3 Interesting Credit Card Trends in 2018

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At the beginning of the year, plenty of people thought that cryptocurrency and the blockchain were going to take over the financial sector in no time. While those technologies are still very interesting, the frenzy around them has cooled down significantly. But that doesn’t mean it’s been a boring year for the payments space. Because so much has happened in the span of just six months, we want to highlight three of the most interesting credit card trends:

  1. Legalized Sports Betting

In what came as a big surprise to many people, the Supreme Court recently ruled in favor of states allowing individuals to place bets on sporting events. This activity is expected to start in New Jersey and then expand throughout the rest of the United States. Although legal US sports betting is expected to quickly bloom into a huge industry across the United States, that doesn’t mean it’s without any hurdles.

Just as dispensaries and other businesses in the cannabis industry have faced quite a few challenges, there are concerns about payments companies allowing bets to be placed with credit cards. As of now, none of the major payments players permit this activity. But given that illegal betting is already a $150 billion a year industry, it will be interesting to see if any of the major payments players take a gamble and allow betting activities through their cards.

  1. Consumer Delinquencies

Although the stock market and overall economy have been very strong, individual consumers are facing some challenges with their use of credit. In addition to general credit card delinquencies trending upwards during Q1, store-branded card delinquencies actually hit their highest rate in seven years. According to Equifax, the specific reason for those delinquencies spiking is a common belief among consumers that they can stop paying their cards when a retailer goes out of business.

  1. Small Business Owners

The other very interesting trend that’s showed up in recently collected data is that small business owners are heavier users of credit cards than normal consumers. Not only do owners have an average of just under 5 cards, but almost a quarter of the people in this group have used at least one personal card to fund business expenses. This trend is part of why so many big companies are putting a lot into B2B payments and lending.

Managing finances is just one of the many challenges that small business owners face. Reliably processing payments for a reasonable price is another very common challenge. If you’ve had issues with the pricing or service level of your current processor, there’s no reason to settle. In fact, finding a great processor is likely easier than you expect.

The reason it’s not nearly as hard as many business owners assume is we’ve created a great resource for comparing credit card processors. By looking through that page, you’ll be able to see exactly what rates are available and the types of features you can expect from a leading processing company.

Posted on Wednesday, July 25th, 2018