CardFlash News Briefs: HYPERWALLET (loyalty); CARDINALCOMMERCE (patent); MYPINPAD (study); and PARKMOBILE (Pittsburgh).
The average late stage U.S. credit card delinquency (90+ day) among the nation’s top four issuers increased six basis points (bps) sequentially, to 0.98% for the third quarter, compared to 0.92% in the prior quarter and 0.98% one-year ago. However, all the issuers, except Capital One, were down year-on-year (YOY), according to CardData.
Merchants continue to fail in delivering a seamless and localized ecommerce experience to shoppers outside their own country- a dangerous choice when 20% of all online shoppers currently come from foreign IP addresses, which is estimated to become 45% of all online shoppers by 2020.
About a third of Americans say they either exclusively make holiday season purchases using credit cards (15%) or that they make more purchases on credit than they do using cash or debit cards (17%). Thirteen percent (13%) use each in equal measure, while roughly half (49%) say they use cash/debit either predominately (20%) or exclusively (29%).
Despite, the lowest levels of delinquencies and net charge-offs, US credit card asset quality are expected to weaken modestly in 2016. The slowdown in asset quality improvement does not signal material credit deterioration over the near to intermediate term, but portfolio seasoning and recent growth will also weigh more heavily on credit quality metrics in 2016.
Cash transactions (CTX) for Visa and MasterCard credit and debit cards in the U.S. grew by 0.8% year-on-year (Y/Y) in the third quarter. Visa cash transactions are growing at a year-on-year (YOY) rate of 0.5%, compared to MasterCard’s 1.5%, according to CardData.