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Cash use declines as cards rise: Atlanta Fed

Consumers keep using cash, but credit cards are king, the Federal Reserve Bank of Atlanta documented in its annual payment method survey.

Dive Brief:

• The percent of consumers who said last October that they’d recently made payments with cash declined to 83%, from 87% in 2023, according to the results of a survey of payment methods by the Federal Reserve Bank of Atlanta. Similarly, the proportion of survey respondents who had used checks fell to 35% in 2024, from 40% in 2023.
• The most popular form of payment for all types of transactions, including purchases and bill payment, were credit cards, according to the report. Of all the transactions tracked in the survey, 35% were made with credit cards, followed by debit cards (30%), cash (14%) and bank account methods (13%), the results showed. Checks captured just 3% and prepaid cards 2%.

Read more at PAYMENTSDIVE.COM

Exploring the Shape and Trajectory of the U.S. Commercial Payments Ecosystem

The latest available data from the Federal Reserve found that there were roughly $1.6 quadrillion in payments in the United States alone. However, because this data includes financial economy transactions like company acquisitions and stock sales, as well as consumer payments, quantifying the total addressable market for B2B payments—much less share shift that is happening between different payment instruments—can be difficult.

This is exactly what Hugh Thomas, Lead Commercial & Enterprise Payments Analyst at Javelin Strategy & Research, set out to do in the Commercial Payments Factbook. His report examines the commercial payments market, identifies growth rates on a product-by-product basis, and details how financial institutions can make an impact with business customers.

Read more at PAYMENTSJOURNAL.COM

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Mexico is becoming a mobile-first consumer market.

Less than half of shoppers in the country used a mobile device for their latest retail purchase, whether online or in-store, reflecting a 17% increase since 2022. What’s more, Mexicans conduct 1.3 distinct mobile shopping activities per day on average, including browsing and buying.

However, PYMNTS Intelligence’s latest research finds that 29% of consumers in Mexico experienced friction during their latest online purchase. Most of these cases involved unexpected charges or processing errors, highlighting a key area for merchants to improve to stay competitive in the mobile-first era.

Another area ripe for innovation is cross-channel shopping, which allows shoppers to access the same digital features whether shopping online or in-store.

Read more at PYMNTS.COM

Card Issuers Maximize Customer Lifetime Value by Expanding Product Mix

Forget complicated finance jargon. Whether it’s giant bank JPMorganChase or financial technology startup Stripe, offering shoppers the right mix of credit and debit cards and knowing how they use them is the secret to boosting long-term profits.

For companies that issue cards, it’s a constant battle to make sure each customer earns them the most money possible, not just today as they drop five figures on a new set of furniture, but the whole time they stick around.

This crucial measure is called customer lifetime value, or CLTV. Think of it as the total potential revenue a cardholder brings by paying interest and fees over the entire time they hold a card. An additional slice of revenue comes to issuers through interchange fees, typically just under 2%, that are usually paid by the merchant every time a consumer buys something, though some retailers pass those “swipe” charges on to the cardholder.

Read more at PYMNTS.COM

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

North Dakota Law Regulates “Alternative Financing” as a “Loan”: Robert F. Gage, Hudson Cook LLP

The state legislature in North Dakota recently passed House Bill 1127. This bill made a simple amendment to a 1970s-era law called the Money Brokers Act (“MBA”).

Despite its name, the MBA is not limited to brokers. It is the primary law regulating consumer and commercial lending in North Dakota. It applies to any person engaged in the act of arranging or providing loans. Such persons are called “money brokers” in the MBA.

This amendment adds a two-sentence definition of the word “loan”. When this amendment takes effect, the MBA will define “loan” as follows:

Read more at deBanked

Why Quality Over Quantity Is The New Banking Social Media Strategy

A new report highlights a counterintuitive strategy: brands posting less are seeing better results. This shift reflects evolving consumer priorities, with audiences now valuing authentic connection over continuous content. For bank social teams accustomed to feeding the algorithm, this presents a fundamental recalibration.

Source: Sprout Social

In a social media landscape approaching peak saturation, the conventional wisdom of "post more, reach more" is being turned on its head. According to Sprout Social’s 2025 Content Benchmarks Report, the most successful brands are actually scaling back their publishing volume and focusing instead on creating truly engaging, human-centric content. There is a clear shift in strategy — it’s no longer about who posts the most, but who posts with the most purpose.

Read more at The Financial Brand

Whether as a standalone store or a kiosk inside your current location/s,

El Vecino provides a turnkey solution with a strong brand, built-in provider network, and all the support you need.

HSBC to Wind Down Business Banking Unit in US

HSBC is reportedly winding down its business banking unit in the U.S. as it sharpens its focus on other markets.

As it disbands the business banking unit, which served small and medium-sized businesses (SMBs) in the U.S., the bank laid off 40 employees earlier this week and notified the unit’s 4,400 clients, The Wall Street Journal (WSJ) reported Friday (May 30).

“We are supporting … clients while they transition to a suitable alternative provider,” an HSBC spokeswomantold the WSJ.

HSBC has been withdrawing from some international markets and focusing on Hong Kong and the U.K., which are its home markets, and Asia, according to the report.

Read more at PYMNTS.COM

Credit union loans increased 0.2% in April

Credit union loans outstanding increased by 0.2% in April, compared to -0.4% growth in March and 0.34% growth in April 2024. This is according to America’s Credit Unions’ latest Monthly Credit Union Estimates, which is available in an online dashboard. The report is generated from the Equifax Analytics Dataset, an anonymized random sample of credit report data that tracks 10% of all U.S. consumers with a Social Security number.

Home equity lines of credit led loan growth (0.89%), followed by credit cards (0.43%), auto loans (0.14%), second mortgage loans (0.59%), and first mortgage loans (0.14%).

Secured personal loans (-0.15%), unsecured personal loans (-0.22%), and private student loans (-0.6)% all declined in April.

Read more at AMERICASCREDITUNIONS.ORG

We advise financial technology companies at the

start-up, product development, and product evolution stages.

How to Know What Your Customers Need Before They Do

Banking consumers' expectations of convenience can't be satisfied by digital tools alone. Real convenience means offering the right service at the right time in the right pace, whether online or in-person. Focus on 'anticipatory customer service'.

When pursuing convenience in banking, it is easy to focus on technology, such as mobile apps and online platforms that allow customers to manage their finances from anywhere at any time. However, convenience isn’t just about technology — trusting your bank and having reliable customer service are also priorities. Convenience means carrying about your day without concern regarding your account. Is my money safe? Is my balance accurate? Where did this fee come from?

Rivel Banking Research found that the top two important drivers of a customer’s banking experience when choosing a new primary bank are trustworthiness at 92% and good customer service at 86%. This is true on both the retail and commercial sides of the banking world, and it’s interesting to see how the in-person experience continues to evolve.

Read more at The Financial Brand

IRS Direct File sees higher scores among users, despite a push to shutter it

The IRS’ Direct File program, a free, online way for individuals to file their tax returns, saw higher favorability scores this year.

The project, which started last year as a pilot in 12 states, expanded to 25 states this year, and more than doubled its total number of users. Those metrics, however, may not be enough to keep the Trump administration from eliminating Direct File.

Trump administration officials — including the President’s pick to lead the IRS — say they have yet to make a decision about the future of Direct File.

Read more at FederalNewsNetwork.com

Why 74% of Banking Customers Are Ready to Leave

Capgemini's new research shows most banking customers are indifferent or dissatisfied with their current banks, leading to "silent attrition" as they gradually shift to digital-first alternatives that offer more personalized, seamless experiences.

In a world where customer loyalty is increasingly rare, traditional banks face a critical challenge: a vast majority of customers are indifferent or outright dissatisfied with their current banking experiences. On a recent episode of the Banking Transformed podcast, host Jim Marous spoke with Kartik Ramakrishnan, CEO of Financial Services at Capgemini, about the eye-opening findings from their 2025 World Retail Banking Report and how institutions can attract, engage, and delight customers in an increasingly competitive landscape.

Read more at The Financial Brand

Trump administration prepares to ease big bank rules

The proposal would represent the latest policy win for the banking industry, which has been closely scrutinized since the 2008 global financial meltdown.

The Trump administration is gearing up to deliver a major win to Wall Street banks: Easing rules imposed on megabanks in response to the 2008 financial crisis.

Trump-appointed regulators are nearing completion of a proposal that would relax rules on how much of a capital cushion the nation’s largest banks must have to absorb potential losses and remain solvent during periods of economic stress.

Read more at POLITICO

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Navy Federal Credit Union Partners with Bloom Credit to Launch Alternative Credit Scoring Service

Navy Federal Credit Union, serving over 14 million members, has partnered with data infrastructure platform Bloom Credit to implement Bloom+, a consumer-permissioned data product that enables members to build their credit scores through rent and utility bill payments. The initiative comes as Navy Federal works to expand its digital banking capabilities following a significant mobile banking service disruption earlier this year that highlighted the need for robust digital infrastructure.

The integration of alternative credit scoring methods represents a significant evolution in financial services authentication and verification, building on the credit union industry’s broader adoption of advanced identity technologies. The development follows similar initiatives in the sector, including CULedger’s successful pilot of MyCUID, a digital credential system designed specifically for credit unions.

The credit union continues to expand its operations, with active recruitment for multiple positions including Member Service Representatives and Business Intelligence Analysts, indicating ongoing growth in its service capabilities. The expansion comes as financial institutions increasingly embrace digital transformation and enhanced authentication methods to improve security and user experience.

Read more at MOBILEIDWORLD.COM

IRS collected record breaking tax revenue in 2024. See how much.

WASHINGTON - The Internal Revenue Service has set a new record for its largest revenue collection ever.

What we know:

The agency collected more than $5 trillion in taxes for the first time in history, totaling $5.1 trillion for fiscal year 2024, according to data released Thursday in their annual Data Book.

This amounts to an increase of nearly 9% from the previous year’s total of $4.7 trillion.

IRS revenue accounts for approximately 96% of all government funding, according to the report. The data provides a comprehensive statistical overview of IRS operations

Read more at FOX5dc.com

The Fintechs Revolutionizing Small-Business Lending

Small businesses look beyond traditional financial institutions for unique lending options.

Key Takeaways

• Many small businesses face hurdles when they seek traditional financing, such as credit or longevity requirements.
• Fintechs are using technology to assess business borrowers and make lending more accessible.
• Small-business banking fintechs offer unique products tailored to fit different business sizes and capital needs.

Small businesses often need access to capital to grow and scale, but the stringent criteria traditional lenders use to determine creditworthiness sometimes prevents them from qualifying. The rise of financial technology companies, or fintechs, over the last decade has given businesses a financial lifeline.

Read more at USNEWS.COM

Charles Schwab and 4-H Team Up for Financial Literacy

The Charles Schwab Foundation contributed more than $21 million to nonprofits nationwide last year, including $3.3 million to local organizations.

When one hears “4-H,” financial literacy education isn’t the first thought that comes to mind. Nevertheless, the youth program’s partnership with North Texas-based Charles Schwab is bringing investing and finance curriculum to hundreds of thousands of kids in the state.

Although none of the Hs in 4-H stand for Hedge Fund (they are Head, Heart, Hands, and Health), and its 65,000 members in Texas are perhaps better known for bringing prize animals to county fairs, the comprehensive leadership program offers several curricular options in addition to the traditional skills of rural life.

Formed in 1912, the U.S. program is administered by the National Institute of Food and Agriculture of the U.S. Agriculture Department. Technology, engineering, health, and, thanks to Charles Schwab, financial literacy are also integral to the platform.

Read more at DMAGAZINE.COM

Consumers Boosted Savings and Slowed Spending as Tariffs Loomed

April’s data on inflation and consumer activity show slowing price increases, a boost to savings and a deceleration in spending, too.

The Personal Income and Outlays data, released on Friday (May 30), indicates prices were up only slightly month on month and 2.1% year on year, though the full impact of tariffs, and the most recent pause with China, has yet to be felt.

The Bureau of Economic Analysis (BEA) report indicates that that personal income growth outpaced inflation and was up 0.8% on a monthly basis in April.

Income Growth

This marks an acceleration from the 0.7% registered in March and the Q1 average which also came out to 0.7%. As incomes grew, so too, did disposable income, which is measured after tax and which also gained 0.8%.

Read more at PYMNTS.COM

Acting Comptroller of the Currency Discusses Financial Literacy Education

WASHINGTON—Acting Comptroller of the Currency Rodney E. Hood today discussed the importance of financial literacy education in remarks at the Financial Literacy and Education Commission.

In his remarks, Acting Comptroller Hood discussed the role financial literacy education plays in driving financial inclusion and participation in the financial system. He encouraged careful monitoring of the rapidly changing financial marketplace and updating financial education strategies to address innovations such as digital assets.

Acting Comptroller Hood also highlighted the Office of the Comptroller of the Currency’s financial literacy publications and resources and encouraged banks to consider how they can support customers’ financial health.

Read more at Office of the Comptroller of the Currency

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How credit unions can uphold their mission in uncertain times: Jennifer Esperanza, Ph.D.

The foundation of credit unions lies in our unwavering commitment to serve our members, to foster financial well-being, and champion community development. However, with the ongoing flow of executive orders that introduce new complexities into the mix, today’s economic landscape requires close attention as it shifts.

From growing concerns about International Taxpayer ID Numbers (ITINs) privacy to the removal of two NCUA board members, and ongoing questions about the future of our tax-exempt status, credit union leaders may (understandably) feel an inclination to "lay low" and delay previously prioritized initiatives until the landscape becomes clearer.

However, taking a constrained or silent approach should not come at the expense of our mission. In fact, such a stance can unintentionally create false perceptions—suggesting that bold, mission-driven actions are inherently risky or non-compliant. This is simply not true. Our commitment to inclusion and community empowerment must remain steadfast, even in uncertain times.

Read more at CUINSIGHT.COM

U.S. Mint to Stop Penny Production in 2026: Cashless Future Looms

The U.S. Mint is set to cease production of the penny in early 2026, signaling a shift in how Americans will handle everyday transactions. Inflation and rising production costs are making it impractical to produce the copper-colored coin, which now costs nearly three cents to mint. Even nickels, at almost 14 cents apiece, may be next on the chopping block.

This change sparked a lively discussion on NBC Palm Springs, where viewers weighed in on the disappearance of the penny and the broader implications of a cashless society. Many expressed no sadness over the penny’s demise, calling it a “hassle” and a “waste of time,” often ending up in jars or pockets.

In 2022, data revealed that 40% of Americans never used cash at all. Lower-income households and those over 55 are more likely to rely on cash, but the majority are shifting to digital payments, including debit cards and online transactions. Some mistakenly think a cashless society means only credit cards, but it primarily involves debit and direct bank payments.

Read more at NBC Palm Springs

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