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Friday, May 24, 2024
Walmart and Capital One credit card break-up
Today's news is that Capital One will no longer be the exclusive issuer of the Walmart co-branded credit card. This decision should not have come as a surprise given the public disagreement between the two companies. Whether this change is good or bad for Walmart cardholders remains to be seen. As Capital One is still dealing with criticism of poor customer service, they will likely handle the transition of Walmart-branded cards to proprietary cards delicately. If Capital One wants to make the best of this situation and make lemonade, they will need to go above and beyond to sweeten the deal for cardholders. Let's wait and see.
Best wishes to all for safe and happy Memorial Day holiday. Thinking of those who have served and currently serve our nation.
Tuesday, April 30, 2024
The opportunity for exponential growth in telemedicine is firmly with Teledoc
There were two disappointing news stories this week regarding UnitedHealth Group and Walmart's announcement about retreating from telemedicine. Both organizations had invested heavily in telemedicine and had made good progress in the market. They had similar visions of expanding access and reach to improve healthcare. UHG's Optum Virtual Care had also made a difference in behavioral healthcare with high utilization. However, the data apparently informed management differently, and both UHG and Walmart are shuttering this exciting, high-potential area of their respective businesses. This leaves Teledoc (NYSE: TDOC) as the clear leader in the telemedicine space in the United States. Teledoc had reached a peak of $330/share during the COVID-19 pandemic but has since seen a decline (stock price on 4/30/24 opened at $13.21). The CEO of Teledoc resigned on 4/5/2024.
Nonetheless, with the increasing reliance of consumers on mobile devices and the expansion of broadband in the US, the business case for telemedicine is promising, and Teledoc is the dominant survivor. As of 2023 Teladoc was serving "80 million people across its virtual care products"[with 56 million paid members in the United States. With the change in leadership at Teledoc and in the marketplace, I am hopeful that Teledoc adopts proven methods for reaching consumers and profitably increases adoption. I am optimistic that Teledoc will re-emerge as the darling of healthcare by start of 2025.
Thursday, April 18, 2024
Xbox Mastercard card seems to be winner
Mastercard's April 18, 2024 announcement about the Barclaycard/Xbox card is worth paying attention to. It will be interesting to learn about the demographics, size of credit lines, and utilization of such a program.
The Xbox Mastercard, issued by Barclays, now available in the U.S. with more value
APRIL 18, 2024 | WILMINGTON, DEL; PURCHASE, NY; REDMOND, WASH
https://www.mastercard.com/news/press/2024/april/the-xbox-mastercard-issued-by-barclays-now-available-in-the-u-s-with-more-value/
No annual fee card converges virtual experiences and everyday purchases, allowing cardmembers to earn points on purchases in the Microsoft Store, dining delivery, streaming services, and more
In September 2023, Xbox Insiders received early access to the Xbox Mastercard, Xbox’s first-ever co-branded credit card in the United States, issued by Barclays US Consumer Bank. Today, the card is available in all 50 states to qualified US residents 18 years of age and older.
With no annual fee and a bonus of 5,000 card points after the first purchase (a $50 value), the card, with the flexibility of use across contactless payments and digital wallets, is designed to seamlessly integrate into players’ lifestyles, providing card points and benefits for their purchases in the Microsoft Store and everyday purchases. The Xbox Mastercard is equipped with five iconic designs and the option to customize with players’ Xbox gamertag to add a personalized touch.
The Xbox Mastercard offers benefits for new and existing cardmembers, including three months of Xbox Game Pass Ultimate for new Game Pass members after their first purchase, 5X points on eligible products at the Microsoft Store, 3X points on select streaming and dining delivery services, 1X card points for all other everyday purchases, and more. Cardmembers also receive access to their FICO® Credit Score for free, and the benefits of the Mastercard network including ID Theft Protection™, Zero Liability Protection and Global Services for emergency assistance for added peace of mind. For those interested in building financial knowledge on credit scores, fraud prevention, budgeting and more, visit Barclays Money Basics.
To provide even more meaningful value for players, additional benefits are available today for new and existing cardmembers:
- Two three-month codes to gift to friends or family to try Game Pass Ultimate for the first time, with $7,000 or more spent within the first 12 months of opening the card account.
- Upgrade to Level 2 of Microsoft Rewards to earn faster rewards.
- Boost the volume with three free months of Spotify Premium Individual for new and existing cardmembers (for new Spotify Premium Individual users only). Terms apply.
- More options to redeem card points, including on Xbox consoles, in-game and in the Xbox App for PC. Card points can now be redeemed for purchases of consoles, accessories, Xbox Gift Cards, and more.