Survey Finds Majority of Consumers Now Prefer Making Payments with Their Mobile Phone

More than 80% of the respondents to a survey conducted by ABI Research on behalf of the NFC Forum said they have used a smartphone or smartwatch to make a contactless payment. Of those that have made a mobile contactless payment, more than half say they would prefer to use their smartphone or smartwatch to make a payment rather than their card. And 95% say they have left their physical wallet or purse at home on at least one occasion, choosing instead to rely solely on mobile payments. 53% said they now leave their physical wallet or purse at home multiple times each week. [NFCW]

Almost a Third of Consumers Prefer Carrying Physical Wallet

Digital wallets, such as Apple Pay, Google Wallet and PayPal, give consumers a secure, convenient and contactless way to pay for purchases online and in person. Because they store credit and debit card information, they liberate shoppers from having to carry around physical cards when dining or shopping. Similarly, they free up online shoppers from having to input sensitive card data into websites and apps when making purchases. According to a new study, digital wallets are wildly popular with Generation Z consumers, with 79% of them regularly using digital wallets. Only about 26% of baby boomers and seniors share that enthusiasm. In between, digital wallet usage varies: 44% of Generation X shoppers are fans; so are 63% of bridge millennials and 67% of millennials. [PYMNTS]

Mastercard Still Raising Some Fees After Retailer Settlement

Mastercard plans to increase certain credit card fees beginning April 15, just days after the company and Visa trumpeted a $30 billion settlement over separate swipe fees designed to provide relief to retail businesses. The company plans to raise its network “assessment” fee to 0.14% from 0.13%, equating to an annual increase of $259.1 million, based on the more than $2 trillion in Mastercard transactions last year. Retailers say any fees charged to banks get passed through to them. [Bloomberg]

Chase Bank to Let Advertisers Target Customers Based on Spending Data

Chase is the latest company to bring its data to bear on behalf of advertisers. The JPMorgan Chase bank on Wednesday said a new unit called Chase Media Solutions will let marketers tempt Chase customers with targeted deals and discounts related to their spending history. Chase joins a variety of businesses from Best Buy to Uber that have begun selling ad space on their apps, websites and other properties, often targeting messages by using their shopper and user data to generate revenue outside of their core businesses. The company already offered customers less-targeted deals through a program called Chase Offers, which will continue to house the more-relevant offers brokered by the new media unit. [The Wall Street Journal]

Consumers Reveal How They Shop for Credit Cards

57% of respondents said they are much more or somewhat more inclined to get a credit card from an institution they already bank with. Cash-back credit cards are most popular among applicants, with 44% of survey respondents reporting that the card type they most recently acquired was a cash-back credit card. 33% of respondents listed “earning rewards on daily purchases” as the top reason why they acquired their most recent credit card while 27% listed “building credit” as their primary motivation. Groceries (47%), gas (36%) and dining out or food delivery (29%) were the top spending categories on which respondents hoped to earn rewards. [Forbes]

Visa, Mastercard Agree to $30 Billion Deal with Merchants. What It Means for Credit Card Holders

Visa and Mastercard agreed to a settlement with U.S. merchants, promising to lower the fees stores have to pay to process credit card payments ‒ at least in the near term. The settlement opens doors for retailers to place surcharges on cards with higher swipe fees, which could make using a premium card with a hefty rewards program more expensive. Some have speculated that the changes could affect credit card rewards, or perhaps allow merchants to pass down savings to customers. But other experts are skeptical that this could lead to any significant changes for credit card users. [USA Today]

Klarna Launches Page Comparing BNPL, Traditional Credit

Klarna has launched a new web page that shares data on its buy now, pay later offerings, including their repayment rates, late fee rates and consumer age demographics. This new Wikipink page aims to encourage transparency in the credit industry and drive dialogue on personal finance at a time when credit providers are facing growing scrutiny. The page compares data about Klarna’s BNPL offerings with those of traditional credit and reports that “interest-free BNPL leads to better consumer outcomes than traditional credit.” [PYMNTS]

Would You Go into Debt to Have Fun This Year? More than 1 in 3 Americans Say They Would

According to a new Bankrate survey, 44% of U.S. adults expect to spend more on at least one fun purchase this year, while 38% say they would go into credit card debt for at least one of these purchases. Further, more than one in four (27%) would be willing to go into debt to travel, and around one in seven (14%) would be willing to go into debt to dine out or attend a live entertainment event (13%). [Bankrate]

Brazil’s Pix Payments Are Killing Cash. Are Credit Cards Next?

In just three years, Brazil’s hugely popular Pix payment system has become the country’s favorite way to pay, replacing cash and wire transfers in many cases and now threatening the dominance of credit cards in the booming e-commerce sector. The instant payments designed by Brazil’s central bank are a boon to online retailers, helping with cash flow in a sector with tight margins, while undercutting the legacy business of banks and fintechs built on existing credit card infrastructure. For buyers, the switch to Pix has been nearly seamless, as they simply scan a QR code with any banking app instead of reaching for their wallet. But for sellers, it has turned the tables on the traditionally lucrative card payments industry. [Reuters]

Prodigal Thai Prince Agrees to Pay His Credit Card Debt

A top contender for Thailand’s throne, and the $40 billion fortune attached, reached a deal with American Express to pay down tens of thousands of dollars in overdue credit card bills in March. Legal documents filed in New York State in March reveal that Vacharaesorn Vivacharawongse, presumed heir to elderly and spectacularly wealthy King Maha Vajiralongkorn, agreed to pay down $94,767.88 in charges he defaulted on in 2023. The schedule of payments would have the balance completely paid down by March 29. Vivacharawongse said the outstanding amount was “paid in full pursuant to the terms of the agreement,” and that American Express had reinstated card. [The Daily Beast]

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