Critics on both sides of the Atlantic raised concerns about the oversight and budgetary measures in the United States and UK, particularly regarding support for small businesses. The UK's Spring Budget and the US Consumer Financial Protection Bureau faced criticism for favoring individuals over business owners.
Chancellor Jeremy Hunt's UK Spring Budget, aimed at long-term growth, was deemed insufficient by Scott Dawson of DECTA, who argue that it largely excludes business owners. In the United States, the CFPB's recent measures targeting financial service providers were criticized for potential overreach, with legal analysts suggesting existing guidelines already address the issues raised.
Despite PayPal's facing economic challenges and a decline in share prices, analysts are bullish on the company's stock, citing a recent reorganization and robust product roadmap. Stocklytics.com and The Motley Fool highlighted PayPal's commendable 9 percent year-over-year revenue growth under CEO Alex Chriss, which translated into an 18 percent increase in earnings.
Challenges stemming from increased competition since PayPal's spinoff from eBay in 2015 were noted, but analysts see potential for a turnaround, particularly with PayPal's new product, Fastlane, aimed at improving checkout efficiency. With shares trading at under nineteen times earnings, PayPal is expected to recover, suggesting positive implications for Main Street and Wall Street.
A recent report from the Federal Reserve Bank of New York highlighted the increasing popularity of buy now, pay later (BNPL) options, particularly among financially fragile Americans. Despite limited data due to regulation gaps, the New York Fed's survey revealed insights into BNPL usage. Financially fragile households, defined by low credit scores, recent credit declines or loan delinquencies, heavily utilize BNPL. Surprisingly, income isn't the primary factor driving BNPL use; reasons vary from deferred interest to convenience.
The study suggested substantial growth potential for BNPL, with first-time use being the primary barrier. Notably, BNPL usage is recurring across income groups. However, financially stable consumers tend to make higher-value BNPL purchases. The report underscored the need for better understanding and regulation of BNPL services.
J.D. Power's 2024 Digital Wallet Satisfaction Study, based on a survey of 3,957 consumers, found a global surge in digital wallet usage, surpassing other payment methods by 5 percent in ecommerce and 6 percent in mobile commerce transactions. Miles Tullo of J.D. Power suggested that continued growth in online and mobile commerce will drive further adoption of digital wallets.
Although convenience and ease of use are key drivers, the study revealed discrepancies in merchant acceptance, with only 57 percent of small and midsize businesses currently accepting digital wallets. While dominant brands like PayPal, Apple Pay, Venmo and Cash App Pay lead in usage, researchers noted room for improvement, particularly in incentivizing adoption through rewards programs and merchant discounts. The study concluded the digital wallet space remains dynamic, with ample opportunity to enhance customer satisfaction and loyalty.
Visa and Mastercard reached a settlement with retailers, aiming to resolve a longstanding legal dispute. Originating from a lawsuit filed in 2005, the settlement is subject to approval by a federal district court in New York and addresses merchants' allegations of collusion to inflate interchange fees. The agreement entails a halt on interchange fee hikes for four years, the elimination of anti-steering rules, and simplification of rules regarding surcharging and cash discounting.
Both card brands emphasized benefits for businesses, including flexibility in managing card acceptance. Attorneys representing merchants estimated savings of nearly $30 billion over five years. Despite this, some merchant associations expressed concerns over the adequacy of fee reductions. The National Retail Federation advocated for legislation promoting competition in card payment processing. 
This article contains excerpts from news stories recently posted under Breaking Industry News on our homepage. For links to these and other full news stories, please visit www.greensheet.com/breakingnews.php.
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.
Prev Next
