Possible Apple Pay security flaws; Mastercard enters the market Buy now Pay later

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Apple Pay Security Flaw Leaves Visa Cards Exposed to Unauthorized ‘Unlimited’ Contactless Payments

Commuters who use Apple Pay to access and exit public transport, they run the risk of having “unlimited” sums of money stolen from their Visa payment cards. Researchers at two UK universities have identified a vulnerability that occurs when an Apple Pay user sets a Visa credit or debit card as an “Express Transit” payment option in their iPhone wallet. In a video demonstrating the vulnerability, researchers were able to make a contactless payment of £ 1,000 from a locked iPhone. The researchers said the security breach only occurs when using a combination of Apple Pay and Visa. Other combinations such as Apple Pay and Mastercard or Samsung Pay and Visa have not been affected. [Euro News]

Mastercard will give lenders an option to buy it now and pay later

Buy-now, pay-later services that allow buyers to pay for purchases in four interest-free installments have so far been the domain of start-ups. But today, a traditional financial player settles down with an option of its own: Mastercard. The company has announced plans for a new subsequent payment offering that it says would allow banks, fintech companies, digital wallets and other lenders to offer various installment payment options to their customers, which they make purchases online or in a store. [The New York Times]

Painful Debt: How Credit Card Bills Can Damage Your Health

It is easy to quantify the pain that high debt levels can cause to one’s finances. But cause real body pain? According to new research, the pain you might feel or stiffness after work can also be related to the amount of your debt. Researchers assessed baby boomers as they got older, from 28 to 40, then rechecked them at 50. They separated the group into levels of unsecured debt, like the debt you incur by paying off credit cards or taking out payday loans. The results revealed a significantly higher rate of physical pain in people with high unsecured debt. [Forbes]

As Americans Spend, Credit Card Debt Grows

At the start of the pandemic, there were encouraging and surprising signs regarding the decline in credit card debt. Now this trend line seems to be changing. Many Americans stayed at home during the onset of Covid-19 and did not spend as they usually do. They also received several rounds of emergency cash assistance, helping to reduce those credit card bills. Expenses are increasing and results are starting to show up on our monthly statements. [Reuters]

Record number of credit cards opened in June

Banks issued 42% more credit cards in the first six months of 2021 compared to the same period in 2020, including a record 6.93 million in June 2021, according to a recent Equifax report. Credit card issuance started strong in 2020, but ended down 27% from 2019 as the COVID-19 pandemic took a heavy toll on the credit card industry. April and May 2020 saw the fewest creations in a decade. But banks issued 2.4 times more cards in May 2021 than in May 2020. And then June 2021 passed them all. [Bankrate]

Buy now, pay later seen as a growing competitor to debit cards

Increasingly popular, buy-now and pay-on services are viewed by credit card issuers as a steal of market share from debit cards and cash payments, Morgan Stanley said in a report. Some 75% of transactions are funded by accounts receivable. Most of the growth in four-install purchase programs relates to customers with marginal credit quality. Global sales using buy now, pay later totaled $ 93 billion last year, with those programs estimated at 3% of e-commerce sales next year in the United States. [Bloomberg]

PayPal launches its awesome app

The first version of PayPal’s “super app” is officially launched, offering a combination of financial tools including direct deposit, bill payment, digital wallet, peer-to-peer payments, shopping tools , cryptographic capabilities and more. The company is also announcing its partnership with Synchrony Bank for its new high-yield savings account, PayPal Savings. These changes shift PayPal from being largely a payment utility that adds to other offerings here and there, to a more comprehensive financial app. In addition to transferring their paychecks to PayPal, customers’ PayPal funds can then be used for things that are a part of everyday life, like paying bills, saving money, or shopping. [Tech Crunch]

Sanders Offers $ 1,000 Debit Cards For Seniors In Budget Bill

Seniors could get $ 1,000 loaded onto a debit card for dentist visits, hearing aids or glasses, as part of a plan by Senator Bernie Sanders. Debit cards, which Sanders called vouchers, would be means-tested for Medicare beneficiaries. The funds would be available for people earning less than $ 75,000 per year and families with incomes less than $ 150,000, similar to the rules used for stimulus funds during the pandemic. [Bloomberg Government]

Wells Fargo to launch Reflect 0% APR card in October

Wells Fargo plans to launch its Reflect card, the second in a trio of new credit cards announced in June. Reflect is designed to reward customers who pay on time. It initially offers an annual percentage rate of 0% for the first 18 months, with the option to extend that APR to 21 months to make all payments on time. The product follows the July launch of the issuer’s Active Cash card, which offers 2% cash back on all purchases. Wells Fargo has also promised a new rewards card in 2022. The timing of these launches reflects the nature of how consumers are changing their spending habits during the pandemic. [American Banker]

Democratic plan to force banks to report transaction data to IRS raises privacy concerns

Democrats’ plan to require banks to report all transactions over a certain amount to the Internal Revenue Service is mired in practical and confidentiality issues, Republicans and some tax groups argue. President Joe Biden originally planned for banks to report all inflows and outflows of accounts over $ 600 to the IRS to help generate revenue for the multibillion-dollar infrastructure and social spending program. democrats. Since then, Democratic leaders have struggled to narrow the scope of the provision and revise the threshold, possibly down to $ 10,000. The concept would be new to banks and the IRS. [Washington Examiner]

What has Covid-19 taught the government about digital payments?

Digital payments and prepaid cards have required more work from local and state governments during the pandemic, and agencies that have yet to adopt such methods of distributing funds to residents will likely miss out on significant savings. A new report from the Association of Government Accountants tells how digital payments have moved paper checks away from the spotlight for government disbursements to consumers, an evolution underway in line with trends in retail, services and (to a lesser extent) )) business-to-business worlds. Despite this, relatively new payment methods have shown new value during the pandemic, according to the report. [Government Technology]

China’s sweeping cryptocurrency ban was inevitable

On September 24, China’s central bank and its National Development and Reform Commission released two documents. One banned cryptocurrency mining following an earlier crackdown in May, and the other declared all cryptocurrency transactions and all companies providing cryptocurrency trading services illegal. to Chinese citizens as being engaged in illicit financial activities. Several exchanges, wallets and other cryptocurrency companies have announced that they will stop providing services to users in mainland China and impose a complete block of all Chinese IP addresses on their services. [Wired]


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