Introduction of Tap to Pay technology
PayPal has announced the introduction of Tap to Pay technology for Venmo and PayPal Zettle businesses in the United States. Small businesses can now accept contactless payments—including cards and digital wallets—directly on their mobile devices without the need for additional hardware or upfront costs. According to PayPal, nearly 80% of buyers have used contactless payments for purchases. Previously, small businesses had to invest in contactless point-of-sale systems and manage card readers to accommodate consumers.
Mastercard AI helps prevent payment scams
Mastercard is leveraging its AI capabilities to assist UK banks in predicting and preventing real-time payment scams. The ‘Consumer Fraud Risk’ technology utilizes large-scale payments data to identify scams before funds are withdrawn from a victim’s account. By analyzing specific factors such as account names, payment values, payer and payee history, and links to scam-associated accounts, banks can intervene in real-time and halt payments before losses occur.
Potential regulations on medical credit cards
The Biden administration is considering regulations that would target credit cards and other loan products designed specifically for medical bills. The Consumer Financial Protection Bureau, the Health and Human Services Department, and the Treasury Department have launched an inquiry into medical credit cards and installment loans, examining interest rates, fees, collection practices, and incentives provided to healthcare providers. The aim is to ensure consumer protection and prevent undue financial burdens.
Market share in the credit card industry
Visa holds the largest market share at approximately 48%, followed by Mastercard at around 36%. Discover and American Express together account for about 16% of the credit card market. The top 10 card issuers control approximately 82% of credit card balances outstanding in 2021, with Chase having the highest market share at 17.9%, followed by Amex (13.3%), Citi (12.4%), and Capital One (11.4%).
CFPB’s plan to reduce credit card late fees
The Consumer Financial Protection Bureau (CFPB) is proposing a significant reduction in credit card late fees, aiming to lower the maximum fee from $30 to just $8 for first-time late payments. The CFPB’s plan, championed by Director Rohit Chopra, aims to alleviate consumer costs, potentially impacting banks’ revenue streams and encouraging greater consumer dialogue regarding fees and forgiveness.
J. D. Vance and Elizabeth Warren unite against big banks
Sen. J. D. Vance is collaborating with Democrats including Sen. Elizabeth Warren and Sen. Dick Durbin on bills aimed at cracking down on big banks. Vance, backed by his populist approach, is championing legislation that penalizes bank executives, restricts bank acquisitions, and aims to rein in credit card fees. The bipartisan proposals present challenges for big bank lobbyists and highlight growing concerns about the influence and practices of large financial institutions.
Affirm announces divestment of Returnly unit
Buy now, pay later provider Affirm has revealed its plan to divest its Returnly unit, a returns payment platform. Affirm acquired Returnly two years ago for $300 million. The company will be sunsetting the platform by early October and increasing its partnership with another returns management company, Loop Returns.
Mobile banking transactions on the rise in Brazil
A survey indicates that 77% of all banking transactions in Brazil were conducted through digital channels, such as smartphones or PCs, in 2020. Mobile phones accounted for 66% of all transactions. This surge in mobile operations demonstrates the growing preference for digital banking services among Brazilians.
Citi enhances its My Deals platform
Citi has enhanced its offers platform, now called My Deals, which offers national and local coupons and discounts to Citi Diamond Preferred cardmembers based on their locations. The platform is accessible through the Citi mobile app and Citi Online. Additionally, Citi Diamond Preferred cardmembers can track their total savings from interest rate promotions and My Deals offers through Savings Spotlight.
In-app purchases dominate the mobile gaming market
In-app purchases have become a lucrative feature of mobile games, with 77% of users making a purchase within two weeks of downloading a game. This monetization strategy has proven successful in generating income for developers, emphasizing the importance of creating engaging and enticing in-app purchase opportunities.
Score a $5 Amazon credit ahead of Prime Day
Prime members can receive a $5 bonus Amazon credit when purchasing a physical Amazon gift card or an Amazon eGift card worth at least $50. However, the credit must be spent during Amazon’s Prime Day Sale from July 11th – 12th.