As expected U.S. revolving consumer credit outstanding declined $3.7 billion or 5.0% year-on-year (YOY) in February as consumers cleared-off holiday debt. Total revolving credit for February preliminarily posted $884.8 billion, compared to a revised $888.5 billion for the prior month and $889.5 billion at end-of-year (EOY) 2014.
U.S. bank credit card rates edged down slightly in February, 15 basis points (bps) from the prior month of 13.68%, however the stage is set for substantial rate hikes this year due to anticipated rate hikes by the FOMC in the second half. RAM Research forecasts U.S. bank credit card rates for accounts assessed interest will hit 13.77% at mid-year, then climb to 14.24% by end-of-year (EOY) 2015.
Stung by the loss of the Costco co-branded credit card program, the recent loss of a recent DOJ lawsuit, and the potential of rising consumer interest rates, American Express’ (AXP) Asset-Backed Securities (ABS) credit card program should strong in 2015 given its liquidity profile.
Wright-Patt Credit Union (WPCU) members who own an Android Wear watch can now seamlessly check account balances with a flick of the wrist, without the hassle of logging-in to the mobile app. The app os powered by NCR’s Digital Insight.
Discover’s (DFS) financial performance will face downward pressure from a number of factors including increased competition, normalizing credit performance and heightened legal and compliance expenses this year. However, operating performance for DFS’ credit card Asset-Backed Securities (ABS) is likely to remain strong in 2015, despite a decline in net income last year.
CardWeb.com’s CardData Reports today features “2015 AFP Payments Fraud & Control Survey” from the Association for Financial Professionals.
Look out Automated Clearing House (ACH), as Dwolla has inked a major deal with the largest financial institution to provide real-time transfers to and from its network in the USA. BBVA Compass will enable its customers to send and receive funds instantly through the Dwolla all-digital payments network.
Microsoft-owned Skype users will now have to option to top up their accounts at more than 50,000 Western Union Agent U.S. locations. Western Union’s new Skype Credit is aiming for the banked, under-banked or un-banked.
Cryptocurrency is trying to get into the mainstream and the Ziftr cryptocurrency/credit card payment platform may be the answer. The Company notes for each credit card purchase, up to 3% of the total transaction value goes to swipe fees alone, while cryptocurrency fees are typically under 1%.
CardWeb.com’s CardExecs database of payments industry movers and shakers today features Derek Webster, Founder and CEO of CardFlight.
Acceptance of MasterCard consumer cards for Apple Pay is picking up more steam with the addition of 25 new financial institutions nationwide. In addition, cardholders with a MasterCard small business card from Bethpage Federal Credit Union or Navy Federal Credit Union can also now leverage Apple Pay.
Upromise by Sallie Mae reports its Upromise MasterCard card surpassed $50 million in cash back earned for college last year. Collectively the MasterCard program has rewarded nearly $450 million total cash back since the card’s inception.