5 Credit Card Predictions for 2019

5 Credit Card Predictions for 2019

It’s been a busy year for credit cards with plenty of good news for TPG readers: some great new offerings, big moves from Capital One to become a major player in the points arena, loads of 100,000-point bonus opportunities and much more. As 2018 comes to a close, what can you expect to see in the new year? Today, we peer into a crystal ball for credit cards to offer some predictions for 2019.

1. Contactless Cards Will Enjoy Crazy Growth

Keep an eye on your mailbox for a new credit card that will let you skip the process of swiping or inserting for payment. Chase announced a shift to contactless payments in November, but the big bank’s move is only the beginning. In a September earnings call, Visa CEO Alfred Kelly told listeners that he believes the company will issue 100 million contactless cards by the end of 2019.

While many merchants will need to adopt contactless-enabled payment terminals, plenty of retail locations are ready for the contactless revolution. According to data from Visa, 79% of quick-service restaurants and 77% of drugstores and pharmacies are ready to accept payments via NFC communications. Get ready to tap in the new year.

In 2019, expect to tap cards much more often than swipe and insert. (Photo via Shutterstock) 2. More People Will Get Credit Cards

Some of those cards will arrive in the mailboxes of consumers who may have struggled to get approved for a new line of credit. By the middle of 2019, most lenders will be able to use UltraFICO, a new method of calculating a credit score. The new approach uses data from consumers’ bank accounts to gauge their creditworthiness. Instead of relying solely on the traditional elements that make up a credit score, strong money management habits (saving on a monthly basis, avoiding overdrafts and other basics of personal finances) can play a role in boosting scores.

3. Banks Will Work to Stay Ahead of Savvy Points Strategists

As banks welcome a new cast of credit card holders with lower credit scores (the UltraFICO score seems primed for those with scores in the upper 500s to lower 600s), they will also be focused on the opposite end of their customer bases: those who are opening premium credit cards with plans to maximize earning opportunities and never pay a dime of interest.

Over the past three years, we’ve seen banks compete with each other to spur new credit card applications and attract new customers. From the Chase Sapphire Reserve with a 100,000-point sign-up bonus in 2016 (currently 50,000 points after spending $4,000 in the first three months) to Capital One’s recent massive bonus offers, banks have been focused on outdoing one another. In 2019, banks will shift their focus to outdoing their customers who are winning the points game. Consider the news in J.P. Morgan Chase’s Q2 earnings announcement that credit card customers were cashing in points at a pace that the bank didn’t forecast. “This is maybe larger than we have seen over the course of the last several years,” Marianne Lake, CFO of JPMorgan Chase, said at the time. “We do pretty regularly review our rewards liability in light of evolving consumer behavior.”

 

 

Score one for TPG readers who have managed to rack up more rewards than their card issuers predicted in 2018. Looking ahead, though, it’s important to recognize that banks don’t want unexpectedly large chunks eating into their profits. I don’t expect to see a big drop in sign-up bonuses drop in the new year, though. Instead, I expect more adjustments to the fine print that echo the decline of price protection and other benefit cuts we saw in 2018.

4. Annual Fees Will Continue to Increase

This isn’t really a will-this-come-true prediction; it’s a continuation of a change that no one wants to see. It started in 2018 with the announcement of a $45 bump for Citi Prestige card holders (not currently open to new applications) and the $145 bump for anyone with the Business Platinum Card® from American Express. Be on the lookout for a notification from your issuer with similar news next year.

While paying a higher annual fee for a credit card isn’t on anyone’s list of New Year’s Resolutions, it’s important to point out that credit card issuers are balancing more fees with some more benefits. However, those perks will only matter to certain people. For example, if you use WeWork and buy Dell products, the changes on the Amex Business Platinum are great. As more issuers hike their fees in 2019, card holders will need to calculate whether the price tag is actually worth it.

5. Airbnb Will Enter the Credit Card Landscape

As brands compete for your attention, the most valuable place to be is inside your wallet. In 2019, get ready for some notable new names to enter the credit card landscape. Lyft is working on its own credit card with Synchrony, and it seems likely that the product’s debut will be timed near the company’s IPO.

I’ll be watching for news from Airbnb, though. While there are no rumors about the home rental company getting into the credit card game, it seems like a logical step that could make a loyalty program — a concept that has been especially challenging for Airbnb — a reality. And if Airbnb really wants to compete with Marriott, Hilton and the rest of the traditional travel industry, they’ll need to make staying in one of their properties feel more rewarding — not just more affordable.

What else will happen in 2019? Share your predictions in the comments section below.

Don’t be surprised if Airbnb enters the credit card market next year. (Photo via Shutterstock.)

 

Featured image by Sasha Stories via Unsplash.

10 of the Coolest Travel Gadgets of 2018

It’s been a huge year for travel, loyalty and credit cards (hello, American Express® Gold Card!) but 2018 has also brought us some very impressive travel-friendly tech, from noise-canceling headphones to smartphones and more.

In our roundup of the year’s top travel tech, we’re focusing on big-ticket items: You can find a good enough plug adapter for a couple of bucks, but smartphones, laptops and even wireless headphones offer a better return on your (sometimes hours of) internet research.

So dig around in your carry-on bag and see if you need to make an upgrade (hint: if you notice a tangle of headphone wires, it may be time).

A guest takes pictures of the new Google Pixel 3 smartphone. (Photo by Drew Angerer/Getty Images) The Best Android Phone Google Pixel 3 XL

My top Android pick for 2018 is the Google Pixel 3 XL. It has native support for Google Fi (more on that below), and offers a killer photo mode called Night Sight that captures incredible still photos in low-light, as you can see in my tour of United’s new 787-10. Even if you missed Google’s outrageous holiday deal, it’s available at a reasonable price of $899. And if you don’t need a 6.3-inch screen, you can save $100 by opting for the smaller Google Pixel 3 instead.

Runners-Up: There were a number of top contenders this year, including the very affordable $429 OnePlus 6T and the gigantic $999 Samsung Galaxy Note 9.

The Best iOS Phone iPhone XR

Normally, you’d assume the top-of-the-line option will be the best, but when it comes to Apple’s latest batch of iPhones, I’m not convinced. The iPhone XS Max is a bit too large for smaller hands, and tremendously expensive, at $1,249 for 256GB (the minimum storage you’d need if taking full advantage of its photo chops). That’s why the iPhone XR is the smartphone most Apple enthusiasts should get this year, because at $799 for a respectable 128GBs, you’re saving an awful lot of money. You are forfeiting an OLED screen (the XR’s is LCD) and 3D Touch, and you don’t get a dedicated 2x lens. But Apple’s still managed to add Portrait mode, thanks to additional “Focus Pixels” — with support for wide-angle, shallow-focus shots as well. And don’t forget the XR’s fun colors. Personally, I’m a fan of the (Product)Red.

The Best Mobile Network Google Fi

OK, so it’s not a tangible device you can toss in your suitcase. And Google’s own cellular service has been around in its current form since 2015. But this year, Project Fi was rebranded to Google Fi, and the company officially added iPhone support, making it a really compelling option for millions more users. All of the service’s best aspects are still here as well, including free data-only SIMs for secondary mobile devices and $10/GB data in most countries around the world.

A Dell XPS 13 Developer Edition gaming laptop PC. (Photo by Olly Curtis/Maximum PC Magazine via Getty Images) The Best Laptop Dell XPS 13

I’m a Mac guy, I’m not going to lie. But 2018’s top PCs have a lot going for them, especially since you can download streaming apps like Netflix that let you store content locally ahead of a long-haul flight. Dell’s XPS 13 is a bit more traveler-friendly, with a weight of 2.67 pounds, a widescreen display where content fills the screen and a starting price of $1,000.

Runners-Up: My initial top pick was the Huawei MateBook X Pro ($1,200), but at around three pounds, it’s a tad too heavy to qualify.  If you aren’t willing to venture beyond Apple’s ecosystem, it’s not a bad time to upgrade there, either. The new MacBook Air (also from $1,200) is a huge step up, with a smaller footprint and a high-res Retina display.

The Best Headphones Sony WH-1000XM3

It may not have a catchy name, but Sony’s WH-1000XM3 ($348) is the noise-canceling set to beat. This year’s model is the latest and greatest version of our 2017 pick, and reviewers agree that it does an exceptional job of canceling out ambient sound, and it’s the first Sony set to support USB-C charging, reducing cable clutter if you happen to carry another USB-C device. But my favorite feature of all: a fast charging mode that gets you five hours of playback with a 10-minute charge, and a battery that lasts up to 30 hours if you have enough time to fill it all the way.

(Images via Amazon) The Best Photography Equipment Sony RX100 VI

I’ve been a huge fan of Sony’s pocketable RX100 series since the very beginning, but my favorite model is the RX100 III (or M3), which does everything a frequent traveler needs, and then some. The RX100 VI is the 2018 model, and at $1,198, it does not come cheap. But you do get a lot of bang for your buck. A 24-200mm lens, large 1-inch sensor, 4K video, a tilting LCD and the “world’s fastest” autofocus system — all in a (relatively) tiny package.

DJI Osmo Pocket

DJI has brought its drone-making prowess to the ultra-portable photography space. The $349 Osmo Pocket, which went on sale just this month, lets you shoot professional-quality video with a device that you can literally carry around in your back pocket. A built-in LCD lets you frame shots directly on the screen, or you can slide it onto your smartphone for more control and a larger display.

(Image via DJI.com) DJI Mavic 2 Zoom

There’s a reason I’m including a second DJI product on this list: The $1,249 Mavic 2 Zoom is one incredible drone. It’s the first DJI aircraft with a 2x optical zoom lens, letting you get much closer to your subject without moving an inch. That feature was especially useful at the St. Regis Bora Bora, which doesn’t seem to like when guests fly directly above the resort. You can also fly longer and farther than before, thanks to the 31-minute battery and 5-mile 1080p streaming range.

The Best Tech Accessories Apple Watch Series 4

The $399 Series 4 is the first Apple Watch I’ve owned since the company launched its original wearable in 2015, and it was worth the wait. I love the health and fitness tracking, larger screen and traveler-friendly features like mobile boarding passes and instant flight notifications. A $100 upgrade gives you cellular functionality as well, letting you place calls and use other features even when you don’t have a phone nearby.

Fire TV Stick 4K

While some hotels now offer smart TVs, with access to your own Hulu and Netflix accounts, the vast majority don’t (and probably won’t for years to come). But armed with Amazon’s $35 Fire TV Stick 4K, travelers can bring content to their rooms on the road, assuming there’s a manageable Wi-Fi network and a TV with HDMI support. Plug it in, hop online and get instant access to many of your favorite shows. You’ll never pay $20 for an in-room movie again.

For more on TPG’s gadget picks and other traveler-friendly gifts, see:

The Ultimate TPG Holiday Gift Guide 14 Best Gifts for the Extravagant Traveler 10 Gifts for $10 or Less

Featured image via Shutterstock.