The open-loop commercial prepaid market is entering a more consequential phase. What began as a practical way to control spend and simplify disbursements has evolved into a flexible payment tool used across payroll, incentives, travel, and B2B use cases. As businesses look for faster, more transparent ways to move money, open-loop prepaid programs are gaining traction for their ability to operate across established card networks while offering tighter controls than traditional credit. At the same time, issuers, program managers, and fintech partners are reshaping the space with embedded features, real-time funding options, and better data visibility.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2026 State of the Industry: Commercial Prepaid Cards

2025 U.S. Open-Loop Commercial Prepaid Loads (In Billions of U.S. Dollars)

• $98 – Government open loop
• $78 – HSA/FSA
• $34 – Insurance
• $22 – Consumer incentives

Source: Javelin Strategy & Research

About Report

Growth in the commercial prepaid market is expected to be uneven over the next five years, with particularly strong potential in non-government segments such as healthcare benefits, incentive programs, and various disbursement use cases.

In its latest installment of an ongoing prepaid trends series, Javelin Strategy & Research examines the commercial prepaid landscape across both business-to-business and government applications. Although prepaid solutions still make up a relatively small portion of overall commercial payments, they present a meaningful opportunity for expansion. These products can serve alongside traditional postpaid options or, in some cases, replace them entirely. With a stable foundation already in place, commercial prepaid is well positioned to support emerging use cases and extend its reach into new areas of the market.

The post Top 4 Open-Loop Commercial Prepaid Loads appeared first on PaymentsJournal.

Co-branded credit cards are a mainstay in today’s payments landscape, but how many do consumers actually hold? Recent data shows a wide range of engagement: just over half of cardholders stick with a single co-branded card, while a notable share carry multiple, with some managing portfolios of six or more. This distribution highlights differing approaches to brand loyalty, rewards optimization, and credit usage. Examining how many co-branded cards consumers own offers a useful lens into how deeply these partnerships resonate and how actively consumers are leveraging them in their everyday spending.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Card Databook 2026

Co-Branded Credit Card Ownership Distribution

• 52% of those with one card
• 19% of those with 2 cards
• 18% of those with 3-5 cards
• 12% of those with 6 or more cards

Source: Javelin Strategy & Research, North American PaymentsInsights 2025

About Report

The credit card industry has continued its upward trajectory despite earlier concerns that growth might plateau. In 2025, purchase volume climbed to $1.28 trillion, reinforcing cards as the preferred payment method for many consumers. At the same time, certain signals warrant attention, including declining personal savings rates that may point to heavier reliance on credit, as well as potential regulatory changes that could affect the sector’s future.

This annual report from Javelin Strategy & Research provides a comprehensive look at the current landscape. It explores how consumers across the United States are using credit cards, with detailed insights into demographic trends and key performance indicators to help gauge the market’s direction.

The post How Many Co-Branded Credit Cards Do Consumers Really Carry? appeared first on PaymentsJournal.

Economic conditions often play a major role in how consumers manage credit. Changes in interest rates, inflation, and household finances can influence when people decide to apply for a new credit card. Whether consumers are looking for better rewards, lower borrowing costs, or more financial flexibility, broader economic trends help shape those decisions.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Card Databook 2026

Important Economic Factors in the Decision to Apply for a New Credit Card

• 73% – No annual fee
• 67% – An attractive points/rewards program
• 64% – The card had strong fraud protection features
• 63% – Good credit line
• 58% – Low APR (interest rate)

About Report

Credit card usage in the United States continues to expand, even as some observers have questioned whether the market was nearing saturation. In 2025, total purchase volume climbed to $1.28 trillion, reinforcing credit cards’ position as the most widely used payment method among consumers. At the same time, several indicators suggest areas to watch, including persistently low personal savings rates that may signal heavier dependence on credit, as well as potential regulatory proposals that could affect the industry if passed.

This annual report from Javelin Strategy & Research provides a comprehensive look at the U.S. credit card landscape. It analyzes how consumers are using credit cards today and examines trends across key demographic groups and market indicators to offer a clear picture of the industry’s current state.

The post Top 5 Economic Factors That Drive New Credit Card Applications appeared first on PaymentsJournal.

Prepaid cards are used for many different reasons, from everyday spending to gifts and financial management. Looking at the types of prepaid cards people purchase, reload, or receive can reveal how consumers actually use them in practice. Some cards are bought for personal budgeting, others are given as gifts or incentives, and many serve as practical tools for people who prefer alternatives to traditional bank accounts.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2026 Prepaid Payments Data Book

Prepaid Cards Purchased, Reloaded, or Received in the Past 12 Months

• 72% – Retailer-specific gift card
• 50% – General-purpose non-reloadable prepaid card
• 29% – General-purpose reloadable prepaid card
• 25% – Multi-retailer gift card

Source: Javelin Strategy & Research

About Report

Prepaid card programs continue to expand across multiple sectors, reinforcing their role as an important component of the payments ecosystem. Over the next five years, several prepaid segments are expected to experience steady growth, with many categories projected to achieve annual increases of around 5% or more. Certain areas—including gift cards, gaming-related payments, cash-access alternatives, and commercial incentive programs—are forecast to grow even faster, averaging roughly 8% annually as adoption increases across consumer and business use cases.

Although prepaid products are commonly associated with consumer spending, commercial and government programs account for significant load value and remain an important part of the market. Government-funded programs continue to represent a large share of prepaid volume, though their growth is expected to remain relatively modest compared with other segments. Policy changes, federal funding adjustments, and cost-of-living increases tied to programs such as Social Security and nutritional assistance may influence growth patterns across these categories.

The post Top 4 Prepaid Cards Purchased, Reloaded, or Received appeared first on PaymentsJournal.

General-purpose reloadable cards play an important role in the prepaid ecosystem, but continued usage is not guaranteed. While many consumers adopt these products for budgeting, convenience, or access to digital payments, a range of factors can influence whether they keep using them over time. Understanding why consumers discontinue use offers valuable insight for issuers, program managers, and payment providers looking to improve retention. The latest data highlights the primary reasons cardholders step away from general-purpose reloadable cards.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2025 General-Purpose Reloadable Card Scorecard

Top 4 Reasons for Discontinuing Use of General-Purpose Reloadable Cards

• 38% – Reloading it wasn’t convenient
• 25% – The fees were too high
• 13% – I lost it
• 13% – I was able to open a bank account with a debit card instead

Source: Javelin Strategy & Research

About Report

The 2025 General Purpose Reloadable Card Scorecard examines the competitive landscape of the GPR market through a consumer-focused lens. As one of the most significant segments within prepaid payments, general-purpose reloadable cards reached $255 billion in total load volume in 2024 and are projected to expand at an annual growth rate of roughly 8%, according to Javelin Strategy & Research. These products serve diverse purposes, functioning as an alternative for consumers without access to traditional credit or debit, a budgeting tool for everyday expenses, a gateway to peer-to-peer payments, and in some cases a loyalty driver for retailers.

Javelin’s research explores how consumers evaluate reloadable cards, identifying cost, security, accessibility, and digital functionality as the most influential factors shaping satisfaction and continued use.

In the 2025 rankings, the Regions Bank Now Card earned top overall recognition among 16 widely used programs. While it did not lead in any single scoring category, its consistently high performance across all segments secured its position at the top. The Cash App Card and GO2bank Card followed closely, each demonstrating strong overall results despite not finishing first in individual categories. Notably, the top three programs reflect distinct market approaches, representing a traditional bank-sponsored offering, a peer-to-peer platform-backed card, and a retail-focused GPR product.

The evaluation framework assesses 55 separate attributes grouped into three weighted categories: Ongoing Experience, which accounts for half of the total score, and Cost as well as Additional Benefits and Features, each representing 25% of the final rating.

The post Why Do Consumers Stop Using General-Purpose Reloadable Cards? appeared first on PaymentsJournal.

Consumer demand for reloadable prepaid cards has shifted in recent years as payment preferences continue to evolve. From budgeting tools to digital spending options, these products serve a range of financial needs. But how strong is purchase intent today?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 22nd Annual U.S. Open-Loop Prepaid Card Market Forecast, 2025-2029

Consumer Intent With Regard to Purchasing Reloadable Prepaid Card Products, 2025

• 26%- More likely to purchase
• 41% – Purchases will stay the same
• 11% – Less likely to purchase
• 15% – Will not purchase any reloadable prepaid cards
• 8% – Don’t know

Source: Javelin Strategy & Research

About Report

Javelin Strategy & Research is continuing its analysis of developments across the open-loop prepaid sector. The firm expects solid expansion across most major prepaid segments, particularly general-purpose reloadable cards, payroll and government benefit cards, and business or expense-related products. As with prior forecasts, broader economic conditions remain a key factor shaping performance, with growth measured against overall economic activity.

Policy changes, program administration improvements, and benefit enhancements are supporting certain prepaid categories, especially general-purpose and benefit cards. These products can serve as alternatives to higher-cost credit or to healthcare spending that offers fewer tax advantages. At the same time, wider macroeconomic pressures, including political uncertainty and smaller cost-of-living increases, are tempering growth in areas such as Temporary Assistance for Needy Families and campus card programs.

Separate consumer research from Javelin indicates that U.S. consumers continue to view prepaid products favorably. Usage levels remain strong, load activity is steady, and purchase intent is trending upward. Spending activity is particularly concentrated in high-volume categories, including gift purchases and cards used for personal spending.

The post How Likely Are Consumers to Buy Reloadable Prepaid Cards? appeared first on PaymentsJournal.

Credit scores play a quiet but powerful role in financial life, influencing everything from loan approvals to interest rates and insurance costs. While most people know whether their credit is “good” or “bad,” fewer understand how credit scores are spread across the population. Looking at these score ranges helps put individual credit profiles into context and shows how common, or rare, certain credit situations really are.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Evolutions in Secured Cards: Not Ready for Traditional Lenders

Number of People in Various Credit Scoring Segments, in Millions (2025)

• 7.0 – No credit score
• 37.9 – Poor (300-579)
• 39.8 – Fair (580-669)
• 54.5 – Good (670-739)
• 73.4 – Very Good (740-799)
• 61.4 – Exceptional (800-850)

Source: American Banker, FICO

About Report

A new type of fintech payment card is reshaping the traditional secured credit card model. Rather than asking consumers with limited or damaged credit histories to deposit funds as collateral, these products link a credit card directly to a checking-style account. When the card is used, the transaction amount is automatically pulled from the connected deposit account, effectively settling the balance right away. These credit-building cards operate on the Visa and Mastercard networks and are not offered through American Express or Discover, which issue cards directly to consumers.

From a regulatory standpoint, this structure raises open questions. Because payments are automatically covered through the linked deposit account, the cardholder is not actively managing repayment in the same way as with a standard credit card. Financial institutions have also flagged concerns around merchant impact, since transactions are processed over credit card networks with higher interchange fees rather than through debit rails that are subject to stricter pricing limits.

The post Where Do Consumers Fall Across Credit Score Ranges? appeared first on PaymentsJournal.

Gift cards have become a go-to choice for consumers who want something flexible, convenient, and easy to personalize. But where people choose to spend those cards says a lot about what they value and how they shop. From everyday essentials to entertainment and experiences, certain categories consistently rise to the top because they fit real needs and lifestyles.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 22nd Annual U.S. Closed-Loop Prepaid Card Market Forecast, 2025-2029

Top Consumer Gift Card Purchase Categories

• 43% – Mass merchandisers (Walmart, Target, etc.)
• 41% – Online-only merchandise retailers (Amazon, eBay, etc.)
• 34% – Fast-food/quick-service restaurants (McDonald’s, Panera Bread, etc.)
• 31% – Coffee/specialty food (Starbucks, Dunkin, etc.)
• 25% – Supermarkets/Grocery stores (Kroger, Publix, etc.)

Source: Javelin Strategy & Research

About Report

This report builds on Javelin Strategy & Research’s ongoing analysis of the closed-loop prepaid market, examining recent load activity alongside projected performance over the next five years. The overall outlook remains favorable, with the category expected to expand steadily. Segments such as in-store gifting and incentive programs are positioned for solid gains, while areas like nutrition assistance and prepaid mobile are projected to increase more modestly. Online gaming and gambling continue to be a notable growth driver, supported by broader legalization and strong consumer interest. Shifting economic pressures and policy decisions remain key variables, as higher everyday costs tend to support prepaid usage while lower levels of federal funding limit growth in certain programs.

Consumer attitudes toward closed-loop cards are also trending positive. Both purchasers and users in the U.S. indicate ongoing adoption, driven by increases in load amounts, a stable mix of gifting and personal use, and a balanced shift between digital and physical card formats. Together, these factors point to sustained relevance and gradual expansion across the market.

The post Top 5 Gift Card Purchase Categories appeared first on PaymentsJournal.

When money is tight, student loan holders are forced to make choices that rarely feel fair. Rent, groceries, credit cards, medical bills, and loan payments all compete for the same limited dollars, and something usually gives. For millions of borrowers, the question isn’t whether to pay their student loans, but where those loans fall on the list of financial priorities—and what gets sacrificed when they do.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Young Borrowers: Riskier Than Ever…and the Future of Credit Cards

Payment Priority Ranking by Holders of Student Loans

• 73% – Mortgage
• 70% – Auto loan
• 57% – Student loan
• 54% – Credit Card
• 49% – Personal loan
• 40% – BNPL

Source: Javelin Strategy & Research

About Report

Younger adults, especially those between 18 and 29, will shape the next phase of the credit card market, not older generations. That opportunity comes with real challenges. Compared with their parents and grandparents, these consumers are more likely to fall seriously behind on payments or end up in charge-off, making them a riskier segment for issuers. As a result, lenders face a balancing act: managing near-term risk while finding ways to support these customers as they move through adulthood and build financial stability.

This report from Javelin Strategy & Research examines how credit risk varies across age groups, tracks how card performance evolves over time, and explores how issuers can adapt their product design, messaging, and offers to better engage younger cardholders while protecting their portfolios.

The post What are the Payment Priorities of Student Loan Holders? appeared first on PaymentsJournal.

Cryptocurrency has been talked about as the future of money for more than a decade. But talk and everyday behavior are not the same thing. While headlines often focus on price swings and speculation, a quieter question matters more for payments: are consumers actually using crypto to pay for things?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Digital Money Comes to Payments, but the Crypto Has Disappeared

Percentage of U.S. Consumers Using Cryptocurrency to Make Any Type of Purchase

• Past 7 days – 13% of consumers have used cryptocurrency to make a purchase.
• Past 30 days – 13% of consumers have used cryptocurrency to make a purchase.
• Past 90 days – 8% of consumers have used cryptocurrency to make a purchase.
• Past 12 months – 3% of consumers have used cryptocurrency to make a purchase.
• More than 12 months ago – 3% of consumers have used cryptocurrency to make a purchase.
• Never – 59% of consumers have never used cryptocurrency to make a purchase.

Source: Javelin Strategy & Research, North American PaymentsInsights

About Report

Digital money is already part of the U.S. payments landscape, but it looks very different from what early cryptocurrency advocates imagined. The focus is shifting away from the term “cryptocurrency” itself and toward practical value transfer through digital assets, especially stablecoins. Adoption is accelerating on the commercial side, and over the next three to five years, blockchain-based tools are likely to be embedded across organizations of all sizes. For most employees and customers, that technology will operate quietly in the background. Digital money won’t feel new or novel. It will simply work.

This report from Javelin Strategy & Research examines how definitions of digital money are evolving, how payment infrastructure is being built to stay largely out of sight, and what that means for organizations evaluating real-world use cases for digital assets.

The post Are Consumers Paying with Cryptocurrency? appeared first on PaymentsJournal.

Artificial intelligence is changing how people work, but its adoption is not the same across every age group. Some generations are already folding AI and agentic tools into their daily routines, while others are only beginning to explore what these systems can do.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2025 Emerging Payments Survey: Agents Enter the Stage

Business Use of AI/Agentic Tools, by Age

• 22% – 18-24 year old users
• 27% – 25-34 year old users
• 31% – 35-44 year old users
• 21% – 45-54 year old users
• 10% – 55-64 year old users
• 4% – 65+ year old users

Source: Javelin Strategy & Research, 2025

About Report

AI tools and agentic systems are still in their early stages, yet Javelin Strategy & Research’s latest North American PaymentsInsights survey offers one of the first clear snapshots of how consumers are engaging with them. Adoption patterns are beginning to emerge, and while today’s tools will continue to evolve, one point stands out: people are already bringing AI into their routines or are willing to try it. Organizations across the payments space can use this momentum to shape smarter strategies and better understand the audiences they want to reach.

This report highlights the most meaningful findings, outlining how individuals use AI in both personal and professional settings and identifying the trends that signal what comes next. It clarifies what matters, filters out distractions, and presents practical steps stakeholders can take during this early growth phase.

The post What Generation Uses AI for Work-Related Tasks? appeared first on PaymentsJournal.

Consumers have more options than ever when it comes to general purpose reloadable prepaid cards, which makes understanding what truly matters essential. Before choosing a card, people want to know how it fits into everyday spending, how transparent the fees are, how easy it is to manage, and what protections or perks come with it.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2025 General-Purpose Reloadable Card Scorecard

Top 5 Features to Consumers in Choosing a General Purpose Reloadable Card

• 76% – Low ongoing fees
• 76% – Low cost to set up the card
• 75% – Convenient locations to reload the card
• 73% – Access to ATMs without additional fees
• 73% – Zero liability for fraud losses

Source: Javelin Strategy & Research

About Report

The 2025 General Purpose Reloadable Card Scorecard offers a fresh consumer-focused view of the GPR landscape and how major programs stack up. This segment remains one of the strongest areas in prepaid payments, reaching an estimated $255 billion in load volume in 2024 and maintaining steady annual growth of roughly 8%, based on Javelin Strategy & Research figures. The wide range of providers included in the analysis reflects the many roles GPR cards play. They give consumers without access to traditional banking products a way to participate in electronic payments, help people manage day-to-day expenses, support simple peer-to-peer transactions, and reinforce loyalty for certain retailers. The research also outlines what cardholders care about most, with fees, security, availability, and easy-to-use technology staying at the top of the list.

Regions Bank’s Now card earned the highest overall score among the 16 programs reviewed. While it did not take first place in any single category, its consistently strong performance placed it in the top tier across all three evaluated areas. Cash App and GO2bank followed in second and third place. Neither card led an individual category, but both delivered solid results across the scoring framework. Together, the top three offerings illustrate the different value models in the GPR market: a bank-issued card, a P2P-focused option, and a card aligned with a retail brand.

The post Top 5 Features For a General Purpose Reloadable Card appeared first on PaymentsJournal.

Credit card interest rates remain a key indicator of consumer borrowing conditions, especially when viewed alongside broader benchmarks such as the prime rate. As financial institutions balance risk, funding costs, and market dynamics, the relationship between these two measures offers important insight into how credit pricing evolves. Reviewing recent data helps clarify whether movements in the prime rate translate into shifts in credit card APRs and provides useful context for understanding trends in consumer credit overall.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Card Balance Transfers: A Consumer’s Opportunity and an Issuer’s Bet

Average U.S. Credit Card Interest Rate and Prime Rate, by Percentage

• 2021 – The interest rate was 14.61% with a prime rate of 3.25%
• 2022 – The interest rate was 15.13% with a prime rate of 4.00%
• 2023 – The interest rate was 20.84% with a prime rate of 8.25%
• 2024 – the interest rate was 21.51% with a prime rate of 8.50%
• 2025 – the interest rate was 21.16% with a prime rate of 7.50%

Source: Chase, Federal Reserve Bank, Javelin Strategy & Research estimates, 2025

About Report

Balance transfer promotions can offer meaningful advantages for both consumers and card issuers when used as intended. Borrowers gain temporary access to interest-free financing, while issuers collect an upfront fee—typically between 3% and 5%—that provides immediate revenue.

However, many consumers do not repay the transferred balance within the standard promotional period of roughly one to two years, resulting in the remaining amount shifting to the card’s regular APR. Although balance transfers have long been a staple of credit card portfolio strategy, institutions vary widely in how they manage these programs. This Javelin Strategy & Research analysis explores current practices at major issuers and highlights the unique challenges mid-sized and smaller banks face, given their more limited participation

The post Does the Prime Rate Impact Credit Card Interest Rates? appeared first on PaymentsJournal.

As open banking and account-to-account payments continue to reshape the payments landscape, more consumers are turning to Pay-By-Bank as a preferred method for completing transactions. This growing adoption reflects shifting priorities in how people manage their money—favoring speed, security, and control over traditional card-based options.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Shifting the Balance: How Consumers Are Using Bank Accounts Today

Reported Pay-By-Bank Usage Among Consumers, 2024-2025

• 40% – I have never used pay-by-bank before
• 28% – Recurring bill payments
• 26% – One-time bill payments
• 26% – Online purchases

About Report

Each year, Javelin Strategy & Research analyzes how consumers interact with different payment options, offering a comprehensive view of evolving financial habits. The 2025 survey sheds light on both emerging trends and consistent patterns in consumer payment behavior, helping debit professionals reassess their market outlook and strategic priorities for the year ahead.

While innovation often dominates industry headlines, much of the survey’s data highlights how steady consumer preferences remain over time. The study explores three central areas: how individuals access and use their checking (DDA) accounts, whether interest in real-time payments and other account-linked rails is gaining traction, and how peer-to-peer (P2P) payment activity continues to evolve in share and funding methods.

In an environment shaped by new technologies such as generative AI, agentic commerce, and alternative payment rails, it’s tempting to assume the market is shifting rapidly. Yet, Javelin’s 2025 findings reveal a different story—one of continuity. Despite new tools and innovations, consumers continue to show remarkable consistency in how they choose and execute payments, whether transacting in person, online, or through P2P channels.

The post Top 4 Reasons Consumers Choose Pay-By-Bank appeared first on PaymentsJournal.

Credit card companies often promote introductory offers to attract new customers—but who finds these deals most appealing? By looking at consumer interest across different income ranges, we can start to see patterns in how people respond to these promotions.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Card Acquisitions: An Intro to Introductory Offers

Interest in Credit Card Intro Offers Across Income Groups

• 52% of consumers making less than $50,000 desire intro offers.
• 58% of consumers making $50,000-$74,999 desire intro offers.
• 58% of consumers making $75,000-$99,999 desire intro offers.
• 57% of consumers making $100,000-$149,999 desire intro offers.
• 60% of consumers making more than $150,000 desire intro offers.

Source: Javelin North American PaymentsInsights, 2025

About Report

Between 2016 and 2025, the number of U.S. adults rose by just 10%—but credit card openings surged nearly five times faster. During that same window, consumers racked up over $360 billion in revolving credit card debt. Despite economic uncertainty, issuers continue to aggressively pursue growth, often sweetening the deal for new customers with limited-time offers. These upfront incentives—like welcome bonuses and temporary 0% APR—can jumpstart spending and boost account engagement.

While effective, these perks come at a cost, especially for premium and rewards-based cards. To manage the financial hit, issuers rely on specific accounting practices that allow them to spread out the expense of these offers across the expected lifespan of the account. This strategic approach contrasts with the immediate outlay required for traditional marketing spend. In this Javelin report, we explore the role of credit card accounting standards in enabling introductory promotions and how they support long-term acquisition strategies.

The post Is Desire for Credit Card Offers Driven by Income? appeared first on PaymentsJournal.

As businesses continue shifting toward digital payment solutions, Automated Clearing House (ACH) transactions have emerged as a dominant force in B2B payments. Known for their reliability, cost efficiency, and security, ACH payments are increasingly replacing paper checks and even some card-based transactions. But as technology evolves and real-time systems gain traction, the question arises—are ACH B2B payments still growing in value?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Real-Time Payments: Use Cases in Acquiring

ACH B2B Volume Growth, in Trillions of U.S. Dollars

• 2020 – $41.74
• 2021 – $49.79
• 2022 – $52.53
• 2023 – $54.20
• 2024 – $58.24

Source: Nacha.org

About Report

Emerging technologies often capture attention for their potential to redefine the way we work and transact—and the introduction of real-time, around-the-clock payment systems is no exception. Platforms such as The Clearing House’s RTP and the Federal Reserve’s FedNow are transforming expectations for speed and availability in financial transactions.

In traditional banking, “float”—the gap between sending and receiving funds—played a major role in managing cash flow. While electronic payments have already minimized that delay, the rise of real-time rails raises new questions about added efficiencies for merchants and acquirers. This Javelin report explores how instant payment capabilities are reshaping the acquiring landscape, examining key use cases, adoption challenges, and what lies ahead for faster payments in commerce.

The post Is the Value of ACH B2B Payments Growing? appeared first on PaymentsJournal.

Loan losses represent one of the most critical indicators of financial system health, and stress-testing scenarios provide a clear lens into how institutions might perform under adverse conditions. By examining data from regulatory and internal stress tests, analysts can gauge the resilience of banks and lenders to economic shocks, such as rising unemployment, interest rate fluctuations, or market downturns.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: DFAST: Tight Credit Card Risk Controls Ensure Bank Liquidity

Top 5 Loan Losses in Stress-Testing Conditions

• Credit cards: $157 billion
• Commercial and Industrial: $124 billion
• Other loans: $78 billion
• Commercial real estate: $52 billion
• Trading: $44 billion

Source: Federal Reserve, Javelin Strategy & Research, 2025

About Report

Leading financial institutions appear well-positioned to withstand a sharp economic downturn, according to findings from the 2025 Dodd-Frank stress testing cycle. While credit card portfolios remain the greatest source of potential losses, current assessments show that banks maintain strong liquidity buffers, with Common Equity Tier 1 ratios sufficient to manage risk exposure. Among major institutions, projected losses range from approximately 9.7% for American Express to as high as 23.4% for Capital One and Goldman Sachs. Because credit card lending represents nearly 40% of potential loan losses in a severe recession scenario, understanding how liquidity and credit risk intersect is critical for credit card portfolio managers.

A recent Javelin Strategy & Research report examines the 2025 stress test requirements for large bank holding companies and systemically important financial institutions. It highlights the growing influence of credit cards within the overall risk landscape and outlines key considerations for retail bankers managing operational and liquidity challenges. The report also details the methodology behind stress testing and its role in evaluating banks’ financial resilience.

The post Top 5 Loan Loss Segments appeared first on PaymentsJournal.

Digital IDs are quietly reshaping how we pay, prove, and protect—but most people don’t even know they exist. As governments and financial institutions push ahead with digital identity systems to streamline payments and combat fraud, a surprising gap is emerging: public awareness. In a world where verifying who you are is as important as what’s in your wallet, not knowing what a digital ID is—or how it works—could leave many consumers behind

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Digital ID Adoption Requires Digital ID Acceptance: How Payments Can Lead the Way.

Percentage of Consumers Indicating that Digital ID Is Available to Them

• 37% – Yes, used it
• 32% – Yes, plan to use
• 21% – No, but interested
• 10% – Yes, won’t use
• 9% – No, won’t use

Source: Javelin Strategy & Research, North American PaymentsInsights, 2024

About Report

Digital IDs are gaining ground in the U.S., with access approaching a major milestone: availability to more than half the population. As adoption accelerates domestically, the European Union’s mandated rollout offers a valuable case study in what to prioritize—and what to avoid—as digital identity systems mature.

This new report from Javelin Strategy & Research explores how digital ID is evolving in the U.S., analyzing issuance trends, usage patterns, and public sentiment. It outlines the key drivers of adoption and presents a framework for measuring progress—highlighting where the market stands today and where it’s headed next.

The post How Many People Know They Can Use a Digital ID? appeared first on PaymentsJournal.

Gift cards are the go-to gift when you’re out of time, out of ideas, or just want to keep it simple. But what actually drives people to buy them? New data shows that while holidays and birthdays remain the most common reasons, other occasions—from graduations to “just because” moments—are nearly as popular. In fact, gift card spending trends reveal a lot about how we celebrate, how we show appreciation, and how we avoid picking the wrong size.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2025 Prepaid Holiday Preview: Gift Cards Could Provide Safe Harbor

Percent of People Who Definitely Buy Gift Cards by Occasion

• 59% – Graduation
• 52% – Holidays
• 52% – Valentine’s Day
• 50% – Birthday
• 46% – Just Because
• 40% – Mother’s Day / Father’s Day

Source: Javelin Strategy & Research

About Report

Holiday retail forecasts for 2025 remain uncertain, with tariffs and ongoing economic volatility casting a shadow over consumer spending. Despite strong performance in the 2024 season, retailers are entering the new year with mixed expectations. Planning for the end-of-year rush is already underway, even as summer temperatures linger. Economic shifts in early 2025 could lead to unpredictable consumer behavior, including delayed or last-minute purchasing decisions. These shifts may ultimately favor the gift card market, as shoppers lean into flexible, future-facing gift options instead of physical goods—especially in an environment with fewer discounts and tighter budgets. The full gift card supply chain—from issuers and retailers to digital wallet providers—will need to be agile and ready to capture demand as it evolves.

Gift cards remain a consistently favored choice among both givers and recipients, across both open-loop and closed-loop formats. According to Javelin’s findings, the opportunity to position gift cards as a smarter alternative to tangible presents—or even competing card options—is still strong. Long-term success depends not only on the initial sale but also on the post-purchase experience. To build loyalty and brand affinity, gift card programs must deliver an engaging experience for the recipient that feels personal and rewarding.

The post Which Events Drive the Most Gift Card Purchases? appeared first on PaymentsJournal.

Most people carry at least one debit card, but the number in each wallet is growing. As banks, fintechs, and even retailers roll out their own branded cards, consumers are stacking up multiple debit options—sometimes tied to different accounts, sometimes to the same one. This shift raises questions about how people actually use these cards, whether they spread spending across them, or if a few end up collecting dust.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Consumer Debit Payment Choice: Understanding Debit Card User Preferences

Number of Debit Cards Owned by Consumers

• 59% of consumers own 1 card
• 21% of consumers own 2 cards
• 15% of consumers own 3-5 cards
• 6% of consumers own 6 or more debit cards

Source: North American PaymentsInsights, 2024

About Report

In today’s evolving payments market, debit continues to stand out as a reliable option, powering millions of day-to-day purchases. Shifting consumer habits—shaped by both economic pressures and rapid innovation—mean that banks, fintechs, and merchants must adapt quickly to stay aligned with customer expectations.

This report from Javelin Strategy & Research explores debit’s position across different payment scenarios, its performance relative to other payment methods, and the impact of new technology on how people use debit cards. It also outlines strategies for issuers and merchants to strengthen their connection with debit users through enhanced features, rewards, and forward-thinking solutions.

The post How Many Debit Cards do Consumers Own? appeared first on PaymentsJournal.

In recent years, the role of commercial checks in business payments has evolved significantly. While their overall use has declined, the value of individual check payments has increased markedly. This trend suggests that checks, though less common, continue to serve a specific function in high-value transactions. Their continued use often reflects long-standing financial practices, legacy systems, or business relationships that have yet to fully transition to digital payment methods.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Commercial Payments Factbook 

The Average Value of Commercial Checks

• In 2015, the average commercial check value was $2,438.
• In 2018, the average commercial check value was $2,938.
• In 2021, the average commercial check value was $3,601
• For 2024, the estimated average commercial check value is $4,533.

Source: Federal Reserve, Javelin Strategy and Research analysis

About Report

This report provides a detailed view of how $175 trillion in commercial payments flow through the U.S. economy. Organized by industry, it highlights which payment methods are most widely used, how economic shifts are influencing behavior, and where emerging options like Same Day ACH and virtual cards are gaining traction. Drawing from sources such as the Federal Reserve, IRS, and Census Bureau, the analysis offers reliable insight into the structure and direction of the commercial payments landscape.

Key benchmarks—including DPO, DSO, inventory days, and funding gaps—offer a clearer picture of liquidity pressures across sectors. The report also examines trends like the rising influence of fintechs and smaller banks, the expansion of commercial card use, and the impact of external factors like tariffs. Whether you’re focused on product development, market sizing, or go-to-market planning, this resource offers valuable guidance for navigating today’s business payments environment.

The post Is the Value of Commercial Checks on the Rise? appeared first on PaymentsJournal.

As digital wallets and contactless cards gain ground, the way consumers pay at physical stores is shifting fast. But which payment methods are actually winning at the checkout counter? What are the top payment preferences in brick-and-mortar locations, and what do today’s shoppers reach for first—is it tap of a phone, a chip-enabled card, or still, for some, good old-fashioned cash?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Surcharging on Card Transactions: In Search of Balance

Preference of Credit, Debit, Cash Usage by Consumers in Physical Locations in Past 12 Months, by Percentage

• 42% of consumers prefer major credit card usable anywhere.
• 28% of consumers prefer major debit card usable anywhere
• 14% of consumers prefer cash.

Source: North American PaymentsInsights, 2024

About Report

Charging customers extra for using a credit card—commonly referred to as surcharging—might seem like a practical way for merchants to recover processing fees. However, in many cases, the potential backlash outweighs the benefit. With more consumer-friendly payment options available and a growing emphasis on seamless checkout experiences, passing costs directly to shoppers can quickly become a liability.

A new report from Javelin Strategy & Research takes a close look at how surcharging is playing out in today’s market. It outlines the legal and operational risks merchants face, the obligations involved, and how different businesses are approaching this tactic. The report also compares two real-world surcharging strategies used by small businesses and highlights alternative ways to boost margins without turning customers off.

The post Top 3 Payment Preferences in Physical Locations appeared first on PaymentsJournal.

Small business credit cards aren’t just for covering day-to-day expenses—they’re strategic tools that can streamline operations, improve cash flow, and even build business credit. Whether it’s managing employee spending, earning rewards on regular purchases, or separating business and personal finances, these cards offer real advantages when used wisely.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Riffing on Tariffs: Now is the Time to Build Your Small Business Card Portfolio

Percentages of Where Small Business Cards Get Used

• 52% – Utilities
• 48% – Advertising and marketing
• 45% – Procurement
• 42% – Insurance
• 41% – Online services

Source: Javelin Small Business Payments Insights, Questions 26a and 26a1 (2025)

About Report

Small businesses play a critical role in driving the U.S. economy, yet many continue to grapple with cash flow challenges that threaten their long-term stability. With tariffs adding pressure and supply chains becoming less reliable, operating expenses have become harder to predict. These conditions highlight a growing demand for flexible financial solutions—creating a strategic opportunity for credit card issuers to deliver products that help small business owners manage uncertainty and maintain control.

The post Top 5 Use Cases for Small Business Credit Cards appeared first on PaymentsJournal.

The average American’s financial life is spread across a growing web of accounts—checking and savings at traditional banks, retirement and investment portfolios, credit cards, auto loans, mortgages, digital wallets, and even cryptocurrency exchanges. Each serves a different purpose, but together they paint a complex picture of how U.S. consumers earn, spend, save, borrow, and invest.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: ‘Disappearing’ Accounts and the Future of Payments

Types of Financial Accounts/Products at Banks, Credit Unions, or Other Financial Institutions

• 92% of U.S. consumers have a checking account.
• 77% of U.S. consumers have a savings account.
• 40% of U.S. consumers have a 401(k)/other employer-offered retirement account.
• 30% of U.S. consumers have a mortgage.
• 27% of U.S. consumers have an IRA/Roth IRA not affiliated with employer

Source: North American PaymentsInsights

About Report

The traditional concept of financial accounts—fixed containers for funds and credit within isolated systems—is rapidly evolving. As open banking and system interoperability gain traction, barriers between accounts are beginning to fall, enabling more fluid and flexible movement of money. This shift has the potential to empower aggregators with real-time visibility into consumers’ financial options at the point of transaction, helping identify the most efficient and cost-effective payment methods—online or in-store. But while the promise of seamless financial intelligence is compelling, it also introduces immediate and complex challenges for banks, fintechs, merchants, and consumers alike.

A recent report by Javelin Strategy & Research explores how emerging trends and technologies are reshaping the definition of a financial account. It dives into the growth of automated account aggregation, the changing expectations around fiduciary responsibility, and the practical hurdles that come with turning this vision into reality.

The post Which Financial Accounts Do Most Americans Use? appeared first on PaymentsJournal.

Americans are carrying more revolving debt than ever, and 2025 could push those numbers even higher. Credit card balances have ballooned as inflation eats into wages and borrowing costs stay stubbornly high. With economic uncertainty still looming, the big question is whether consumers will keep swiping—or start pulling back.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Seven Credit Card Warning Signs in 2025: Don’t Stop Lending, but Watch Out

U.S. Revolving Debt, Year-End Totals (in trillions of dollars)

• In 2022, the U.S. revolving debt total was $1,213 trillion.
• In 2023, the U.S. revolving debt total was $1,319 trillion.
• In 2024, the U.S. revolving debt total was $1,317 trillion.
• In 2025, the projected U.S. revolving debt total is $1,375 trillion.

Source: Federal Reserve, Javelin Strategy & Research projections

About Report

For credit card managers, navigating shifting risk indicators is a constant challenge. Today’s landscape sends conflicting signals: unemployment remains low, inflation has eased but is still elevated, and consumers are tightening their belts on nonessential purchases. Meanwhile, lender confidence is waning and delinquencies have climbed well above typical levels. The inevitability of a future recession only adds to the uncertainty.

In this new report from Javelin Strategy & Research, seven core metrics—revolving debt, consumer confidence, lending outlook, unemployment, inflation, delinquencies, and charge-offs—are analyzed in depth. The report also offers strategic guidance for credit managers looking to mitigate exposure and maintain portfolio health.

The post Will Revolving Debt Increase in 2025? appeared first on PaymentsJournal.

Digital wallets have become an integral part of the modern payments ecosystem, offering consumers a fast, convenient, and secure way to make transactions both online and in person. As mobile adoption increases and contactless payments gain traction, digital wallets are replacing traditional methods like cash and physical cards for many users.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2025 Digital Issuance Provider Scorecard

Top 4 Digital Wallets Used in the Past 12 Months

• 61% – PayPal
• 36% – Apple Pay
• 31% – Google Pay
• 29% – Cash App

Source: Javelin Strategy & Research North American PaymentsInsights, December 2024

About Report

Galileo earns the top spot in Javelin Strategy & Research’s first-ever Digital Issuance Provider Scorecard, recognized as the Best in Class among eight evaluated companies. Its robust Digital First platform—designed for flexibility, security, and scalability—set it apart from competitors by enabling innovation across the payments and financial services landscape. Thales and FIS followed closely, earning Overall Leader distinctions.

The evaluation forms part of Javelin’s broader research on debit payments, specifically within its Instant Issuance and Digital Issuance Provider series. This scorecard delivers a detailed comparison of offerings from Alviere, B4B Payments, CPI Card Group, Entrust, FIS, Fiserv, Galileo, and Thales. Each digital card issuance solution was measured against 25 criteria across three categories, using data supported by proprietary consumer survey research.

The post What Digital Wallets Are Consumers Using? appeared first on PaymentsJournal.

Pay-by-Bank is gaining traction as a fast, secure, and cost-effective alternative to traditional payment methods. By enabling direct transfers from a consumer’s bank account without relying on cards or third-party wallets, this method offers clear advantages for both merchants and customers. But where does it actually fit into real-world commerce?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Implementing Pay-By-Bank: A Guide for Merchants

Top 5 Scenarios for Using Pay-by-Bank

• 24% – One-time bill payments
• 21% – Recurring bill payments
• 16% – Subscriptions
• 9% – In-store purchases
• 6% – Ecommerce purchases

Source: North American PaymentInsights, December 2024

About Report

As digital payments evolve, businesses are exploring new ways to streamline transactions, cut expenses, and strengthen security. One approach gaining attention is pay-by-bank—a method that enables customers to transfer funds directly from their bank accounts, bypassing traditional card rails. Powered by open banking and real-time payment infrastructure, it presents a promising alternative to card payments, though it comes with its own set of complexities.

This report serves as a practical resource for merchants evaluating pay-by-bank. It outlines the core advantages, technical requirements, regulatory landscape, and potential obstacles. With clear guidance and actionable insights, the report equips merchants to make informed decisions and take confident steps toward adopting this emerging payment solution.

The post In What Scenarios Has Pay-by-Bank Been Used? appeared first on PaymentsJournal.

In today’s competitive marketplace, consumer incentives have become a key strategy for businesses aiming to attract and retain customers. From cashback offers and loyalty rewards to promotional discounts and rebates, companies are deploying a variety of incentive programs to influence purchasing behavior and drive engagement.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2025 State of the Industry: Commercial Prepaid Cards

Reasons for the Receipt of Consumer Incentive(s), by Percentage

• 45% – For participating in a survey
• 44% – Rewards program incentive
• 37% – From making a return
• 32% – Received it with a purchase
• 18% – As a rebate

Source: Javelin Strategy & Research

About Report

The commercial prepaid landscape is positioned for steady expansion, particularly in areas beyond government-funded programs. Sectors like healthcare, employee incentives, and private disbursement solutions are expected to play a larger role in driving this growth.

This analysis continues Javelin Strategy & Research’s ongoing exploration of prepaid trends in the commercial space. While prepaid solutions still account for a relatively modest portion of the overall commercial payments ecosystem, they serve specific functions that are not easily replaced by traditional postpaid alternatives. This consistent niche presence offers long-term reliability for providers focused on private-sector use cases. However, those operating in public-sector prepaid programs may encounter uncertainty as federal policy direction remains unsettled.

The post Top 5 Reasons Consumers Receive Incentives appeared first on PaymentsJournal.

Credit card issuers move billions of dollars in purchases every day, steering bank strategy, shaping consumer habits, and fueling economic activity. A small group of dominant players handles most of this volume, battling for market share in a space where size, speed, and customer retention drive success. Their scale isn’t just a status symbol—it’s the result of deep infrastructure, bold marketing, and the confidence of millions of cardholders.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Card Databook, Part 2: Balancing Risk and Reward in a Resilient Economy

Largest Issuers by Credit Card Purchase Volume, 2023 (in Billions of Dollars)

• JP Morgan Chase – $1,164
• American Express – $1,127
• Capital One – $606
• Citi – $592

Source: Discover investor presentation; company financial reports (2024)

About Report

The U.S. consumer credit card market continues to perform well for issuers, but underlying trends signal the need for careful oversight. While cards remain a favored payment method among consumers, profit growth is beginning to taper off, and there’s a noticeable uptick in delinquencies and charge-offs. These warning signs are more pronounced among smaller issuers, who often take on higher-risk borrowers through more relaxed underwriting. A new report from Javelin Strategy & Research explores the key market signals and challenges issuers must monitor as they work to grow their portfolios while managing exposure.

The post Top 4 Issuers by Credit Card Purchase Volume appeared first on PaymentsJournal.

As debit cards continue to play a central role in everyday financial transactions, understanding how many cards consumers hold offers valuable insight into spending habits and banking preferences. With the rise of digital wallets, neobanks, and reward-linked checking accounts, many individuals now carry more than one debit card to manage different aspects of their finances. This trend reflects not only increased consumer choice but also evolving strategies for budgeting, rewards optimization, and digital banking engagement.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2025 Instant Issuance Provider Scorecard

Number of Debit Cards Owned

• 59% of consumers who own debit cards have 1 card.
• 21% of consumers who own debit cards have 2 cards.
• 15% of consumers who own debit cards have 3-5 cards.
• 6% of consumers who own debit cards have 6 or more cards.

About Report

Fiserv leads the field in Javelin Strategy & Research’s first-ever Instant Issuance Provider Scorecard, recognized for its strong, fully integrated solution that spans the full customer journey. Entrust and Thales also achieved top-tier rankings, placing among the top three providers evaluated.

The scorecard is one of two evaluations in Javelin’s broader analysis of Instant and Digital Issuance Providers, covering eight major vendors: Alviere, B4B Payments, CPI Card Group, Entrust, FIS, Fiserv, Galileo, and Thales. This particular scorecard focuses on instant issuance offerings, rating them across 28 performance indicators within three key areas. These assessments are informed by Javelin’s extensive consumer research to reflect market needs and expectations.

The post How Many Debit Cards Do Most Consumers Have? appeared first on PaymentsJournal.

Americans are holding more private-label credit cards than ever—store-branded cards tied to specific retailers rather than major networks like Visa or Mastercard. These cards, often pushed with promises of discounts or perks, are piling up in wallets across the country.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Card Data Book, Part 1: Risk and Opportunity Metrics in a Trump 2.0 Business Environment

Number of Private-Label Credit Cards Owned

• 41% of people who own a private-label card own 1 card.
• 28% of people who own a private-label card own 2 cards.
• 23% of people who own a private-label card own 3-5 cards.
• 8% of people who own a private-label card own 6 or more cards.

Source: Javelin Strategy & Research, North American PaymentsInsights (2024)

About Report

The 2025 U.S. credit card landscape appears steady, with economic momentum carrying over from the previous year. However, shifting political priorities under the new administration could introduce policy changes worth monitoring—particularly around tariffs and proposed, though unlikely, interest rate caps. This report from Javelin Strategy & Research—part one of a two-part series—explores the broader economic and regulatory forces shaping consumer credit card programs. It also offers strategic guidance for issuers navigating the evolving environment.

The post How Many Private-Label Credit Cards do Consumers Own? appeared first on PaymentsJournal.

Prepaid cards continue to hold a strong position in the payments landscape, offering convenience, flexibility, and control for a wide range of consumers. Over the past year, usage has remained steady across various categories—from everyday spending to gifting and financial management.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2025 Prepaid Card Data Book

Prepaid Cards Purchased, Reloaded, or Received in the Past 12 Months, by Percentage of Consumers

• 74% – Retailer-specific gift card
• 45% – General-purpose non-reloadable card
• 27% – General-purpose reloadable card
• 16% – Gas prepaid card
• 10% – Phone prepaid card

Source: Javelin Strategy & Research

About Report

The prepaid card market—both open-loop and closed-loop—has found its footing, showing modest growth driven by strong consumer usage patterns and the emergence of new sectors like gaming and gambling. According to Javelin Strategy & Research, nearly half of all prepaid categories are projected to grow at or above the industry’s average pace of 8% in 2025. However, not all segments are keeping up. Government and telecom-related products are expected to underperform, with growth lagging behind the 2.7% inflation benchmark.

Political dynamics, including changes in federal leadership, are likely to restrict expansion in public sector programs. Meanwhile, categories such as gaming, healthcare spending cards, retail gift cards, and incentive-based products are set to perform strongly. Programs tied to fixed cost-of-living adjustments or reliant on legislative support—like Social Security or TANF—may face tougher conditions moving forward.

The post Top 5 Prepaid Cards Purchased, Reloaded, or Received appeared first on PaymentsJournal.

Over the past 12 months, consumer spending habits have continued to evolve, and so has the way people pay. We look at which payment cards—credit, debit, and prepaid—have been most commonly used. By breaking down the data, we get a clearer picture of what’s driving consumer choices and which types of cards are gaining or losing ground.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 21st Annual U.S. Open-Loop Prepaid Card Market Forecast, 2024-2028

Top 5 Payment Cards Used in the Previous 12 Months

• 82% – Major credit card usable anywhere
• 66% – Major debit card usable anywhere
• 35% – In-store gift card
• 31% – General prepaid gift card (non-reloadable)
• 29% – Store-branded credit card

Source: Javelin Strategy & Research

About Report

Javelin Strategy & Research’s latest annual report on the open-loop prepaid card market outlines key developments and forecasts across several major categories. It highlights projected growth in areas such as general-purpose reloadable cards, payroll and benefits cards, and corporate expense cards. The report links these trends to broader economic indicators, noting that improvements in the economy and regulatory landscape are creating favorable conditions for certain card types. For example, lower inflation and evolving financial regulations are helping drive interest in benefit and general-purpose cards, which can serve as alternatives to higher-interest credit options. On the flip side, factors like a stronger job market and shifts in government aid programs are slowing growth in areas like unemployment-related cards.

The research also shows that consumer sentiment toward prepaid cards remains strong. Buyers are continuing to use these cards frequently, especially in high-volume categories, with many planning to maintain or increase their usage. This year’s findings build on previous trends, confirming that prepaid solutions are becoming a stable part of how Americans manage and spend money.

The post What Payment Cards Have Been Used in the Previous 12 Months? appeared first on PaymentsJournal.

Gift cards remain one of the most popular payment tools in the U.S., not just during the holidays but year-round. As consumer preferences shift and digital adoption grows, the types of gift cards people buy reveal larger trends in spending behavior. Categories like dining, retail, and entertainment continue to lead the pack, but newer segments are emerging as consumer priorities evolve. These patterns offer valuable insight into how and where people want to spend—and what brands are top of mind.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 21st Annual U.S. Closed-Loop Prepaid Card Market Forecast, 2024-2028

Top Consumer Gift Card Purchase Categories

• 46% – Online-only merchandise retailers
• 45% – Mass merchandisers
• 31% – Coffee or specialty food shops
• 30% – Fast food restaurants/quick serve
• 24% – Department store retailers

Source: Javelin Strategy & Research

About Report

Javelin Strategy & Research’s latest report offers a fresh look at the current state of the closed-loop prepaid market, highlighting the forces shaping its growth and transformation. While the overall outlook remains steady, category-specific trends are unfolding. In-store gifting is expected to maintain solid momentum, while segments like transit show both strength and vulnerability to change. This year’s analysis also brings new attention to the surging demand in online gaming and gambling—a segment that now ranks among the largest and fastest-growing in prepaid.

Economic shifts are playing a significant role, with easing inflation creating tailwinds for some categories while tempering gains in others. U.S. consumers continue to embrace closed-loop cards as a key payment option, and Javelin’s findings point to a rebound in certain sectors, rising card load volumes, and untapped market potential—alongside a few areas that are losing ground.

The post Top 5 Gift Card Purchase Categories appeared first on PaymentsJournal.

Mobile devices have become essential tools for consumers navigating daily life, extending far beyond communication and entertainment. Increasingly, smartphones serve as digital entry points, enabling seamless access to events, transportation, and secure locations. Whether scanning a mobile ticket to enter a stadium, using a digital boarding pass to board a plane, or presenting a QR code for expedited security screening, consumers are embracing the convenience and efficiency of mobile access solutions. As technology continues to evolve, the adoption of these digital credentials is reshaping expectations for frictionless, secure, and streamlined experiences across various industries.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Have You Been on a Digital-Only Magic Carpet Ride?

Percentage of Consumers Who Have Used Their Mobile Devices for Various Use Cases

• 58% – as entry pass or ticket
• 39% – to enter an arena event (sports, music, entertainment, etc.)
• 34% – to board a plane, train, bus, etc.
• 16% – to get through a security screening (TSA, vaccine card)

Source: Javelin Strategy & Research

About Report

While the concept of the digital-only payer—someone who has abandoned physical wallets in favor of digital payments—dominates media narratives, the reality is more nuanced. While some consumers have fully embraced digital transactions, the majority still rely on a mix of payment methods, carrying wallets, cards, and cash alongside their mobile devices.

This Javelin Strategy & Research report examines the data behind digital-only payers, exploring their demographics, behaviors, and the factors influencing their adoption. However, defining this group remains complex, as they do not fit neatly into traditional categories. Additionally, for digital-only payments to become truly dominant, broader ecosystem developments—such as widespread digital ID adoption—must take shape. The transition is happening, but full adoption remains a work in progress.

The post How are Consumers Using Their Mobile Devices? appeared first on PaymentsJournal.

As cryptocurrency adoption continues to grow, understanding how consumers interact with digital wallets is essential for financial institutions and payment providers. With the rise of digital assets influencing both retail and institutional finance, analyzing wallet usage can provide valuable takeaways for businesses looking to navigate the evolving payments landscape.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Stablecoins and the Path to Innovative Money Movement

Percentage of Respondents Reporting No Cryptocurrency Wallet Use

• Ages 18 – 24% – 50%
• Ages 25 – 34 – 37%
• Ages 35 – 44 – 46%
• Ages 45 – 54 – 63%
• Ages 55 – 64 – 90%
• Ages 65 and up – 97%

Source: Javelin Strategy & Research

About Report

Cryptocurrency adoption in the U.S. continues to evolve, though significant hurdles remain. Regulatory uncertainty creates a complex landscape, while consumer sentiment fluctuates between skepticism and enthusiasm, even as bitcoin’s value rises. Institutional interest is growing, prompting some regulatory movement, yet the widespread use of digital currencies for everyday transactions remains a distant prospect. Stablecoins, however, are gaining traction. With their ability to resist volatility and facilitate programmable transactions, they present a range of promising applications.

This Javelin Strategy & Research report explores U.S.-dollar-backed stablecoins, the expanding ecosystem of service providers supporting their implementation, key industry players, and the innovative use cases driving stablecoin adoption. For more details, refer to the original article on Javelin Strategy & Research.

The post Who are the Users of Cryptocurrency Wallets? appeared first on PaymentsJournal.

In an era of rising consumer debt and financial uncertainty, many individuals are seeking practical tools to manage their budgets and control spending. Prepaid cards have emerged as a popular option, offering a way to spend only what’s loaded onto the card—eliminating the risk of overdrafts or accumulating credit card debt. But are consumers likely to use prepaid cards?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2024 Prepaid Regulatory Update: Playing by the Rules

Consumers’ Likelihood of Using Prepaid Cards to Manage Budgets and Control Spending in the Next 12 Months

• 15% – Not at all likely
• 25% – Unlikely
• 30% – Likely
• 21% – Very Likely
• 8% – Don’t know

Source: Javelin Strategy & Research

About Report

Regulatory shifts in the prepaid industry slowed both domestically and internationally in 2024. Efforts to combat fraud and scams related to prepaid cards saw limited progress, except in Maryland, where a significant initiative could set the stage for future regulatory actions. On a positive note, more states moved forward with legalizing mobile sports betting and lotteries, expanding opportunities within the prepaid and stored-value market. However, states that have yet to legalize gambling continue to face external pressure to adopt legislation and capitalize on the potential tax revenue from gaming. Meanwhile, policymakers remained focused on tackling inflation, preventing a recession, and responding to broader economic challenges that significantly impact the prepaid sector.

Other factors influencing the prepaid market include routine cost-of-living adjustments for regulated programs like nutrition assistance and health savings accounts (HSAs). Additionally, uncertainty persists regarding the regulatory classification of earned wage access, as guidance from the Consumer Financial Protection Bureau conflicts with policies in several states.

Globally, regulatory discussions followed similar trends. Various governing bodies introduced measures to clarify tax policies and redemption rules for vouchers, gift cards, and coupons. Meanwhile, a proposal to integrate reward programs into TikTok was blocked in Europe, highlighting ongoing regulatory scrutiny in the digital space.

The post Will Consumers Use Prepaid Cards to Control Spending? appeared first on PaymentsJournal.

Prepaid general-purpose reloadable (GPR) cards have become a popular alternative to traditional banking, offering convenience, flexibility, and accessibility to a wide range of consumers. However, despite their initial appeal, many users eventually stop using these cards, opting for other financial tools instead. Understanding why consumers abandon GPR cards can provide valuable insights into their limitations, evolving financial needs, and the broader shifts in payment preferences.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2024 General-Purpose Reloadable Card Program Scorecard

Top 4 Reasons for Discontinuing Use of General-Purpose Reloadable Cards

• 33% – Reloading wasn’t convenient
• 31% – Fees were too high
• 15% – Able to qualify for a credit card instead
• 14% – Too many payment cards

Source: Javelin Strategy & Research, 2023

About Report

The 2024 General Purpose Reloadable (GPR) Card Program Scorecard offers a consumer-focused analysis of the competitive open-loop prepaid card market. With total load values reaching $234 billion in 2023 and a steady annual growth rate of 7%, these cards continue to play a critical role in financial access. They serve as a gateway for individuals without traditional credit or debit accounts while also providing a budgeting tool for those managing everyday expenses. The report examines key consumer priorities, including cost structures, security measures, ease of access, and technological convenience.

Among the 10 most popular card programs, the Serve Cash Back card earned the Best in Class distinction for its strong overall performance across multiple evaluation categories. While it did not lead in any single category, its top-three ranking in all three areas secured its high standing. The Target Circle card claimed second place, excelling in the Ongoing Experience category despite a lower score in Additional Benefits and Features. PayPal’s prepaid card followed a similar model to the Serve card, delivering a well-balanced performance across categories and aligning with consumer preferences.

The evaluation considered 51 criteria across three key categories: Ongoing Experience, Costs, and Additional Benefits and Features. Ongoing Experience carried the most weight at 50% of the total score, while Costs and Additional Benefits and Features each contributed 25% to the final rankings

The post Why do Consumers Stop Using Prepaid GPR Cards? appeared first on PaymentsJournal.

In today’s fast-paced digital economy, instant payments have become a game-changer, redefining the way individuals and businesses move money. Whether it’s splitting a bill, paying a freelancer, or settling invoices in real time, instant payment systems offer speed, convenience, and efficiency like never before. As financial institutions, fintech firms, and regulators push for broader adoption, understanding the benefits, challenges, and future of instant payments is crucial.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Impact Note: U.S. Real-time Payments: Full Speed Ahead After Year 1 of FedNow

Instant Payment Use Cases With Best Revenue Opportunities, by Percentage of FIs Selecting Them

• 85% – Loan disbursements
• 73.5% – Invoice payments
• 69.4% – Loan repayments
• 61.2% – Instant funding of newly opened accounts
• 46% – Payroll processing

Source: U.S. Faster Payments Council and Finzly survey, May 2024

About Report

On July 20, 2024, FedNow marked its first anniversary, solidifying its role in revolutionizing instant payments across the United States. Over the past year, this highly anticipated Federal Reserve initiative has not only accelerated the adoption of real-time payments but also contributed to record-breaking transaction volumes across networks like RTP and Same Day ACH. Financial institutions of all sizes are increasingly prioritizing real-time payment capabilities, signaling a fundamental shift in the industry.

Consumers and businesses alike are embracing faster payment solutions at an unprecedented rate. Recent Federal Reserve Financial Services surveys reveal that 74% of consumers and 86% of businesses used instant or faster payments in 2023. Additionally, 79% of consumers and 74% of businesses expect their financial institutions to offer these services, with over half of consumers (57%) planning to expand their use of real-time payments. This surge in demand underscores the necessity for financial institutions to keep pace with evolving expectations.

This impact note explores FedNow’s first-year progress, examining its influence on financial institutions, businesses, and consumers. It also highlights key use cases and challenges shaping the future of real-time payments in the U.S.

The post Which Instant Payments Drive the Most Revenue? appeared first on PaymentsJournal.

In an increasingly digital world, the way we manage money is evolving rapidly, and mobile wallets are at the forefront of this transformation. From paying for a morning coffee with a tap of a smartphone to splitting dinner bills effortlessly through an app, mobile wallets have redefined convenience in financial transactions. But beyond the simplicity of use, what drives consumers to adopt these digital payment solutions?8

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Imagining a Cardless U.S. Payments Landscape, Part 1

Consumers’ Top 5 Reasons for Using Mobile Wallets, by Percentage

• 44% – It makes checking out quicker
• 41% – It is safe to use
• 32% – I have all my payment info in one place
• 29% – I don’t have to carry all my cards
• 28% – I like to try new technologies

Source: Javelin Strategy & Research, 2024

About Report

Exploring the possibility of a cardless future in U.S. payments begins with understanding what’s at stake. The focus isn’t on the underlying card network systems, which are expected to remain dominant for the foreseeable future due to their widespread adoption, security, and rewards structures. Instead, the question is whether the physical cards themselves—long a staple of point-of-sale transactions—will endure. The U.S. payments ecosystem is both fragmented and highly innovative, with numerous emerging players vying for even small slices of the market. While no single innovation has yet displaced cards, the cumulative impact of these alternatives may eventually signal a shift.

This report from Javelin Strategy & Research examines the evolving payments landscape, leveraging data on consumer behaviors and attitudes toward emerging payment methods. It also highlights how the fragmented nature of U.S. payments offers a measure of protection for traditional cards, which remain the dominant method of payment despite increasing competition.

The post Why Do Consumers Use Mobile Wallets? appeared first on PaymentsJournal.

Gift cards have become a go-to solution for thoughtful and versatile gifting, offering recipients the freedom to choose something they truly want or need. Whether you’re celebrating a milestone, expressing gratitude, or simply looking for a convenient yet meaningful present, gift cards provide the perfect balance of practicality and personalization. From birthdays and holidays to corporate events and last-minute surprises, these little cards pack a big punch, making them suitable for a variety of occasions.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2024 Prepaid Holiday Preview

Top Occasions for Consumers’ Purchase of a Gift Card for Someone Else

• 77% of Gift Card Purchases were for Birthdays.
• 63% of Gift Card Purchases were for Christmas/Hanukkah/Kwanzaa.
• 23% of Gift Card Purchases were for Graduation.
• 23% of Gift Card Purchases were for Mother’s Day/Father’s Day.
• 19% of Gift Card Purchases were for Just because, no particular occasion.

Source: Javelin Strategy & Research, 2024

About Report

As the retail industry gears up for the 2024 holiday season, lessons from recent years are shaping strategies to navigate its unpredictable nature. While 2023 showed signs of recovery from a challenging 2022, the dynamic interplay of economic factors and consumer behavior continues to underscore the importance of proactive planning. Retailers, gift card providers, and industry players are leveraging insights to fine-tune their approaches, aiming to effectively engage shoppers and optimize performance during this critical period.

Gift cards remain a cornerstone of holiday gifting, offering value to both buyers and recipients while presenting significant opportunities for businesses. Research shows that their enduring popularity not only drives revenue but also serves as a powerful tool to convert one-time transactions into lasting customer relationships. Beyond consumer gifting, gift cards are increasingly pivotal in commercial sales strategies, enabling businesses to expand their reach through recipient-driven channels. With the end-of-year period demanding a well-executed approach, early planning is essential to fully capitalize on these opportunities.

The post Top 5 Occasions for a Gift Card Purchase appeared first on PaymentsJournal.

When it comes to financial advice, teens are increasingly turning to diverse sources that reflect the digital age and their unique life stages. From parents and teachers to influencers and online platforms, young people are navigating a complex web of financial guidance.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Cultivating Financial Savvy and Customer Loyalty: Debit Products for Kids and Teens

Teens’ Preferred Sources for Financial Advice

• 70% – parents
• 40% – social media
• 27% – other family members
• 23% – friends
• 19% – teachers

Source: T. Rowe Price, 14th Annual Parents, Kids & Money Survey, 2022

About report

Debit products designed for kids and teenagers are a valuable financial tool, enabling parents to guide their children toward healthy financial habits while strengthening the connection between families and financial institutions. Major banks, fintech companies, and peer-to-peer platforms are actively competing in this space, differentiating their offerings through features like account setup, fees, funding methods, and robust parental controls.

A recent report by Javelin Strategy & Research evaluates these products, highlighting their advantages and areas for improvement. This space presents a significant opportunity for financial service providers to support parents in nurturing sound financial practices in their children, fostering stronger family relationships, and engaging younger users with tailored, age-appropriate features.

The post Top 5 Sources of Financial Advice for Teens appeared first on PaymentsJournal.

Co-branded credit cards have become a powerful tool in the financial and retail industries, offering a blend of targeted rewards, brand loyalty incentives, and exclusive perks that appeal to a broad range of consumers. These cards, created through partnerships between financial institutions and retail, travel, or lifestyle brands, attract applicants by aligning their benefits with specific consumer interests. What attracts applicants to co-branded cards?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Co-Branded Credit Cards 2024:Top Issuer Market Review

Top 4 Most Important Factors for Co-Branded Card Applicants

• 73% – An attractive points/rewards program
• 72% – No annual fee
• 66% – The card had strong fraud protection features
• 60% – Low APR (interest rate)

Source: Javelin Strategy & Research, North American PaymentsInsights, 2023

About Report

Co-branded credit cards represent a significant and growing share of the U.S. consumer credit market, highlighting their importance to both consumers and businesses. These cards are key tools for fostering stronger connections between customers and partner merchants, offering tailored benefits and rewards that drive engagement. Research into the portfolios of 12 major issuers reveals that co-branded cards account for an impressive 62% of consumer credit card offerings, underscoring their strategic appeal to both issuers and merchants, while enticing consumers with attractive reward structures.

This Javelin Strategy & Research report provides an in-depth exploration of this dynamic market segment. It delves into the mutual advantages for issuers and merchants, analyzes market positioning strategies, identifies the consumer demographics most drawn to these programs, and examines the regulatory considerations shaping their development.

The post What Attracts Co-Branded Credit Card Applicants? appeared first on PaymentsJournal.

Cross-border transactions have become a cornerstone of the global economy, enabling businesses and individuals to seamlessly exchange goods, services, and payments across international boundaries. As technology advances and digital payment systems evolve, the process of moving money across borders is becoming faster, more secure, and increasingly accessible. However, this growth also brings challenges such as regulatory compliance, currency fluctuations, and the need for transparency in payment processing. Understanding the dynamics of cross-border transactions is essential for businesses looking to expand internationally and for financial institutions aiming to support global commerce effectively.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Commercial Cross Border: This is Getting Good.

Cross-Border Transaction Market Size, in Trillions of U.S. Dollars

• 2022 – $1.27 trillion
• 2023 – $1.41 trillion
• 2024-est – $1.56 trillion
• 2025-est – $1.72 trillion
• 2026-est – $1.91 trillion

About Report

Commercial cross-border transactions are a driving force in the global economy, poised to grow at nearly 11% CAGR through 2030. Yet, these transactions remain complex, often hampered by the inefficiencies of the traditional correspondent banking model, which is costly, slow, and lacking transparency. Emerging technologies such as instant payments and blockchain are disrupting this legacy framework, offering faster and more cost-effective solutions for business payments.

This report by Javelin Strategy & Research explores the evolution of cross-border payments, comparing traditional methods with innovative tools reshaping the landscape. It also examines the critical risks associated with international business, including foreign exchange volatility, regulatory challenges, fraud, and geopolitical uncertainties, while providing strategies to address these hurdles effectively.

The post Will Cross-Border Transactions Continue to Be Lucrative? appeared first on PaymentsJournal.

Small credit card issuers are facing a significant challenge in today’s economic environment as charge-off rates rise across the industry. Unlike larger, well-capitalized institutions, smaller issuers often have less flexibility in managing credit risk, which can make even a slight uptick in charge-offs more impactful to their bottom lines. As charge-offs continue to climb, understanding these dynamics is crucial for smaller players aiming to stay competitive in a turbulent market.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Card Issuance by Small Issuers: Strategies, Risks, and Options

Credit Card Charge-offs as a Percentage of Receivables for Small Issuers

• Q4 2020 – 5.68%
• Q4 2021 – 4.51%
• Q4 2022 – 6.95%
• Q4 2023 – 9.5%

Source: Federal Reserve Bank, Javelin Strategy & Research estimates, 2024

About Report

In today’s financial landscape, payment cards have become essential for banks, credit unions, and financial institutions of all sizes to remain competitive. With nearly 600 million credit cards circulating in the U.S. and over 230 million adults using them, credit cards are a primary method of household lending. However, smaller banks and credit unions face substantial competition from major institutions that dominate the credit market. To bridge this gap, some smaller financial entities are turning to agent bank partnerships, which allow them to offer credit programs without bearing the full operational load.

This report by Javelin Strategy & Research provides an in-depth analysis of the credit card market, segmented by institution size, assets, and deposit levels. It also highlights the performance disparities among institutions and examines the agent bank model as a strategic option to support credit offerings for smaller banks and credit unions.

The post How Many Charge-Offs Are There for Small Credit Card Issuers? appeared first on PaymentsJournal.

In an era where consumer expectations and environmental consciousness are reshaping industries, payment cards are also undergoing a transformation. With an increasing shift toward sustainability, financial institutions and card issuers are rethinking the materials and designs of their cards. From recyclable options to customized designs that reflect consumers’ values, this trend not only minimizes environmental impact but also enhances customer engagement by allowing individuals to make choices that align with their personal and ecological preferences. How many cards to consumers have?

As payment card programs evolve, sustainability is becoming a key differentiator in an industry that traditionally relied on single-use PVC cards. Financial institutions are moving away from this outdated material, instead exploring alternatives like recycled plastics, biodegradable options, and even digital wallets as they embrace greener solutions. Beyond materials, customizable designs offer consumers a unique way to express their values, aligning their financial tools with their personal beliefs. This shift not only reduces waste but also encourages a more responsible consumer culture, with cardholders now empowered to support sustainable practices through their everyday transactions.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Eco-Focused Payment Cards: It Pays to Be Green.

Mean Number of Cards per Customer, by Type

• 2.6 – Major credit card usable anywhere
• 2.3 – Store branded credit card
• 2.2 – General-purpose prepaid reloadable cards
• 1.8 – Major debit or check card usable anywhere
• 1.7 – Co-branded credit card

Source: North American PaymentInsights, 2023

About Report

As financial institutions and card issuers commit more fully to sustainable practices, they’re introducing card programs that prioritize environmental impact. This includes the use of innovative, recyclable materials for physical cards and unique, customizable design options that allow consumers to express both individuality and eco-conscious values.

The recent report from Javelin Strategy & Research examines how traditional single-use PVC cards, which have long dominated the market, are giving way to more sustainable alternatives. It also explores how card issuers are appealing to environmentally aware consumers through card features that emphasize eco-friendly benefits and personal expression.

The post Top 5 Payment Card Types used by Customers appeared first on PaymentsJournal.

As digital commerce continues to grow, the use of gift cards has evolved, with online redemption becoming increasingly popular across various generations. While gift cards remain a convenient option for gifting, how different age groups redeem them is shifting. From tech-savvy Gen Z to digitally adept Millennials, and even Baby Boomers embracing online platforms, each generation has its own distinct approach to utilizing gift cards.

In particular, Gen Z and Millennials, who are highly accustomed to digital ecosystems, prefer the convenience of redeeming gift cards through online platforms and mobile apps, aligning with their broader shopping habits. Their comfort with technology drives demand for seamless, digital-first gift card experiences, often tied to e-commerce and social media integrations. Meanwhile, Baby Boomers, though traditionally associated with in-store gift card usage, are increasingly adapting to digital redemption options as they become more user-friendly and accessible. This shift not only reflects generational preferences but also points to a broader trend of digitization within the payments industry, where gift card providers are enhancing their offerings to meet the needs of a diverse consumer base.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Javelin Prepaid Consumer Sentiment: A Generational View

Gift Card Redemption Online by Generation in the Past 12 Months

• 76% of Gen Y / Millennial’s redeemed gift cards online.
• 68% of Gen Xer’s redeemed gift cards online.
• 67% of Gen Zer’s redeemed gift cards online.
• 61% of Baby Boomer’s redeemed gift cards online.

Source: Javelin Strategy & Research

About Report

Generational approaches to prepaid card usage highlight the potential for tailoring programs to meet the specific needs of different demographic groups. While the behavior of one generation may not always predict the habits of the next, valuable insights can still be gained by examining generational trends. These insights can help inform strategies that encourage new and innovative uses of prepaid cards.

The generational perspective also sheds light on the ongoing digital divide. As prepaid card programs expand into omnichannel and digital platforms, younger, tech-savvy generations like Millennials and Gen Z show distinct preferences in how they receive and use these cards. Meanwhile, Baby Boomers tend to maintain more traditional behaviors, with Generation X often positioned between the two, balancing both digital adoption and conventional redemption methods.

The post What Generation Redeems Gift Cards Online? appeared first on PaymentsJournal.

Peer-to-peer (P2P) payments have become a popular method for individuals to transfer money quickly and easily, often in real-time. These transactions are typically facilitated through digital platforms like mobile apps, which offer various payment methods to fund them. From bank transfers and debit cards to digital wallets and cryptocurrency, the ways users can fund P2P payments are expanding.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Room for One More? Global Real-Time Pay-by-Bank Lessons for the U.S.

Top 4 Payment Methods Used to Fund P2P Payments

• Debit Cards – 46%
• Checking account(s) – 44%
• Credit card(s) – 36%
• Prepaid card(s) – 10%

Source: Javelin Strategy & Research: North American PaymentsInsights, December 2023

About Report

Pay-by-bank solutions are known by various names, including bank transfer, direct debit, and account-to-account payments. In countries like Brazil, India, and Thailand, where real-time, interoperable bank transfers are common, these payment methods have gained widespread popularity due to their ease of use and lower costs for merchants. However, in markets like the United States, where payment cards are more dominant, adoption has been slower.

This Javelin Strategy & Research report examines the rise of real-time pay-by-bank systems across different countries, the key growth opportunities for these payments, and the challenges and potential for expansion in the U.S. market.

The post What Payment Methods Are Used to Fund P2P Payments? appeared first on PaymentsJournal.

Credit reporting agencies play a critical role in determining consumers’ financial health, but they are not without controversy. Consumers often encounter issues related to inaccuracies, delayed updates, and miscommunications in their credit reports, leading to significant frustration. These problems can result in denied loans, increased interest rates, or other financial challenges, making the stakes particularly high. How many complaints do the credit reporting agencies receive?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Scoring: A Cornerstone to Credit Extension and Management

Complaint Volume for Credit Reporting Agencies over Last 5 Years

• 2023 – 1,309,800
• 2022 – 978,900
• 2021 – 710,300
• 2020 – 319,300
• 2019 – 154,500

Source: CFPB, “Consumer Response Annual Report,” 2019-2024

About Report

Credit scoring methods that have been in use for years are widely recognized for their accuracy and reliability in evaluating consumer creditworthiness. FICO Score 8, the most widely used credit score in the U.S., is a key tool for lenders due to its effectiveness in predicting consumer behavior and credit performance. While traditional models remain essential, advancements are ongoing, and the integration of alternative data is helping lenders reach consumers with limited or no credit history.

This report from Javelin Strategy & Research explores the landscape of credit scoring, analyzing the evolution of traditional models, the rise of alternative scoring techniques, innovative products in the field, and how lenders can utilize these tools to better meet customer needs.

The post How Many Complaints do the Credit Reporting Agencies Receive? appeared first on PaymentsJournal.

The rapid growth of instant payments in the U.S. has captured significant attention across the payments and banking industry. As digital transactions become increasingly integrated into daily life, the estimated value of the instant payments market is set to soar, reflecting both consumer demand for speed and efficiency and the ongoing innovation within financial technology.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Movements in Global Commercial Payments and Banking: 2024 Edition

Estimated Value of U.S. Instant Payments 2024-2028

• 2024 – $4 T
• 2025 – $8 T
• 2026 – $16 T
• 2027 – $27 T
• 2028 – $37 T

Estimated value in Trillions of U.S. Dollars

Source: Deloitte Insights and Association of Financial Professionals, 2023

About Report

Global commercial banking and payments are undergoing rapid transformation, spurred by advances in technology, shifting corporate practices, and emerging market trends. Businesses are under pressure to adapt quickly, staying competitive, mitigating risks, and seizing new opportunities. One of the most significant trends is the increasing adoption of instant payments worldwide. As businesses begin to mirror the success of instant payments in the consumer sector, this trend is expected to gain even more momentum.

This report by Javelin Strategy & Research examines these ongoing changes in areas such as cross-border transactions, emerging corporate payment methods, regulatory compliance, anti-fraud efforts, and the prospects for non-systemically important banks. Now is a crucial moment for businesses and their banking partners to adopt modern messaging standards, embrace automation, prioritize sustainability, and more, ensuring they stay ahead in this fast-evolving landscape.

The post What is the Estimated Value of U.S. Instant Payments, 2024 – 2028? appeared first on PaymentsJournal.

Over the past five years, the available balance on credit cards in the U.S. has shown significant fluctuations, reflecting the changing economic landscape and consumer behavior. As consumers navigated through periods of economic growth, recession, and the aftermath of the pandemic, credit card balances became a critical indicator of financial health and spending habits.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: High-Yield Savings Accounts: An Efficient Way to Fund Credit Card Loans

Credit Card Line Utilization Rates 2020 – 2023

• 2019 – 24%
• 2020 – 21%
• 2021 – 21%
• 2022 – 22%
• 2023 – 24%

Source: New York Federal Reserve Bank, Household Debt and Credit Report (2024)

About Report

Banks involved in credit card lending face unique challenges as they navigate the current financial landscape, with the prime rate at its highest point in decades. As they anticipate possible rate decreases in late 2024 and 2025, banks may need to optimize their loan funding strategies. One effective approach is offering high-yield savings accounts to attract deposits specifically for their credit card programs. This strategy enhances liquidity, reduces dependency on external funding sources, and contributes to a more streamlined business model.

This report from Javelin Strategy & Research highlights the complexities of implementing high-yield savings offerings, noting that these initiatives require careful planning across multiple areas within a bank. The structure of the organization may influence whether the strategy impacts various departments or is managed within the retail banking division. Key decisions include market entry, deposit attraction methods, and whether to manage deposits within the existing core system or through a separate platform.

The post Is Credit Card Line Utilization Increasing? appeared first on PaymentsJournal.

Prepaid and gift cards have become increasingly popular as convenient financial tools and versatile gifting options. However, their widespread use comes with a distinct set of challenges and potential risks that consumers must consider. From vulnerabilities like theft and unauthorized usage to the complications of expiration dates and hidden fees, what are the issues consumers have to consider?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Mitigating Risk in Prepaid Card Programs

Top 3 Security Issues and Lost-Value Risks When Using Prepaid/Gift Cards

• 44% – Loss of funds due to expiration of card
• 43% – The card becoming lost or stolen
• 34% – Inability to access the prepaid balance at the time of use due to technical issues

About Report

Risk in any business is inevitable. Prepaid card programs start with risk as soon as the financial liability of a card appears on the balance sheet. From the time of issuance, all parties in the value chain must be aware of the many risks associated with that liability and understand how best to mitigate them, knowing that eliminating risk is an impossibility. 

The risks start with the seemingly simple task of understanding customer sentiments and managing their expectations. However, that is much more difficult than it appears. Other risks include store policies, theft scams, and fraud, the successful management of which compounds into ensuring customers feel secure in their purchases. Strong back-end technology and policies create an overlying, invisible shield that helps further reduce risk to acceptable levels.

The post Top 3 Concerning Security Issues Using Prepaid/Gift Cards appeared first on PaymentsJournal.

In the ever-evolving landscape of retail, understanding consumer preferences for payment methods at physical locations has become crucial for businesses aiming to enhance the shopping experience and increase customer satisfaction. As digital wallets, contactless cards, and mobile payment solutions continue to gain traction, traditional cash and card payments remain significant.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: A New Era of Chargeback Management

Preferred Payment Methods at Physical Locations

• 39% – Major credit card
• 31% – Major debit card
• 15% – Cash
• 3% – Contactless at the POS
• 2% – Store-specific card

About Report

The chargeback—a forced refund to a cardholder’s account that is initiated by the issuing bank—turns 50 years old later this year. The maneuver, legislated into existence to foster trust in card payments at a time when few consumers were using them, has aged into a management headache for merchants. In an age of proliferating card usage and ongoing growth of e-commerce channels, chargebacks are easy to initiate and easy for consumers to win. Merchants, meanwhile, need help with the complex process of challenging chargebacks, heading them off in the first place, and avoiding the escalating consequences of a high chargeback rate. It’s an endurance test most merchants are not equipped to navigate alone. 

This Javelin Strategy & Research report looks at where chargebacks started out and how they have evolved into a present-day challenge for all kinds of merchants. It lays out the stakes for harboring an unchecked high chargeback rate, denotes strategies for communicating with consumers to reduce instances of so-called “friendly” fraud, and examines the value of dedicated service providers versed in representment and building strategies to stem the chargeback tide.

The post What Are the Preferred Payment Methods at Physical Locations? appeared first on PaymentsJournal.

In an era defined by rapid technological advancements and shifting cultural norms, Generation Z, born between the mid-1990s and early 2010s, is redefining consumer behavior. As this tech-savvy and socially conscious cohort enters the workforce and gains purchasing power, Gen Z’s spending habits are attracting attention.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Get Out Your Wallet: Gen Z Debit Payment Preferences

Gen Z’s Self-Reported Percentage of Spending (Monthly)

• 52% – Household bills and expenses
• 44% – Clothes and accessories
• 39% – Travel
• 37% – Going out/entertainment
• 37% – Food delivery/eating out

About Report

Generation Z—those born from 1997 to 2012—is coming of age and moving steadily toward greater financial maturity. Members of this generation differ from their elders in significant ways, including a strong preference for debit and digital payments, a greater propensity for saving, and an approach to shopping that is heavily influenced by social media and a desire to shop with merchants that align with their values. 

This Javelin Strategy & Research report delves into the characteristics of this generation and what drives the payment behaviors of its members. Generation Zers live digitally and expect to be able to shop according to that lifestyle, with digital payments that are at the ready when the moment to buy arrives. As Gen Zers age, some of their habits will no doubt change, but the digital-first approach is hard-wired into them. 

The post Top 5 Categories for Gen Z Spend appeared first on PaymentsJournal.

Fleet cards have become an essential tool for managing the fuel and maintenance expenses of commercial fleets, regardless of size. These specialized payment solutions offer fleet managers a streamlined and efficient way to control costs, track expenditures, and enhance operational efficiency.

The prevalence of these cards has grown significantly, driven by advancements in technology and the increasing complexity of fleet management. Whether overseeing a small business with a handful of vehicles or a large enterprise with hundreds, these cards provide critical insights and control mechanisms.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Fleet Cards 2024: Small Fleets Are an Opportunity

Global Fleet Card Usage (2023)

• 74% – Large fleets (more than 100 vehicles)
• 49% – Midsize fleets (25 to 99 vehicles)
• 23% – Small fleets (2 to 24 vehicles)

Source: Visa, July 2023

About Report

Nothing stays the same for fuel card providers, or for the fleet operators that rely on them. Declining fuel costs in 2023 cut into fuel card companies’ revenues, sending them off in search of other growth opportunities. Some of those opportunities exist in catering to smaller fleets by drawing them in with a card product and cross-selling other services. 

This Javelin Strategy & Research report looks at the fleet market and where things are headed. Vendor strategies would do well to focus on mixed fleet needs and electric vehicles, use fleet cards as entries into bigger relationships with fleet managers, and learn from newer market entrants that use sleek, modern apps to drive business.

The post Does Fleet Size Impact Fleet Card Prevalence? appeared first on PaymentsJournal.

The U.S. open-loop commercial prepaid market is experiencing significant growth, driven by increasing corporate demand for versatile and efficient financial solutions. This dynamic sector encompasses a wide range of commercial prepaid products, such as payroll cards, expense management cards, and incentive cards, offering businesses flexible payment options and streamlined financial operations. As technological advancements continue to enhance transaction efficiency and security features, the commercial prepaid market is poised to expand further, reflecting broader trends in corporate financial management and digital payments.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2024 State of the Industry: Commercial Prepaid Cards

2023 U.S. Open-Loop Commercial Prepaid Loads by Segment (In Billions of U.S. Dollars)

• $96 – other commercial open-loop
• $94 – government open-loop
• $19 – consumer incentives
• $6 – employee incentives

Source: Javelin Strategy & Research

About Report

The commercial prepaid market should see moderate growth in coming years, with an increased opportunity for non-governmental products such as employee and health incentives in open-loop and closed-loop networks. 

With this report, Javelin Strategy & Research continues its annual series on prepaid market trends. Overall, prepaid continues to represent a small but significant share of the overall commercial payments market. The consistency of that share provides stability for vendors offering commercial prepaid programs, and a continuation of high interest rates could create the potential for growth beyond Javelin’s current expectations.

The post Top 4 Segments for U.S. Open-Loop Commercial Prepaid Loads appeared first on PaymentsJournal.

Debit cards have become an integral part of modern financial transactions, offering consumers a convenient and secure way to access their funds directly from their bank accounts. Unlike credit cards, which allow for borrowing money up to a certain limit, debit cards enable users to spend only what they have, promoting better budgeting and financial discipline. With the added benefits of wide acceptance, minimal fees, and advanced security features, debit cards have emerged as a preferred payment method for everyday purchases.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Retailer Debit Cards: Why Doesn’t Everyone Do It?

Top 5 Retailer Types Where Debit Cards Are The Preferred Payment Method

• 40% – Supermarkets/grocery stores
• 36% – Pharmacies/drugstores
• 34% – Mass merchandisers/big-box retailers
• 33% – Gas Stations
• 33% – Warehouse/club stores

About Report

Consumers are on a quest for value and convenient ways to pay. Retailers and merchants want to boost sales and cut costs. These interests can get together through retailer debit cards that leverage consumer bank accounts via store-branded apps and payment cards. These payment vehicles are especially attractive for buyers and sellers of everyday goods like groceries and gas, and combined with loyalty and rewards programs they can be drivers of customer retention and adoption of payment methods that are beneficial to merchants. 

This Javelin Strategy & Research report looks at how consumers’ payment habits are shifting, innovative ways retailers are guiding their customers to these branded debit products, and what should be considered when such programs are implemented.

The post Top 5 Retailer Types for Debit Cards appeared first on PaymentsJournal.

In an era where financial flexibility is paramount, rising credit limits have become a significant trend within the banking and payments industry. As consumers increasingly rely on credit to manage their expenses and build their financial profiles, banks are responding by raising credit limits to accommodate this demand. This move highlights the evolving dynamics of consumer credit behavior.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Card Data Book Part 2: Internal Dynamics

Credit Limit in Past 5 Years (in Trillions of Dollars)

• $3.80 – Q3 2019
• $3.85 – Q3 2020
• $3.96 – Q3 2021
• $4.30 – Q3 2022
• $4.71 – Q3 2023

Source: New York Fed Consumer Credit Panel/Equifax (2024)

About Report

Part 2 of the annual Javelin Strategy & Research examination of the U.S. credit cards looks at how internal dynamics, such as issuer portfolios and ongoing risk assessment, affect the market. The upshot: As economic stressors rise and loan loss provisions are reserved, the return on assets is declining across the large card issuers, and underwriting standards are tightening as issuers steer their portfolios away from trouble. 

Although indications are that a recession, if it occurs, is likely to be mild rather than severe, there are concerning indicators. Credit card balances are going up steadily, and the rate doesn’t appear to be slowing. Banks are also encountering higher delinquencies and charge-offs, with small to midsize institutions taking the biggest hits. These factors demand caution by issuers until the path forward clears.

The post Are Credit Limits Rising? appeared first on PaymentsJournal.

In the past twelve months, the landscape of consumer spending has witnessed a notable shift towards prepaid cards, reflecting broader economic trends and evolving consumer preferences. This surge in popularity has not only reshaped the way people manage their finances but also highlighted the diverse uses of these financial tools. From budgeting and gift-giving to online transactions and travel, prepaid cards have carved a niche as a versatile and accessible option for a wide array of users.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report:2024 Prepaid Card Data Book

Top 5 Prepaid Cards Purchased, Reloaded or Received in Past 12 Months

• 72% – Retailer-specific gift card
• 42% – General-purpose non-reloadable prepaid card
• 29% – General-purpose reloadable prepaid card
• 17% – Gas prepaid card
• 11% – Phone prepaid card

Source: Javelin Strategy & Research

About Report

Open-loop and closed-loop prepaid segments have stabilized after periods of economic uncertainty, and many have had gains even as counter products to inflationary pressure. Into 2024, we expect stable short- and long-term growth potential. The immediate impact in most segments will track closely to our projected compounded growth rates, with most segments tracking between 5% and 7% growth in 2024 and a total industry CAGR of 7% through 2027. 

Business and consumer segments are emerging into a new and more stable overall environment. The past year highlighted that economic, political, and market forces have different impacts on various segments while allowing for an overall steady state in the broad prepaid market. This gives the industry the ability to plan accordingly to ensure continued growth and immediately maximize the specific segments that have the most short-term potential. 

Specific areas that will have a particular short-term lift include business and corporate prepaid, such as incentives, with estimated year-over-year growth of 12%, retail gift cards at 7%, and open-loop general-purpose cards at 7%. Products tied to cost-of-living adjustments will likely see less immediate growth, with a specific impact on government prepaid programs such as Social Security, nutritional assistance, and Temporary Assistance for Needy Families, all with an estimated 2024 growth of 3%, which comes in slightly lower than the 2027 CAGR of 4%.

The post What Prepaid Cards Dominate the Market? appeared first on PaymentsJournal.

In an era where cash is no longer king, debit cards have emerged as the primary mode of transaction for many. From daily purchases to online shopping sprees, these plastic wonders have revolutionized the way we handle our finances. But who exactly is leading the charge in embracing this convenient payment method? Delving into consumer habits, it becomes clear that generational disparities play a role in shaping debit card usage patterns.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2024 Annual U.S. Debit Card Market Data Review

Debit Card Usage by Age Bracket

What percentage of spend is by debit card?

• 18-24 year olds: 39%
• 25-34 year olds: 33%
• 35-44 year olds: 35%
• 45-54 year olds: 32%
• 55-64 year olds: 29%
• 65+: 20%

Source: Federal Reserve Bank of San Francisco, Diary of Consumer Payment Choice (2023)

About Report

Changes are afoot in the debit card market as higher prices drive more consumers toward credit for everyday payments and users increasingly demand digital payment technologies. This Javelin Strategy & Research report takes a comprehensive look at debit payments in the context of now and what is likely to be coming as consumers consider the economic landscape, adopt new technologies, and adjust their payment preferences accordingly. 

For debit card issuers and merchants, Generation Z—encompassing those born in 1997 and later—represents an opportunity to reach out to consumers who haven’t yet built up a strong credit profile and engage with issuers’ apps more strongly than older generations. This is a chance for debit issuers to build products that align with these consumers’ wants and needs and to build lasting relationships.

The post What Generation Uses Debit Cards the Most? appeared first on PaymentsJournal.

In an era marked by financial digitization and consumer convenience, the proliferation of credit card accounts has surged, becoming a ubiquitous facet of modern economic life. With each swipe, tap, or click, individuals engage in a complex dance of financial transactions, often facilitated by the convenience and flexibility offered by credit cards. Yet, as these plastic rectangles permeate deeper into everyday transactions, a pertinent question arises: are we reaching a saturation point in the credit card market?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Credit Card Data Book Part 1: Environmental Factors

Number of Credit Card Accounts (in Millions)

• 489 – Q3 2019
• 506 – Q3 2020
• 520 – Q3 2021
• 555 – Q3 2022
• 590 – Q3 2023

* These counts could be duplicated for joint accounts

Source: New York Fed Consumer Credit Panel/Equifax

About Report

This annual report by Javelin Strategy & Research—the first of two parts, this one looking at external factors and their impact on the credit card market—finds that the leading indicators point toward stability. Unemployment and bankruptcies are low, and inflation at last seems to be cooling. Accordingly, 2024 sets up as another blockbuster year for credit acquisition as card products remain enormously popular with consumers. 

The overall outlook for 2024 no longer looks as bleak as it did a year ago, but there are some concerning indicators on the horizon (notably, a low rate of personal savings). U.S. households were put through the wringer in 2023 by high inflation and other stressors. As 2024 proceeds, Javelin looks at the external factors affecting credit cards and assesses the way forward for issuers. 

The post Is the Credit Card Market Approaching Saturation? appeared first on PaymentsJournal.

In the dynamic and rapidly evolving landscape of global commerce, Latin America stands out as a region of particular interest and complexity when it comes to payment methods. With a diverse mix of economies ranging from emerging markets to more developed financial systems, the tapestry of payment preferences and innovations across this vibrant region offers a unique view into the challenges and opportunities of catering to Latin American consumers and businesses. As digital transformation accelerates, understanding the nuances of payment methods in Latin America is essential for stakeholders looking to navigate this promising yet intricate market.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Latin American Payments: The Emerging View From South of the Border

Top 4 Payment Methods in Latin America Used at Least 5 Times per Month

• 77% – cash
• 72% – debit card
• 64% – credit card
• 53% – digital wallet

Source: Accenture 2022 Global Consumer Payments study

About Report

Latin America—as a region and as ground being seeded for the future of payments—is vast, diverse, and resistant to attempts to bring it into homogeneity. The region encompasses around two dozen countries with their own currencies, monetary policies, histories, and trajectories with regard to financial infrastructure and development. Amid these variables, a new age in payments is rising, being marked by instant payments, greater financial inclusion, and an atmosphere that is conducive to disruption by fintech startups, as well as by a lagging approach to data capture and leverage.

This Javelin Strategy & Research report looks at the changing payments landscape through those lenses, outlining the broad trends afoot in Latin America and the factors that have made it an area both teeming with payments innovation and facing significant hurdles to overcome.

The post Top 4 Payment Methods in Latin America appeared first on PaymentsJournal.

In the swiftly evolving landscape of digital payments, mobile wallets have emerged as a cornerstone for transactions, offering users unprecedented ease, security, and speed. These digital vaults not only streamline purchases but also serve as hubs for loyalty rewards, tickets, and coupons, melding the physical and digital realms of commerce. Yet, the foundation of their functionality—the methods consumers use to fund these wallets—varies widely and plays a pivotal role in their adoption and usage. From direct bank transfers and linkages to credit and debit cards, to more innovative approaches like linking loyalty points or even cryptocurrency accounts, the ways in which users can fuel their mobile wallets are expanding.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Incentivizing Consumers Toward Debit Payments with Rewards

Top 5 Methods Consumers Use to Fund Mobile Wallets

• 65% of consumers use debit card to fund mobile wallet.
• 53% of consumers use credit card to fund mobile wallet.
• 36% of consumers use the balance within the app to fund mobile wallet.
• 26% of consumers use direct debit from a bank account to fund mobile wallet.
• 16% use prepaid card to fund mobile wallet.

Source: Javelin Strategy North American PaymentsInsights, July 2023

About Report

Consumers increasingly use debit cards for various payments. Most consumers regularly pay for everyday purchases and bills with debit cards across physical and online channels. Rewards can help expand debit card spending to other categories. Always cost-conscious, consumers seek rewards that can lower their overall cost. Cashback is the most appealing incentive.

Many issuers have shifted their focus from debit card rewards to value-added features. Most large issuers do not offer debit card rewards but provide other checking account benefits. And with consumers buying more on mobile devices, issuers and retailers are collaborating to target e-commerce shoppers and drive transaction volumes. The opportunity is large.

The post How Are Consumers Funding Mobile Wallets? appeared first on PaymentsJournal.

The digital asset ecosystem, a burgeoning domain of innovation and investment, presents a myriad of opportunities for users to engage, contribute, and benefit from its growth. From the novice investor dipping their toes into the waters of cryptocurrency to the seasoned developer building decentralized applications (dApps), this ecosystem is as diverse as it is dynamic. Users participate in various capacities, including trading and holding digital assets, contributing to blockchain security through mining or staking, exploring the realms of non-fungible tokens (NFTs) for digital ownership and artistic expression, and leveraging decentralized finance (DeFi) platforms to access financial services without traditional intermediaries.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Roles of Digital Assets Within Investment Strategies

Users’ Preferences for Participating in the Digital Asset Ecosystem

• 78% – Buy & Hold
• 39% – NFTs
• 30% – Staking
• 25% – DeFi Lending

Source: Javelin Strategy & Research, 2023

About Report

As various cohorts of investors look for ways to outperform equities and inflation, an increasing number are turning toward products within the digital asset ecosystem. Participation in decentralized finance comes with a different set of protocols and risks than traditional investing, but it also has considerable upsides, including allowing investors to act as their own banks. 

This Javelin Strategy & Research report looks at various methods of digital asset investment, some of the risk factors involved, and how the landscape is likely to change in the coming years. The activity within decentralized finance and traditional finance points toward substantial adoption of digital assets. As more institutions allocate resources and build out applications and use cases, the headwinds that have blown against the nascent industry are likely to shift and become tailwinds. 

The post How do Users Participate in the Digital Asset Ecosystem? appeared first on PaymentsJournal.

In the evolving landscape of personal finance, reloadable prepaid cards are emerging as a pivotal tool for consumers seeking flexibility, security, and control over their spending. As these products gain popularity, understanding the likelihood of consumers to adopt reloadable prepaid cards becomes crucial for financial institutions, retailers, and fintech companies aiming to meet the changing needs of the market.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 20th Annual U.S. Open-Loop Prepaid Card Market Forecast, 2023-2027

In the next 12 months, do you intend to purchase more or less reloadable prepaid card products?

• More likely to purchase: 21%
• Purchases will stay the same: 35%
• Less likely to purchase: 16%
• Will not purchase any reloadable prepaid cards: 16%
• Don’t know: 11%

Source: Javelin Strategy & Research

About Report

Javelin Strategy & Research continues its annual series on market trends with this focus on the open-loop prepaid market. Javelin forecasts strong and steady growth in the open-loop prepaid ecosystem, with the largest segments, general-purpose open-loop gift and financial services cards, trending strongly to drive the overall market. Consistent with past years, economic conditions play a large role in the outlook of individual products, and trends will be graded against comparisons with overall economic activity. Regulatory advances and reduced inflationary pressure should help advance products such as benefit cards and general-purpose cards, which can offset higher-interest credit spending. Conversely, macro factors such as positive economic trends, reduced unemployment, and political division will slow products such as unemployment benefit cards and cards related to Temporary Assistance for Needy Families.

Javelin’s research indicates that American buyers have a positive outlook on the prepaid market as a whole, with strong usage and upward trends in intent to buy. The research highlights healthy spending patterns in prepaid cards as well as in the frequency of purchases.

The post Will You Purchase Reloadable Prepaid Cards? appeared first on PaymentsJournal.

Virtual commercial cards are revolutionizing the way businesses manage their expenses and handle transactions. As digital equivalents of traditional physical credit cards, these innovative financial tools offer enhanced security, flexibility, and control over company spending. Tailored specifically for the digital age, virtual commercial cards generate unique card numbers for each transaction, greatly reducing the risk of fraud and unauthorized use. This technology not only streamlines the procurement and payment processes but also provides businesses with real-time visibility into their financial operations.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: North America Commercial Card Market Review and Forecast, 2022-2027

Virtual Commercial Card Outgoing Payment Usage by Company Size (2022)

• 24% – less than $1 billion
• 54% – $1 billion to $4.9 billion
• 38% – greater than $5 billion

Source: Javelin Strategy & Research

About Report

This annual Javelin Strategy & Research report examines the North American commercial card market. It covers the United States and Canada but excludes Mexico, which is covered in the International Commercial Card Report. This regional perspective is developed based on available data from industry experts, third-party sources, and our own estimations. Javelin excludes fleet/fuel cards and small-business cards from the analysis, focusing solely on mid-size to large-market corporates, including governments.

Inflationary concerns and tighter money policies continue to affect business spending in the United States and Canada. As business-related travel and spending continue their rebound from the effects of the COVID-19 pandemic, other factors have emerged, including the increased use of virtual cards (for reasons of greater spending control and better guards against fraud).

The post What Company Size Most Use Virtual Commercial Cards? appeared first on PaymentsJournal.

The landscape of payment cards has witnessed significant shifts, reflecting broader changes in consumer preferences, technological advancements, and the evolving financial ecosystem. As individuals and businesses navigate through the complexities of the global economy, the types of payment cards used—ranging from traditional credit and debit cards to innovative digital wallets and prepaid cards—play a pivotal role in shaping purchasing behaviors.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 20th Annual U.S. Closed-Loop Prepaid Card Market Forecast, 2023-2027

Top 5 Payment Cards Used in 2023

• 82% – Major credit card usable anywhere
• 67% – Major debit card usable anywhere
• 37% – In-store gift card
• 33% – General prepaid gift card (non-reloadable)
• 32% – Store branded credit card

Source: Javelin Strategy & Research

About Report

With this report, Javelin Strategy & Research continues its annual series on market trends in the closed-loop prepaid market. In general, Javelin expects a stable environment for the prepaid ecosystem. Top categories such as in-store gifting should enjoy continued healthy growth, whereas other areas, such as transit, are strong but ripe for disruption. Economic conditions continue to make a large impact on overall market growth. Lessening budgetary and inflationary pressure should benefit the areas of consumer choice but inhibit the growth of items that depend on cost-of-living adjustments. Products such as campus cards and tolling will continue to rebound from the 2020-21 pandemic era.

Consumer sentiments remain positive overall, with American buyers showing strong belief in the closed-loop market. Javelin research highlights healthy spending patterns in prepaid cards as well as the frequency of purchases, with a prime opportunity to capitalize on consumers’ willingness to purchase more prepaid cards in the coming year.

The post What Payment Cards Have Been Used the Most? appeared first on PaymentsJournal.

Cryptocurrency has surged in popularity, attracting a diverse range of individuals and institutions. This innovative payment method, which operates independently of a central authority, offers a blend of financial freedom, potential for growth, and technological intrigue. From their decentralized nature that promises greater control over personal finances to the allure of potentially lucrative investments driven by market volatility, cryptocurrencies are more than just a new way to pay; they represent a fundamental shift in how we perceive and interact with money in a digital age. What makes crypto attractive?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: The Continuing Case for Cryptocurrency in Cross-Border Payments

What Is Most Appealing About Crypto?

• 37% – the potential for a high return on investment
• 29% – transacting globally
• 17% – the potential for lower transaction fees
• 16% – the perceived ability to transact anonymously

Source: Javelin Strategy & Research – 2023

About Report

The challenge of making cross-border payments faster, less expensive, more accessible, and more transparent has given rise to fintechs, working groups, initiatives by legacy players in finance, and others, all focused on making these difficult transactions more scalable and digestible. Meanwhile, the larger themes of payments evolution—notably the widening field of instant payments and a push toward open banking and interoperability—have spawned new tools for tackling old problems.

This Javelin Strategy & Research report looks at cross-border payments and the varied reasons for their inherent difficulties, focusing on cryptocurrencies and digital assets as tools for solving—or lessening—those problems. Cross-border payments represent a massive opportunity for innovators and disruptors, and the cryptocurrency industry can claim both mantles. There is also much competition from other forms of money movement—notably systems like India’s Unified Payments Interface and Brazil’s Pix—that are seeking to redefine the space. The advantage in recasting cross-border payments will go to the innovators that can bridge the historical gaps seamlessly and at scale.

The post What Makes Crypto Attractive? appeared first on PaymentsJournal.

In the rapidly evolving landscape of financial technology, fintech acquisitions have become a pivotal aspect of industry growth and innovation. As traditional financial institutions and tech giants alike dive headfirst into this dynamic market, the spectrum of fintech acquisitions reveals a diverse range of technologies and services reshaping the way we handle money. From advanced payment solutions and blockchain technology to AI-driven financial management tools, these acquisitions not only reflect the growing appetite for cutting-edge fintech but also underscore the strategic shifts occurring within the global financial sector.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Global Commercial Payments Growth and Fintechs: Partner, Buy, or Go Organic

Top 5 Areas of Fintech Funding and Valuations in 2022

• $18.0- Payments
• $17.7 – Crypto
• $13.1 – Financial Management
• $12.9 – Wealth Management
• $11.6 – Mortgage

(in billion of U.S. dollars)
Source: ABN-AMRO Ventures 2023

About Report

Amid the rapid growth of payments flowing between businesses, enterprises in the payments space are looking for ways to grab market share while grappling with a host of challenges: lean staffs, high interest rates, and getting up to speed on new instant payment instruments. This Javelin Strategy & Research report lays out the possible routes to growth, how enterprises should go about assessing themselves and their strategies, and the possibilities and perils ahead.

The report looks at the current state of the market, assesses the benefits and downsides of each approach to growth, looks at leading examples, and makes recommendations about how to structure a strategy. Further, it looks at capital markets and how they affect growth strategies and defines the differences among approaches anchored on responding to authentic demand, maintaining relevance, and chasing after shiny new toys. 

The post Fintech Acquisitions Cover What Areas? appeared first on PaymentsJournal.

As companies increasingly globalize, the need for efficient and strategic business travel becomes more pronounced. The role of corporate cards in this domain is not just a matter of convenience but a vital tool for managing expenses, leveraging analytics for smarter decision-making, and ensuring compliance with corporate policies.

The integration of commercial cards and business travel has become an indispensable tool for companies seeking efficient and streamlined financial management. As we delve into the multifaceted world of business travel, it’s crucial to understand the different types that modern enterprises engage in. From domestic jaunts to international sojourns, and from individual business trips to large-scale corporate retreats, how are commercial cards employed to meet diverse corporate travel needs?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: International Commercial Credit Cards: Market Review and Forecast, 2022-2027

Likelihood of Global Business Travel by Type

• 28% – sales/account management meetings with current or prospective customers
• 20% – internal company meetings with colleagues
• 18% – conferences, trade shows, or industry events
• 14% – service trips
• 9% – employee training or development

Source: Global Business Travel Association, 2023

About Report

As business travel globally continues to recover from the COVID-19 pandemic, resulting in some shifts in emphasis by companies, the corporate card remains the workhorse from a global perspective, with a range of use cases, including travel and expense and procurement. Meanwhile, virtual cards are emerging as a strong product for growth, and the rise of instant payments could cut into card volumes.

This annual Javelin Strategy & Research report examines the international commercial card market from a regional perspective. This report covers Western Europe, Asia Pacific, Latin America and the Caribbean, and Central and Eastern Europe. This regional perspective is developed based on available data and is not exhaustive of all countries globally. We exclude fleet/fuel cards and small-business cards from our analysis, focusing solely on mid-size to large-market corporates.

The post Top 5 Types of Global Business Travel appeared first on PaymentsJournal.

In the intricate world of financial operations, interchange revenue stands as a critical yet often misunderstood component. How financial institutions allocate interchange revenue is a sophisticated mechanism. Interchange revenue is a significant stream of income derived from card-based transactions. Understanding this allocation process is crucial for comprehending the economic interplay between banks, merchants, and consumers.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Revenue Dynamics of Debit Cards Since Dodd-Frank

Top 5 Components of Interchange Fees

• 44% – issuer rewards
• 35% – issuer other costs and profit margin
• 9% – issuer processing
• 4% – network processing
• 4% – network servicing

Source: Federal Reserve Bank of Kansas City

About Report

Amid the ever-shifting payments landscape, debit also stands to be transformed by changing regulations and shifting consumer habits. New routing regulations could have an impact on cost and revenue, given the flourishing world of e-commerce and mobile payments. Proposed federal legislation on credit cards could blunt popular rewards programs and shift usage toward debit cards.

This Javelin Strategy & Research report looks at the terrain of debit interchange—what it is, how costs rise and fall, how it is used by issuers—and considers the various factors that could affect it as financial institutions look to boost their interchange revenue and merchants try to control their own costs.

The post How is Interchange Revenue Allocated by Financial Institutions? appeared first on PaymentsJournal.

In the rapidly evolving world of financial transactions, the Request for Payment (RfP) system emerges as a game-changer, offering unparalleled efficiency and convenience. This innovative approach to payments revolutionizes the traditional billing process, allowing businesses and individuals to request payments directly within a secure banking environment. The advent of RfP not only simplifies transactions but also enhances the control and flexibility for both payers and payees.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: How Financial Institutions Can Plot Their Instant Payment Strategy

6 Benefits of Request for Payment

• 32% – avoiding late payment
• 26% – immediate confirmation that payment was received
• 19% – immediate payment posting/transfer of funds
• 13% – faster option
• 5% – more secure option
• 5% – simpler option

About Report

Consumers and businesses alike are clamoring for faster and easier payment options. With the recent launch of FedNow, as well as the continued presence of The Clearing House’s RTP network, instant payments are poised to transform money movement in the United States. This will require careful consideration and planning by financial institutions as they assess the needs of their customer bases, the potential for growing revenue, and the products and services they want to push out to consumers and business clients.

This Javelin Strategy & Research report looks at U.S. instant payments, assessing the differences between FedNow and RTP, the essential use cases, and the factors financial institutions must sort through as they plot out an instant payment strategy.

The post What are the Benefits of Request for Payment? appeared first on PaymentsJournal.

In the ever-evolving landscape of retail, the methods consumers use to pay for their in-store purchases are rapidly changing, reflecting broader shifts in technology and consumer preferences. There is a diverse array of payment options now available, ranging from traditional cash and credit cards to emerging digital wallets and contactless technologies.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Global A2A Retail Payment Systems: Lessons for the U.S.

Preferred Payment Methods for In-Store Purchases

• 39% prefer swiped/chip card
• 24% prefer contactless card
• 19% prefer cash
• 7% prefer mobile wallet

About Report

The recent launch of FedNow—the Federal Reserve Bank’s instant payment service—seems certain to be a game-changer in payments. The ability of financial institutions to offer their customers 24/7/365 access to transactions that are initiated, cleared, and settled in seconds will spur the development of new payment methods, deliver new use cases for older methods, and change consumer expectations and behaviors.

One of those older methods—account-to-account (A2A) transfers—might be made new again in a world of ubiquitous instant payments. A2A payments, traditionally the province of sellers and suppliers, could see a renaissance in merchant sales now that the power to engage them is being pushed out to a wider array of payers and payees. This Javelin Strategy & Research report looks at A2A payments through the lens of successful initiatives in India and Brazil, detailing how their breakthroughs could be mimicked in the United States—and how various stumbling blocks could hinder such efforts.

The post Top 4 Preferred Payment Methods for In-Store Purchases appeared first on PaymentsJournal.

While the onset of the COVID-19 pandemic initially disrupted various aspects of our lives, one unexpected consequence emerged in the realm of personal finance—revolving credit card debt balances experienced a surprising dip. In the face of economic uncertainty, lockdowns, and widespread financial strain, consumers exhibited a cautious approach to their spending, leading to a temporary decline in the reliance on credit cards. However, as the dust settles and the world navigates the path to recovery, a noteworthy shift is occurring.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: The State of the U.S. Credit Card Industry

Average Revolving Debt by Account

• Q1 2019 – $1,756.78
• Q1 2020 – $1,746.15
• Q1 2021 – 1,522.73
• Q1 2022 – 1,565.79
• Q1 2023 – $1,721.16

Source: FRED Federal Reserve Bank of St. Louis, Javelin Strategy & Research, 2023

About Report

This Javelin Strategy & Research report provides a view of the U.S. credit card payment system. It provides a perspective on the ecosystem’s profitability, consumer demand, issuer stability, credit quality, and external factors. We illustrate how market performance varies among the 12 top issuers driving the market and the remaining 3,000 smaller issuers. We suggest that mandated stress tests from Dodd-Frank, or a down-market surrogate, help ensure stability throughout the network.

Overall, the industry is sound, though downstream economic issues can disrupt the norm, particularly at the lower end of the market, where charge-offs seize bank profits and create marginal returns for smaller players.

Consumer demand is high, as evidenced by growing revolving debt and cardholder growth, which outpace population growth by eight times. A significant regulatory bill, the Credit Card Competition Act, was introduced to the Senate in June 2023 but has a long way to go before it is enacted. If the action does take effect, expect lenders to protect their margins by reducing weaker customer segments.

In short, issuer profits are substantial, demand is high, and general risk is under control. However, if there is a severe economic downshift, expect credit to tighten and operating expenses to rise.

The post Credit Card Revolving Debt Balances Rise Again appeared first on PaymentsJournal.

In the ever-evolving landscape of digital payments, security remains a paramount concern as technology advances. As we navigate a world increasingly reliant on cashless transactions, the conventional methods of authentication, such as passwords and PINs, are being surpassed by more sophisticated and secure alternatives, such as biometric authentication. Among these, facial and fingerprint scans have emerged as pioneers in redefining payment security.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Tracking Emerging Payments Technologies:Adoption is Not Enough

Biometric Authentication Methods Used for Any Reason
(younger, tech-savvy, less affluent)

• 56% use fingerprint scans
• 42% use facial recognition
• 21% use voice
• 3% use iris scanning
• 19% use none of these

Source: 2023 North American PaymentsInsights—US: Digital Transactions and Emerging Technologies

About Report

In 2023, for the first time, the North American PaymentsInsights (NAPI) Digital Transactions and Emerging Technologies Survey captures moment-in-time data about the metaverse, biometric authorization, privacy and security, and digital ID use. The key takeaway from this survey data is that adoption is not enough as a metric to understand consumers’ use of emerging technologies. Understanding where payment habits are going—and thus, avoiding costly strategic missteps—requires a granular understanding of different market segments.

This Javelin Strategy & Research report delves into the data generated by the survey, looking at key directional indicators about consumers’ knowledge of and experience and comfortability with these emergent technologies and offering a guidepost for where their habits are going.

The post Facial and Fingerprints Lead the Way for Biometric Authentication appeared first on PaymentsJournal.

In times of economic uncertainty, effectively managing one’s finances becomes paramount. Prepaid cards have emerged as a powerful tool for individuals seeking to navigate turbulent financial waters with greater control and confidence. Unlike traditional credit or debit cards, prepaid cards allow users to set specific spending limits, ensuring that they only access funds they have allocated for specific purposes. This innovative financial instrument offers a practical solution for those looking to maintain disciplined budgets and exercise prudent fiscal habits, ultimately empowering individuals to weather economic challenges with resilience and foresight.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2023 Prepaid Regulatory Update

Likelihood to use prepaid cards to manage budget and control spending in the next 12 months

• 17.48% – Not at all likely to use prepaid cards to manage budget and control spending
• 21.17% – Unlikely to use prepaid cards to manage budget and control spending
• 27.3% – Likely to use prepaid cards to manage budget and control spending
• 28.83% – Very likely to use prepaid cards to manage budget and control spending
• 5.21% – Don’t know to use prepaid cards to manage budget and control spending

About Report

The prepaid industry continued to adapt to new regulatory and policy changes enacted in 2023. Policy changes meant to fight inflation, avoid recession, and address other macro conditions continue to be the primary drivers of change in the prepaid market. Secondary drivers include annual cost of living adjustments to regulated programs such as nutrition assistance and health savings accounts (HSAs).

Other specific changes reflect the need to specify products in the broader ecosystem. In retail these include efforts to curb theft and fraud as well as tighter enforcement of cash refund and escheatment policies. Legislative actions had broad coverage from allowing additional states to permit sports gambling to working to reduce use of plastics in the card industry.

Global changes reflected similar themes. Top regulatory concerns continue to be money laundering, theft, and fraud as well as reducing environmental waste. Other global focus areas include regulations on fees and charges and availability cross-border payments.

The post Will Prepaid Cards Help Battle Economic Conditions? appeared first on PaymentsJournal.

In today’s dynamic financial landscape, choosing the right credit card is a pivotal step toward achieving your financial goals. Whether you’re a seasoned cardholder or a newcomer to the world of plastic, understanding the factors that cater to your specific needs is paramount. From enticing rewards programs to low-interest rates and flexible payment options, the array of offerings can be overwhelming.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Understanding Credit Card Rewards: A Successful Model Under Threat

Top 5 Factors Desired by Credit Card Applicants

• No annual fee – 62% of consumers seeking a new credit card
• An attractive points/rewards program – 45% of consumers seeking a new credit card
• Good credit line – 42% of consumers seeking a new credit card
• Low APR (interest rate) – 40% of consumers seeking a new credit card
• The card had strong fraud protection features – 39% of consumers seeking a new credit card

About Report

Credit card rewards programs are expensive and intricate for issuers to maintain, but they are also enormously popular with cardholders and a significant driver of customer acquisition. This Javelin Strategy & Research report looks at the current landscape for rewards programs, including possible responses by the industry should Congress pass the Credit Card Competition Act. The legislation, if enacted, could put rewards programs on a path toward significant reductions in offerings and inclusion.

In the meantime, card issuers continue to look for ways to innovate with their reward programs for cardholders, including early access to premier events and experiences, bonus rewards days for spending, and even rent-based cashback rewards. Rewards related to travel and money back to customers continue to be strongly popular with cardholders.

The post What Factors are Desired by Credit Card Applicants? appeared first on PaymentsJournal.

In the dynamic landscape of digital finance, the convergence of cryptocurrency and lightning-fast transaction networks has ushered in a new era of financial efficiency and accessibility. The advent of blockchain technology promised a decentralized future, but it is the Lightning Network that stands at the forefront of this revolution, offering a solution to one of the most pressing challenges in the world of digital currencies: scalability. As traditional payment systems grapple with issues of speed and cost, the Lightning Network emerges as a beacon of hope, enabling near-instantaneous, low-cost transactions on a global scale.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: The Limits of Crypto and the Rise of Layer 2s

Growth of Lightning Network Transaction Volume in USD (millions)

• July 2018 – 0.17
• July 2019 – 9.75
• July 2020 – 8.8
• July 2021 – 55.26

Source: BitcoinVisuals

For more recent data, see the Javelin Strategy & Research’s Report: The Limits of Crypto and the Rise of Layer 2s

About Report

Truly decentralized blockchains attract participation that provides worldwide transparency and reinforces why they were developed in the first place. But blockchain networks also have a problem: As the number of network users increases, so do network congestion and transaction costs. This is where Layer 2 protocols come in.

In their simplest forms, Layer 2s leave transaction execution and activities on the base layer blockchain while handling most other activities off the chain. This, in turn, eases congestion and lowers costs. This Javelin Strategy & Research report delves into Layer 2s, the blockchain issues they can alleviate, and the challenges associated with implementing them.

The post Growth of Lightning Network Transactions for Cryptocurrency Payments appeared first on PaymentsJournal.

In an era where financial transactions are increasingly digitized, credit cards have become indispensable tools for millions of consumers. However, the convenience of plastic comes at a cost. As the financial landscape continues to evolve, the specter of credit card debt looms large over households across the nation.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: A Mid-Year View of U.S. Credit Cards

Credit Card Debt in the U.S.

• In Q4 2018, credit card debt was $0.848 trillion.
• In Q4 2019, credit card debt was $0.927 trillion.
• In Q4 2020, credit card debt was $0.819 trillion.
• In Q4 2021, credit card debt was $0.856 trillion.
• In Q4 2022, credit card debt was $0.986 trillion.

Source: Federal Reserve Bank of New York, 2023

About Report

The consumer credit card market is undergoing significant changes, and issuers must be ready to adapt. In this report, Javelin Strategy & Research tracks key market indicators to demonstrate the mounting risk that may hurt issuers at the end of the year and into 2024. We find that consumer credit payment volumes continue to grow and debt increases—a signal that consumers are not paying down their balances. We also see charge-offs rising across banks of all sizes, and these are alarmingly high among small and midsize banks. These banks must carefully manage their risk and cover loan losses to protect their bottom lines.

We also examine the impact of student loan payments resuming in October, which will cause a significant strain on consumer spending and may exacerbate growing issues in household budgets. Issuers may respond to this audience through targeted marketing campaigns and promotional offers. In addition to these areas, we look at the potential impact of future regulations, most notably the Credit Card Competition Act of 2023 and its potential effects on the future of consumer credit cards. We maintain that passage of the act into law will cause significant changes to the U.S. credit card rewards landscape and may not work as intended.

The post Where is Credit Card Debt Headed? appeared first on PaymentsJournal.

In the wake of the Federal Reserve’s FedNow initiative, the global e-commerce landscape is on the cusp of a transformation. With the advent of FedNow, the stage is set for an unprecedented surge in Account-to-Account transactions, fundamentally reshaping the way commerce is conducted on a global scale. This visionary system’s real-time settlement capabilities and instantaneous accessibility have paved the way for an era of convenience and efficiency in digital commerce.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: The Expanding Role of A2A Transactions

Global A2A Transaction Volume (2021, 2022, 2026 estimated)

• $463B – global A2A transactions in 2021
• $525B – global A2A transactions in 2022
• $896B – global A2A transactions estimated for 2026

Source: FIS Global Payments Report for 2023, Statista 2023, Javelin Strategy Research

About Report

As consumers’ desire for efficient, on-demand, and seamless digital experiences expands, account-to-account (A2A) transactions loom as a contender for their payments. Faster payment rails, including the coming FedNow service, will create new opportunities for use cases across the payments ecosystem.

A2A holds promise for consumers and merchants alike. Consumers can get the kind of high-quality user experiences they crave from restaurant ordering and streaming services, and merchants can cut down on interchange costs by pushing their customers to adopt the payment method.

The post Will Global A2A Transactions Increase? appeared first on PaymentsJournal.

In an era dominated by digital innovation, the paradigm of financial transactions has undergone a transformative shift. Mobile wallets, once a novel concept, have now become an integral part of our daily lives, revolutionizing the way we manage, spend, and transfer money. From streamlined convenience to heightened security measures, the rise of mobile wallets has ushered in an era of unprecedented financial fluidity. What generation leads in mobile wallet usage?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Apple Savings and the Emerging Personal Payment Stack

Mobile Wallet Usage by Generation

• 30% of Gen Y / Millenial users use mobile wallets often
• 21% of Gen Z users use mobile wallets often
• 17% of Gen X users use mobile wallets often
• 4% of Baby Boomer users use mobile wallets often
• 0% of the Silent Generation users use mobile wallets often

About Report

Apple has launched a Savings account attached to Apple Card, delivered through the Apple Wallet app. From a payments perspective, Savings represents a new attempt at traditional bank cross-selling — one that uses payment functionality as the top of the customer acquisition funnel rather than the financial institution that offers the payments features. An Apple Wallet/Pay-centric approach restricted to users of Apple devices limits the reach of the Apple financial ecosystem to the admittedly large and attractive customer base of Apple devices. Future success for Apple’s strategy rests on two pillars: 1) continued growth and retained adoption of Apple Wallet, which is contingent on 2) Apple’s retaining the ability to restrict access to the near-field communication chip in phone and watch devices.

Should Apple succeed at using Pay to drive customers into other financial products such as Card, Savings, and Pay, it could emerge as a personal payment stack service provider, distributing a full suite of financial products and leveraging the broader Apple relationship to deliver additional value to consumers.

The post Who Leads in Mobile Wallet Usage? appeared first on PaymentsJournal.

In an era defined by convenience and flexibility, general-purpose prepaid cards have emerged as powerful financial tools, revolutionizing the way consumers manage their money. These versatile cards offer a dynamic alternative to traditional banking, allowing individuals to navigate a range of transactions with unprecedented ease and security.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Prepaid Healthcare Options Expanding

Top 5 Sources Used to Receive a General-Purpose Prepaid Card in the Past 12 Months

• 55% – another source (examples include payroll cards, unemployment, EIP program, commissions)
• 36% – consumer rebate or incentive payment
• 24% – government programs (i.e. unemployment, SNAP, EIP, etc.)
• 16% – store credit/returns
• 16% – redeemed points or cash rewards

About Report

The prepaid healthcare payments market remains a robust and growing opportunity. Financial institutions, fintechs, and other players within the payments side of healthcare can benefit from rising use cases of existing and emerging products to spur an increased volume of transactions and higher spending totals. Costs of healthcare services continue to outpace inflation, which provides ample opportunity to grow revenues through participation in programs such as flexible spending accounts and health savings accounts.

Employers can also better serve their employees in a competitive environment by increasing benefits and incentives. These programs can be as simple as small-value incentive programs linked to employer-sponsored healthcare plans that reward individuals with gift cards or other financial rewards for good health outcomes. While all sides of the ecosystem must be aware of regulatory changes, the overall market continues to push for greater inclusion rather than restriction.

The post What General-Purpose Prepaid Cards Are Received By Consumers? appeared first on PaymentsJournal.

In an increasingly digitized world, where financial tools are at our fingertips, the quest for the perfect credit card has become a meticulous process guided by strategic research. As new applicants navigate the vast landscape of credit options, a plethora of methods have emerged to aid in the pursuit of the most fitting card. From harnessing the power of online comparison tools to delving into the intricacies of terms and conditions, credit card seekers are employing an array of techniques to inform their decisions.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Third-Party Comparison Websites: A Tried-and-True Method for Digital Marketing.

Top 6 Methods Used for Credit Card Research Among New Applicants, 2022

• 38% of new applicants use the Primary FI branch
• 25% of new applicants use the primary FI website
• 22% of new applicants use an other FI branch
• 21% of new applicants use an other FI website
• 18% of new applicants use an internet search
• 16% of new applicants use credit card comparison websites

About Report

You may not recognize the name “third-party comparison” websites (TPC), but you most likely have seen these firms operate under the trade names of Bank Rate, Credit Karma, and Credit Sesame, to name a few. Some consumers find these sites helpful as they consider new credit cards. And for credit card issuers, TPCs are a channel to book new accounts, the lifeblood of every credit card organization.

This report is concerned with the dynamic between credit card issuers and third-party comparison websites, which are sites not owned or operated by issuers that provide information about credit cards in aggregate. Through a variety of proprietary methodologies, often including an analyst team, these websites track and rate credit cards as well as several other financial products. The goal of TPC websites is to drive customers toward applications with their partners, which in turn pay these sites for their efforts in acquiring new customers. Some sites disclose their commercial relationships as issuer affiliates and receive cash bounties for new accounts. This may influence where prospective cardholders are driven or prioritize offers in favor of the partner.

TPC websites are a more robust form of affiliate marketing, and the marketplace has evolved to several large contenders. In today’s market, we found that 16% of customers use TPC in their research journey for a new card product, which is particularly skewed toward top credit card issuers.

The post What Method is Used for Credit Card Research among New Applicants? appeared first on PaymentsJournal.

In today’s complex and interconnected business landscape, the specter of occupational fraud looms as an ever-present threat to organizations of all sizes and industries. Often originating from within the very ranks of trusted employees, occupational fraud encompasses a wide array of deceptive activities that result in financial loss, reputational damage, and operational disruption. As businesses strive to navigate an environment of increasing technological sophistication and evolving work paradigms, understanding the nuances of occupational fraud becomes paramount.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Commercial and Enterprise Payments Fraud: 2023 Edition

Occupational Fraud Percentage by Type

• 47% – Asset misappropriation only
• 32% – Asset misappropriation + corruption
• 12% – Corruption only
• 5% – Corruption + asset misappropriation + financial statement fraud

Source: Association of Certified Fraud Examiners, 2022

About Report

Fraud in commercial payments is a rising concern, with Javelin Strategy & Research data showing that businesses expect it to increase over the coming year. The reasons for pessimism are many—the ascendancy of digital payments, the complexity of global supply chains, increasingly sophisticated criminal schemes—and the threats to companies are internal and external.

Though fraudsters often seem to have the upper hand with their schemes, companies can counter effectively through the smart deployment of technology along with a corresponding shoring up of security measures and staff training to recognize the threats.

The post What Type of Occupational Fraud is Most Prevalent? appeared first on PaymentsJournal.

In an increasingly digitized world, where convenience often goes hand in hand with vulnerability, the realm of financial transactions has become a battleground for both consumers and cybercriminals. As technology evolves, so do the methods employed by fraudsters to exploit weaknesses in payment systems, leaving individuals and businesses grappling with the ever-present threat of financial fraud.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Commercial and Enterprise Payments Fraud: 2023 Edition

Payment Methods Subject to Fraud by Type (2022)

(percent of organizations)

• 63% – Checks
• 36% – Corporate/commercial credit cards
• 31% – Wire transfers
• 30% – ACH debits
• 30% – ACH credits

Source: AFP, 2023

About Report

Fraud in commercial payments is a rising concern, with Javelin Strategy & Research data showing that businesses expect it to increase over the coming year. The reasons for pessimism are many—the ascendancy of digital payments, the complexity of global supply chains, increasingly sophisticated criminal schemes—and the threats to companies are internal and external.

Though fraudsters often seem to have the upper hand with their schemes, companies can counter effectively through the smart deployment of technology along with a corresponding shoring up of security measures and staff training to recognize the threats.

The post Top 5 Payment Methods Subject to Fraud appeared first on PaymentsJournal.

As businesses continue to rely on large vehicles for transportation and distribution purposes, fueling costs have become a major concern. With the price of fuel constantly fluctuating, fleet managers must find ways to ensure efficient fuel consumption while maintaining optimal performance. This involves careful budget planning, regular maintenance checks, and utilizing technology such as GPS tracking systems to monitor fuel usage. In addition, alternative fuel options such as propane, electricity, and hydrogen fuel cells may offer long-term cost savings.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Fleet Cards in 2023: An Industry in the Fast Lane

Annual Cost of Fueling at Retail Diesel Pricing per Vehicle

• $58,853 – Transit bus
• $52,179 – Class 8 truck
• $44,545 – Refuse truck
• $18,353 – Paratransit shuttle
• $8,553 – School bus

About Report

This report analyzes the market trends and developments in the commercial fleet space, with an emphasis on closed-loop” and open-loop fleet card products as well as cardless solutions. The report examines the current market offerings and how fleet card companies are addressing the needs of the modern fleet customer. It examines trends in diesel fueling, the most common method used for fueling larger vehicles, and trends in alternative fueling, including payment acceptance. Fleet electrification trends as well as public and private charging stations are also explored, and the report details our expectations for the future of fleet operations.

The post Top 5 Fueling Costs for Large Vehicles appeared first on PaymentsJournal.

Paying by check may seem outdated in our increasingly digital age, but it remains a secure and reliable payment method that many individuals and businesses still prefer. While younger generations may gravitate towards electronic payment options, older generations often appreciate the familiarity and simplicity of this form of payment. Regardless of your generation, it’s important to understand the fundamentals of check writing and ensure that your checks are accurate and timely to avoid any potential issues. Whether you’re paying rent, utility bills, or making a donation, paying by check is a trusted and time-honored method of payment that continues to serve many individuals and businesses well.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: How Pay-by-Bank Could Shake Up Payments

Preference for Paying by Check, by Generation

• 31% of the Silent Generation prefer to pay by check
• 23% of Baby Boomers prefer to pay by check
• 15% of Gen X’ers prefer to pay by check
• 8% of Millenials prefer to pay by check

About Report

As older payment methods recede, pay-by-bank is emerging as a contender at the point of sale. It allows consumers to continue using the funds in their checking accounts, as they do with ACH payments, but adds greater security with real-time authentication and confirmation of payment.

Merchants, too, benefit from the security of pay-by-bank payments, because they don’t have to store sensitive consumer information. For banks, there’s a loss of interchange revenue, but they can rework their strategies to remain the most favored payment method by their customers.

The post Paying by Check: Generational Preferences appeared first on PaymentsJournal.

Credit card usage has become a prevalent financial tool for many individuals and businesses worldwide. A credit card allows one to borrow money from a financial institution, and instead of making cash payments, the amount owed is paid off in the future. With virtually every major retailer accepting credit cards, usage has become more commonplace, and some benefits include convenience, rewards, and reliable financial protection.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Private-Label Credit Cards: Still Relevant but Losing Luster

Store-branded Credit Card Usage in the Past 12 Months, by Generation

• 30% of Gen Z have used a store-branded credit card
• 20% of Millenials have used a store-branded credit card
• 31% of Gen X have used a store-branded credit card
• 33% of Baby Boomers have used a store-branded credit card
• 37% of the Silent Generation have used a store-branded credit card

About Report

Explore the realm of exclusive credit cards with this insightful report on private-label credit cards in the United States. Often referred to as “store cards” or “white-label credit cards,” these unique products are restricted to specific merchants, enticing consumers with exclusive benefits. From promotional financing options like deferred interest to driving customer engagement with various products and services, private-label cards play a vital role in the credit card landscape. Nevertheless, this comprehensive analysis reveals the challenges and risks these cards face amidst changing market dynamics.

Discover the dynamic landscape of private-label credit cards in the United States through this in-depth report. Gain valuable insights into usage and ownership trends, delve into the offerings of significant retailers, and uncover potential risks for consumers. Additionally, explore how competitive threats, such as instant financing and buy now, pay later (BNPL) loans, are reshaping the private-label card market. As an essential part of the credit card industry, understanding the evolving landscape of private-label cards becomes crucial for businesses and consumers alike.

The post Who Has Used Store-branded Credit Cards in the Last 12 Months? appeared first on PaymentsJournal.

Buy Now Pay Later (BNPL) has revolutionized the way consumers approach shopping, offering a modern and enticing alternative to traditional payment methods. As the digital era continues to redefine consumer habits, BNPL services have swiftly emerged as a prominent force in the retail landscape, capturing the attention of millions worldwide. With its promise of flexibility, convenience, and affordability, BNPL has not only transformed the shopping experience but also challenged the established norms of personal finance. Embraced by both shoppers and merchants, this innovative payment model is reshaping the future of commerce, providing a glimpse into a world where financial freedom and seamless transactions converge harmoniously. We will look at BNPL usage.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report:Private-Label Credit Cards: Still Relevant but Losing Luster

BNPL Usage by Generation

• 36% of Gen Z have used BNPL
• 43% of Millenials have used BNPL
• 32% of Gen X have used BNPL
• 12% of Baby Boomers have used BNPL

About Report

Private-label credit cards, often known as “store cards” or “white-label credit cards,” are products that can be used only at that specific merchant’s location. Private labels often offer promotional financing, such as deferred interest, allowing retailers to drive customers toward products and services. Private-label cards are an important part of the overall credit card landscape and are widely deployed, but they are a product facing several threats.

This report provides an overview of the private-label card market in the United States. It examines usage and ownership trends, significant retailers’ offerings, and risks for consumers. The report also looks at competitive threats such as instant financing and buy now, pay later (BNPL) loans and usage. It explores how these products are changing the market for private-label cards.

The post What Generation is Most Likely to Use BNPL? appeared first on PaymentsJournal.

Credit cards have become an essential financial tool for the modern generation. While applying for a credit card may seem daunting at first, it can offer several benefits such as ease of transactions, reward points, and cashback offers. However, it’s crucial those applying understand the terms and conditions associated with the usage of credit cards.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Cobranded Credit Cards 2023

Those Who Have Applied for a Credit Card in the Past 12 Months by Generation

• 44% – Gen Y/Millenial
• 36% – Gen Z
• 29% – Gen X
• 16% – Baby Boomer
• 12% – Silent Generation

Gen Y/Millennials Were the Most Likely to Apply for a New Credit Card in 2022.

About Report

The cobranded credit card is a significant part of U.S. card portfolios at major issuers. Unlike the private-label card, the cobranded card operates on an open network allowing the cardholder to use the card outside of the merchant. These card products, which are generally aligned with travel or retail merchants, offer a way for issuers to acquire a large base of loyal customers who will generate interchange revenue. Our research shows that customers who will use rewards associated with cobrands tend to be from younger generations, which is an attractive segment for issuers looking to grow their card portfolios.

Cobranded card portfolios tend to be weighted heavily toward either the travel segment or the retail segment, with travel being the dominant segment for cobrands overall. With economic uncertainty and a potential recession looming, issuers that have generated a significant number of subprime accounts may face difficulties; however, we maintain that issuers will continue to do well overall. Cobranded cards will continue to be an important part of the market and should at least be on the radar of your organization, regardless of the size of your portfolio.

The post What Generation is Applying for Credit Cards? appeared first on PaymentsJournal.

Gift cards have become an increasingly popular option for gifting in recent years. They are convenient for both the giver and the recipient, as well as being more personal than simply giving cash. They also offer flexibility, as they can be used for a variety of items and the recipient can choose when and where they want to use it. Additionally, they are a great last-minute gift option for those who may have forgotten a special occasion. With a wide range of options available, from popular retailers to specialized businesses, there is sure to be a gift card to suit every taste and interest.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Unused Value in Prepaid Cards: Breaking the Misconceptions

Top 5 Gift Card Purchase Locations

• 36% purchased at mass merchandisers
• 35% purchased at online-only merchandisers
• 23% purchased at coffee/specialty food shops
• 22% purchased at fast food restaurants
• 18% purchased at supermarkets/grocery stores

About Report

There’s a misconception that gift cards and other prepaid products go unused, but the trends of consumer use and product growth defy that belief, creating profit centers for issuing organizations. The fact that gift cards encourage additional spending and have many other uses, such as receiving loyalty cards as an employee incentive or creating goodwill opportunities, promotes rapid redemption, thus mitigating issues with unused funds. The use of stored-value accounts emphasizes that loyalty provides extra benefits and encourages repetitive reloads, reducing the amount of unused funds that companies must account for.

To strengthen and maintain prepaid programs, organizations should communicate often with the appropriate stakeholders, such as consumers, shareholders, and employees. Communication encourages the spending of unused balances, highlights the value of loyalty programs associated with stored-value accounts, and can act as a way to avoid escheatment where it is regulated. Retailers must also be clear with policies to ensure compliance with various states’ cash-out and escheatment regulations, which can be accomplished through universal policies, proper staff training, and regular reviews of applicable regulations by location.

The post Where do Consumers Purchase Gift Cards? appeared first on PaymentsJournal.

In today’s increasingly digital and cashless world, payment cards have become an integral part of our daily lives. Whether it’s swiping, tapping, or inserting a card into a reader, these small pieces of plastic have revolutionized the way we make transactions. From credit cards to debit cards and prepaid cards, they offer convenience, security, and flexibility, allowing us to make purchases both in-person and online with ease.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Unused Value in Prepaid Cards: Breaking the Misconceptions

Payment Cards Used in the Past 12 Months

• 80% – major credit card usable anywhere
• 63% – major debit card usable anywhere
• 33% – in-store gift card
• 31% – general prepaid gift card (non-reloadable)
• 30% – store-branded credit card

About Report

There’s a misconception that gift cards and other prepaid products go unused, but the trends of consumer use and product growth defy that belief, creating profit centers for issuing organizations. The fact that gift cards encourage additional spending and have many other uses, such as receiving loyalty cards as an employee incentive or creating goodwill opportunities, promotes rapid redemption, thus mitigating issues with unused funds. The use of stored-value accounts emphasizes that loyalty provides extra benefits and encourages repetitive reloads, reducing the amount of unused funds that companies must account for.

To strengthen and maintain prepaid programs, organizations should communicate often with the appropriate stakeholders, such as consumers, shareholders, and employees. Communication encourages the spending of unused balances, highlights the value of loyalty programs associated with stored-value accounts, and can act as a way to avoid escheatment where it is regulated. Retailers must also be clear with policies to ensure compliance with various states’ cash-out and escheatment regulations, which can be accomplished through universal policies, proper staff training, and regular reviews of applicable regulations by location.

The post Top 5 Payment Cards Used in the Past 12 Months appeared first on PaymentsJournal.

Debit usage has become increasingly popular in recent years, with more and more people choosing it over credit when making purchases. Debit cards work by deducting the amount spent from a linked bank account, making them a convenient way to keep track of spending and avoiding the accumulation of debt. In addition to their ease of use, they are widely accepted and generally have lower fees than credit cards.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2023 Annual U.S. Debit Card Market Data Review

Debit Card Utilized for any Payment in Last 12 months

• 70% of Gen Z
• 64% of Millenials
• 64% of Gen X
• 61% of Baby Boomers
• 37% of the Silent Gen

About Report

The 2023 Mercator Debit Card Data Book assembles the most important metrics for debit card managers. It projects major trends and presents a case that debit cards and alternative payment products will survive in an economic downturn and continue to serve as a prime payment vehicle for households.

Debit growth was solid in 2022 and projects to remain so. It is durable as the preferred payment for everyday items, such as food, fuel, and bills. As economic conditions worsen and as new payment forms come on line, including the launch of FedNow, it should remain in favor as standalones or as preferred cards in electronic wallets.

The post Demographics Point to Younger Users in Debit appeared first on PaymentsJournal.

When it comes to making purchases, payment cards have become a popular form of payment. Payment cards can be used in a variety of ways, from swiping or inserting a physical card at a point-of-sale terminal to using the card’s information to complete an online transaction. With the convenience of payment cards, it’s no surprise that they have become a preferred payment method for both consumers and businesses.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2023 Prepaid Card Data Book: 11 Essential Metrics

Top 5 Payment Cards Used in Past 12 Months

• 80% – Major Credit Card Useable Anywhere
• 63% – Major Debit Card Useable Anywhere
• 33% – In-Store Gift Card
• 31% – General Purpose Gift Card (non-reloadable)
• 30% – Store-branded Credit Card

About Report

Both open and closed prepaid segments were impacted by the economic uncertainty of 2020–2022. Business and consumer segments began to emerge into a new and more stable overall environment. We estimate the market will react accordingly with moderate but substantial growth of 6% through 2026. While influences, led by the financial impacts of inflation as well as regulatory efforts, political changes, and other resources, can have large-scale change opportunities, they are more predictable, and organizations in the prepaid market can plan and sell with more confidence on how the market will change versus the complete market disruption that has passed.

The resulting impact is a conservative plan in every vertical touched by prepaid payments that should outpace general worldwide growth. While the International Monetary Fund pegs growth slowing from 6% in 2021 to 2.7% in 2023, Javelin believes the combination of consumer confidence, low unemployment, and additional inflationary impacted spending will allow for the predicted growth of 6% from the 2020–2026 period. Topline growth of loads in the prepaid market will likely respond to inflation, impacting growth in many aligned segments. Several areas will have particular estimated benefit led by nutritional assistance growing at 9%, open-loop general purpose cards growing at 8%, and transit also growing at 8%.

The post What Payment Cards are Used the Most? appeared first on PaymentsJournal.

Credit card balances have become an increasingly important topic for those looking to take control of their finances and improve their credit scores. Consumer spending habits play a major role in how quickly credit card balances can accumulate, and it’s important to be mindful of the impact that each swipe of the card can have. While it can be tempting to keep using credit cards to make purchases and rack up rewards points, it’s essential to keep track of your spending and pay off balances regularly to avoid accumulating high interest fees.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report:The Credit Card Data Book Part Two: Internal Dynamics

Credit Card Balances Past Five Years (in $trillions)

• Q3 2018 – $0.84
• Q3 2019 – $0.88
• Q3 2020 – $0.81
• Q3 2021 – $0.80
• Q3 2022 – $0.93

About Report

This report is the second part of a two-part annual series called the Credit Card Databook. The report explores profitability, credit risk, and portfolio dynamics to understand the market for issuers and the challenges they may face in 2023. The goal is to provide recommendations to help financial organizations strategize for the current and upcoming credit card market in the United States. Unfavorable economic conditions loom, and issuers must prepare themselves to weather the storm.

The post Are Credit Card Balances Continuing to Rise? appeared first on PaymentsJournal.

As the newest generation to come of age, Gen Z has been raised in an era of technological advancements and digitalization. As a result, it comes as no surprise that they differ from their predecessors when it comes to payment methods. Gen Z has been quick to adopt new modes of payment, such as digital wallets and mobile payments, and are also more likely to use peer-to-peer payment apps than traditional banking avenues.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Gen Z is Reaching Adulthood and Merchant Service Providers Need a Plan

Key Payment Methods Used by Gen Z Consumers

• 35% use a major debit or check card usable anywhere
• 17% use a major credit card usable anywhere
• 17% use cash

About Report

Gen Z, defined as those born in 1997 or after, must be a top priority for all merchants and their service providers. The generation includes consumers as old as 25, meaning the generation is already spending as adult consumers, and the age group’s spending will skyrocket in the years to come. Merchants need to build relationships with Gen Zers now in order to rack up sales and have relationships with young consumers that could last for decades.

But merchants, especially small- and medium-size businesses (SMB), don’t have the time or ability to really consider and incorporate Gen Z’s payment preferences. Many merchants hand off their payments operations to service providers that handle acceptance, acquiring, gateway services, and more. That means it falls to these providers, such as payment facilitators (PayFac), acquirers, and point-of-sale (POS) technology providers, to help their merchants best serve Gen Z by identifying Gen Z’s preferences and finding ways to position merchants for success.

The post 3 Key Payment Methods Used by Gen Z Consumers appeared first on PaymentsJournal.

Employee incentive programs are an effective way to motivate and reward employees for their hard work and dedication. These programs can come in many forms, from bonuses and promotions to recognition and time off. When implemented properly, employee incentive programs can lead to increased employee morale, job satisfaction, and productivity. Companies that offer these programs often see a decrease in employee turnover and an increase in overall success. It’s important for businesses to carefully design and communicate their incentive programs to ensure they are fair, achievable and align with the company’s goals and values.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: U.S. Commercial Prepaid Card Market Forecast

Top Reasons for Receiving Employee Recognition

• 62% report it was for Achievement/Recognition
• 38% report it was for Compensation
• 31% report is was for Health and Wellness Goals
• 7% report it was for Other

About Report

Javelin Strategy & Research continues its annual series on market trends with a focus on the commercial prepaid market. Javelin generally expects a positive environment for commercial closed-loop cards with steady growth in non-governmental aspects and more robust growth in government closed-loop programs. In addition, budgetary and inflationary pressure should benefit Incentive programs, while those factors, plus a return to in-store shopping, will help store credits and returns.

Open-loop commercial products will see some stagnation in the short term before recovering. The leading cause of the short-term issues will be the end of the Economic Impact Payments (EIP), a vital element of the federal response to the COVID-19 pandemic. However, the long-term outlook will grow strongly in open-loop with the return to corporate use of open-loop products for expense, event, and incentive programs.

The post Top Reasons for Receiving Employee Incentives appeared first on PaymentsJournal.

In our modern, tech-savvy world, the use of digital wallets has become increasingly popular. These virtual wallets allow for secure transactions to be made with ease, without the need for cash or card. One type of digital wallet that has captured the attention of many is the prepaid option. With a prepaid digital wallet, users can fund their account in advance, allowing for convenient spending without the worry of going over budget or overspending.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Prepaid Mobile Expanding Its Use Case in a 5G World.

Apple Pay Payment Services Used in Past 12 Months

• 21% of consumers used Apple Pay for in-store purchases only
• 32% of of consumers used Apple Pay for both online and in-store purchases
• 45% of consumers used Apple Pay for online purchases only

About Report

In short order, the mobile phone market, and with it prepaid mobile plans, have gone from simple and inexpensive voice connectivity to an emerging player as the primary path to deliver internet capabilities worldwide. Currently, the prepaid market offers a steady but varying market presence worldwide, with developed countries using prepaid to augment postpaid subscriptions and developing nations utilizing prepaid as the primary source of accessibility.

The advent of high-speed 5G networks will enable a market shift from voice and data connectivity through mobile devices to a full array of internet services, free from the built-in infrastructure of wired services. This change is starting slowly, adding to incremental market growth in the short term, but will likely explode in the next decade, allowing for significant scale expansion of prepaid options to service a more comprehensive array of potential consumer use.

The post How are Apple Pay Users using the Service? appeared first on PaymentsJournal.

Prepaid products are a convenient and flexible option for those looking to manage their expenses. By preloading a set amount of funds, prepaid products are a great way to stay within budget and avoid overspending. Not limited to just phone cards, prepaid products include gift cards, transit passes, and even prepaid debit cards. These options make it easy to give gifts, commute to work, or make purchases online without having to use a traditional credit or debit card. Plus, there are often no credit checks needed to obtain prepaid products, making them accessible to those with limited or poor credit history.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Outside Regulatory Forces Impact Prepaid Market

Impact of current economy on your decision to purchase prepaid card products?

• 10% – much less likely to purchase prepaid card products
• 11% somewhat less likely to purchase prepaid card products
• 54% – neither more nor less likely to purchase prepaid card products
• 16% – somewhat more likely to purchase prepaid card products
• 9% – much more likely to purchase prepaid card products

About Report

In an uncertain economic environment, the payments industry will need to react to both micro and macro issues. Large-scale policy changes meant to fight inflation, deal with unemployment, and address other macro conditions will be the primary drivers of change in the prepaid market. Secondary drivers include broad and local efforts to curb money laundering and fraud as well as increases to saving products like Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA).

Indirectly there are varying levels of regulation meant to create change in other payment verticals, primarily credit, that will have long-lasting changes in the prepaid market. Continued efforts to cap interchange fees could have secondary impact on loyalty programs, which drive large volumes of prepaid business as a secondary avenue for utilization of rewards. In addition, continued potential to regulate cryptocurrencies could benefit prepaid mechanisms that look to easily convert crypto to fiat currency at point of sale.

The post Do Current Economic Conditions Change the Purchase of Prepaid Cards? appeared first on PaymentsJournal.

Secured credit cards can be an excellent option for those who are looking to establish or rebuild credit. Unlike a traditional credit card, with a secured card the person must first make a deposit, which acts as collateral, before they can start using the card. This deposit acts as a safety net for the issuer, ensuring that they will be reimbursed in the event that they are unable to pay the credit card bill. While this may seem like a downside, they can help build a better credit score over time.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Secured Card Market in 2022

Credit score changes by account status over two years

• Open accounts had a change in score of +24
• Closed accounts with balance had a change in score of -42
• Closed accounts without a balance had a change in score of -46
• Write offs had a change in score of -60

About Report

This report provides an overview of the secured credit card market in the United States. Secured cards are a type of credit card that requires a security deposit—used as collateral by the bank—to establish the initial credit limit. These products are marketed toward credit invisible, thin files, and those with a subprime credit score to build a credit history. Issuers typically reward good credit behavior on the secured card by graduating the cardholder into an unsecured card product and refunding the initial security deposit.

The market for secured card products is competitive, and many financial institutions offer similar product features. This report primarily focuses on offerings from large banks and credit unions in the consumer market, but we also examine the small market for small business secured cards. Fintechs have also gained market share within the secured card market, and we look at numerous credit-builder offerings. Credit card as a service (CCaaS) vendor offerings and private-label services are also included.

The post How Have Secured Credit Cards Affected Credit Scores? appeared first on PaymentsJournal.

Prepaid cards are rapidly gaining popularity as an alternative to traditional credit and debit cards. Unlike debit cards, which are tied to a bank account, they can be loaded with a specific amount of money and used anywhere that accepts card payments. They are also a safer option for those who do not have a credit history or want to avoid overspending. With these cards, there are no overdraft fees, credit checks, or interest charges. They are ideal for budgeting, travel, or online shopping. They have evolved to offer a range of benefits and features, including cashback rewards, fraud protection, and mobile apps for managing your spending.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report:19th Annual U.S. Open-Loop Prepaid Card Market Forecast

5 Top Prepaid Cards Purchased or Received

• 63% In-Store Retailer Gift Cards
• 40% Online Merchant-Specific Gift Cards
• 36% Card Network Prepaid/Gift Cards
• 15% Prepaid Phone Cards
• 14% Prepaid Gas Cards

About Report

Javelin Strategy & Research continues its annual series on market trends in the open-loop prepaid market. Javelin expects a robust environment for the prepaid ecosystem, with the largest segments; general purpose open-loop gift and financial services cards trending strong. Consistent with past years, economic conditions play a large role in the outlook of individual products. Budgetary and inflationary pressure should advance unemployment and benefit cards, and items stressing budgetary constraint, while travel, business cards, and other items representing discretionary spending will have a more negative outlook.

Javelin research indicates American buyers show positive outlook on the market as a whole, but the benefits will be less visible in open-loop categories. The research highlights healthy spending patterns in these cards as well as frequency of purchases, with ancillary benefits to retailers when consumers spend beyond their card balance, extending revenue opportunities because of the use of a prepaid card.

The post What Type of Prepaid Cards do Consumers Purchase/Receive? appeared first on PaymentsJournal.

Loyalty programs are a great way for businesses to reward their customers for their continued patronage using consumer incentives. Many companies offer customers the option to enroll in a loyalty program by signing up for an account, allowing customers to accrue points and rewards along the way. These benefits often come in the form of discounts, free items, and even gift cards. Depending on the company’s offerings, customers could receive discounts on future purchases or exclusive access to new products before they become available to everyone else.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report:19th Annual U.S. Closed-Loop Prepaid Card Market Forecast

4 Top Types of Consumer Incentives Received

• 38% received a consumer incentive for a store credit
• 38% received an incentive for a cash back offer from debit/credit card
• 37% received an incentive for an additional purchase
• 34% received an incentive for a rebate

About Report

In general, Javelin Strategy & Research expects a robust environment for the prepaid ecosystem. This includes top categories such as in-store gifting enjoying strong trends. Consistent with past years, economic conditions will have a give-and-take effect on several products. Budgetary and inflationary pressure should benefit the areas of transit, nutrition assistance, and consumer incentives, while petroleum and tolls may recede. Products such as campus cards and consumer incentives will continue to rebound after being negatively affected in the 2020-21 pandemic era.

Consumer sentiments remain positive overall, with American buyers showing strong overall belief in the closed-loop market. Javelin research highlights healthy spending patterns in prepaid cards as well as frequency of purchases, with ancillary benefits to retailers when consumer overspend beyond their card balance, giving an extension of revenue opportunities because of the use of a prepaid card.

The post 4 Top Types of Consumer Incentives Received appeared first on PaymentsJournal.

Cross-border payments have become increasingly more popular across corporations and individuals across the world. They provide an easy way for businesses to pay suppliers, customers and partners located in different countries faster and cheaper than ever before. There is a huge variety of use cases: business to business (B2B) transactions, business to consumer (B2C) commerce, consumer to business (C2B) applications, and person-to-person (P2P) transfers. Companies utilizing cross-border payment systems benefit from faster transactions while not being subjected to certain laws governing international transactions, such as currency exchange rate fluctuations. The special features that come with cross-border payments make them incredibly attractive in today’s global market environment.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Cross-Border B2B Payments: Continuous Improvement Underway

Top Cross-Border Payment Shares by Use Case

• 2% of the payments were person-to-person (P2P)
• 4% of the payments were consumer-to-business (C2B)
• 8% of the payments were business-to-consumer (B2C)
• 86% of the payments were business-to-business (B2B)

About Report

No other global payments innovation effort has garnered as much recent attention as cross-border payments, where improved user experiences have been a focal point for the financial services industry. While the early concern was around greater access and lower costs for these payments in person-to-person scenarios, the efforts naturally progressed into all aspects of the cross-border industry—the impacted use cases in the cross-border run across remittance, retail, disbursements, and wholesale scenarios.

This Javelin Strategy & Research report estimates the size of the cross-border commercial payments market across these defined individual use cases, reviews the traditional settlement methods, and discusses how innovation continues to improve the business-to-business (B2B) payments experience. Readers will understand the latest developments in how networks, processors, banks, fintechs, and central banks collaborate to substantially improve the delivery, with an emphasis on the B2B market segment, which is by far the most significant portion of these international value exchanges.

The post Top Cross-Border Payment Shares by Use Case appeared first on PaymentsJournal.

Payment instruments help households manage their income, with options ranging from traditional methods such as cash and checks to digital tools like debit cards and ACH transfers. Over the years, usage of these payment instruments has gone through a huge transformation with increased utilization of credit cards for purchases, mobile payments for household bills, and debit cards for regular household expenses. Now there is a wide range of payment solutions available to suit our spending habits, providing flexibility that can help us stay on top of our household finances.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report :Premium Credit Cards in 2022

5 Top Payment Instruments for Higher Household Income

For those with a household income of greater than $150,000:

• 44% use credit cards
• 20% use debit cards
• 12 % use ACH
• 11% use cash
• 6% use mobile payments

About Report

Premium credit card products have existed since the 1980s and are targeted toward the mass affluent population. This customer segment differs from the general-purpose credit card market, with above-average credit scores and household incomes of more than $100,000. The rewards on premium cards are typically focused on travel, often rich with options, and boast large sign-up bonuses, but are they sustainable?

In this report, we examine current premium card offerings, rewards, and trends and offer our strategic insights into premium credit card rewards. Readers will learn about the premium card market through a comparative analysis of current card offerings and market research data about the consumers that use these card products. We identify current problems in credit card reward offerings and advise on creating a sustainable card rewards platform. Readers will learn strategies for maximizing card rewards programs. We also examine how the current legislation may affect the credit card rewards market.

The post 5 Top Payment Instruments for Higher Household Income appeared first on PaymentsJournal.

As payments quickly evolve in this environment, so must ATMs. How people use cash is shifting away from transactions toward holding cash as an asset. Banks are closing branches, and streamlining staff, shifting customer service to an ATM when possible. They can be designed to deliver only cash, or only cryptocurrency, with a rich range of added functionality in between. ATMs have become a surprisingly dynamic marketplace in the COVID-19 era.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report:2022 ATM Market Summary: Coping in a New Cash and Digital Era

5 Top Services Used at ATMs

• 86% to get cash
• 73% to deposit cash
• 72% to deposit checks
• 67% for any other activity
• 45% to check account balances

About Report

As the COVID-19 pandemic ripples across consumer payments, the heavily cash-centric ATM is in a challenging position. Consumers’ use of cash for daily transactional purposes (purchases, person-to-person payments) is on the decline, although larger amounts are being held at home. At the same time, FIs are rationalizing and reducing their branch networks and revising branch configurations and staffing, putting ATMs in the role of supplementing cash handling in the branch. Enhanced cash-recycling ATMs are being deployed to improve the efficiency of cash management.

Simultaneously, the move to smartphone-based digital interfaces—and now the delivery of digital goods, namely cryptocurrencies—provides new opportunities for existing and new terminals. A new research report from Mercator Advisory Group titled 2022 ATM Market Summary: Coping in a New Cash and Digital Era looks at the usage related to the pandemic environment, cash usage that influence how consumers use ATMs, and trends in  the design, deployment and new capabilities.

The post 5 Top Services Used at ATMs appeared first on PaymentsJournal.

Self-checkout is a customer service option that is becoming increasingly popular, as it offers shoppers convenience and autonomy as they can scan, bag, and pay for their items without the need of an additional cashier. Customer preference for self checkout systems is based on speed, privacy when paying, and seamless customer experience. In addition to this, customers tend to feel in control of their shopping experience when using self-checkout compared to standing in line with a store clerk.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: Unattended Commerce: The Store of the Future?

Do consumers prefer self-checkout options rather than checking out with a cashier?

• 25% completely agree
• 31% agree
• 19% neither agree nor disagree
• 12 % disagree
• 12% completely disagree

About report

Unattended commerce is not a new concept; the idea has been around since the 1880s, when the first mechanical vending machine was invented to sell postcards at railway stations. Since that time, convenience vending in the United States alone has grown to a $31 billion industry, not including automated sales of transportation tickets, cash dispensed at ATMs, and other kiosk-based purchases. Unattended commerce in the 21st century is more than just vending; it strives to combine the speed and convenience of a vending purchase with the product selection and shopping experience that consumers expect at their favorite stores.

This research report from Javelin Strategy & Research, Unattended Commerce: The Store of the Future?, reviews the effects of the pandemic and the continued growth of unattended commerce. This report looks at the key factors that have the potential to accelerate or delay the tipping point for the next phase of retail shopping and payments.

The post Do Consumers Prefer Self-Checkout? appeared first on PaymentsJournal.

Business travel has been drastically impacted during the pandemic. The pandemic caused borders to be shut down, planes grounded and conferences canceled, preventing business travel from happening in certain countries. With the need for social distancing, the pandemic meant that companies had to rely more on remote meetings and virtual workshops. Although not ideal, this shift has enabled more organizational bonding because employees from all over the world can connect virtually. As we move towards a post-pandemic future, it will be interesting to see how organizations reimagine how business travel works so that it is focused on bringing more value and connection within teams.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report: International Commercial Credit Cards: Market Review and Forecast, 2021-2026

Business Travel on the Upswing

In April 2022, the change in booking during the past month show:

• 7% decreased business travel bookings
• 5% had the same level of business travel bookings
• 88% increased the booking for business travel

About Report

The pandemic has taken a toll on the commercial credit card industry during the past two years, especially in regions outside of North America where business travel spending is the predominant source of revenue for the issuing participants. Improvements occurred during 2021 as domestic travel picked up and certain international routes also began to open, situations that continue into the first half of 2022. As such, a general spending recovery is expected by 2024, and potentially sooner depending upon the actual updated travel policies enacted and budgets approved by corporations across the globe.

This research report from Javelin Strategy & Research, International Commercial Credit Cards: Market Review and Forecast, 2021-2026, reviews the current situation and outlook as the industry continues to recover and business travel improves. This is Mercator Advisory Group’s annual review of the commercial credit card industry in markets outside of North America (NA). This research report includes overviews and estimated commercial credit card spending for mid-to-large corporates in Western Europe (WE), Asia Pacific (APAC), Latin America and Caribbean (LATAC), and Central and Eastern Europe, Middle East, and Africa (CEEMEA).

The post Data shows business travel on the upswing appeared first on PaymentsJournal.

‘Smart terminals’ is a relatively new term in the payments lexicon. But it is one that is becoming more widely discussed among merchants of all sizes, types, and categories. The strategy that drives orchestration is nothing less than a paradigm shift. It is a shift in the way that merchants view payment service providers. 

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance

Top POS Technology Pain Points for Small Business

• 41% – Upgrading POS terminals
• 39% – POS terminal and technology security/PCI compliance
• 37% – Integrating customer data across POS and online channels
• 33% – Accepting POS Payments from customers’ mobile phones

About Report

Mercator Advisory Group’s report, Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance provides insight into this exciting new technology, and what every merchant needs to know about it.

Rather than conduct due diligence to select a “best-of-breed” service provider for each functional area within payments, orchestration allows merchants of all sizes and scales to offer their customers a smooth shopping experience, be it digital, in-person, or other channels. The growing diversity in payment methods, including contactless and e-wallets, creates an environment where having the right partner is paramount towards achieving your payments and overall business goals.

The right payments partner will equip a merchant with the necessary capabilities to operate in this rapidly digitizing business environment, where automation and frictionless experiences are vital in ensuring customer satisfaction and loyalty. Similarly, in order to help merchants provide these services, processors and other payments stakeholders must update their own services and products to keep up with the latest demands of the consumer market and regulatory requirements.

The post 4 Top POS Technology Pain Points for Small Business appeared first on PaymentsJournal.

Prepaid cards are a versatile and convenient way to make purchases. Consumers can use them like gift cards, giving recipients the freedom to choose what they want to buy. They can reload them with funds, making them ideal for recurring expenses. And some prepaid cards can even be used for transit, providing an easy way to pay for fares.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Canadian Prepaid Market: Rapid Growth and Developing Opportunities5

Prepaid Cards by Type Purchased by Consumers in Canada

• 46% of Canadians use retailer-specific prepaid cards
• 44% of Canadians use general purpose gift cards
• 29% of Cnadians use gift cards for online services
• 28% of Canadians use general purpose reloadable prepaid cards
• 25% of Canadians use transit prepaid cards

About Report

Mercator Advisory Group’s most recent report, Canadian Prepaid Market: Rapid Growth and Developing Opportunities, pulls from both primary and secondary data to develop an overview of the Canadian market. While relatively small, the market is growing rapidly and presents significant opportunities for prepaid issuers.

The report examines the driving forces behind the industry’s remarkable growth and identifies recent market developments. After identifying some of the most compelling opportunities for involvement with the prepaid industry in Canada, the report concludes with recommendations for the reader.

The post Top Ways Consumers in Canada are using Prepaid Cards appeared first on PaymentsJournal.

Income drives smartphone operating system use more than education in Canada.

Higher earners in Canada are significantly more likely to be users of iOS, with more than 50% of the demographic utilizing an Apple device.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights: Emerging Payments and Technology – Navigating the Digital Divide in Canada

Top Smartphone Operating System Usage in Canada

Income:

• 40% of Canadians making less than $75K use the Android OS.
• 53% of Canadians making more than $75K use iOS.

Education:

• 41% of Canadian with no college degree use the Android OS.
• 43% of Canadians with a college degree use iOS.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights: Emerging Payments and Technology – Navigating the Digital Divide in Canada, analyzes the impact of technology within Canada on current and future behavior. The report reveals significant impacts that income and education have on both adoption of technology and forward-looking preferences.

The emergence of new technologies consistently shines a spotlight on societal progress, but the shadow cast by that spotlight leaves many underserved communities behind in the effect commonly referred to as the digital divide. The digital divide manifests in many ways, including by income, education, employment, or geography. the digital divide. Throughout this report, we will refer to Mercator Advisory Group’s recent survey on emerging payments and technology to uncover areas where there is a higher propensity for Canadians to be interested in or use technology as indicated by either income or education levels as well as areas where the divide has either closed or does not exist.

The post Smartphone Operating System Usage in Canada appeared first on PaymentsJournal.

In today’s competitive marketplace, businesses are always looking for ways to differentiate themselves from their competitors. One way to do this is through the use of loyalty programs. They are designed to encourage customer loyalty by offering rewards and benefits to customers who frequented a particular business. Moreover, there are many types of loyalty programs, but they all have one common goal: to keep customers coming back.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: How Payments Can Drive Better Loyalty and Rewards Programs

Top Loyalty Program Participation by Vertical Market

• 59% of consumers participate in Supermarkets/grocery stores
• 52% of consumers participate in Pharmacies/drug stores
• 59% of consumers participate in Warehouse/club stores
• 59% of consumers participate in Online-only retailers
• 59% of consumers participate in Airline/Travel

About Report

Mercator Advisory Group’s report, How Payments Can Drive Better Loyalty and Rewards Programs, provides insight into the new technology driving increased personalization and better customer experiences with loyalty programs, and the important role that payment data can play.

Traditional loyalty programs were a source of data for merchants, better enabling them to identify the repeat customers and track the shopping patterns by rewarding their repeat purchases. The digital environment now gives us an abundance of data that is captured in many ways and in many places. Therefore, these programs become a use of data that provides a better understanding of customer behavior and the more targeted rewards.

Strategic operating decisions that merchants make in key payments areas including orchestration, tokenization, and service provider selection will affect the ability of the marketing team to mine the loyalty data from payments and has the potential to either enhance or detract from the effectiveness of the loyalty program.

The post Top 5 Loyalty Program Participation by Vertical Market appeared first on PaymentsJournal.

Debit cards have many advantages over other payment types. Particularly for younger, lower-income individuals, debit is a great choice for managing costs, managing risk, and the need for convenience. Compared to credit, debit has no risk of debt, no risk of a negative credit score impact, no annual fee, and no interest charges. What is the breakdown by age for debit card usage for online digital content?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Consumer Payment Choice: Understanding Debit Card User Preferences

Top Debit Card Usage for Online Digital Content by Age Group

• 27% of 18-24 year olds use debit card for online digital content
• 23% of 25-44 year olds use debit card for online digital content
• 16% of 45-64 year olds use debit card for online digital content
• 11% of 65+ year olds use debit card for online digital content

About Report

Mercator Advisory Group’s report, Consumer Payment Choice: Understanding Debit Card User Preferences, pulls from a wealth of primary data to form an overview of the typical user. Looking at consumers who indicate a preference for debit transactions, the report reveals key demographic traits of those most likely to rely on their cards.

The report then goes on to explore the many use cases, providing insights into the consumer segments most likely to use debit in particular circumstances. Embedded within this analysis are recommendations for debit card issuers and processors intended to support customer engagement and debit utilization.

The post Top Debit Card Usage for Online Digital Content by Age Group appeared first on PaymentsJournal.

As the world increasingly moves online, so too do opportunities for fraud. Business-to-business (B2B) fraud is a growing problem, as organizations are increasingly making payments electronically. Commercial payments fraud can take many forms, from false invoicing to account takeover. In order to prevent B2B fraud, organizations need to take a proactive approach.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic

5 B2B Payment Methods Subject to Commercial Payments Fraud:

• 66% – Checks
• 39% – Wire transfers
• 34% – ACH Debits
• 24% – Corporate/commercial credit cards
• 19% – ACH Credits

About Report

Mercator Advisory Group released a report covering fraud in commercial payments titled The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic. The research explores the impact of fraud with particular emphasis on the B2B payments space. Through an analysis of internal and external fraud, one can gain a deeper understanding of the most common types of schemes, what payment types are subject to the most payments fraud, and how the industry is fighting back. The report also explores the rise in business email compromise (BEC) fraud and new ways that fraudsters are targeting organizations.

Fraud is an unfortunate reality that businesses cannot ignore. In this report, we cover the trends in B2B payments fraud affecting large to mid-size organizations and the strategies they are using to fight back. Although fraud is inevitable, organizations that stay current with fraud prevention strategies can mitigate damages and reduce losses.

The post What Payment Methods are most subject to Commercial Payments Fraud? appeared first on PaymentsJournal.

The Federal Trade Commission (FTC) received 2.2 million fraud reports from consumers in 2020. In 2021, a published report highlighted imposter scams as the most common type of fraud reported to the agency, while online shopping was the second most common fraud category reported by consumers. What payment method is most affected by fraud?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective

5 Top Payment Methods Affected by Fraud:

• 42% – credit card
• 39% – debit card attached to a checking account
• 22% – online banking
• 12% – debit card issued by a peer-to-peer payment service
• 8.3% – peer-tp-peer payment service

About Report

Mercator Advisory Group Releases Payments Industry Research: Payment Fraud – The Consumers’ Perspective

The Federal Trade Commission (FTC) received 2.2 million fraud reports from consumers in 2020. In 2021, a published report highlighted imposter scams as the most common type of fraud reported to the agency, while online shopping was the second most common fraud category reported by consumers. Mercator Advisory Group’s primary data service, Fraud Experience
PaymentsInsights, takes a comprehensive view of United States consumer payment and identity theft related fraud.

Mercator Advisory Group’s most recent report, 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective, examines payment methods in relation to fraud, the dollar value of fraud incidents, types of fraud experiences, identity theft-related fraud, consumers’ experience with resolving fraud cases, as well as consumers’ attitudes, not only about fraud but also about the financial institutions they use for banking and bill paying services.

“Payment and identity-related fraud prevention can be achieved by building an alliance with consumers and learning from past fraud experiences so that financial institutions and merchants can continue to educate both themselves and their consumers on what patterns to look out for so that they can avoid becoming victims of fraud,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post What Payment Method is Most Affected by Fraud? appeared first on PaymentsJournal.

Unattended commerce is not a new concept; the idea has been around since the 1880s, when the first mechanical vending machine was invented to sell postcards at railway stations.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Unattended Commerce: The Store of the Future?

Five Common Attributes of Unattended Commerce Technology:

1. Convenience: Unmanned kiosks can be placed more closely to the customer and for longer hours.
2. Durability: Products sold through these machines are not easily perishable and may remain usable until depleted.
3. Finite Selection: The consumer does not have to interact with the product to decide to buy since the product is either well-known or is a commodity like fuel, cash, or transportation tickets.
4. Scalability: More customers can be served with fewer human resources since only a small number of staffers is needed to service the machines.
5. Product Security: The product is protected by the machine which makes theft difficult and unlikely.

About Viewpoint

The time is right for unattended commerce.

Unattended commerce is not a new concept; the idea has been around since the 1880s, when the first mechanical vending machine was invented to sell postcards at railway stations. Since that time, convenience vending in the United States alone has grown to a $31 billion industryi, not including automated sales of transportation tickets, cash dispensed at ATMs, and other kiosk-based purchases. Unattended commerce in the 21st century is more than just vending; it strives to combine the speed and convenience of a vending purchase with the product selection and shopping experience that consumers expect at their favorite stores.

A new research report from Mercator Advisory Group, Unattended Commerce: The Store of the Future?, reviews the effects of the pandemic and the continued growth of unattended commerce. This report looks at the key factors that have the potential to accelerate or delay the tipping point for the next phase of retail shopping and payments.

“Customer expectations are on a path of rapid change, as shoppers reward businesses that deliver the best combination of product selection, price, and experience. The constraints around physical commerce and interactions are rebalancing consumers’ value equations, where a positive buying experience is beginning to outweigh product choices and price,” stated the author of the report, Don Apgar, Director of the Merchant Services and Acquiring practice at Mercator Advisory Group, and author of this report.

The post Five Common Attributes of Unattended Commerce Technology: appeared first on PaymentsJournal.

The credit card is one of the most common forms of consumer lending. Credit cards allow consumers to borrow money up to a certain limit in order to purchase goods and services. Cardholders typically have a grace period of 20-30 days in which they can repay the borrowed funds without incurring any interest charges. However, if the balance is not repaid in full during the grace period, interest will be charged on the outstanding balance. credit cards typically have relatively high interest rates compared to other types of consumer lending, such as mortgages and car loans.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Russian Credit Cards Will Lose Relevance as Their Economy Tumbles

Four Banks Dominate Consumer Lending in Russia

• Sberbank handles 40.4% of credit cards and 40.5% of consumer lending in Russia.
• Tinkoff Bank handles 14.9% of credit cards and 10.2% of consumer lending in Russia.
• Alfa Bank handles 11.0% of credit cards and 6.8% of consumer lending in Russia.
• VTB handles 6.2% of credit cards and 3.0% of consumer lending in Russia.

About Viewpoint

Russia was primarily a cash economy until 2012, when payment cards began to displace cash. Recent global events indicate that domestic card usage will continue, with growth in debit  transactions, but credit card volumes will languish.

Russia’s domestic payment scheme will keep transactions flowing within the country. Still, it faces challenges in global acceptance and will not be capable of supporting a robust credit card function as the economy weakens as a result of the international sanctions.

The post Four Banks Dominate Consumer Lending in Russia: appeared first on PaymentsJournal.

In today’s global economy, credit cards are an essential tool for conducting business. They allow companies to make international transactions without having to worry about currency exchange rates or bank fees. In addition, they can be used to buy goods and services online, making them a convenient way to do business with customers around the world. However, they come with some risks. If a company doesn’t manage its finances carefully, it can end up accumulating debt that is difficult to repay. In addition, credit card companies may impose international sanctions if a customer fails to pay their bill on time.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Russian Credit Cards Will Lose Relevance as Their Economy Tumbles

Countries with One or More Credit Cards Per Person:

• Canada has an average of 3.85 cards per person.
• The U.S. has an average of 3.23 cards per person.
• Japan has an average of 2.34 cards per person.
• Korea has an average of 2.20 cards per person.
• Brazil has an average of 1.33 cards per person.

About Russian Credit Cards Viewpoint

Russia was primarily a cash economy until 2012, when payment cards began to displace cash. Recent global events indicate that domestic card usage will continue, with growth in debit  transactions, but volumes will languish.

Russia’s domestic payment scheme will keep transactions flowing within the country. Still, it faces challenges in global acceptance and will not be capable of supporting a robust credit card function as the economy weakens as a result of the international sanctions.

The post Countries with One or More Credit Cards Per Person: appeared first on PaymentsJournal.

Debit cards are a global phenomenon, with billions of people using them every day to make purchases and withdraw cash. Although they are incredibly convenient, debit cards can also be a source of financial stress if they are not used responsibly. Overdraft fees and other charges can quickly add up, making it difficult to keep track of your spending. And if your card is lost or stolen, you may be liable for unauthorized transactions.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Russian Credit Cards Will Lose Relevance as Their Economy Tumbles

Countries with One or More Debit Cards Per Person

• China has an average of 5.83 cards per person.
• Japan has an average of 3.62 cards per person.
• Korea has an average of 3.23 cards per person.
• Brazil has an average of 2.14 cards per person.
• Russia has an average of 1.82 cards per person.
• The U.K. has an average of 1.42 cards per person.
• Mexico has an average of 1.24 cards per person.
• The U.S. has an average of 1 card per person.

About Viewpoint

Russia was primarily a cash economy until 2012, when payment cards began to displace cash. Recent global events indicate that domestic card usage will continue, with growth in debit  transactions, but credit card volumes will languish.

Russia’s domestic payment scheme will keep transactions flowing within the country. Still, it faces challenges in global acceptance and will not be capable of supporting a robust credit card function as the economy weakens as a result of the international sanctions.

The post Countries with One or More Debit Cards Per Person: appeared first on PaymentsJournal.

Russia is a country that is increasingly embracing payment cards as a means of payment. This is in line with Russia’s trend of modernizing its economy and society. In the past, Russia was predominantly a cash-based society. However, this is changing, particularly in urban areas. Payment cards are now widely accepted in Russia, and many businesses have started to support them. There are a number of reasons for this change. First, payment cards are more convenient than cash. They allow people to make purchases without having to carry large amounts of cash with them. Second, payment cards are safer than cash. They can be used if there is a problem with the ATM or if the ATM runs out of cash. Finally, payment cards can be used to earn rewards points, which can be redeemed for discounts or other benefits.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Russian Credit Cards Will Lose Relevance as Their Economy Tumbles

How the Russian National Payment Card System Clears and Settles Payments Post-Sanctions

• The Russian National Payment Card System (NSPK) clears and settles payments between consumers, merchants, and banks.
• 1) The cardholder tenders their card to the merchant.
• 2) The merchant sends transaction information to the acquirer.
• 3) The acquirer sends the information to NSPK, the Russian national payment switch.
• 4) NSPK clears and settles to the bank.
• 5) The disposition flows back in reverse order.

About Viewpoint

Russia was primarily a cash economy until 2012, when payment cards began to displace cash. Recent global events indicate that domestic card usage will continue, with growth in debit  transactions, but credit card volumes will languish.

Russia’s domestic payment scheme will keep transactions flowing within the country. Still, it faces challenges in global acceptance and will not be capable of supporting a robust credit card function as the economy weakens as a result of the international sanctions.

The post How the Russian National Payment Card System Works Post-Sanctions: appeared first on PaymentsJournal.

There are many different card processors out there, each competing for merchants’ business. While it’s important to consider things like fees and transaction rates, it’s also important to choose a provider that offers excellent customer service. After all, if something goes wrong with a transaction, you’ll want to be able to talk to someone who can help you resolve the issue quickly and efficiently. And if you ever have any questions about how to use the system, you’ll want a customer service representative who is patient and knowledgeable.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance

Reasons U.S. Small Businesses Choose Primary Card Processors

• 39% of companies chose a primary card processing provider because of lower total cost.
• 31% of companies chose a primary card processing provider because of superior customer service.
• 30% of companies chose a primary card processing provider because of better reporting systems.
• 28% of companies chose a primary card processing provider because of the ease of setting up the processing service.
• 27% of companies chose a primary card processing provider because of the speed of setting up the processing service.

About Report

Mercator Advisory Group’s most recent report, Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance provides insight into this exciting new technology, and what every merchant needs to know about it.

‘Smart terminals’ is a relatively new term in the payments lexicon, but one that is becoming more widely discussed among merchants of all sizes, types, and categories. The strategy that drives orchestration is nothing less than a paradigm shift in the way that merchants view payment service providers. Rather than conduct due diligence to select a “best-of-breed” service provider for each functional area within payments, orchestration allows merchants of all sizes and scales to offer their customers a smooth shopping experience, be it digital, in-person, or other channels. The growing diversity in payment methods, including contactless and e-wallets, creates an environment where having the right partner is paramount towards achieving your payments and overall business goals. The right payments partner will equip a merchant with the necessary capabilities to operate in this rapidly digitizing business environment, where automation and frictionless experiences are vital in ensuring customer satisfaction and loyalty. Similarly, in order to help merchants provide these services, processors and other payments stakeholders must update their own services and products to keep up with the latest demands of the consumer market and regulatory requirements.

“This is a highly relevant and impactful report,” stated the author of the report, Shreyas Shaktikumar, Senior Analyst in the Merchant Services and Acquiring practice at Mercator Advisory Group. “We are following this trend among a number of similar technology trends that are making payments a frictionless and invisible part of our everyday activities.”

The post Reasons U.S. Small Businesses Choose Primary Card Processors: appeared first on PaymentsJournal.

Sales channels are the various ways that small businesses can reach their customers and make a sale. The most common sales channels include brick-and-mortar stores, online stores, catalogs, and direct sales. Each sales channel has its own benefits and drawbacks, and small businesses should carefully consider which channels will work best for them. Brick-and-mortar stores offer the benefit of allowing customers to see, touch, and try out products before they purchase them. However, they also require a significant investment in terms of rent and staff costs. Online stores have lower overhead costs, but they may have difficulty building customer trust. Catalogs provide a middle ground between online and brick-and-mortar stores, offering customers the convenience of shopping from home while still being able to see physical product samples. Direct sales are a great option for businesses that sell unique or high-end products, as they allow small businesses to build personal relationships with their customers.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance

Sales Channels Used by U.S. Small Businesses

• 60% of U.S. small businesses use online/web sales.
• 45% of U.S. small businesses use telephone order.
• 45% of U.S. small businesses use physical store locations.
• 42% of U.S. small businesses use mobile apps.
• 22% of U.S. small businesses use mail order.
• 20% of U.S. small businesses use third-party platforms such as GrubHub and Amazon.

About Report

Mercator Advisory Group’s most recent report, Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance provides insight into this exciting new technology, and what every merchant needs to know about it.

‘Smart terminals’ is a relatively new term in the payments lexicon, but one that is becoming more widely discussed among merchants of all sizes, types, and categories. The strategy that drives orchestration is nothing less than a paradigm shift in the way that merchants view payment service providers. Rather than conduct due diligence to select a “best-of-breed” service provider for each functional area within payments, orchestration allows merchants of all sizes and scales to offer their customers a smooth shopping experience, be it digital, in-person, or other channels. The growing diversity in payment methods, including contactless and e-wallets, creates an environment where having the right partner is paramount towards achieving your payments and overall business goals. The right payments partner will equip a merchant with the necessary capabilities to operate in this rapidly digitizing business environment, where automation and frictionless experiences are vital in ensuring customer satisfaction and loyalty. Similarly, in order to help merchants provide these services, processors and other payments stakeholders must update their own services and products to keep up with the latest demands of the consumer market and regulatory requirements.

“This is a highly relevant and impactful report,” stated the author of the report, Shreyas Shaktikumar, Senior Analyst in the Merchant Services and Acquiring practice at Mercator Advisory Group. “We are following this trend among a number of similar technology trends that are making payments a frictionless and invisible part of our everyday activities.”

The post Sales Channels Used by U.S. Small Businesses: appeared first on PaymentsJournal.

A POS terminal is a computerized device used to process sales transactions in a retail environment. It typically includes a touchscreen display, a keyboard, a scanner, and a printer. Most POS terminals are also connected to the Internet, allowing them to communicate with a central computer system. This allows businesses to track sales data in real-time and make changes to their pricing and inventory levels accordingly. POS terminals are an essential part of any retail business, and they can have a major impact on both the efficiency and the profitability of a business.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance

Top POS terminals used by U.S. businesses

• 17% of U.S. businesses use PayPal.
• 12% of U.S. businesses use Square.
• 11% of U.S. businesses use Verifone.
• 11% of U.S. businesses use Fiserv Clover.
• 8% of U.S. businesses use NCR.
• 7% of U.S. businesses use Shopify.

About Report

Mercator Advisory Group’s most recent report, Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance provides insight into this exciting new technology, and what every merchant needs to know about it.

‘Smart terminals’ is a relatively new term in the payments lexicon, but one that is becoming more widely discussed among merchants of all sizes, types, and categories. The strategy that drives orchestration is nothing less than a paradigm shift in the way that merchants view payment service providers. Rather than conduct due diligence to select a “best-of-breed” service provider for each functional area within payments, orchestration allows merchants of all sizes and scales to offer their customers a smooth shopping experience, be it digital, in-person, or other channels. The growing diversity in payment methods, including contactless and e-wallets, creates an environment where having the right partner is paramount towards achieving your payments and overall business goals. The right payments partner will equip a merchant with the necessary capabilities to operate in this rapidly digitizing business environment, where automation and frictionless experiences are vital in ensuring customer satisfaction and loyalty. Similarly, in order to help merchants provide these services, processors and other payments stakeholders must update their own services and products to keep up with the latest demands of the consumer market and regulatory requirements.

“This is a highly relevant and impactful report,” stated the author of the report, Shreyas Shaktikumar, Senior Analyst in the Merchant Services and Acquiring practice at Mercator Advisory Group. “We are following this trend among a number of similar technology trends that are making payments a frictionless and invisible part of our everyday activities.”

The post Top POS Terminals Used by U.S. Businesses: appeared first on PaymentsJournal.

Merchants who are looking for a smart and efficient way to process transactions should consider investing in a POS terminal. POS terminals are capable of accepting various forms of payment, including credit cards, debit cards, and mobile payments. They also offer numerous features that can help merchants streamline their operations, such as the ability to track inventory levels and keep track of sales data. Perhaps most importantly, POS terminals can help merchants provide a better customer experience by allowing them to quickly and easily process transactions.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance

Smart Point-of-Sale Terminal Features

• Multiple payment options such as contactless, digital wallets, chip cards, and barcode scanning.
• Customer-facing display screens that include relevant information and space for signatures and PIN input.
• Multi-channel communication capabilities, including internet and GRPS connectivity, and local software integration.
• Portable elements such as mobile scanners or detachable tablets.
• External device integration, such as receipt printers, full-function document printers, and scanning devices.

About Report

Mercator Advisory Group’s most recent report, Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance provides insight into this exciting new technology, and what every merchant needs to know about it.

‘Smart terminals’ is a relatively new term in the payments lexicon, but one that is becoming more widely discussed among merchants of all sizes, types, and categories. The strategy that drives orchestration is nothing less than a paradigm shift in the way that merchants view payment service providers. Rather than conduct due diligence to select a “best-of-breed” service provider for each functional area within payments, orchestration allows merchants of all sizes and scales to offer their customers a smooth shopping experience, be it digital, in-person, or other channels. The growing diversity in payment methods, including contactless and e-wallets, creates an environment where having the right partner is paramount towards achieving your payments and overall business goals. The right payments partner will equip a merchant with the necessary capabilities to operate in this rapidly digitizing business environment, where automation and frictionless experiences are vital in ensuring customer satisfaction and loyalty. Similarly, in order to help merchants provide these services, processors and other payments stakeholders must update their own services and products to keep up with the latest demands of the consumer market and regulatory requirements.

“This is a highly relevant and impactful report,” stated the author of the report, Shreyas Shaktikumar, Senior Analyst in the Merchant Services and Acquiring practice at Mercator Advisory Group. “We are following this trend among a number of similar technology trends that are making payments a frictionless and invisible part of our everyday activities.”

The post Smart Point-of-Sale Terminal Features: appeared first on PaymentsJournal.

The history of point-of-sale systems can be traced back to the early days of commerce, when merchants would keep track of sales using nothing more than a tally board. In the modern day, point-of-sale systems are highly sophisticated and offer businesses a variety of features and benefits. From basic transaction processing to inventory management and customer tracking, point-of-sale systems play an essential role in today’s retail environment. While the features offered by different point-of-sale systems can vary widely, all systems share one common goal: to help businesses run more efficiently and effectively. As the retail landscape continues to evolve, point-of-sale systems will continue to be an invaluable tool for businesses of all types.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance

Key Events in the Evolution of Point-of-Sale Terminals

• 1879: James Ritty invents the first cash register.
• 1906: First recorded design of a cash register with electric motor.
• 1973-1985: IBM releases the first computer-powered and PC-based POS terminals.
• 1992: The first MS Windows POS system is released.
• 2010: Square releases the world’s first mobile, app-powered POS terminal.
• 2014: Poynt introduces the portable touchscreen POS terminal.

About Report

Mercator Advisory Group’s most recent report, Smart Point-of-Sale Terminals: A Rapid Transformation of Payments Acceptance provides insight into this exciting new technology, and what every merchant needs to know about it.

‘Smart terminals’ is a relatively new term in the payments lexicon, but one that is becoming more widely discussed among merchants of all sizes, types, and categories. The strategy that drives orchestration is nothing less than a paradigm shift in the way that merchants view payment service providers. Rather than conduct due diligence to select a “best-of-breed” service provider for each functional area within payments, orchestration allows merchants of all sizes and scales to offer their customers a smooth shopping experience, be it digital, in-person, or other channels. The growing diversity in payment methods, including contactless and e-wallets, creates an environment where having the right partner is paramount towards achieving your payments and overall business goals. The right payments partner will equip a merchant with the necessary capabilities to operate in this rapidly digitizing business environment, where automation and frictionless experiences are vital in ensuring customer satisfaction and loyalty. Similarly, in order to help merchants provide these services, processors and other payments stakeholders must update their own services and products to keep up with the latest demands of the consumer market and regulatory requirements.

“This is a highly relevant and impactful report,” stated the author of the report, Shreyas Shaktikumar, Senior Analyst in the Merchant Services and Acquiring practice at Mercator Advisory Group. “We are following this trend among a number of similar technology trends that are making payments a frictionless and invisible part of our everyday activities.”

The post Key Events in the Evolution of Point-of-Sale Terminals: appeared first on PaymentsJournal.

Middle market firms are important drivers of economic growth, accounting for about one-third of private sector employment in the United States. These companies often face unique challenges, such as access to capital, that can impede their growth. However, these firms have also been shown to be more resilient than large corporations during economic downturns. As a result, they play a vital role in creating jobs and fostering economic stability.

While middle market companies are an essential part of the economy, they often receive less attention than their larger counterparts. This is due in part to their size—mid-sized firms make up a relatively small percentage of all businesses. In addition, middle market companies are often overshadowed by the flashy success stories of startups and mega-corporations. However, it is important to remember that middle market firms are the backbone of the economy, and their continued success is essential for sustained economic growth.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: The Corporate Middle Market Seeks Digital Transformation

How to Define the Middle Market:

• American Express – between $1M-300M in revenue.
• Mastercard defines the lower middle as between $10M-100M, the middle as between $101M-250M, and the upper middle as between $251M-1B in revenue.
• National Center for the Middle Market – betwen $10M-1B in revenue.
• Visa – between $10M-$1B in revenue.
• The U.S. Government Small Business Administration defines in varying ways depending on NAICS code.
• The U.S. Department of Commerce defines as having a pre-tax income of between $5M-250M.
• Private Equity Firms – between $25M-750M in revenue.

About Viewpoint

The vast middle market differs in many ways from its large corporate and small business counterparts, but one thing that remains constant is the need for adaptation to new digital systems and operating methods. Fintechs are migrating into this space and financial institutions are figuring out ways to properly collaborate and service this important industry segment.

The post How to Define the Middle Market appeared first on PaymentsJournal.

In our digital world, instant money transfers have become the norm. Whether we’re sending money to a friend or paying for something online, we expect the funds to be transferred immediately. This wasn’t always the case, however. In the past, bank transfers could take days or even weeks to go through. But thanks to real-time payments (RTP), we can now enjoy the benefits of instant money transfers.

RTP is a type of payment system that allows for real-time processing of transactions. This means that once a transaction is initiated, the funds are transferred immediately – there’s no waiting period. RTP is becoming increasingly popular as it offers a number of advantages over traditional payment methods. For example, it’s great for businesses as it reduces the risk of fraud and chargebacks. It also cuts down on administrative costs associated with processing payments.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Monetizing Real-Time Payments

Consumers Do Not Want to Pay a Fee for Instant Money Transfers:

• Consumer payers often already consider payments to be immediate if they are credited in the eyes of the biller.
• 54% of consumers would not be willing to pay a fee to send funds internationally in real time.
• 64% of consumers would not be willing to pay a fee to pay bills in real time.
• 71% of consumers would not be willing to pay a fee to receive insurance claims in real time.
• 65% of consumers would not be willing to pay a fee to send or receive money to/from a checking account in real time.

About Viewpoint

U.S. payments industry participants are largely in agreement that faster and real-time payments are part of the industry’s evolution. While integration projects to prepare for these new payment types are moving forward with only the slightest consideration of a real business case, the search is still on to look for those use cases where value can be provided and customers will be willing to pay for the benefits.

In this Viewpoint, we consider the use cases where faster payments are generating revenue for providers today and the solutions that are likely to be profitable in the future.

The post Consumers Do Not Want to Pay a Fee for Instant Money Transfers: appeared first on PaymentsJournal.

Real-time payments are becoming increasingly popular as a way to facilitate fast and efficient transactions. With real-time payments, fees can be collected almost immediately, and disbursements can be made without delay. This is especially beneficial for merchants, who can receive their deposits much more quickly. It also makes bill pay and other B2B transactions much simpler and more efficient.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Monetizing Real-Time Payments

Business Use Cases Generating Real-Time Payment Fees:

• There are several use cases where businesses are already paying for the benefits of real-time transactions.
• B2C disbursements such as marketplace payments, refunds/rebates, insurance payouts, and loan proceeds.
• Merchant deposits that help manage cash flow.
• Bill pay, including the use of Request-for-Pay (RfP).
• B2B transactions, mostly processed through same day ACH.

About Viewpoint

U.S. payments industry participants are largely in agreement that faster and real-time payments are part of the industry’s evolution. While integration projects to prepare for these new payment types are moving forward with only the slightest consideration of a real business case, the search is still on to look for those use cases where value can be provided and customers will be willing to pay for the benefits.

In this Viewpoint, we consider the use cases where faster payments are generating revenue for providers today and the solutions that are likely to be profitable in the future.

The post Business Use Cases Generating Real-Time Payment Fees appeared first on PaymentsJournal.

A loyalty program is a rewards system that encourages customers to continue doing business with a particular merchant. Merchants offer loyalty programs as a way to gamify the shopping experience and build customer loyalty. The most common type of loyalty program is a points-based system, where customers earn points for every purchase they make. These points can then be redeemed for discounts, freebies, or other perks. Some merchants also offer tiered loyalty programs, where customers move up to higher levels based on how much they spend. Tiered programs often include additional benefits, such as exclusive access to sales or VIP customer service. Whether simple or complex, all loyalty programs share the same goal: to keep customers coming back for more.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: How Payments Can Drive Better Loyalty and Rewards Programs

Strategic Gamification for Loyalty Programs:

• In gamification, reaching the “next level” not only earns the consumer the designated reward, but also unlocks the ability to earn rewards or benefits that are not yet available.
• Step 1: Incentivize Actions
• Step 2: Elevate Status
• Step 3: Provide Benefits
• Step 4: Promote Engagement
• Step 5: Inform With Data

About Report

Mercator Advisory Group’s most recent report, How Payments Can Drive Better Loyalty and Rewards Programs, provides insight into the new technology driving increased personalization and better customer experiences with loyalty programs, and the important role that payment data can play.

Traditional loyalty programs were a source of data for merchants, better enabling them to identify the repeat customers and track the shopping patterns by rewarding their repeat purchases. The digital environment now gives us an abundance of data that is captured in many ways and in many places, moving these programs to become a use of data that provides a better understanding of customer behavior and the more targeted rewards.

Strategic operating decisions that merchants make in key payments areas including orchestration, tokenization, and service provider selection will affect the ability of the marketing team to mine the loyalty data from payments and has the potential to either enhance or detract from the effectiveness of the loyalty program.

“This is a highly relevant and impactful report,” stated Don Apgar, Director of the Merchant Services and Acquiring practice at Mercator Advisory Group, and author of the report.  “We are following this among a number of growing trends that are making payments a frictionless and invisible part of our everyday activities.”

The post Strategic Gamification for Loyalty Programs appeared first on PaymentsJournal.

Participation in loyalty programs has been shown to result in loyalty enrollment; that is, program members are more likely to continue doing business with a company or brand if they are enrolled in a loyalty program. This loyalty can lead to increased sales and customer lifetime value. Therefore, it is important for companies to encourage their customers to participate in loyalty programs. There are a number of ways to do this, such as offering incentives for signing up, providing exclusive benefits to loyalty members, and making it easy to sign up and participate. By taking these steps, companies can encourage loyalty enrollment and reap the benefits of loyal customers. What factors affect participation?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: How Payments Can Drive Better Loyalty and Rewards Programs

Constructed factors affecting loyalty enrollment and participation:

• Constructed factors are factors that are within the merchant’s control.
• The enrollment process is too difficult.
• Too much personal data is requested.
• There is no mobile app.
• The POS process is too cumbersome.
• The store offers are not relevant.
• The store rewards are not significant.

About Report

Mercator Advisory Group’s most recent report, How Payments Can Drive Better Loyalty and Rewards Programs, provides insight into the new technology driving increased personalization and better customer experiences with loyalty programs, and the important role that payment data can play.

Traditional loyalty programs were a source of data for merchants, better enabling them to identify the repeat customers and track the shopping patterns by rewarding their repeat purchases. The digital environment now gives us an abundance of data that is captured in many ways and in many places, moving these programs to become a use of data that provides a better understanding of customer behavior and the more targeted rewards.

Strategic operating decisions that merchants make in key payments areas including orchestration, tokenization, and service provider selection will affect the ability of the marketing team to mine the loyalty data from payments and has the potential to either enhance or detract from the effectiveness of the loyalty program.

“This is a highly relevant and impactful report,” stated Don Apgar, Director of the Merchant Services and Acquiring practice at Mercator Advisory Group, and author of the report.  “We are following this among a number of growing trends that are making payments a frictionless and invisible part of our everyday activities.”

The post Constructed Factors Affecting Loyalty Enrollment and Participation: appeared first on PaymentsJournal.

Participation in loyalty programs has been steadily increasing in recent years. This trend is driven by a number of factors, including the growing popularity of online shopping and the increasing use of mobile devices. In addition, loyalty programs are becoming more sophisticated, offering personalized rewards and experiences that appeal to consumers. As a result, retailers are finding that loyalty programs are an essential part of their business model. With competition for customer loyalty intensifying, retailers are focused on creating programs that offer value and benefits that appeal to their target audience. In order to be successful, retailers need to ensure that their loyalty program is easy to use and offers rewards that are meaningful to their customers. What factors affect loyalty programs enrollment?

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: How Payments Can Drive Better Loyalty and Rewards Programs

Environmental Factors Affecting Loyalty Enrollment and Participation

• Environmental factors are factors that are out of the merchant’s control.
• The consumer is just visiting the area and will not return to shop at the store.
• The consumer’s purchase is perceived as one-time only.
• The consumer moved away from the store’s area.
• The consumer no longer needs the store’s products.
• A physical or dietary need prevents further participation from the consumer.

About Report

Mercator Advisory Group’s most recent report, How Payments Can Drive Better Loyalty and Rewards Programs, provides insight into the new technology driving increased personalization and better customer experiences with loyalty programs, and the important role that payment data can play.

Traditional loyalty programs were a source of data for merchants, better enabling them to identify the repeat customers and track the shopping patterns by rewarding their repeat purchases. The digital environment now gives us an abundance of data that is captured in many ways and in many places, moving these programs to become a use of data that provides a better understanding of customer behavior and the more targeted rewards.

Strategic operating decisions that merchants make in key payments areas including orchestration, tokenization, and service provider selection will affect the ability of the marketing team to mine the loyalty data from payments and has the potential to either enhance or detract from the effectiveness of the loyalty program.

“This is a highly relevant and impactful report,” stated Don Apgar, Director of the Merchant Services and Acquiring practice at Mercator Advisory Group, and author of the report.  “We are following this among a number of growing trends that are making payments a frictionless and invisible part of our everyday activities.”

The post Environmental Factors Affecting Loyalty Programs Enrollment and Participation: appeared first on PaymentsJournal.

Loyalty programs are one way that businesses can differentiate themselves in vertical markets. These programs reward customers for their repeat business and can be structured in a variety of ways to meet the needs of different verticals. For example, retail programs might offer discounts on future purchases, while healthcare loyalty programs might provide access to exclusive content or rewards for healthy behavior. Loyalty programs can be an important competitive advantage for businesses, and vertical markets are no exception. By understanding the unique needs of vertical market consumers, businesses can design loyalty programs that meet those needs and inspire loyalty among their customers.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: How Payments Can Drive Better Loyalty and Rewards Programs

Top Loyalty Programs by Vertical Market:

• The average consumer belongs to 14.8 programs.
• 59% of consumers participate for supermarkets/grocery stores.
• 52% of consumers participate for pharmacies/drug stores.
• 49% of consumers participate for warehouses/club stores.
• 44% of consumers participate for online-only retailers.
• 42% of consumers participate for airlines/travel.

About Report

Mercator Advisory Group’s most recent report, How Payments Can Drive Better Loyalty and Rewards Programs, provides insight into the new technology driving increased personalization and better customer experiences with loyalty programs, and the important role that payment data can play.

Traditional loyalty programs were a source of data for merchants, better enabling them to identify the repeat customers and track the shopping patterns by rewarding their repeat purchases. The digital environment now gives us an abundance of data that is captured in many ways and in many places, moving these programs to become a use of data that provides a better understanding of customer behavior and the more targeted rewards.

Strategic operating decisions that merchants make in key payments areas including orchestration, tokenization, and service provider selection will affect the ability of the marketing team to mine the loyalty data from payments and has the potential to either enhance or detract from the effectiveness of the loyalty program.

“This is a highly relevant and impactful report,” stated Don Apgar, Director of the Merchant Services and Acquiring practice at Mercator Advisory Group, and author of the report.  “We are following this among a number of growing trends that are making payments a frictionless and invisible part of our everyday activities.”

The post Top Loyalty Programs by Vertical Market appeared first on PaymentsJournal.

A debit card is a plastic card that gives the cardholder a set amount of funds against each purchase that they make. The cards are linked to the cardholder’s bank account, and the funds are transferred immediately upon purchase. Debit cards can be used anywhere credit cards are accepted, and they offer a convenient alternative to cash or checks. Additionally, the cards offer protection against fraud and identity theft. When used responsibly, these cards can be a great way to manage your finances.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Consumer Payment Choice: Understanding Debit Card User Preferences

Popular Consumer Debit Card Use Cases:

• 66% of consumers use cards to get cash from an ATM.
• 64% of consumers use cards to pay for things in-store by entering their PIN.
• 46% of consumers use cards to pay for things at online retailers by entering their card number online.
• 41% of consumers use cards to pay for things in-store via signature authorization.
• 33% of consumers use cards to pay for things in-store by swiping or inserting their card.
• 32% of consumers use cards to get cash back from a merchant.
• 31% of consumers use cards to pay for household bills online by entering their account number from their card.

About Report

Mercator Advisory Group’s most recent report, Consumer Payment Choice: Understanding Debit Card User Preferences, pulls from a wealth of primary data to form an overview of the typical debit card user. Looking at consumers who indicate a preference for debit transactions, the report reveals key demographic traits of those most likely to rely on their cards.

The report then goes on to explore the many use cases for debit cards, providing insights into the consumer segments most likely to use debit in particular circumstances. Embedded within this analysis are recommendations for issuers and processors intended to support customer engagement and debit utilization.

“85% of U.S. adults have a debit card, spanning across all age groups, income brackets, and education levels. However, differences appear when preference for debit payments is considered. It is critical for issuers and processors to have a solid understanding of who prefers to use debit cards and under which circumstances in order to target marketing and rewards initiatives most effectively,” stated the author of the report, Laura Handly, senior analyst at Mercator Advisory Group.

The post Popular Consumer Debit Card Use Cases appeared first on PaymentsJournal.

Millennials are the first generation to come of age in the digital era, and they are quickly making their mark on the world of finance. In particular, millennials are increasingly turning to debit cards as their primary payment method. Debit cards offer several advantages over traditional credit cards, including lower interest rates, no annual fees, and the ability to avoid debt. In addition, debit cards are more widely accepted than credit cards, making them a convenient option for millennials who are always on the go.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Consumer Payment Choice: Understanding Debit Card User Preferences

Frequency of Millennial Debit Card Use:

• Millennial refers to people between 25-44 years old.
• 31% of millennial card holders use their cards every day.
• 37% of millennial card holders use their cards a few times a week.
• 14% of millennial card holders use their cards once a week.
• 10% of millennial card holders use their cards a few times a month.
• 3% of millennial card holders use their cards once a month.
• 5% of millennial card holders use their cards less than once a month.

About Report

Mercator Advisory Group’s most recent report, Consumer Payment Choice: Understanding Debit Card User Preferences, pulls from a wealth of primary data to form an overview of the typical debit card user. Looking at consumers who indicate a preference for debit transactions, the report reveals key demographic traits of those most likely to rely on their debit cards.

The report then goes on to explore the many use cases for debit cards, providing insights into the consumer segments most likely to use debit in particular circumstances. Embedded within this analysis are recommendations for debit card issuers and processors intended to support customer engagement and debit utilization.

“85% of U.S. adults have a debit card, spanning across all age groups, income brackets, and education levels. However, differences appear when preference for debit payments is considered. It is critical for issuers and processors to have a solid understanding of who prefers to use debit cards and under which circumstances in order to target marketing and rewards initiatives most effectively,” stated the author of the report, Laura Handly, senior analyst at Mercator Advisory Group.

The post Frequency of Millennial Debit Card Use appeared first on PaymentsJournal.

While the vast majority of U.S. adults have debit cards, preference for debit transactions is skewed towards younger consumers in lower income brackets. Interestingly, debit was ranked as the most trusted form of payment for both in-store and online transactions by consumers younger than 45 years old. Debit cards were also the most common payment type to be loaded into digital wallets. Debit has numerous competitive advantages over other payment types. This report explores consumer preferences for debit in a variety of use cases.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Consumer Payment Choice: Understanding Debit Card User Preferences

Frequency of Generation Z Debit Card Use:

• Among adult consumers, Generation Z refers to people between 18-24 years old.
• 29% of Gen Z card holders use their cards every day.
• 35% of Gen Z card holders use their cards a few times a week.
• 17% of Gen Z card holders use their cards once a week.
• 11% of Gen Z card holders use their cards a few times a month.
• 4% of Gen Z card holders use their cards once a month.
• 4% of Gen Z card holders use their cards less than once a month.

About Report

Mercator Advisory Group’s most recent report, Consumer Payment Choice: Understanding Debit Card User Preferences, pulls from a wealth of primary data to form an overview of the typical card user. Looking at consumers who indicate a preference for debit transactions, the report reveals key demographic traits of those most likely to rely on their debit cards.

The report then goes on to explore the many use cases for debit cards, providing insights into the consumer segments most likely to use debit in particular circumstances. Embedded within this analysis are recommendations for debit card issuers and processors intended to support customer engagement and debit utilization.

“85% of U.S. adults have a debit card, spanning across all age groups, income brackets, and education levels. However, differences appear when preference for debit payments is considered. It is critical for issuers and processors to have a solid understanding of who prefers to use debit cards and under which circumstances in order to target marketing and rewards initiatives most effectively,” stated the author of the report, Laura Handly, senior analyst at Mercator Advisory Group.

The post Frequency of Generation Z Debit Card Use appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Consumer Payment Choice: Understanding Debit Card User Preferences

Frequency of Monthly Debit Card Use:

• 20% of debit card holders use their debit card every day.
• 35% of debit card holders use their debit card a few times a week.
• 13% of debit card holders use their debit card once a week.
• 14% of debit card holders use their debit card a few times a month.
• 6% of debit card holders use their debit card once a month.
• 13% of debit card holders use their debit card less than once a month.

About Report

Mercator Advisory Group’s most recent report, Consumer Payment Choice: Understanding Debit Card User Preferences, pulls from a wealth of primary data to form an overview of the typical debit card user. Looking at consumers who indicate a preference for debit transactions, the report reveals key demographic traits of those most likely to rely on their debit cards.

The report then goes on to explore the many use cases for debit cards, providing insights into the consumer segments most likely to use debit in particular circumstances. Embedded within this analysis are recommendations for debit card issuers and processors intended to support customer engagement and debit utilization.

“85% of U.S. adults have a debit card, spanning across all age groups, income brackets, and education levels. However, differences appear when preference for debit payments is considered. It is critical for issuers and processors to have a solid understanding of who prefers to use debit cards and under which circumstances in order to target marketing and rewards initiatives most effectively,” stated the author of the report, Laura Handly, senior analyst at Mercator Advisory Group.

The post Frequency of Monthly Debit Card Use: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic

Types of Business Fraud Experienced in Conjunction with Faster Payments:

• 64% of surveyed businesses experienced vendor impersonation fraud in conjunction with faster payments.
• 57% of surveyed businesses experienced CEO fraud in conjunction with faster payments.
• 50% of surveyed businesses experienced invoice fraud in conjunction with faster payments.
• 42% of surveyed businesses experienced authority impersonation fraud in conjunction with faster payments.
• 28% of surveyed businesses experienced some other type of fraud in conjunction with faster payments.

About Report

Mercator Advisory Group released a report covering fraud in commercial payments titled The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic. The research explores the impact of fraud with particular emphasis on the B2B payments space. Through an analysis of internal and external fraud, one can gain a deeper understanding of the most common types of fraud schemes, what payment types are subject to the most payments fraud, and how the industry is fighting back. The report also explores the rise in business email compromise (BEC) fraud and new ways that fraudsters are targeting organizations.

“As fraudsters continue to adapt to ever-changing payment trends, organizations must be ready to defend their bottom lines,” comments Ben Danner, Analyst, at Mercator Advisory Group, and the author of the research report. “Organizations can perform several technological and non-technological interventions to combat this rising problem.”

The post Types of Business Fraud Experienced with Faster Payments: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic

Payment Methods Impacted by Business Email Compromise:

• 43% of surveyed businesses had wire transfers impacted by BEC fraud in 2020.
• 34% of surveyed businesses had ACH credits impacted by BEC fraud in 2020.
• 16% of surveyed businesses had ACH debits impacted by BEC fraud in 2020.
• 14% of surveyed businesses had checks impacted by BEC fraud in 2020.
• 9% of surveyed businesses had corporate credit cards, such as for purchases or fleet, impacted by BEC fraud in 2020.
• 2% of surveyed businesses had gift cards impacted by BEC fraud in 2020.

About Report

Mercator Advisory Group released a report covering fraud in commercial payments titled The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic. The research explores the impact of fraud with particular emphasis on the B2B payments space. Through an analysis of internal and external fraud, one can gain a deeper understanding of the most common types of fraud schemes, what payment types are subject to the most payments fraud, and how the industry is fighting back. The report also explores the rise in business email compromise (BEC) fraud and new ways that fraudsters are targeting organizations.

“As fraudsters continue to adapt to ever-changing payment trends, organizations must be ready to defend their bottom lines,” comments Ben Danner, Analyst, at Mercator Advisory Group, and the author of the research report. “Organizations can perform several technological and non-technological interventions to combat this rising problem.”

The post Payment Methods Impacted by Business Email Compromise: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic

Occupational Fraud Schemes in Banking and Financial Services:

• 40% of surveyed banking or financial services organizations experienced fraud due to corruption.
• 18% of surveyed banking or financial services organizations experienced cash on hand fraud schemes.
• 10% of surveyed banking or financial services organizations experienced financial statement fraud.
• 10% of surveyed banking or financial services organizations experienced noncash fraud.
• 10% of surveyed banking or financial services organizations experienced cash larceny.
• 10% of surveyed banking or financial services organizations experienced fraud due to skimming.

About Report

Mercator Advisory Group released a report covering fraud in commercial payments titled The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic. The research explores the impact of fraud with particular emphasis on the B2B payments space. Through an analysis of internal and external fraud, one can gain a deeper understanding of the most common types of fraud schemes, what payment types are subject to the most payments fraud, and how the industry is fighting back. The report also explores the rise in business email compromise (BEC) fraud and new ways that fraudsters are targeting organizations.

“As fraudsters continue to adapt to ever-changing payment trends, organizations must be ready to defend their bottom lines,” comments Ben Danner, Analyst, at Mercator Advisory Group, and the author of the research report. “Organizations can perform several technological and non-technological interventions to combat this rising problem.”

The post Occupational Fraud Schemes in Banking and Financial Services: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic

Checks Are the Top Vehicle for Commercial Payments Fraud:

• 66% of surveyed organizations experienced actual or attempted check fraud – but incidents have declined by 8% since 2019.
• 39% of surveyed organizations have experienced actual or attempted wire transfer fraud.
• 34% of surveyed organizations have experienced actual or attempted ACH debit fraud.
• 39% of surveyed organizations have experienced actual or attempted wire transfer fraud.
• 24% of surveyed organizations have experienced actual or attempted corporate/commercial credit card fraud.
• 19% of surveyed organizations have experienced actual or attempted ACH credit fraud.
• 6% of surveyed organizations have experienced extortion due to ransomware.

About Report

Mercator Advisory Group released a report covering commercial payments fraud titled The Cost of Fraud: B2B Payments Experience 10% Increase During the Pandemic. The research explores the impact of fraud with particular emphasis on the B2B payments space. Through an analysis of internal and external fraud, one can gain a deeper understanding of the most common types of fraud schemes, what payment types are subject to the most payments fraud, and how the industry is fighting back. The report also explores the rise in business email compromise (BEC) fraud and new ways that fraudsters are targeting organizations.

“As fraudsters continue to adapt to ever-changing payment trends, organizations must be ready to defend their bottom lines,” comments Ben Danner, Analyst, at Mercator Advisory Group, and the author of the research report. “Organizations can perform several technological and non-technological interventions to combat this rising problem.”

The post Checks Are the Top Vehicle for Commercial Payments Fraud: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Quantum Changes Everything: Protect Your Data Now

How Quantum Computing Might Benefit Companies:

• Survey respondents thought quantum computing could improve research capabilities.
• Survey respondents thought quantum computing could increase revenue.
• Survey respondents thought quantum computing could drive innovation.
• Survey respondents thought quantum computing could help achieve competitive advantage.
• Survey respondents thought quantum computing could enhance business process efficiencies.
• Survey respondents thought quantum computing could save costs.
• Survey respondents thought quantum computing could reduce time to market.

About Report

New Mercator research, Quantum Changes Everything: Protect Your Data Now, provides an in-depth status and review of quantum computing today, identifies key opportunities for its utilization in financial services, takes a deep dive into the challenges it represents to our data security, and makes recommendations both for its adoption and how to make plans to protect your data and that of your customers.

The primary finding of this research is that protecting your data against quantum should start today if that transmitted data will still be valuable in the next five years. Adversaries are recording data now for future decryption and exploitation. An additional finding is that quantum computing is already available through the cloud for optimization problems and new estimates suggest that universal quantum computing may be available in just 5 to 10 years, not 20 as is commonly thought. Financial institutions interested in having a first-mover advantage should start to develop the business and IT resources required for that now. This includes the acumen to select the appropriate business problems that will most differentiate the company and will benefit the most from quantum computing and then finding the talent required to develop those programs, remembering that quantum does not use traditional computing skills.

This research explains the different forms of quantum, including universal quantum computing, quantum annealing solutions that have been applied to optimization problems for several years, and quantum key distribution that can protect our data in motion.

“This research identifies several areas that all companies should be focusing on now to protect their data and the data of their customers from adversaries,” commented Tim Sloane, Vice President of Payments Innovation and Director of the Emerging Technology Services Practice at Mercator Advisory Group. “The research also identifies several areas where quantum computing can deliver a competitive edge for those prepared to implement it, which is important, however, the critical issue for today is to protect all of your long-tail data.”

The post How Quantum Computing Might Benefit Companies: appeared first on PaymentsJournal.

Top 5 Vertical Markets Engaged in Quantum Computing:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Quantum Changes Everything: Protect Your Data Now

Top 5 Vertical Markets Engaged in Quantum Computing:

• The relative interest of vertical markets in quantum computing is calculated by weighing proof of concept research programs, in-house pilot programs, use case analysis, and fully funded research efforts.
• The defense industry holds 85% relative interest in quantum computing versus other verticals.
• Computer, electronic, and optical products manufacturers hold 68% relative interest in quantum computing versus other verticals.
• The computer-aided engineering industry holds 53% relative interest in quantum computing versus other verticals.
• The software and internet industry holds 47% relative interest in quantum computing versus other verticals.
• Oil and gas companies hold 44% relative interest in quantum computing versus other verticals.

About Report

New Mercator research, Quantum Changes Everything: Protect Your Data Now, provides an in-depth status and review of quantum computing today, identifies key opportunities for its utilization in financial services, takes a deep dive into the challenges it represents to our data security, and makes recommendations both for its adoption and how to make plans to protect your data and that of your customers.

The primary finding of this research is that protecting your data against quantum should start today if that transmitted data will still be valuable in the next five years. Adversaries are recording data now for future decryption and exploitation. An additional finding is that quantum computing is already available through the cloud for optimization problems and new estimates suggest that universal quantum computing may be available in just 5 to 10 years, not 20 as is commonly thought. Financial institutions interested in having a first-mover advantage should start to develop the business and IT resources required for that now. This includes the acumen to select the appropriate business problems that will most differentiate the company and will benefit the most from quantum computing and then finding the talent required to develop those programs, remembering that quantum does not use traditional computing skills.

This research explains the different forms of quantum, including universal quantum computing, quantum annealing solutions that have been applied to optimization problems for several years, and quantum key distribution that can protect our data in motion.

“This research identifies several areas that all companies should be focusing on now to protect their data and the data of their customers from adversaries,” commented Tim Sloane, Vice President of Payments Innovation and Director of the Emerging Technology Services Practice at Mercator Advisory Group. “The research also identifies several areas where quantum computing can deliver a competitive edge for those prepared to implement it, which is important, however, the critical issue for today is to protect all of your long-tail data.”

The post Top 5 Vertical Markets Engaged in Quantum Computing: appeared first on PaymentsJournal.

Applying Quantum Computing to Real-World Problems:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Quantum Changes Everything: Protect Your Data Now

Applying Quantum Computing to Real-World Problems:

• Quantum computers should be able to solve problems with financial services.
• Quantum computers should be able to solve problems with target marketing.
• Quantum computers should be able to solve problems with optimization calculations.
• Quantum computers should be able to solve problems with machine learning.
• Quantum computers should be able to solve problems with risk management.
• Quantum computers should be able to solve problems with cryptography.

About Report

New Mercator research, Quantum Changes Everything: Protect Your Data Now, provides an in-depth status and review of quantum computing today, identifies key opportunities for its utilization in financial services, takes a deep dive into the challenges it represents to our data security, and makes recommendations both for its adoption and how to make plans to protect your data and that of your customers.

The primary finding of this research is that protecting your data against quantum should start today if that transmitted data will still be valuable in the next five years. Adversaries are recording data now for future decryption and exploitation. An additional finding is that quantum computing is already available through the cloud for optimization problems and new estimates suggest that universal quantum computing may be available in just 5 to 10 years, not 20 as is commonly thought. Financial institutions interested in having a first-mover advantage should start to develop the business and IT resources required for that now. This includes the acumen to select the appropriate business problems that will most differentiate the company and will benefit the most from quantum computing and then finding the talent required to develop those programs, remembering that quantum does not use traditional computing skills.

This research explains the different forms of quantum, including universal quantum computing, quantum annealing solutions that have been applied to optimization problems for several years, and quantum key distribution that can protect our data in motion.

“This research identifies several areas that all companies should be focusing on now to protect their data and the data of their customers from adversaries,” commented Tim Sloane, Vice President of Payments Innovation and Director of the Emerging Technology Services Practice at Mercator Advisory Group. “The research also identifies several areas where quantum computing can deliver a competitive edge for those prepared to implement it, which is important, however, the critical issue for today is to protect all of your long-tail data.”

The post Applying Quantum Computing to Real-World Problems: appeared first on PaymentsJournal.

Dollar Volume of Credit Card Fraud Incidents:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective

Dollar Volume of Credit Card Fraud Incidents:

• 30% of respondents reported under $100 in credit card fraud.
• 31% of respondents reported between $101-$500 in credit card fraud.
• 14% of respondents reported between $501-$1,000 in credit card fraud.
• 11% of respondents reported between $1,001-$2,500 in credit card fraud.
• 14% of respondents reported greater than $2,500 in credit card fraud.

About Report

Mercator Advisory Group’s report, 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective, examines payment methods in relation to fraud, the dollar value of fraud incidents, types of fraud experiences, identity theft-related fraud, consumers’ experience with resolving fraud cases, as well as consumers’ attitudes, not only about fraud but also about the financial institutions they use for banking and bill paying services.

The report is based on the Fraud Experience PaymentsInsights survey administered in January 2022 to a nationally representative sample of 3,611 United States consumers, ages 18 years or older.

“Payment and identity-related fraud prevention can be achieved by building an alliance with consumers and learning from past fraud experiences so that financial institutions and merchants can continue to educate both themselves and their consumers on what patterns to look out for so that they can avoid becoming victims of fraud,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Dollar Volume of Credit Card Fraud Incidents: appeared first on PaymentsJournal.

Percent of Disputed Fraud Events by Payment Method:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective

Percent of Disputed Fraud Events by Payment Method:

• 82.9% of online banking fraud events were disputed.
• 82.5% of universal digital wallet fraud events were disputed.
• 82.7% of fraud events for debit cards attached to a checking account were disputed.
• 82.5% of cryptocurrency fraud events were disputed.
• 81% of credit card fraud events were disputed.
• 78% of P2P payment service fraud events were disputed.
• 75% of personal check fraud events were disputed.

About Report

Mercator Advisory Group’s report, 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective, examines payment methods in relation to fraud, the dollar value of fraud incidents, types of fraud experiences, identity theft-related fraud, consumers’ experience with resolving fraud cases, as well as consumers’ attitudes, not only about fraud but also about the financial institutions they use for banking and bill paying services.

The report is based on the Fraud Experience PaymentsInsights survey administered in January 2022 to a nationally representative sample of 3,611 United States consumers, ages 18 years or older.

“Payment and identity-related fraud prevention can be achieved by building an alliance with consumers and learning from past fraud experiences so that financial institutions and merchants can continue to educate both themselves and their consumers on what patterns to look out for so that they can avoid becoming victims of fraud,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Percent of Disputed Fraud Events by Payment Method: appeared first on PaymentsJournal.

Identity Theft-Related Fraud Experiences by Type:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective

Identity Theft-Related Fraud Experiences by Type:

• 45% of respondents experienced account takeover fraud.
• 43% of respondents reported someone using their payment card to make purchases and/or send money.
• 35% of respondents experienced online shopping fraud.
• 18% of respondents experienced check fraud.
• 15% of respondents experienced tax identity fraud.
• 7% of respondents experienced biometric ID theft.

About Report

Mercator Advisory Group’s report, 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective, examines payment methods in relation to fraud, the dollar value of fraud incidents, types of fraud experiences, identity theft-related fraud, consumers’ experience with resolving fraud cases, as well as consumers’ attitudes, not only about fraud but also about the financial institutions they use for banking and bill paying services.

The report is based on the Fraud Experience PaymentsInsights survey administered in January 2022 to a nationally representative sample of 3,611 United States consumers, ages 18 years or older.

“Payment and identity-related fraud prevention can be achieved by building an alliance with consumers and learning from past fraud experiences so that financial institutions and merchants can continue to educate both themselves and their consumers on what patterns to look out for so that they can avoid becoming victims of fraud,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Identity Theft-Related Fraud Experiences by Type: appeared first on PaymentsJournal.

Top 5 Types of Fraud Experiences for Debit Cards Attached to a Checking Account:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective

Top 5 Types of Fraud Experiences for Debit Cards Attached to a Checking Account:

• 19% of debit card holders had their payment information stolen.
• 11% of debit card holders willingly made a payment for goods or services they never received.
• 9% of debit card holders had their account accessed by someone else who made purchases on their behalf.
• 7% of debit card holders were tricked into providing statement information to scammers.
• 5% of debit card holders were tricked into sending a P2P payment to scammers.

About Report

Mercator Advisory Group’s report, 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective, examines payment methods in relation to fraud, the dollar value of fraud incidents, types of fraud experiences, identity theft-related fraud, consumers’ experience with resolving fraud cases, as well as consumers’ attitudes, not only about fraud but also about the financial institutions they use for banking and bill paying services.

The report is based on the Fraud Experience PaymentsInsights survey administered in January 2022 to a nationally representative sample of 3,611 United States consumers, ages 18 years or older.

“Payment and identity-related fraud prevention can be achieved by building an alliance with consumers and learning from past fraud experiences so that financial institutions and merchants can continue to educate both themselves and their consumers on what patterns to look out for so that they can avoid becoming victims of fraud,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Top 5 Types of Fraud for Debit Cards Attached to a Checking Account: appeared first on PaymentsJournal.

Top 5 Types of Fraud Experiences for Credit Cards:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective

Top 5 Types of Fraud Experiences for Credit Cards:

• 21% of credit card holders had their payment information stolen.
• 14% of credit card holders willingly made a payment for goods or services they never received.
• 9% of credit card holders had their account accessed by someone else who made purchases on their behalf.
• 7% of credit card holders were tricked into providing statement information to scammers.
• 6% of credit card holders were tricked into sending a P2P payment to scammers.

About Report

Mercator Advisory Group’s report, 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective, examines payment methods in relation to fraud, the dollar value of fraud incidents, types of fraud experiences, identity theft-related fraud, consumers’ experience with resolving fraud cases, as well as consumers’ attitudes, not only about fraud but also about the financial institutions they use for banking and bill paying services.

The report is based on the Fraud Experience PaymentsInsights survey administered in January 2022 to a nationally representative sample of 3,611 United States consumers, ages 18 years or older.

“Payment and identity-related fraud prevention can be achieved by building an alliance with consumers and learning from past fraud experiences so that financial institutions and merchants can continue to educate both themselves and their consumers on what patterns to look out for so that they can avoid becoming victims of fraud,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Top 5 Types of Fraud Experiences for Credit Cards: appeared first on PaymentsJournal.

Payment Method-Related Fraud Experiences in the Past 12 Months:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective

Payment Method-Related Fraud Experiences in the Past 12 Months:

• 42% of respondents experienced credit card fraud in the past 12 months.
• 39% of respondents experienced fraud on their debit card attached to a checking account in the past 12 months.
• 22% of respondents experienced online banking fraud, including bank-issued checks and ACH in the past 12 months.
• 12% of respondents experienced fraud on their debit card issued by a P2P payment service such as Venmo or PayPal in the past 12 months.
• 8.3% of respondents experienced fraud directly on their P2P payment service such as PayPal, Venmo, or Cash App in the past 12 months.
• 8.1% of respondents experienced check fraud in the past 12 months.
• 7% of respondents experienced prepaid gift card fraud in the past 12 months.

About Report

Mercator Advisory Group’s report, 2022 Fraud Experience PaymentsInsights: Payment Fraud – The Consumers’ Perspective, examines payment methods in relation to fraud, the dollar value of fraud incidents, types of fraud experiences, identity theft-related fraud, consumers’ experience with resolving fraud cases, as well as consumers’ attitudes, not only about fraud but also about the financial institutions they use for banking and bill paying services.

The report is based on the Fraud Experience PaymentsInsights survey administered in January 2022 to a nationally representative sample of 3,611 United States consumers, ages 18 years or older.

“Payment and identity-related fraud prevention can be achieved by building an alliance with consumers and learning from past fraud experiences so that financial institutions and merchants can continue to educate both themselves and their consumers on what patterns to look out for so that they can avoid becoming victims of fraud,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Payment Method-Related Fraud Experiences in the Past 12 Months: appeared first on PaymentsJournal.

Peer-to-Peer App Safety and Security Concerns in Canada:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights, Canada: The Rise of Digital Payments Emerging from COVID

Peer-to-Peer App Safety and Security Concerns in Canada:

• 71% of Canadian respondents paid for a product or service that they ordered but which was never delivered.
• 46% of Canadian respondents lost money using a P2P service.
• 42% of Canadian respondents reported their bank account as compromised after using a P2P app.
• 38% of Canadian respondents received a fraudulent charge using a P2P service.
• 32% of Canadian respondents sent money to the wrong recipient using a P2P app.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights, Canada: The Rise of Digital Payments Emerging from COVID, analyzes the impact of COVID within Canada on consumer payment preferences. The report reveals generational differences in the use of a range of payment forms including cash, cheques, cards, and digital payments.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a nationally representative sample of 1,002 Canadian consumers, ages 18 years or older.

“Payment technology is creating rapid shifts in consumer payment preferences, with COVID acting as a direct change agent, resulting in declines in use of paper payments via cash or cheques. At the same time, we are seeing emerging technologies such as peer-to-peer payments making a large impact on the consumer payment market,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Peer-to-Peer App Safety and Security Concerns in Canada: appeared first on PaymentsJournal.

Canadian Use of Non-Bank or Credit Union P2P Apps:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights, Canada: The Rise of Digital Payments Emerging from COVID

Canadian Use of Non-Bank or Credit Union P2P Apps:

• 20% of Canadian respondents use one non-bank/CU P2P app.
• 5% of Canadian respondents use two non-bank/CU P2P apps.
• 7% of Canadian respondents use three non-bank/CU P2P apps.
• 9% of Canadian respondents use four non-bank/CU P2P apps.
• 4% of Canadian respondents use five or more non-bank/CU P2P apps.
• 55% of Canadian respondents do not use any non-bank/CU P2P apps.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights, Canada: The Rise of Digital Payments Emerging from COVID, analyzes the impact of COVID within Canada on consumer payment preferences. The report reveals generational differences in the use of a range of payment forms including cash, cheques, cards, and digital payments.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a nationally representative sample of 1,002 Canadian consumers, ages 18 years or older.

“Payment technology is creating rapid shifts in consumer payment preferences, with COVID acting as a direct change agent, resulting in declines in use of paper payments via cash or cheques. At the same time, we are seeing emerging technologies such as peer-to-peer payments making a large impact on the consumer payment market,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Canadian Use of Non-Bank or Credit Union P2P Apps: appeared first on PaymentsJournal.

Canadian Use of P2P Payment Apps Supported by Financial Institutions:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights, Canada: The Rise of Digital Payments Emerging from COVID

Canadian Use of P2P Payment Apps Supported by Financial Institutions:

• 38% of Canadian respondents use one FI-supported P2P app.
• 16% of Canadian respondents use two FI-supported P2P apps.
• 10% of Canadian respondents use three FI-supported P2P apps.
• 9% of Canadian respondents use four FI-supported P2P apps.
• 7% of Canadian respondents use five or more FI-supported P2P apps.
• 19% of Canadian respondents do not use any FI-supported P2P apps.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights, Canada: The Rise of Digital Payments Emerging from COVID, analyzes the impact of COVID within Canada on consumer payment preferences. The report reveals generational differences in the use of a range of payment forms including cash, cheques, cards, and digital payments.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a nationally representative sample of 1,002 Canadian consumers, ages 18 years or older.

“Payment technology is creating rapid shifts in consumer payment preferences, with COVID acting as a direct change agent, resulting in declines in use of paper payments via cash or cheques. At the same time, we are seeing emerging technologies such as peer-to-peer payments making a large impact on the consumer payment market,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Canadian Use of P2P Payment Apps Supported by Financial Institutions: appeared first on PaymentsJournal.

Trends for Three Major Mobile Wallets in Canada:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights, Canada: The Rise of Digital Payments Emerging from COVID

Trends for Three Major Mobile Wallets in Canada:

• 47% of Canadian consumers used Apple Pay to make an in-store purchase.
• 39% of Canadian consumers used Apple Pay to make an online purchase.
• 31% of Canadian consumers used Google Pay to make an in-store purchase.
• 43% of Canadian consumers used Google Pay to make an online purchase.
• 19% of Canadian consumers used Samsung Pay to make an in-store purchase.
• 27% of Canadian consumers used Samsung Pay to make an online purchase.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights, Canada: The Rise of Digital Payments Emerging from COVID, analyzes the impact of COVID within Canada on consumer payment preferences. The report reveals generational differences in the use of a range of payment forms including cash, cheques, cards, and digital payments.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a nationally representative sample of 1,002 Canadian consumers, ages 18 years or older.

“Payment technology is creating rapid shifts in consumer payment preferences, with COVID acting as a direct change agent, resulting in declines in use of paper payments via cash or cheques. At the same time, we are seeing emerging technologies such as peer-to-peer payments making a large impact on the consumer payment market,” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Trends for Three Major Mobile Wallets in Canada: appeared first on PaymentsJournal.

Top Drivers of Non-Traditional Installment Borrowing by Consumers with Credit Cards:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Installment Lending: Fintechs Gaining Ground on Loans Forecast at $212 Billion

Top Drivers of Non-Traditional Installment Borrowing by Consumers with Credit Cards:

• 309 surveyed loanees took out an online loan because it offered a better and more convenient experience than going to a bank.
• 285 surveyed loanees took out an online loan because it offered more attractive loan terms than a bank.
• 259 surveyed loanees took out an online loan because it offered lower interest rates than a bank.
• 231 surveyed loanees took out an online loan because they were turned down from their bank.
• 209 surveyed loanees took out an online loan because they thought online lenders were more likely to approve their loan than a bank.
• 166 surveyed loanees took out an online loan because it was faster to get approval from them than from a bank.
• 56 surveyed loanees took out an online loan because their bank didn’t offer the type of loan they needed.

About Report

Mercator Advisory Group released a report on trends in installment lending titled Installment Lending: Fintechs Gaining Ground on Loans Forecast at $212 Billion. The research explains the state of consumer installment lending in the United States and how fintechs and finance companies now outpace banks and credit unions in installment loans. Furthermore, this research examines how companies are offering embedded finance products such as CCaaS to allow customers the ability to offer their own credit card product. By way of four evaluative criteria, general advice is provided for those seeking a relationship with a fintech provider.

“Banks used to dominate consumer lending, with installment lending products priced far lower than credit cards, but that is no longer the case,” comments Brian Riley, Director of the Credit practice at Mercator Advisory Group, and the author of the research report. “Buy Now, Pay Later (BNPL) was a wake-up call to credit card issuers. BNPL was a recast of a merchant finance model used long ago by companies like GECC (now Synchrony) and Household Finance Corporation (acquired by Capital One). Now, fintechs are moving in the same direction with installment loans,” Riley says.

The post Top Drivers of Non-Traditional Installment Borrowing: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Installment Lending: Fintechs Gaining Ground on Loans Forecast at $212 Billion

U.S. Household Debt by Type:

• Collateralized debt from mortgages and home equity lines of credit accounts for 73% of U.S. consumer debt.
• Collateralized debt from auto loans accounts for 9% of U.S. consumer debt.
• Unsecured credit card debt accounts for 5% of U.S. consumer debt.
• Unsecured student loan debt accounts for 10% of all U.S. consumer debt.
• 3% of U.S. consumer debt is classified as “other,” which includes short-term loans, checking account credit lines, and ancillary lending.

About Report

Mercator Advisory Group released a report on trends in installment lending titled Installment Lending: Fintechs Gaining Ground on Loans Forecast at $212 Billion. The research explains the state of consumer installment lending in the United States and how fintechs and finance companies now outpace banks and credit unions in installment loans. Furthermore, this research examines how companies are offering embedded finance products such as CCaaS to allow customers the ability to offer their own credit card product. By way of four evaluative criteria, general advice is provided for those seeking a relationship with a fintech provider.

“Banks used to dominate consumer lending, with installment lending products priced far lower than credit cards, but that is no longer the case,” comments Brian Riley, Director of the Credit practice at Mercator Advisory Group, and the author of the research report. “Buy Now, Pay Later (BNPL) was a wake-up call to credit card issuers. BNPL was a recast of a merchant finance model used long ago by companies like GECC (now Synchrony) and Household Finance Corporation (acquired by Capital One). Now, fintechs are moving in the same direction with installment loans,” Riley says.

The post U.S. Household Debt by Type: appeared first on PaymentsJournal.

Payment Technologies Used by Older Generations:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption

Payment Technologies Used by Older Generations:

• Older generations refer to Gen X (age 41-56) and Baby Boomers (age 57-75).
• 87% of older consumers inserted a payment card into a payment terminal in the past 12 months.
• 34% of older consumers waved or tapped a payment card at the payment terminal in the past 12 months.
• 18.7% of older consumers used a universal payment app or wallet in the past 12 months.
• 18.5% of older consumers used a smartphone with a retailer-specific payment app in the past 12 months.
• 6.8% of older consumers used a smartwatch or other wearable with a universal payment app/wallet in the past 12 months.
• 6.7% of older consumers used a smartwatch or other wearable with a retailer-specific payment app in the past 12 months.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption, analyzes the informed and savvy shopper’s preferences and influences regarding use of mobile payment technology and digital payment adoption. Purchasing behaviors of consumers are highlighted and compared as they make purchases in stores, in apps, and on the web.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a U.S. nationally representative sample of 3000 consumers, ages 18 years or older.

“User preferences are vital influences on smartphone adoption, which seem to be a low-risk option for most. However, the adoption of digital wallet technology seems to be a concern for some.” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Payment Technologies Used by Older Generations: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption

Payment Technologies Used by Younger Generations:

• Younger generations refer to Gen Z (age 18-24) and Millennials (age 25-40).
• 47% of younger consumers inserted a payment card into a payment terminal in the past 12 months.
• 29% of younger consumers waved or tapped a payment card at the payment terminal in the past 12 months.
• 28% of younger consumers used a universal payment app or wallet in the past 12 months.
• 31% of younger consumers used a smartphone with a retailer-specific payment app in the past 12 months.
• 19% of younger consumers used a smartwatch or other wearable with a universal payment app/wallet in the past 12 months.
• 22% of younger consumers used a smartwatch or other wearable with a retailer-specific payment app in the past 12 months.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption, analyzes the informed and savvy shopper’s preferences and influences regarding use of mobile payment technology and digital payment adoption. Purchasing behaviors of consumers are highlighted and compared as they make purchases in stores, in apps, and on the web.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a U.S. nationally representative sample of 3000 consumers, ages 18 years or older.

“User preferences are vital influences on smartphone adoption, which seem to be a low-risk option for most. However, the adoption of digital wallet technology seems to be a concern for some.” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Payment Technologies Used by Younger Generations: appeared first on PaymentsJournal.

In-Store Shopping Activities with Mobile Phones:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption

In-Store Shopping Activities with Mobile Phones:

• 53.4% of consumers used a mobile phone to redeem an electronic coupon.
• 52.8% of consumers used a mobile app downloaded from the retailer to check in to the store.
• 46% of consumers used a mobile app downloaded from the retailer where they were currently shopping.
• 44% of consumers paid for an item with a mobile wallet.
• 37% of consumers used a mobile app downloaded from a retailer to scan items into their shopping cart.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption, analyzes the informed and savvy shopper’s preferences and influences regarding use of mobile payment technology and digital payment adoption. Purchasing behaviors of consumers are highlighted and compared as they make purchases in stores, in apps, and on the web.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a U.S. nationally representative sample of 3000 consumers, ages 18 years or older.

“User preferences are vital influences on smartphone adoption, which seem to be a low-risk option for most. However, the adoption of digital wallet technology seems to be a concern for some.” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post In-Store Shopping Activities with Mobile Phones: appeared first on PaymentsJournal.

With the rise of mobile commerce, comparison shopping has never been easier. With a few taps on their smartphones, consumers can instantly compare prices and reviews of products from a variety of retailers. This convenience has made comparison shopping a popular activity among mobile users, with nearly half of all shoppers using their phones to compare prices before making a purchase. While this trend is good news for consumers, it has created a challenge for retailers who must now compete not only on price but also on the quality of their mobile shopping experience.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption

Mobile Phone Use for In-Store Comparison Shopping:

• 68% of consumers used a mobile phone to check prices online for items of interest.
• 67% of consumers used a mobile phone to research a product in more detail.
• 60% of consumers used a mobile phone to read user reviews for items of interest.
• 52% of consumers used a mobile phone to search for an electronic coupon.
• 41% of consumers used a mobile app that enabled them to shop for similar items.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption, analyzes the informed and savvy shopper’s preferences and influences regarding use of mobile payment technology and digital payment adoption. Purchasing behaviors of consumers are highlighted and compared as they make purchases in stores, in apps, and on the web.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a U.S. nationally representative sample of 3000 consumers, ages 18 years or older.

“User preferences are vital influences on smartphone adoption, which seem to be a low-risk option for most. However, the adoption of digital wallet technology seems to be a concern for some.” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Mobile Phone Use for In-Store Comparison Shopping appeared first on PaymentsJournal.

The widespread adoption of bill pay services has made it easier than ever to pay your bills on time. However, there are still a number of people who prefer to pay their bills in person or by check. For these people, real-time payments offer a convenient way to pay their bills without having to go to the bank or post office. Real-time payments are processed immediately, which means that you can be sure your bill will be paid on time. In addition, real-time payments can be made from anywhere in the world, allowing you to pay your bill even if you’re traveling. Whether you’re paying rent, utilities, or another type of bill, real-time payments offer a convenient and reliable way to get the job done.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 U.S. Faster Payments Forecast: A Year to Build On

Importance of Real-Time or Faster Payments for Bill Pay:

• 22.8% of consumers rate real-time or faster payments use as very important.
• 26.5% of consumers rate real-time or faster payments use as important.
• 23.9% of consumers rate real-time or faster payments use as somewhat important.
• 11% of consumers rate real-time or faster payments use as not important.
• 15.8% of consumers rate real-time or faster payments use as not at all important.

About Report

2021 was an important build-out year for real-time and faster payments in the U.S., as explored in Mercator Advisory Group’s annual look at the market; 2022 U.S. Faster Payments Forecast: A Year to Build On. Payment options such as the debit network’s debit push payments, The Clearing House RTP network, Same Day ACH, and Zelle all experienced strong growth dependent on the specific use cases where each predominates and the maturity of their respective solutions. Following through on the pandemic fueled growth in 2020, more financial institutions and technology providers integrated to faster and real-time rails, launched new products, and advanced their strategies.

“We have found in the last year that consumers are becoming much more aware that some payments transact quickly, even instantly, which for transaction types like bill pay, account-to-account transfer and some person-to-person funds movement is beneficial. This leads to a compounding effect that is creating greater demand for faster payments in more use cases,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.

The post Importance of Real-Time or Faster Payments for Bill Pay appeared first on PaymentsJournal.

Importance of Real-Time or Faster Payments for Banking A2A Transfers:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 U.S. Faster Payments Forecast: A Year to Build On

Importance of Real-Time or Faster Payments for Banking A2A Transfers:

• 19.9% of consumers rate real-time or faster payments use for banking account-to-account transfers as very important.
• 23.5% of consumers rate real-time or faster payments use for banking account-to-account transfers as important.
• 26.1% of consumers rate real-time or faster payments use for banking account-to-account transfers as somewhat important.
• 11.9% of consumers rate real-time or faster payments use for banking account-to-account transfers as not important.
• 18.6% of consumers rate real-time or faster payments use for banking account-to-account transfers as not at all important.

About Report

2021 was an important build-out year for real-time and faster payments in the U.S., as explored in Mercator Advisory Group’s annual look at the market; 2022 U.S. Faster Payments Forecast: A Year to Build On. Payment options such as the debit network’s debit push payments, The Clearing House RTP network, Same Day ACH, and Zelle all experienced strong growth dependent on the specific use cases where each predominates and the maturity of their respective solutions. Following through on the pandemic fueled growth in 2020, more financial institutions and technology providers integrated to faster and real-time rails, launched new products, and advanced their strategies.

“We have found in the last year that consumers are becoming much more aware that some payments transact quickly, even instantly, which for transaction types like bill pay, account-to-account transfer and some person-to-person funds movement is beneficial. This leads to a compounding effect that is creating greater demand for faster payments in more use cases,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.

The post Importance of Real-Time or Faster Payments for Banking A2A Transfers: appeared first on PaymentsJournal.

Importance of Real-Time or Faster Payments for Receiving Funds In a P2P App:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 U.S. Faster Payments Forecast: A Year to Build On

Importance of Real-Time or Faster Payments for Receiving Funds In a P2P App:

• 17.9% of consumers rate real-time or faster payments use for receiving funds in a P2P app as very important.
• 20.5% of consumers rate real-time or faster payments use for receiving funds in a P2P app as important.
• 24.6% of consumers rate real-time or faster payments use for receiving funds in a P2P app as somewhat important.
• 13.7% of consumers rate real-time or faster payments use for receiving funds in a P2P app as not important.
• 23.4% of consumers rate real-time or faster payments use for receiving funds in a P2P app as not at all important.

About Report

2021 was an important build-out year for real-time and faster payments in the U.S., as explored in Mercator Advisory Group’s annual look at the market; 2022 U.S. Faster Payments Forecast: A Year to Build On. Payment options such as the debit network’s debit push payments, The Clearing House RTP network, Same Day ACH, and Zelle all experienced strong growth dependent on the specific use cases where each predominates and the maturity of their respective solutions. Following through on the pandemic fueled growth in 2020, more financial institutions and technology providers integrated to faster and real-time rails, launched new products, and advanced their strategies.

“We have found in the last year that consumers are becoming much more aware that some payments transact quickly, even instantly, which for transaction types like bill pay, account-to-account transfer and some person-to-person funds movement is beneficial. This leads to a compounding effect that is creating greater demand for faster payments in more use cases,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.

The post Importance of Faster Payments for Receiving Funds in a P2P App: appeared first on PaymentsJournal.

Importance of Real-Time or Faster Payments for Sending Funds Through a P2P App:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 U.S. Faster Payments Forecast: A Year to Build On

Importance of Real-Time or Faster Payments for Sending Funds Through a P2P App:

• 17.7% of consumers rate real-time or faster payments use for sending funds through a P2P app as very important.
• 17.6% of consumers rate real-time or faster payments use for sending funds through a P2P app as important.
• 25% of consumers rate real-time or faster payments use for sending funds through a P2P app as somewhat important.
• 15.2% of consumers rate real-time or faster payments use for sending funds through a P2P app as not important.
• 24.5% of consumers rate real-time or faster payments use for sending funds through a P2P app as not at all important.

About Report

2021 was an important build-out year for real-time and faster payments in the U.S., as explored in Mercator Advisory Group’s annual look at the market; 2022 U.S. Faster Payments Forecast: A Year to Build On. Payment options such as the debit network’s debit push payments, The Clearing House RTP network, Same Day ACH, and Zelle all experienced strong growth dependent on the specific use cases where each predominates and the maturity of their respective solutions. Following through on the pandemic fueled growth in 2020, more financial institutions and technology providers integrated to faster and real-time rails, launched new products, and advanced their strategies.

“We have found in the last year that consumers are becoming much more aware that some payments transact quickly, even instantly, which for transaction types like bill pay, account-to-account transfer and some person-to-person funds movement is beneficial. This leads to a compounding effect that is creating greater demand for faster payments in more use cases,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.

The post Importance of Faster Payments for Sending Funds Through a P2P App: appeared first on PaymentsJournal.

Digital Wallet Use for Payment Cards:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Prepaid Cards Break Through Conventional Restrictions and Now Behave Like Traditional Credit and Debit Cards

Digital Wallet Use for Payment Cards:

• 60% of cardholders used a digital wallet for their debit card in 2021.
• 46% of cardholders used a digital wallet for their credit card in 2021.
• 22% of cardholders used a digital wallet for their prepaid debit card in 2021.
• 17% of cardholders used a digital wallet for their general purpose gift card in 2021.
• 14% of cardholders used a digital wallet for their retailer gift card in 2021.
• 9% of cardholders used a digital wallet for their loyalty card in 2021.

About Viewpoint

The prepaid card industry has benefitted from significant technological advances in recent years, which serve to make prepaid offerings more secure, convenient, and appealing to consumers of all types. This viewpoint examines the most widely used technologies in prepaid physical cards, as well as some of the most important developing technologies in the space. After identifying the leading drivers of progress within the prepaid market, we offer readers recommendations for remaining competitive.

The post Digital Wallet Use for Payment Cards: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Prepaid Cards Break Through Conventional Restrictions and Now Behave Like Traditional Credit and Debit Cards

Market Share of Digital Prepaid Cards by Segment::

• Digital prepaid cards accounted for 5.5% of gift cards for online services such as music or online gaming in 2021.
• Digital prepaid cards accounted for 4.8% of prepaid mobile phone cards in 2021.
• Digital prepaid cards accounted for 4.6% of transit prepaid cards including commuter rail, subway, bus and toll transponder/cards in 2021.
• Digital prepaid cards accounted for 4.3% of specific retailer gift/prepaid cards that do not have a processing network logo in 2021.
• Digital prepaid cards accounted for 4% of general purpose reloadable prepaid cards in 2021.
• Digital prepaid cards accounted for 3.3% of general purpose non-reloadable gift/prepaid cards with a processing network logo in 2021.

About Viewpoint

The prepaid card industry has benefitted from significant technological advances in recent years, which serve to make prepaid offerings more secure, convenient, and appealing to consumers of all types. This viewpoint examines the most widely used technologies in prepaid physical cards, as well as some of the most important developing technologies in the space. After identifying the leading drivers of progress within the prepaid market, we offer readers recommendations for remaining competitive.

The post Market Share of Digital Prepaid Cards by Segment: appeared first on PaymentsJournal.

API Technology Challenges Practioners Want Solved in the Near Future:

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Treasury Automation: Adapting to Increased Expectations

API Technology Challenges Practitioners Want Solved in the Near Future:

• 52% of API practitioners surveyed in 2021 say that standardization is a top API technology challenge they hope to solve in the near future.
• 40% of API practitioners surveyed in 2021 say that security is a top API technology challenge they hope to solve in the near future.
• 36% of API practitioners surveyed in 2021 say that scalability is a top API technology challenge they hope to solve in the near future.
• 36% of API practitioners surveyed in 2021 say that versioning is a top API technology challenge they hope to solve in the near future.
• 34% of API practitioners surveyed in 2021 say that authentication is a top API technology challenge they hope to solve in the near future.
• 34% of API practitioners surveyed in 2021 say easier integration between tools is a top API technology challenge they hope to solve in the near future.

About Report

Automating treasury operations has been a steady goal in corporate finance since at least the mid-2000s. The increasing technology capabilities of the past several years, along with the pandemic, which has refocused the corporate world on liquidity, have combined to help shift treasury automation into a higher gear. In a new research report, Treasury Automation: Adapting to Increased Expectations, Mercator Advisory Group reviews the traditional and now changing role of treasury management into a more strategic resource for the CFO. Forward-thinking financial institutions, traditional treasury management solution providers, and latest generation fintechs are striving to assist their corporate clientele to optimize their capabilities in treasury operations. Companies are looking to their providers to help move them to a new level of effectiveness.

“Treasury management has traditionally been a specialized and lightly resourced area of corporate finance. This began to change after the global financial crisis as the role of treasury began to expand in the planning and execution of corporate financial imperatives,” commented Steve Murphy, Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service, author of the report. “That adaptation through technology advancements continues and, of course, received a boost from pandemic-generated issues when the recognition of digitized financial processes as a catalyst for improved financial operations became quite clear to many, especially lagging organizations.”

The post API Technology Challenges Practitioners Want Solved in the Near Future: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Treasury Automation: Adapting to Increased Expectations

Trends That Will Impact Companies’ Risk Management Strategy:

• 61% of surveyed treasury professionals say treasury digitization will have a material impact on their company and risk management strategy in the next three years.
• 51% of treasury professionals say changes in operating business profile and global exposures will have a material impact on their company and risk management strategy in the next three years.
• 50% of treasury professionals say external digitization will have a material impact on their company and risk management strategy in the next three years.
• 43% of treasury professionals say geopolitical uncertainties will have a material impact on their company and risk management strategy in the next three years.
• 36% of treasury professionals say changes in group structure will have a material impact on their company and risk management strategy in the next three years.
• 34% of changes in FX regimes and regulations will have a material impact on their company and risk management strategy in the next three years.

About Report

Automating treasury operations has been a steady goal in corporate finance since at least the mid-2000s. The increasing technology capabilities of the past several years, along with the pandemic, which has refocused the corporate world on liquidity, have combined to help shift treasury automation into a higher gear. In a new research report, Treasury Automation: Adapting to Increased Expectations, Mercator Advisory Group reviews the traditional and now changing role of treasury management into a more strategic resource for the CFO. Forward-thinking financial institutions, traditional treasury management solution providers, and latest generation fintechs are striving to assist their corporate clientele to optimize their capabilities in treasury operations. Companies are looking to their providers to help move them to a new level of effectiveness.

“Treasury management has traditionally been a specialized and lightly resourced area of corporate finance. This began to change after the global financial crisis as the role of treasury began to expand in the planning and execution of corporate financial imperatives,” commented Steve Murphy, Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service, author of the report. “That adaptation through technology advancements continues and, of course, received a boost from pandemic-generated issues when the recognition of digitized financial processes as a catalyst for improved financial operations became quite clear to many, especially lagging organizations.”

The post Trends That Will Impact Companies’ Risk Management Strategy: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 U.S. Faster Payments Forecast: A Year to Build On

Consumers Tend to Use Just One App for P2P Transactions:

• 48% of consumers regularly use just one P2P app.
• 26% of consumers regularly use two P2P apps.
• 25% of consumers regularly use three P2P apps.
• 21% of consumers regularly use four P2P apps.
• 16% of consumers regularly use five or more P2P apps.

About Report

2021 was an important build-out year for real-time and faster payments in the U.S., as explored in Mercator Advisory Group’s annual look at the market; 2022 U.S. Faster Payments Forecast: A Year to Build On. Payment options such as the debit network’s debit push payments, The Clearing House RTP network, Same Day ACH, and Zelle all experienced strong growth dependent on the specific use cases where each predominates and the maturity of their respective solutions. Following through on the pandemic fueled growth in 2020, more financial institutions and technology providers integrated to faster and real-time rails, launched new products, and advanced their strategies.

“We have found in the last year that consumers are becoming much more aware that some payments transact quickly, even instantly, which for transaction types like bill pay, account-to-account transfer and some person-to-person funds movement is beneficial. This leads to a compounding effect that is creating greater demand for faster payments in more use cases,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.

The post Consumers Tend to Use Just One App for P2P Transactions: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 U.S. Faster Payments Forecast: A Year to Build On

Consumer Usage of Faster Payments:

• 21.8% of consumers have used a P2P transfer network such as Zelle to transfer money within minutes/seconds.
• 19.3% of consumers have sent funds through a P2P app to a recipient in another country who received the funds within minutes/seconds.
• 14.5% of consumers have transferred funds to another account they own at another financial institution within minutes/seconds.
• 8.4% have needed to pay a bill quickly to avoid being late and was able to do so within minutes/seconds.
• 5.9% of consumers have been refunded for a product or service and received the funds within minutes/seconds.
• 5.0% of consumers have sold property and received the proceeds from that sale within minutes/seconds.

About Report

2021 was an important build-out year for real-time and faster payments in the U.S., as explored in Mercator Advisory Group’s annual look at the market; 2022 U.S. Faster Payments Forecast: A Year to Build On. Payment options such as the debit network’s debit push payments, The Clearing House RTP network, Same Day ACH, and Zelle all experienced strong growth dependent on the specific use cases where each predominates and the maturity of their respective solutions. Following through on the pandemic fueled growth in 2020, more financial institutions and technology providers integrated to faster and real-time rails, launched new products, and advanced their strategies.

“We have found in the last year that consumers are becoming much more aware that some payments transact quickly, even instantly, which for transaction types like bill pay, account-to-account transfer and some person-to-person funds movement is beneficial. This leads to a compounding effect that is creating greater demand for faster payments in more use cases,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.

The post Consumer Usage of Faster Payments: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market

Top Payment Methods Currently Used for Subscription Services:

• 43% of consumers use a credit card to pay for a video streaming subscription; 39% use a debit card.
• 37% of consumers use a credit card to pay for a music streaming subscription; 48% use a debit card.
• 55% of consumers use a credit card to pay for a news or magazine subscription; 22% use a debit card.
• 48% of consumers use a credit card to pay for a software subscription; 38% use a debit card.
• 42% of consumers use a credit card to pay for a premium app subscription; 48% use a debit card.
• 41% of consumers use a credit card to pay for a box-of-the-month subscription; 50% use a debit card.

About Report

Mercator Advisory Group released a report covering the recurring payments and subscription marketplace titled Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market. The research defines and explains the recurring payments market and forecast, discusses the consumer demands in the subscription marketplace, and examines areas of opportunity for merchants and issuers such as churn optimization and lessons from the subscription app marketplace. Furthermore, this research explores last year’s regulatory changes to recurring payments in India.

“Reducing friction is the key to customer generation and retention,” comments Ben Danner, Analyst, at Mercator Advisory Group, and the author of the research report. There are a number of opportunities that exist to develop and refine the recurring payments economy.

The post Top Payment Methods Currently Used for Subscription Services appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market

Subscription Service Types that Offer a Digital Wallet Payment Method:

• 37.8% of education subscription services offer a digital wallet payment method.
• 36.7% of digital media & entertainment subscription services offer a digital wallet payment method.
• 22.3% of consumer goods & retail subscription services offer a digital wallet payment method.
• 13.6% of business & professional subscription services offer a digital wallet payment method
• 9.10% of software subscription services offer a digital wallet payment method
  

About Report

Mercator Advisory Group released a report covering the recurring payments and subscription marketplace titled Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market. The research defines and explains the recurring payments market and forecast, discusses the consumer demands in the subscription marketplace, and examines areas of opportunity for merchants and issuers such as churn optimization and lessons from the subscription app marketplace. Furthermore, this research explores last year’s regulatory changes to recurring payments in India.

“Reducing friction is the key to customer generation and retention,” comments Ben Danner, Analyst, at Mercator Advisory Group, and the author of the research report. There are a number of opportunities that exist to develop and refine the recurring payments economy.

The post Subscription Services that Offer a Digital Wallet Payment Method: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market

Most Popular Online Subscription Types in 2021:

• 61% of U.S. consumers had at least one online subscription in 2021.
• 49% of U.S. consumers had a video streaming subscription in 2021.
• 27% of U.S. consumers had a music streaming subscription in 2021.
• 16% of U.S. consumers had a news or magazine subscription in 2021.
• 14% of U.S. consumers had a software subscription in 2021.
• 11% of U.S. consumers had a premium app subscription in 2021.

About Report

Mercator Advisory Group released a report covering the recurring payments and subscription marketplace titled Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market. The research defines and explains the recurring payments market and forecast, discusses the consumer demands in the subscription marketplace, and examines areas of opportunity for merchants and issuers such as churn optimization and lessons from the subscription app marketplace. Furthermore, this research explores last year’s regulatory changes to recurring payments in India.

“Reducing friction is the key to customer generation and retention,” comments Ben Danner, Analyst, at Mercator Advisory Group, and the author of the research report. There are a number of opportunities that exist to develop and refine the recurring payments economy.

The post Most Popular Online Subscription Types in 2021: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market

Median Voluntary Churn Rate by Subscription Industry:

• Voluntary churn occurs when a customer chooses to cancel a service on their own accord.
• The business & professional services subscription industry has a median voluntary churn rate of 2.70%.
• The consumer goods & retail subscription industry has a median voluntary churn rate of 3.50%.
• The digital media & entertainment subscription industry has a median voluntary churn rate of 3.30%.
• The education subscription industry has a median voluntary churn rate of 3.40%.
• The software subscription industry has a median voluntary churn rate of 2.10%.

About Report

Mercator Advisory Group released a report covering the recurring payments and subscription marketplace titled Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market. The research defines and explains the recurring payments market and forecast, discusses the consumer demands in the subscription marketplace, and examines areas of opportunity for merchants and issuers such as churn optimization and lessons from the subscription app marketplace. Furthermore, this research explores last year’s regulatory changes to recurring payments in India.

“Reducing friction is the key to customer generation and retention,” comments Ben Danner, Analyst, at Mercator Advisory Group, and the author of the research report. There are a number of opportunities that exist to develop and refine the recurring payments economy.

The post Median Voluntary Churn Rate by Subscription Industry: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption

Online Mobile Payment App Usage:

• 38% of consumers have used the Starbucks app to make a payment online.
• 38% of consumers have used the McDonalds app to make a payment online.
• 37% of consumers have used the Target app to make a payment online.
• 36% of consumers have used the Dunkin’ Donuts app to make a payment online.
• 36% of consumers have used the Domino’s app to make a payment online.
• 36% of consumers have used the Pizza Hut app to make a payment online.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption, analyzes the informed and savvy shopper’s preferences and influences regarding use of mobile payment technology and digital payment adoption. Purchasing behaviors of consumers are highlighted and compared as they make purchases in stores, in apps, and on the web.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a U.S. nationally representative sample of 3000 consumers, ages 18 years or older.

“User preferences are vital influences on smartphone adoption, which seem to be a low-risk option for most. However, the adoption of digital wallet technology seems to be a concern for some.” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Online Mobile Payment App Usage: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market

Median Involuntary Churn Rate by Subscription Industry:

• Involuntary churn occurs when issues caused by errors associated with a payment transaction cause a customer to exit a service.
• The business & professional services subscription industry has a median involuntary churn rate of 1.90%.
• The consumer goods & retail subscription industry has an involuntary churn rate of 3.60%.
• The digital media & entertainment subscription industry has an involuntary churn rate of 2.10%.
• The education subscription industry has an involuntary churn rate of 3.20%.
• The software subscription industry has an involuntary churn rate of 1.60%.

About Report

Mercator Advisory Group released a report covering the recurring payments and subscription marketplace titled Processing Recurring and Subscription Payments Without Friction: A Key to Unlocking Transactions from a Forecasted $830 Billion Card Market. The research defines and explains the recurring payments market and forecast, discusses the consumer demands in the subscription marketplace, and examines areas of opportunity for merchants and issuers such as churn optimization and lessons from the subscription app marketplace. Furthermore, this research explores last year’s regulatory changes to recurring payments in India.

“Reducing friction is the key to customer generation and retention,” comments Ben Danner, Analyst, at Mercator Advisory Group, and the author of the research report. There are a number of opportunities that exist to develop and refine the recurring payments economy.

The post Median Involuntary Churn Rate by Subscription Industry: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption

In-store Mobile Payment App Usage:

• 49% of consumers have used the Starbucks app to make a payment in-store.
• 44% of consumers have used the McDonalds app to make a payment in-store.
• 41% of consumers have used Walmart Pay to make a payment in-store.
• 40% of consumers have used the Target app to make a payment in-store.
• 36% of consumers have used the Subway app to make a payment in-store.
• 36% of consumers have used the Dunkin’ Donuts app to make a payment in-store.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption, analyzes the informed and savvy shopper’s preferences and influences regarding use of mobile payment technology and digital payment adoption. Purchasing behaviors of consumers are highlighted and compared as they make purchases in stores, in apps, and on the web.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a U.S. nationally representative sample of 3000 consumers, ages 18 years or older.

“User preferences are vital influences on smartphone adoption, which seem to be a low-risk option for most. However, the adoption of digital wallet technology seems to be a concern for some.” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post In-store Mobile Payment App Usage: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption

Top Digital Wallet Use Cases: 

• 64% of consumers have made a payment through a food delivery service such as Uber Eats or Grubhub.
• 57% of consumers have made a payment through Uber, Lyft, or other transportation services.
• 53% of consumers have made a payment through a gaming app (purchases within the mobile gaming app.)
• 42% of consumers have made a payment through Fandango, Ticketmaster, or other ticketing apps.
• 42% of consumers have made a payment through OpenTable Pay, Tabbed Out, or other restaurant apps.
• 41% of consumers have made a payment through Airbnb, VRBO, or other hotel, lodging, or vacation rental services.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption, analyzes the informed and savvy shopper’s preferences and influences regarding use of mobile payment technology and digital payment adoption. Purchasing behaviors of consumers are highlighted and compared as they make purchases in stores, in apps, and on the web.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a U.S. nationally representative sample of 3000 consumers, ages 18 years or older.

“User preferences are vital influences on smartphone adoption, which seem to be a low-risk option for most. However, the adoption of digital wallet technology seems to be a concern for some.” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Top Digital Wallet Use Cases: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption

In-store Shopping Activities with a Mobile Phone:

• 68% of consumers have used a mobile phone to check prices online for items that interest them while shopping in a store.
• 67% of consumers have used a mobile phone to research a product in more detail while shopping in a store.
• 60% of consumers have used a mobile phone to read user reviews of items that interest them while shopping in a store.
• 53.4% of consumers have used a mobile phone to redeem an electronic coupon while shopping in a store.
• 52% of consumers have used a mobile phone to search for an electronic coupon while shopping in a store.
• 44% of consumers have used a mobile phone to pay for an item with a mobile wallet while shopping in a store.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption, analyzes the informed and savvy shopper’s preferences and influences regarding use of mobile payment technology and digital payment adoption. Purchasing behaviors of consumers are highlighted and compared as they make purchases in stores, in apps, and on the web.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a U.S. nationally representative sample of 3000 consumers, ages 18 years or older.

“User preferences are vital influences on smartphone adoption, which seem to be a low-risk option for most. However, the adoption of digital wallet technology seems to be a concern for some.” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post In-store Shopping Activities with a Mobile Phone: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption

Top Mobile Phone Activities While In-store Shopping By Generation:

• 78% of millennials (ages 25-40) have used their mobile phone to read user reviews of items that interest them while shopping in a store.
• In comparison, just 55% of Boomers (ages 57-75) have used their mobile phone to read user reviews of items that interest them while shopping in a store.
• 84% of millennials have used their mobile phone to research a product in more detail while shopping in a store.
• In comparison, just 69.5% of Boomers have used their mobile phone to research a product in more detail while shopping in a store.
• 78% of millennials have used their mobile phone to check prices online for items that interest them while shopping in a store.
• In comparison, just 70.1% of Boomers have used their mobile phone to check prices online for items that interest them while shopping in a store.

About Report

Mercator Advisory Group’s most recent report, 2022 North American PaymentsInsights: Navigating Mobile Payment Technology Adoption, analyzes the informed and savvy shopper’s preferences and influences regarding use of mobile payment technology and digital payment adoption. Purchasing behaviors of consumers are highlighted and compared as they make purchases in stores, in apps, and on the web.

The report is based on the North American PaymentsInsights survey, administered in 2021 to a U.S. nationally representative sample of 3000 consumers, ages 18 years or older.

“User preferences are vital influences on smartphone adoption, which seem to be a low-risk option for most. However, the adoption of digital wallet technology seems to be a concern for some.” says Amy Dunckelmann, VP, Research Operations at Mercator Advisory Group.

The post Top Mobile Phone Activities While Shopping In-store By Generation: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2021 North American PaymentsInsights: U.S. COVID-19 Update and GPR Prepaid Cards Update

Use of New Payment Technologies Since the Pandemic Emerged:

• 19% of consumers began paying with their card by tapping or waving it at a payment terminal since the start of the pandemic.
• 15% of consumers began using smartphone universal wallets since the start of the pandemic.
• 14% of consumers began using retailer specific payment apps since the start of the pandemic.
• 14% of consumers began using chip cards since the start of the pandemic.
• 13% of consumers began using a smartwatch or other wearable with a universal payment wallet since the start of the pandemic. 
• 13% of consumers began using a QR code to make a payment since the start of the pandemic.
• 12% of consumers began using a smartwatch or other wearable with a retailer-specific wallet since the start of the pandemic. 

About Report

Mercator Advisory Group’s most recent report, 2021 North American PaymentsInsights: U.S. COVID-19 Update and GPR Prepaid Cards Update, summarizes the effects of COVID-19 on the payments industry: how the market reacted to the pandemic, what impact it had on the payments industry, and its effect on credit card payments. In addition to providing insights into the state of the payments industry during the pandemic, the report also showcases data on general-purpose reloadable (GPR) cards: what consumers think about prepaid cards and which incentives make consumers more inclined towards certain types of these cards.

The report is based on the North American PaymentsInsights survey administered between August 27 and September 14, 2021, across a representative sample of 3000 consumers ages 18 years or older in the U.S. and 1000 consumers ages 18 years or older in Canada.

“Through the survey data, we have seen some interesting influences of COVID on the increased consumer use of online and mobile banking in comparison to the use of ATMs.” stated Pragya Khanal, an analyst working on the report.

The post Use of New Payment Technologies Since the Pandemic Emerged: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2021 North American PaymentsInsights: U.S. COVID-19 Update and GPR Prepaid Cards Update

Credit Card Line Decreases & The Impact of COVID-19:

• 28% of surveyed consumers indicated that they have had a decrease in their credit lines since the start of the pandemic.
• Close to half of those consumers reported that the decrease was due to missed payments.
• 11% of consumers reported a decrease in their credit card line since the pandemic began due to missed payments.
• 11% of consumers reported a decrease in their credit card line since the pandemic began due to other reasons.
• 6% of consumers reported a decrease in their credit card line since the pandemic began but don’t know the decrease occurred.

About Report

Mercator Advisory Group’s most recent report, 2021 North American PaymentsInsights: U.S. COVID-19 Update and GPR Prepaid Cards Update, summarizes the effects of COVID-19 on the payments industry: how the market reacted to the pandemic, what impact it had on the payments industry, and its effect on credit card payments. In addition to providing insights into the state of the payments industry during the pandemic, the report also showcases data on general-purpose reloadable (GPR) cards: what consumers think about prepaid cards and which incentives make consumers more inclined towards certain types of these cards.

The report is based on the North American PaymentsInsights survey administered between August 27 and September 14, 2021, across a representative sample of 3000 consumers ages 18 years or older in the U.S. and 1000 consumers ages 18 years or older in Canada.“Through the survey data, we have seen some interesting influences of COVID on the increased consumer use of online and mobile banking in comparison to the use of ATMs.” stated Pragya Khanal, an analyst working on the report.

The post Credit Card Line Decreases & The Impact of COVID-19: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: 2021 North American PaymentsInsights: U.S. COVID-19 Update and GPR Prepaid Cards Update

Major Sources of Funding Used to Deposit Funds onto General Purpose Prepaid Cards:

• 13% of consumers received a general-purpose prepaid card that was funded by an employer putting their earnings on a payroll card and giving it to them.
• 12% of consumers received a general-purpose prepaid card that was funded by an employer putting earnings onto a card the consumer had purchased.
• 10% of consumers received a general-purpose reloadable prepaid card that had their bonus/sales commission on it. 
• 8% of consumers received a general-purpose prepaid card with their Social Security payments on it.
• 8% of consumers received a general-purpose prepaid card with funds transferred to them by a friend or family member.
• 6% of consumers received a general-purpose prepaid card when they returned an item they had purchased.

About Report

Mercator Advisory Group’s most recent report, 2021 North American PaymentsInsights: U.S. COVID-19 Update and GPR Prepaid Cards Update, summarizes the effects of COVID-19 on the payments industry: how the market reacted to the pandemic, what impact it had on the payments industry, and its effect on credit card payments. In addition to providing insights into the state of the payments industry during the pandemic, the report also showcases data on general-purpose reloadable (GPR) cards: what consumers think about prepaid cards and which incentives make consumers more inclined towards certain types of these cards.

The report is based on the North American PaymentsInsights survey administered between August 27 and September 14, 2021, across a representative sample of 3000 consumers ages 18 years or older in the U.S. and 1000 consumers ages 18 years or older in Canada.

“Through the survey data, we have seen some interesting influences of COVID on the increased consumer use of online and mobile banking in comparison to the use of ATMs.” stated Pragya Khanal, an analyst working on the report.

The post Major Sources of Funding Used to Deposit Funds onto General Purpose Prepaid Cards: appeared first on PaymentsJournal.