Consumers spent too much during the holidays; Who Really Owns Crypto?


1 in 3 Americans overspended on vacation, increasing credit card balances

Holiday sales are set to grow by up to 11.5% from 2020, according to a projection from the National Retail Federation. About 30% of Americans said they spent too much money during giveaway season, according to a post-holiday survey by WalletHub. Although omicron has caused a new wave of infections, 56% said Covid had not affected their plans. For most buyers, increasing their spending also meant relying more on credit cards or buying now, paying financing later to spread spending. As a result, about 36% of consumers are in debt, on average owed $ 1,249, according to a LendingTree survey. [CNBC]

Use of crypto increases, most will use it for mobile purchases

More than a third of consumers aged 18 to 54 own a cryptocurrency according to a recent Cantaloup study, with people aged 18 to 34 being the most likely to own it (37%) and people aged 35. at age 54 (33%) only slightly behind. . Additionally, 67% of those who own a crypto are willing to consider using it for purchases if it was linked to a mobile wallet, with an additional 19% saying they would consider using a crypto linked to a wallet. mobile if that was easy. [Vending Times]

User experience reigns supreme in credit card decisions

A super low interest rate may seem like the most tantalizing perk to offer potential credit card holders, but research shows that there are a myriad of other factors that consumers consider when deciding to use one card rather than another. According to new research, user experience benefits such as cash back rewards, data privacy, and credit building tools are viewed by 75% of consumers. Research has shown that 70% of those looking for a card see data security as a top priority, and 75% of active users who are also parents look for credit creation tools when considering a card. [PYMNTS]

Data on the use of the credit card line in the United States

U.S. credit card lines, the amount that issuers take out for each account opened, are at an all-time high. In the latest figures released by the Federal Reserve, total lines of credit stand at $ 3.9 trillion. However, only 27% of these lines of credit are used and $ 3 trillion is available in open credit. It should be noted that the use of the line is decreasing, based on a utilization rate of 20.3%. In contrast, the utilization rate in 2009 was 27.7% after credit card issuers began to contract lines of credit during the Great Recession. [Payments Journal]

JPMorgan Chase has triggered legal action against credit card customers

After a hiatus of nearly a decade, Chase began to pursue indebted customers again. The bank is back to its old ways, say consumer advocates. From early 2020 and until today, Chase has filed thousands of lawsuits against credit card customers who have fallen behind on their payments. Chase quit suing credit cards in 2011, following the last major economic downturn, after regulators discovered the company was filing tens of thousands of light lawsuits, sometimes exaggerating what customers owed. Today, just like before clashing with the CFPB, Chase is mass-producing affidavits from the same San Antonio office where low-level employees have generated hundreds of thousands of affidavits in the past, defense attorneys say. and court documents. [ProPublica]

Banking technology trends to watch in 2022

The technology initiatives of banks this year will be driven by the need to make finance ultra-convenient for consumers and businesses. One manifestation of this is integrated banking, a version of the open banking movement launched in Europe, where banks offer their services through all kinds of businesses that are not banks. Another is the effort banks make on personalization, trying to provide just-in-time advice to consumers to help them avoid financial problems and take advantage of opportunities. And letting customers empower themselves with a selfie and facial recognition is the ultimate way to keep couch potatoes safe. Banks and fintechs will also continue to try to become a trusted place for consumers and businesses for cryptocurrency services as the popularity of digital assets continues to grow. [American Banker]

The explosive growth of mobile payments for cross-border transactions

The amount of money that travels the world each year is staggering, with $ 156 trillion expected to cross international borders each year by 2022. These payments include everything from multi-billion dollar business acquisitions to shipments of low value funds sent by migrant workers, but one of the fastest segments of the market are individual consumer transactions for goods and services. One of the main contributors to this growth is the growing popularity of mobile commerce, with consumers using their smartphones to purchase items ranging from toilet paper to computers to automobiles. Mobile commerce is expected to grow by 70% over the next five years. [PYMNTS]

Washington Warns ‘Buy Now, Pay Later’ Industry

The buy now, pay later industry, an increasingly important driver of retail sales, may face new rules as DC’s scrutiny strengthens. The Consumer Financial Protection Bureau reviews the policies of Affirm, Afterpay, Klarna, PayPal and Zip, some of the most notable players in the BNPL industry. The CFPB is concerned that these platforms may encourage overspending and circumvent existing credit and lending regulations. It also plans to review data collection practices. [Axios]

Credit card startup Petal reaches $ 800 million valuation

Petal, a credit card startup, raised $ 140 million in a funding round led by Tarsadia Investments. The round table values ​​the company at $ 800 million. The startup offers a solution for consumers who are not eligible for traditional credit cards or who do not have a credit history. Its technology measures credit worthiness over income, expense and savings in a process it calls “CashScoring” and has approved nearly 300,000 credit cards to date. The company says its members with no credit history achieved an average credit score of 676, which then qualifies them for other loans and mortgages that were not previously available. [Bloomberg]

Visa and Mastercard use fintechs to reach the unbanked in Latin America

Visa and Mastercard are wooing fintechs to help them reach more consumers in Latin America, where a large unbanked population has otherwise turned to non-banks for financial services. Because tech companies have been successful in reaching a market that banks have underserved, technology partnerships have become central to the efforts of US card networks to expand beyond borders. [American Banker]

Bank of America CEO: Consumers are spending at the fastest pace he’s ever seen

The director of the nation’s second-largest bank said consumers are spending “at a faster rate” than he has ever seen, but he remains concerned about how inflation and chain problems are d supply will influence the economy as winter approaches. Bank of America chief executive officer Brian Moynihan said the bank’s debit and credit card spending increased as the economy recovered from the recession. But Moynihan also said that a recent drop in consumer confidence – by one measure to the lowest point in a decade – may indicate higher costs are adding to Americans’ frustration with the ongoing pandemic. . [Associated Press]

The Citi Prestige made its annual travel credit of $ 250 more flexible for another year

In the aftermath of the coronavirus, Citi attempted to prevent its Citi Prestige cardholders from canceling by modifying its benefits. It’s a travel credit card, after all, and its price tag of $ 495 for the primary cardholder is hard to justify if you’re not traveling. For the third year in a row, Citi is extending annual travel credit worth up to $ 250 to include expenses for supermarkets and restaurants. [Business Insider]


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