American Express is the biggest winner on the Dow Jones Industrial Average during Monday’s session. Getty Images’ upbeat vaccine news Pfizer Inc. and BioNTech SE gives a boost to many stockpiles of payments on Monday in hopes that a vaccine can revive the global travel landscape and lead to a broader spending recovery of consumption. Shares of Visa Inc. V, + 7.16%, are up 9% in Monday trading, while shares of Mastercard Inc. MA, + 9.85%, are up more than 11% after Pfizer PFE, + 7.69% and BioNTech BNTX, + 13.91% depending on whether their vaccine candidate had shown 90% effectiveness in preventing COVID-19, a much higher threshold than initially expected. “With a vaccine showing good progress, we believe that [small- and medium-sized business]”Sensitive stocks could rebound,” wrote Baird analyst David Koning in a note to clients. Visa and Mastercard generate around 20% to 25% of their income from cross-border travel, he wrote, and that category may have fallen from 70% to 75% in recent months according to his estimate. Mastercard noted on its last conference call that worldwide travel was largely blocked, with the exception of some travel between countries in the European Union. These intra-European transactions are “less productive” than other cross-border transactions, said CFO Sachin Mehra. This means that Mastercard keeps more of the transaction when processing cross-border payments between customers and merchants who are not both from the EU. Additionally, credit spending has been depressed as consumers have shown a preference for debit cards, seen as a more conservative payment instrument. “Travel, on the whole, is more credit-oriented,” Mehra said during Mastercard’s earnings call in late October, so the company expects to see a rebound in this part of. activity once international travel rebounds. Read: Visa and Mastercard have a lot in common, but COVID-19 puts key difference in target American Express Co. AXP shares, + 21.38%, lead the Dow Jones industrial average higher on Monday, in 21% increase in the session. Travel and entertainment is the “bread and butter” of the business, according to Susquehanna analyst James Friedman, who wrote that these areas accounted for 26% to 30% of the company’s booked business in the quarters leading up to the pandemic, “with the airlines alone at 7% to 9%. American Express also offers business travel services. In general, business travel has been slow to rebound even as domestic personal travel resumes. “If you look at our corporate card business, obviously there’s… hardly anyone traveling in any way at this point,” CEO Stephen Squeri said on American Express earnings call. in October. The hope is that a vaccine could help make the way people work more normal. See more: Financial stocks soar, led by American Express after bullish news on potential COVID-19 vaccine As big names in credit cards surge in Monday’s session, names of payments from the new school whose shares have recovered since the start of the pandemic have fallen. These include PayPal Holdings Inc. PYPL, -8.88%, which saw record spending on its platform as the COVID-19 crisis pushed more people to buy things online and brought more consumers, especially older generations, into the digital fray. PayPal shares are down about 6% in the session. A sign of how much Square Inc.’s SQ narrative, -7.06% has changed since the start of the pandemic, its stock is also trading lower on Monday, at around 5%. Square is known to provide payment processing services to small businesses, and its inventory plummeted at the start of the crisis over concerns that local merchants would be particularly pressed by restrictions on business activity. A vaccine should help these small businesses, but Square’s stock appears to be taking a hiatus after what has turned out to be a 150% rally in the past six months, once investors saw more value in d ‘other parts of the company’s business, such as the Mobile Wallet Cash App and online stores for merchants. Other names that could benefit from a rebound for small businesses include Fiserv Inc. FISV processors, + 5.85%, Fidelity National Information Services Inc. FIS, + 6.42%, and Global Payments Inc. GPN, + 11.37%, according to Koning de Baird. . He calculates that around 10% to 15% of Fiserv and FIS revenue is driven by physical small and medium businesses, as well as maybe 25% to 30% of Global Payments revenue. The three should see “very easy” comparisons in the second quarter of 2021, he wrote. Fiserv shares are up 8.6% as of noon Monday, while FIS shares are up 8.5% and Global Payments shares are 12.7%. .