Meta allows Amazon shoppers to buy products on Facebook and Instagram without leaving the apps
Meta doesn’t want you to give up its popular mobile apps when you make that impulse buy from Amazon. The company debuted a new feature that lets users link their Facebook and Instagram accounts to Amazon so they can buy products by clicking on offers in their feeds. Meta is looking for new ways to boost ad revenue after Apple’s iOS privacy changes in 2021 made it harder for social media companies to target users. The update was a major blow to Meta’s business and, along with a brutal digital ad market, sent the stock down 64% last year. But after three straight quarters of declining revenue, the business has bounced back this year, sending the stock up more than 160%. Meta has pointed to its massive investments in artificial intelligence as a key technology that has helped it attract retailers looking to serve up targeted promotions to customers. [CNBC]
Meta will allow Amazon shoppers to buy products on Facebook and Instagram without leaving the apps
Holiday shopping may be down this year, but who’s to blame: Inflation or declining in-store experiences?
If all you’re planning on giving for the holidays this season is some quality time, you might not be alone. According to a new survey, 17% of consumers surveyed are “optimistic” about their financial situation, while 60% have already started to “cut back on gifts”. In addition, 52% of respondents plan not to exchange gifts with other adults, good news for young people. And 63% of respondents are cutting back on holiday decorations, including holiday lights, while 58% said they plan to cut back on holiday cooking, bad news for many. [The Grio]
Millennials struggle with credit card debt
Credit card debt rose again during the third quarter and so did the number of people who missed payments. Credit card balances rose $48 billion in the third quarter to a record $1.08 trillion, according to data released Tuesday by the Federal Reserve Bank of New York. The $154 billion year-over-year debt gain was the largest such increase since the series began in 1999. At the same time, a measure of the 90-day delinquency rate for credit cardholders rose to 5.78%, from 3.69% a year earlier . While the rising delinquencies spanned incomes and regions, they were particularly pronounced among millennials and those with auto or student loans. [Yahoo Finance]
Hamas funding brings cryptocurrencies to the attention of regulators
The deputy secretary of the Treasury and the chairman of the Commodity Futures Trading Commission both identified the “illegal financial use of digital assets” as a source of great concern, including the funding of Hamas. Treasury Undersecretary Wally Adeyemo said cryptocurrencies are being used to finance Hamas and a wide range of other illegal activities, such as ransomware attacks. Adeyemo said the Ministry of Finance would “take steps to move forward after this”. [Plan Adviser]
35% of the largest SMBs use corporate credit cards to finance growth initiatives
Whether driving innovation or creating employment opportunities, small and medium-sized enterprises (SMEs) play a vital role in the economy. However, a major obstacle stands in their way: access to credit. SMEs are grappling with the challenge of securing the necessary funding to survive, a challenge that is further intensified in today’s uncertain macroeconomic landscape. Only 47% of SMEs with annual revenue of $10 million or less had access to business or personal financing as of July 2023, making them vulnerable to economic uncertainties. Business credit cards stand out as the preferred option for 52% of SMEs looking for alternative financing, beating options such as business loans from online lenders (22%) or working capital loans from banks (21%). [PYMNTS]
Goldman Moves to Unload GM Credit Card
Goldman Sachs plans to begin a process to offload General Motors GM’s credit card program in another step away from its failed foray into consumer lending. The bank on Tuesday informed a group of platform solutions employees working on the GM card that a process to find a new issuer would soon begin, people familiar with the matter said. GM is expected to run the process. The credit card program is largely aimed at people who buy and own General Motors cars. Goldman is also the issuer of the Apple credit card, which is much larger. [The Wall Street Journal]
Citigroup will pay $25.9 million to target Armenian-American card applicants
Citigroup has agreed to pay $25.9 million to settle charges by the U.S. Consumer Financial Protection Bureau that it intentionally discriminated against credit card applicants the bank identified as Armenian-American based on their last names. The regulator said Wednesday that from 2015 to 2021, Citigroup managers trained employees to stereotype applicants suspected of being of Armenian descent because their last names ended in “ian” and “yan,” believing they were likely to commit fraud. [Reuters]
Affirm’s debit card sees 75,000 signups per month
Affirm Holding’s fiscal first quarter results showed resilient consumer spending across channels and enthusiasm for the company’s debit card offering. Management noted that up to 75,000 consumers per month sign up for the Affirm Card GMV debit card. The card allows consumers to pay for their purchases over time or all at once. More than 400,000 cards were active at the end of September. [PYMNTS]
United Airlines is tweaking its frequent flyer program to reward credit card spending
United Airlines plans to make it easier for customers to earn elite status through its Chase co-branded credit cards, the latest airline to tweak its lucrative frequent flyer program to reward big spenders. United said that in 2024, it will reward customers with 25 eligibility points for every $500 they spend on co-branded cards. Currently, customers receive 500 points for every $12,000 they spend. The carrier will also lift caps on credit card spending that can qualify for elite status. Travelers need 5,000 eligibility points plus four flights to reach silver status, the lowest tier, or have a combination of flights and points. [CNBC]
Capital One Faces Lawsuit From Savers Left Behind Amid Rate Hikes
Capital One Financial is being sued by savers who say they were tricked into thinking they were earning the highest interest rate available from the company’s online banking arm. Plaintiffs in a lawsuit seeking class-action status allege the bank acted deceptively, dishonestly and unfairly by creating a new high-yield account instead of increasing the interest rates it paid on its long-standing “360 Savings” account. Existing 360 Savings customers looking for juicier returns in the current higher interest rate environment should open a “360 Performance Savings” account, according to the lawsuit. [American Banker]
American Express Business Checking is now available to all US small businesses
American Express Business Checking is now available to all US small businesses that meet certain requirements. Previously, Business Checking was only available to American Express cardholders. Most US businesses are eligible, but nonprofits, money-lending businesses, and businesses involved in cryptocurrency, online gambling, or marijuana are not eligible. Current and former American Express Rewards Checking account holders are also ineligible to apply. [Forbes]
Maximize your purchases with Bank of America’s More Rewards Day offer
Bank of America is holding its second annual More Rewards Day event, offering cardholders the chance to earn bonus rewards on their purchases, just in time for the holiday season. On November 9, 2023, all personal and small business cardholders will have the opportunity to earn 2% cash back (up to a maximum of $50) or two points or two miles per $1 on the first $2,500 in eligible purchases. [CNBC]
