PYMNTS-MonitorEdge-May-2024

Ex-PayPal CEO Wants Middle-Income Earners to Reach ‘Nirvana’ With Credit Card Platform

Former PayPal CEO Bill Harris has launched Nirvana Money, a credit card product for middle-income earners as consumers work to keep their heads above water amid inflation.

The company combines “the best features of a credit card, a bank account and a gamified rewards program into a single card,” according to a Monday (Oct. 24) news release.

“Nirvana Money is helping those who are ready to have a different relationship with money,” Harris said in the release. “A relationship with less worry, more control, and even some fun to help get on a credit and savings ladder and progress towards a healthy financial life.”

In addition to Harris, Nirvana Money’s executive team includes veterans of Apple, CareerBuilder and Tangerine Bank, as well as employees from American Express, Capital One, Marcus by Goldman Sachs and Meta, the release stated.

Less worry is something many consumers would welcome these days, as PYMNTS’ research has found.

In “New Reality Check: The Paycheck-to-Paycheck Report: The Employment Edition,” a collaboration between PYMNTS and LendingClub, we learned that attempts to keep pace with inflation through wage hikes and job changes have come up short.

Read more: Many Paycheck-to-Paycheck Consumers Seek Relief in New Jobs

PYMNTS research showed that 65% of employed consumers were living paycheck to paycheck last month, a 5-percentage point increase from September 2021. This oscillating number has shown “a gradual upward slope” from a low point of 57% in May 2022.

The study also showed pessimism from most respondents about the notion of landing new jobs with more pay that can relieve them of paycheck-to-paycheck status.

“Optimism about finding a new job that fits both wage demands and an employee’s qualifications is generally low, regardless of demographic: Only 34% of consumers find it very or extremely likely they will find such a job in the next three months,” the study stated.

Yet even with the pressure from inflation, PYMNTS research has also found that consumers value credit and want to avoid the risk of falling behind on credit card debt.

Consumers would prioritize mobile phones and credit card bills over other expenses. Six in 10 of the consumers surveyed would prioritize their phones, while 55% placed credit cards at the top of the list.

PYMNTS-MonitorEdge-May-2024