Why all brands need to care about a financial services revolution
Credit cards rewards have a strong influence on how Americans finance their leisure time. That means regulatory shifts could affect just about every business that processes transactions, says Ipsos’ Rhett Skelton.


From vacations booked with rewards miles to shopping sprees funded by cash-back benefits, many Americans finance their leisure with their credit card points.
A regulatory shift could change this. While some proponents of the Credit Card Competition Act say change is needed in the credit processing industry to lower merchant fees, others warn this policy change could spell an end to valuable rewards programs.
Three in four Americans say they have a credit card that gives them rewards, and two in three of them prefer to use that card because of the points it earns, according to the Ipsos Consumer Tracker. That means this proposed policy is high stakes not just for financial services players, but for every business that processes transactions.
Payments companies and lenders may not be able to predict the future, but they can monitor regulatory moves and consumer sentiment and incorporate foresight into their business strategies to develop messaging, steer stakeholder engagement efforts, and/or prepare for potential outcomes. From today’s proposals to tomorrow’s regulatory shifts, businesses can’t afford to be out of the loop when their business model and customer base are at stake.
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