September 28th, 2020
COVID Forcing Major Changes to Bank Marketing for 2021 (and Beyond)
Bank and credit union marketers face the challenge of pinched budgets plus tougher competition from agile fintech/big tech marketers. Surging digital usage and changed expectations among consumers regarding trust, loyalty, personalization and privacy require financial institutions to update their marketing practices and tools.
1Password launches virtual credit card generator for safer online payments
Popular password management app 1Password is out today with a sharp new feature that makes it easy to create virtual credit card numbers for much safer and more convenient online purchases. The new option allows you to quickly create virtual cards in your browser with spending and frequency limits and the cards are saved in 1Password.
Secretive New X1 Credit Card Offers Credit Limits Based on Income
A new credit card will launch soon, and it’s breaking some of the rules credit card issuers have abided by for decades. The X1 Card, which currently has a waitlist, offers consumers the chance to get a credit limit based on their income, not their credit score. The card’s features, many of which are impressive on their own, could make it an excellent option for high-income young professionals who haven’t built a credit history yet.
How Financial Marketers Can Prepare for the Next Switching Surge
Low rates will prevail for years and people will be increasingly focused on their finances. Changes to primary account relationships currently enjoy a bit of a pause because many don’t want to go into branches to move major accounts. But the clock is ticking and marketers must counter-attack fintechs and challenger banks right now.
Target Pilots Buy Now Pay Later With Sezzle
Sezzle, the installments payments platform, will be working on buy now, pay later (BNPL) services with Target, a press release says, which will test how the popular payment trend works with the retail giant’s operations. The collaboration will involve “limited tests with a small portion of Target.com guests in two product categories to evaluate the efficacy of the Sezzle platform for Target’s retail operations.”
6 Need-To-Know Buy Now, Pay Later Statistics For Small Businesses
Buying something now but paying for it later has always been a tantalizing concept. But the idea is gaining even more steam now thanks to current events; in a world economy virtually crippled by the COVID-19 pandemic, shoppers need to stretch their dollar further than ever before.
September 21st, 2020
Credit Card Debt Statistics for 2020
What’s the average credit card debt per person? What’s the total credit card debt in the U.S.? How do debt figures break down by age? Are millennials borrowing as much as we think they are? We looked at the best and most recent data from government and institutional sources — including the Federal Reserve, the Consumer Financial Protection Bureau, and Experian — to answer your most pressing questions on credit card debt.
How ‘Pandenomics’ Will Drive Mobile Check Deposits
“Pandenomics” may usher in a new age for mobile check capture and deposits. In an interview with Karen Webster, Mike Diamond, general manager of digital banking at Mitek, said it’s unlikely that customers will revert back to their branch-intensive, pre-pandemic banking behaviors. In fact, we might not go back to the bank in person at all unless we have to, say, sign and notarize a mortgage document or cash a (paper) cashier’s check.
Mastercard will spend $500 million to expand financial access in Black communities
Mastercard is pledging $500 million over the next five years to expand financial inclusion for Black individuals and businesses. Through three interconnected initiatives, and with the help of various partners, the financial services company aims to deliver tools and resources to allow many long-excluded African Americans to access affordable financial services and build prosperity.
X1 Card is a credit card based on your income, not your credit score
There are many reasons why you could have a good or a bad credit score. But if you’re just entering the job market, you may end up with reliable income and a low limit on your credit card. X1 Card wants to solve that by setting limits based on your current and future income instead of your credit score.
Apple Cash Family lets kids use Apple Pay
Apple has released Apple Cash Family, as part of Apple’s “family setup” for its watchOS 7, this week. This feature lets a parent securely load money onto a child’s Apple Watch giving the child the ability to purchase items wherever Apple Pay is accepted, according to a Mac Rumors report.
Gen Z Says They’re Eager to Use a Big Tech for Banking – But Will They?
Younger consumers love the ease of using big-tech platforms, but they also like an in-person option. For many traditional financial institutions, this contrast may mean that in the near-term big techs may be less threatening than competition from a handful of large banks that are bridging the digital-physical gap in ways that appeal to both Gen Z and older generations.
Gen Z, Millennials and COVID Fueling Rise in Hybrid Credit Card Alternatives
Fintech companies like Klarna, Affirm and Afterpay keep growing users of their installment payment plans, aided by younger generations’ iffy relationship with credit cards. Traditional consumer lenders are finding ways to meet this demand in order to retain their competitive positions.
September 14th, 2020
Citigroup wins deal to offer credit cards for Wayfair, edging out rival Alliance Data Systems
Citigroup won the rights to offer a pair of new credit cards with online furniture seller Wayfair, edging out Alliance Data Systems, CNBC has learned. The deal happened amid surging demand for home goods as millions of Americans were forced to work remotely from their residences during the coronavirus pandemic. Wayfair saw an 84% jump in second-quarter sales and turned a profit for the first time since going public in 2014. The online retailer’s stock has climbed 192% this year.
U.S. Credit Card Debt Fell in 2020’s Second Quarter
Millions of Americans are struggling with income loss during the COVID-19 pandemic, so you’d think credit card balances would skyrocket at a time like this. But actually, the opposite has happened. Total household debt decreased during 2020’s second quarter, and credit card balances declined by $76 billion, according to the Federal Reserve Bank of New York. That’s the steepest decline in credit card balances in the history of this data.
Who Gets Hurt When the World Stops Using Cash
Cash doesn’t have the status it used to. In fact, some state and local governments are forcing businesses like restaurants and retail shops to continue accepting cash — concerned that cashless businesses effectively discriminate against consumers who do not have bank accounts or credit cards.
Pandemic Drives Dramatic Card Transaction Shifts
Cash is no longer king. And that may be good for credit unions. As COVID-19 has swept across the country, credit union members’ use of cash for purchases has fallen to an all-time low, financial experts who advise the nation’s credit unions said. CUs should ensure members have access to all types of electronic card and other digital banking options, plus guidance on how to use them.
Deep Dive: Securing The Growth Of CNP Debit
Card not present (CNP) debit transactions are growing swiftly during the pandemic as many consumers limit their in-store shopping and leverage services such as curbside grocery pickup, meal delivery apps and online retail to meet their needs while social distancing. Merchants and financial institutions (FIs) that had previously witnessed strong card-present purchasing flows must, therefore, cater to CNP shopping trends.
Digital Transformation Success Elusive For Financial Institutions
COVID-19 has been a defining moment for digital transformation. Financial institutions that invested in digital over the past several years were more prepared to respond to the crisis. For those organizations that had not invested in digital transformation, the crisis exposed gaps in capabilities. New research calls into question how successful these institutions may be in making the necessary changes.
September 7th, 2020
Retail consumers and the reason they use and love Bitcoin
Bitcoin continues its rise in prevalence as a preferred alternative to traditional banking. It is more popular today than ever, and its popularity will only increase with time thanks to a mass network of fundamental users—more than with any other alternative digital payment currency, who rely on Bitcoin for frequent transactions meant to bolster their investments and store of value.
Amex adding Pay It Plan It to Green, Gold and Platinum cards
American Express frequently adjusts its offers to match consumers’ changing spending habits. This has been especially apparent as the COVID-19 pandemic hit the nation. Amex has made sure cardholders can get value from their cards even during the outbreak by offering limited-time benefits and travel credits, as well as providing more time to earn a welcome bonus.
CU Member Card Spending Hints of the Pre-Pandemic Days
Credit union members spent more both through debit cards and credit cards in the week ending Aug. 23 than they spent a year earlier, including a gain in credit card spending for the first time since March that hints of “normalization,” according to a PCSU report released Monday.
Neediest credit card users are seeing their limits fall the most
Subprime borrowers, who rely more on credit cards than any other group, are seeing their limits cut the most as banks reduce exposure during the coronavirus pandemic.
The Digital Payments Preferences That Cross The Generational Divide
Cash will always have a place among consumers — but its use is dwindling. Only 26 percent of all consumer payments are made in the U.S. with cash — and consumers are even starting to ditch plastic cards. For financial institutions (FIs) and enterprises that seek to pivot to meet the growing demand for digital payments, observing and reacting to shifts in how different generations prefer to pay will be critical during the pandemic and beyond, according to Royal Cole, executive vice president, FI payment solutions at FIS.
DATA: More Than Half Of US Consumers Say Trust, Not Features, Drives New Bank Account Openings
Consumers are doing a lot more of everything online these days, from ordering groceries and furniture to splurging on subscriptions for designer socks. They are also turning to the internet for far more substantial and sensitive financial matters. A majority of consumers are now doing most of their banking online, out of choice and necessity – the pandemic has forced many bank branches to operate with limited hours and other restrictions.
August 31st, 2020
COVID-19 check-in: How have card issuers measured up during the pandemic
It’s no secret that the coronavirus pandemic has wreaked havoc across many industries in 2020. Travel and tourism took a major hit, and so did the credit card industry. It was like overnight, the perks and benefits that cardholders used on a regular basis were no longer valuable in the short-term. Spending habits changed, vacations were canceled and work travel decreased for many, as work-from-home became the norm.
Plastiq Offers More Businesses Free Processing Of Credit Card Payments
Plastiq, a company that lets businesses use their existing credit cards to pay bills to vendors that don’t accept them, has rolled out a service that will enable Plastiq clients to accept credit card payments without having to give the credit card issuers a cut.
Mastercard and Ally Financial Teaming up on POS Installment Lending Program
Ally announced Tuesday that its Ally Lending subsidiary has established a partnership with Mastercard’s POS installment loan platform Vyze, under which Ally Lending will serve as the financier of the loans. By doing so, Ally said, it is hopping on a trend among U.S. consumers and retailers. Technological advances have made POS installment lending a relatively quick and easy option for a wide range of items.
Ex-Bank of America employees allege ‘extreme pressure’ to sell credit cards
Seeking to avoid a repeat of the phony-accounts scandal at Wells Fargo, U.S. regulators in late 2016 opened examinations of the sales practices at other big banks. After the reviews were finished, the regulators assured outside observers that the banks had made positive changes and were now selling their products in ways that better aligned with the interests of their customers.
FICO Resilience Index Now Available for Lenders to Pilot
During economic uncertainty, lenders and investors need to be able to evaluate and balance portfolios based on rapidly changing conditions. This helps further the safety and soundness in credit, as well as support the global economy. By actively working with lenders and consumers to navigate the current situation, it is apparent that precise analytics are as important as ever to help avoid over-tightening of credit which can delay an economic recovery.
Buy now, pay later: How COVID-19 is aiding the payment model
If you’ve been doing some online shopping lately, as many U.S. consumers have during the pandemic to avoid shopping in person (and maybe even just to pass the time while in quarantine), you might have noticed an increased recurrence of offers touting interest-free payments in installments.
More Consumers Prefer Contactless Payments for Pandemic Purchases
Fears of catching coronavirus from surfaces like point-of-sale card readers and keyboards have favored growth in contactless card and mobile wallet transactions. The perception of safety and faster transactions will keep consumers interested and drive more retailers to activate contactless payments functionality on terminals.
August 24th, 2020
Coronavirus has hurt the credit card fraud business
The coronavirus pandemic has changed just about every aspect of daily life, and credit card fraud has not been spared. In a new report from cybersecurity firm Sixgill, the first six months of 2020 saw 45 million compromised credit card accounts posted for sale on the dark web. That might sound like a lot, but compared to the last six months of 2019, it’s down 40% from 76 million.
BMW, Mini Launch New Credit Cards
BMW, Mini and BMW Motorrad enthusiasts have a new way to demonstrate their love of the brand and earn accelerated rewards for their spend, with the launch of a suite of Mastercard credit cards.
Forget credit cards — now you can pay with your face. Creepy or cool?
A new way to pay has arrived in Los Angeles: your face. As so-called contactless payments rise in popularity during the pandemic, a Pasadena company called PopID is rolling out the nation’s first payment system based on facial recognition at a smattering of restaurants near its headquarters, including mom-and-pop operations such as Daddy’s Chicken Shack and regional chains such as Lemonade.
Inside Capital One’s new partnership with Microsoft to fight fraud
The partnership between the two companies allows Microsoft and Capital One to use their data to determine if a transaction is legitimate, which has a few major benefits. First, better fraud detection means less fraud and loss. But the upside is deeper.
Financial Wellness Tools Propel Fintech Deeper into Banking Space
MoneyLion’s CEO reveals details of the challenger bank’s focus on middle Americans impacted by the pandemic. The company’s upgraded mobile platform integrates a new demand deposit account and debit card with its ‘everyman’ investing product, ‘tip-based’ instant loans and AI-powered financial insights.
Credit Card Debt Drops Sharply As Consumers Cut Back
U.S. household debt decreased by $34 billion to $14.27 trillion in the second quarter of 2020, marking the first decline since the second quarter of 2014.
August 17th, 2020
The newest fintech unicorn is a credit card, and it’s betting against big banks
Philadelphia-based fintech start-up cred.ai has unveiled a new banking platform for millennials, complete with a solid metal credit card, and a mission to disrupt the banking system.
Consumer Frustration With Banking Apps and Mobile CX Lingers
COVID-19 necessity introduced more Americans to mobile services than many marketing campaigns did. But what do banks and credit unions do for an encore now that the ice is broken? It’s a long list — with two surprisingly simple solutions for starters.
Klarna Enables Google Pay For In-Store US Purchases
Klarna, the Swedish global payments and eCommerce platform, has introduced Google Pay for in-store purchases in the U.S. Sephora, Journeys and rue21 are among the first Klarna merchants to offer Google Pay in addition to Apple Pay, providing flexibility, security and contactless payments to customers.
Credit Card Spend Declines as Enhanced Unemployment Benefits Lapse
The expiration of enhanced unemployment benefits at the end of July may already be having an impact on consumers. According to PSCU’s latest shopping trends analysis, overall card payment growth rates trended downward for the week ending Aug. 4, just a few days after the $600 benefits initiative provided by the Federal CARES Act was allowed to lapse.
Fiserv: What It Will Take For Business To Finally Get Rid Of The Paper Check
U.S. consumers don’t exactly love the paper check — roughly 38 percent report that they’ve stopped using them entirely, and that shoots up to almost 50 percent when talking about millennials.
July Complaint Bulletin: Complaints mentioning coronavirus keywords
The CFPB’s Office of Consumer Response hears directly from consumers about the challenges they face in the marketplace, brings their concerns to the attention of financial institutions, and assists in addressing their complaints.
August 10th, 2020
A Monthly Peek into Americans’ Credit During the COVID-19 Pandemic
Total household debt was roughly flat in the second quarter of 2020, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed’s Center for Microeconomic Data. But, for the first time, the dynamics in household debt balances were driven primarily by a sharp decline in credit card balances, as consumer spending plummeted.
Coronavirus leads to more use of contactless credit cards and mobile payments despite cost and security concerns
With consumers worried about touching surfaces during the coronavirus pandemic, the use of mobile payments and contactless credit or debit cards has significantly increased in the past few months, according to research released today by the National Retail Federation and Forrester.
The ‘Tesla Of Banking’ Startup Cred.ai Unveils Its AI-Powered Credit Card
How many bonus features does it take to convince a Millennial to use a credit card? Try no fees, no interest, credit optimization, self-destructing account numbers, spending on future paychecks, customizable settings, a solid metal card, and the promise of more features updated continuously.
How Covid-19 Chilled the Credit Card
Rather than rack up additional debt, people have stayed home during the pandemic and let Uncle Sam foot the bill. In case it wasn’t obvious by now, the economic downturn in America has been most unusual during the past several months.
Capital One to pay $80 million fine for 2019 hack that exposed 100 million accounts
Capital One has agreed to pay $80 million to settle federal charges over a 2019 hack of its computer systems that was one of the largest financial data breaches ever. More than 100 million credit card applications were exposed in the cyberattack, which was allegedly carried out by a single individual.
Credit card debt plunges, driving a decline in overall household debt
Household debt fell in the second quarter as consumers stuck at home because of the coronavirus pandemic spent less on their credit cards, based on a new report from the Federal Reserve Bank of New York.
Afterpay Creates Incentives For Users To Pay On Time
Payments company Afterpay, which works in the buy now, pay later (BNPL) space, is rolling out a new feature called Pulse to help reward those who make payments on time, a press release says.
August 3rd, 2020
Amazon Pushing Deeper into Banking in the Post-Pandemic World
Amazon may not have immediate plans to launch a bank of its own, but their partnership model still poses real threats to traditional banking providers. Will retail banks and credit unions face the same fate as brick-and-mortar retailers like Borders and Barnes & Noble if they don’t play Amazon’s game?
How Bad Could Credit Card Losses Get During the Pandemic?
Credit card default rates are typically higher than most other loan categories for a number of reasons, including the fact that credit cards let people spend more than they make. But during a recession, credit card defaults can really spike because unemployment jumps and people suddenly don’t have enough money to pay all of their debt.
JPMorgan Chase partners with fintech start-up Marqeta to launch ‘virtual’ credit cards
JPMorgan Chase is ditching plastic for some of its credit cards. The Wall Street giant’s commercial cards team is partnering with Bay Area start-up Marqeta to launch digital-only credit cards. The new function will allow JPMorgan corporate cards to work in mobile wallets such as Apple Pay or Samsung Pay immediately — without having to wait for a physical version in the mail.
Report: Consumer Finance Complaints Skyrocket
The role of the Consumer Financial Protection Bureau (CFPB) has come under scrutiny, but as of the time of this writing, it’s still a place for consumers to log complaints against financial institutions. And during the coronavirus pandemic, the number of financial complaints filed in the CFPB’s database is surging according to a new analysis by LendEDU.
Debit And Services Help Mastercard Stay Afloat During the Pandemic
Like its bigger rival Visa Inc., Mastercard Inc. managed to remain profitable during the pandemic-ravaged second quarter and in recent weeks has been seeing improving transaction trends
Americans are rapidly shrinking their credit card debt during the pandemic
Americans’ credit card debt is shrinking rapidly during the coronavirus recession. That’s a sharp contrast with the last two economic downturns.
July 27th, 2020
Many consumers don’t understand these 5 basic credit score concepts, survey says
The Consumer Federation of America (CFA) and VantageScore Solutions, LLC, released their 10th annual consumer credit survey. As a highlight of the study, low-income households were revealed to be most likely to apply for credit in the next 12 months amid the recession and a global pandemic, yet consumers with lower incomes tend to know the least about credit scores.
Entrust Datacard survey shows consumers prefer contactless
A new survey by Entrust Datacard shows the vast majority of U.S. payment cardholders, or 75%, prefer using contactless cards over other forms of payment, including chip insert, magnetic stripe, mobile payments and cash, amid safety concerns linked to the COVID-19 pandemic.
Banks are closing credit cards and slashing credit limits amid the pandemic, survey finds
As the economic fallout of the pandemic continues to unfold, banks are rushing to close credit card accounts or slash credit limits to curb their risk.
Credit card CEO warns of dark times when the $600 unemployment benefit expires
There’s mass unemployment, yet Americans are paying their bills on time. In normal times, that’d be good sign of financial responsibility. But in the pandemic era, it may just be the calm before the storm.
Samsung officially launches co-branded SoFi account
Samsung Electronics America Inc. said that U.S. consumers can now officially sign up and join Samsung Money by SoFi, a mobile money management account launched in partnership with fast growing fintech SoFi.
Many Consumers Prefer Using Traditional Payment Methods at Local Businesses
During the coronavirus pandemic, many consumers have preferred to pay local businesses using traditional payment methods over contactless channels.
COVID Crushing Millennial Finances — What Bankers Need to Know
If you want a good capsule description of how the COVID Recession has hit many Millennials, you can’t do better than “toxic storm.” The ‘Lockdown Recession’ has given Millennials another major economic smack in the face, bookending the 9/11 attacks and the Great Recession on one side with the pandemic on the other. The coronavirus slump hit just as they were beginning to find their financial feet.
July 20th, 2020
How Banks & Credit Unions Can Fortify Stressed-Out Customer Support
Bank and credit union customer support has been overtaxed not only by the extraordinarily high volume of questions from anxious, frustrated consumers, but from concerns among some employees about their safety when working in a contact center environment.
Visa to pilot installment payments in US
Visa Inc. is launching a pilot program to test installment payments in the U.S., beginning with payments issuer Total System Services Inc. offering the option at the point-of-sale, according to a blogpost from the card company.
Credit Card Debt Is Down During COVID-19. Here’s Why
Credit card debt in the United States has plummeted since the COVID-19 crisis started, according to the most recent data from the Federal Reserve. The decline may seem counterintuitive given the pandemic’s effect on the economy.
Amex, Discover, Mastercard And Visa Take Click to Pay Global
American Express, Discover, Mastercard and Visa have agreed on the global expansion of touch-free purchases across merchants and platforms.
Launched last fall in the U.S., the expansion will now reach Australia, Brazil, Canada, Hong Kong, Ireland, Kuwait, Malaysia, Mexico, New Zealand, Qatar, Saudi Arabia, Singapore, United Arab Emirates and the United Kingdom, with more to come.
Power 100 Social Media Database
Launched in January of 2013, the Power 100 rankings break down the social media stats of retail financial institutions in English-speaking countries.
This Credit Card Rewards And Financing Company May Be Down, But Not Out
If you are an investor in Alliance Data Systems (NYSE: ADS), there are three things you should care about: (1) Why has the stock dropped a massive 61% this year (as of July 15, 2020)? (2) Can it recover from here? (3) Does the company have enough liquidity to fund it until it recovers?