Credit card

Why card issuers offer crypto rewards; Buy now Pay later Platforms may be regulated


Why your credit card company wants to give you crypto

Cryptocurrency was first created as an alternative to traditional financial institutions. Now, it’s become common enough for Mastercard to offer its customers access to digital cryptocurrency wallets, cryptocurrency-branded debit and credit cards, and even loyalty-based rewards programs. cryptocurrencies. These tools are part of the partnership announced by Mastercard with Bakkt, a platform for buying and selling digital assets like crypto. Merchants, including restaurants and retailers, will be able to offer bitcoin as an alternative to the traditional loyalty points that credit cards often offer users. At the same time, these Mastercard customers will have the opportunity to convert the reward points they already have into bitcoins and store them in a Bakkt digital wallet. [Recode]

Consumers turn to buy now, pay later, raising concerns over repayment capacity

Well-established companies like Goldman Sachs and Mastercard are jumping headlong into a fintech product that some critics say poses risks to consumers. The service, known as “buy now, pay laterIs a variation of the old-fashioned layaway plans once offered by retailers. Experts say the rapid expansion will certainly attract the attention of regulators. Some of the regulatory reactions to date include the Consumer Financial Protection Bureau in June informing consumers of the benefits and pitfalls, and the UK’s Financial Conduct Authority announcement that it will oversee the BNPL industry. [Roll Call]

Lenders say Americans are ready to use their credit cards again

Major credit card lenders in the United States are welcoming signs that customers are about to increase their borrowing after paying off their balances during the Covid-19 pandemic. Depositors are reducing the cash buffers they accumulated during the crisis with the help of government stimulus payments and debt relief programs. Any increase in credit card borrowing would be good news for the banking industry, which has struggled to find profitable uses for the money that is building up on its balance sheets amid lukewarm loan demand. [Financial Times]

Justice Department Investigates Visa’s Relationship with FinTech Firms

The Justice Department is examining Visa’s dealings with major fintech companies as part of its antitrust investigation into the card giant, people familiar with the matter say. Antitrust investigators are looking into the financial incentives Visa has given to Square, Stripe and PayPal. Investigators want to know if these deals have prevented payment companies from using other card networks or money movement technologies. [The Wall Street Journal]

Stripe teams up with Klarna after binge of rival offers

Stripe will allow retailers to add Klarna’s buy now-pay later service as a purchasing tool for customers. Merchants using Stripe’s technology will be able to integrate Klarna’s payment methods on their websites. The move will significantly increase Klarna’s potential seller network, while retailers with Stripe will be able to access flexible spending options to increase sales. Stripe competes with Square and PayPal, both of which have signed major deals with Klarna rivals. In August, Square announced it would acquire Australian buy-it-now, late-pay company Afterpay for $ 29 billion, while PayPal bought Japan’s Paidy for $ 2.7 billion in September. [Bloomberg]

Bank overdraft fees hit record highs during pandemic

Overdraft fees charged by banks for withdrawals exceeding funds in a checking account reached their highest amount on record last year. The average charge for overdrafting an account was $ 33.58, an increase of 22 cents over the past two years, according to a Discount rate survey. U.S. banks have generated around $ 9 billion in revenue per year from overdrafts, ATMs, and other fees in recent years. Fresh has become something of a cash cow over the past 20 years. Some federal lawmakers are pushing to cut those billions, arguing that the fees are mostly siphoned off by low-income customers and households of color. [CBS News]

Mastercard presents accessible card design for blind users

Mastercard launches a new card for people who are blind or visually impaired. Different varieties of the card, which will be available in 2022, will use physical notches to help people use touch to distinguish them and discern the correct way to insert them into the scanning machines. The debit card will have a square notch, the credit card will have a rounded notch, and the prepaid card will have a triangular notch. [The Wall Street Journal]

Advance of Pandemic Widens Mobile as a preferred means of banking

Mobile banking was already the most popular method for U.S. consumers to interact with their bank accounts before the Covid-19 pandemic hit. But since March 2020, the proportion of customers using mobile platforms has jumped 11 percentage points, according to a investigation. The proportion of clients for whom branch visits were the primary banking option declined by the same margin over this period. About 10% of users preferred to visit a physical location after Covid, up from 21% previously. [Banking Dive]

Staggering statistics on the state of debt in America

A survey conducted by Inside 1031 found that 55% of people have a month-over-month credit card balance. Additionally, 40% have not been without credit card debt since before 2018 and 15% have had credit card debt since before 2006. The survey found that 49% of Americans depend on credit cards to cover their essential living expenses. What’s more, 57% of Americans have missed at least one credit card payment. The most common reason for missing a payment was simply forgetting (37%), but the second most common reason was paying for food and groceries (32%). [GO Banking Rates]

Small Business Owners To Launch First World Series Pitch

Three small business owners received the invaluable chance to throw a ceremonial first pitch in Game 3 of the World Series thanks to the latest partnership between MLB and Mastercard. The three winners will take a trip to the Fall Classic in honor of small businesses across America who have adapted and overcome the challenges of the pandemic. Each winner received a grand prize of $ 10,000, one-on-one mentorship from Mastercard small business experts and a Mastercard Digital Doors toolkit, as well as other prizes such as personalized stadium signage in the local market. of each company. [Major League Baseball]

Bank of America Adds New Business Credit Card With Cash Back

The new Bank of America Business Advantage Unlimited Cash Rewards credit card gives business owners who prefer Bank of America an option that does not involve tracking bonus categories. The card offers a decent 1.5% reward rate and a welcome offer of $ 300, with the potential to earn more rewards for some Bank of America customers. [Investopedia]

You will soon be able to achieve American Airlines Elite status entirely with your credit card

From 2022, you will be able to achieve Elite status with your American Airlines credit card without even setting foot on an airplane. American announced its new vision for loyalty, adopting a currency called Loyalty Points to track the progress of customers to elite status. The redesigned AAdvantage program will allow most miles earned to count toward elite status with the airline. With the new AAdvantage program, for each qualifying AAdvantage mile earned, you will earn a loyalty point, which includes miles earned with US credit cards issued by Citi and Barclays. [CNN]


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