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Buy Now, Pay Later: The Latest Credit Card Acquiring Path




US citizens are increasingly accepting Buy Now, Pay Later (BNPL) services as research from Cornerstone Advisors reveals. The study revealed that the percentage of Gen Zers making purchases with BNPL plans grew six-fold between 2019 and 2021. In the same period, Millennials’ use of BNPL more than doubled over the same period to 41%, while Gen Xers’ adoption increased three times, and Baby Boomers were also not far behind reports


Credit card

Credit card

Consumers in 2021 made a whopping $100 billion in retail purchases using BNPL programs, and it is four times the amount in 2020, which was $24 billion. One of the causes is having industry observers proclaiming doomsday scenarios for credit cards.

However, the Nilson Report reveals that the 100 largest US issuers of Mastercard and Visa credit cards generated $1.492 trillion in purchase volume in the first half of 2021, up 22% from the first half of 2020.

Massive surge in cards defy doomsday predictions for credit cards

It is impressive to see the surge in the number of cards on the force in that time frames—Chase’s biggest gainers, with more than 111 million cards, which saw a 14% increase. In addition, Goldman Sachs, the issuer behind Apple’s card, grew cards issued by 48% and ended the first half of 2021 with $5.2 billion in outstanding, up 128%.

The winds of change are not blowing only across the old guard. Upgrade, founded by former Lending Club CEO Renaud Laplanche, inched to reach the top 50 with $416 million outstanding. It represents a 756% jump from 2020. It also issued 217,000 cards, constituting a rise of 678%.

Millineals fuel the credit card engine

In 2013 the present-day Millennials, 26 to 41 years old, were barely in their 30’s then. Their credit scores were not very high to many card issuers then. However, with time, their economic status and their credit scores improved. While there was undoubtedly a shift to debit card purchases, the influx of Millennials in the market buoyed credit spending.

At the height of the crisis in 2008-2009 economy was in bad shape. So it was natural for Consumers’ diminished credit card spending and debt levels. However, it did not warrant a sign of the impending “death” of credit cards.

Experts had erroneously misread the trends toward debit card spending in 2013 as a sign of credit card decline. Similarly, today’s BNPL advocates misreading the long-term impact of Buy now, pay later.

Nigel Morris, Capital One co-founder and managing partner at venture capital firm QED Investors, feels that BNPL is here to stay, and the digital shift will increase. But many people are overstating BNPL’s cannibalization of cards.

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Banking News

Only 28% Of Americans View Economic Conditions Of Their Country As Excellent



The American economy has experienced much turmoil during the COVID-19 pandemic. Indeed, according to the Motley Fool, the United States of America’s economy has come a long way since the beginning of the pandemic.


Of course, the pandemic sore the unemployment level in the year 2020 reaching a record high. In addition to this, finding work during this period has been extremely difficult. As such, the federal government issued various stimulus and COVID relief payments and credits and unemployment benefits to combat the effects of the pandemic.

The State Of U.S. Economy

Currently, the American economy is has a 7.5% inflation rate or consumer price index. This has surpassed the 40-year record high since 1982, that is, since last month. However, besides this – the unemployment rate has decreased, and it seems the United States of America is ‘getting back to work,’ and their country’s economy is starting to recover. However – a recent survey conducted by the Pew Research Center showed that 28% of participants viewed the country’s economic conditions as good or excellent.

Why Such Economic Pessimism

It seems the supper high inflation rate leads most Americans to have such a negative view of their economy. Indeed close to 90% of participants viewed food and gas prices as higher than last year, 89 and 88 82 percent respectively.

Is Inflation Always Bad?

However, some economists argue that inflation, is at times, a sign of a healthy economy and does not always have to be viewed in a negative light. This is easier said than done though, with living costs increasing – consumers can feel the pinch in their budgets.

The argument, however, is that supply and demand determine the unit price. So if there is an increased demand – and supply does not necessarily change – unit price must increase. This means consumer price index increases or inflation. So an increase in demand could show people are buying more, and this might at least be the signs of a recovering – or active economy.

When supply chain issues are fixed – inflation should decrease. Furthermore, since December last year, unemployment is the lowest it has been since the start of the pandemic. So perhaps such an opposing economic viewpoint – can be replaced, which is realistic, in this light.



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Banking News

Inflation in January at New Record 7.5%; Central Bank To Increase Interest Rates



On Thursday, the U.S. Department of Labor reported that the consumer price index jumped a staggering 7.5% last month. This is compared to January last year. According to Dessert News, this is the biggest ‘year-over-year’ increase since February 1982.

New Record High Inflation

In addition to this, the consumer price index in America has been increasing consistently for the last 18 months. In December last year, it reached a 40-year record high of 7%. This only eclipsed by January’s recently released figure of 7.5%. This is the fourth month in which the inflation rate has been over 6% since the onset of 2020 reports

Reasons For Increase In Inflation

Indeed, the pandemic has, as it seems from these figures, had a massive effect on the American economy. In this light, whilst it might be true the unemployment rate is down – the cost of living has increased drastically over the recently passed. Problems with the supply chain, and still employed as a result of the pandemic – as well as the  stimulus check packages supplied by the federal government have also led to a sharp increase in inflation.

For all of these above-mentioned reasons, the Central Bank in the United States of America is planning to hike interest rates.

What Does The Fed Suggest?

This tactic is normally employed by the federal reserve to make credit spending more difficult and thus slow down spending in the United States of America’s economy. By doing this – demand will, in theory, be reduced – leading to inflation reducing as supply catches up in turn.

As inflation remains high an ever-increasing record high in this year -2022 many citizens of the United States of America believe it is more than a short-term problem. As such, the recent inflation figures – and the upcoming increase in interest rates mean that mortgages will increase as well. This has made it all the more difficult to meet basic living costs and bills during the COVID-19 pandemic. For millions of middle and lower-income American citizens this is potentially disastrous news. What the future in regards to the cost of living holds in the United States of America, remains to be seen.


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U.S. Mortgage Rates At Its Highest As Compared to The Recent Two Years



mortgage loan

The pandemic had a significant impact on the market, and as a result, the U.S mortgage rates are very high. The numbers reported are the highest seen in the last two years.

The Mortgage rates are very high

The average 30-year loan increased from 3.55% to 3.69% in the last week. It is the highest rate reported in the previous two years. The highest rate seen before this week was reported in June 2020. The borrowing cost kept on increasing after a steady pace was observed in the month. A vast surge was seen in the yield regarding the 10-year Treasuries as reported by Bloomberg. The surge further went up to 2%.

Federal Reserve Can Increase the mortgage

Due to the high inflation and, on the other hand, robust job reports in January, the Federal Reserves can impact the mortgage. They can lift the interest rates, and this might give a boost to the Mortgages. Since the prices are going up, there is massive confusion regarding investment in the market. These rates have discouraged some of the investors, and on the other hand, many inventors think it to be a good time to invest, or the prices might go up even higher. According to different market analyses, there are chances that the price might not come down any time soon and to get something affordable from this market is a difficult job.

Rates and prices all-time high

Melissa Cohn, a banker and regional vice president at William Raveis Mortgage, states that it is like dealing with two runaway trains. The prices in the real estate sector are growing day by day, and on the other hand, the Mortgage rates are going crazy. In such an environment, things can get challenging for the first-time buyer. He will have to compromise whether by buying a small house or by paying the high-interest rates. The best option right now will be to step down and let things settle down.

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