Synchrony Financial is increasing interest rates on its credit cards to offset the financial impact of a Consumer Financial Protection Bureau rule that would reduce its late fee revenue. Walmart-backed fintech company One is offering a buy now, pay later option for purchases between $100 and $3,000, with an annual percentage rate between 9.99% and 35.99%. U.S. consumers on lower incomes are facing loan stress as banks become more cautious about extending credit to them, with higher default rates among first-time and low-income borrowers compared to those with higher incomes.
Empower Finance is acquiring Petal, a credit card issuer known for helping customers build credit inexpensively, but which encountered financial challenges leading to the downgrading of some customers to cards with multiple fees. Mastercard is combatting scams by launching an AI-based suite of tools to identify and prevent fraudulent activities, partnering with Verizon to block spam and scammers. Despite the shift towards electronic payments, many businesses still rely on cash handling processes, with challenges such as discrepancies and low levels of automation leading to increased security costs.
Square is expanding offline payment capabilities to all devices, enabling nearly 90% of its hardware sellers to accept offline payments. Delta and American Express have released a limited-edition card design made from two retired Delta Air Lines Boeing 747 aircraft for Delta SkyMiles Reserve cardholders. Jack Dorsey’s payments company, Block, is venturing into bitcoin mining by developing its own three-nanometer mining chip and exploring system design in partnership with a semiconductor foundry.Overall, these developments in the fintech and payments industry highlight the ongoing efforts to adapt to regulatory changes, enhance customer experience, combat fraud, and explore new avenues of revenue generation like bitcoin mining.