June was a busy month for the financial services industry, with plenty of product launches and regulatory announcements!
Wells Fargo Launched the Attune World Elite Mastercard
On June 5th, Wells Fargo announced the launch of the Attune World Elite Mastercard, a no-annual-fee card with a niche rewards structure. The card offers 4% cash back on three categories: self-care; sports, recreation, and entertainment; and impactful purchases, and 1% cash back on anything else. While Wells Fargo has yet to market the card, expect direct mail offers to be sent in the coming months.
Why This Matters: While the rewards offered by the Attune World Elite Mastercard are niche, they are specific to the urban Gen Z population. As a no-annual-fee card, expect these relatively wealthier consumers to pair it with other cards in their wallet, pulling them into the Wells Fargo ecosystem long-term.
Apple Announced the Upcoming Launches of Tap to Cash and Tap to Provision
Apple made a splash at WWDC this month when it announced the new features coming to iOS 18 in the fall. Notable additions are Tap to Cash and Tap to Provision, which enhance customer convenience: iPhone users can pay each other by simply tapping their phones together, and add cards to their Apple Wallet by tapping it on the back of their iPhone. The brand also announced its upcoming AI (in this case, Apple Intelligence) integration. It will be highly integrated into iOS 18, optimizing features such as email and notifications, on top of its generative language and image features. Though later to the AI game than many other brands, consumers will likely view Apple as prioritizing quality over speed, deepening brand trust. While Apple has yet to market these upcoming features, it greatly increased volume (client-link only) for Apple Cash ahead of the announcement, ensuring that its P2P payment system was top of mind before announcing an extra layer of convenience.
Why This Matters: This added layer of convenience, combined with Apple’s focus on security features, will make the brand a strong rival to P2P payment brands such as Venmo or CashApp. Expect these brands to innovate to keep up, adding additional security features and emphasizing the features that Apple doesn’t have, such as a social timeline.
Varo Teased Several New Products
The fintech Varo is gearing up with new products and features, hinting at a Line of Credit and testing a unique direct deposit incentive. The brand introduced the Line of Credit feature to consumers over email and provided best practices for eligibility, all of which included use of its products. On the other hand, Varo trialed various timeframes and images throughout June 2024 for its paycheck match, hinting at a broader marketing push coming soon as the brand determines which strategies work best.
Why This Matters: By announcing several upcoming products in a short period of time, Varo proves its commitment to rewarding customer loyalty. Through Line of Credit, the brand has the unique opportunity to provide loans to underserved individuals during a time when fintech marketing spend has dropped. Similarly, its unique paycheck match presents a convenient way for consumers to earn a little extra cash.
A Federal Judge Rejected the Visa-Mastercard Swipe Fee Settlement
Noteworthy in the regulatory space, a federal judge rejected (client-link only) Visa and Mastercard’s settlement over swipe fees. The proposed deal involved reducing rates by 0.04 percentage points for three years and capping them at a rate seven basis points lower than the current average until 2030. While Visa and Mastercard expressed disappointment with the ruling, retail proponents claimed that the settlement didn’t do enough. They called for Congress to pass the Credit Card Competition Act, which they asserted would bring competition to break the Visa-Mastercard duopoly.
Why This Matters: The quick rejection of this settlement represents the increased regulatory scrutiny and heightened standards of the financial services industry. This, combined with the CFPB’s War on Fees, could pave the way for more stringent and lasting legislation, potentially lowering costs for both merchants and consumers alike while leaving payment providers to have to find other sources of revenue.
Comperemedia Content Published this Month
Are you a Comperemedia client? Peruse these titles and more published just this month. And don’t forget to keep an eye out for the Financial Services Weekly Digest, published every Friday!
Predictions Pieces: How will marketing evolve?
Innovations Pieces: What’s new, and why is it important?
Trends Pieces: Where has the market been moving?
Audience Strategies: How can we best reach different demographics?
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