Intuit has completed its acquisition of Check mobile bill pay tfor $360 million. This will accelerate Intuit’s ability to offer bill pay across small business and personal finance products and create opportunities to retain, attract and serve additional customers. Check’s highly-rated mobile app automates and consolidates the bill pay process all in one place, reducing the complexity for its 10 million registered consumers. Check customers can monitor bills and accounts, receive alerts when bills are due or funds are low, and pay bills automatically.
American Express this afternoon announces a new partnership with Uber and a first-of-its-kind technology integration into the Uber iOS app that allows U.S. Card Members enrolled in the Membership Rewards program to choose to earn 2x points or use points for Uber rides. This is the first time that consumers can use loyalty reward points seamlessly in-app and in real time for on-demand transportation in this way.
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A new analysis has found that the U.S. bank credit card industry wrote off approximately $13 billion last year in credit card receivables, due to cardholders filing under Chapter 7 of the U.S. bankruptcy code. Under the new “means test” to take effect this fall, about $1.3 billion of the losses would have been subject to a repayment plan under Chapter 13. Moody’s Investors Service says the number could be even higher because those Chapter 7 filers who would have failed the “means test” would likely have had larger than average outstanding balances. Even though this is a large number, it equals only 3.4% of all credit card charge-offs, or 20 basis points of the 5.75% total net charge-off ratio in 2004. In addition, Moody’s expects that many of those consumers forced to file under Chapter 13 will still not have the ability to repay all of their credit card debt outstanding. Among those currently filing under Chapter 13, estimates are that only around one-third are able to complete their payment plans, and even those plans don’t usually contemplate a 100% repayment of unsecured debt. Assuming that consumers filing under Chapter 13 rather than Chapter 7 because of the means test are able to pay between a quarter and one half of what they owe, then industry-wide aggregate credit card net charge-offs might decline by $325 million to $650 million a year. This would translate into a 5 to 10 basis point decline in the net charge-off ratio. Moody’s estimates that this modest decline in net charge-offs, if it fell entirely to the bottom line, would increase the average pre-tax profitability for the bank credit card industry by only 1.5% to 3.0%.