Interest rates are rising, and this has been – and will continue to be – the biggest influencer of credit card activity for the coming year. Here are a few credit card trend predictions our industry experts are making for the remaining fiscal quarters.
Mobile payments will outpace direct credit card use.
Mobile payments – the use of a banking app on a smartphone or tablet to pay for goods and services in-store – are becoming increasingly common, and may become ubiquitous by the end of 2018. Previous concerns, namely about security, are being addressed as providers adopt effective measures to prevent fraud and identity theft.
Issuers will offer customized rewards programs.
Rewards programs – like the American Express Uber credit, Capital One’s Spotify Premium subscription deal, and Discover’s in-flight WiFi credit – are being tailored to user lifestyles, making benefits more tangible to the Millennial and Post-Millennial generation.
Delinquencies will increase.
The increasing cost of maintaining a credit card balance combined with relaxed credit availability will lead to an increase in delinquencies. While the delinquent rate won’t reach the highs seen during the Great Recession, past-due balances are predicted to rise to nearly 2 percent.
Credit card debt can be an oppressive burden, but Americor Financial offers debt consolidation solutions that will give you control of your finances, and your future.
No comments:
Post a Comment