Editor’s note: Each Monday, Talk Business & Politics provides “Money Talk,” a wrap-up of banking and financial news.
CASH STILL KING IN FRAGMENTED PAYMENTS LANDSCAPE, STUDY SAYS
As consumers encounter a growing array of ways to pay — from cash and cards to mobile wallets and person-to-person (P2P) apps — a ‘new norm’ is emerging as consumers embrace a blended mix of payment options in today’s fragmented payments landscape.
The 2016 U.S. Health of Cash Study by Cardtronics finds that people are individually defining payments convenience by embracing today’s unprecedented menu of ways to pay. Consumers are using a blended mix of payment options, with 85% using at least two different types of payment methods each month and 55% using at least three.
Cash still has carved a prominent place within that blended mix and consumers’ everyday lives. In fact, cash is the most commonly used form of payment in brick-and-mortar stores at 89% — compared with 74% for debit cards, 66% for credit cards, 18% for store mobile apps and 17% for mobile wallets. The study also found that 56% of consumers use cash as frequently as they did one year ago, and 23% are using it even more frequently.
For additional insight from Health of Cash Study, download the white paper.
Illuminating the ‘new norm’ are the payment practices of millennials, now the largest and most tech-savvy demographic group. The study found that millennials are using all the major payment methods more frequently than they did a year ago, except checks. And despite the continued increase in the number of payment options, two-thirds (67%) of millennial digital payment users still use cash regularly, despite more payment methods being available today.
IRS PROGRAM OFFERS U.S. TAXPAYER WITH OFFSHORE ACCOUNTS PATH TO COMPLIANCE
In an effort to get Americans to bring undisclosed offshore accounts back into the U.S., the federal Internal Revenue Service (IRS) is offering taxpayers existing paths to come into full compliance with their federal tax obligations.
Updated data from the IRS shows 55,800 taxpayers have come into the Offshore Voluntary Disclosure Program (OVDP) to resolve their tax obligations, paying more than $9.9 billion in taxes, interest and penalties since 2009. In addition, another 48,000 taxpayers have made use of separate streamlined procedures to correct prior non-willful omissions and meet their federal tax obligations, paying approximately $450 million in taxes, interest and penalties.
OVDP encourages taxpayers to voluntarily disclose foreign financial accounts and assets now rather than risk detection by the IRS at a later date and face more severe penalties and possible criminal prosecution. The IRS developed the Streamlined Filing Compliance Procedures to accommodate taxpayers with non-willful compliance issues.
Submissions have been made by taxpayers residing in the U.S. and from those residing in countries around the globe. The streamlined procedures have resulted in the submission of more than 96,000 delinquent and amended income tax returns from the 48,000 taxpayers using these procedures.
VISA ANNOUNCES CEO SUCCESSION PLAN
Credit card giant Visa Inc. announced that Charlie Scharf is resigning as CEO effective Dec. 1, 2016, and the board of directors has unanimously voted to appoint Alfred Kelly, Jr. as the next chief executive.
Kelly, a current Visa board member, is the president and CEO of Intersection Co. and the former president of American Express Co.
Scharf informed the board of directors that he decided to resign his position as CEO and board member because he could no longer spend the time in San Francisco necessary to do the job effectively. The board of directors did a rigorous review of a diverse set of internal and external candidates before offering Kelly the position. He will join the company on Oct. 31 as CEO-designate. As part of the transition, Scharf will serve as an advisor to Mr. Kelly beginning Dec. 1 for several months.