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  • Frank Tian

💳 4 Reasons Credit Card Numbers Still Strong

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?

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