This Week In Credit Card News: The Link Between Credit Card Usage And Stress; Card Deliquencies Keep Rising

New survey rules out credit card use and stress

While credit cards can make shopping easier and more financially rewarding, they can also harm your mental health. A recent Debt.com survey found that 34% of credit card users feel stressed. That's up from 21% who said the same in 2022. Also this year, 43% of credit card users said just looking at their monthly statement caused stress. Last year, only 39% said the same. [colorful silly]

Earnings season highlights increased card security

Additional filings and filings with the SEC by some payment networks and banks show that late payments are increasing, consistent with PYMNTS' findings that credit cards are the lifeblood of managing day-to-day expenses. The pressure affects all layers of the population. American Express, which generally attracts mas rican customers, reported more than 30 days in the last quarter, a 1.1% more in the last quarter and a 1.2% more than 0.8% in the first quarter Last year. Research papers show the 30-day default rate on its credit card loans was 2.8%, down from 1.8% last year. Capital One's SEC filing shows 30-day delinquencies rose to 3.7% in the first quarter of 2023 from 2.4% a year earlier. JP Morgan showed the commission rate in its card services business was 2.1% in the first quarter, down from 1.4% last year. [PYMTS]

Americans don't pay their credit card debt. we should be worried

The decline did not occur in the first quarter. Some observers see this as a problem. According to the Federal Reserve Bank of New York, credit card balances totaled $986 billion in the last quarter, but have remained largely flat since the first quarter of the year. Credit card debt is increasingly likely to reach $1 trillion this year, and experts say that figure could be a sign of an impending recession. This surprised some observers, since vacation debts are usually paid off in the first quarter of the year. This does not happen. It was the first time since late 2000 and early 2001 that credit card debt did not see its usual decline between the fourth and first quarters, when the recession marked the end of the dotcom bubble. . [market watch]

Earn instant rewards on your credit card. What is happening here?

Starting in 2020, a wave of credit cards has emerged that offer unconventional bonuses and rewards. Instead of focusing on traditional miles, points, or cash, the fintech startups behind these cards (also called “fintechs”) are starting to bet on unique rewards, from cryptocurrency and wine to environmental benefits and health, to name a few. a more personal experience. It seems that the development of the price could continue. So it doesn't happen. From mid-2023, most of these new cards will be closed. [Indicator]

Mobile Payments Growth Opportunity

Governments are integrating digital payment options to create a digital cashless society. Bring your own device (BYOD), growing smartphone usage, and large numbers of unbanked people are among the key variables that could provide profitable growth prospects for digital payments. Additionally, stores and services around the world are rapidly adopting mobile payment apps such as PayPal, Samsung Pay, Apple Pay, Alipay and WeChat Pay. These applications accept electronic payments. Global Digital Payments Market was valued at USD 81 Billion in 2021 and is projected to reach USD 272 Billion by 2029, growing at a CAGR of 16.37% over the forecast period 2022-2029. [Online Information Technology]

Many Americans buy now and pay later for more financial flexibility.

Most Americans want financial flexibility when it comes to financing life's milestones, and many are considering late installment loans to finance major purchases. Major life events, such as getting married, going to college, buying a house, or having children, can cause emotional distress. However, according to a survey by Citizens Bank and Wakefield, 60% of Americans say financing these attractions causes more stress. Additionally, 39% say they need to plan and fund at least one major event in the next 12 months, and 78% say they need to do so in the next decade. focus on business

Citigroup plans to buy a new credit card for use at multiple retailers

Citigroup plans to launch a new credit card at various retailers that consumers can use to make major purchases. The new card, dubbed Citi Pay Credit, will come from the lender's retail services division and will be digital only. Citigroup is recruiting retail partners for the card and plans to expand the program to include an installment business loan product. [Bloomberg]

Credit cards offer greater security than debit cards

It's important to realize that not all plastic currencies are created equal, and using a debit card to make purchases isn't always the smartest option. Here are five reasons why it's not a good idea to rely solely on a debit card when shopping: Different levels of fraud protection. Limited potential for credit creation. Insufficient purchase protection. Cash restrictions. Limited Application for Disputes. [Indian point of view]

Capital One returns justification for Walmart credit card deal

The battle between Walmart and the exclusive credit card issuer continues as Capital One Financial accuses the retail giant of failing to meet its marketing obligations because it is unhappy with the economic terms of the partnership. In the new lawsuit, Capital One also accuses Walmart of wanting to pull out of a long-term deal the two companies struck in 2018, in which the retailer plans to spin off its credit card business to a fintech joint venture in which it owns a stake. majority bet. . . Fintech Project One, backed by Walmart, has been in development for nearly two years. Walmart is currently offering a discount card to its customers. [American banker]

Mastercard improves fraud protection in cooperation with Vesta Solutions

Mastercard, through a partnership with Vesta Solutions, enables businesses to accept payments from anywhere in the world. The rise of e-commerce has also led to e-commerce fraud. In fact, a Juniper Research study found that e-commerce fraud losses are expected to exceed $48 billion worldwide by 2023. Fraudulent chargebacks are a significant cost to merchants, and many cannot simply not prevent this type of fraud. Fraud or Containment. By integrating Vesta's solutions into its platform, Mastercard aims to protect merchants. Because Vesta has a 100% Fraud Guarantee, if a fraudulent transaction passes the verification process, Vesta is responsible for the full amount of the transaction. By eliminating the costs of fraud, merchants can focus their efforts on developing business strategies. [Payment Log]

International credit card payments are getting expensive | bq primer