Black Friday spending 12% higher despite inflation
Despite inflation, American consumers spent Thanksgiving Day shopping, both online and offline, and dining out, leading to double-digit sales growth. This is evident from Mastercard’s SpendingPulse report for Black Friday. It showed increases in spending in non-automotive categories: Retail sales on Friday were up 12% year-on-year, the report found, with retail sales up 12% and e-commerce sales up 14%. [PYMNTS]
Three in four Americans say they now make purchases with a smartphone
For shopping, phones are common and influencers have become a factor, especially for young adults
From ordering household items to buying the latest fashion, the internet has reshaped how, when and where people can shop. At the same time, social media has become an important tool for consumers, with some Americans, particularly younger adults, following influencers and turning to recommendations. About three-quarters of American adults (76%) say they ever buy things online using a smartphone, while a slightly smaller portion (69%) say they ever make purchases via desktop or laptop computers. Far fewer Americans (28%) say they have ever bought things online on a tablet. Mobile phone shopping is especially common among adults under the age of 50. About nine in ten Americans ages 18 to 49 (91%) say they buy things online with a smartphone at some point, compared to 69% of adults ages 50 to 64 and 48% of those 65 and older. [Pew Research Center]
American Express: Get approved now without hurting your credit score
American Express has announced that it is testing a new program where selected applicants can see if they have been approved without affecting their credit score. If the applicant is approved and chooses to accept the credit card, it could impact their credit score. This pilot program is different from pre-approved offerings as applicants know with 100% certainty if they have been approved for a US personal card they have applied for. In addition, there is no additional form or information that the applicant must submit after receiving the decision on their application. [The Motley Fool]
The surprising way Capital One designed its hit Venture X travel credit card
When Capital One rolled out its Venture X credit card last November, it took a different approach than other premiums travel rewards cards. While American Express, Chase and others lure travelers to their cards by piling on bells and whistles, everything from sign-up bonuses to airport lounge access, Capital One started with the basics. It created a travel portal that makes it easy to book trips and redeem points. The Capital One booking portal includes free benefits such as price predictions and price alerts. Capital One also offers cardholders a price reduction guarantee, promising to refund them (in the form of travel credit) the price difference of up to $50 if the fare drops within 10 days of booking. Cardholders can purchase additional protections, such as a fare freeze or flight or hotel cancellation for any reason, which resonate in the era of pandemic travel. [Fast Company]
Retailers are pushing hard for credit card processing reform
In the latest salvo in the battle over transaction pricing between retailers and payment card processors Visa and Mastercard, the Merchants Payments Coalition (MPC) is now asking lawmakers to pass legislation that would allow additional payment networks to process bank card transactions, a move the MPC hopes to create competition and potentially ease the pain of credit card swipe fees. The law would allow at least two unaffiliated networks to process credit card transactions that carry the Visa or MasterCard brand, such as American Express, Discover, NYCE, Star and Shazam. It excludes networks supported by foreign governments. [Supermarket News]
Digital banking hasn’t killed bank branches, but chatbots have
Predictions about the death, or at least the decay, of bank branches have been around for a while. However, the predictions have not come true. The number of branches has fallen over the past 10 years from 85,000 in 2012 to 72,000 in 2022, an annual decline of only 1.7%. But make no mistake, bank branches are far from dead. Despite the additions of new features and functionality to online and mobile banking over the past decade, digital banking simply doesn’t do everything banking customers need to do. According to a recent survey by Cornerstone Advisors, 40% of consumers aged 21 to 55 who contacted a human when opening a checking account said they tried to get the information they needed online but couldn’t find it , and 28% said the bank’s website or mobile app didn’t support what to do. [Forbes]
Is Dave Ramsey’s Gazelle Map Worth Getting?
Dave Ramsey’s company, Ramsey Solutions, has launched a debit card, bank account and app called Gazelle. Gazelle has no monthly fees or minimum balance requirements. While Gazelle isn’t a bad financial product, you’re better off using a rewards credit card for purchases and paying the bill in full each month. [The Motley Fool]
Trademark JPMorgan Chase Crypto Wallet is approved
JP Morgan has registered a trademark for a digital wallet. The bank filed a trademark for “JP Morgan Wallet” in July 2020; the submission was finally approved on November 15. The text of the trademark indicates that it can be applied to online services, including cryptocurrency payment processing, the electronic transfer of virtual currency through an online community, and the exchange of virtual currency. The trademark does not apply exclusively to crypto services. It can also be applied to other financial services, including virtual checking accounts, ACH payments, e-check processing, and bill payments. [Crypto Briefing]
Buy now, pay later Often a debt trap
A survey in March by financial services firm Lending Tree found that 42% of those who took advantage of “buy now, pay later” offers paid late fees. That means “a large number of Americans are overextending themselves by using these loans,” the report said. “In a time of skyrocketing inflation, rising interest rates and general economic uncertainty, that’s a big deal.” With the exception of accounts going to collections, most buy now, pay later transactions are not reported to credit bureaus, so BNPL lenders have no idea how many other loans their customers have with other lenders or BNPL companies. And unlike credit card issuers, BNPL lenders do not verify that potential borrowers have sufficient funds to repay their debt. [Consumers’ Checkbook]
This Chase United card now has a welcome offer of a whopping 100,000 points
United MileagePlus miles just got even more valuable, and luckily for consumers, there’s plenty on offer right now through Chase’s range of co-branded United credit cards. Through January 25, 2023, those who sign up for a new United card will have the chance to earn an increased sign-up bonus after meeting the minimum spending requirements, and those who sign up for the United Club Infinite Card gets a particularly good chance: 100,000 miles after spending $5,000 on qualifying purchases in the first three months after opening the account. [Conde Nast Traveler]
