Mobile wallet consumers are now looking to using alternative players to their primary bank for mobile wallets and for banking. They are also looking to using a wide variety of services in their mobile wallet, such as search & shop, loyalty programs and real-time incentives, according to Carlisle & Gallagher Consulting Group. Specifically, research indicated 48% are interested in a mobile wallet and that interest is driven by both young consumers and affluent consumers, 76% of whom are currently using or intend to use mobile banking. These consist of Techno Shoppers (27%) and Payment Optimizers (21%)- those interested in making the best payment decisions based on their financial situation. Additional findings show 80% would use PayPal as their mobile wallet provider; 60% would use Google; and 60% would use Apple, while 65% rated the ability to make better payment choices – such as maximizing loyalty programs or minimizing interest payments- as the most valued mobile wallet service.
Consumers who are interested in mobile wallets* would consider using alternative players to their primary bank for mobile wallets and for banking. These consumers also expressed strong interest in using a wide variety of services in their mobile wallet, such as search & shop, loyalty programs and real-time incentives. These are two major findings from…
About 30% of U.S. consumers plan to adjust this yearâs travel plans for Thanksgiving. Nineteen percent of the general population who traveled last year will be staying home in 2009. The findings come from the American Express “Spending & Saving Tracker” which indicates that consumers have not measurably changed their overall outlook on spending compared to last month but they are starting to open their wallets for the holiday season. Against the backdrop of high unemployment and a soft housing market, however, they expect to be more selective. As one might expect, consumers said they plan to spend significantly more over the next 30 days on travel, compared to last month (41% versus 33%). Nearly eight in ten of the affluent expect to spend more, or about the same, over the next 30 days on dining out (78%). Compared to last month, consumers expect to decrease spending in groceries (49% versus 40%), grooming (23% versus 16%) and tuition (19% versus 5%).
A new poll finds that 63% of Americans surveyed said the way they spend and save has been forever changed as a result of the economic downturn. Only 29% said spending and saving would go back to the way it was before the recession. The survey from Citi also revealed that 61% will continue to cut down on credit card purchases. Fifty-nine percent will continue to cut back on everyday expenses; 60% will continue to save and invest more; 63% will continue to reduce the amount of money they owe. Also, 68% of African Americans and 66% of Hispanics have cut down on credit card purchases (compared to 62% of the national sample).
Additionally, Citi found that those who earn less than $50,000 were most likely to cut back on everyday expenses (80%), followed by 76% for those who earn $50,000 – $75,000. But even at the top of the income scale, people are making adjustments and cutting back on everyday expenses â 70% for those who earn more than $150,000 and 68% for those who earn $75,000 – $150,000.
A new survey has found that 17% of all U.S. bank customers did not pay
an overdraft fee in the previous twelve months, compared to 19% in the
prior year. However, the surge in overdraft fees caused by rising debit
card usage has turned the spotlight hot and heavy on this bank practice
which produces about $38 billion per year in revenue. The August survey
for the American Bankers Association by Ipsos-Reid found that of the
consumers who did pay overdraft fees in the past 12 months: 36% paid
one; 10% paid two; 15% paid three; 13% paid four; 6% paid five; 11% paid
between six and ten; and 5% paid more than ten. A survey released in
July from Moebs Services reported the average overdraft fee rose 10%
this year to $27.50, and compared to $23.25 five years ago. GA-based
bank consultancy Bretton Woods found that the average U.S. household now
has more than 12 overdraft transactions per year and pays $368 annually
in fees. Bretton found the NSF/ODP fee income by state ranged from
nearly $73 million in Alaska to $4 billion in California.
A 2008 FDIC survey discovered that customers living in low-income areas
carry the brunt of most of the fees, and that 46% of young adults are
charged for unauthorized overdrafts in high numbers. The FDIC report
also shows that over half of the large banks surveyed process overdrafts
from largest to smallest, which can artificially increase the number of
overdrafts fees incurred by consumers. Additionally, the FDIC found that
a majority of banks reported automatically enrolling customers into
overdraft systems that impose a fee. (CF Library 12/04/08; 1/13/09; 7/13/09)
The Ministry of Small Business and Consumer Services’
Consumer Protection Branch reminds consumers that the expiry dates on
gift cards issued on or after October 1, 2007,
fees or deductions from a gift card’s value and expiry dates on mall
gift cards issued as of September 1, 2008 are
banned and there are limits on administrative fees. Canadians spend
about $1.26 billion on gift cards during the
holiday with 82% of Canada’s largest retailers offering gift cards.
U.S. financial professionals believe the U.S. economy will weaken over the next 12 months but will not slip into recession in 2008. Meanwhile, The Conference Board reported that the U.S. leading index decreased 0.4% in November. The index has decreased sharply for the second consecutive month, and it has been down in four of the last six months. Most of the leading indicators contributed negatively to the index in November, led by large declines in stock prices, initial claims for unemployment insurance, the index of consumer expectations, and real money supply. According to results of a new survey conducted in early December by the Association for Financial Professionals more than a third of the survey respondents expect their organizations to expand their U.S. workforce in the coming year. Financial professionals expect gross domestic product to grow modestly in 2008, with the median prediction at 2.5%. Only 4% expect the economy to contract in 2008. Top concerns of financial professionals are the decline in the U.S. dollar, rising energy prices, and the housing market. Eighty-two percent of financial professionals are paying closer attention to the declining value of the U.S. dollar; 63% of respondents believe the U.S. dollar will continue to decline against the Euro, while 54% expect the dollar to decline against the yen.
A Capital One Canada survey has found that since the end of tax season,
39% of those polled want to forget about finances until tax-time next year
and 41% would rather clean out their basement or garage than think about
finances. Only 29% said they would review their credit cards to make sure
they are getting the best rates and fees. Albertans, however, are more
to take a hard look at credit options at 32% while Quebecers are least
at 20%. Experts say, however, that spring is a good time for people to
evaluate finances and take control of their situation. Only 16% of
are attracted to offers with promotional awards and only 2% are interested
in offers with a time-limited introductory rate. Also, 26% buy in bulk, 17%
look for free samples and meals at work or other functions, 4% of Canadians
say they “mooch” off friends and family and 69% use and stick to a budget.
A new study has found that 64% of Americans support adding biometric data to credit cards while 62% support it for debit cards. However, only 27% want that information on a retail store loyalty card. TRUSTe says this correlates with other findings in the survey which showed 76% of respondents trusted banks and financial institutions “always” or “most of the time” as compared to 41% of respondents trusting retail stores “always” or “most of the time.” The survey also revealed that consumers don’t trust systems that use biometric identification as a payment method. Less than two percent of respondents have used a fingerprint payment system and 32% say that they “do not trust retail stores with this information.” Only 23% of respondents expressed a desire to use this kind of payment system. TRUSTe says 73% of Americans support the addition of biometric information to driver’s licenses and nearly as many support adding it to Social Security cards.
Discover Card’s decision to drop its “No Surcharge Rule” has drawn fire from the Americans for Consumer Education & Competition, which is largely funded by VISA USA. The group says Discover waved the white flag to merchants and has entered a slippery slope as it will pave the way for more check out fees. The group says consumers need to lobby their state legislators to ban merchant check out fees and to enforce those bans. States that ban surcharging are: California, Colorado, Texas, Oklahoma, Connecticut, Florida, Kansas, Maine, and New York. New Hampshire specifically bans surcharging by travel companies and Kentucky bans surcharging by restaurants for tips if they are included on a credit transaction. Wyoming, Washington, Maryland and Massachusetts allow merchants to offer a cash discount to the customer who pays with cash rather than credit, as do many other states. Only Minnesota allows surcharging up to five percent of the purchase price.
A new study has determined that 62% of American adults would abandon their purchase if charged a check out fee for using a debit or credit card. Eighty-two percent of those who reported being surcharged were charged check out fees in the past year. And, 62% percent of those who have been surcharged said getting hit with the fee gave them a negative impression of the retailer. The survey was conducted by the Americans for Consumer Education and Competition. ACEC says less than 20 states have laws that ban merchants from charging consumers check out fees when they pay with a credit or debit card.
A recent survey by Circuit City has found that 82% of consumers would like to receive gift cards. More than 4,200 men and women responded to the survey. Women like to receive gift cards even more than men; 87 percent of women versus 76 percent of men. Twenty-six percent said they complete their holiday shopping a month or more in advance. Forty-four percent acknowledged they are still shopping within one week of the holiday. Circuit City is a leading specialty retailer of consumer electronics.