Are personal credit cards going the way of Sony Walkman tape players and 1980's neon spandex pants? We reported earlier today here on Outlaw about how PayPal is experiencing a surge in transaction volume -- and why this could be troubling news for Visa Inc (V) and MasterCard Incorporated (MA) executives.
But now there's more news that suggests physical credit cards may be losing favor with American consumers.
As CNNMoney reported earlier today, "In the past year, more than eight million consumers have stopped using credit cards, according to TransUnion, a Chicago-based credit researcher. That means 78 million U.S. consumers do not have credit cards, compared to 70 million last year."
A drop of 8,000,000 cardholders in one year is significant. Perhaps the card industry faces the same "bleed" that cable companies are now experiencing.
But then again, a lot of those eight million folks were likely dumped by the credit card issuer, and not the other way around -- banks have been aggressively weeding out "high-risk" customers over the past couple years, and getting them off their books as quickly as possible. In a controversial move, American Express Co. (AXP) even offered some customers $300 to pay off their existing balance and close out their account.
For entertainment purposes only; information provided may be inaccurate, incomplete, or out of date. No warranties or guarantees provided. Stocks, precious metals and ETFs can lose value.