Majority of Americans Aren’t Confident in the Safety and Reliability of Cryptocurrency
Cryptocurrency markets continue to face challenges. The currency’s value has dropped, lawsuits are mounting and Congress is mulling regulations. Meanwhile, Americans remain skeptical about cryptocurrency, and the share who’ve used it has not grown in the past three years, according to a Pew Research Center survey. Roughly six-in-ten Americans (63%) say they have little to no confidence that current ways to invest in, trade or use cryptocurrencies are reliable and safe. This includes three-in-ten adults who say they are not at all confident, and a third who say they are not very confident. Just 5% of adults are extremely or very confident in cryptocurrencies, and 18% are somewhat confident. [The Pew Research Center]
Consumers’ Credit Limits Declining, Inflation May Be The Reason
Consumers’ credit limits decreased in 42 of the 50 states year-over-year as of Q2 2024, with the decrease ranging anywhere from around 0.3% to over 15%, a new study shows. The report from WalletHub suggests inflation is playing a role in the decline, as consumers charge more on their credit cards to manage monthly expenses. Montana, Washington and Minnesota, respectively, lead the way with the largest declines. South Dakota and Vermont had the smallest decreases. [CU Today]
Capital One Warns of Potential Enforcement Action over Savings Accounts
The CFPB may pursue enforcement action against Capital One over alleged misrepresentations related to its savings accounts, the consumer lender disclosed in a filing last week. At the center of the controversy is a lawsuit filed by some customers last year, who alleged that the company introduced a new “360 Performance Savings” account with a higher interest rate than it was paying to customers of another account, “360 Savings.” The customers claimed that this mismatch was not clearly communicated, resulting in them missing out on potential earnings. [Reuters]
CFPB Investigates How Meta Uses Consumer Financial Data for Targeted Advertising
The CFPB has informed Meta of its intention to consider ‘legal action’ concerning allegations that the tech giant improperly acquired consumer financial data from third parties for its targeted advertising operations. This federal investigation was revealed in a recent filing that Meta submitted to the Securities and Exchange Commission. The filing indicates that the CFPB notified Meta on September 18 that it evaluated whether the company’s actions violate the Consumer Financial Protection Act, designed to protect consumers from unfair and deceptive financial practices. The status of the investigation remains uncertain, with the filing noting that the CFPB could initiate a lawsuit soon, seeking financial penalties and equitable relief. Meta, the parent company of Instagram and Facebook, is facing increased scrutiny from regulators and state attorneys general regarding various concerns, including its privacy practices. [DigWatch]
Buy Now, Pay Later Giant Affirm Expands to the UK in First Major International Foray
Buy now, pay later firm Affirm launched Monday its installment loans in the U.K., in the company’s first expansion overseas. Founded in 2012, Affirm is an American fintech firm that offers flexible pay-over-time payment options. Affirm said its U.K. offering will include interest-free and interest-bearing monthly payment options. Interest on its plans will be fixed and calculated on the original principal amount, meaning it won’t increase or compound. The company’s expansion to the U.K. marks the first time it is launching in a market outside the U.S. and Canada. Globally, Affirm counts over 50 million users and more than 300,000 active merchants, including Amazon, Shopify and Walmart. [CNBC]
Walmart Will No Longer Accept Some Bills in Any of Its Stores
If you are one of those people who still pay in cash, and above all, who do not look at the bills they pay with, you will have to pay special attention especially to one-dollar bills. Walmart has informed its customers that it will no longer accept one-dollar bills that have visible damage on them. With this, they seek to reinforce the security of the country’s monetary system. Which bills will be rejected at all Walmart? Those bills that have tears, cut edges or those that are quite deteriorated as a result of the passage of time or humidity. These will no longer be accepted in stores, banks or ATMs, so if you have any, try to get rid of them as soon as possible. [Union Rayo]
It’s Only Been 50 Years Since Women Had the Right to Their Own Credit
This week marks the 50th anniversary of the Equal Credit Opportunity Act, the legislation that for the first time made it illegal for banks to require women to have a male cosigner to receive a credit card, loan, or mortgage. Before this legislation was signed into law five decades ago this week, not only couldn’t women access credit, but the credit history went to the male cosigner, meaning that if a woman divorced, she would be starting from scratch with no credit history. This inequality persisted for more than a decade after the Equal Pay Act of 1963. [Fortune]
TGI Fridays $50 Million Gift card Stash Causes Franchisee Heartburn
TGI Fridays franchisees are worried that they could be on the hook for $49.7 million in outstanding customer gift card obligations if the company’s bankruptcy doesn’t go smoothly, an attorney for franchisees said Monday. The amount of unused gift cards far exceeds the company’s available cash, even after taking into account the $5.9 million that TGI Fridays is borrowing to fund its bankruptcy restructuring, according to court filings. TGI Fridays Inc filed for bankruptcy protection in Dallas, Texas, on Saturday, citing higher operating costs and decreased demand for casual dining restaurants. [Reuters]
Tokenized Payments Turn Make-or-Break Checkout Moments into Sales
Seamless checkout is a winning mantra for retailers looking to capture sales and delight their customer bases. Customers largely expect a fast, secure and intuitive checkout process. However, hurdles remain, and a seamless checkout isn’t always as easy as click-pay-done. One of the primary friction points? Fraud is gumming up the works. Online fraud rates are roughly eight times higher than those for in-person transactions, Marriner said. This creates financial loss for merchants and card issuers. Many fraud mitigation steps, such as complex passwords and one-time passcodes, often introduce additional friction to the checkout process. For businesses, getting the checkout experience right can help to increase conversion rates and reduce fraud. For consumers, it can mean the difference between intending to purchase and completing the transaction. [PYMNTS]
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