A card for people with dementia; Strong card spending despite inflation


Mastercard partners with Caregiver to launch a debit card for people with dementia

A Briton caring for her parents has launched a debit card to help people with dementia and their families regain control of their spending with support from Mastercard. Both of Jayne Sibley’s parents live with Alzheimer’s disease, and after noticing her mother’s condition was worsening and seeing her begin to mismanage her money, Sibley realized the need to protect at the both her mother’s money and her independence. She wanted to give her mother the means to spend her own money, on her own, within safe limits. She created Sibstar, a debit card app that allows people with dementia to access and spend their money while protecting it by managing how and where that money can be used through the app. Sibstar describes itself as a “for-profit company” and donates 7.5% of its net profit to the Alzheimer Society. [AltFi]

Wells Fargo and Citi customers are still spending

If everyone is feeling so miserable, why do they seem to be having a good time? That’s the puzzle of comparing US bank results in the second quarter with the terrible readings of recent consumer sentiment surveys. Citigroup customers are spending freely on restaurants and vacations, driving credit card volumes up 18% over the prior year period. Wells Fargo also cited travel and entertainment in card spending growth in its results. JPMorgan Chase said much the same thing the day before. Some discretionary spending is down: Wells Fargo said debit cardholders were buying fewer clothes and doing fewer home renovations. [Bloomberg]

For U.S. card issuers, recession worries may portend a good quarter

U.S. card companies are expected to strike a cautious tone in their quarterly results as rising prices jeopardize heavy spending by Americans emerging from their pandemic shells. While they haven’t so far cut back on purchases of appliances or even major purchases like cars, vacations haven’t been on the cards for many, according to a Conference Board survey. Record gasoline prices and expensive air fares could slow consumer spending on travel, a major source of revenue for Mastercard, Visa and America Express. For now, Wall Street analysts aren’t worried about it. [Reuters]

Two-thirds of US consumers have filed credit card chargebacks in the past year

Credit card chargebacks are reaching crisis levels for retailers on both sides of the Atlantic, according to a major new survey of US and UK consumers released today by chargeback mitigation firm Justt. Two-thirds of US shoppers and 44% of UK shoppers have filed chargebacks in the last 12 months, and many have filed multiple chargebacks, part of a global trend that is eating away at retailers’ revenue and hurting relationships with retailers. clients. The survey shows that UK and US consumers now regularly rely on chargebacks to express their dissatisfaction with the products and services they receive. US shoppers were significantly more aggressive than UK consumers in their use of chargebacks across all industry verticals, and were also more likely to file chargebacks serially. [Loss Prevention Media]

Chase to launch co-branded Instacart credit card

As of June 2020, Chase and Instacart have partnered to provide benefits for Chase cardholders, including free Instacart Express membership and discounts. The bank and food delivery service have now announced they will be launching an Instacart co-branded credit card. The Instacart Mastercard credit card will be the first co-branded card offered by a food delivery service. The card will give consumers the opportunity to earn accelerated points on Instacart purchases and will offer several other perks, benefits and savings. [CNBC]

GoHenry Acquires Pixpay as Kids’ Banking and Teen Debit Cards Take Europe by Storm

Kid-focused fintech services — apps and banks designed to educate and teach kids about finance — are on a mission to educate the masses from an early age. And they grow fast. GoHenry is at the forefront of this emerging industry, having more than doubled its revenue during the pandemic to $42 million in 2021 and amassed a consumer base of over 2 million in the UK and US. From now on, the firm hopes to conquer continental Europe with the acquisition of Pixpay, the leader in banking for teenagers in France and Spain with nearly 200,000 members. [Euro News]

Buy now, pay later refunds on apps like Afterpay, Affirm, Klarna Frustrate Consumers

Buy now, pay later apps have grown in popularity, accounting for $142 billion in e-commerce transactions last year. Some customers have reported that it can be difficult to get a refund if there is a problem with the purchase. Consumer advocates are urging more protection for shoppers in the event of fraud or canceled purchases. [USA Today]

Google Wallet is now available worldwide

In May, at its annual Google I/O conference, Google announced that it would combine Google Pay with several features scattered across other apps into a brand new app: Google Wallet. Now Google Wallet is officially live and available for download in 39 countries, although it works a little differently in some markets. Google Wallet combines payments with the ability to save cards for vaccines, transport and event tickets, as well as boarding and loyalty cards. The features are similar to what Apple offers with its wallet, but Google’s version has some advantages, such as deep integration with other Google apps like Maps. [Mashable]

World’s largest banks surprised growing during pandemic

The world’s largest banks have emerged from the Covid-19 pandemic stronger and more resilient, and have now built up their Tier 1 capital to the equivalent of five times the total assets of the US credit union community. According to The Banker’s Top 1000 World Banks ranking, the aggregate Tier 1 capital of the 1000 largest banks, a key measure of banking soundness, exceeded $10 trillion for the first time in the history of the ranking. [CU Today]

Visa changes chargeback dispute program

Visa is changing how it handles first-party fraud or intentional cardholder misuse. Under the new plan, taking effect April 15, 2023, Visa said it will let merchants provide additional data to prove a disputed transaction was indeed valid, a step that aims to expedite resolutions while making it easier to getting a case dismissed. Forms of proof a merchant may provide include proof of a similar purchase by the same customer, login credentials, or proof of product use. [PYMNTS]

Apple Pay illegally profited by removing contactless payments, lawsuit claims

A proposed class action lawsuit filed on behalf of payment card issuers accuses Apple of illegally profiting from Apple Pay and violating antitrust laws. Affinity Credit Union of Iowa is listed as a plaintiff in the complaint. The lawsuit alleges that by limiting contactless payments on iOS devices to Apple Pay and charging payment card issuers a fee to use the mobile wallet, the iPhone maker is engaging in anti-competitive behavior. [Engadget]

Next time you swipe your credit card, thank this caption

Dee Hock, the visionary founder of Visa Inc. who built a modern electronic payments infrastructure system that transformed the way money changes hands, died this weekend at age 93. As licensees complained of problems with fraud, slow authorization processes, and general disorganization, Hock turned to structuring the BankAmericard program. In the late 1960s, he took over the management of National BankAmericard, later known as Visa, which united Bank of America and the licensees in a cooperative. The goal was not only to improve the financial fortunes of card programs, but also to make people actually want to use the cards and merchants to want to accept them. [MarketWatch]


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