![\"cumulative](\"https://www.pymnts.com/wp-content/uploads/2024/07/Cumulative-Inflation.png\")
Consumer spending has remained strong despite elevated inflation, surprising many economists. However, there are concerns about credit card delinquencies and lenders’ net charge-offs, which could indicate whether consumers can keep up with their payments. The Philadelphia Fed reported that balanced-based credit card delinquencies in Q1 2024 reached their highest level since 2012.
\nAccording to Seeking Alpha, in June, credit card delinquencies stayed stable at 2.79%, higher than pre-pandemic levels. Net charge-offs declined in June, but banks report that the growth in delinquencies and charge-offs is slowing.
\nDespite these concerns, U.S. retail sales for June remained flat, which was better than expected. Coresight Research founder and CEO Deborah Weinswig told Yahoo Finance that consumers are still spending, but there is less optimism for the future. However, there are potential interest rate cuts on the horizon, which could impact the retail sector.
\nAs PYMNTS reported, the resilience of consumer spending is also reflected in J.P. Morgan’s latest results, which showed strong card spend in both debit and credit payments. Credit card loans were up 13% year on year, and debit and credit card sales volumes were up 7%. J.P. Morgan CFO Jeremy Barnum stated that there has been little impact from spending shifts in an inflationary environment.
\nHowever, credit card delinquency rates have reached a nearly 12-year high. The share of credit card balances that are past due is at its highest level since 2012, indicating that people are struggling to pay off their credit card debt. This is despite many consumers trimming their spending. The New York Federal Reserve also reported rising delinquency rates for credit cards and auto loans across age groups.
\nMortgage delinquencies have also increased, reaching a six-month high in June. However, this surge is attributed to the calendar rather than borrower distress. The national delinquency rate rose 14.5% in June from the previous month.
\nOverall, while consumer spending remains resilient, there are concerns about credit card delinquencies and mortgage delinquencies. These indicators suggest that some consumers are struggling to keep up with their debt payments, despite strong retail sales and spending trends.
\nThe post Consumer Spending Remains Strong Despite Elevated Inflation appeared first on PYMNTS.com.
\n", "content_text": "Consumer spending has remained strong despite elevated inflation, surprising many economists. However, there are concerns about credit card delinquencies and lenders’ net charge-offs, which could indicate whether consumers can keep up with their payments. The Philadelphia Fed reported that balanced-based credit card delinquencies in Q1 2024 reached their highest level since 2012.\nAccording to Seeking Alpha, in June, credit card delinquencies stayed stable at 2.79%, higher than pre-pandemic levels. Net charge-offs declined in June, but banks report that the growth in delinquencies and charge-offs is slowing.\nDespite these concerns, U.S. retail sales for June remained flat, which was better than expected. Coresight Research founder and CEO Deborah Weinswig told Yahoo Finance that consumers are still spending, but there is less optimism for the future. However, there are potential interest rate cuts on the horizon, which could impact the retail sector.\nAs PYMNTS reported, the resilience of consumer spending is also reflected in J.P. Morgan’s latest results, which showed strong card spend in both debit and credit payments. Credit card loans were up 13% year on year, and debit and credit card sales volumes were up 7%. J.P. Morgan CFO Jeremy Barnum stated that there has been little impact from spending shifts in an inflationary environment.\nHowever, credit card delinquency rates have reached a nearly 12-year high. The share of credit card balances that are past due is at its highest level since 2012, indicating that people are struggling to pay off their credit card debt. This is despite many consumers trimming their spending. The New York Federal Reserve also reported rising delinquency rates for credit cards and auto loans across age groups.\nMortgage delinquencies have also increased, reaching a six-month high in June. However, this surge is attributed to the calendar rather than borrower distress. The national delinquency rate rose 14.5% in June from the previous month.\nOverall, while consumer spending remains resilient, there are concerns about credit card delinquencies and mortgage delinquencies. These indicators suggest that some consumers are struggling to keep up with their debt payments, despite strong retail sales and spending trends.\nThe post Consumer Spending Remains Strong Despite Elevated Inflation appeared first on PYMNTS.com.", "date_published": "2024-07-29T06:49:19-04:00", "date_modified": "2024-07-29T10:52:03-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/05/BNPL-in-store-checkout.jpg", "tags": [ "Consumer Spending", "Credit Card Balances", "credit card delinquencies", "inflation", "Net Charge-offs", "News", "PYMNTS News", "US retail sales", "What's Hot", "Consumer Finance" ] }, { "id": "https://www.pymnts.com/?p=2013951", "url": "https://www.pymnts.com/consumer-finance/2024/carputty-shifts-gears-on-how-consumers-finance-their-cars/", "title": "CarPutty Shifts Gears on How Consumers Finance Their Cars", "content_html": "Outside of their home, or their children\u2019s education, their car is most Americans\u2019 largest purchase.
\nBut when it comes to making that purchase, many would-be customers run up against two big obstacles: a lack of transparency around financing solutions, and outdated software first launched in the previous century.
\n\u201cConsumers go to dealerships and pick out a car, they go to the finance office and it\u2019s non-transparent,\u201d Joshua Tatum, co-founder and CPO at CarPutty, told PYMNTS. \u201cMost consumers don\u2019t know what their buy rate is, what the sale rate is.\u201d
\nHe added that the existing software in the market, largely developed in the 1990s, lacks data-driven capabilities and remains on-premises, despite the auto industry\u2019s multitrillion-dollar scale.
\nBut the potential for greater digital disruption in the auto finance sector is being realized by the marketplace, with solutions reshaping how consumers purchase vehicles, how lenders assess and approve financing, and how the entire customer journey is managed.
\nAdvancements within auto financing are part of a larger trend of technological disruption across various lending sectors, as the power of digital technology enables more streamlined experiences across financial services touchpoints.
\n\u201cTraditionally, auto finance was transaction based. You want a car, you go look for a car, you buy a car, then you have to finance the car,\u201d Tatum explained.
\nHe added that CarPutty\u2019s auto financing solutions redefine how consumers approach car financing by providing a line of credit based on the individual\u2019s financial profile rather than the specific car they intend to purchase. The line of credit allows consumers to finance multiple vehicles, refinance existing ones, or buy out leases.
\n\u201cIt is a very malleable financial product for the consumer to have, that they control,\u201d Tatum said.
\nAnd the integration of digital tools is not just a fleeting trend but a fundamental shift in how financial services are delivered and experienced. Concurrent innovations like artificial intelligence (AI) and machine learning are also enhancing underwriting and embedded lending processes. By analyzing consumer data, these technologies offer personalized loan products that better meet the needs of individual borrowers, improving customer satisfaction while reducing the likelihood of defaults.
\nTatum explained that CarPutty\u2019s own V3 tool, which stands for valuations past, present, and future, uses AI to give car owners greater insight into the value of their vehicles.
\nBy analyzing tens of thousands of data points per vehicle identification number (VIN), V3 provides real-time and predictive valuations. Consumers can track their car\u2019s current worth, historical value, and projected future value, transforming how they view their vehicles.
\n\u201cIt makes the consumer look at cars as assets versus depreciating assets,\u201d Tatum said. \u201cWhen the tires wear out, people can now make an informed decision on when to offload their car.\u201d
\nData from the February/March installment of the PYMNTS Intelligence \u201cNew Reality Check: The Paycheck-to-Paycheck Report\u201c revealed that for many consumers, car costs are a key concern. The\u00a0study\u2019s\u00a0survey of more than 4,200 U.S. consumers found that 27% said vehicle-related expenses had a high or very high impact on their budget in the last year.
\nRead more:\u00a0Cyberattack on Software Provider Stalls Out US Car Dealership Sector
\nWhile many of today\u2019s digital solutions focus on enhancing the consumer auto experience, they also can provide benefits to dealerships including valuable data on consumer behavior.
\n\u201cWe provide them actually what the consumer is doing with their car,\u201d Tatum said, noting that CarPutty customer dealers are given access to a private portal that can help with retaining customers and identifying potential sales opportunities.
\nAnd there is a new cohort of digital natives interested in purchasing a car. PYMNTS Intelligence in the April edition of the report \u201cWhy 60 Percent of Gen Z\u2019s Live Paycheck to Paycheck\u201c revealed that 11% of Generation Z consumers cited buying a car as their top financial goal.
\nAs dealers and consumers alike embrace digital innovation across the automotive finance industry, the data-driven future of automotive financing might just help them reach it.
\nThe post CarPutty Shifts Gears on How Consumers Finance Their Cars appeared first on PYMNTS.com.
\n", "content_text": "Outside of their home, or their children\u2019s education, their car is most Americans\u2019 largest purchase.\nBut when it comes to making that purchase, many would-be customers run up against two big obstacles: a lack of transparency around financing solutions, and outdated software first launched in the previous century.\n\u201cConsumers go to dealerships and pick out a car, they go to the finance office and it\u2019s non-transparent,\u201d Joshua Tatum, co-founder and CPO at CarPutty, told PYMNTS. \u201cMost consumers don\u2019t know what their buy rate is, what the sale rate is.\u201d\nHe added that the existing software in the market, largely developed in the 1990s, lacks data-driven capabilities and remains on-premises, despite the auto industry\u2019s multitrillion-dollar scale.\nBut the potential for greater digital disruption in the auto finance sector is being realized by the marketplace, with solutions reshaping how consumers purchase vehicles, how lenders assess and approve financing, and how the entire customer journey is managed.\nInnovating Auto Financing\nAdvancements within auto financing are part of a larger trend of technological disruption across various lending sectors, as the power of digital technology enables more streamlined experiences across financial services touchpoints.\n\u201cTraditionally, auto finance was transaction based. You want a car, you go look for a car, you buy a car, then you have to finance the car,\u201d Tatum explained.\nHe added that CarPutty\u2019s auto financing solutions redefine how consumers approach car financing by providing a line of credit based on the individual\u2019s financial profile rather than the specific car they intend to purchase. The line of credit allows consumers to finance multiple vehicles, refinance existing ones, or buy out leases.\n\u201cIt is a very malleable financial product for the consumer to have, that they control,\u201d Tatum said.\nAnd the integration of digital tools is not just a fleeting trend but a fundamental shift in how financial services are delivered and experienced. Concurrent innovations like artificial intelligence (AI) and machine learning are also enhancing underwriting and embedded lending processes. By analyzing consumer data, these technologies offer personalized loan products that better meet the needs of individual borrowers, improving customer satisfaction while reducing the likelihood of defaults.\nTatum explained that CarPutty\u2019s own V3 tool, which stands for valuations past, present, and future, uses AI to give car owners greater insight into the value of their vehicles.\nBy analyzing tens of thousands of data points per vehicle identification number (VIN), V3 provides real-time and predictive valuations. Consumers can track their car\u2019s current worth, historical value, and projected future value, transforming how they view their vehicles.\n\u201cIt makes the consumer look at cars as assets versus depreciating assets,\u201d Tatum said. \u201cWhen the tires wear out, people can now make an informed decision on when to offload their car.\u201d\nData from the February/March installment of the PYMNTS Intelligence \u201cNew Reality Check: The Paycheck-to-Paycheck Report\u201c revealed that for many consumers, car costs are a key concern. The\u00a0study\u2019s\u00a0survey of more than 4,200 U.S. consumers found that 27% said vehicle-related expenses had a high or very high impact on their budget in the last year.\nRead more:\u00a0Cyberattack on Software Provider Stalls Out US Car Dealership Sector\nAuto Financing in Fourth Gear \nWhile many of today\u2019s digital solutions focus on enhancing the consumer auto experience, they also can provide benefits to dealerships including valuable data on consumer behavior.\n\u201cWe provide them actually what the consumer is doing with their car,\u201d Tatum said, noting that CarPutty customer dealers are given access to a private portal that can help with retaining customers and identifying potential sales opportunities.\nAnd there is a new cohort of digital natives interested in purchasing a car. PYMNTS Intelligence in the April edition of the report \u201cWhy 60 Percent of Gen Z\u2019s Live Paycheck to Paycheck\u201c revealed that 11% of Generation Z consumers cited buying a car as their top financial goal.\nAs dealers and consumers alike embrace digital innovation across the automotive finance industry, the data-driven future of automotive financing might just help them reach it.\nThe post CarPutty Shifts Gears on How Consumers Finance Their Cars appeared first on PYMNTS.com.", "date_published": "2024-07-22T04:00:17-04:00", "date_modified": "2024-07-21T18:07:20-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/CarPutty-vehicle-financing.jpg", "tags": [ "auto financing", "Carputty", "Consumer Finance", "data analysis", "digital transformation", "Featured News", "Joshua Tatum", "News", "PYMNTS News", "pymnts tv", "transporation", "V3", "video" ] }, { "id": "https://www.pymnts.com/?p=2013727", "url": "https://www.pymnts.com/consumer-finance/2024/chinese-consumers-remain-cautious-investing-instead-of-spending/", "title": "Chinese Consumers Remain Cautious, Investing Instead of Spending", "content_html": "Chinese consumers are reportedly choosing\u00a0to repay debt and buy wealth management products, despite government efforts to get them to spend.
\nThe country\u2019s consumers put less money in the bank in June but didn\u2019t spend that money, Reuters reported Friday (July 19).
\n\u201cThe year-on-year decrease in excess savings growth has not yet translated into increased consumption,\u201d Tommy Xie, head of Greater China research at OCBC Bank, said in a note, per the report. \u201cThis may be related to households deleveraging by repaying loans early and shifting deposits to wealth management products.\u201d
\nThe Chinese government has tried to encourage consumers to spend rather than save by cutting deposit rates, according to the report.
\nHowever, risk-averse consumers have instead shifted their money from bank deposits to wealth management products, the report said.
\nConsumers are cautious because China has seen a downturn in property values, a fragile job market, weak social safety nets and higher household debt, per the report.
\nBloomberg reported in December that it surveyed 20 middle- to upper-class Chinese consumers and found that they were focusing on saving more money for the future, cutting back on non-essential spending and delaying major purchases such as homes or cars.
\nThe report said that even high earners in the country were concerned about their future job prospects at a time when China was suffering an economic downturn characterized by declining exports, a slowdown in manufacturing and a property slump.
\nDuring the second quarter, the country\u2019s\u00a0economic growth fell to its slowest pace in five quarters.
\nChina\u2019s gross domestic product (GDP) grew 4.7% during the quarter, lower than all but one of 28 estimates in a survey of economists, Bloomberg reported Monday (July 15).
\nIn addition, retail sales climbed at their slowest monthly pace in nearly two years, signaling that the government\u2019s efforts to bolster confidence haven\u2019t\u00a0had much impact on consumers.
\nFriday\u2019s report by Reuters quoted a note from analysts at\u00a0Maybank that said that getting Chinese consumers to spend more will require \u201cstructural solutions\u201d to the problems they face.
\n\u201cInstead of quick-fix stimulus, policymakers would need to address the root causes of consumers\u2019 risk-averse behavior and encourage them to spend their incomes,\u201d the analysts wrote.
\nThe post Chinese Consumers Remain Cautious, Investing Instead of Spending appeared first on PYMNTS.com.
\n", "content_text": "Chinese consumers are reportedly choosing\u00a0to repay debt and buy wealth management products, despite government efforts to get them to spend.\nThe country\u2019s consumers put less money in the bank in June but didn\u2019t spend that money, Reuters reported Friday (July 19).\n\u201cThe year-on-year decrease in excess savings growth has not yet translated into increased consumption,\u201d Tommy Xie, head of Greater China research at OCBC Bank, said in a note, per the report. \u201cThis may be related to households deleveraging by repaying loans early and shifting deposits to wealth management products.\u201d\nThe Chinese government has tried to encourage consumers to spend rather than save by cutting deposit rates, according to the report.\nHowever, risk-averse consumers have instead shifted their money from bank deposits to wealth management products, the report said.\nConsumers are cautious because China has seen a downturn in property values, a fragile job market, weak social safety nets and higher household debt, per the report.\nBloomberg reported in December that it surveyed 20 middle- to upper-class Chinese consumers and found that they were focusing on saving more money for the future, cutting back on non-essential spending and delaying major purchases such as homes or cars.\nThe report said that even high earners in the country were concerned about their future job prospects at a time when China was suffering an economic downturn characterized by declining exports, a slowdown in manufacturing and a property slump.\nDuring the second quarter, the country\u2019s\u00a0economic growth fell to its slowest pace in five quarters.\nChina\u2019s gross domestic product (GDP) grew 4.7% during the quarter, lower than all but one of 28 estimates in a survey of economists, Bloomberg reported Monday (July 15).\nIn addition, retail sales climbed at their slowest monthly pace in nearly two years, signaling that the government\u2019s efforts to bolster confidence haven\u2019t\u00a0had much impact on consumers.\nFriday\u2019s report by Reuters quoted a note from analysts at\u00a0Maybank that said that getting Chinese consumers to spend more will require \u201cstructural solutions\u201d to the problems they face.\n\u201cInstead of quick-fix stimulus, policymakers would need to address the root causes of consumers\u2019 risk-averse behavior and encourage them to spend their incomes,\u201d the analysts wrote.\nThe post Chinese Consumers Remain Cautious, Investing Instead of Spending appeared first on PYMNTS.com.", "date_published": "2024-07-19T12:49:00-04:00", "date_modified": "2024-07-19T12:49:00-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/China-consumer-finances-investing.jpg", "tags": [ "china", "consumer finances", "Consumer Spending", "economy", "News", "PYMNTS News", "Retail", "saving", "wealth managment", "What Is Investing?", "What's Hot", "Consumer Finance" ] }, { "id": "https://www.pymnts.com/?p=2011688", "url": "https://www.pymnts.com/consumer-finance/2024/june-retail-sales-were-flat-overall-but-big-ticket-items-saw-declines/", "title": "Big-Ticket Retail Sales Take Hit in June", "content_html": "A flat June reading for retail sales can be a tossup in terms of getting a sense of how the consumer is faring.
\nThe data released Tuesday (July 16) may have come in better than expected \u2014 economists had been looking for a month-over-month decline of 0.3% \u2014 but digging into the numbers reveals some pullback on big-ticket items. Other categories of discretionary spending got a lift \u2014 particularly online.
\nThe overall takeaway might be that coming fully into the summer months, the trends are mixed.
\nThe U.S. Census Bureau reported that non-store retailers \u2014 used, generally, as a proxy for eCommerce sales \u2014 were up 1.9% month on month.
\nAs to where the dips were, motor vehicles and related parts saw declines of around 2% month on month, and are down 2.2% from June 2023. And though spending on furnishings got a 0.6% bump in June versus May\u2019s levels, that category was still down 4%.
\nWe note that one key discretionary category, the sporting goods/hobby/books category, was 0.1% lower on the month, and is down 3.4% overall.
\nOn an unadjusted basis, retail sales came in at $606 billion, down 5.9% from May and down 0.4% from June of last year; the flat reading is seasonally adjusted and is in line with typical trends.
\nBut the pockets of resilience show, albeit muted in some respects. Might we expect that clothing and apparel would see some spending, given the fact that we\u2019re all getting out and about?
\nIn that segment, sales were up 0.6%, and are 4.3% higher than a year ago. In further underscoring of the movement towards in-person gatherings, Food Service and Drinking places saw sales climb 0.3% in June versus May\u2019s levels. Yet spending at grocery stores was flat during the month, indicating that consumers have allocated their \u201cfood dollars\u201d to be used in social settings.
\nConnect the dots, and we see a consumer that has possibly tuned up the car, bought the frisbees, loaded up on the beach reads \u2026 and as we just said, got out and about.
\nBut the pullback from the big-ticket items may be a bit more pronounced and a bit prolonged.\u00a0 As PYMNTS reported, Big Lots recorded lower-than-expected first-quarter fiscal 2024 financial results, attributing its 10.2% net sales decrease to a slide in spending on big-ticket items, including furniture.
\nSixty percent of respondents surveyed by PYMNTS Intelligence have scaled back on nonessential retail purchases due to price increases. And coming into the year, 62% of consumers reported being unlikely to make expensive purchases during the year (outside of gifts, clothing and accessories, vehicles, leisure travel and electronics or appliances).
\nThe chart below, as assembled by PYMNTS, shows just how heady the pace of inflation has been through the last several months and stretching back before the pandemic. Price increases for all retail items, as we calculated, has topped 24% since then.
\n
The post Big-Ticket Retail Sales Take Hit in June appeared first on PYMNTS.com.
\n", "content_text": "A flat June reading for retail sales can be a tossup in terms of getting a sense of how the consumer is faring.\nThe data released Tuesday (July 16) may have come in better than expected \u2014 economists had been looking for a month-over-month decline of 0.3% \u2014 but digging into the numbers reveals some pullback on big-ticket items. Other categories of discretionary spending got a lift \u2014 particularly online.\nThe overall takeaway might be that coming fully into the summer months, the trends are mixed.\nThe U.S. Census Bureau reported that non-store retailers \u2014 used, generally, as a proxy for eCommerce sales \u2014 were up 1.9% month on month.\nAs to where the dips were, motor vehicles and related parts saw declines of around 2% month on month, and are down 2.2% from June 2023. And though spending on furnishings got a 0.6% bump in June versus May\u2019s levels, that category was still down 4%.\nWe note that one key discretionary category, the sporting goods/hobby/books category, was 0.1% lower on the month, and is down 3.4% overall.\nOn an unadjusted basis, retail sales came in at $606 billion, down 5.9% from May and down 0.4% from June of last year; the flat reading is seasonally adjusted and is in line with typical trends.\nWhere the Spending Was\nBut the pockets of resilience show, albeit muted in some respects. Might we expect that clothing and apparel would see some spending, given the fact that we\u2019re all getting out and about?\nIn that segment, sales were up 0.6%, and are 4.3% higher than a year ago. In further underscoring of the movement towards in-person gatherings, Food Service and Drinking places saw sales climb 0.3% in June versus May\u2019s levels. Yet spending at grocery stores was flat during the month, indicating that consumers have allocated their \u201cfood dollars\u201d to be used in social settings.\nConnect the dots, and we see a consumer that has possibly tuned up the car, bought the frisbees, loaded up on the beach reads \u2026 and as we just said, got out and about.\nBut the pullback from the big-ticket items may be a bit more pronounced and a bit prolonged.\u00a0 As PYMNTS reported, Big Lots recorded lower-than-expected first-quarter fiscal 2024 financial results, attributing its 10.2% net sales decrease to a slide in spending on big-ticket items, including furniture.\nSixty percent of respondents surveyed by PYMNTS Intelligence have scaled back on nonessential retail purchases due to price increases. And coming into the year, 62% of consumers reported being unlikely to make expensive purchases during the year (outside of gifts, clothing and accessories, vehicles, leisure travel and electronics or appliances).\nThe chart below, as assembled by PYMNTS, shows just how heady the pace of inflation has been through the last several months and stretching back before the pandemic. Price increases for all retail items, as we calculated, has topped 24% since then.\n\nThe post Big-Ticket Retail Sales Take Hit in June appeared first on PYMNTS.com.", "date_published": "2024-07-16T12:50:19-04:00", "date_modified": "2024-07-16T21:40:01-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/03/retail-eCommerce-online-shopping.png", "tags": [ "apparel", "brick and mortar", "Commerce", "consumer finances", "consumer insights", "Consumer Spending", "ecommerce", "economy", "Featured News", "inflation", "News", "paycheck-to-paycheck", "PYMNTS News", "Retail", "U.S. Census Bureau", "Consumer Finance" ] }, { "id": "https://www.pymnts.com/?p=1972987", "url": "https://www.pymnts.com/consumer-finance/2024/revolving-credits-pace-surges-6-3-in-may-as-card-spending-continues/", "title": "Revolving Credit\u2019s Pace Surges 6.3% in May as Card Spending Continues", "content_html": "Consumers were not shy about loading up on the cards in May.
\nThe latest data from the Federal Reserve, released Monday (July 8), show that overall, consumer credit rose $11.3 billion in June, far outstripping the $6.5 billion gain on an absolute and annualized basis. That\u2019s a 2.7% annualized surge.\u00a0
\nBut revolving credit \u2014 which includes credit cards \u2014 notched a 6.3% annualized gain in the month, and now stands at $1.3 trillion. Non-revolving credit, tied to auto loans and student debt, gained 1.4% annualized.\u00a0
\nThe Fed\u2019s data noted that interest charged on credit card debt in May stood at a 21.5%, where that rate had been 15% before the pandemic. The revolving debt\u2019s held mostly by depositary institutions, at $1.1 trillion of the $1.3 trillion reported.
\nPYMNTS Intelligence data showed credit cards remain a key and preferred payment method, especially when it comes to everyday spending. Our research indicates that within the various categories of credit profiles, of the 43% of consumers who revolve their credit, 51% live paycheck to paycheck without issues paying their bills, while 65% of those with issues making ends meet do so.
\nWithin the category of \u201cnecessary financers,\u201d those consumers spend $92.64 on groceries with credit cards. The use of credit as a lifeline is underscored by the fact that, as we found, more than six in 10 U.S. consumers who earn below $50,000 annually have less than $500 on hand for medical emergencies.
\nThere may be some warning signs in the mix. As noted here, amid continued pressure on the paycheck-to-paycheck economy, more consumers are making only the minimum payments on their credit cards.
\nAccounts that are 30-plus days and 60-plus days past due have hit a high not seen in 11 years, according to fourth-quarter 2023 data from the Federal Reserve Bank of Philadelphia.
\nPYMNTS\u2019 Intelligence data from December indicated that 57% of credit cards are owned by paycheck-to-paycheck consumers. The same study found that 43% of consumers at least occasionally revolve their credit card balances, while 65% of struggling consumers do so, representing a rise from 59% seen at the end of 2022.\u00a0
\nForty-five percent of bridge millennials and nearly 41% of millennials revolve their balances. Nearly one in three Generation X borrowers reached their credit limits in the past year.\u00a0
\nPart of the May surge might be explained by travel-related spending, which may be corroborated by bank earnings later this week.\u00a0\u00a0
\nHeaded into the summer months, PYMNTS found that more than a third of consumers turned to credit products to manage their finances, while 21% of them used credit products as their top strategy.
\nPYMNTS Intelligence also found that 27% of consumers turn to credit cards when they are faced with unexpected expenses totaling $5,000 or more.
\nThe post Revolving Credit\u2019s Pace Surges 6.3% in May as Card Spending Continues appeared first on PYMNTS.com.
\n", "content_text": "Consumers were not shy about loading up on the cards in May.\nThe latest data from the Federal Reserve, released Monday (July 8), show that overall, consumer credit rose $11.3 billion in June, far outstripping the $6.5 billion gain on an absolute and annualized basis. That\u2019s a 2.7% annualized surge.\u00a0\nBut revolving credit \u2014 which includes credit cards \u2014 notched a 6.3% annualized gain in the month, and now stands at $1.3 trillion. Non-revolving credit, tied to auto loans and student debt, gained 1.4% annualized.\u00a0\nThe Fed\u2019s data noted that interest charged on credit card debt in May stood at a 21.5%, where that rate had been 15% before the pandemic. The revolving debt\u2019s held mostly by depositary institutions, at $1.1 trillion of the $1.3 trillion reported.\nPYMNTS Intelligence data showed credit cards remain a key and preferred payment method, especially when it comes to everyday spending. Our research indicates that within the various categories of credit profiles, of the 43% of consumers who revolve their credit, 51% live paycheck to paycheck without issues paying their bills, while 65% of those with issues making ends meet do so. \nWithin the category of \u201cnecessary financers,\u201d those consumers spend $92.64 on groceries with credit cards. The use of credit as a lifeline is underscored by the fact that, as we found, more than six in 10 U.S. consumers who earn below $50,000 annually have less than $500 on hand for medical emergencies.\nSome Warning Signs?\nThere may be some warning signs in the mix. As noted here, amid continued pressure on the paycheck-to-paycheck economy, more consumers are making only the minimum payments on their credit cards.\nAccounts that are 30-plus days and 60-plus days past due have hit a high not seen in 11 years, according to fourth-quarter 2023 data from the Federal Reserve Bank of Philadelphia. \nPYMNTS\u2019 Intelligence data from December indicated that 57% of credit cards are owned by paycheck-to-paycheck consumers. The same study found that 43% of consumers at least occasionally revolve their credit card balances, while 65% of struggling consumers do so, representing a rise from 59% seen at the end of 2022.\u00a0 \nForty-five percent of bridge millennials and nearly 41% of millennials revolve their balances. Nearly one in three Generation X borrowers reached their credit limits in the past year.\u00a0\nPart of the May surge might be explained by travel-related spending, which may be corroborated by bank earnings later this week.\u00a0\u00a0 \nHeaded into the summer months, PYMNTS found that more than a third of consumers turned to credit products to manage their finances, while 21% of them used credit products as their top strategy.\nPYMNTS Intelligence also found that 27% of consumers turn to credit cards when they are faced with unexpected expenses totaling $5,000 or more.\nThe post Revolving Credit\u2019s Pace Surges 6.3% in May as Card Spending Continues appeared first on PYMNTS.com.", "date_published": "2024-07-08T19:03:28-04:00", "date_modified": "2024-07-09T16:48:33-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/credit-cards-revolving-credit-payment-methods-personal-finances.png", "tags": [ "consumer finances", "consumer insights", "credit", "credit cards", "economy", "federal reserve", "News", "non-revolving credit", "paycheck-to-paycheck", "Payment Methods", "PYMNTS Intelligence", "PYMNTS News", "revolving credit", "Consumer Finance" ] }, { "id": "https://www.pymnts.com/?p=1972020", "url": "https://www.pymnts.com/consumer-finance/2024/23percent-grocery-shoppers-alienated-by-high-prices/", "title": "23% of Grocery Shoppers Alienated by High Prices", "content_html": "As grocery shoppers look to find the merchant best suited to their needs, a significant share of customers find themselves put off by higher-than-expected prices, threatening their loyalty.
\nThe PYMNTS Intelligence report \u201cThe Online Features Driving Consumers to Shop With Brands, Retailers or Marketplaces,\u201d created in collaboration with Adobe, drew from an October survey of more than 3,500 U.S. consumers to better understand their actions, choices and behaviors when they shop online.
\nThe study found that, among consumers who had purchased groceries in the previous month, 23% said that facing higher prices than other merchants was the top issue or challenge faced in the process. This share is greater than those who said the same in any other industry and greater than those who said the same of any other difficulty purchasing groceries.
\nMeanwhile, another 18% cited the crowds or lines as the top challenge they faced, 10% cited difficulties finding the products they wanted, and an additional 10% cited the limited selection of products.
\n![\"consumers,](\"https://www.pymnts.com/wp-content/uploads/2024/07/consumers-shopping-challenges-factors.png\")
Noting the tendency of high prices to alienate consumers and conversely the power of bargains in attracting them, retail giants Walmart and Amazon are competing to offer the lowest grocery prices.
\n\u201cWe have almost 7,000 (price) rollbacks. That\u2019s really helping. In our food categories, we see an even larger spread between eating at home, preparing meals at home, and eating out, which we think can help Walmart over the remainder of the year,\u201d Walmart CEO Doug McMillon told analysts on the company\u2019s most recent earnings call in May.
\nMeanwhile, also in the spring,\u00a0Amazon Fresh, the eCommerce behemoth\u2019s mass-market\u00a0grocery division, began rolling out discounts of up to 30% on 4,000 items. The PYMNTS Intelligence report \u201cWhole Paycheck Report: New Consumer Spend Data Finds Amazon Way Ahead of Walmart\u201d found that by the end of last year, Walmart captured 18.9% of food and beverage consumer spending, while Amazon increased its share to 2.9% from 2.6% in the previous quarter.
\nThe post 23% of Grocery Shoppers Alienated by High Prices appeared first on PYMNTS.com.
\n", "content_text": "As grocery shoppers look to find the merchant best suited to their needs, a significant share of customers find themselves put off by higher-than-expected prices, threatening their loyalty.\nBy the Numbers\nThe PYMNTS Intelligence report \u201cThe Online Features Driving Consumers to Shop With Brands, Retailers or Marketplaces,\u201d created in collaboration with Adobe, drew from an October survey of more than 3,500 U.S. consumers to better understand their actions, choices and behaviors when they shop online.\nThe study found that, among consumers who had purchased groceries in the previous month, 23% said that facing higher prices than other merchants was the top issue or challenge faced in the process. This share is greater than those who said the same in any other industry and greater than those who said the same of any other difficulty purchasing groceries.\nMeanwhile, another 18% cited the crowds or lines as the top challenge they faced, 10% cited difficulties finding the products they wanted, and an additional 10% cited the limited selection of products.\n\nThe Data in Context \nNoting the tendency of high prices to alienate consumers and conversely the power of bargains in attracting them, retail giants Walmart and Amazon are competing to offer the lowest grocery prices.\n\u201cWe have almost 7,000 (price) rollbacks. That\u2019s really helping. In our food categories, we see an even larger spread between eating at home, preparing meals at home, and eating out, which we think can help Walmart over the remainder of the year,\u201d Walmart CEO Doug McMillon told analysts on the company\u2019s most recent earnings call in May.\nMeanwhile, also in the spring,\u00a0Amazon Fresh, the eCommerce behemoth\u2019s mass-market\u00a0grocery division, began rolling out discounts of up to 30% on 4,000 items. The PYMNTS Intelligence report \u201cWhole Paycheck Report: New Consumer Spend Data Finds Amazon Way Ahead of Walmart\u201d found that by the end of last year, Walmart captured 18.9% of food and beverage consumer spending, while Amazon increased its share to 2.9% from 2.6% in the previous quarter.\nThe post 23% of Grocery Shoppers Alienated by High Prices appeared first on PYMNTS.com.", "date_published": "2024-07-05T17:13:41-04:00", "date_modified": "2024-07-05T17:13:41-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/grocery-prices-consumer-insights.jpg", "tags": [ "Amazon", "Amazon Fresh", "consumer finances", "discounts", "economy", "food and beverages", "grocery", "inflation", "News", "PYMNTS Intelligence", "PYMNTS News", "Retail", "The Online Features Driving Consumers to Shop With Brands Retailers or Marketplaces", "walmart", "Consumer Finance" ] }, { "id": "https://www.pymnts.com/?p=1970568", "url": "https://www.pymnts.com/consumer-finance/2024/trending-embedded-finance-performs-double-duty-as-sales-enablement-tool/", "title": "Trending: Embedded Finance Performs Double Duty as Sales Enablement Tool", "content_html": "It\u2019s a challenging time at retail \u2014 both online and in-store. Merchants are grappling with a volatile economy and the fact that consumers, in at least some cases, are reining in their spending.
\nMax Rieck, CFO at Versatile Credit; Chris Guido, head of TD Owned Brands, Sponsorships and Emerging Opportunities for TD Retail Card Services; and Chad Evans, VP of merchandising at AVB Marketing, told PYMNTSTV that embedded financing \u2014 and using partners to offer that financing \u2014 can help enterprises navigate, and even thrive, amid those choppy macro waters.
\nMany independent retailers, Evans said, are \u201cstretched pretty thin.\u201d\u00a0 These firms don\u2019t have the tech know-how, or budget, to shift fully toward new back-end and consumer-facing initiatives that can help boost top and bottom lines, including offering financing options at the point of sale.
\nEvans noted that his company operates as a proverbial \u201cone stop shop\u201d for enterprises technology and marketing needs.
\n\u201cThey can come to our organization,\u201d Evans said, \u201cand we can help them with their marketing, from video content to online catalogs \u2026 and layer in the technology that gives them solutions such as consumer financing, which makes the transactions easier [for consumers] and what keeps businesses profitable.\u201d\u00a0
\nOn that last point, to integrate that financing, AVB has partnered with TD and Versatile Credit to offer AVB Complete, its consumer financing program. That program leverages TD\u2019s omnichannel waterfall application processing platform \u2014 providing access to financing options from multiple lenders via TD Complete \u2014 which is in turn powered by Versatile Credit\u2019s financing solutions, connecting enterprise level merchants and financial institutions including TD.\u00a0
\n\u201cAt the end of the day,\u201d Guido said, \u201cthe financing program needs to be an extension of the business, and we need to be aligned to help grow the retailers\u2019 businesses.\u201d
\nAs Rieck said, \u201cWith embedded lending, we\u2019re meeting the merchant where they are,\u201d as those financing options can be integrated across customer relationship management (CRM) and point-of-sale systems and inventory management. Rieck said the expertise comes in an \u201coff the shelf\u201d manner that \u201callows merchants to be onboarded quickly into a lender stack that allows them to service consumers\u2019 needs\u201d across the prime, near prime and subprime credit spectrum.
\nObserved Evans of the partnership effort: \u201cIt cuts down on the friction between the retailers, the consumers, and in our case, the financing. \u2026 The retailers are definitely all in on\u201d embracing a platform that gives them options to cut down on those frictions.
\nBeyond improving consumer engagement, Rieck said, the platforms and partnerships give merchants visibility into who\u2019s buying what inside a store and online, and how they\u2019re using credit to do so.\u00a0 Companies with multiple locations can use granular, data-driven insights to determine how to fine-tune the performance of those locations.
\nIn addition, Evans said, the average ticket goes up, the customer keeps coming back, and they have a credit line with which they can walk back into a merchant, and AVB can set up lifecycle marketing.\u00a0 The smaller merchants have same \u201cability\u201d with embedded lending that the larger companies have.
\nAs Evans remarked to the panel, \u201cYou\u2019re reaching additional customers that you could not reach before, and customers are able to transact more efficiently because they\u2019re given more options.\u201d
\nAdded Rieck, \u201cEmbedded lending allows a relatively frictionless process \u2026 drive more sales and further drive the business.\u201d
\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
\nThe post Trending: Embedded Finance Performs Double Duty as Sales Enablement Tool appeared first on PYMNTS.com.
\n", "content_text": "It\u2019s a challenging time at retail \u2014 both online and in-store. Merchants are grappling with a volatile economy and the fact that consumers, in at least some cases, are reining in their spending.\nMax Rieck, CFO at Versatile Credit; Chris Guido, head of TD Owned Brands, Sponsorships and Emerging Opportunities for TD Retail Card Services; and Chad Evans, VP of merchandising at AVB Marketing, told PYMNTSTV that embedded financing \u2014 and using partners to offer that financing \u2014 can help enterprises navigate, and even thrive, amid those choppy macro waters.\nMany independent retailers, Evans said, are \u201cstretched pretty thin.\u201d\u00a0 These firms don\u2019t have the tech know-how, or budget, to shift fully toward new back-end and consumer-facing initiatives that can help boost top and bottom lines, including offering financing options at the point of sale. \nEvans noted that his company operates as a proverbial \u201cone stop shop\u201d for enterprises technology and marketing needs.\n\u201cThey can come to our organization,\u201d Evans said, \u201cand we can help them with their marketing, from video content to online catalogs \u2026 and layer in the technology that gives them solutions such as consumer financing, which makes the transactions easier [for consumers] and what keeps businesses profitable.\u201d\u00a0 \nBenefits of White-Labeling\nOn that last point, to integrate that financing, AVB has partnered with TD and Versatile Credit to offer AVB Complete, its consumer financing program. That program leverages TD\u2019s omnichannel waterfall application processing platform \u2014 providing access to financing options from multiple lenders via TD Complete \u2014 which is in turn powered by Versatile Credit\u2019s financing solutions, connecting enterprise level merchants and financial institutions including TD.\u00a0 \n\u201cAt the end of the day,\u201d Guido said, \u201cthe financing program needs to be an extension of the business, and we need to be aligned to help grow the retailers\u2019 businesses.\u201d\nAs Rieck said, \u201cWith embedded lending, we\u2019re meeting the merchant where they are,\u201d as those financing options can be integrated across customer relationship management (CRM) and point-of-sale systems and inventory management. Rieck said the expertise comes in an \u201coff the shelf\u201d manner that \u201callows merchants to be onboarded quickly into a lender stack that allows them to service consumers\u2019 needs\u201d across the prime, near prime and subprime credit spectrum.\nObserved Evans of the partnership effort: \u201cIt cuts down on the friction between the retailers, the consumers, and in our case, the financing. \u2026 The retailers are definitely all in on\u201d embracing a platform that gives them options to cut down on those frictions.\nBeyond improving consumer engagement, Rieck said, the platforms and partnerships give merchants visibility into who\u2019s buying what inside a store and online, and how they\u2019re using credit to do so.\u00a0 Companies with multiple locations can use granular, data-driven insights to determine how to fine-tune the performance of those locations.\nIn addition, Evans said, the average ticket goes up, the customer keeps coming back, and they have a credit line with which they can walk back into a merchant, and AVB can set up lifecycle marketing.\u00a0 The smaller merchants have same \u201cability\u201d with embedded lending that the larger companies have.\nAs Evans remarked to the panel, \u201cYou\u2019re reaching additional customers that you could not reach before, and customers are able to transact more efficiently because they\u2019re given more options.\u201d\nAdded Rieck, \u201cEmbedded lending allows a relatively frictionless process \u2026 drive more sales and further drive the business.\u201d\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.\nThe post Trending: Embedded Finance Performs Double Duty as Sales Enablement Tool appeared first on PYMNTS.com.", "date_published": "2024-07-03T04:03:41-04:00", "date_modified": "2024-07-02T22:13:27-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/SB1-embed-finance-image-TV-overlay.jpg", "tags": [ "AVB Complete", "AVB Marketing", "Chad Evans", "Chris Guido", "Consumer Finance", "embedded finance", "Featured News", "Max Rieck", "News", "partnerships", "PYMNTS News", "pymnts tv", "Retail", "td bank", "TD Complete", "TD Retail Card Services", "versatile credit", "video" ] }, { "id": "https://www.pymnts.com/?p=1969262", "url": "https://www.pymnts.com/consumer-finance/2024/white-house-pauses-student-loan-repayment-for-3-million-borrowers/", "title": "White House Pauses Student Loan Repayment for 3 Million Borrowers", "content_html": "The Department of Education is reportedly pausing repayments for around 3 million student loan borrowers.
\nThe pause comes as the White House defends its new repayment plan against a spate of GOP-backed lawsuits, CNBC reported Sunday (June 30). Enrollees in the Saving on a Valuable Education, or SAVE plan, and have a monthly payment above $0 will not owe anything for now, the Education Department told the network.
\nThe SAVE plan lets borrowers pay just 5% of their discretionary income to repay their student loans each month. People who make $32,800 or less have a $0 monthly payment. The program also expedites the timeline after which many borrowers\u2019 debts are fully canceled.
\nHowever, last week saw federal judges in Kansas and Missouri temporarily halt major parts of SAVE, after a group of Republican-led states filed suit arguing the White House was overstepping its authority and trying to find a way to forgive student debt after the Supreme Court blocked the Biden administration\u2019s efforts last year.
\nDespite the court ruling, the Department of Education has continued to cancel debt for borrowers, including another 160,000 last month: members of the SAVE plan, public service workers like teachers and nurses, or borrowers who were approved for relief because of fixes the department made to its Income-Driven Repayment program.
\nAlso in May, the government forgave $6.1 billion in loans for graduates of the Art Institutes, saying those people were misled by the now defunct chain of for-profit arts schools.
\nIn April, the administration announced a plan that would cancel the debt for 30 million borrowers, a group that includes people who owe more now than when they started repayments due to interest, borrowers who entered repayment 20 or more years ago, students who attended schools that \u201cfailed accountability measures or failed to provide enrollees with sufficient financial value,\u201d and borrowers dealing with financial hardships.
\nThese debt cancellation efforts come as consumers are facing increased pressures. As PYMNTS\u2019 Karen Webster wrote in a recent column \u2014 with a nod to PYMNTS Intelligence research, corroborated by government stats on retail sales and sentiment \u2014 \u201cthe other consumer spending shoe is starting to drop.\u201d\u00a0
\nTwo-thirds of consumers say they are trading down, while a little more than half of consumers are switching to cheaper merchants. PYMNTS has consistently chronicled that about 60% of American households live paycheck to paycheck.
\nThe post White House Pauses Student Loan Repayment for 3 Million Borrowers appeared first on PYMNTS.com.
\n", "content_text": "The Department of Education is reportedly pausing repayments for around 3 million student loan borrowers.\nThe pause comes as the White House defends its new repayment plan against a spate of GOP-backed lawsuits, CNBC reported Sunday (June 30). Enrollees in the Saving on a Valuable Education, or SAVE plan, and have a monthly payment above $0 will not owe anything for now, the Education Department told the network.\nThe SAVE plan lets borrowers pay just 5% of their discretionary income to repay their student loans each month. People who make $32,800 or less have a $0 monthly payment. The program also expedites the timeline after which many borrowers\u2019 debts are fully canceled.\nHowever, last week saw federal judges in Kansas and Missouri temporarily halt major parts of SAVE, after a group of Republican-led states filed suit arguing the White House was overstepping its authority and trying to find a way to forgive student debt after the Supreme Court blocked the Biden administration\u2019s efforts last year.\nDespite the court ruling, the Department of Education has continued to cancel debt for borrowers, including another 160,000 last month: members of the SAVE plan, public service workers like teachers and nurses, or borrowers who were approved for relief because of fixes the department made to its Income-Driven Repayment program.\nAlso in May, the government forgave $6.1 billion in loans for graduates of the Art Institutes, saying those people were misled by the now defunct chain of for-profit arts schools.\nIn April, the administration announced a plan that would cancel the debt for 30 million borrowers, a group that includes people who owe more now than when they started repayments due to interest, borrowers who entered repayment 20 or more years ago, students who attended schools that \u201cfailed accountability measures or failed to provide enrollees with sufficient financial value,\u201d and borrowers dealing with financial hardships.\nThese debt cancellation efforts come as consumers are facing increased pressures. As PYMNTS\u2019 Karen Webster wrote in a recent column \u2014 with a nod to PYMNTS Intelligence research, corroborated by government stats on retail sales and sentiment \u2014 \u201cthe other consumer spending shoe is starting to drop.\u201d\u00a0\nTwo-thirds of consumers say they are trading down, while a little more than half of consumers are switching to cheaper merchants. PYMNTS has consistently chronicled that about 60% of American households live paycheck to paycheck.\nThe post White House Pauses Student Loan Repayment for 3 Million Borrowers appeared first on PYMNTS.com.", "date_published": "2024-06-30T18:42:51-04:00", "date_modified": "2024-06-30T18:44:17-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/student-loan-forgiveness.jpg", "tags": [ "Consumer Finance", "debt cancellation", "Department of Education", "News", "PYMNTS News", "SAVE Program", "Saving on a Valuable Education", "Student Loan Forgiveness", "student loans", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=1968500", "url": "https://www.pymnts.com/consumer-finance/2024/65percent-of-financially-unstable-consumers-revolve-credit-card-payments/", "title": "Two-Thirds of Financially Stressed Consumers Revolve Their Credit Card Balances Each Month", "content_html": "As consumers look for ways to make ends meet, many of those who do not have a financial safety net are forced to carry their credit card balances over to future bills.
\n![\"consumers,](\"https://www.pymnts.com/wp-content/uploads/2024/06/consumers-revolving-credit.png\")
\u201cThe Credit Card Use Deep Dive Edition\u201d of the PYMNTS Intelligence series \u201cNew Reality Check: The Paycheck-to-Paycheck Report\u201d draws from a survey of more than 3,200 United States consumers, aiming to better understand their financial lifestyles and to gain insight into how they use credit cards to manage their cash flows to get by.\u00a0
\nThe results reveal that the majority consumers who do not have financial safety nets to fall back on are left to revolve their credit card balances. As of November, 43% of the population said that they at least occasionally do so. That share rises to 65% for those who live paycheck to paycheck with issues paying off their bills and to 51% for those who live paycheck to paycheck but without issues paying their bills.
\nMeanwhile, for those with more financial reserves to draw on, only 23% said they at least occasionally revolve their credit card payments.
\nOf course, consumers want to pay off their debt. The\u00a0Federal Reserve\u2019s latest report on consumer credit, released earlier this month, indicated signs that consumers might be pulling back on spending and prioritizing paying down card debt.
\nThe outstanding revolving debt, which includes credit card balances, declined at an annualized rate of 0.4% in April. Earlier in the year, the rate had been markedly positive, exceeding 10%, but it slowed to around 1.5% annualized in March.
\nPYMNTS Intelligence\u2019s \u201cThe Paycheck-to-Paycheck Report: Why 60 Percent of Gen Z\u2019s Live Paycheck to Paycheck\u201d\u00a0found that 15% of Generation Z consumers said repaying debt is a priority, as did 22% of baby boomers, 23% of Generation X consumers, 20% of bridge millennials and millennials, and nearly 19% of zillennials.
\nThe post Two-Thirds of Financially Stressed Consumers Revolve Their Credit Card Balances Each Month appeared first on PYMNTS.com.
\n", "content_text": "As consumers look for ways to make ends meet, many of those who do not have a financial safety net are forced to carry their credit card balances over to future bills. \nBy the Numbers\n\n\u201cThe Credit Card Use Deep Dive Edition\u201d of the PYMNTS Intelligence series \u201cNew Reality Check: The Paycheck-to-Paycheck Report\u201d draws from a survey of more than 3,200 United States consumers, aiming to better understand their financial lifestyles and to gain insight into how they use credit cards to manage their cash flows to get by.\u00a0\nThe results reveal that the majority consumers who do not have financial safety nets to fall back on are left to revolve their credit card balances. As of November, 43% of the population said that they at least occasionally do so. That share rises to 65% for those who live paycheck to paycheck with issues paying off their bills and to 51% for those who live paycheck to paycheck but without issues paying their bills.\nMeanwhile, for those with more financial reserves to draw on, only 23% said they at least occasionally revolve their credit card payments. \nThe Data in Context\nOf course, consumers want to pay off their debt. The\u00a0Federal Reserve\u2019s latest report on consumer credit, released earlier this month, indicated signs that consumers might be pulling back on spending and prioritizing paying down card debt. \nThe outstanding revolving debt, which includes credit card balances, declined at an annualized rate of 0.4% in April. Earlier in the year, the rate had been markedly positive, exceeding 10%, but it slowed to around 1.5% annualized in March.\nPYMNTS Intelligence\u2019s \u201cThe Paycheck-to-Paycheck Report: Why 60 Percent of Gen Z\u2019s Live Paycheck to Paycheck\u201d\u00a0found that 15% of Generation Z consumers said repaying debt is a priority, as did 22% of baby boomers, 23% of Generation X consumers, 20% of bridge millennials and millennials, and nearly 19% of zillennials.\nThe post Two-Thirds of Financially Stressed Consumers Revolve Their Credit Card Balances Each Month appeared first on PYMNTS.com.", "date_published": "2024-06-27T17:05:38-04:00", "date_modified": "2024-06-27T20:50:55-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/consumer-finance-revolving-credit.jpg", "tags": [ "consumer finances", "credit", "credit cards", "debt", "Featured News", "New Reality Check: The Paycheck-To-Paycheck Report", "News", "paycheck-to-paycheck", "PYMNTS Intelligence", "PYMNTS News", "revolving credit", "revolving payments", "The Credit Card Use Deep Dive Edition", "Consumer Finance" ] }, { "id": "https://www.pymnts.com/?p=1966927", "url": "https://www.pymnts.com/consumer-finance/2024/exclusive-synchrony-expands-second-look-partnership-with-atlanticus/", "title": "Exclusive: Synchrony Expands \u2018Second Look\u2019 Partnership With Atlanticus", "content_html": "Synchrony Financial and Atlanticus Holdings announced an expansion of their existing partnership Wednesday (June 26) creating a new multiyear agreement that aims to broaden financing options for consumers and merchants.
\nAtlanticus \u2014 parent company of the Fortiva brand \u2014 becomes the preferred provider of second-look financing for Synchrony\u2019s private label credit cards and installment loan products.
\nFlorin Arghirescu, senior vice president and chief product officer at Synchrony, told PYMNTS that the \u201cenhanced\u201d partnership is strategically important to his company, emphasizing the necessity of considering all three key parts of Synchrony\u2019s ecosystem when developing solutions: partner banks, consumers and merchants.
\n\u201cGiven Synchrony\u2019s position in the market, with over 71 million active customers and 460,000 merchant locations, we have to look at solutions from both a consumer perspective and a merchant side,\u201d Arghirescu said. \u201cWe were doing this well, but there was room for improvement to do this great.\u201d
\nThe decision to deepen the partnership with Atlanticus was driven by extensive market research and merchant feedback. Arghirescu said Synchrony recently surveyed its merchant base and found a need for what he called multisource financing.
\n\u201cWhat we learned is that our merchants really wanted Synchrony to provide an integrated program because it helps from both a merchant onboarding and underwriting perspective, as well as for a seamless consumer application or overall experience,\u201d he said.
\nA key aspect of the expanded partnership is the streamlined enrollment process for both merchants and consumers. For merchants, Arghirescu described the integration as \u201cturnkey,\u201d eliminating the need for separate underwriting and integration processes when working with a secondary lender. For example, if Synchrony signed up with a specific merchant, Atlanticus and its brands will be integrated into the overall ecosystem.
\nOn the consumer side, Arghirescu emphasized a \u201cfully integrated experience that starts with one app,\u201d including features like mobile wallet provisioning and QR code presentation. This seamless integration aims to enhance the customer experience and simplify the application process.
\nThe partnership aligns closely with Synchrony\u2019s broader strategy of offering diverse payment solutions and expanding its product suite. Arghirescu highlighted the company\u2019s focus on \u201cunique experiences and relentless innovation\u201d in how it displays its products, emphasizing omnichannel and digital capabilities.
\nA important component of this strategy is Synchrony\u2019s commitment to installment loans and pay later options. \u201cWe continue to scale our pay later product, which is the Synchrony installment product. This really broadens the utility of our products,\u201d Arghirescu said. He stressed Synchrony\u2019s belief in the \u201cpower of choice,\u201d offering installment products alongside traditional credit options to cater to diverse consumer needs.
\nArghirescu also discussed recent innovations in product presentation, including a multiproduct prequalification process that presents consumers with options based on the products they qualify for. \u201cWe do see the buy now, pay later or installment product adjacent to our core products to be very powerful,\u201d he added.
\nWhile the expanded partnership aims to serve consumers with thin credit files or those new to credit, Arghirescu was quick to clarify that it\u2019s not necessarily indicative of broader economic conditions.
\n\u201cThe consumer is still very, very strong,\u201d he stated, emphasizing that the partnership is more about providing credit utility to specific segments of the population, particularly those looking to build credit.
\nThe collaboration is expected to benefit a wide range of Synchrony merchants, including small businesses, healthcare providers and retail partners. By offering a preferred second-look financing solution under the Fortiva brand, which includes general purpose and private label credit cards as well as installment loans, the partnership aims to help merchants grow by providing responsible financing solutions to a broader customer base.
\nFor consumers who may not qualify for initial credit offers from Synchrony, the partnership provides an opportunity to receive instant second-look offers through Atlanticus\u2019 program. Arghirescu said this approach aligns with Synchrony\u2019s commitment to financial inclusion and responsible lending practices.
\nDavid Caruso, chief commercial officer at Atlanticus, expressed satisfaction with the deepened partnership, saying, \u201cThis collaboration enhances our ability to provide inclusive financial solutions, helping our merchant partners serve more customers effectively.\u201d
\nThe partnership also includes a provision for customers who demonstrate responsible usage and repayment behavior to potentially graduate to Synchrony credit products over time, further emphasizing the companies\u2019 commitment to helping consumers build and improve their credit profiles. The collaboration is expected to not only increase Synchrony\u2019s customer base but also provide Atlanticus with access to Synchrony\u2019s extensive merchant network.
\nThe post Exclusive: Synchrony Expands \u2018Second Look\u2019 Partnership With Atlanticus appeared first on PYMNTS.com.
\n", "content_text": "Synchrony Financial and Atlanticus Holdings announced an expansion of their existing partnership Wednesday (June 26) creating a new multiyear agreement that aims to broaden financing options for consumers and merchants.\nAtlanticus \u2014 parent company of the Fortiva brand \u2014 becomes the preferred provider of second-look financing for Synchrony\u2019s private label credit cards and installment loan products.\nFlorin Arghirescu, senior vice president and chief product officer at Synchrony, told PYMNTS that the \u201cenhanced\u201d partnership is strategically important to his company, emphasizing the necessity of considering all three key parts of Synchrony\u2019s ecosystem when developing solutions: partner banks, consumers and merchants.\n\u201cGiven Synchrony\u2019s position in the market, with over 71 million active customers and 460,000 merchant locations, we have to look at solutions from both a consumer perspective and a merchant side,\u201d Arghirescu said. \u201cWe were doing this well, but there was room for improvement to do this great.\u201d\nThe decision to deepen the partnership with Atlanticus was driven by extensive market research and merchant feedback. Arghirescu said Synchrony recently surveyed its merchant base and found a need for what he called multisource financing.\n\u201cWhat we learned is that our merchants really wanted Synchrony to provide an integrated program because it helps from both a merchant onboarding and underwriting perspective, as well as for a seamless consumer application or overall experience,\u201d he said.\nA key aspect of the expanded partnership is the streamlined enrollment process for both merchants and consumers. For merchants, Arghirescu described the integration as \u201cturnkey,\u201d eliminating the need for separate underwriting and integration processes when working with a secondary lender. For example, if Synchrony signed up with a specific merchant, Atlanticus and its brands will be integrated into the overall ecosystem.\nOn the consumer side, Arghirescu emphasized a \u201cfully integrated experience that starts with one app,\u201d including features like mobile wallet provisioning and QR code presentation. This seamless integration aims to enhance the customer experience and simplify the application process.\nStrategic Partnerships\nThe partnership aligns closely with Synchrony\u2019s broader strategy of offering diverse payment solutions and expanding its product suite. Arghirescu highlighted the company\u2019s focus on \u201cunique experiences and relentless innovation\u201d in how it displays its products, emphasizing omnichannel and digital capabilities.\nA important component of this strategy is Synchrony\u2019s commitment to installment loans and pay later options. \u201cWe continue to scale our pay later product, which is the Synchrony installment product. This really broadens the utility of our products,\u201d Arghirescu said. He stressed Synchrony\u2019s belief in the \u201cpower of choice,\u201d offering installment products alongside traditional credit options to cater to diverse consumer needs.\nArghirescu also discussed recent innovations in product presentation, including a multiproduct prequalification process that presents consumers with options based on the products they qualify for. \u201cWe do see the buy now, pay later or installment product adjacent to our core products to be very powerful,\u201d he added.\nWhile the expanded partnership aims to serve consumers with thin credit files or those new to credit, Arghirescu was quick to clarify that it\u2019s not necessarily indicative of broader economic conditions.\n\u201cThe consumer is still very, very strong,\u201d he stated, emphasizing that the partnership is more about providing credit utility to specific segments of the population, particularly those looking to build credit.\nThe collaboration is expected to benefit a wide range of Synchrony merchants, including small businesses, healthcare providers and retail partners. By offering a preferred second-look financing solution under the Fortiva brand, which includes general purpose and private label credit cards as well as installment loans, the partnership aims to help merchants grow by providing responsible financing solutions to a broader customer base.\nFor consumers who may not qualify for initial credit offers from Synchrony, the partnership provides an opportunity to receive instant second-look offers through Atlanticus\u2019 program. Arghirescu said this approach aligns with Synchrony\u2019s commitment to financial inclusion and responsible lending practices.\nDavid Caruso, chief commercial officer at Atlanticus, expressed satisfaction with the deepened partnership, saying, \u201cThis collaboration enhances our ability to provide inclusive financial solutions, helping our merchant partners serve more customers effectively.\u201d\nThe partnership also includes a provision for customers who demonstrate responsible usage and repayment behavior to potentially graduate to Synchrony credit products over time, further emphasizing the companies\u2019 commitment to helping consumers build and improve their credit profiles. The collaboration is expected to not only increase Synchrony\u2019s customer base but also provide Atlanticus with access to Synchrony\u2019s extensive merchant network.\nThe post Exclusive: Synchrony Expands \u2018Second Look\u2019 Partnership With Atlanticus appeared first on PYMNTS.com.", "date_published": "2024-06-26T07:00:49-04:00", "date_modified": "2024-06-26T09:06:24-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/Synchrony-Atlanticus-deal.jpg", "tags": [ "Atlanticus", "consumer credit", "Consumer Finance", "Featured News", "Florian Arghirescu", "Fortiva", "News", "partnerships", "PYMNTS News", "synchrony" ] } ] }