LowCards.com Weekly Credit Card Update–August 30, 2019

LowCards.com Weekly Credit Card Update–August 30, 2019

August 30, 2019         Written By Bill Hardekopf

Millennials Are Rejected More Often When Applying for Loans, Mortgages and Credit Cards
Almost six out of 10 millennials say they’ve been rejected when applying for credit cards, mortgages, car loans and other financial products. In fact, millennials (ages 23 to 38) are experiencing higher denial rates than other generations, according to a recent poll of nearly 2,500 U.S. adults by YouGov for Bankrate.com. Of those millennials who have faced rejection, the bulk (63%) say they’ve been denied a credit card. Yet while millennials report being rejected more often, their credit scores are not much different than those in Gen Z (ages 18 to 22) and Gen X (ages 39 to 54). If their credit scores are not that different, why are more millennials facing denials? Essentially, some millennials, particularly younger ones, may have delayed applying for a credit card, but were later rejected because they didn’t have a robust history. Story by Megan Leonhardt for CNBC

The Spy in Your Wallet: Credit Cards Have a Privacy Problem
Despite a federal privacy law covering cards, I found that six types of businesses could mine and share elements of my purchase, multiplied untold times by other companies they might have passed it to. Credit cards are a spy in your wallet, and it’s time that we add privacy, alongside rewards and rates, to how we evaluate them. The card data business is booming for advertisers, for aiding investors and for helping retailers and banks encourage more spending. And there are many ways a card swipe can be exploited that don’t always require a transaction being “sold” or “shared” in a way that fully identifies you. Data can be aggregated, anonymized, hashed or pseudonymized (given a new name), or used to target you without ever technically changing hands. Story by Geoffrey A. Fowler for The Washington Post

Americans Look to P2P Platforms for Business Refunds
According to a new MetaBank study, 24% of consumers would prefer P2P payments for business refunds, as opposed to traditional methods of reimbursements. Shifting to digital refunds could save businesses money in the long run. Of the $2 billion business-to-consumer payments made each year, approximately half are distributed through paper checks. According to one study, checks cost as much as $3.15 each. Nearly one-third of consumers (31%) said they would be less likely do business with a company that made payments by check. Story by Bill Hardekopf for LowCards.com

Mobile Payments Have Barely Caught On in the US, Despite the Rise of  Smartphones
Despite growing smartphone dependence, most Americans still aren’t using the devices to pay for things. In other countries, it’s a different story. Places such as China and India are witnessing rapid adoption of smartphone payments. Chinese mobile payments, for example, made up more than 80% of all purchases in the country last year. In the U.S., major mobile payments apps had adoption rates of less than 10%. It seems odd considering the ubiquity of iPhones and Androids in the United States. One reason phones are the go-to payment method in some countries abroad is because cash was the only other, and far less attractive, option. Story by Kate Rooney for CNBC

How Prepaid and eGifts Can Boost Engagement in the Payments Space
eGifts are also effective tools at boosting loyalty because consumers appreciate their flexibility and versatility. They can be delivered quickly (often within minutes) and redeemed in-store, online and via mobile for what the recipient chooses. Offering smart ways for existing customers to remain engaged with your brand helps circumvent the need to claw for attention in crowded, saturated markets. Story by Theresa McEndree for Mobile Payments Today

Does the New Apple Card Live Up to All the Hype?
Does the world really need another credit card? Apple thinks so. The company calls its Apple Card “a new kind of credit card” that “can do things no other credit card can do.” With this card, the sizeable rewards are for those who use Apple Pay, the company’s mobile contactless payment technology. A half dozen credit card experts were asked to rate the Apple Card on a scale of 1 to 10 based on how they think it compares to other rewards cards already on the market. The average score: 6.5. Story by Herb Weisbaum for NBC News

Mobile Payments Drive The Future Of Parking
In most cities, parking is one of the most stressful situations for both citizens and parking operators. Think of the last time you combed the streets in search of a place to park, or worse, found the perfect spot and didn’t have enough change to feed the meter. Thankfully, municipalities are not sitting idle regarding this issue. Many are working to implement new technology to create a frictionless, smarter parking experience for constituents and visitors. Mobile payments technology is increasingly driving this future and the rise of smart cities.
Story by Roamy Valero for Payments Journal

Formjacking Attacks Target Customers at Checkout
Cybercriminals are increasingly hijacking online forms such as login pages and shopping carts as they hunt for personal financial information, according to new research from F5 Labs. The firm’s Application Report 2019 examined 760 breach reports to discover that formjacking, which collects data from a user’s web browser and then moves it to an attacker-controlled location, remains one of the most common attack tactics on the web. According to F5 Labs data, this attack method was responsible for 71 percent of all analyzed web-related data breaches throughout 2018. Story by Anthony Spadafora for Tech Radar

Banks in Rural Areas Need to Step Up Their Mobile Game
Last year, approximately 82% of the U.S. population lived urban areas, according to one study. That number is projected to reach 90% by 2050. This means banks will be incentivized to concentrate their branch networks in urban areas and abandon rural counties with declining customer bases. This trend will put digital and automation at the heart of rural banking. Financial institutions will need to shift interactions to digital channels–and automate where possible– to continue serving rural communities without a physical branch. A shift toward digital and automation will make it more cost-effective for banks to service these geographies. Story by Paul Schaus for American Banker

Equifax Now Offers Free Credit Reports and Scores through Core Credit
Equifax launched a new program that allows consumers to access their credit scores and credit reports for free each month. Core Credit is now part of the myEquifax online portal, and offers monthly access to Equifax credit reports and VantageScore® 3.0 credit scores. Accessing Core Credit does not cost any money. Story by Lynn Oldshue for LowCards.com

Alibaba, Tencent, Five Others To Receive First Chinese Government Cryptocurrency
China’s central bank will launch a state-backed cryptocurrency and issue it to seven institutions in the coming months, according to a former employee of one of the institutions who is now an independent researcher. Paul Schulte, who worked as global head of financial strategy for China Construction Bank until 2012, says the largest bank in the world, the Industrial and Commercial Bank of China, the second largest bank in the world, his former employer, the Bank of China, the Agricultural Bank of China; two of China’s largest financial technology companies, Alibaba and Tencent; and Union Pay, an association of Chinese banks, will receive the cryptocurrency. Story by Michael Del Castillo for Forbes

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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