Apple Pay has now surpassed Mastercard in the dollar value of annual transactions.
Apple Pay processes $6 trillion annually, Mastercard pulls out
New research claims Apple Pay has surpassed Mastercard in the dollar value of transactions per year, totaling $6 trillion, meaning it’s more than halfway to match Visa. Since its launch in 2013, Apple Pay has seen increasing adoption by users, banks and retailers, until it accounted for 92% of all mobile wallet debit transactions by 2021. According to the comparison site TradingPlatforms, Apple Pay is now the second most popular digital payment system, beaten only by Visa. The top-ranked Visa processes approximately $10 trillion in transactions per year, with Apple Pay at over $6 trillion. [Apple Insider]
Majority of online shoppers choose mobile to make purchases
The majority of online shoppers in global markets such as China, Singapore, Australia and the UK are turning to their mobile phones to make their purchases. About 57% also make cross-border purchases, with consumers in China and the US mostly making purchases from merchants in each other’s markets. Online shoppers in 14 global markets currently use their smartphones to make purchases, including 96% in China, 84% in Singapore, 81% in the UK, 78% in the US, 77% in Japan and 69% in Australia. Across the board, 46% said they were more likely to buy from retailers offering virtual or digital experiences. This figure reached a high 72% among shoppers in China, according to the report. [ZD Net]
How to deal with credit cards in times of inflation?
In the face of 40 years of high inflation rates, US consumers are turning to credit cards at an accelerated pace. According to credit bureau Equifax, consumers opened 28.4% more credit cards in the first quarter of 2022 than in the same period last year. In addition, the Federal Reserve Bank of New York found that: credit card balances rose 13% from the second quarter of 2021 to the same period in 2022, the largest year-over-year increase in more than 20 years. If you’ve noticed your spending has increased with rising prices and you’re worried about taking on credit card debt, here’s what you need to know. There’s good news, too: if you use your credit card responsibly, the right card can help you reduce inflation. [U.S. News & World Report]
Despite a late start, Bank-Owned Zelle moves more money than Venmo and Cash app combined
Launched in 2017, The Zelle Network is a latecomer to the world of peer-to-peer payments compared to competitors like PayPal’s Venmo or Block’s Cash app. Despite launching eight years after Venmo and four years after Cash App, the service has processed more than five billion transactions worth nearly $1.5 trillion in its first five years of existence. The key to success has been a killer distribution strategy, which Zelle has integrated with the online banking services and mobile apps of some of the country’s largest banks. Zelle is run by Early Warning Services, a fintech company owned by seven of the largest banks in the United States: JPMorgan Chase, Bank of America, Capital One, PNC, Truist, US Bank and Wells Fargo. It seems like an option to most users within their desktop or mobile banking app, processing $490 billion in volume in 2021. Meanwhile, Venmo processed $230 billion in transactions and Cash App just $15 billion. [Forbes]
Credit Karma Will Pay $3 Million To Users Targeted To Fake Pre-Approved Offers
The Federal Trade Commission orders Credit Karma to pay its users $3 million after pushing counterfeit pre-approved credit cards on consumers and hurting their credit scores. Nearly a third of users who applied for a credit card labeled as pre-approved by Credit Karma, a credit monitoring company, were subsequently declined after a credit check. According to a complaint filed by the FTC, the marketing efforts wasted consumers’ time and negatively impacted their credit scores. [NPR]
Canadians are turning to credit cards for financial stress relief and debt is mounting
As high inflation rates drive up the cost of basic necessities, consumers are putting small and large purchases on their credit cards to relieve some immediate financial pressure. A report Tuesday by credit bureau Equifax Canada shows the practice is driving Canadians into debt as balances begin to exceed the ability to pay off credit. The report states that in the most recent quarter, credit card balances hit their highest level since the last quarter of 2019. There was a 6.4% increase in balances between the first and second quarters of this year, and people are buying more credit cards, te. [CBC]
Chase has added a year of free DoorDash DashPass membership to most of its co-branded credit cards
Chase has extended its free DoorDash DashPass membership benefit to most of its co-branded credit cards. These include the popular Chase United, Marriott, Southwest and IHG personal and business cards. To receive a free year, you must activate the benefit before December 31, 2024. [Business Insider]
Most crucial credit card stats and trends for 2022 to show growth
Today, credit cards play a vital role in people’s day-to-day financial interests. The penetration of credit cards varies widely around the world as in some countries almost all consumers use Visa or MasterCard-issued credit cards, while in some countries consumers hardly use these credit cards. Here we’ll go over some of the most prominent credit card stats showing the number of people using credit cards, their favorite issuers and networks, and how often and for what purpose these cards are used. [Enterprise Apps Today]
Inflation fears pushing shoppers to make an early jump during the end-of-the-year festivities
Although the holiday season is still months away, consumers are already worried about how they will pay for this year’s gifts as prices continue to rise, according to several studies. About 40% of holiday shoppers said inflation is changing the way they shop, with most trying to use money-saving strategies, according to a new Bankrate.com report, such as buying fewer items or cheaper brands and using coupons, discounts. and credit card rewards to offset costs. More than half, or 59%, of Americans are stressed about buying gifts this holiday season due to higher prices, according to another recent survey. Half of Christmas shoppers plan to start before Halloween. [CNBC]
Amex cardholders can now complete purchases to donate to charity
Amex Round-Up is a new feature that allows cardholders to complete their purchases and donate the extra money to charities of their choice. Because this is a pilot, not everyone can participate yet. Eligible cardholders in the US and US Territories will receive an email from American Express inviting them to participate in Amex Round-Up. They can select the Amex card they want to enroll in the program and choose the purchase categories they want to round up. The categories include bars and restaurants, entertainment, groceries, shopping, services, transportation and travel and leisure. During registration, cardholders can select an amount to round up in each category: to the nearest $1, the nearest $5 or the nearest $10. [The Points Guy]
Block Launches Cash App Pay Beyond Square Network
Block’s Cash app (formerly known as Square) now allows users to make payments on ecommerce sites outside the Square network. Until now, users could only make payments with Cash App Pay on Square terminals or online Square merchant partners. The company is partnering with American Eagle, Aerie, Tommy Hilfiger, Finish Line and JD Sports for the launch, with more vendors such as Romwe, Savage x Fenty, SHEIN, thredUP and Wish to follow in the coming months. Users can view discounts and promotions from these brands on the Discover tab of the Cash App or go to their website and select the Cash App Pay option at checkout. They can use Cash App credit or debit cards to pay for items they purchase. [Tech Crunch]
