Card trends for 2022; Holiday shopping fuels rising credit card debt

4 credit card trends for 2022

We’re still grappling with inflation, and I don’t think it’s going away anytime soon. But despite this, I still see four positive trends for you and your credit cards in 2022: Credit card offerings will increase and expand into the subprime market; consumer credit card debt will rise; credit cards with balance transfer will make a comeback; and credit card issuers will embrace buy now, pay later options. [Yahoo News]

Holiday shopping fuels credit card debt repayment

Holiday shopping is back in force this year. Corn go into credit card debt is a gift that you cannot return. In the fourth quarter, fueled by the return of vacation plans, consumers charged billions more on their credit cards. By the end of the year, Americans are now on track to end up with $ 70 billion in additional credit card debt and the average household card balance is now $ 8,006, according to WalletHub. Balances are expected to continue rising in 2022, ending the first quarter up to 10% higher than a year ago, as more consumers apply for credit and increase spending, TransUnion forecast . Usually, card balances decline in the first few months of the year, as borrowers pay off vacation expenses. [CNBC]

Buy now, pay later: the new buzz generator and conversion engine for small businesses

The reasons given by consumers for looking for BNPL packages for vacation shopping vary. Forty-two percent of those interested in the spending method said it would allow them to give a loved one gifts that would otherwise be out of reach. 33% said they faced financial uncertainty from the pandemic and appreciated BNPL’s flexibility, even though they expected their outlook to improve in the new year. Consumers have grown increasingly interested in BNPL plans over the past 21 months, but the 2021 holiday shopping season has taken that interest to new heights. Recent research found that 21% of adults plan to use BNPL options to make purchases while on vacation, with interest especially high among millennials and those earning over $ 100,000 a year. Companies that offer these spending plans may also see significant increases, as consumers who use BNPL report spending 30% more on their purchases than those who don’t. [PYMNTS]

Despite supply issues and Omicron, holiday sales increase 8.5%

Holiday sales grew at the fastest rate in 17 years, even as buyers grappled with higher prices, product shortages and a new variant of Covid-19 raging in the final weeks of the season. Mastercard Spending Pulse, which tracks all kinds of payments including cash and debit cards, reported on Sunday that holiday sales were up 8.5% from the previous year. Mastercard SpendingPulse had expected a 7.4% increase. Holiday sales increased 10.7% from the pre-pandemic 2019 holiday season. [Associated Press]

Personal gifts and gift cards to boost sales after Christmas

This holiday season has been characterized by shortages and shipping delays caused by the disruption of the global supply chain due to the pandemic. Partly, no doubt, to the stress of getting the right gift at the right time, gift card sales increased in 2021. With many delays from couriers and the postal service, it’s no surprise that sales of digital gift cards have also increased. , representing 30% of gift card sales compared to 20% in 2020. These additional gift card sales are a golden opportunity for retailers to increase their sales after the holidays, as 87% of gift card recipients have stated that they were rather and very likely to spend more than the value of their gift cards for the redemption. [Forbes]

Visa Partners With 60 Crypto Platforms To Enable Consumers To Spend Digital Currency At 80 Million Merchants

Visa chief crypto Cuy Sheffield revealed that the payments giant has partnered with around 60 leading crypto platforms to launch card programs that allow consumers to easily convert and spend digital currencies. in 80 million traders worldwide. “The number of cross-functional people at Visa working in crypto to some extent now number in the hundreds, compared to just a handful of employees. And we’ve more than doubled our number of partnerships with crypto platforms over the past 18 months, ”Sheffield said. []

Senator Lummis, owner of Bitcoin, to propose crypto overhaul bill next year

Wyoming Republican Senator Cynthia Lummis, one of the crypto industry’s staunchest supporters in Congress, plans to introduce a comprehensive bill next year that would cover everything from taxation and categorization of digital assets to consumer protection. The bill would be one of the first attempts to establish comprehensive rules of the road for the growing industry. The bill, if enacted, would provide regulators with clear guidance on assets belonging to different asset classes, provide protections for consumers, regulate stablecoins, and create a new organization under the joint jurisdiction of Commodity. Futures Trading Commission and the Securities and Exchange Commission. to oversee the digital asset market. [Bloomberg]

Credit Sesame Combines Prepaid Debit Card With Virtual Credit Card To Build Secure Credit Ratings

Credit Sesame’s new Credit Builder allows users to create a credit score through purchases on a Credit Sesame prepaid debit card by pairing it with a virtual credit card. Users can set the amount they want to allocate for construction credit, and Credit Sesame’s computers calculate the debit expense to match that amount and report it to the credit bureaus through the virtual credit card. Credit Sesame is for people who don’t have good credit scores, or perhaps no credit scores: invisible credit. This represents about 44 million Americans. [Forbes]

2022 is when biometric payment cards become mainstream

A growing number of pilot projects and now commercial deployments of biometric payment cards, along with the development of standards, all indicate that secure, contactless payment will become mainstream as early as 2022, according to a new report from the Smart Payment Association. The pandemic has been an accelerator for contactless payments. In the UK, contactless payments account for around 57% of all in-store payments or 72% of card payments, with Computer Weekly putting the figure at 88.6% of card payments in 2020. FPC found that 62% of consumers would change banks in sequence. to get a biometric card (up to 70% among frequent contactless card users) and 42% are willing to pay an average of $ 10.70 more per year for a biometric card (up to 74% among users frequent mobile payments). [Biometric Update]

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