PYMNTS AM Radar: credit card debt; BNPL Loyalty

Today is Friday, June 10, and the banks are happy that people are finally using credit cards again and letting the balances accrue interest. But with record inflation, gas at $5 a gallon, and sky-high prices for food, housing, and just about everything, it could come back to haunt them. Federal prosecutors are opening a criminal investigation into Wells Fargo, alleging the bank violated anti-discrimination laws by claiming to interview minority applicants.

New jobless claims exceeded pre-pandemic levels for the first time since January, the Bureau of Labor Statistics reported, and the Consumer Price Index report, released today, is expected to rise by 0.7% month-over-month for May. Here’s what should be on your radar this morning.

Credit card debt. Consumers are increasingly letting go of their credit card debt after paying off $83 billion during the pandemic. Although it is a good source of income for banks, the state of the economy could make it a risky business for consumers and bankers. READ MORE

Payments Innovation. Food journalist, author and CEO of Food52 Amanda Hesser told PYMNTS in “Digital Payments Flip the Script: 10 Merchants and 10 Visions for Digital Transformation” that the company needed to build its platform to process payments because at the At the time, there wasn’t everything available to “create the kind of organized drop-shipping model that we have.” READ MORE

BNPL Loyalty. Buy now, pay later Sales volume reached $181 billion this year. But despite the popularity with consumers and the growing number of retailers offering expensive deals, consumers may be passing rather than loyal. In the latest edition of the Buy Now, Pay Later Tracker®, PYMNTS explores the impact of BNPL offers on consumer payment preferences, trust and loyalty. READ MORE

social commerce. WooCommerce has partnered with TikTok to give its merchants a way to engage with users and make sales as potential customers through entertaining snippets about just about everything. WooCommerce CEO Paul Maiorana told PYMNTS CEO Karen Webster that when he’s on TikTok he doesn’t intend to make a purchase, but often does. READ MORE

ICYMI. Amazon wants shoppers to avoid going to the physical shoe store and instead use its virtual try-on tool. The artificial intelligence (AI)-based innovation is an interactive mobile experience that lets people see what shoes look like from all angles. However, the tool does not let people know how the shoes will feel. READ MORE

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NEW PYMNTS DATA: THE CUSTOM PURCHASING EXPERIENCE STUDY – MAY 2022

About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

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