Cloud Technology For FIs, Debit Cards, Potential Credit Card Default Crisis Top This Week’s News

It’s the end of the work week, and the PYMNTS Weekender is here to make sure you didn’t miss anything with the latest in payments and commerce news. We have deep dives into cloud technology for financial institutions (FIs), debit cards and a potential credit card default crisis.

Top News

Synchrony CEO Warns Of US Credit Card Default Crisis

Two top store card industry executives are worried that credit card payments will meaningfully fall when the federal $600-a-week supplement for state unemployment benefits winds down July 31, pending congressional action.

Synchrony Financial CEO Margaret Keane told CNN Business, “As forbearance and stimulus wears off, we’re definitely in a rockier place,” while Brian Wenzel, the company’s chief financial officer, said, “It’ll almost certainly get darker from here.”

Wells Fargo CEO Calls For Cost-Saving Measures, Layoffs

Wells Fargo is cutting costs significantly, with the inclusion of layoffs, as it seeks to become more streamlined during the financial crisis brought about by the pandemic.

CEO Davies Exits Revolut After One Year

Richard Davies is leaving his position as chief executive of Revolut, the digital banking company, one year after coming aboard. His departure occurs after the British company unveiled $80 million in new funding.

Visa, Mastercard Fined Wirecard Millions

Mastercard and Visa reportedly each fined Wirecard over $10 million over 10 years ago for suspect transactions.

Venmo’s New Boss On Scaling And Monetizing The Venmo Community

As Venmo considers what’s next in developing the business, its new general manager, Darrell Esch, said the platform represents social community as much as “app-powered money.”

Trackers And Reports

When FIs Move To The Cloud, It Pays To Start At The Bottom (Digital Banks and the Power of the Cloud Tracker)

Financial businesses seeking to make the transition to the cloud have to ensure they are shifting the way they approach and modify the technology. PYMNTS explores why FIs have to reconsider their applications of the cloud and other tools, to make technology-oriented banking.

Using Debit Cards To Bridge The Stimulus Accessibility Gap (Next-Gen Debit Tracker)

Federal stimulus funding can provide lifesaving support; however, everyone is not eligible to receive it. PYMNTS explores how prepaid debit cards are enabling the weR1 RI Relief Fund to provide undocumented families with much-required help without putting those who receive the funds at risk.

BECU On Why It Pays To Think Like A Challenger Bank (Credit Union Tracker)

It has always been sound business to keep an eye on what rivals have been doing, particularly when these rivals are basing their own appeal on modern technologies and tools. PYMNTS explores how credit unions (CUs) should be careful looking at digital-only challenger banks and how they are harnessing contactless solutions to assist consumers in banking remotely during the pandemic.

Fun, Cool And Otherwise Interesting

Big Tech CEOs Didn’t Win Over Congress At Hearing

The chief executives of Facebook, Alphabet, Apple and Amazon virtually sat in front of legislators for four hours getting questioned by a House Judiciary Subcommittee on Antitrust, Commercial and Administrative Law.

Subcommittee Chairman David Cicilline concluded the hearing by saying that all companies “have monopoly power.”

The Big US GDP Crash Reverses Economic Growth Of Last 11 Years

Bureau of Economic Analysis numbers indicated that the American economy contracted by nearly a third (32.9 percent) in Q2 for the largest drop in gross domestic product (GDP) as of the time the government started tracking such information in 1947.

Apple Doubles Services Revenue

Apple reported quarterly results on Thursday (July 30) that came out ahead of analyst estimates. Its service segment, which houses offerings like Apple Pay and Apple Care, saw revenue rise 14.9 percent to $13.16 billion year on year.

Amazon Crushes Earnings As Online Grocery Sales And Prime Viewership Soar

Amazon’s earnings were off the charts, and they hardly came due to cost-cutting. Chief Financial Officer Brian Olsavsky said the company kept seeing high Prime member engagement across the quarter.

Can Kodak’s Moment Last?

Eastman Kodak is having a moment with its share price jumping hundreds of percentage points this week. Will it last?