Offering in-app subscription cancellations can prevent younger consumers leaving issuers for fintechs.

The clunky interface and competing card-linked installment will box out Splitit Go from real BNPL volume.

Klarna’s deepening investment in the UK shows EU-forward approach.

In 2026, economic uncertainty is quietly reshaping consumer payment behavior, driving shifts across cards, cash, BNPL, and emerging alternatives as households adapt how they manage spending and access liquidity.

Annual fee revenues tripled as affluent users flock to luxury rewards, reversing a decade-long trend—and fintechs seek to pick up consumers issuers left behind.

Mastercard and LoanPro launched Loan on Card, a personal loan service for consumers and small businesses delivered through virtual and physical cards, per a press release. Loan on Card provides a patch for issuers trying to retain customers that otherwise would have fled to BNPL platforms for larger loans to avoid revolving debt on credit card transactions they couldn’t pay off within a month. BNPL platforms can still boast direct connections at the point-of-sale and the fact that even longer-term BNPL loans don’t appear on customers’ credit scores. Banks need to make sure their loans are just as accessible when consumers are shopping for bigger purchases—with real-time underwriting.

Walmart wants discretion to refuse cards based on their issuer at the point-of-sale, per an objection filed in response to the proposed settlement to end the decadeslong interchange fee legal battle. While new types of fee agreements with banks remain entirely speculative at this point, it’s unclear whether a patchwork quilt of deals with issuers would benefit Walmart. Discontinuing acceptance of certain issuers at the POS will likely cause just as much friction for consumers as the purportedly “useless” changes to the honor all cards rule, especially if Walmart stands alone in its issuer blacklist.

AI is reshaping how payment providers attract, serve, and retain customers. Those who act now to integrate AI across the life cycle—from discovery to checkout to support—will gain an edge, while those who wait risk losing loyalty and control.

Capital One will issue T-Mobile’s first credit card, according to Bloomberg—but it won’t run on Capital One’s recently acquired Discover network. Whether T-Mobile snubbed Discover or Capital One wasn’t ready to integrate its credit card products with the newly acquired network, the optics of running a new card on Visa aren’t great. But Visa and Mastercard shouldn’t exactly call this a win. While Discover's total volume is still an order of magnitude lower than that of Mastercard or Visa, incremental gains will lead to real lost volume opportunities for the duopoly.

Bank of America’s revenues rose 11% YoY to $28.1 billion in its Q2 2025 earnings, outstripping analysts’ expectations at $27.5 billion, per CNBC. While consumers are demonstrating resilience, leaning into flexibility as the holiday season approaches could give issuers more loyalty from consumers who are skittish about holiday shopping. 0% interest holidays and card-linked buy now, pay later offers can help banks compete against fintechs offering similar promotions.

Klarna Started trading on the NYSE on Wednesday under the ticker symbol KLAR. Klarna’s stock opened at $52 per share—well above anticipated levels of $35-$37 per share—and closed at $48.82. By the end of the day, the buy now, pay later (BNPL) player was valued at $17.3 billion. Klarna’s IPO outperformance signals investor hunger for major tech listings, following Circle and Figma’s standout public offerings. As Klarna moves deeper into the US BNPL market, Siemiatkowski said that different use cases between the Affirm and Klarna Cards will determine the future of each fintech player.

The news: Revolving consumer credit growth has been negative for two months, per Federal Reserve Board data. Annualized revolving credit growth declined 3.5% in May and 1% in June. A year ago, annualized revolving credit growth stood at 6.15% in May and -0.92% in June. Our take: In the face of uncertainty, consumers are wary of spending unless they feel incentivized to change their behavior, especially as tariff-related pressures increase.

The news: New account openings were down 5% across Wells Fargo, Citi, Bank of America, and American Express during Q2 2025, per The Wall Street Journal. Our take: Issuers are going to chase opportunities to increase their payment volume, which explains targeted efforts to boost luxury travel and dining rewards. But looking long-term, banks need to think strategically about loosening their credit guidelines.

Tariff uncertainty, billion-dollar merger and acquisition deals, and a jump in social commerce will create new dynamics in the payments industry in H2 2025. Burgeoning tech like agentic AI and stablecoins will further shake up the space.

They can stand out from the pack by increasing their offerings, providing data analytics, and forging key partnerships.

To compete, fintech still must measure up against regulated and consumer-favorite card-linked installment plans.

A flurry of interest and an unexpected announcement from PayPal show where banks see the biggest value of their own stablecoins.

Issuers are relying more than ever on this segment to bolster payment volume and revenues.

They have higher customer satisfaction rates, adding to the competitive pressures

The two are moving ahead with integration plans as they remain optimistic the deal will pass its final hurdles