Survey finds majority of consumers now prefer to pay via cell phone
In a survey conducted by ABI Research on behalf of the NFC Forum, greater than 80% of respondents said they’d ever used a smartphone or smartwatch to make contactless payments. Of those that have made mobile contactless payments, greater than half say they might fairly pay with their smartphone or smartwatch than with their card. And 95% say they’ve left their physical wallet or purse at home not less than once and as a substitute opted to rely solely on mobile payments. 53% said they now leave their physical wallet or purse at home several times per week. [NFCW]
Consumers are quickly moving to paying via phone and digital wallets
Almost a 3rd of consumers prefer the physical wallet
Digital wallets like Apple Pay, Google Wallet and PayPal offer consumers a secure, convenient and contactless strategy to pay for purchases online and in person. Because they store credit and debit card information, shoppers needn’t carry physical cards while dining or shopping. They also relieve internet buyers of getting to enter sensitive card data into web sites and apps when making a purchase order. According to a brand new study, digital wallets are extremely popular amongst Gen Z consumers, with 79% of them using digital wallets repeatedly. Only about 26% of baby boomers and seniors share this enthusiasm. In between, digital wallet usage varies: 44% of Gen X buyers are fans; This also applies to 63% of Bridge Millennials and 67% of Millennials. [PYMNTS]
Mastercard still charges some fees after reaching an agreement with the merchant
Mastercard plans to extend certain bank card fees starting April 15, just days after the corporate and Visa announced a deal on separate $30 billion swipe fees to offer relief to retail businesses. The company plans to extend its network “review fee” from 0.13% to 0.14%, an annual increase of $259.1 million based on the greater than $2 trillion in Mastercard- transactions within the last yr. Retailers say any fees charged by banks are passed on to them. [Bloomberg]
Chase Bank allows advertisers to focus on customers based on spending data
Chase is the newest company to make use of its data on behalf of advertisers. Bank JPMorgan Chase announced Wednesday that a brand new unit called Chase Media Solutions will allow marketers to entice Chase customers with targeted offers and discounts based on their spending history. Chase joins quite a few corporations, from Best Buy to Uber, which have begun selling promoting space on their apps, web sites and other platforms. They often use their buyer and user data for targeted promoting messages to generate revenue outside of their core business. The company was already offering customers less targeted offers through a program called Chase Offers, which can proceed to incorporate the brand new media unit’s more relevant offers. [The Wall Street Journal]
Consumers reveal how they buy bank cards
57% of respondents said they were significantly more likely or inclined to get a bank card from an establishment they already bank with. Cashback bank cards are extremely popular amongst applicants: 44% of survey participants said the form of card they most recently purchased was a cashback bank card. 33% of respondents cited “earning rewards on everyday purchases” because the predominant reason for getting their latest bank card, while 27% cited “building credit” as their primary motivation. Groceries (47%), gas (36%) and dining out or food delivery (29%) were the highest spending categories for which respondents hoped to receive rewards. [Forbes]
Visa and Mastercard conform to $30 billion cope with merchants. What it means for bank card holders
Visa and Mastercard agreed to a settlement with U.S. merchants and promised to scale back the fees stores pay to process bank card payments – not less than within the short term. The settlement opens up the chance for retailers to charge surcharges on cards with higher swipe fees, which could make using a premium card with an intensive rewards program dearer. Some have speculated that the changes could impact bank card rewards or potentially allow merchants to pass on savings to customers. But other experts are skeptical that this could lead on to significant changes for bank card users. [USA Today]
Klarna launches page to match BNPL, traditional loans
Klarna has launched a brand new website that shares data on its buy now, pay later offers, including their repayment rates, late payment rates of interest and consumer age demographics. This recent Wikipink page goals to advertise transparency within the lending industry and advance the conversation about personal finance at a time when lending providers are facing increased scrutiny. The site compares data about Klarna’s BNPL offerings with those of traditional loans and reports that “interest-free BNPL leads to better consumer outcomes than traditional loans.” [PYMNTS]
Would you go into debt to have a good time this yr? More than one in three Americans say they might
According to a brand new Bankrate survey, 44% of U.S. adults expect to spend more on not less than one fun purchase this yr, while 38% say they might make that purchase Credit card debt for not less than one among these purchases. Additionally, a couple of in 4 (27%) could be willing to enter debt to travel, and about one in seven (14%) could be willing to enter debt to eat out or attend a live entertainment event (13 %). . [Bankrate]
Brazil’s Pix payments destroy money. Are bank cards coming next?
In just three years, Brazil’s hugely popular Pix payment system has change into the country’s hottest payment method, replacing money and bank transfers in lots of cases and now threatening the dominance of bank cards within the booming e-commerce sector. The fast payments designed by Brazil’s central bank are a boon for online retailers, improving money flow in a thin-margin sector while undermining the legacy business of banks and fintechs that construct on existing bank card infrastructure. For shoppers, the transition to Pix was almost seamless as they simply scan a QR code with any banking app as a substitute of reaching for his or her wallet. But for sellers, it has turned the tables on the traditionally lucrative card payments industry. [Reuters]
The lost Thai prince agrees to repay his bank card debt
A top contender for the Thai throne and the $40 billion fortune that comes with it agreed in March with American Express to repay tens of 1000’s of dollars in overdue bank card bills. Legal documents filed in New York state in March show that Vacharaesorn Vivacharawongse, heir presumptive to the elderly and spectacularly wealthy King Maha Vajiralongkorn, has agreed to pay $94,767.88 in fees he defaulted on in 2023 was March twenty ninth. Vivacharawongse said the outstanding balance had been “settled in full in accordance with the terms of the agreement” and American Express had reactivated the cardboard. [The Daily Beast]
