Amazon Contributing to PayPal’s Growth
PayPal’s break with eBay in 2015 continues to impact the payment player’s momentum. It’s payment volume from eBay fell 45% in the third quarter from a year earlier as eBay continues to offer additional payment options at check-out. The WSJ reports a new partnership with Amazon will pick up the slack.
Amazon’s addition of PayPal’s Venmo as a payment option will drive significant volume for the payments company. Even though Venmo is one of many payment options, Amazon’s sheer scale stands to accelerate PayPal’s growth.
More Credit Card Offers Being Made
American consumers paid down their credit-card debt during the pandemic. News reports indicate banks are marketing hard to get them borrowing again. Last year credit-card profitability fell to the lowest level since 2009.
Banks are making moves to reverse the trend. Credit-card solicitations are arriving in consumers’ mailboxes in droves as issuers seek low-risk cardholders willing to spend now and pay over time. Big banks are upping their marketing budgets—and sweetening offers with miles or points—to drive interest payments.
Payment Giants Forsee Increased Spending
Shares of payment stocks are up after brief travel stalls and purchase hesitancy set in following the emergence of the Omicron variant. American Express, Capital One, Fiserv and DCA member Mastercard shares more than doubled the overall market’s 3% gain so far this month.
Research shows the new Covid-19 variant has had less impact on spending than Delta. When Delta came on the scene, travel restrictions were severely tightened, and stimulus money was running out—causing spending levels to drop significantly. Only eight percent of trips are being canceled now, vs. 35% in August and September. Anticipate positive spending trends to continue.
The 2021 Christmas Shopping Scene Looks A Lot Like 2019
Card data from DCA member Bank of America and from JPMorgan Chase show strong spending in November, and retailers are feeling positive the trend will continue through the December holidays.
There were 5.8 million more U.S. jobs in October than a year ago. Couple that with last winter’s stimulus checks and the monthly child tax credit payments some families have received and the result is a boost in peoples’ ability to spend. The availability of vaccines has also contributed to consumer confidence.
EPISODE 93: Simplifying Payments by Embedding Transactions Into Retail Software with Spartak Buniatyan from PayEngine
Please Welcome Swapi to Digital Commerce Alliance!
Please Welcome Sensibill to Digital Commerce Alliance!
FDF January Webinar
How Alternative Data Could Impact Credit Scores
Wednesday, January 19th | 10am – 11am PST
While the credit industry has made great strides in opening the credit market to many, there are still gaps to fill. Millions of Americans can’t finance a house or car, take out a student loan, or get a credit card. Learn how scoring model innovations that leverage alternative data are making a difference—providing more people with the predictive, inclusive, and equitable access to the credit they need.
Speakers | Jeff Richardson, SVP Marketing & Communications – VantageScore
Finanacial Data Forum (a division of DCA) hosts a live, interactive webinar each quarter featuring speakers from some of the world’s most influential companies. They share insights on important and relevant topics for your business—including the impact of Covid-19 on consumer credit behavior, mobile wallet adoption, card-linking and lending trends. The webinar is always free to members and non-members are invited to attend at $99 per registration. Members and non-members are encouraged to register now as space is limited!