Visa has introduced a new digital card replacement service to help travelers who may lose their credit cards while away from home. With this service, cardholders can receive a digital replacement card via text or email after reporting their card lost. This new card can be authenticated and added to a digital wallet in minutes, providing near instant relief for travelers. A recent study revealed that 74% of U.S. travelers now use digital wallets on their trips, indicating a growing trend towards this convenient form of payment. This new service aims to make travel more seamless and stress-free for Visa cardholders. [Forbes]
In contrast, a federal judge recently rejected a $30 billion antitrust settlement between Visa, Mastercard, and a group of retailers that would have temporarily reduced swipe fees charged to merchants. Many retail groups criticized the proposed agreement for not going far enough to provide relief against the two credit card giants, who control roughly 80% of the market. The agreement would have required Visa and Mastercard to roll back swipe fees by at least 4 basis points for three years and cap fees at 2023 levels for the next five years. However, opponents argued that this temporary reduction would not have a significant impact on retailers in the long term. [UPI]
American Express recently acquired reservation platform Tock and payments platform Rooam, signaling a focus on delivering premium experiences to its cardholders. Tock works with high-end restaurants, aligning with Amex’s strategy of offering luxury experiences to its clients. This move further solidifies Amex’s position in the high-end market and enhances its offerings for cardholders. The credit card company’s acquisition of Rooam, which provides point of sale software to restaurants, also strengthens its presence in the hospitality industry. [Payments Dive]
China is reportedly in negotiations with Visa and Mastercard to lower bank card transaction fees in the country as part of an effort to facilitate payments for foreign visitors. The Payment & Clearing Association of China proposed reducing the fee charged to local merchants on foreign card transactions from 2-3% to 1.5%. This move is aimed at promoting smoother transactions for foreign visitors and boosting the efficiency of payment processes in China. Lower transaction fees could benefit both merchants and consumers by reducing costs associated with card payments. [Bloomberg News]
Mastercard announced plans to phase out manual card entry for online payments in Europe by 2030, replacing the traditional 16-digit card number with a randomly generated token. This token system will allow consumers to make one-click payments at checkout using biometric authentication, such as a thumbprint. This streamlined process aims to enhance security and convenience for online transactions, providing a more seamless payment experience for European consumers. The shift towards biometric authentication reflects a broader trend towards innovative payment technologies in the digital era. [CNBC]
Small businesses have been increasingly relying on credit card debt to combat inflation pressures, with credit card balances up 18% since 2019. Inflationary pressures have forced many small business owners to take on more debt to cover expenses, leading to a rise in credit card usage. A survey found that 71% of small business owners believe inflation has increased financial pressures on their businesses in the past three months. In addition to using credit cards, many businesses are raising prices, working longer hours, and reducing their own salaries to offset the impact of inflation. [Small Business Trends]