Holiday sales are on track to grow as much as 11.5% over 2020, according to a projection by the National Retail Federation. About 30% of Americans said they overspent during the gift-giving season, according to a post-holiday survey by WalletHub. Although omicron drove a new wave of infections, 56%, said Covid did not affect their plans. For most shoppers, increasing their spending also meant relying more on credit cards or buy now, pay later financing to spread out their expenses. As a result, roughly 36% of consumers went into debt, owing an average of $1,249, according to a survey by LendingTree. [CNBC]
Who is really buying cryptocurrency?
GETTY
Crypto Use Rising, Most Will Use It for Mobile Purchases
More than a third of consumers between the age 18-54 own cryptocurrency according to a recent study by Cantaloupe, with people ages 18-34 most likely to own it (37%), and individuals 35-54 (33%) trailing only slightly. Further, 67% of those who own crypto are willing to consider using it for purchases if it were linked to a mobile wallet, with an additional 19% saying they would consider using crypto linked to a mobile wallet if it were easy. [Vending Times]
User Experience Reigns in Credit Card Decisions
A super-low interest rate might seem like the most tantalizing perk to dangle in front of would-be credit card holders, but research shows there are myriad other factors consumers take into consideration when deciding whether to use one card over another. According to new research, user experience benefits like cash-back rewards, data privacy and credit building tools are considered by 75% of consumers. The research indicated that 70% of those seeking a card considered data security a top priority, and 75% of active users that are also parents look for credit-building tools when considering a card. [PYMNTS]
The Data Around U.S. Credit Card Line Utilization
U.S. credit card lines, the amount that issuers underwrite for each open account, are at a historic high. In the latest numbers published by the Federal Reserve, total credit lines amount to $3.9 trillion. However, only 27% of these credit lines are in use, and $3 trillion is available in open credit. Note that line utilization is on the downswing, based on a 20.3% utilization rate. In contrast, the utilization rate in 2009 was 27.7% after credit card issuers began to contract credit lines during the Great Recession. [Payments Journal]
Best Travel Insurance Companies
By
Best Covid-19 Travel Insurance Plans
By
JPMorgan Chase Has Unleashed a Lawsuit Blitz on Credit Card Customers
After a nearly decade-long pause, Chase has resumed suing indebted customers. The bank is back to its old ways, say consumer lawyers. Starting in early 2020 and continuing to today, Chase has filed thousands of lawsuits against credit card customers who have fallen behind on their payments. Chase had stopped pursuing credit card lawsuits in 2011, in the wake of the last major economic downturn, after regulators found that the company was filing tens of thousands of flimsy suits, sometimes overstating what customers owed. Today, just as it did before running afoul of the CFPB, Chase is mass-producing affidavits from the same San Antonio office where low-level employees generated hundreds of thousands of affidavits in the past, according to defense attorneys and court documents. [ProPublica]
Bank Tech Trends to Watch in 2022
Bank technology initiatives this year will be driven by the need to make finance ultraconvenient for consumers and businesses. One manifestation of this is embedded banking, a version of the open banking movement started in Europe, where banks offer their services through all manner of companies that aren’t banks. Another is the effort banks are making at personalization, trying to deliver just-in-time advice to consumers to help them avert financial problems and take advantage of opportunities. And letting customers authorize themselves with a selfie and facial recognition is the ultimate way to provide security for couch potatoes. Banks and fintechs also will continue to try to become a trusted place for consumers and businesses to go for cryptocurrency services as the popularity of digital assets keeps growing. [American Banker]
