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Related content: Check out The Era of Uncertainty: Credit Cards report to learn about the short- and long-term challenges affecting the general-purpose credit card sector. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.

This includes money management accounts and credit cards for merchants. It could also extend to buy now, pay later installment and financing options for their customers鈥攁nd more. Such additions can further strengthen merchant engagement and open more revenue streams. 3 leading digital commerce platforms process merchant payments in-house.

Overstock also uses first-party data to determine what kinds of benefits matter most to its customers, which the brand can then offer through its loyalty program or its two co-branded credit cards.

Buy now, pay later (BNPL) has thrived because it combines the flexibility of credit with short repayment terms, app-based shopping, and a simple user experience.

Strengthening loyalty will also make it easier for banks to cross-sell products like credit cards, banking services, and mortgages.

Thirty-one percent of the consumer installment and credit card loans within Platform Solutions are held by borrowers with FICO scores of 660 or less, per PYMNTS. With the average credit score of consumers living paycheck to paycheck sitting at 664, the unit could run into loan loss issues in the event of an economic downturn. Loan loss provisions in H2 2022 have already dented profits.

Its report found that many BNPL users have subprime credit scores and are under economic distress鈥攚hich could increase the case for regulation.

Consumer banking numbers remained strong, as Wells Fargo reported that deposits balances, consumer spending, and credit quality were still above pre-pandemic levels. Credit card volumes were up 6% YoY. The wrap-up: Though banks are still preparing for a tough economic environment, they appear to be more confident about moving forward.

In February, Goldman stopped pursuing new credit card programs and abandoned plans for a branded consumer credit card. Goldman reported a $3 billion loss over nearly three years from the unit that includes GreenSky and other transaction banking, credit card, and fintech businesses. Is GreenSky an attractive purchase?

With fewer consumers carrying cash and younger adults resistant to credit cards, retailers that fail to adapt to preferred payment methods risk losing share of wallet. Making Apple Pay easy to use drives occasions when consumers aren鈥檛 carrying their wallets.

Issuers rely heavily on fees from credit card payments and to a lesser extent debit payments. But if consumers and businesses start using FedNow instead of cards, those revenues could dry up. In 2022, merchants paid an estimated $85.6 billion in credit card processing fees, and more than 80% of this went to issuers as interchange revenues. Costs of beefing up tech.

The costs of accepting card payments go beyond interchange rates. They also include chargebacks, false positives, and fraud losses. Given all of these factors, companies end up paying between 4% and 10% of their revenue to offer card payments, per PYMNTS and Trustly.

The news: Two major US credit card issuers are enhancing their travel portfolios:. US Bank added a commercial travel card and platform for mid-market businesses. The Commercial Rewards Card, designed for businesses with $10 to $150 million in annual revenues, uses US Bank鈥檚 2021 acquisition of TravelBank.

Consumers are showing signs of strain as the labor market weakens, credit card delinquencies rise, and their confidence falters. The Fed鈥檚 delayed interest rate cuts may have worsened conditions, leading to cautious spending and a challenging economic landscape. Why it matters: The robust growth in July indicates that advertisers may be regaining a measure of confidence.

It also claims Apple 鈥渦ses its smartphone monopoly to extract payments from banks鈥� for each Apple Pay credit card transaction, an expense that cuts into funding for features and benefits that issuing banks could otherwise offer customers. What鈥檚 next? Apple is preparing a motion to dismiss the case鈥攌icking off a drawn-out legal fight.

Moynihan also said crypto could become 鈥渁nother form of payment鈥� just like paying with a credit/debit card or mobile wallet. Bank of America already has 鈥渉undreds of patents on blockchain" and 鈥渒now[s] how to enter the field,鈥� he added. Why this matters: We predicted that crypto payments will take off under the Trump administration.

But it's access to credit that's separate from your credit card, so you could be maxed out on your credit cards and still get a buy now pay later loan. David Morris:. Well, let's back up and let's think about general underwriting because whoever is driving this ship at Affirm or Klarna or PayPal now is just gangbusters on buy now pay later.

They also feature daily rewards鈥攁n extremely valuable feature for 27% of respondents to our 2022 US Cash- Back Credit Card Benchmark survey鈥攚hich lets cardholders view and redeem rewards on a daily basis rather than monthly. Prime Visa and Amazon Visa already offered 5% back and 3% back on Amazon purchases, respectively.

The Walmart partnership would also play to Synchrony鈥檚 traditional strength, which lies in card payments. This would position the issuer strongly as more consumers seek out store credit cards: Interest in applying for a store credit card reached the second-highest level in five years at the end of 2022, per LendingTree.

They automatically qualify if they have available credit on their card, eliminating barriers to in-store BNPL uptake. The market picture: Just 10% of US adults have used in-store BNPL. But companies that can ease the checkout process for customers stand to benefit. Online competition is fierce.

In September, the Department of Justice (DOJ) started an antitrust case against Visa, alleging the network illegally maintains a monopoly over the debit card market. The DOJ has also filed antitrust cases against Google and Apple, and the Federal Trade Commission (FTC) filed antitrust lawsuits against Amazon.

蘑菇AV 37% of US consumers were charged at least one late fee over a 12-month period, per Nerdwallet鈥檚 2024 State of Consumer Credit Report. Credit card late fees were the most common type: 21% of US adults incurred at least one in the past year.

In upcoming earnings results, the bank is reportedly set to reveal more than $2 billion in pretax losses for its new credit card and installment-lending business, according to Bloomberg. That, combined with mounting costs and tough market conditions, have impacted Goldman鈥檚 bottom line: Analysts expect an estimated 46% decrease in profits.

The CFPB is also investigating Goldman Sachs' credit card business, which includes the Apple Card. Sliding customer service. Some users have reported problems with Apple鈥檚 savings accounts, including technical glitches and being unable to withdraw cash from their accounts. Issues like this could sour customer trust and create resistance for Apple's financial services push.