LowCards.com Weekly Credit Card Update–August 23, 2019

LowCards.com Weekly Credit Card Update–August 23, 2019

August 23, 2019         Written By Bill Hardekopf

Why Streaming Services Are The New Credit Card Rewards Binge
When it comes to credit card rewards, it’s not all about gas, groceries and restaurants anymore. Issuers are moving beyond suburban staples to include millennial-friendly categories such as transit and streaming subscriptions. What’s behind this? For starters, streaming is wildly popular. As of 2017, more than half of U.S. households subscribed to paid video-streaming services. But experts say it’s also about issuers forging early connections with younger consumers and ensuring that they remain customers. Story by Sara Rathner for the Associated Press

Here’s How The New Apple Card Could Put Pressure on Verizon and AT&T
Apple’s new credit card with Goldman Sachs could be a disruptive force in more than just the banking industry. The technology device giant’s move into banking could enable it to give customers financing for new models of the iPhone, breaking a key relationship point between customers and wireless carriers such as Verizon and AT&T. Wireless carriers often sell expensive new phones to customers in installment plans as part of their monthly service bill. This helps keep customers locked into the carrier until the phone is paid off. The analysts at MoffettNathanson said that Apple Card and new SIM card technology could make it easier for customers to switch between wireless services. Story by Jesse Pound for CNBC

As Americans Stick With Cards, JPMorgan Drops Its Chase Pay App
Will anything ever pry old-fashioned credit cards out of Americans’ hands? Even as the rest of the world embraces the idea of paying for stuff with their smartphones, the U.S. is clinging to its cash and plastic — so much so that even the nation’s biggest bank is struggling to persuade people to switch. Starting early next year, JPMorgan Chase & Co. customers will no longer be able to use the Chase Pay app to pay with their smartphones when shopping in stores, the bank said Wednesday. Story by Michelle Davis and Jennifer Surane for Bloomberg

Citibank July Credit Card Delinquency Rate Rises from June
Citigroup July credit card delinquency rate increases to 2.91% from 2.56% in June; three-month average is 1.54%. Net charge-off rate of 2.91% rises from 2.56% in June; three-month average is 2.74% Story in Seeking Alpha

Billions of Records Exposed: 2019 on Track to be Worst Year Ever for Data Breaches
The number of data breaches resulting in exposed records is up by 54% year over year in the first half of 2019, and the number of records exposed in those breaches is up by 52%. More than 3,800 data breaches were reported in the first six months of this year, and just eight of those exposed more than 3.2 billion records, nearly 80% of all records exposed so far in 2019. The business sector was responsible for nearly 85% of the exposed records and two-thirds of the reported breaches. Story by Paul Ausick for USA Today

Is Amazon Moving Into the Cryptocurrency Space?
Investors around the world expect Amazon to join the group of technology giants launching their own cryptocurrencies. The rumors started in November 2017, when Domain Name Wire reported the company had registered three blockchain- and cryptocurrency-related domain names, but the company may have registered the domains to protect its brand name. Amazon has launched its own fully managed blockchain service for the development of scalable blockchain networks. The company has also developed a fully managed ledger database which can be used to develop blockchain applications. Amazon has also entered into partnerships with blockchain players. Story by Margaret Patrick for Market Realist

What Happens to Credit Card Debt When You Die?
Almost 3 out of 4 consumers die in debt. Will your family members inherit your credit card debts? Unfortunately, credit card debts do not disappear when you die. Your estate, which includes everything you own–your car, home, bank accounts, investments, to name a few–settles your debts using these assets. The executor of your estate, the person who carries out your wishes, will use your assets to pay off your credit card debts. But when your credit card debts have depleted your assets, your heirs can be left with little or no inheritance. Story by Bob Musinski for US News

Driving The Gig Economy’s Future Through Pay Advance
While traditional temporary and contract workers are not exactly new in the economy, the modern gig economy enabled by mobile technology is something of an economic force all its own. Today the gig economy drives $1.4 trillion in U.S. income. For an increasing number of workers, the gig economy isn’t an add-on to their normal professional life, it is their primary professional work. Living up to that opportunity, however, means payments must continue to evolve together with the rise of the gig economy. The persistent downside many workers are still facing is volatility in terms of access to funds. Working on a salary is very stable – project work can have an inconsistent cash flow. Story in PYMNTS

Total Household Debt Continues Consecutive Quarterly Increase
Consumer household debt balances have been on the rise for five years and quarterly increases continue on a consecutive basis, bringing the second quarter 2019 total to $192 billion, according to the Federal Reserve Bank of New York’s Household Debt and Credit Report. Mortgage balances, which fuel most of the quarterly increase, rose by $162 million in the second quarter to $9.4 trillion. Among the other top forms of consumer debt, credit card balances increased to $868 billion from $848 billion in the first quarter while student loan debt declined $8 billion to $1.48 trillion. Story in ACA International

Mobile Banking Apps in the UK are Surging Ahead of Investment and Insurance Apps
Over three-quarters of consumers in the UK use a finance app, according to a new study from Speedie Consultants. Twenty-four percent of those surveyed use their finance apps around twice a week, and 23% said they use it daily. The most common finance app users were aged 25-45, in addition to consumers over 65. This leads a vast majority of consumers to use banking apps, largely because using apps is easier than logging in from a desktop and enables them to quickly check account balances; it’s faster than if they were to go to a bank branch, for example. Story by Lea Nonninger for Business Insider

5 Mobile Payment Security Concerns To Consider
Nearly, 55.0 million people are using mobile payment options in the US, which makes around 20.2% of the population there. The mobile payment options are rapidly replacing the outmoded payment options allowing the customers to make payments or complete transfer transactions through technologies like Android Pay, Samsung Pay, Apple Pay, Paytm wallets, and many more. However, when it comes to the security of making mobile payments, there are some loop falls. Story in Nirav Sashtri for Payments Journal

Visa Critical of India’s Move Toward No-Fee Debit Card Transactions
Global card payments group Visa is critical of the Indian government’s decision to boost adoption of electronic payments by requiring banks and card payment networks to offer no-fee debit card transactions, a senior Visa executive said. Last month, India’s Finance Minister Nirmala Sitharaman said that businesses with annual turnover of 500 million rupees will not have to pay a merchant discount rate on debit card and other digital modes of transactions, excluding credit cards. The discount rate is paid by the merchant to banks, card payment networks, and other financial intermediaries for handling a digital transaction. For debit cards, the fees are on average between 0.40% and 0.80% of the transaction amount, according to industry officials. Story by Nupur Anand for Reuters

bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf
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