LowCards.com Weekly Credit Card Update–July 19, 2019

LowCards.com Weekly Credit Card Update–July 19, 2019

July 19, 2019         Written By Bill Hardekopf

The Mobile Experience Now More Important Than In-Person Banking
People are increasingly receptive to obtaining financial services from digital-only providers, including the big-tech firms. Fewer than one in five consider an in-person experience to be the most important benefit of their banking relationship. A good mobile app and even no-fee ATMs rank higher. Story by Bill Streeter for The Financial Brand

JPMorgan Chase, Wells Fargo, Citi Improved in Q2 Credit Card Sales
Issuing banks’ Q2 earnings revealed small improvements in credit card spend. JPMorgan Chase reported its noncommercial credit card sales volume grew 10.6% year-over-year (YoY) to reach $192.5 billion. Wells Fargo announced that its consumer card portfolio’s purchase volume totaled $22.5 billion, increasing 5.7% YoY. Citi’s branded card purchase sales reached $93 million, jumping 8% YoY. Issuers’ small improvements in credit card sales volume line up with US retail’s performance, which is also making small steps in the right direction. In June, US retail sales rose 3.4% YoY after May’s grew 2.9% YoY. Story by Daniel Keyes for Business Insider

Americans With Credit Card Debt Refuse To Cut Back On Travel
Most Americans saddled with credit card debt aren’t willing to substantially cut back their travel expenses, a new CreditCards.com survey finds. Seven of every 10 adults who have credit card debt say they would be unwilling to reduce leisure travel expenses by 50%. Credit card debtors are more willing to reduce their dining and food takeout expenses than their travel expenses. The survey finds 48% of credit card debtors surveyed are willing to cut their dining and takeout expenses in half. Story by Gary Stoller for Forbes

Amazon Secured Card Move Throws Spotlight on Controversial Niche
Secured credit cards backed by a consumer’s own deposits have been a small element of the consumer lending business, though interest has grown in recent years. Now that Synchrony and Amazon have unveiled a major secured card expansion of the ecommerce site’s Store Card, will more banks and credit unions seek a piece of this territory? Story by Steve Cocheo for The Financial Brand

Debit Cards Set New Market Share Record
For the first time since 2011, debit cards gained market share in 2018 in terms of U.S. purchase volume, according to new data from The Nilson Report. Debit cards accounted for 40% of purchase volume in 2018. Credit cards were 54.9% of all purchase volume, down from 55.07% in 2017. American Express was the largest card issuer in terms of credit card purchase volume. Wells Fargo was the largest debit issuer, and The Bancorp Bank was the largest issuer of prepaid cards, which accounted for about 5% of total purchase volume in the United States in 2018. Story by Tina Orem for Credit Union Times

Visa, Mastercard Land Multiple Partnerships to Steer Gig Payments
Fintech startups have been a natural fit for the gig economy, leading Visa and Mastercard to seek them out as partners to maintain relevance. Mastercard, for example has just signed a partnership with Evolve Bank & Trust to use Mastercard Send for interest-free pay advances to hourly and gig workers. The move is an attempt to compete with payday advances as well as serve the disparate payroll needs of contractors. The card brand cited internal research that found U.S. gig workers received $236 billion through pay advances in 2018, as well as research from McKinsey that found 27% of workers in the U.S. are now engaged in an independent or alternative work arrangement as their primary job. Story by John Adams for Payments Source

American Express Just Announced a New Credit Card for Small Businesses
American Express announced today that it’s releasing a new credit card for small businesses, and the included perks, rewards and features make the card worth considering. The new American Express Blue Business Cash Card is a cash-back credit card that comes with no annual fee, a 0% introductory APR period and opportunities to expand your credit spending limit. Key card features include: no annual fee, 2% cash back on up to $50,000 in eligible purchases (1% after that), and the ability to manage cash flow with “Expanded Buying Power,” a feature that allows you to make a limited number of purchases above your credit limit if you qualify. Story by Anna Hecht for CNBC

LG Faces Uphill Climb to Make a Splash in US Mobile Wallet Space
LG made its long anticipated launch into the U.S. market for mobile wallets with the launch of LG Pay, but this event raises questions about what impact it will make in the U.S., which continues to trail key overseas countries in terms of market penetration. The LG Pay wallet, like other contactless payment systems, will work with widely used NFC readers as well as a wireless magnetic communications at magnetic stripe terminals, which are still widely used in the U.S. However, analysts see LG facing an uphill battle to grow share in the U.S., mobile wallet space. Story by David Jones for Mobile Payments Today

Why 70% of Healthcare Orgs Have Suffered Data Breaches
With digital transformation initiatives pervading the healthcare industry, many are facing data breaches as a result, according to a new report. The majority (70%) of US healthcare organizations surveyed said they’ve experienced a data breach, with a third reporting one occurring in the past year alone. All healthcare organizations (100%) reported collecting, storing, or sharing sensitive data with digital transformation technologies, but 38% or less are successfully encrypting their data along the way. Story by Macy Bayern for Tech Republic

Sprint Customer Accounts Breached by Hackers
Sprint has confirmed a data breach, telling customers that hackers broke into their accounts through a Samsung website. The hack occurred June 22, Sprint told its customers in a letter, and included details like first and last name, billing address, phone number, subscriber ID, account number, device type, device ID, monthly charges, account creation date, upgrade eligibility and any add-on services. It occurred via the Samsung “add a line” website. Story by Corinne Reichert for CNet

Wells Fargo Sued for Discrimination by DACA Migrant Who Was Denied Auto Loan
Wells Fargo was hit with another claim of discrimination Tuesday when an immigrant who was denied an auto loan accused the troubled bank of withholding credit from migrants who live and work legally in the United States under the DACA program. In a lawsuit filed in San Francisco federal court, lawyers for the would-be borrower said Wells Fargo is illegally denying auto loans to non-U.S. citizens who would otherwise qualify for them and also failed to provide him with an accurate written explanation for the denial, as the law requires. The suit seeks class-action status on behalf of all bank customers in DACA, the Deferred Action for Childhood Arrivals program, who applied for auto loans. Story by Bob Egelko for the San Francisco Chronicle

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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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