This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Nearly a third of small businesses that assess credit card surcharges say that customers cancel purchases when they see the extra fee at checkout, according to J.D. Power survey released last week.  The data and analytics firm queried roughly 4,400 U.S. small businesses and found 35% include surcharges for customers who use credit cards, up slightly from 34% in th ...

Core Insights - The private equity industry is facing significant challenges, with a backlog of at least 31,000 companies valued at $3.7 trillion, surpassing last year's record backlog of 29,000 companies valued at $3.6 trillion [2] - Many private equity firms are struggling to find profitable exits for their investments, with some firms unable to sell companies at acceptable prices and others stuck with non-performing "zombie companies" [3] - Despite current difficulties, there are optimistic forecasts for the private equity market, with predictions of improved dealmaking and the influence of artificial intelligence on investment opportunities [4][6] Industry Backlog - The private equity sector is currently sitting on a backlog of 31,000 companies valued at $3.7 trillion, indicating a growing challenge for firms to manage their investments effectively [2] - This backlog is an increase from the previous year, which had 29,000 companies valued at $3.6 trillion, highlighting a trend of increasing investment stagnation [2] Exit Challenges - Private equity firms are experiencing difficulties in exiting their investments, with specific examples such as Thoma Bravo's inability to sell J.D. Power and ConnectWise at acceptable prices [3] - Roark Capital has also faced challenges in moving forward with an IPO for Inspire Brands, the parent company of Dunkin' [3] - The presence of "zombie companies" that are neither growing nor attracting buyers adds to the exit challenges faced by private equity firms [3] Future Outlook - Analysts predict a potential recovery in the private equity market, with Goldman Sachs CFO noting improvements in dealmaking and the emergence of "jumbo" deals [6] - The private market outlook for 2026 suggests a "new phase of measured momentum," with platform buyouts expected to account for at least 25% of total private equity deal activity [6] - The integration of artificial intelligence in portfolio companies is seen as a key factor that could enhance the attractiveness of tech-enabled mid-market businesses for private equity investment [4]

Core Insights - More than a third of car buyers adjusted their purchase plans due to tariffs, with 36% indicating that tariffs influenced their buying decisions, and 87% of those buyers made their purchases sooner than originally planned [1][7] - The survey conducted by J.D. Power highlights the significant impact of tariffs on consumer behavior and spending patterns in the automotive sector [5][7] Impact on Prices - 15% of respondents reported paying more than they had initially planned for their vehicle purchases, indicating a direct effect of tariffs on pricing [2] - Although tariffs have not yet significantly increased consumer prices, it is anticipated that manufacturers will begin passing on costs to consumers, with predictions of a 4% to 8% rise in vehicle prices for 2026 models [4] Economic Implications - The shift in buying habits among car buyers due to tariffs reflects broader changes in consumer spending patterns, which can have extensive repercussions for the U.S. economy [3][5] - Economists note that tariffs have contributed to increased prices and reduced job creation across various industries, showcasing the widespread economic effects of these trade policies [5]

Core Insights - The article discusses a new trend in banking called "soft switching," where customers are gradually changing banks by opening additional accounts at new financial institutions and shifting their transactions over time [1][2][3] Group 1: Soft Switching Trend - "Soft switching" is characterized by customers opening second or third checking accounts at new banks while maintaining their old accounts [2][4] - Over half of new checking accounts opened in Q3 2025 were additional accounts by customers who already had existing accounts [3] - The trend is emerging despite the historical reluctance of customers to switch banks, as the average American keeps the same bank account for 17 to 19 years [7] Group 2: Factors Driving the Trend - The ease of opening new bank accounts and the abundance of financial service offers are contributing to the soft switching trend [6] - Consumers are increasingly motivated to switch banks due to poor experiences with their current banks, leading them to explore new options [12] - Convenience is the primary factor influencing consumers' decisions to select a new bank, with fewer customers citing reputation, lower fees, or promotional offers [13] Group 3: Impact on Financial Institutions - Chime, a financial technology company, has emerged as a leader in the soft switching trend, capturing the largest share of new checking accounts in Q3 2025 [9][10] - Chime's success is attributed to its fee-free banking model and appealing features, such as early access to pay [10][11] - The conversion rate for Chime, indicating the percentage of potential customers who open accounts, was 77% in Q3, the highest among institutions surveyed [11]

Core Insights - JANA Partners has partnered with NFL star Travis Kelce and other executives to invest in Six Flags Entertainment Corporation, aiming to enhance the theme park experience and potentially increase shareholder value [1][6][7] Investment Details - The investment group will collectively hold an economic interest of approximately 9%, valued at around $200 million, making them significant shareholders in a company estimated to be worth $2.2 billion [2] Leadership and Experience - Glenn Murphy, with a 30-year background in strategic leadership at major brands like Gap, Inc., and Dave Habiger, former President and CEO of J.D. Power, are part of the investment team, bringing extensive experience to the initiative [9] Strategic Goals - JANA Partners intends to implement substantial changes at Six Flags, focusing on improved marketing and customer experience, as well as exploring potential sale options to enhance share price, which has suffered due to adverse weather and declining park visits [6][7] Personal Connection - Travis Kelce expressed a personal connection to Six Flags, highlighting his lifelong enjoyment of the parks and his desire to contribute to their future [5][10]

Core Viewpoint - JANA Partners has acquired a significant stake in Six Flags Entertainment Corporation, believing it presents an opportunity for substantial shareholder value creation [1][2] Group Composition - The investment group includes Travis Kelce, Glenn Murphy, and Dave Habiger, collectively holding an economic interest of approximately 9% in Six Flags [1][2] Engagement Plans - JANA plans to engage with Six Flags' Board of Directors and management to explore ways to enhance shareholder value and improve the guest experience [2] Individual Backgrounds - Glenn Murphy has over 30 years of experience in strategic and operational leadership, previously serving as CEO of Gap, Inc. and Shoppers Drug Mart [3] - Dave Habiger has extensive leadership experience in technology and media, having led several companies through significant growth and strategic transactions [4] Company Overview - JANA Partners, founded in 2001, focuses on investing in undervalued public companies and working with management teams to unlock shareholder value [5]

Group 1: Consumer Attitudes Towards Technology and AI - 89% of Americans are comfortable with using and adapting to new technology, with 50% trusting AI for reliable information [1] - 65% of Americans believe AI can increase access to financial tools [1] Group 2: Trends in Bank Account Openings - Over the last four years, checking accounts have consistently accounted for more than 50% of new accounts opened [3] - Consumers are actively seeking new checking accounts to avoid fees and align with their financial goals [3] Group 3: High-Yield Savings Accounts - There is a continued trend in opening high-yield savings accounts (HYSA) and short-term certificates of deposit (CDs) in 2025 [4] - HYSAs offer significantly higher interest rates, often up to 4.5% APY, making them attractive during uncertain market conditions [4] - The liquidity and fewer limitations on withdrawals and deposits associated with HYSAs are appealing to customers [4]

Company Overview - Southeast Toyota Finance (SET Finance) is a captive financial services company that has been providing financing to Toyota dealers and consumers since 1981 [3] - The company is part of World Omni Financial Corp and is headquartered in Deerfield Beach, Florida [5] - SET Finance serves 177 Toyota dealers across Alabama, Florida, Georgia, North Carolina, and South Carolina, offering a wide range of financing and leasing options [4] Industry Recognition - SET Finance has been ranked No. 1 in dealer satisfaction among Captive Mass Market-Prime Automotive Finance Lenders for three consecutive years by J.D. Power [1][2] - The 2025 U.S. Dealer Financing Satisfaction Study included responses from 5,035 auto dealer financial professionals and measured satisfaction across five lender segments [2] - SET Finance achieved an Overall Dealer Satisfaction score of 874, which is 120 points above the segment average [2] Strategic Initiatives - The company is focused on modernizing operations and enhancing dealer and customer experiences through its strategic initiative called SPARK [3] - SET Finance is committed to investing in its people and technology to align its programs and support with dealer goals [2] Financial Performance - JM Family Enterprises, Inc., the parent company of SET Finance, reported revenues of $22.8 billion and employs over 5,000 associates [5]

Core Insights - CLEAR has partnered with Greenhouse to enhance hiring processes through the integration of CLEAR1, an identity verification platform, aimed at improving trust and reducing manual screening in recruitment [1][4][8] Industry Context - The recruitment landscape is increasingly challenged by a surge in candidate applications driven by remote work and economic uncertainty, alongside a rise in fraudulent applications facilitated by AI technologies [2][3] - Gartner forecasts that by 2028, up to 25% of job applicants may be fraudulent, utilizing advanced AI tools to circumvent traditional hiring controls [2] Company Benefits - The integration of CLEAR1 into Greenhouse's Real Talent solution will allow for seamless verification of candidates, enhancing the efficiency of the hiring process [3][8] - Organizations using this integrated solution can expect to save time and reduce the risk of hiring fraudulent candidates, thereby improving the overall quality of hires [8][9] Candidate Experience - Candidates will benefit from a streamlined verification process, which involves simply taking a selfie to confirm their identity, making the application experience faster and more secure [3][8] - The integration will also allow candidates to verify their identity quickly if they are already CLEAR users, minimizing friction in the hiring process [8] Launch Timeline - The Greenhouse Real Talent and CLEAR1 integration is set to launch for select customers in Q3 2025, with further details to be announced [6]

Core Insights - Tariffs on imported vehicles and parts are expected to indirectly increase car insurance costs due to higher claims expenses resulting from increased repair and replacement costs [1][2][4] Tariff Impact on Insurance Costs - Automotive tariffs could lead to a domino effect, raising the costs of new vehicles and parts, which in turn will increase the costs of insurance claims [2] - Insurers are monitoring the impact of tariffs and potential supply chain disruptions to adjust future rate levels accordingly [4] - The U.S. imposes various tariffs, including a 25% tariff on imported passenger vehicles and major parts, effective April 3, and a 10% tariff on buses, effective November 1 [7] Claims and Premium Adjustments - As claims costs rise due to higher repair expenses, auto insurance premiums are likely to follow suit [3][8] - Approximately 60% of auto replacement parts used in U.S. repairs are imported, which could exacerbate the impact of tariffs on insurance costs [8] - Increased repair costs may lead to more vehicles being totaled, resulting in higher payouts for insurers [9] Repair Times and Rental Coverage - Tariffs may disrupt supply chains, leading to longer repair times and increased costs for rental reimbursement claims [9][10] - Consumers with rental reimbursement coverage may face higher out-of-pocket expenses if repair delays exceed coverage limits [10] Timeline for Rate Changes - Consumers may start seeing impacts on their car insurance bills within 12 to 18 months due to the lag in premium adjustments [10][11] - Insurers typically require months of data to analyze before making rate changes, and some states mandate prior approval, which can delay adjustments [11] Industry Challenges - The automotive industry faces significant challenges in shifting production to the U.S. to avoid tariffs, as relocating supply chains can take years and substantial investment [12][13]