Press play on photo to watch the video Do you want to listen to this videoepisode instead? Play the audio only. Service providers' key expectations from 5G and toward 6G era are to successfully manage the immense traffic growth and leverage mobile networks to support new use cases. To put the expectations into concrete numbers – the projections say that 5G subscriptions will reach 1 billion, and the average monthly usage per smartphone will surpass 15 GB by the end of this year and then grow to 40 GB by the end of 2027. As mid-band brings the potential of high capacity to explore new use cases with high bandwidth demand, new considerations appear on how to get the most out of 5G in Cloud RAN, impacting service providers' strategy of designing their 5G networks and selecting the best RAN processing option. Talking about processing and the time-critical nature of some elements, different parts of the RAN software stack have different requiremen...
Get link
Facebook
X
Pinterest
Email
Other Apps
Discover says buy now/pay later won't cannibalize credit cards - American Banker
Get link
Facebook
X
Pinterest
Email
Other Apps
Discover Financial Services' credit card loan portfolio is beginning to grow again amid higher consumer spending on gasoline, restaurants, retail and travel.
Discover Card sales volume rose 25% from a year earlier in the fourth quarter to $51 billion, Discover announced Wednesday.
The Riverwoods, Illinois-based company's overall loan growth rose 4% in 2021, and credit card payment rates remain elevated above prepandemic levels, the company said.
In a conference call with analysts Thursday, Discover CEO Roger Hochschild brushed off concerns that the booming buy now/pay later consumer finance trend is hurting Discover's ability to grow loan volume.
"There's nothing to support a view that buy now/pay later is having any impact on payment rate," Hochschild told analysts.
But Discover also doesn't want to miss out on opportunities in the BNPL arena.
"We are actively looking for opportunities to extend BNPL financing to customers through credit and debit cards," Hochschild said during an interview. "Over time, I think the consumer's desire to spread out payments — especially for big-ticket items — is real."
"There's nothing to support a view that buy now/pay later is having any impact on payment rate," Discover CEO Roger Hochschild said.
Discover
He declined to comment on the card network's partnership with Sezzle to point-of-sale installment loans to Discover merchants, noting that the effort is still in its early stages.
There is an opportunity for Discover to focus on making installment loans for big-ticket items without cannibalizing credit card volume, Hochschild said.
"The vast majority of BNPL loans are subprime, going to people who don't have access to credit cards, so it's not replacing any of our volume," he said.
The notion that younger adults are eschewing credit cards is incorrect, according to Hochschild.
"I totally reject the idea that younger consumers can't manage credit — it's a myth. We're seeing higher take-up rates for credit cards in the latest generation of students," he said.
New credit card accounts were up 11% in the fourth quarter over the same period a year earlier, and for the full year card accounts were up 13% over prepandemic conditions in 2019 Discover said.
Discover's credit card interchange revenue rose 43% to $345 million in the quarter.
Charge-off rates for delinquent accounts fell to 1.4% from 2.4% a year earlier, enabling Discover to release $1.4 billion in credit reserves, the company said.
Transaction volume over Discover's Pulse debit network rose 18% year over year, an increase attributed to higher general post-pandemic spending. Discover's Diners Club card volume rose 17% quarter over quarter, reflecting a moderate improvement in global travel spending, according to Discover.
Discover's revenue for the three months rose 4% year over year to $2.9 billion and its profit rose 34% to $1.06 billion.
Press play on photo to watch the video Do you want to listen to this videoepisode instead? Play the audio only. Service providers' key expectations from 5G and toward 6G era are to successfully manage the immense traffic growth and leverage mobile networks to support new use cases. To put the expectations into concrete numbers – the projections say that 5G subscriptions will reach 1 billion, and the average monthly usage per smartphone will surpass 15 GB by the end of this year and then grow to 40 GB by the end of 2027. As mid-band brings the potential of high capacity to explore new use cases with high bandwidth demand, new considerations appear on how to get the most out of 5G in Cloud RAN, impacting service providers' strategy of designing their 5G networks and selecting the best RAN processing option. Talking about processing and the time-critical nature of some elements, different parts of the RAN software stack have different requiremen...
With president Cyril Ramaphosa's State of the Nation Address due to take place on Thursday, and rumours of an imminent cabinet shakeup abounding, it's unsurprising that National Treasury's eTender Portal is relatively quiet this week. That's not to say there's little of interest in the issue though. In fact, a notice from beleaguered Eskom is likely to attract attention from all sectors of society. In the tender, the utility states it wishes to replace its existing customer relationship management (CRM) solution, including the CS Online web portal and MyEskom customer mobile application. The tender documentation notes Eskom's existing applications and architecture are "fragmented with limited functionality and do not provide a holistic, omni-channel customer engagement experience that is seamless across channels (telephony IVR, web portal, mobile app)". What's more, it says it would like to move as many of its costly telephony interaction...
In the early months of 2020, as COVID-19 left many small and medium-sized businesses struggling in its wake, Virginia Tech Pamplin College of Business alumnus and Jives Media founder Jay Ives saw an opportunity to serve his local community. "Businesses were hurting, and I wanted to do everything in my power to support them," Ives said. What he couldn't have foreseen is how taking this opportunity to serve would, over the course of just two years, rapidly transform his career and earn him a spot on Forbes' 30 under 30 list among the world's top marketers. The 29-year-old entrepreneur and CEO started his professional journey as a marketing management major at Virginia Tech, completing his undergraduate degree in 2016. "I knew to be a 'lethal marketer,' I had to have the proper support, training, and education to develop both qualitative and quantitative marketing skills." He chose to enroll in Pamplin for the world-class education he knew he woul...
Comments
Post a Comment