Swiss Post’s little check cashing test triggers a big reaction

The entry of the US Postal Service into the field of check cashing is still causing a sensation. The loud reactions from boosters and critics on Monday reflected the widespread belief that the pilot program could be a first step towards a broader implementation of post banking. The recently launched program operates in just four offices – in Washington, DC, Baltimore, Falls Church, Virginia, and the Bronx, New York – of the Postal Service’s more than 30,000 locations across the country. The USPS only accepts business and paychecks of $ 500 or less, and excludes larger checks and personal checks. The Post does not provide cash in exchange for the checks and instead lets customers purchase a one-way gift card worth up to $ 500. [American Banker]

Affirm stocks jump 20% after online lenders partnered with Target ahead of the holiday shopping season

Affirm shares rose 20% on Wednesday after retail chain Target began offering its online lender’s installment loan service to its customers for purchases over $ 100. Target said it is working with Affirm and smaller rival Sezzle as consumers prepare for the Christmas shopping season. Buy Now, Pay Later Services, which are installment loans, often without interest fees, have grown in popularity as retailers respond to consumer demand for easy, debt-free payment options. BNPL providers typically take a cut from the merchant on every transaction. [CNBC]

Apple Pay charges Vex credit card issuers

When Apple Pay first hit the market, the tech giant got big banks like JPMorgan, Capital One, and Bank of America to pay fees that would allow their cardholders to pay using iPhones. However, some banks are unhappy with the cost, especially after Apple launched its own new credit card in 2019. Some banks are pushing back and pushing the Visa card network to change the way it processes certain Apple Pay transactions. The change would reduce the fees banks pay Apple. Visa plans to implement the change next year. Apple executives have notified Visa executives that they oppose the change. [The Wall Street Journal]

Capital One credit card miles are now even more valuable

From October 7th, all but two of Capital One’s airline and hotel partners will transfer at a ratio of 1 to 1. This means that if you transfer 1,000 Capital One miles to 14 of the 16 current partners in the program, you will receive 1,000 points or miles in the relevant airline or hotel loyalty program. Six airline frequent flyer programs will be promoted to Capital One’s 1-to-1 transfer ratio. Most of these programs were previously 2-to-1.5 broadcasts from Capital One, while both Emirates and Singapore were 2-to-1 broadcasts. The improvements mean that Capital One cardholders will get 33% more points or miles than before when they switch to these programs and 50% more when they switch to Emirates or Singapore. [CNN]


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Otto, backed by Mark Cuban, is raising $ 4.5 million to turn car capital into credit

Otto, a fintech startup that aims to enable people to use their vehicle’s equity to access credit, has raised $ 4.5 million in a seed funding round. The Dallas-based company is building a mobile platform that essentially allows people to borrow their vehicles at the same interest rate as standard credit cards. However, unlike other cards, Otto does not charge any fees or overdraft fees, and does not require applicants to provide their FICO credit points. The mobile platform is scheduled to hit the market in early 2022. [Tech Crunch]

CFPB report shows solid credit card industry despite Covid

The CFPB is required to publish an update on the credit card industry in a report to Congress every two years. The most recent report was published at the end of September. There are five key points in the report that should come as no surprise to supporters of the US market; They suggest a decline in consumer credit card volume during Covid, a slight decrease in borrowing costs, more restrictive lending during the pandemic, continued innovation and significant relief during the global health crisis. [Payments Journal]