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Delinquencies slightly improved for both issuers, but Discover鈥檚 card volume fell behind

Roughly 7 in 10 US retailers (68%) said that ecommerce theft and fraud were a bigger concern in 2024 than the year prior, per an NRF report. 1 in 4 higher-income shoppers reported engaging in some kind of first-party fraud during the holiday season鈥攕uch as disputing legitimate credit card charges or falsely claiming packages were stolen鈥攃ompared with just 11% of low-income consumers, according to a survey

Its main rival, WeChat Pay, has made similar moves, like letting users link their foreign credit cards to the wallet. Alipay and WeChat Pay should continue to benefit from this international expansion as travel in and out of China gets a boost from the country鈥檚 friendlier visa policies and a rebound in long-haul travel.

According to credit card transaction data from Earnest Analytics, discounters Five Below and Ollie鈥檚 Bargain Outlet topped the list of retailers whose customers also shopped at Temu in the past 12 months, followed by eBay and discount chains Dollar Tree and Dollar General. Ecommerce heavyweights: Amazon and Walmart are well positioned to consolidate gains amid tariff upheaval.

Why this matters: Synchrony鈥檚 earnings data offers insights into the state of private label and co-brand cards. And given private-label cards are often starter cards for consumers with thinner credit histories, it also offers insights into how that demographic is faring. Some of these consumers are struggling to pay off their balances due to private-label 肠补谤诲蝉鈥� record-high interest rates.

Only cards beat out PayPal, with debit cards leading social commerce transactions and credit cards close behind. Fellow digital wallets Apple Pay (used by 16.4% of respondents) and Google Pay (9.6%) fell far behind. Gen Z expects Apple Pay at checkout. Gen Zers鈥� payment preferences differ from those of older consumers. One of the biggest distinctions is their love of Apple Pay.

The news: Food delivery app Grubhub reported a massive data breach that compromised the names, emails, addresses, phone numbers, and partial credit card numbers of its customers. The platform, which serves over 32 million customers, 375,000 merchants and 200,000 delivery providers, said the breach was traced to a compromised account used by a third-party vendor that has since been terminated.

The news: Walmart鈥檚 OnePay and Synchrony will issue a new co-brand Mastercard and a private-label card. Our take: The massive retailer鈥檚 connectivity between its customer base, supplier relationships, and financing apparatus positions OnePay to be a disruptor on the scene.

The global payments industry will be a $2.3 trillion revenue opportunity in 2028. But shifting business models, new technologies, and alternative payment methods are changing how key card players compete for a share of this revenue.

Paying by smartphone is now routine for a growing number of consumers, both in stores and online. Recent data shows the size of the user base, shifting demographics, shopper preferences, and how mobile fits into the spectrum of payment options.鈥�

The news: X (formerly Twitter) CEO Linda Yaccarino said the social media platform is exploring offering co-brand credit and debit cards during the Cannes Lions advertising festival, per a report by the Financial Times. Our take: X doesn鈥檛 wield the necessary characteristics to draw in a meaningful co-brand credit and debit card user base. The company, the social media platform, and Musk himself have been rocked by scandals, causing advertisers and users to flee in droves. If users already have misgivings about the safety of the platform, they may think twice before hitching their finances to the app.

Given the success of its long-standing Sam鈥檚 Club card, the issuer could be in the running to restart Walmart鈥檚 program

The card issuer plans to expand it across its portfolio of co-brand credit cards. It鈥檚 also planning to let eligible cardholders view and redeem their rewards directly in Apple Pay later this year. How we got here: Apple Pay started partnering with BNPL players like Affirm shortly before shutting down its in-house Apple Pay Later offering.

Elevated interest rates have consumers wary of charging big-ticket purchases on their credit cards, and the frozen housing market has dulled demand for items like refrigerators and TVs. Bankruptcies and liquidations pile up. Last year saw 51 retail bankruptcies鈥攄ouble the number in 2023.

Comparatively, the credit card default rate was 8.7%. Consumers with no FICO scores had a default rate of 4.1%, while 3.5% of deep subprime consumers defaulted. The CFPB attributes the stark divide between BNPL and credit 肠补谤诲蝉鈥� default rates to structural repayment differences. Most BNPL providers require automatic repayments.

Given Synchrony鈥檚 large private label and co-brand card portfolio, its cardholders tend to have lower credit scores than other issuers. Because of this, its cardholders tend to feel the strains of worsening economic conditions more acutely. This makes Synchrony particularly vulnerable to recent tariffs. But so far, the issuer isn鈥檛 worried.

Higher net interest income, revolving loan balances, card spending, and card fees fueled growth, the company said. US consumer network volume increased 7% YoY in Q1. International consumer card volume grew 14% YoY. Overall loan and card member receivables increased 7% YoY. And net card fees increased 18% YoY.