Hard-up Americans are now taking out loans to pay for groceries using Buy Now, Pay Later apps
A growing number of Americans are using “buy now, pay later” services to purchase basic commodities such as groceries, raising concerns about consumers taking on more debt. Food accounted for about 6% of purchases last year, but appears to be a key part of the industry’s explosive growth as rising grocery costs in the US increase the appeal of deferred payments. For example, Klarna reported that grocery or household items accounted for more than half of the top 100 items purchased through the app. Zip says it has seen 95% growth in U.S. groceries and 64% in restaurant transactions. [Daily Mail]
Runaway inflation makes stressed consumers look for new ways to pay for the basics
Rising numbers of stressed consumers seek alternatives to credit cards
Credit card companies remain solidly satisfied in an uncertain economic environment, but there are major concerns on the horizon. Many consumers experience financial stress and higher interest rates lead them to look at other options, such as buy now and pay later. Other short-term loans, such as installment plans, personal loans, and buy now, pay later programs, have “exploded” over the past 24 months. These choices are especially appealing to consumers who are financially stressed and on tighter budgets. That’s part of the cardholder population that’s growing rapidly. JD Power data indicated a significant spike in consumers who are unable to pay their bills and have no long-term financial plans. [The Financial Brand]
NYC officials want credit card companies to help track gun and ammunition sales
New York City officials said Tuesday they want major credit card companies to create a code to track purchases of weapons and ammunition so law enforcement officers try to keep a closer eye on criminals. They are asking that credit card companies such as American Express, Mastercard and Visa add a new four-digit “merchant code” that classifies gun and ammunition stores by individual statements when purchases are made. The new code would help companies keep track of when suspicious purchases are made and could even help law enforcement stop shootings before they happen, proponents say. [The New York Post]
American credit scores hold up despite recession fears
Skyrocketing inflation and an economy that shrank in the first half of the year could be driving more recession jitters these days, but new data shows Americans are still paying off their debts. Analysis firm Fair Isaac Corporation said Tuesday that the national average FICO score is currently 716, the same as it was a year ago. FICO said 2022 is the first time the average score has not risen in recent years, noting that scores have risen significantly during the first year of the Covid-19 pandemic. [Fox Business]
How gift cards can help restaurants fight inflation
Gift cards are easily accessible and offer restaurants free advertising. In fact, they are often referred to as “pocket billboards” because they show off a brand’s logo and stay within the closed confines, physical or mobile wallet, where consumers are constantly reminded of the “free money” they can use to eat out. to go. Gift cards almost always guarantee that money will be spent on that particular business, with the potential to attract new customers. In addition, 60% of gift card recipients spend more than the initial amount on their card, bringing unexpected revenue to restaurants. Gift cards are also excellent for running promotions. Offering a promotion such as “buy a $100 gift card to give, get a $10 gift card to keep” encourages both gift-giving to new customers and inviting repeat customers to return to their home. favorite restaurant. [Modern Restaurant Management]
Mastercard Reports on Growth in Consumer Adoption of Emerging Payment Technologies
Nearly nine in ten consumers worldwide have made digital payments using digital wallets, contactless, QR codes, buy now, pay later, money transfer apps, cryptocurrencies, biometrics and other digital payment technologies (85%) and more than six in ten ten say they have increased their use of at least one digital payment method (61%) in the past 12 months, according to a Mastercard survey. Globally, 35% of survey respondents said they have used less cash in the past year. When asked specifically about biometric payments, more than two-thirds of respondents say they believe verifying payments using biometric technology is more secure than using a PIN or password, while just under two-thirds agree that it is easier to pay with biometrics than with a payment system card (61%). [NFC World]
Klarna loses more than three times after valuation crunch
Buy now, pay later giant Klarna has more than tripled its losses in the first half of the year, amid a challenging period for the company which also saw its valuation plummet by 85%. The company reported pre-tax operating losses totaling $580 million in the six months to July, more than tripling from $168 million in the same period a year earlier. It comes after the company laid off 10% of its global workforce, about 700 people, in May. The confirmation of Klarna’s worsening burn rate comes a month after the startup suffered a massive valuation drop from $46 billion to $6.7 billion as it attracted investors for $800 million in new funding. [Sifted]
Three Hilton credit cards offer welcome bonuses up to 130,000 points
American Express and Hilton have temporarily increased the welcome bonus on three of their Hilton Honors cards: the Hilton Honors American Express Surpass Card, the Hilton Honors American Express Card and the Hilton Honors American Express Business Card. Now through October 26, you can earn up to 130,000 Hilton Honors points when you sign up for one of these three Hilton credit cards and meet the minimum spending requirements. [CNBC]
Citi extends transgender-friendly True Name program to debit cards
Nearly two years after transgender people and other customers were able to use their preferred name on credit cards, Citigroup is expanding the ability to use debit cards for the first time. Citi is the largest bank to expand the name-chosen feature to debit cards after Mastercard first announced its True Name program in 2019. Starting Monday, Citi debit customers can call Citi or visit a Citi branch to use their preferred name on their debit card instead of their legal name. [American Banker]
What is cryptocurrency and how does it work?
To start investing in cryptocurrencies, you must first understand how cryptocurrencies work. Half of our visitors are familiar with cryptocurrency, but most (95%) have never used it and 99% have never paid for it. Whether you have no idea at all about crypto, have a basic understanding or are interested in dipping your toes into digital currency waters, it pays to understand the technology before using it. Keep reading for easy-to-understand answers to questions you’ve probably been wondering since bitcoin hit the market: how does cryptocurrency work, what can you do with it, and what does the future of digital currencies hold? [Reader’s Digest]
US Department of Agriculture to test NFC and QR mobile payments for state contactless benefits
The U.S. Department of Agriculture will conduct a series of pilot projects to test the use of mobile payment technology to enable citizens eligible to receive financial assistance under the Supplemental Nutrition Assistance Program (SNAP) to receive benefits and make NFC or QR code payments. make eligible purchases on their mobile device. USDA is planning up to five pilots in partnership with government agencies that will allow SNAP recipients to pay for bread, fruits, vegetables and other essential foodstuffs at authorized merchants using their smartphone, tablet or smartwatch instead of their existing physical SNAP payment card. [NFC World]
Latin American Crypto Company Ripio Launches Prepaid Crypto Card in Brazil
Latin American crypto firm Ripio has begun rolling out a prepaid debit card in Brazil that will allow payments to be made in cryptocurrency and earn cashback rewards in bitcoin. The company hopes to bring 250,000 cards developed in partnership with Visa to the market by the end of the year and offer the product to the one million users in the South American country. The card allows payments to be made using Brazilian reals and the 28 cryptocurrencies that Ripio has listed on its platform. The company also plans to launch the card in Argentina later this year, and does not rule out rolling out in other countries where the company operates, such as Uruguay, Colombia, Mexico and Spain. [Coin Desk]
