Despite the gloomy headlines, US consumers are unfazed to pull out their cards.
In the most recent financial quarter,
👉 Visa credit cardholders shopped +9.5% Y/Y.
👉 MasterCard credit cardholders shopped +14% Y/Y.
Both growth numbers are ahead of inflation.
With decades of evolvement, credit card has multiple features to withstand the current environment.
📌 The extensive card network captures consumers’ strong spending.
📌 Variable interest rate floats interest revenue up with the prime interest rate.
📌 Low rate can capture financing demand via introductory rate/balance transfer.
📌 Integrated new features to satisfy BNPL behaviors - both at POS and post-authorization.
For all the lenders, are you going to up your stakes in this old but evolving card game?
Comments