Issuers must weigh the risk of missed payments during the pandemic - Business Insider

And the pandemic has had a particularly strong impact on spending for travel, a key category for issuers, per . Issuers have a number of cobranded cards and benefits tied to airlines and hotels that are likely to hold much less appeal to consumers in the wake of the crisis. And considering Amex saw its volume plunge in March and Discover is seeing a serious drop in April, the coronavirus is likely set to do even more damage to issuers' performances in Q2.

The pandemic is making it hard for some cardholders to make card payments, raising questions about how much issuers should encourage spending. Millions of cardholders are skipping their credit card bills due to the effects of the pandemic, per to miss a credit card payment in 2020, with many citing a lack of funds as the reason why, but now the coronavirus is exacerbating the issue. So, although it makes sense for issuers to push cardholders to spend more with new perks to raise their falling sales volumes, they must be wary of the possibility that the cardholders they're encouraging to spend won't be able to make their bill payments later on.

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