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Data for today’s episode is provided by Mercator Advisory Group’s Report: 2021 North American PaymentsInsights: U.S. COVID-19 Update and GPR Prepaid Cards Update
Credit Card Line Decreases & The Impact of COVID-19:
- 28% of surveyed consumers indicated that they have had a decrease in their credit lines since the start of the pandemic.
- Close to half of those consumers reported that the decrease was due to missed payments.
- 11% of consumers reported a decrease in their credit card line since the pandemic began due to missed payments.
- 11% of consumers reported a decrease in their credit card line since the pandemic began due to other reasons.
- 6% of consumers reported a decrease in their credit card line since the pandemic began but don’t know the decrease occurred.
Mercator Advisory Group’s most recent report, 2021 North American PaymentsInsights: U.S. COVID-19 Update and GPR Prepaid Cards Update, summarizes the effects of COVID-19 on the payments industry: how the market reacted to the pandemic, what impact it had on the payments industry, and its effect on credit card payments. In addition to providing insights into the state of the payments industry during the pandemic, the report also showcases data on general-purpose reloadable (GPR) cards: what consumers think about prepaid cards and which incentives make consumers more inclined towards certain types of these cards.
The report is based on the North American PaymentsInsights survey administered between August 27 and September 14, 2021, across a representative sample of 3000 consumers ages 18 years or older in the U.S. and 1000 consumers ages 18 years or older in Canada.“Through the survey data, we have seen some interesting influences of COVID on the increased consumer use of online and mobile banking in comparison to the use of ATMs.” stated Pragya Khanal, an analyst working on the report.