Mastercard Partners with Caregiver to Launch Debit Card for People Living with Dementia
A British woman who acts as caregiver to her parents has launched a debit card to help people living with dementia and their families take back control of their spending with Mastercard’s backing. Both of Jayne Sibley’s parents are living with Alzheimer’s, and after noticing her mother’s condition worsen and seeing her start to mismanage her money, Sibley saw a need to protect both her mother’s everyday money and her independence. She wanted to empower her mother to spend her own money, by herself, within safe limits. She created Sibstar, a debit card app that allows people living with dementia to access and spend their money while also keeping it safe by managing how and where that money can be used through the app. Sibstar describes itself as a “profit with a purpose business”, and donates 7.5% of its net profit to the Alzheimer’s Society. [AltFi]
Consumers are still spending freely with their credit cards despite record inflation
Wells Fargo and Citi Customers Are Still Spending
If everyone feels so miserable, why do they seem to be out having a good time? This is the puzzle in comparing US second-quarter bank results with terrible readings in recent consumer sentiment surveys. Citigroup’s customers are spending freely on restaurants and holidays, which drove credit card volumes up 18% compared with those in the period a year earlier. Wells Fargo similarly called out travel and entertainment in the spending growth on cards in its results. JPMorgan Chase said much the same the day before. Some discretionary spending is down: Wells Fargo said debit card holders were buying fewer clothes and doing less home improvement. [Bloomberg]
For U.S. Card Issuers, Recession Worries May Foreshadow a Good Quarter
U.S. card companies are likely to strike a cautious tone in their quarterly results as rising prices imperil strong spending by Americans stepping out of their pandemic shells. While they have not so far cut back on buying household appliances or even big ticket purchases like cars, a vacation has not been on the cards for many, according to a survey from the Conference Board. Record high gasoline prices and expensive airfare could slow consumer spending on travel, a big source of revenue for Mastercard, Visa and America Express. For now, Wall Street analysts are not much worried about that. [Reuters]
Two-Thirds of U.S. Consumers Filed Credit Card Chargebacks in the Past Year
Credit card chargebacks are reaching crisis levels for retailers on both sides of the Atlantic, according to a major new survey of US and UK consumers published today by Justt, a chargeback mitigation company. Two-thirds of US shoppers and 44% of British shoppers have filed chargebacks in the past 12 months, and many have filed multiple chargebacks, part of a global trend that is eating into retailers’ revenues and damaging customer relationships. The survey shows that both UK and US consumers now routinely rely on chargebacks to vent dissatisfaction with the products and services they receive. American shoppers were markedly more aggressive than British consumers in their use of chargebacks across all industry verticals, and were also more likely to file serial chargebacks. [Loss Prevention Media]
Chase to Launch Instacart Co-Branded Credit Card
Since June 2020, Chase and Instacart have partnered to offer benefits to Chase cardholders, including complimentary Instacart Express membership and discounts. The bank and food delivery service have now announced that they would be launching an Instacart co-branded credit card. The Instacart Mastercard credit card will be the first co-branded card offered by a food delivery service. The card will give consumers the ability to earn accelerated points on Instacart purchases and give several other benefits, perks and savings. [CNBC]
GoHenry Acquires Pixpay as Child Banking and Teen Debit Cards Take Europe by Storm
Child-focused fintech services—-apps and banks designed to educate and teach children about finance—-are on a mission to educate the masses from a very young age. And they’re growing fast. GoHenry is at the cutting edge of this emerging sector, having more than doubled its revenue during the pandemic to $42 million in 2021 and amassed a consumer base of over 2 million in the UK and US. Now, the firm is hoping to conquer continental Europe with its acquisition of Pixpay, a leader in teen banking in France and Spain with nearly 200,000 members. [Euro News]
Buy Now, Pay Later Refunds on Apps Like Afterpay, Affirm, Klarna Frustrate Consumers
Buy now, pay later apps have risen in popularity, accounting for $142 billion in e-commerce transactions last year. Some customers have reported that it can be difficult to get a refund if something goes wrong with the purchase. Consumer advocates urge more protection for buyers in the event of fraud or canceled purchases. [USA Today]
Google Wallet is Now Available Globally
In May, during its annual Google I/O conference, Google said it would combine Google Pay with several features scattered across other apps into a brand new app: Google Wallet. Now, Google Wallet is officially live and available to download in 39 countries, though it will work a little differently in some markets. Google Wallet combines payments with the ability to save vaccine cards, transit and event tickets, and boarding and loyalty passes. The features are similar to what Apple offers with its Wallet, but Google’s version has certain advantages, such as deep integration with other Google apps like Maps. [Mashable]
World’s Largest Banks Caught Grow-vid During the Pandemic
The biggest banks in the world have emerged from the Covid-19 pandemic stronger and more resilient, and have now built up their Tier 1 capital to the equivalent of five times the total assets of the U.S. credit union community. According to The Banker’s Top 1000 World Banks ranking, the 1,000 largest banks’ aggregate Tier 1 capital, a key measure of banking strength, has surpassed $10 trillion for the first time in the history of the rankings. [CU Today]
Visa Changes Chargeback Dispute Program
Visa is changing how it deals with first-party fraud, or intentional cardholder misuse. Under the new plan, taking effect on April 15, 2023, Visa said it will let merchants provide additional data to prove that a disputed transaction was indeed valid, a step that is aimed at speeding up resolutions while making it easier for merchants to get a case dismissed. Forms of proof that a merchant can provide include evidence of a similar purchase by the same customer, login credentials or proof of product use. [PYMNTS]
Apple Pay Illegally Profited by Walling Off Contactless Payments, Lawsuit Alleges
A proposed class-action lawsuit filed on behalf of payment card issuers accuses Apple of illegally profiting from Apple Pay and breaking antitrust laws. Iowa’s Affinity Credit Union is listed as the plaintiff in the complaint. The lawsuit alleges that by restricting contactless payments on iOS devices to Apple Pay and charging payment card issuers fees to use the mobile wallet, the iPhone maker is engaging in anti-competitive behavior. [Engadget]
Next Time You Swipe Your Credit Card, Thank This Legend
Dee Hock, the visionary founder of Visa Inc. who built a system for modern electronic payments infrastructure that transformed how money changes hands, died this weekend at 93. As the licensees complained about fraud issues, slow authorization processes and general disorganization, Hock looked to bring structure to the BankAmericard program. In the late 1960s, he came to helm National BankAmericard, later known as Visa, which brought together Bank of America and the licensees through a cooperative. The goal was not only to improve the financial fortunes of card programs but also to make it so that people would actually want to use the cards and merchants would want to accept them. [MarketWatch]