The Kids Are Ditching Their Physical Wallets in Favor of Mobile Payments

Young people are increasingly favoring mobile payment apps over traditional payment methods. Marqeta surveyed 4,000 consumers across three continents, including 1,000 UK respondents, and found 61% feel confident enough with contactless payments to leave their wallet at home and just take their phone, a figure that rises to over three quarters for UK Gen Z respondents. Almost all (96%) UK consumers surveyed have used contactless in the last year. What’s more, 42% of UK respondents say it’s been so long since they used anything except contactless, they can’t even remember their PIN anymore, a figure that rises to 54% for those aged under 24. [Tech Radar]

How to Get Free Amazon Money Ahead of Prime Day with Amazon’s Gift Card Deal

Amazon Prime Day 2022 is slated for July, but one of the best Amazon deals is already live. Right now, through Friday, June 24, if you are a first-time Amazon gift-card buyer and spend $50 on Amazon gift cards, you’ll get a free $10 Amazon promotional credit with code USEGC222 at checkout. Then, if you reload the gift card with $100 or more, you can score another $10. [ET Online]

Biometric Remote Mobile Payments to Be Worth $1.2 Trillion Globally by 2027

Total transaction values for remote mobile payments authorized using biometric authentication technologies such as face or fingerprint recognition worldwide will reach $1.2 trillion by 2027 compared with $332 billion in 2022, according to a forecast by Juniper Research. The researchers also predict that transaction volumes for biometrically authenticated remote mobile payments worldwide will grow by 383% over the next five years to reach 39.5 billion by 2027. The implementation of strong customer authentication and the European Union’s Payment Services Directive II, along with mobile payment services provided by smartphone makers and other original equipment manufacturers such as Apple Pay, will be key drivers in the adoption of biometric mobile payments. [NFCW]

Missed Payments, Rising Interest Rates Put ‘Buy Now, Pay Later’ to the Test

“Buy now, pay later” companies promised a credit revolution that would change the way people pay for things. Rising delinquencies and a slowing economy are clouding that outlook. Payment plans that allow shoppers to split up the cost of things such as clothing, makeup and home appliances were all the rage last year. The companies behind the plans saw their valuations surge. Scores of retailers rushed to add them at checkout. [The Wall Street Journal]

Affirm Teams Up with Stripe as the BNPL Wars Intensify

Two fintech giants are partnering up. Affirm is making its buy now, pay later technology available to businesses that use Stripe’s payments tech. This means that a whole slew of companies that were not previously able to offer their customers the option to pay in installments, now can. The deal is significant for Affirm because Stripe has “millions” of customers. It processes hundreds of billions of dollars each year for “every size of business, from startups to Fortune 500s.” And this gives Affirm an opportunity to generate more revenue as it makes money in part on interest fees. For its part, Stripe is able to offer prospective, and current, customers more payment flexibility. [Tech Crunch]

Inflation Has Americans Turning to Loans, Credit Cards to Cope. Does It Pose Big Risks?

Consumer borrowing is surging as inflation hovers near 40-year highs and Americans resume pre-pandemic activities like traveling and dining out, posing risks for lower-income borrowers. A growing share of those cash-strapped households are behind on payments for car loans, credit cards and personal loans, a development that’s intensifying their angst and could prompt lenders to make fewer loans to that group. In April, bank credit card balances rose 14.2% from a year earlier, auto loans increased 7.5% and other consumer loans climbed 19%. The more worrisome development is that lower-income Americans are relying on credit cards and personal loans to make ends meet now that inflation has been soaring and Covid-related government assistance has run out. That’s happening just as the Fed is aggressively hiking interest rates for such borrowing to temper the price increases. [USA Today]

71% Say Rising Costs Have Affected Summer Vacation Plans

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A recent U.S. News & World Report survey shows that nearly three-fourths of Americans, ready to travel again but facing a shaky economy and high prices, have changed either their behavior or their travel budgets to make summer vacation a reality. About 22% have decreased their vacation budgets, and almost 21% of survey respondents say they’re decreasing the number of vacations they take this year. And another 16.9% say they’re cutting back in other areas to fund their summer vacation plans. It’s a bit alarming that almost one in four intends to borrow money for vacation, such as using a credit card and carrying a balance. [US News & World Report]

Google-Backed Startup Debuts Credit Card with Merchant Rewards

Tandym, a digital private-label credit card issuer, launched Wednesday backed by $60 million in venture capital funding, aiming to help retailers recoup the cost of accepting credit cards by funding merchants’ own loyalty programs. The Chicago-based startup enables online merchants to instantly issue virtual credit cards to customers who may earn 5% in rewards on future purchases. The concept addresses the common merchant complaint that the interchange fees that credit card networks collect typically go toward funding banks’ card rewards programs instead of retailers’ own rewards program. [American Banker]

United Airlines No Longer Accepts Credit or Debit Cards on Board

I recently flew on United Airlines and was shocked to learn that they no longer accept credit or debit cards on board. They don’t take cash, either, but that’s not particularly surprising. But United is taking the concept to the next level by refusing to accept cards or mobile payments for onboard purchases such as drinks and snacks. The only way to buy these items on most United flights is to preload a credit or debit card into your account. There’s also a trial program involving a PayPal QR code on select United flights. [Bankrate]

Chipotle Now Accepting Cryptocurrency Payments at US Locations

Fast-casual chain Chipotle Mexican Grill has begun accepting cryptocurrency payments through Flexa, a digital payments platform. Customers can pay for their burritos and other Tex-Mex favorites using Flexa at any Chipotle restaurant across the U.S. The Flexa platform supports 98 digital currencies, including bitcoin, ether and Solana’s SOL. Customers must download the Gemini or SPEDN app, which store digital assets, to use Flexa for in-store purchases. To celebrate its new payment options, Chipotle is giving 10% off to customers who make their next purchase with any digital currency in a Flexa-enabled app. [Coin Desk]

Marqeta Partners with Klarna for Transparent Alternative to Traditional Credit Cards

Marqeta will work with Klarna, a global retail bank, payments and shopping service, to power its new Klarna Card which will bring the company’s popular “Pay in 4” service to a physical Visa card. It will enable consumers to pay over time in four equal, interest-free payments for any in-store or online purchase. The Klarna Card is now available to U.S. consumers and it started using Marqeta’s modern card issuing platform in U.S. in 2018, to power virtual cards across multiple product offerings. This comes amid Marqeta and Klarna expanding their partnership into 13 new European markets in December 2021. [Seeking Alpha]

Interested in a Crypto Credit Card? Here’s What You’ll Be Missing Out On

Crypto credit cards are quickly becoming readily available to U.S. consumers, and their easy access to crypto may hold appeal for both existing crypto enthusiasts and crypto-curious investors looking to get into the market. But even as these cards are becoming more common, they leave a lot to be desired when it comes to rewards value. Many offer only lukewarm rewards rates, and with the volatility of cryptocurrency, there’s big potential opportunity cost in forgoing guaranteed points or cash back redemptions that come with regular old rewards cards. Before you decide to open a crypto credit card, make sure you understand how crypto credit cards work, and what risks you may be subjecting your wallet to. [NextAdvisor]

Protecting Banking Customers from Themselves

Social engineering scams around the world are growing in number. Most of these scams are carried out over the phone, with losses to American consumers estimated at nearly $30 billion. A significant percentage of account takeover incidents involved some form of social engineering voice scam. According to the Federal Trade Commission, impostor scams were the number one type of fraud reported by consumers in 2020. Behavioral biometrics plays a crucial role in helping financial institutions identify and stop social engineering scams. Even when a genuine user is making the payment, subtle changes in digital behavior when acting under the influence of a cybercriminal can suggest a social engineering scam may be at play. Behavioral insights obtained from data collected can help build a picture of a user’s typical online habits to help financial institutions detect unusual behavior when they are reacting to a challenge or a demand during a digital session. [BAI]

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