The news: The turmoil in the US banking sector is proving to be a boon for many short sellers, but their profits may soon come under scrutiny as the Securities and Exchange Commission (SEC) considers a probe into abusive trading practices, per Reuters.
The news: Block raised its full-year profit guidance after Cash App use surged in the first quarter in spite of allegations it facilitates fraud.
The news: Uber expanded its partnership with Stripe to cut checkout friction by letting customers pay with bank transfers, according to a press release.
Here's how it works: Uber will use Stripe’s payments platform for Uber Rides and Uber Eats in markets including the US, Australia, and Japan.
The data: Consumers are relying more on cash to limit their spending as they contend with sustained cost-of-living pressures.
Research from The Harris Poll commissioned by Credit Karma found that:
The news: Identify fraud is terrorizing the financial sector, costing roughly a quarter of banks nearly a half a million dollars in losses in the last year, according to a study from Regula and Sapio Research.
The news: Synchrony's purchase volume inched up 3% year over year (YoY) to hit a first-quarter record of $41.56 billion. Growth was marginally higher than last quarter and a year ago.
By the numbers: Bank of America's total payment volume hit $1.1 trillion in Q1 2023, per its earnings presentation—a 9% year-over-year (YoY) increase. Growth slowed from 14% YoY in Q1 2022.
Credit and debit, which make up 75% of the bank's payment transaction volume, increased 6% YoY.
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The news: After a turbulent Q1, banks are preparing to release their earnings starting this week. While major US banks were generally shielded from the runs that regional banks faced, many other economic factors are influencing earnings. Here's what we expect to see.
Net interest income will be a bright spot, but will experience some pressure.
The news: Walmart sued Capital One to terminate their credit card partnership, which includes both a co-brand Mastercard and a private-label card, according to The Wall Street Journal. The retailer alleged that Capital One didn't meet the terms of their contract, citing issues with customer service, card replacement, and transaction posting.
Walmart reportedly hopes to either renegotiate the economic terms of the partnership—including those related to loss-sharing—or end the program early.