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Data for today’s episode is provided by Mercator Advisory Group’s Report: Credit Card as a Service: Vendors You Need to Know
Credit Purchases and Revolving Debt Declined in 2020:
- During the height of the pandemic in Q2 2020, we observed the most significant decline in credit card purchase transactions in recent years.
- Using stimulus money from the CARES Act, consumers paid down their credit card debt.
- This caused revolving debt to decline by 10.7%.
- Furthermore, open credit card accounts decreased for the first time in several years.
- The decline in credit card use forced issuers to rethink their product set and enhance their offerings to engage consumers and encourage credit card usage.
About Report
Mercator Advisory Group released a report covering vendors in the emerging Credit Card as a Service (CCaaS) market, titled Credit Card as a Service: Vendors You Need to Know. The research explains the current credit market and forecast, discusses the latest in credit products, such as Buy Now, Pay Later (BNPL) lending, and examines the effects of the COVID-19 pandemic on the consumer credit industry. Further, this research examines how companies are offering embedded finance products such as CCaaS to allow customers the ability to offer their own credit card product. By way of four evaluative criteria, general advice is provided for those seeking a relationship with a fintech provider.
“Exploring a partnership with a fintech is a viable option for launching new products, testing and evaluation,” comments Ben Danner, Analyst at Mercator Advisory Group and the author of the research report. Through API integrations, partners can easily integrate new financial service technologies into their existing portfolio to respond quickly to changing consumer demand.
