This Week In Credit Card News: Crypto’s Threat To Card Networks; Should Personal Finance Be Required In School?

A mid-February survey reveals that over two-thirds of respondents believe that a personal finance course should be a requirement to graduate from high school. On top of that number, another 26% say it should at least be offered as a high school elective. According to Next Gen Personal Finance, 21 states require at least some personal finance instruction as part of their high school curriculum, but only 10 states require a semester-long personal finance class for graduation. The survey also shows that most young adults don’t get their first credit card under parental guidance. Over 56% of survey respondents got their first credit card on their own either during college or after they graduated from high school.

This Is Why Visa, Mastercard, and American Express Are in Trouble

When we swipe those cards, credit card transactions cost merchants nearly 3% just to be completed. And even then, it can take days for the money to be deposited into their bank accounts. This is a direct cost that comes out of their bottom line, and most merchants have little choice in the matter. In just the last month, there’s been an advance on the Solana blockchain that could almost eliminate most of those credit card fees and replace them with blockchain transactions. Cryptocurrencies have long been discussed as a new way to make financial transactions, but most cryptocurrencies have high costs that make little sense for traditional transactions. Solana’s blockchain is different because it enables transactions that can be completed in just a few seconds for a fraction of a penny. No more days of waiting; merchants can be paid almost immediately.

Surging Use of Crypto Cards Warns Banks of a New Payments Disruption

Account openings of crypto-backed cards are outpacing traditional cards in the UK. Using Visa and Mastercard as the rails, several crypto platforms now enable consumers to make everyday purchases with cryptocurrency. Analysts say it’s a crucial step to making crypto a mainstream form of payment. While using cryptocurrency to make everyday purchases seemed like a far-fetched idea just a few years ago, it’s now a reality and several steps closer to becoming routine. Until recently, consumers could only spend crypto at a handful of niche cafes or extract cash at ATMs. Yet the tremendous growth in crypto wallets and interest in cryptocurrencies in general has led many to look to plastic to open new doors and support transactions.

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