The Bad Economy Behind Apple’s New Pay Later System

Apple is getting into buy now, pay later with its new Pay Later service integrated with Apple Pay and Apple Wallet. While Apple touts the service as “designed with the financial health of users in mind,” BNPL is a practice that has come under scrutiny from government regulators as something that could potentially harm customers. Apple’s Pay Later service, which has been in the works for at least the last year, allows users to make a purchase with Apple Pay and then pay it back in four equal installments over a six-week period. There’s no interest on these installments, but it’s unclear if Apple will charge late fees, and if so, how much it will cost. [The Verge]

US senators unveil bill to regulate cryptocurrency

A bipartisan pair of U.S. senators on Tuesday unveiled a bill that would establish new rules for cryptocurrency and hand over most of their oversight to the Commodity Futures Trading Commission (CFTC). The bill marks one of the most ambitious efforts ever by lawmakers to place clear safeguards around the rapidly growing and controversial cryptocurrency markets. The measure would stipulate that the CFTC, and not the Securities and Exchange Commission, would play the primary role in regulating crypto products, most of which, according to the senators, operate more like commodities than securities. The smaller CFTC is generally considered a friendlier regulator for cryptocurrency, as the SEC has generally found that crypto products must meet a host of security requirements. [Reuters]

1 in 3 Americans earning $250,000 or more say they live paycheck to paycheck

According to a survey by PYMNTS and the LendingClub, more than one in three Americans who earn at least $250,000 say they live paycheck to paycheck. To be exact, 36% of Americans who take home a quarter of a million dollars or more say they run out of money again on their payday. More than 40% of those earning at least $100,000 say the same. The overall picture is darker. The report found that 61% of all Americans were living paycheck to paycheck in April 2022. In other words, nearly two-thirds of the US population, or about 157 million people, have little or nothing left at the end of the month, an increase of nine percentage points from April 2021. And most people earning less than $50,000 (just under 80% of them) live from one paycheck to the next. [MarketWatch]

Satisfaction with credit card apps declines as usage increases

Most customers are dissatisfied with their credit card mobile apps and online options, according to recent JD Power study results. Overall satisfaction with most digital channels has declined as usage has increased. Many customers are financially stressed and want their bank and credit card providers to help them manage their finances through online tools. However, by offering personalization through high-touch digital channels, most banks and credit card providers miss the mark. [ABA Banking Journal]

Americans increase credit card use as high prices continue to bite

Americans continue to rely on credit cards and loans as consumer credit jumped $38 billion in April amid the highest inflation in 40 years. The latest data from the Federal Reserve on outstanding consumer credit comes after March’s record $52.4 billion increase. This figure has since been revised down to $47.3 billion. Revolving credit, which primarily includes credit card balances, grew at an annualized rate of 19.6% and totaled $1.103 trillion in April, beating just a pre-pandemic record of $1.1 trillion. [CNN]

Buy-it-now, pay-later financing can create a “dangerous illusion” that purchases are cheaper than they actually are

According to JD Power’s latest Banking and Payments Intelligence Report, Buy-now-pay-later, or BNPL, financing options are growing in popularity with consumers, especially those under 45. And that could mean trouble for their financial well-being. Many young people say they don’t understand how these payment methods work, and that’s where the trouble begins. It is quite easy to take out BNPL loans, and if consumers are not careful with their spending, they may end up accumulating more debt than they can afford to repay. In fact, according to the report, almost a third of young consumers say they spend more than their budget allows with BNPL. [Fortune]

Apple Passkey feature will be our first glimpse of a truly passwordless future

Apple and other tech giants want to get rid of passwords for online accounts and apps. During its WWDC 2022 keynote on Monday, the iPhone maker announced a new feature called Access Keys. This is essentially a new type of security that seeks to replace passwords for account login purposes. It will debut in the fall on iOS 16, macOS Ventura, and Apple’s other 2022 updates. Apple Security Keys are basically a type of biometric login standard. Instead of entering a password to sign in to an app or online account, you would use a password stored on your device. You can think of a security key as a digital version of something like a hardware security key. Once you’ve set up a password on an account, you’ll be able to use it to log in by authenticating with Face ID or Touch ID. [Apple Insider]

Mastercard launches Open Banking “Pay by Link” feature

Mastercard has launched its Pay by Link payment feature at Money 20/20 Europe, leveraging European open banking platform Aiia to allow businesses to send customers a link so they can pay instantly from anywhere. anywhere. The new payment functionality “links directly to Mastercard’s open banking vision which ushers in a new era of choice, simplicity and personalization in a safe and secure way,” the company’s press release reads. Based on open banking payments, Mastercard’s Pay by Link feature offers users dealing with accounting, insurance and telecommunications companies, as well as social commerce, payment service providers and service companies public. [PYMNTS]

Discover Offers A free and easy way to unsubscribe from popular people-finder websites

Discover recently launched a new benefit for its credit card and bank customers. It says its “online privacy protection” program makes it easy to remove personal information from 10 popular data collection websites, including Spokeo, Intelius and ZabaSearch. The free service is accessible via the Discover mobile app. For those who need to protect their personal information, such as survivors of domestic violence, opting out of this data sharing is crucial. Removing your information from people-finding sites can reduce your risk of identity theft, but it won’t eliminate the threat, which Discover makes clear to customers who sign up for its program. [Consumers’ Checkbook]

Ivella is the latest Fintech focused on couples banking, with a twist

Ivella, a new fintech startup, was born out of the expectation that couples would only use Venmo if they were married. The best solution, so far, has been joint accounts: which means that two people will create an account where they will join their accounts and draw from the same pool. Instead, Ivella wants to create a shared account: Couples maintain individual accounts and balances, but get an Ivella debit card linked to those two accounts. [Tech Crunch]

Yes, a restaurant can charge different prices for credit cards and cash

In all states, it is legal for restaurants to charge customers more for purchases made with credit cards than for purchases made with cash. In most states, they can achieve this for an additional fee for credit card purchases. In some states, restaurants can only do this by offering a discount for purchases made with cash or other payment methods. Although cash discounts serve the same purpose as surcharges, cash discounts are legal even in the 10 states that prohibit surcharges. [Verify]




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