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January 27, 2021

On the wires

Synchrony to Acquire Allegro Credit to Drive Growth in Health and Wellness Financing

“Synchrony (NYSE: SYF) today announced it has reached a definitive agreement to acquire Allegro Credit , a leading provider of point-of-sale consumer financing for audiology products, dental services and musical instruments.  Allegro Credit’s merchant network and customer base will largely join CareCredit, Synchrony’s health and wellness financing platform. The acquisition advances Synchrony’s growth and diversification strategy and accelerates its industry leading digital innovation, expanding choice at the point-of-sale for its providers, merchants and customers.”

November 17, 2020

On the wires

Marqeta and Uber enter strategic global card-issuing partnership

“We’re thrilled to announce that we’ll be serving as a global card issuing partner for Uber, helping to provide critical financial infrastructure for its global expansion. Although we’ve already been supporting the global growth of Uber Eats, we’ll be serving as Uber’s card issuing partner for future projects as well. Uber will be using our modern card issuing technology to support its ecosystem of apps, which have more than 100 million monthly global users. With our platform, Uber will be able to issue physical, virtual, or tokenized cards while significantly reducing time to market.”

October 28, 2020

On the web

The Coronavirus Economy Is a Mixed Bag for Credit-Card Issuers

Wall Street Journal (pay wall)

“Consumers are spending money as if the coronavirus recession is over. But they are also paying down old debts and avoiding new ones in case the pandemic lasts a while. That is the discordant picture of the U.S. economy that emerged from third-quarter earnings reports from some of the country’s largest credit-card issuers. Capital One Financial Corp. , Discover Financial Services and Synchrony Financial reported last week that, starting in September, the volume of purchases made by their customers increased from the relevant period a year earlier, a first since the coronavirus forced swaths of businesses to close their doors in March and a severe recession took hold. The buying continued well after laid-off workers stopped receiving $600 a week in extra unemployment benefits at the end of July.”

September 2, 2020

On the web

Credit Card Firms Split on Fate of Consumers While U.S. Cuts Aid

Bloomberg (paywall)

“A fissure is forming in the U.S. credit card industry: Are consumers about to go bankrupt or bounce back? On one side, risk-management pioneer Capital One Financial Corp. is reining in credit lines to reduce its exposure. On the other, the nation’s largest card issuer, JPMorgan Chase & Co. , is rolling out a new card designed for travelers and diners — the ultimate countercyclical bet. Those moves are just the tip of a debate unfolding inside the industry as Congress deadlocks over extending $600 weekly checks to millions of unemployed Americans. In some corners, worries are mounting that households will struggle to make ends meet, max out their credit and default. But some banks see an opportunity to attract people who are still doing fine.”

September 1, 2020

On the wires

Global Payments Signs Multi-Year Agreement With Wells Fargo Bank

“Global Payments Inc. (NYSE: GPN), a leading worldwide provider of payment technology and software solutions, today announced that TSYS, its Issuer Solutions business, has renewed its agreement with Wells Fargo, the fourth largest bank in the U.S. As part of the multi-year agreement, TSYS will continue to provide a range of processing and support services for the bank’s commercial card portfolio. Wells Fargo has utilized TSYS’ payments processing platform since 1995.”

August 4, 2020

On the web

Citi’s New Credit Card Perk Gives Amazon Edge in Winning Big Orders

Bloomberg (paywall)

Citigroup Inc. plans to let credit-card customers finance big purchases on Amazon.com over longer periods of time — a deal that may spur sales at the e-commerce giant while boosting the bank’s interest-bearing balances.    Cardholders who’ve shopped on Amazon in the past 12 months can choose to pay off transactions of at least $100 on a longer schedule and at a lower annual percentage rate, the lender said in an emailed statement.”

On the wires

American Express Expands Popular ‘Pay It Plan It’ and Pay Over Time to U.S. Consumer Green, Gold and Platinum Cards

“As customers’ needs have evolved, American Express continues to bring innovative features and benefits to Card Members. Starting on August 1, Card Members have more ways to pay for the things they buy with the expansion of Pay It Plan It to its iconic U.S. Consumer Green, Gold and Platinum Cards, and Pay Over Time – already available on Green and Gold – to Platinum Cards.”

June 29, 2020

On the wires

Chargebacks911 Introduces Fi911, AI-Driven Payment Product Suite

“Chargebacks911, a global leader in the field of chargeback control and mitigation, has introduced Fi911, a new tool suite for banks and other financial institutions. Developed by Chargeback911’s experts, in collaboration with some of the world’s largest financial institutions and payments processors,Fi911 is designed to enable financial institutions to automate their procedures and deal efficiently with chargebacks.”

June 26, 2020

On the wires

Galileo Instant Takes Aim at Growing 1099 Payment Landscape

Galileo today announced the full launch of Galileo Instant, a frictionless solution for gig-economy, marketplace, ecommerce, fintech and other businesses that want the speed and convenience of creating debit cards through a single point of contact—Galileo. Using Instant, qualified businesses can launch their debit card programs as early as 14 days—start to finish.”

June 18, 2020

On the wires

Strong Adoption of I2c Solutions Drives Expansion Across Americas

i2c Inc. , a leading provider of digital payment and open banking technology today announced an expansion of its business in both North and South America as demand continued to accelerate for its innovative solutions. i2c has signed 17 new clients across the Americas since the beginning of the year representing both commercial banks and FinTechs who are serving the needs of consumers and businesses with credit and debit programs that meet the needs of an increasingly on-demand, digital world.”

April 23, 2020

On the web

Credit Cards Start Offering Lower Limits Amid U.S. Outbreak

Bloomberg

“Major U.S. credit-card issuers are starting to lower customer spending limits as the coronavirus pandemic leaves millions of Americans jobless and struggling to keep up on loans. Discover Financial Services just became the largest lender yet to acknowledge it’s begun reining in lines of credit for new customers. In a regulatory filing late Wednesday, the firm said it’s also easing off efforts to sign up consumers and that it expects to take a hit from programs letting existing borrowers skip payments or delay the accrual of interest.    “As the number of loans enrolled in these programs increases, our financial results will be adversely impacted in the short term due to forgone interest,” Discover said.”

April 10, 2020

On the web

In Response to the Coronavirus, Credit Card Issuers Like Amex and Capital One Are Letting Customers Skip Payments Without Interest and More

Business Insider

“Not only has COVID-19 led to a dramatic dip in the stock market, but the coronavirus pandemic has also resulted in both temporary and permanent layoffs . According to a survey by WalletHub, 67 million Americans anticipate difficulties paying their credit card bills because of the coronavirus. Fortunately, most major credit card issuers are responding by offering assistance to their customers. Goldman Sachs, which issues the Apple Card, is allowing customers to skip their March payments (and, now, their April payments ) without accruing any interest fees. American Express and Capital One are following suit with similar programs for eligible cardholders.”

March 19, 2020

On the web

March 17, 2020

On the web

Credit Card Issuers Rankle Travelers Scrambling to Cancel Trips

Wall Street Journal

“Card issuers are scrambling to respond, with many tweaking refund policies along the way. Customers say they have had to wait hours on the phone to talk to customer-service representatives. Card issuers have been lenient with refunding customers who can no longer travel because they have personally contracted coronavirus. But many customers simply don’t want to travel as the virus spreads, both out of health concerns and because many of the places they planned to visit are closed.”

March 2, 2020

On the web

Startups Weekly: Why some fintech companies aren’t blinking at customer acquisition costs

TechCrunch

“Distribution channels are getting saturated across the internet and beyond, and in many tech sectors the cost of acquiring new customers is crimping profitability. But so far, so good in the “great credit card craze,” as Alex digs into this week for Extra Crunch . It turns out that the remaining revenue possibilities combined with the current revenues from interchange fees mean costs are staying relatively flat — or so say a few well-placed execs.”

December 30, 2019

On the web

December 12, 2019

Top Post

Retailers Don’t Like Paying the Fees for Your Apple Card

Bloomberg

“That’s because the card, marketed by Apple and backed by Goldman Sachs Group Inc. , is designated “elite,” which allows it to levy significantly higher interchange fees on each swipe or tap. Those fees aren’t paid by the consumer but by the merchant as part of the cost of accepting credit cards. A grocer can lose more than half its profit on a sale when someone pays with an Apple Card, or one of its elite competitors, rather than a normal card. Elite cards impose higher transaction fees to support generous reward programs for their customers.”

October 17, 2019

On the web

PayPal to Launch Venmo Credit Card in Partnership With Synchrony

MarketWatch

“The market for credit cards is crowded, but PayPal PYPL, +0.57% and Synchrony expect that consumers will see value and differentiation in their offering due to a focus on the back-end user interface. Venmo cardholders will be able to deal with all aspects of their cards from within the Venmo app, providing a “native in-app experience” for users who are used to checking that app on a routine basis, according to Synchrony Chief Executive Margaret Keane. PayPal Senior Vice President of Credit Darrell Esch declined to reveal the distinct features of the card or app ahead of the official launch next year, though the company’s release said that cardholders “will receive real-time alerts and can interact in new ways including splitting and sharing purchases.””

On the wires

PayPal and Synchrony Expand Relationship to Launch Venmo’s First-Ever Credit Card

“PayPal Holdings, Inc. (NASDAQ: PYPL ) and Synchrony (NYSE: SYF ) today announced an expansion and extension of their strategic consumer credit relationship. As part of their expanded partnership, Synchrony will become the exclusive issuer of a Venmo co-branded consumer credit card in the U.S., which is expected to launch in the second half of 2020. PayPal and Synchrony also announced an extension of their overall consumer credit program relationship.”

October 1, 2019

On the web

Goldman Sachs Tries Banking for the Masses. It’s Been a Struggle.

Wall Street Journal

“Marcus launched without a collections team to chase down delinquent borrowers, resulting in early loan losses, people familiar with the matter said. A credit card developed with Apple Inc. was a coup, but a costly one: Thousands of engineers across Goldman were diverted to finish it in time for an August debut, delaying other projects. Apple ads for the card carried the phrase: “Designed by Apple, not a bank”—a line that didn’t appear in a giant banner ad in Goldman’s lobby this fall.”

August 20, 2019

On the web

The Apple Card Is the Start of Goldman’s Transformation Into a Consumer Powerhouse, CEO Says

CNBC

“With the official launch of the Apple Card , Goldman Sachs is embarking on a multi-decade journey to becoming a leader in consumer banking just as it has been in Wall Street banking and trading, CEO David Solomon said. “Apple Card is big, but it’s also a beginning,” Solomon said Tuesday in an internal memo obtained by CNBC. “In the decades to come, I expect us to be a leader in our consumer business, just like we are in our institutional and corporate businesses, with customer-centricity at the core of everything we do.””

July 22, 2019

On the web

Is Apple’s Credit Card Worth It for Privacy Reasons, Even If It Has Meager Rewards?

Fortune

“In March, Apple revealed its first credit card: Apple Card, a thin slab of titanium that would provide shoppers with 3% cash back at Apple stores, 2% at anywhere Apple Pay is available, and 1% everywhere else. Many observers quickly pointed out Apple Card’s limited earning potential for customers. Citi’s Double Cash card, for example, provides shoppers with 2% back everywhere, not just at stores with Apple Pay. Meanwhile, the Chase Freedom and Discover It card offer 5% cash back for shopping in categories that rotate quarterly. While Apple can’t compete in terms of money to card holders, it does has a big focus on customer privacy. Apple Card has no numbers on it or a CVV, making it harder for identity thieves to steal credit card information. Apple also promises that it won’t track customer spending, and that Goldman Sachs and MasterCard — Apple’s partners in the venture — won’t sell any customer data to other companies.”

June 11, 2019

On the web

Goldman Sachs Isn’t Worried About Apple Card Profitability Despite Consumer-friendly Features

9to5Mac

“Speaking at the Business Insider Ignition Finance event today, Goldman’s head of consumer digital finance in its Marcus division, Omer Ismail, said the company isn’t worried Apple Card’s profitability. Ismail explained that Marcus doesn’t buy into the idea that in order to do what’s right for consumers it must be less profitable. He also pointed out that by doing right by the consumer earns their loyalty in the long run:”

Citi Launches Credit Cards With Southeast Asia’s Grab in Push for More Customers

CNBC

“Citigroup has teamed up with Singapore-based ride-hailing firm Grab to launch co-branded credit cards, as it looks to boost its Asian customer base by about 13% via partnerships with digital firms, a senior Citi executive said. The new cards mark the latest step in Grab’s big push into the financial services sector, an area it has earmarked for growth. For the U.S. bank, it is in line with its strategy to offer its products within online ecosystems as consumers spend more time on smartphones.”

May 29, 2019

On the web

Banks Report Record Quarterly Increase in Sour Credit-Card Debt

Wall Street Journal (paywall)

“Banks reported a record increase in sour credit-card debt in the first quarter and a surge in past-due commercial and industrial loans, a federal regulator said Wednesday. The Federal Deposit Insurance Corp. in a quarterly report on bank earnings reported a 22.8% surge in commercial and industrial-loan balances that are 90 days or more past due. Banks also wrote off $12.7 billion in uncollectible loans, a 5.5% increase from the same time last year. Net charge-offs for credit-card debt increased by $543.4 million over the last year, the largest such dollar increase since the FDIC began collecting the data in 1984.”

April 23, 2019

On the web

Credit-Card Issuers Boost Spending on Social-Media Ads

Wall Street Journal (paywall)

“Credit-card pitches are moving from the mailbox to the social-media feed. Several big card issuers recently increased spending on Facebook ads in an effort to attract new borrowers. Capital One Financial Corp. and American Express Co.  spent an estimated $18.6 million and $13.5 million, respectively, on Facebook ads meant to sign up new consumer-credit-card holders in 2018, according to Mintel Comperemedia’s analysis of data from digital marketing intelligence firm Pathmatics, up from $2.8 million and $4 million in 2017.”

April 22, 2019

On the wires

Visa Opens Door to Digital-First Payment Experiences Through Visa Next

businesswire

“Today, Visa introduced a new platform with a set of beta APIs, specifications and development tools for issuers and issuer processors to begin building and beta testing new payment products to help meet the future needs of digital-first consumers. The offering will be available to clients and partners via Visa Next , a new destination for accessing new solutions in Visa’s product pipeline.”

December 7, 2018

On the web

October 24, 2018

Top Post

The $10 Billion Tussle Over Walmart’s Credit Cards

Wall Street Journal (paywall)

“For nearly two decades, Synchrony Financial SYF -1.62% was the exclusive issuer of Walmart Inc. WMT +0.57% credit cards. The Connecticut-based bank stationed dozens of employees in Walmart’s headquarters city of Bentonville, Ark., some of its executives lived in the same gated community as their Walmart counterparts, and employees would hit the same golf course and hunt quail together. That came crashing down in July, when Walmart told Synchrony it was switching to Capital One Financial Corp.”

October 9, 2018

On the web

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