Growing superprime and subprime shares hollow out the middle tier—and payment products are following suit.

As card demand contracts and consumers pay down debt, banks may be sidelining spend-ready customers before stagflation takes hold.

The news: A recent Equifax report indicates that consumers are struggling with their household financial health and ability to pay mortgages. This will have a negative impact on the home lending market for the foreseeable future. Our take: They’ll need to proactively shift their risk management and lending strategies in anticipation of increased stress on their mortgage portfolios. Meticulously monitoring delinquency rates, enhancing early intervention programs for struggling homeowners, and potentially adjusting underwriting criteria can help mitigate future risks. Banks can also diversify revenue streams beyond traditional mortgage origination to offset potential profitability declines.

The news: AMC Entertainment’s stock plummeted 7.4% on Tuesday, per TipRanks, after the chain started running additional ads before screenings—building on AMC’s 27.8% YTD loss. AMC simultaneously announced a debt and financing agreement that included $223 million in new financing for debt maturing in 2026 and converting at least $143 million worth of existing debt into equity. Our take: Higher ad revenues for AMC could offset the chain’s financial difficulties, but its refinancing plan shows ads alone aren’t enough. Investors are seeking a clear path to consistent profitability.

Delinquencies for both student loans and credit cards could worsen as borrowers contend with more obligations

In today’s episode, we talk about how much debt consumers have, which buckets it lives in, and the likelihood of a ‘debt jubilee’. Join the discussion with host and Head of Business Development Rob Rubin, Senior Analyst Grace Broadbent and Senior Director of Forecasting Oscar Orozco.

The BNPL provider is taking the lead on credit reporting as the industry waits for regulatory clarity

Budgeting concerns, high interest rates, and other factors are pushing the generation to alternatives.

Delinquency fears hit the highest since 2020. We look at how issuers can tailor their offerings for a new era of uncertainty.

They’re still using the payment method, but some are wary the plans lead to overspending

A lot can happen in a week. Rue21’s customer overlap with TikTok Shop could position the brand to benefit from a potential TikTok ban. Meanwhile, Gen Z consumers are increasingly choosing alcohol-free lifestyles, reflecting health-conscious preferences. Cost-consciousness drives brand switching, but convenience remains key in purchase decisions. Here are five stats that caught our eye this week.

BNPL providers approved 79% of applications in 2022 thanks to counteroffers for subprime borrowers

This deviation from prior months’ trends may signify consumers are starting to pay off their debts and cut back spending

Credit card issuers can steal share from debit cards by expanding grocery-focused rewards and promoting budgeting tools

Interest rate cuts could help heading into 2025, but consumer financial health remains on shaky ground

While most Gen Zers are managing their debts, relying on credit cards for everyday spending could spell trouble

Gen Zers are driving growth in both emerging and traditional payment methods as they embrace cards, BNPL, and digital wallets. Payment providers must now align their offerings with Gen Z’s preferences as the cohort’s spending power grows.

Record APRs are putting off consumers—we look at what this means ahead of issuers’ earnings later this week.