing remain slim. (Reuters)
Mastercard announced a partnership with Obol that will enable the cash-flow platform to leverage Mastercard’s open-banking tools as it rolls out in Australia. Brenton Charnley, Mastercard Australasia’s head of open finance, commented, “Open finance is unlocking new opportunities for businesses to better understand and manage their finances.” (PR Newswire)
Separately, TD Cowen bumped up its price target on Mastercard to $668 from $654, maintaining a buy rating. The firm cited steady fundamentals and ongoing resilience in consumer spending. (TipRanks)
Politics can still bog things down. Even if Congress kills a national rate cap, the issue drags consumer finance into the spotlight again. Traders fret the fight could extend to fees, rewards, and other rules that influence card economics.
Tuesday’s bank earnings will be the first test for investors eager to gauge U.S. card spending trends. Meanwhile, markets brace for fresh updates from Washington as the January 20 deadline approaches. (Investopedia)
