New AI tool tackles payment fraud

PayPal and Venmo launch small business payment app Tap

PayPal announced the introduction of Tap to Pay technology for its Venmo and PayPal Zettle businesses in the United States. Small businesses can now accept contactless payments – including cards and digital wallets – directly on their mobile devices without the need for additional hardware or upfront costs. According to PayPal, nearly 80% of buyers have used contactless payments to make a purchase. However, until now, small businesses have had to invest in contactless point-of-sale systems, as well as manage card readers to accommodate consumers. [Payments Journal]

Mastercard AI helps UK banks tackle payment fraud in real time

Mastercard is leveraging its AI capabilities to help a group of UK banks anticipate and prevent payment fraud in real time. The payments giant has launched its Consumer Fraud Risk technology in the country, using extensive payments data to help identify frauds before money leaves a victim’s account. The tool is based on insights from Mastercard’s work with British banks to track the flow of money mule accounts over the past few years. Overlaying this information with specific analytics factors — such as account names, payment values, payer and payee history, and payee links to accounts linked to fraud — helps provide banks with the intelligence to intervene in real time and stop a payment before funds are lost.[Finextra]

Medical credit cards are under scrutiny for potential regulations

The Biden administration indicates that it may target credit cards and other loan products designed for medical bills with the new regulations. The CFPB, the Department of Health and Human Services, and the Treasury Department said Friday that they have launched a request for information about Medicare credit cards and installment loans. As part of the broad inquiry, regulators will look at the interest rates, fees, and collection practices associated with medical credit cards, as well as any incentives offered to healthcare providers who promote such products. [The Wall Street Journal]

Credit card market share statistics

At the end of 2021, Visa’s market share was the largest, at around 48%, based on the number of credit cards in circulation (753 million), followed by Mastercard’s market share at around 36%. Discover and American Express together captured about 16% of the credit card market (at about 8% and 7.5%, respectively). The 10 largest card issuers hold about 82 percent of credit card balances outstanding in 2021, according to the Profitability of Credit Card Deposits at the Federal Reserve. Chase had the highest market share on this basis (17.9%), followed by Amex (13.3%), Citi (12.4%) and Capital One (11.4%). [Bankrate]

The CFPB report shows that late fees are not a major complaint for some reason

The Consumer Financial Protection Bureau’s report on consumer complaints mentions few credit card late fees as a major concern for consumers, and some experts say that may be because banks often forgive first-time late fees if customers request them. Experts warn that this dynamic could change if the bureau’s proposal to cut late fees to $8 goes into effect. Rohit Chopra, director of the CFPB, is betting his tenure at the agency on a radical plan to eliminate $9 billion a year in consumer costs by slashing credit card late fees to just $8, down from the current first-time cap of $30. [American Banker]

Wall Street’s new hot couple: J.D. Vance and Elizabeth Warren

Sen. J.D. Vance, a former venture capitalist supporting Trump, is trying to lead Republicans on a new cause: cracking down on big banks. The Ohio legislator is using a seat on the Banking Committee to show his populist goodwill, collaborating with Democrats including Sens. Elizabeth Warren of Massachusetts and Dick Durbin of Illinois on bills despised by the industry’s biggest players, while championing legislation that protects smaller banks. He’s pioneering bipartisan proposals that would punish bank executives when their companies fail, make it harder for giant lenders to get bigger by acquiring other banks and curb credit card fees. Along the way, he’s had some success recruiting fellow Republicans to the cause, creating a new headache for lobbyists at big banks, who are preparing to fight Vance-backed policies. [Politico]

Confirm the shutter return

The Buy now, pay later provider Affirm said Thursday that it will divest its Returnly unit, a returns payment platform it acquired two years ago. “Sunset” for that platform will happen in early October. Affirm bought Returnly for $300 million in June 2021. An Affirm spokesperson said the company did not sell Returnly and declined to comment on whether Affirm would divest the business. Instead, Affirm is now stepping up its business with another returns management company, entering into a strategic partnership with Loop Returns. [Payments Dive]

Significant rises in mobile banking with Brazilian transactions nearly 80% digital

A new survey shows that 77% of all banking transactions conducted in Brazil last year, driven by a surge in mobile phone operations, were via digital channels such as smartphones or computers. Transactions include financial transactions such as paying bills and non-financial transactions such as checking balance. According to the survey, mobile phones were responsible for 66% of all transactions last year. [bnamericas]

Citi renews the Citi Diamond Preferred Card

Citi has basically enhanced its offering platform called My Deals, which was previously known as Citi Easy Deals. Citi Diamond Preferred Cardmembers can now access My Deals on the Citi mobile app and Citi Online for national and local coupons and discounts across different experiences, offered according to Cardmember locations. Citi Online is the bank’s online gateway to customer accounts, where Cardmembers can go to make their monthly payments, redeem rewards and monitor all their Citi accounts in one place. Savings Spotlight, a tracker that enables Citi Diamond Preferred Card members to see their total savings from interest rates and My Deals offers, is available on the Citi mobile app and Citi Online in the new upgrade. [Tearsheet]

Three out of four mobile gamers make in-app purchases within two weeks

In app purchases have become a mainstay of the mobile gaming market due to the fact that this is something that can end up generating a lot more income than it would have otherwise. It turns out that up to 77% of users who regularly play mobile games make in-app purchases within just two weeks of downloading the respective app. If a user hasn’t already made a purchase after the two weeks have passed, they probably won’t make the purchase in the long run. [Digital Information World]

Here’s how to score a free $5 Amazon credit before Prime Day

From now until July 10th, Prime members can get an additional $5 Amazon credit when they purchase a physical Amazon Gift Card or Amazon eGift Card of at least $50. This $5 credit has one condition: It must be spent during the Amazon Prime Day sale July 11-12, or you’ll lose your “free” Amazon money. [Yahoo Finance]