A warning sign about the economy; Is voice-based payment technology next?

Red flag: consumers are using Buy Now, Pay Later to cover their daily expenses

Buy now, pay later installment plans have become popular among consumers looking to spread the cost of major purchases. But now, rising prices are forcing some cash-strapped shoppers to seek out these alternative payment methods for day-to-day purchases, such as their daily coffee, filling up at the gas station, or grocery shopping. That’s a concern for economists and consumer advocates, who say the rise in use of these services, coupled with a lack of transparency and weak regulatory oversight, leaves them wondering how much Americans actually go into debt. While other household debt, such as credit card spending and auto loans, is collected and tracked by the Federal Reserve, Buy Now, Pay Later data is not included because financing is typically provided by non-banking sources and is not yet reported in a full report. way to the credit bureaus. [CNN]

Is voice payment going to be the next big thing?

In India, the current winds of change seem to be in favor of adopting voice-based payment technology. The voice-based smart assistant revolution, which started with Siri and Alexa, is now hailed as the key enabler for a large percentage of the population to embrace digital payments. Traditional digital payment is a reliable method, but it requires constant checking of account numbers, cross-checking between apps, and more. As a result, voice technology ushers in a new era of far too fast and convenient digital payments. [Mint]

Consumer Finance Bureau ‘out of control’ under Biden director, critics say

After one of the federal government’s most powerful bureaucrats warned it would ‘police repeat offenders’, the nation’s largest business group wants to limit its powers. The US Chamber of Commerce launched a six-figure digital ad campaign in late June targeting Rohit Chopra, director of the Consumer Finance Protection Bureau, nominated by President Biden in 2021 and confirmed without a single Republican vote. [Fox Business]

JD Power: Debit, credit card use still outpacing alternative payment methods

According to a recent study published by JD Power, debit and credit card transactions continue to lead the way in payment transactions over digital payment alternatives. Across all age groups of US consumers in the past three months, 32% turned to their debit card most often to pay and 28% used their credit card. Behind cards were ATM withdrawals (12%), cash (11%), checks (6%), mobile wallet (2%). Other alternatives, such as P2P payment apps, prepaid or gift cards, “buy now, pay later” or cryptocurrencies were only used by 1% of consumers each during this same period three months, according to the survey. [ABA Banking Journal]

Bank of America says consumer spending remains resilient despite inflation

Bank of America said customer spending continued to show signs of resilience despite soaring inflation, pent-up demand for travel and leisure countering rising gasoline prices and other increased costs. Spending on credit and debit cards rose 11% from a year earlier in June, compared with an increase of 13% in April and 9% in May, the bank said Thursday. The spending hike comes amid rising prices and fears that the United States is on the verge of slipping into recession. [Bloomberg]

Microsoft rolls back facial recognition scanning, but big questions remain

Microsoft is waiving public support for certain AI-based features, including facial recognition, and acknowledging the discrimination and accuracy issues these offerings create. But the company had years to fix the issues and didn’t. It’s like a car manufacturer recalling a vehicle rather than repairing it. Despite fears that facial recognition technology could be discriminatory, the real problem is that the results are inaccurate. [ComputerWorld]

CFPB notifies fee collectors

The Consumer Financial Protection Bureau has issued an advisory warning debt collectors that many of the “pay-to-pay” fees they charge often violate federal law. These fees, commonly described by debt collectors as a “convenience fee”, are imposed on consumers who wish to make a payment in a particular way, such as online or over the phone. This new advisory is another step in the CFPB’s crusade against junk fees, but it adds a new approach that can save resources for the agency, while being as effective as a new rule. [PYMNTS]

How retailers are approaching cryptocurrency payments

Deloitte recently released a report on its survey of 2,000 senior executives at US retail companies to examine interests and investments in crypto as a payment method. The report found that 64% of merchants surveyed indicated that their customers have significant interest in crypto payment options, and 83% expect this interest to increase over the next year. Based on this data, many companies are investigating the long-term role of crypto in retail transactions, perhaps expecting current user demographics to grow and change over time. Crypto users are not overly influenced by market fluctuations, according to a study by Gartner’s Software Advice. [Retail Dive]

Apple watches fuel purchases from the dashboard as it improves car software

Apple wants you to start buying gas straight from your car’s dashboard as soon as this fall, when the latest version of its CarPlay software rolls out, accelerating the company’s efforts to turn your vehicle into a retail store. goods and services. A new feature quietly unveiled at Apple’s Developer Conference this month will allow CarPlay users to tap an app to access a pump and buy gas directly from a screen in the car, skipping the usual process of inserting or entering a credit card. [Reuters]

Understand 3D credit card security and how it might affect your travels to other countries

Credit card security technology 3D Secure, or 3DS as it is sometimes called, helps verify that online transactions are genuine. It checks a number of factors to authenticate a purchase, including the user’s location, purchase history on that credit card, and even if the personal data provided during the transaction matches what the bank has. in the file. If the technology identifies any discrepancies during this verification process, it may institute an additional security check via SMS, email or phone call before finalizing the purchase. Users get an improved experience with a simpler transaction. Banks benefit from reduced fraud and chargebacks. And merchants benefit from an easier process for consumers to actually complete the transaction and spend money with the merchant. [The Points Guy]

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