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April 24, 2019

On The Web

Deals

Stripe Acquires Touchtech, Updates APIs to Prep for Strong Customer Authentication in Europe

TechCrunch

Stripe, the payments powerhouse that is now valued at $22.5 billion , has made an acquisition to help it gear up for new regulations in Europe that will be rolled out later this year to improve security in online transactions. It has acquired Touchtech Payments , a startup out of Ireland that works with banks to help them build and manage Strong Customer Authentication, a verification process that will typically require customers to provide two different forms of authentication from card holders in order to process transactions. SCA will be required on most transactions in Europe from September 14 of this year.”

Deals

SoftBank to Invest $1 Billion in Payments Firm Wirecard

Wall Street Journal (paywall)

“German payments company Wirecard received a $1 billion investment pledge from Japanese technology giant SoftBank, a vote of confidence in a company struggling to get past accounting issues in its Asian arm and investor skepticism of its financial reporting and business model. Softbank plans to invest €900 million ($1 billion) in a five-year convertible bond. The Japanese conglomerate has an option to turn that into Wirecard shares at about €130.00, which would give it a stake of 5.6% in one of Europe’s most valuable financial-technology companies.”

Domains

BMO and Mastercard Partner to Accelerate Global Payments

Mobilepaymentstoday

“Mastercard has entered an agreement with BMO Bank of Montreal to implement Mastercard Send, which will allow faster cross-border payments for its Canadian-based business and commercial banking clients, according to a company release. Mastercard Send will allow the bank to move cross-border payments to bank accounts in more than 75 countries worldwide. Initially focused on bank accounts, the service eventually will allow payments to mobile wallets and card accounts, as well.”

On The Wires

Companies

Zelle Announces $39 Billion in Money Sent on 147 Million Transactions

prnewswire

“Early Warning Services, LLC, the network operator behind Zelle®, today announced $39 billion was sent through the Zelle Network on 147 million transactions during Q1 2019.  Year-over-year payment values increased by 54%, while payment volume increased by 72%. “This past quarter Zelle achieved several milestones towards our goal of nationwide ubiquity,” said Lou Anne Alexander, Group President, Payments Solutions at Early Warning. “Our core processor partners have achieved tremendous results, signing more than a hundred and thirty banks and credit unions in Q1. In addition, our new marketing campaign was launched, tapping into everyday use cases of Zelle, designed to drive deeper knowledge and relevance with consumers.”

Reports

Strategies for Improving the U.S. Payment Systems – FedPayments Improvements Report

The Federal Reserve

“This progress report highlights recent accomplishments and next steps for Federal Reserve payments improvement initiatives. We invite you to engage with us as these initiatives progress by visiting FedPaymentsImprovement.org. With collaboration, inclusiveness and transparency as our guiding principles, we are confident that these efforts will continue to generate momentum and result in better, safer, faster payments for everyone.”

April 23, 2019

On The Web

Global

Tencent Joins Soros and Cohen With Stake in Agentina’s Uala

Bloomberg

“Chinese Internet giant Tencent Holdings Ltd . is taking a stake in Argentina’s mobile payments app Uala, adding to previous investments by Goldman Sachs and billionaires George Soros and Steve Cohen.    The equity investment will be used to continue developing the fintech company in South America’s second-largest economy, according to founder and CEO Pierpaolo Barbieri. The venture is one of Tencent’s few in Latin America, after it announced a $90 million investment in Brazil’s Nubank last October.  Uala has issued more than 500,000 prepaid cards from October 2017 to December 2018, as part of a bet on long-term growth in a country in which less than half the population has a bank account. The company is launching an app redesign Wednesday and looks to begin lending through its mobile app this year.”

Global

Egypt Switches to Digital Payments

Al-Monitor

“Despite people’s concerns over the digitization of payments, Egyptian Minister of Finance Mohamed Maait affirmed April 16 that the Egyptian government is to implement the E-Payments Act as of May 2019.  On March 11, Egypt’s parliament voted in favor of the E-Payments Act, which regulates cashless payments. The law includes 13 articles requiring all government, private and public institutions, syndicates, and any other private or public entity to electronically pay taxes; customs fees; purchase, sales and rent fees; usufruct rights; bank loans; insurance premiums; and payments for electric, natural gas, water and sanitation services. E-payment is to be used in the abovementioned cases whenever the fees exceed the amount specified by the act or by a decision issued by the Minister of Finance.”

Providers

Credit-Card Issuers Boost Spending on Social-Media Ads

Wall Street Journal (paywall)

“Credit-card pitches are moving from the mailbox to the social-media feed. Several big card issuers recently increased spending on Facebook ads in an effort to attract new borrowers. Capital One Financial Corp. and American Express Co.  spent an estimated $18.6 million and $13.5 million, respectively, on Facebook ads meant to sign up new consumer-credit-card holders in 2018, according to Mintel Comperemedia’s analysis of data from digital marketing intelligence firm Pathmatics, up from $2.8 million and $4 million in 2017.”

Systems

Binance’s Hotly-anticipated Singapore Crypto Exchange Is Now Live — and Underwhelming

TechCrunch

Binance, the company widely seen as the world’s largest crypto exchange, has officially set up shop in Singapore after it launched a service in the country . The new Singapore service , however, bears more of a resemblance to U.S. rival Coinbase than a classic Binance exchange. Binance’s rapid ascent is thanks to a service that lets users trade a range of crypto tokens with very little verification or individual data required. It’s Singapore venture is quite the opposite: it allows customers to purchase Bitcoin only and at fixed prices.”

Tech

Alipay to Spend $448 Million Plugging New Face Scanner

Yicai Global

“Ant Financial’s ubiquitous mobile payment platform Alipay has launched its latest facial recognition tool and said it plans to spend CNY3 billion (USD448 million) promoting the new system across China. Alipay introduced Dragonfly 2 yesterday. Compared with its predecessor, the point of sales device is smaller and lighter, making it portable, according to a post on Alipay’s official Weibo account. Dragonfly 2 is two inches smaller at eight inches, is a third of the thickness and less than half the weight. It can be folded to the size of a book and even fit inside a coat pocket.”

On The Wires

Domains

Resolve Accelerates Shift to B2B ECommerce With Automated Net Payment Terms

GlobeNewswire

“According to Forrester Research, business-to-business (B2B) eCommerce is poised to reach over $1.8 trillion by 2023 . To help power this explosive growth, Resolve today announced that it has formally spun out of Affirm to launch an automated payments platform offering extended net terms. Early customers using Resolve’s payment automation technology have realized significant increases in B2B sales, growth in order size, and faster sales cycles. Traditional B2B financing is slow, inaccurate and limits a business’s potential for growth because of an over reliance on email, call centers, faxes, and manual invoicing processes. Today, many companies offer a standard net 30-day payment plan only to their best and longest tenured customers, leaving others in need of financing to rely on credit cards or installment loans.”

Reports

Point of Sales (POS) Terminals Market to Reach a Market Size of $92.2 Billion by 2024

prnewswire

“According to a new report Global Point of Sales (POS) Terminals Market , published by KBV research, The Global Point of Sales (POS) Terminals Market size is expected to reach $92.2 billion by 2024, rising at a market growth of 7.4% CAGR during the forecast period. The increased Internet penetration and payment solutions, such as online payments, stationary telephones and mobile payments have given the POS terminal market a boost. With electronic and email receipts, POS terminals are gradually shifting to paperless, digital format.  Increased acceptance of debit and credit cards has also led to high demand for these appliances”

Use

Hypur Brings Nationwide Payments Solution to Cannabis Consumers and Merchants

prnewswire

Hypur, Inc. announced that its reliable and secure electronic payment solution is now available for state legal marijuana-related businesses (MRBs) throughout the United States. Through its compliance technology, point-of-sale integrations, and payment solutions capabilities, Hypur provides complete transparency to the cannabis payments process. Hypur enables consumers to purchase products from their local dispensaries while also allowing MRBs to process business-to-business (B2B) payments.”

April 22, 2019

On The Web

Domains

JCPenney Drops Apple Pay

Digital Transactions

“Department-store chain J.C. Penney Co. Inc. confirmed over the weekend that it no longer accepts Apple Inc.’s Apple Pay mobile-payment service. The confirmation came in a tweet on the Ask JCPenney Twitter feed, where a consumer inquired after his wife tried to pay for a purchase with Apple Pay but was told the service no longer was accepted. When asked by Digital Transactions News about reasons for the decision and the status of other mobile-payment services at JCPenney, a spokesperson said the company would have a statement later today.”

Global

Brazil’s Pagseguro Launches Instant Payment Feature for Debit And Credit Card Transactions

Reuters

“Brazilian card processor Pagseguro Digital Ltd said it will offer instant payments for merchants in debit and credit card transactions, according to a securities filing on Monday. Pagseguro’s move follows Itau Unibanco Holding SA’s card processor unit decision to stop charging interest rates and repaying merchants using its machines in two days, compared with the usual 30-day period.”

Tech

J.P. Morgan Expanding Blockchain Project With 220 Banks to Include Payments

CoinDesk

“Investment banking giant J.P. Morgan Chase is planning to expand an existing blockchain project to include settlement features as it seeks to fend off competition from payments upstarts such as TransferWise and Ripple. The blockchain-based Interbank Information Network (IIN), set up in partnership with Australia’s ANZ bank and the Royal Bank of Canada back in 2017 , currently allows its over 220 banking members to quickly address payments that contain errors or get held up for compliance reasons – problems that can takes weeks to solve with multiple banks being involved across the payments chain. The Financial Times reported Sunday that John Hunter, head of global clearing at JPMorgan, said the IIN is fast developing and that the bank is “looking at the ability to do more at the point of settlement.””

On The Wires

Domains

CellPoint Mobile Enables Viva Air to Become the First Airline in Latin America to Offer Apple Pay and Google Pay

prnewswire

“CellPoint Mobile, a leading provider of digital commerce and payment solutions for airlines and travel companies will enable the roll-out of multiple digital and mobile payment methods for Viva Air, starting with Apple Pay, Google Pay, MasterPass and Visa Checkout. CellPoint Mobile is fast-tracking the deployment of these payment methods along with Viva Air’s current payment provider Ingenico.  Viva Air is a rising star in the Latin America aviation sector, with an expanding network of 16 destinations across Colombia, Peru and the Unites States, and plans to serve over 60 million passengers by 2022. The launch of these new payment methods will make the Colombian carrier the first in Latin America to offer Apple Pay and Google Pay”

Domains

Apriva and AveriGo Announce Mobile Solution for Quickly Launching New Micro Markets

businesswire

“Apriva, LLC, a technology company providing an adaptive platform for secure mobile communications and omnichannel payments, and AveriGo, LLC, a software solutions provider for the vending and food/beverage service industries, today announced a disruptive new technology for launching micro markets without upfront equipment, network, or software costs. This mobile-first solution allows vending operators to launch new micro markets in a matter of hours and profitably deploy even at small locations.”

Domains

NCR Previews All-in-One Solution That Integrates Payments Processing, Helps SMBs Leverage Digital Commerce

businesswire

“NCR Corporation today unveiled its enhanced all-in-one point-of-sale (POS) solution, that integrates payment processing with sleek, Samsung designed Quantum™ tablets. The soon-to-be released NCR Silver One™ further streamlines the entire payments process for small businesses – simplifying setup and delivering relevant transaction data to business owners so they can easily improve customer engagement.  The advanced solution provides payments processing through JetPay, which NCR acquired last year. This removes the burden of selecting a payments processor from the small business owner. NCR Silver One also includes a comprehensive digital commerce suite to help small business owners take advantage of online commerce opportunities”

Providers

Visa Opens Door to Digital-First Payment Experiences Through Visa Next

businesswire

“Today, Visa introduced a new platform with a set of beta APIs, specifications and development tools for issuers and issuer processors to begin building and beta testing new payment products to help meet the future needs of digital-first consumers. The offering will be available to clients and partners via Visa Next , a new destination for accessing new solutions in Visa’s product pipeline.”

April 19, 2019

TOP POST

Companies

Venmo’s Latest Effort to Turn a Profit: Credit Cards

Wall Street Journal (paywall)

“Venmo’s latest gambit to profit off its massive but still-not-lucrative user base involves a decidedly old-school idea: credit cards. Executives at the digital payments company have been meeting with banks since late last year to discuss issuing a Venmo-branded credit card, people familiar with the matter said. The company, owned by PayPal Holdings Inc., is close to selecting Synchrony Financial as its credit-card issuer and is hoping to announce the card this year, one of the people said.”

On The Web

Companies

ProcessOut Improves Payment Data Visualization

TechCrunch

“ProcessOut has become an expert on payment providers and payment analytics. Clients sign up to get an overview on the performance of their payment systems. After setting up ProcessOut Telescope, you can monitor payments with expensive fees, failed payments and disappointing payment service providers. And this product is quite successful. Back in October 2018, the company had monitored $7 billion in transactions since its inception — last month, that number grew to $13 billion.”

Deals

Index Ventures, Stripe Back Bookkeeping Service Pilot With $40M

TechCrunch

“Pilot helps startups and small businesses manage their back office. Chief executive officer Daher admits it may seem a little boring, but the market opportunity is undeniably huge. To tackle the market, Pilot is today announcing a $40 million Series B led by Index Ventures with participation from Stripe, the online payment processing system. The round values Pilot, which has raised about $60 million to date, at $355 million.”

Domains

Alibaba Group’s Mobile Payment Platform Coming to Capital One Arena

bizjournals

“Alipay, a mobile payment platform from Chinese multinational conglomerate Alibaba Group, is now available at Capital One Arena. The platform, which serves one billion users worldwide, is available across the arena’s ticketing, concessions and team store — making Capital One Arena the first stadium of its kind globally to have the leading Chinese payment app available for visitors.”

Security

India Expected to Surpass the UK for Second Place in Payment Card Fraud

ZDNet

“Due to a booming cybercrime scene, India is expected to surpass the UK in 2019 and become the second-most targeted country for payment card fraud, behind the undisputed leader, the US.According to cybercrime statistics compiled by cyber-security firm Gemini Advisory, over 3.2 million Indian payment card records have been compromised and posted for sale online in 2018, a big jump from the previous year, when details for only 800,000 Indian payment cards had been posted on cybercrime forums.”

On The Wires

Companies

Invoice2go Partners With Square Capital to Deliver Mobile Access to Business Loans, Helping Small Business Owners Grow

prnewswire

“Invoice2go and Square Capital today announced a partnership that gives Invoice2go customers in the United States a fast, seamless way to access the funding they need to grow their business – from right inside their Invoice2go mobile app. This partnership is the first time Square Capital, the small business loan program created by financial and technology company Square, has had a partner incorporate embedded access to business loans through their mobile app, making the process of applying simple and easily accessible.”

April 18, 2019

TOP POST

Providers

T-Mobile Just Launched Its Own Checking Account Service

The Verge

“To be clear: T-Mobile isn’t running its own bank. Rather, it’s a T-Mobile-operated face for a digital bank called BankMobile, which is a part of Customers Bank. It’s sort of like an MNVO, but instead of, say, a startup using existing cell service from a larger carrier to offer its own service, its’ T-Mobile using existing banking infrastructure. T-Mobile Money is still a real checking account, complete with FDIC insurance for balances up to $250,000, a Mastercard-powered debit card, and the ability to send paper checks directly from a smartphone app. You can also add a T-Mobile Money card to Apple Pay, Samsung Pay, or Google Pay.”

On The Web

Deals

US-based First Data Joins AIB in €100m Bid for Payzone

The Irish Times

“US financial services group First Data has joined forces with AIB in its bid for Dublin-based payments company Payzone , which is worth more than €100 million, according to sources. It is understood that the talks, which have been ongoing for months, may come to a conclusion in the coming weeks. AIB is scheduled to unveil full-year results to the market on March.”

Deals

Why Mastercard Bought a Point-of-Sale Lending Platform

Medium

“As banks, merchants, and even tech companies offer consumers new and different ways to pay for stuff, credit card companies are trying to protect their role as the pre-eminent platform for everyday purchases by offering more buy-now-pay-later options. That’s why MasterCard paid an undisclosed amount this week for the point-of-sale loan platform Vyze, which lets consumers take small, short-term loans for everyday purchases without racking up credit card debt.”

Deals

Bankin’ Raises $22.6 Million for Its Financial Coach

TechCrunch

“French startup Bankin’ is raising a new $22.6 million funding round (€20 million). The company has managed to attract 2.9 million users in France and wants to become the only app you need to manage your money. Overall, Bankin’ has raised over $32 million (€28.4 million). Investors include Omnes Cap…”

Deals

Bankin’ Raises $22.6 Million for Its Financial Coach

TechCrunch

“French startup Bankin’ is raising a new $22.6 million funding round (€20 million). The company has managed to attract 2.9 million users in France and wants to become the only app you need to manage your money. Overall, Bankin’ has raised over $32 million (€28.4 million). Investors include Omnes Capital, Commerz Ventures, Génération New Tech, Didier Kuhn, Simon Dawlat and Franck Lheurre.”

Reports

Nearly a Third of All Card Transactions in the UK Are Contactless

Cards International

“Contactless card transactions in the UK were nearly a third of all volume in January 2019 according to new data from UK Finance. Over the month, there were 642 million contactless card transactions in the UK. This is a 19.5% increase from the same time in 2018, a total of 537 million. Furthermore, the value of these contactless transactions totalled £5.9bn ($7.7bn), an increase of 18.1% from January 2018. UK Finance also stated that there are 99 million debit cards in the UK currently, 83 million of which are contactless. Credit cards issued totalled 60 million and 41 million of them are contactless.”

Security

NatWest Unveils Biometric Payment System for Businesses

CNBC

“In an announcement Tuesday, the bank said the system enabled its customers to make payments, via an app, using Apple’s Face ID or Touch ID. Once a customer registers a device, they set up and give approval for a payment using biometric authentication. They then enter a six-digit code to complete the transaction.”

Systems

Vietnam and Thailand Lead Drive to Make Southeast Asia Cashless

Nikkei Asian Review

“Governments across Southeast Asia are pushing ahead with efforts to create cashless economies, with less developed countries such as Vietnam and Thailand leapfrogging richer ones like Singapore and Malaysia in electronic payments. Vietnam and Thailand are experiencing a boom in mobile payments as more people use e-wallets to pay for goods and services without going through an intermediary like a bank.”

Use

Dunkin’ Adds Other Payment Forms To Its DD Perks Loyalty Program at 1,000 Locations

Digital Transactions

“Coffee, doughnut, and breakfast sandwich aficionados can now pay with credit and debit cards and even cash and still earn points in Dunkin’ Brands Group Inc.’s DD Perks loyalty program at more than 1,000 test stores, Dunkin’ announced this week. DD Perks is one of the nation’s largest rewards programs, with more than 10 million members. Previously, customers could earn DD Perks points only if they paid with an enrolled Dunkin’ gift card or Dunkin’s mobile app, which uses QR codes for payments, linked to an enrolled gift card. Canton, Mass.-based Dunkin’, which recently dropped “Donuts” from its corporate name, said Tuesday that it tested multi-tender loyalty purchases at some stores in California and Pennsylvania earlier this year. Now it’s adding another 1,000.”

On The Wires

Providers

T-Mobile MONEY Introduces No-Fee, Interest-Earning, Mobile-First Checking Account

“It’s a no-fee, interest-earning, mobile-first checking account that anyone can open and manage right from their smartphone. With T-Mobile MONEY, eligible Un-carrier customers can earn an industry-leading 4.00% Annual Percentage Yield (APY)* on balances up to $3,000 – 50 times higher than the average U.S. checking account1 – and 1.00 APY% on every dollar over that! Plus avoid all those big bank fees and overdrafts.”

Reports

TSYS Consumer Payment Study: Americans Like High Tech and High Touch When It Comes to Payments

“The eighth annual survey of approximately 1,200 Americans with a credit and debit card found the portion of respondents using a P2P payment service popped from 29% to 44% over the last year. Additionally, for day-to-day management of accounts, consumers are more comfortable transacting business digitally. Text messages as a preferred method for receiving alerts about potential unauthorized use doubled from 20% to 40% between 2015 and 2018. Even more people — 61% — have an interest in receiving alerts on their mobile phone each time a purchase is made with their card.”

Users

Visa and Wave Join Forces to Improve Cash Flow Management for Small Businesses

Visa (NYSE:V), and Wave , the financial platform for millions of small business owners, today announced a new, limited release payments solution that aims to transform the way small businesses manage their cash flow and provide merchants quicker access to funds. Utilizing Worldpay’s acquiring platform, Wave’s new Instant Payouts feature integrates Visa Direct, Visa’s real-time1 push payments solution, into Wave’s comprehensive small business financial platform, enabling faster access to money earned.”

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