Amazon is testing Venmo payments; Mastercard sees growth slowing due to inflation

Amazon lets customers pay with Venmo at checkout

Amazon is rolling out a new option for customers to pay with Venmo. Certain customers will see an option at checkout to pay for orders on Amazon and via the mobile app using PayPal’s popular payment service instead of their credit card. The option will be available to US customers by Black Friday. To use the new option, customers can add their Venmo as a payment method on the Amazon account page and then select Venmo at checkout. The move is the latest example of Amazon looking to expand its payment options for customers. Last year, Amazon partnered with Affirm to offer a buy now pay later feature for some purchases over $50. [CNN]

Mastercard spending growth slows as company watches inflation

Mastercard saw spending growth slow to its lowest level in more than a year as the company said it is monitoring the impact of inflation and other geopolitical risks on its business. Mastercard and its rivals have seen smaller spending increases as inflation rises and the Russian invasion of Ukraine stunts economic growth worldwide. Payment firms are also facing tough comparisons to a year ago, as purchase volumes soared as economies reopened after pandemic-related lockdowns. [Bloomberg]

Medical Debt Forces 42% of Americans to Make Only Their Minimum Credit Card Payments

It’s easy to assume that medical debt is a problem usually reserved for the uninsured. But actually, many people with health insurance, even good insurance, end up with medical debt. Between high deductibles and out-of-network costs, it’s easy enough to make thousands of dollars in health care bills. Meanwhile, medical debt can be more than just stressful. It can also affect other financial decisions you make. In a recent Discover survey, 36% of those with medical debt stopped saving emergency money because they needed to tackle health care bills, while 27% stopped paying other bills. And 42% were forced to use only their minimum monthly credit card payments because of medical debt. [The Motley Fool]

Synchrony Q3 arrears hint at consumer pressure from paycheck to paycheck

Synchrony Financial stands out from the other players because it offers the private label card that is usually preferred by consumers with relatively lower credit scores. The latest additional results from Synchrony show that the delinquency rate was 3.28% compared to 2.42% last year, and the 90-plus delinquency rate was 1.43% compared to 1.05% last year. What remains to be seen is how consumers are interacting with those balances, which were up 8% in Synchrony’s latest deposits to an average of $1,268 per account. [PYMNTS]

Many young people prefer ‘Buy now, pay later’ over credit cards. This is why

According to a PYMNTS survey, nearly 60% of consumers across generations say they would rather buy now and pay later than credit cards because of the convenience of fixed payments, easy approval process and lack of interest charges. One of the reasons why young people in particular are inclined to buy now and pay later is because many saw their parents struggle with credit card debt during the economic recession of 2008. Transparency about how long it takes to pay for a large purchase , is also critical for Generation Z and millennial consumers. [CNBC]

Cash has run out, credit cards are in after the pandemic

Real people carry credit cards. Non-humans, a subspecies of the American customer, are without. Today there are more of these non-humans, because one of the lasting effects of the Covid pandemic is that there is no more money and plastic in it. Many hotels, airlines and even coffee shops have gone cashless. Ostensibly this is because it is healthier. Frankly, they don’t want to be bothered. Cash is a problem; credit is easier. This made me wonder again about the legions of Americans who don’t have credit cards. If we have a recession, which now seems inevitable, there will be more people without credit and immobilized by the post-Covid reality of the plastic privileged world. Cash won’t save them. They are the bankers, a lesser order of our bourgeoisie. [The Post and Courier]

US consumer perseveres despite rising inflation and recession risk, credit card giants say:

According to credit card giants American Express and Bank of America, US consumers have shown a willingness to continue paying higher prices in the face of a sluggish economy that could plunge into recession. American Express said total customer spending was up 21% year over year, driven by growth in goods and services, as well as travel and entertainment. Travel demand is particularly resilient as Americans are making up for delayed travel due to the pandemic. Consumers are also spending money on food and entertainment after pandemic lockdowns are eased. American Express said the travel and entertainment segment saw spending rise 57% from a year ago, with volumes in international markets surpassing pre-pandemic levels for the first time in the third quarter. [CNBC]

How Neobanks helps consumers score game credits

About one in six Americans has a credit score of less than 619, according to the CFPB. Another 23% have a credit file that is too thin to score or no file at all. That puts them in a credit trap: To build credit, these consumers need someone to give them a line of credit with which to demonstrate good financial habits. But with such low scores, few lenders are willing to offer them anything. Neobanks says they can solve the problem with a new spin on secured credit cards. But regulators are already examining their offerings. [Protocol]

Financing the CFPB unconstitutional, court rules

A federal appeals court ruled that the US Consumer Financial Protection Bureau’s financing apparatus is unconstitutional, blaming a system Democrats designed to isolate the agency from demanding congressional credits. The New Orleans-based 5th Circuit Court of Appeals ruled that the independent funding of the CFPB through the Federal Reserve, rather than Congress-approved budgets, violated the principles of the separation of powers in the U.S. Constitution. [Reuters]

The number of unbanked Americans falls to its lowest level in more than a decade

The number of U.S. households that did not have a bank last year fell to its lowest level since 2009, a decline due in part to people opening accounts to get financial aid during the pandemic. About 4.5% of U.S. households, or 5.9 million, did not have a checking or savings account with a bank or credit union in 2021, a record low, according to a recent FDIC survey. About 45% of households that received a stimulus payment, unemployment benefit or other government support after the pandemic started in March 2020 said those funds helped them open an account. [USA Today]

Crypto Company Blockchain.com Issues Visa Debit Card

Visa opens its payment network to another major crypto company a day after reporting earnings that exceeded estimates. Released through the fintech platform Marqeta, this latest card from Blockchain.com comes for free and allows users to earn 1% back in crypto. The move follows a long-term trend of crypto firms working to make it easier for customers to use their digital asset investments to pay for goods and services in the real world. Initially rolled out to US customers with plans to expand to Europe early next year, Blockchain.com said its customer account-linked debit card already has 50,000 signups to its waiting list. [Yahoo Finance]

CFPB Addresses ‘Unwanted Data’ in Credit Reports

The CFPB recently issued an advisory to consumer reporting companies on their obligation to prevent obviously false “junk data” from appearing on consumer credit reports. The advisory states that companies should take steps to reliably detect and remove logically inconsistent data from consumer credit reports, such as information that is clearly impossible. [Consumer Finance Monitor]

Greenlight launches Family Cash Card, offers parents up to 3% cashback on daily purchases

Greenlight, the fintech company whose mission is to teach children about personal finance, has introduced a new credit card especially for parents. The Greenlight Family Cash Card allows parents to earn and save rewards for the future of their family by offering up to 3% cash back on all purchases and the ability to automatically invest rewards in stocks and ETFs, all with no annual fee. It originally launched in May with a waiting list, but is now available to the general public. [CNBC]

Inflation relief debit cards are being sent to Californians

Debit cards with inflation-lowering payments will start shipping to millions of Californians starting Monday and should arrive in mailboxes in the coming weeks to ease the pain of increased prices. The California “Middle Class Tax Refund” program aims to soften the blow of rising inflation with a one-time payment ranging from $400 to $1,050 for couples filing their 2020 income tax returns jointly and $200 to $700 for those who have submitted independently. [The Los Angeles Times]