LowCards.com Weekly Credit Card Update–January 24, 2020

LowCards.com Weekly Credit Card Update–January 24, 2020

January 24, 2020         Written By Bill Hardekopf

Cash, Plastic or Hand? Amazon Envisions Paying With a Wave
Amazon wants to make your hand your credit card. The tech giant is creating checkout terminals that could be placed in bricks-and-mortar stores and allow shoppers to link their card information to their hands, according to people familiar with the matter. They could then pay for purchases with their palms, without having to pull out a card or phone. The company plans to pitch the terminals to coffee shops, fast-food restaurants and other merchants that do lots of repeat business with their customers. Amazon, like other tech companies, is trying to further integrate itself into consumers’ financial lives, leaving banks and card networks on edge. Story by AnnaMaria Andriotis for The Wall Street Journal

110 Million Consumers Could See Their Credit Scores Change Under New FICO Scoring 
Americans who are struggling to pay off their debt could see lower FICO credit scores in their future, especially if they miss payments. The FICO 10 model will start incorporating consumers’ debt levels into their scoring model. FICO estimates that about 110 million consumers will see a change of less than 20 points to their score under the new credit score model. Overall, roughly 80 million consumers will see a change in score of 20 or more points in either direction, upward or downward, FICO says. Those who fall behind on their loan payments are more likely see the drop in their score. Story by Megan Leonhardt for CNBC

Senators Propose Cybersecurity Coordinators For Every State
A bipartisan group of Senators are interested in establishing a cybersecurity leader for each state in order to increase the states’ abilities to respond to cyberattacks. The Cybersecurity State Coordinator Act proposes creating a federally-funded program that would create a cybersecurity coordinator position for each state. The program would be part of the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency. The 50 coordinators-CISA employees-will be responsible for working with all levels of government to prepare for, prevent, and respond to attacks. The state coordinator would act as a security risk advisor, point-of-contact, and facilitator between federal and non-federal organizations, including state and local governments, schools, and hospitals. The coordinator will also be expected to raise awareness of the financial, technical, and operational resources non-government entities can receive from the federal government. Story by Fahmida Y. Rashid for Decipher

Square’s Pushing Merchants to Use Its Prepaid Card
Square introduced the Square Card about a year ago, offering merchants instant access to their Square account balance through a prepaid debit card. The product mimics the successful Cash Card linked to the consumer-facing Cash App, but it’s for Square’s core merchant services. Square Card has kept its same value proposition for merchants since launch: instant access to your Square account balance, and a 2.75% rebate on purchases made with other Square merchants. But after a successful 2019, it looks like Square is going to get more aggressive in pushing merchants to sign up and use Square Card. Its first move is to raise the fee for Instant Deposit from 1% to 1.5%, a move it made on the consumer side in 2018. The move should push more merchants to sign up for Square Card and use it more often for less-expensive instant access to their funds. Story by Adam Levy for The Motley Fool

Many Millennials Are Drowning in Credit Card Debt
We constantly hear about millennials and student loan debt. But a 2019 study by Northwestern Mutual, finds that credit card debt is the biggest source of debt for one in four millennials. Credit card debt is the most expensive kind of debt. The interest rate is significantly higher than on a mortgage, car loan or student loan. The Northwestern Mutual survey found that two in 10 millennials don’t even know the interest rate they’re being charged on those unpaid balances, so they may not realize just how much that debt is costing them. For many millennials, credit card debt delays saving, so it needs to be paid off. Story by Herb Weisbaum for KOMO News

JPMorgan Chase Ranked Best Mobile Deposit User Experience
Cornerstone Advisors released the 2020 Mobile Deposit Benchmark Report which ranked the top 20 US-based banks on their mobile deposit user experience. According to the study, more than half (54%) of mobile banking customers used their mobile banking app’s check deposit capability in the past year. In addition, 52% said depositing a check was one of the most important mobile banking features. Two-thirds of respondents between the ages of 18 and 24 said that mobile deposit is now their preferred method for depositing paper checks. There’s a new leader at the top of the scoreboard: JPMorgan Chase. The bank knocked Capital One off the pedestal, which it sat atop for the previous two rankings. Story by Ron Shevlin for Forbes

The Cards Are in Capital One’s Favor
What’s in Capital One Financial’s quarterly wallet is often seen as an indicator for the state of consumer lending. That indicator looks like a green light at the moment. Against the trend seen from other banks, Capital One grew its net interest income by a relatively sharp 4% in the fourth quarter from the prior year. Net interest margin, a measure of lending’s core profitability, was under pressure by lower interest rates, but it only declined slightly, to 6.95%, or by 0.01 percentage point from a year earlier. Story by Telis Demos for The Wall Street Journal

History of the Credit Card: Origins, Laws and Timeline
You can’t discuss a history of credit cards without tagging the name Frank McNamara, not so widely-known known as the unofficial founder of the credit card. McNamara, the founder of Diners Club, the first card provider, created the credit card out of frustration after dining out and forgetting his wallet in 1949. Diners Club was able to attract 10,000 members alone in New York City that first year, and 20,000 new users altogether, all of whom who could count on a growing number of participating restaurants and hotels right out of the gate. The credit card was soon enshrined in Hollywood gold, as the first plastic credit cards “bewitched” Audrey Hepburn in the film classic “Breakfast at Tiffany’s.” Story by Brian O’Connell for The Street

Facial Recognition Hardware May Secure the Future of Mobile Commerce
As mobile banking security takes on new forms of authentication technology, a report by Juniper Research found that facial recognition will likely become the fastest-growing use of biometric hardware on smartphones. The report indicated that facial recognition will reach more than 800 million mobiles by the year 2024, up from an estimated 96 million during 2019. Story by David Jones for Mobile Payments Today

Overseas Merchants Actively Exploring Chinese Mobile Payments
An Alipay and Nielsen survey has revealed that overseas merchants are actively exploring digital operations via Chinese mobile payments to increase sales and customer traffic. This is demonstrated by nearly 78% of UK merchants surveyed saying they are likely to recommend Alipay to their peers, especially for utilizing digital operations to improve efficiency and turnover. The report finds that Chinese tourists’ usage of mobile payments while traveling overseas continues to increase, with Singapore, South Korea, Japan, Australia, France, Thailand, New Zealand, Canada, the UK, and the U.S. ranked as the “top 10 countries where Chinese tourists love to use mobile payments in 2019.”
Story in The Paypers

Mastercard Taps Marqeta for Fast Fintech Card Issuing in Europe
Mastercard is working with US card issuing platform Marqeta to provide a program for European fintechs to rapidly deploy new applications, with Prague-based payments app Twisto the first beneficiary. The project plans to provide a streamlined developer-friendly path for Mastercard issuers to build, test and launch digital-first card programs, providing instant access to a sandbox and fully published API documentation. Marqeta has built its reputation in the US, giving firms like Square, Doordash, Kabbage and Affirm the tools to quickly develop their card issuing programs. Story in Finextra

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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