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February 19, 2020

On The Wires

Deals

Ally Financial Announces Agreement to Acquire CardWorks

Prnewswire

“Ally Financial Inc., announced today that it has entered into a definitive agreement to acquire CardWorks in a transaction valued at approximately $2.65 billion. Cardworks is a privately held company with $4.7 billion in assets and $2.9 billion in deposits1. Under the terms of the agreement, Merrick Bank, a wholly owned subsidiary of CardWorks, Inc., will merge into Ally Bank.  The acquisition of CardWorks will further diversify Ally’s product offerings, adding an established credit card platform, full-spectrum servicing and recovery operation and a nationwide merchant acquiring business.”

February 18, 2020

On The Web

Companies

Lawsuit Alleges PNC Built Payments Product with Stolen Trade Secrets

American Banker

“About a year ago, PNC Financial Services Group launched an online portal that’s designed to eliminate paper-based payments for companies in the middle of a merger or acquisition. PNC Paid is part of a suite of corporate finance products and services that the Pittsburgh company offers and has described as being unique in the banking industry. But now a Denver-based competitor is alleging that PNC Paid was built on stolen trade secrets. The aggrieved company, SRS Acquiom, wants not only monetary damages from the $410 billion-asset PNC, but also a court order that would essentially force the bank to rebuild its product from scratch.”

Global

China Quarantines Cash to Sanitize Old Bank Notes From Virus

Bloomberg

“The government cut off the transfer and allocation of old bank notes across provinces, and between cities most affected by the deadly outbreak, according to Fan Yifei, People’s Bank of China’s deputy governor. The central bank also ramped up measures to sanitize old money to reduce contagion risks and added 600 billion yuan ($85.9 billion) of new cash for Hubei, the epicenter of the coronavirus, he said.”

On The Wires

Companies

Cardtronics Allpoint+ ATMs Now Enabling Customers to Add Cash to Their Amazon Balance With Amazon Cash

Globalnewswire

Cardtronics , the world’s largest ATM operator, today announced that Amazon customers can now complete Amazon Cash transactions at more than 400 cash-accepting Cardtronics ATMs in the U.S. The ATMs, part of the Allpoint+ Network of surcharge-free deposit-taking ATMs for Allpoint members, operate card-free, allowing Amazon customers to add cash to their Amazon Balance to make future purchases on Amazon’s online store using only the phone number linked to their Amazon account with no added fees.”

Companies

Fiserv Completes First-of-its-Kind Pin on Mobile Transaction With Visa

BusinessWire

“In a move that is expected to boost the worldwide use of smartphones and tablets as point-of-sale terminals, First Data, now part of Fiserv (NASDAQ: FISV), is enabling merchants to use their own devices to accept payments of any amount without any additional hardware. This is ground-breaking for small businesses and service providers that operate remotely due to its first-of-its-kind PIN on mobile capability, which facilitates secure PIN entry on a consumer-grade mobile device. This simplifies payment acceptance by allowing merchants to accept PIN-based contactless transactions without the need for a separate card reader or PIN-entry device, opening new market opportunities for merchants and allowing even micro-businesses to accept non-cash payments.”

Deals

LendingClub Announces Acquisition Of Radius Bank

LendingClub Corporation, America’s largest online lending marketplace connecting borrowers and investors, today announced that it has signed a definitive agreement to acquire Radius Bancorp, and its wholly owned subsidiary Radius Bank, (together “Radius”) recently voted the nation’s best online bank in a cash and stock transaction valued at $185 million. Combining Radius and LendingClub will create a digitally native marketplace bank at scale with the power to deliver an integrated customer experience, enabling consumers to both pay less when borrowing and earn more when saving.”

Use

I2c and SmartHealth PayCard Deliver First of Its Kind Credit Card to Help U.S. Consumers Better Manage Healthcare Costs

BusinessWire

i2c Inc. , a leading provider of payment and open banking technology, today announced its partnership with SmartHealth PayCard , a leading FinTech pioneer committed to changing the culture of healthcare payments. Enabled with the agile processing of i2c, SmartHealth PayCard provides the first credit card dedicated solely to healthcare, making it easier for consumers to manage their medical expenses in today’s environment of high deductibles, high co-pays and costly medical emergencies. SmartHealth PayCard is also designed for immediate payment to healthcare providers.”

February 14, 2020

On The Web

Companies

Mastercard Is Pioneering New Payment Technology That Identifies Commuters by the Way They Walk

MarketWatch

“Commuters may soon be able to ditch their bus pass and access public transport with technology identifying them by the way they walk. Mastercard is working with transport firms to develop a new system that would authenticate passengers by their gait. The payment provider told MarketWatch that everyone has a unique walk, and it is investigating innovative behavioral biometrics such as gait, face, heartbeat and veins for cutting edge payment systems of the future. Ajay Bhalla, president of cyber and intelligence solutions for Mastercard, told MarketWatch in an interview: “We are working with transport organizations where your face or gait will authenticate you.”

On The Wires

Companies

Klarna Acquires the Italian `Buy Now, Pay Later’ Startup Moneymour

“Klarna, one of the world’s leading smooth shopping and payment providers, today announced an agreement to acquire Moneymour, an Italian payment company, from the founders and minority investors. Through the acquisition Klarna gains access to intellectual property to further improve underwriting capabilities, and additional expertise and competence, as the full Moneymour team will join Klarna. This acquisition also marks the first step in launching Klarna’s latest product development hub in Milan.”

Companies

‘Dine and Dash’ Redefined With New Clover Scan to Pay Feature

“Restaurants can offer guests a more efficient, flexible, and secure payment experience with Scan to Pay, a first of its kind feature available with the Clover® platform from Fiserv, Inc.  With Scan to Pay, guests use their iPhone camera to scan a Clover-generated QR code at the bottom of their receipt to pay their restaurant bill with Apple Pay. This saves time for both the guest and the server by eliminating the need for the guest to give their credit card to the server and for the server to take the card to the point of sale, process the transaction, and return for a signature. Not only is Apple Pay quick and convenient for both the guest and restaurant, it is also secure as a customer must authorize every transaction with Face ID or Touch ID on their iPhone.”

February 13, 2020

On The Web

Companies

The Future Of Payments: Fintech 50 2020

Forbes

“Payments companies continue to be some of the most highly valued businesses in fintech. They had notable exits in 2019, including Visa’s pending $5.3 billion acquisition of Plaid and the IPO of Bill.com , a $4 billion (market value) business-to-business payment processor that has doubled in value since it went public in December 2019. Last year, payments startups attracted a gusher of funding, taking in $15 billion globally, a 20% jump over 2018 and more than one quarter of all fintech funding, according to Accenture.  Nine payments companies made our Fintech 50 list this year. They range from a San Francisco startup that lets businesses keep a greater share of the processing fees that merchants pay to a Boston venture that provides restaurants with credit card readers, reservation software and loans of up to $250,000.       Here are the payments companies that made the Forbes Fintech 50 in 2020:”

Global

Tech Startups Are Flooding Kenya With Apps Offering High-Interest Loans

Bloomberg

“In Kenya, the first country where digital credit has gone mainstream, borrowers are learning that with financial inclusion comes financial risk. With dozens of apps offering short-term advances similar to payday loans, word of debt’s dangers is spreading from the office towers of Nairobi to the grasslands of Maasai Mara. People who once borrowed mainly from family and friends are now being bombarded with ads for quick money and calls from debt collectors. The market is largely unregulated, and there are no caps on interest rates.”

Systems

Why the Fed Is Taking an Incremental Approach to Faster Payments

American Banker

“The Federal Reserve faces a dilemma in constructing a real-time payments system. On one hand, the market seemed to demand faster payments solutions yesterday. On the other, the Fed’s undertaking is complex, so making it work will take time. To address both realities, the leader of the central bank’s project says the Fed has adopted an “incremental” strategy “to bring FedNow to market.” The agency is planning to release the product in stages, with an initial offering coming in 2023 and 2024, followed by additional refinements and services down the road.”

February 12, 2020

On The Web

Companies

Payoneer Opens Dublin Hub for European Payments As Brexit Looms

www.mobilepaymentstoday.com

“Payoneer, a New York-based fintech, has obtained an e-money license from the Central Bank of Ireland and has opened a hub office in Dublin office to prepare for the post-Brexit environment. The split will require some separation of its U.K. offices to manage its European business, according to a company press release.”

Deals

Repay Expands Its Footprint With Ventanex Acquisition

Digital Transactions

“Payment-services provider Repay Holdings Corp. continued its run of acquisitions Monday when it announced it bought Ventanex for up to $50 million. Ventanex is an integrated-payments provider operating in consumer finance, especially mortgage-loan servicing, business-to-business health-care payments, and some other segments.”

Domains

RBC Now Offers an Interac E-Transfer Bulk Request Money Feature

MobileSyrup

“RBC announced that it now offers an Interac e-Transfer Bulk Request Money feature to its business banking clients. The digital subscription-based service enables businesses to send multiple payment requests at once with automated reminders to save time. RBC says that this new feature delivers a simplified initiation process since payment reminders can be facilitated with the user’s email address or phone number.”

Regulation

New German Legislation Allows Access to the IPhone’s NFC Antenna

Bird & Bird

“As part of the implementation of the fifth Anti-Money Laundering Directive (AMLD5), the German Parliament has decided to require providers of technical infrastructures, such as Apple in relation to the Near Field Communication (NFC) antenna contained in iPhones, to grant access to those technical infrastructures to payment service providers (PSPs). This new legal requirement is applicable since 1 January 2020.”

Regulation

RILA Calls for Action on the Fed’s Debit Cap As Powell Testifies Before Congress

Digital Transactions

“Federal Reserve Board chairman Jerome Powell is testifying before Congress this week, and mixed in with questions and answers about interest rates, economic growth, and employment could be queries about when the Fed is going to update its cap on the fees issuers can charge for debit card transactions. At least, that’s the hope of the Retail Industry Leaders Association, a Washington, D.C.-based trade group that issued a broadside on Tuesday against what it and most major retailers regard as debit fees out of proportion to banks’ costs to process transactions.”

On The Wires

Use

FIS Extends Partnership With PayPal to Enable U.S. Cardholders to Redeem Loyalty Points for Purchases

FIS ™ (NYSE: FIS) and PayPal (NASDAQ: PYPL) are extending their partnership to enable millions of cardholders of U.S. financial institutions to participate in PayPal’s Pay with Rewards. Beginning in Q3 2020, cardholders of thousands of financial institutions participating in FIS’ Premium Payback loyalty network will be able to use their eligible card loyalty points to pay for eligible online purchases at millions of PayPal merchants globally.”

Use

Shell and Dunkin’ Announce Partnership and Loyalty Promotion Through Fuel Rewards ® Program

“Shell Oil Company (Shell), the largest fuel network in the United States, and Dunkin’ just announced a national expansion of their partnership with the Fuel Rewards® program. The “Sip Dunkin’, Save at Shell” partnership allows Fuel Rewards® members with Gold Status and DD Perks® Rewards Program members to save 10 cents per gallon every time they purchase five beverages at a Dunkin’ location.”

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