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Gen Z and Millennials increasingly prefer alternative payment methods as traditional credit card use decreases.

Debit cards remain the go-to for everyday spending, but a recent U.S. News & World Report survey reveals a widening generational gap in how Americans choose to pay — and what those choices can mean for their finances.

Between Dec. 16–17, 2025, U.S. News & World Report surveyed 1,209 Americans nationwide about their payment preferences and habits, with respondents evenly distributed among Baby Boomers, Gen X, Millennials and Gen Z. The results show that 56% of respondents most frequently use debit cards for routine purchases, compared with 31% who prefer credit cards. Cash was the top choice for 10% of respondents, while 3% favored buy now, pay later (BNPL) services such as Klarna or Afterpay.

Credit card usage declined sharply among younger generations, according to the survey. While 42% of Baby Boomers said credit cards are their primary payment method, only 27% of all other respondents said the same. More than 20% of Gen Z respondents reported never using a credit card, compared with 11% of Baby Boomers.

Read more at ACA International

Where Do Consumers Fall Across Credit Score Ranges?

Credit scores play a quiet but powerful role in financial life, influencing everything from loan approvals to interest rates and insurance costs. While most people know whether their credit is “good” or “bad,” fewer understand how credit scores are spread across the population. Looking at these score ranges helps put individual credit profiles into context and shows how common, or rare, certain credit situations really are.

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Number of People in Various Credit Scoring Segments, in Millions (2025)

7.0 – No credit score

37.9 – Poor (300-579)

39.8 – Fair (580-669)

54.5 – Good (670-739)

73.4 – Very Good (740-799)

61.4 – Exceptional (800-850)

Read more at PaymentsJournal

How Bank Websites Can Build Customer Relationships

A bank’s public website no longer has the luxury of serving as a passive storefront. AI-powered overviews, social media influencers, and other personal finance sites increasingly shape how consumers discover and evaluate financial products, making it harder for financial institutions to engage the public through their own digital channels. As a result, far more weight is placed on a site’s first impression—and on its ability to guide consumers toward products that can enhance their financial situation and ultimately build a lasting relationship with the bank.

A recent report from Javelin Strategy & Research, How to Make Bank Websites a Better Place to Learn, Shop, and Buy, analyzes the websites of five leading financial institutions. The result: too many banks put the onus on prospective customers to understand which products they need, how those products work, and how to evaluate their benefits. In doing so, they miss a critical opportunity to establish an advice-driven relationship from the very first interaction.

Read more at PaymentsJournal

Quantum Tech in Banking and Fintech: The Next Big Thing

Quantum technology is moving—albeit slowly—from theory to proof-of-concept in finance, and it may become one of the most disruptive forces in banking and fintech over the next decade.

Fintech has always chased the “next big thing,” from mobile banking and real-time payments to AI-driven credit scoring and robo-advisors. The newest frontier is quantum technology, encompassing both quantum computing and quantum-safe cryptography. Together, these innovations have the potential to reshape how financial institutions approach security, risk management, payments, and complex decision-making.

For bankers and fintech professionals, quantum is no longer a niche physics experiment confined to distant research labs. Major banks, regulators, and technology providers are already running pilots in areas such as portfolio optimisation, fraud detection, and quantum-secure communications. Understanding what quantum technology is—and, just as importantly, what it can realistically achieve over the next 5–10 years—is quickly becoming a strategic requirement.

Read more at FINEXTRA

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Trump’s 10% Credit Card Rate Cap Proposal Splits Corporate America, Exposing Fault Lines in Consumer Finance

President Donald Trump’s call for a one-year cap of 10% on credit card interest rates has evolved into more than a policy soundbite. It is now a flashpoint that exposes long-standing tensions in the U.S. consumer finance system, pitting banks and card issuers against fintech executives and consumer advocates, while raising questions about how far government should go in reshaping private markets.

Trump framed the proposal as a response to what he described as excessive borrowing costs, arguing on Truth Social that Americans are being “ripped off” by rates that can climb into the 20% and 30% range. Although Congress would need to legislate any such cap, the idea has already unsettled financial markets and boardrooms because it strikes at one of the most profitable segments of retail banking.

Read more at TEKEDIA

Capital One to Acquire Brex

Capital One Financial Corporation (NYSE: COF) today announced that it has entered into a definitive agreement to acquire Brex, in a combination of stock and cash transaction valued at $5.15 billion.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260122016437/en/

Brex is a modern, AI-native software platform offering intelligent finance solutions that make it easy for businesses to issue corporate cards, automate expense management and make secure, real-time payments. The company also leverages AI agents to help customers automate complex workflows to reduce manual review and control spend.

”Since our founding, we set out to build a payments company at the frontier of the technology revolution,” said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer of Capital One. “Acquiring Brex accelerates this journey, especially in the business payments marketplace.”

Read more at CapitalOne

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Should Banks Compete in the Credit Builder Card Market?

The secured credit card has long been the industry’s solution for consumers without credit histories. A new generation of credit builder cards is testing whether that solution still holds. Offered by several fintechs, the cards require users to fund an associated demand deposit account—often held at a separate bank—to cover card payments.

A new report, Evolutions in Secured Cards: Not Ready for Traditional Lenders, from Brian Riley, Director of Credit at Javelin Strategy & Research, examines the rise of these credit builder cards and considers what their growth could mean for established issuers and their position in the secured card market.

The Secured Credit Card

The advantages of a traditional secured card program are easy to see. By requiring a deposit account with funds that match the card’s credit limit, issuers can serve young consumers, immigrants, and others without established credit histories. As the relationship matures, the financial institution can reduce the deposit-to-credit-line ratio, with the goal of eventually eliminating the deposit altogether. When done right, this approach can turn a low-credit borrower into a customer for life.

Read more at PaymentsJournal

In 2026, financial executives prioritize technology, AI, and disciplined growth for resilient performance

The Financial Education & Research Foundation (FERF)—the independent nonprofit research affiliate of Financial Executives International (FEI)—today released the findings of its 2026 Financial Executives Priorities Report, revealing how finance leaders are navigating economic uncertainty with disciplined growth strategies and technology-driven transformation.

Released in partnership with Forvis Mazars, the report captures insights from more than 200 senior finance leaders—including CFOs, CAOs, and controllers—across industries, regions, and company sizes.

The findings explore executive priorities for 2026, top financial strategies, workforce and talent trends, cybersecurity and risk management, and the accelerating role of AI and digital transformation in the finance function.

Read more at Forvis Mazars, LLP.

We advise financial technology companies at the

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

Banks Without Invoicing Services Are Missing a Small Business Opportunity

Small businesses increasingly rely on fintechs not just to accept payments, but to manage how and when they get paid. Invoicing—once a back-office afterthought—has become a core part of the payments experience. Because invoicing tools can be complex to build and maintain, it’s tempting for business owners to turn to a PayPal or Square for this service.

Yet banks themselves are best suited to offer invoicing. In The Invoicing Gap: How Small Businesses Get Paid, and Why Banks Are Missing Out, Ian Benton, Senior Analyst of Digital Banking at Javelin Strategy & Research, looks at how many banks are missing an opportunity by failing to build and marketing this key capability to their small business clients. Banks are finally starting to recognize that without invoicing tools, they risk losing engagement—and ultimately relationships—in other areas of the business.

What Businesses Need from Invoicing

Read more at PaymentsJournal

Credit unions stand united against credit card mandate bill

The credit union movement stands united in opposition to the Credit Card Competition Act (CCCA), and America’s Credit Unions, the American Association of Credit Union Leagues (AACUL), and all state leagues wrote to House and Senate members Friday. The CCCA—reintroduced last week in both chambers — would bring harmful new mandates to the credit card processing system, which includes interchange.

“Government intervention in the interchange market affects all market participants, including smaller institutions below what is meant to be an exemption threshold. Those smaller institutions, including our credit union members, have seen a precipitous erosion of their per-transaction debit interchange revenue as a result of the Durbin Amendment,” the letter reads. “Taking similar steps on credit card interchange would cause even more harm, not only to the institutions, but to the members they serve.”

America’s Credit Unions, AACUL, and leagues note that the bill, sponsored by Sens. Dick Durbin, D- Ill., and Roger Marshall, R-Kansas, in the Senate, would harm:

Read more at AmericasCreditUnions.org

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New Federal Tax Reporting Requirements for Overtime Compensation: Krieg DeVault

The IRS has announced that new tax-reporting rules are forthcoming for overtime compensation under recent federal tax legislation commonly known as the “One Big Beautiful Bill” (the “Bill”).1 Although the Bill does not change how employers calculate or pay overtime it introduces new overtime reporting requirements for employers. These changes facilitate an income tax deduction for certain employee overtime compensation for tax years 2025 through 2028.

1. What Has Changed

The Bill created a new above-the-line income tax deduction (available regardless of whether an employee itemizes deductions) for eligible employees based on qualified overtime compensation, as defined by the statute and to be further clarified by IRS guidance. In general, qualified overtime compensation includes only overtime pay that is required by the Fair Labor Standards Act (“FLSA”). To administer this deduction, the statute requires employers to report deductible overtime so employees know the amount to claim on their individual tax returns. The reporting requirements are governed by federal tax law and administered by the Internal Revenue Service (IRS), not by the Fair Labor Standards Act (FLSA).

Read more at JD Supra, LLC

Getting started with AI in collections: by Adrian Ferrante-Bannera

Real lessons from deploying AI collectors across 350,000+ calls. What's working, what's changed, and practical steps to get started in your collections operation.

We now live in the AI era

AI collectors have arrived, and they are here to stay. Adapt or get left behind.

The old way of collecting

• Humans dialing manually and updating accounts in CRM
• CSV exports and imports
• Missed calls outside business hours
• Every account requires human time
• Scaling means hiring more people

The new way of collecting

• AI handles routine accounts end-to-end
• 24/7 availability with no missed overflow calls
• Automated workflows feed your CRM in real time
• Humans focus only on complex, high-value cases
• Scale operations without scaling headcount

Read more at CORAFONE.COM

Where Financial Institutions Fit in the AR/AP Value Chain

A single purchase request now triggers a web of approvals, data exchanges, and funding decisions that stretch far beyond traditional accounts payable and receivable processes. As AR/AP workflows grow more complex, banks and networks face a critical question: where do they truly fit in a value chain full of opportunity, but short on clarity?

To mitigate this uncertainty, Hugh Thomas, Lead Commercial and Enterprise Analyst at Javelin Strategy & Research, mapped the AR/AP value chain, outline the major players in the space, and examined how financial institutions can differentiate themselves in his latest report, Capabilities in Context: A Value Chain Analysis of AP and AR Providers.

Becoming Entrenched in the Process

Historically, many financial services firms have overextended themselves in their efforts to establish a role within AR/AP processes.

Read more at PaymentsJournal

How a Detroit High School Is Bringing College-Level Financial Education to Its Seniors

It is October 31, 2025, and while the attentive class of seniors gathered on Zoom from Renaissance High School in Detroit, Michigan, might have big Halloween plans, they are currently focused on the day’s lecture. It is being led by Rhea Banerjee, an MBA student at the Wharton School of the University of Pennsylvania and a teaching fellow in Wharton Global Youth Program’s online Essentials of Personal Finance course.

The topic could come off scary: the importance of comparing different loan options to find the best deal and avoid unmanageable debt. Yet, these students seem up for the challenge.

“It’s super important to calculate what the actual payment per period would look like across different lenders,” notes Banerjee, providing a simple formula for yearly car loan payments: a five-year, $5,000 car loan at 9% annual interest.

She urges the students to use the provided payment formula for their calculations, plugging in the appropriate numbers and arriving at a loan payment of approximately $1,285 per year.

Read more at The Wharton School

US reinforced its position as the main global FinTech hub with 44% of all deals in 2025

Key Global FinTech investment stats in 2025:

• Global FinTech deal activity dropped by 24% YoY
• US firms accounted for 44% of all deals, reinforcing the country’s position as the main FinTech hub globally
• Cyera, a FinTech specialising in AI-driven data security, secured one of the biggest FinTech deals of the year with a $540m Series E funding round

Global FinTech deal activity dropped by 24% YoY

In 2025, the global FinTech market remained well below its historic highs, although funding showed a modest recovery from the prior year.

Total investment reached $96bn, a 7% increase from the $89.7bn raised in 2024, even as deal activ

Read more at FINTECH GLOBAL

What Prompted Affirm’s Application to be a US Bank?

US financial services firm Affirm has made applications to key US institutions to establish industrial loans company ‘Affirm Bank’ in aims to expand.

Affirm has applied to the Nevada Financial Institutions Division in addition to the Federal Deposit Insurance Corporation (FDIC) for the establishment of a Nevada-chartered industrial loans company. 

Affirm Bank will assist with consumer access to honest financial products. 

The proposed bank subsidiary will enable continued responsible scaling of Affirm with the added security of an FDIC-insured institution. 

How the subsidiary will help Affirm’s mission 

If approved, the proposed institution will operate as an independently governed and wholly-owned FDIC-insured bank subsidiary of Affirm. 

Read more at FINTECH MAGAZINE

Three Small Business Trends That Banks Can Hop On in 2026

When it comes to banking services directed at small businesses, the playing field is always changing, providing opportunities for those who seek them. The new 2026 Small Business Banking Trends report from Javelin Strategy & Research showcases three areas that should continue to help banks connect with small businesses: cross-border payments, Zelle for Business, and new use cases for AI.

Cross-Border Payments

Although cross-border payments have been available in commercial banking for a while, several trends are aligning that will allow them to be more available to small businesses, which are increasingly operating internationally. If customers are using international suppliers or contractors, banks would have to process outgoing payments, and if small businesses have international customers, the bank would have incoming payments.

In most cases, banks do not offer something like this to small businesses unless they’re working within a specific industry. Smaller banks doing it today are likely turning to fintechs like Wise and Payoneer or consumer-centric services like PayPal. But with stablecoins being adopted more frequently by banks and real-time payment rails becoming more connected internationally, there’s an opportunity for banks to make these services readily available to small business owners.

Read more at PaymentsJournal

Emerging Financial Planning Shifts Advisors Must Use to Improve Client Outcomes

How evolving client needs reshape modern financial planning

Financial planning continues to evolve as market conditions shift, technology advances, and client expectations expand beyond traditional investment guidance. Today’s clients want comprehensive plans that address more than assets and returns. They seek clarity, long-term stability, and strategies that adapt to changing life circumstances. For financial advisors, staying informed about the latest trends is essential to providing high-quality service and achieving stronger client results. Understanding these new trends allows advisors to create more personalized financial plans, improve communication, and deliver measurable value.

As the financial world becomes more complex, advisors must approach planning with greater flexibility and foresight. Successful financial planning today blends emotional intelligence, technological innovation, and strategic thinking. Advisors who master these emerging trends will strengthen relationships and guide clients toward better financial decisions.

Read more at EDUCATION

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Fintech has outpaced the guardrails meant to protect it 

Earlier this month, Taiwanese prosecutors indicted 35 individuals in a sprawling, $1 billion money laundering operation tied to online gambling. But the most important part of the case wasn’t the gambling. It was the infrastructure behind it.

The laundering didn’t rely on crypto mixers or sophisticated channels. It wasn’t some dark web scheme patched together by cybercriminals. It was built on fast, lightly governed payment platforms; custom processors that handled deposits and withdrawals with enough scale and sophistication to move illicit capital across borders, undetected, for nearly four years.

That detail should give U.S. policymakers pause. Because if a billion-dollar laundering operation can operate quietly through bespoke payment rails in Taiwan, what makes us think it isn’t already happening here?

The Taiwan case is a warning, but not just about enforcement gaps in East Asia. It is a preview of what happens when the pace of financial innovation decisively outruns the safeguards meant to constrain it. And in the U.S. fintech sector, particularly in paytech and iGaming, that gap is widening by the day.

Read more at The Hill

This free option still lets you file your 2025 tax return online, no hidden fees - here’s how it works

Filing your 2025 federal tax return online for free is still very much possible in the 2026 tax season, despite widespread confusion after the IRS shut down its Direct File pilot. The key is knowing where to look — and how to avoid paid versions disguised as “free.” The IRS Free File program, quietly operating for more than two decades, is once again available to eligible taxpayers and remains one of the most underused cost-saving tools in the U.S. tax system.

The Internal Revenue Service expects to receive roughly 164 million individual income tax returns in 2026, with the vast majority filed electronically. Yet millions of Americans still pay for tax software they don’t actually need. For taxpayers with an adjusted gross income (AGI) of $89,000 or less in 2025, Free File offers a legitimate, no-cost way to prepare and e-file a federal return using guided tax software from private companies — as long as the process starts directly at IRS.gov/freefile.

The confusion stems largely from the end of Direct File, a separate IRS-run pilot that allowed some taxpayers to file directly with the government. That program, which was never nationwide, ended in late 2025. But Free File did not end. It is active, available, and already accepting prepared returns ahead of the official filing start date of January 26, 2026. For taxpayers who want to save money and file correctly, Free File remains a powerful — and often overlooked — option.

Read more at ECONOMIC TIMES

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