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August 7, 2020

On The Web

Companies

Singapore Police Bring First Charges Linked to Wirecard

Wall Street Journal (pay wall)

“Singapore police brought their first criminal charges against an individual linked to the suspected fraud at Wirecard AG WDI -3.16% , the one-time German technology star that collapsed at the end of June after admitting more than $2 billion of cash on its balance sheet was fake. The city-state’s white collar crime division charged R. Shanmugaratnam, a director and owner of Citadelle Corporate Services Pte Ltd., with falsifying papers that showed more than €100 million ($118 million) in three separate escrow accounts held on behalf of Wirecard, according to charge sheets reviewed by The Wall Street Journal.”

Domains

Some Stimulus Checks Didn’t Include $500 for Dependents. Now the Government Is Sending Those Payments

CNBC

“Some Americans who qualified for stimulus checks received an unwelcome surprise when the $500 payments for their children under 17 were not included. Starting today, the U.S. government plans to send out the missing cash.   That applies to those individuals and couples who are not required to file a tax return and used the IRS non-filer tool to provide information on their qualifying children.”

On The Wires

Domains

 Western Union Expands International Payment Services in Brazil

“The Western Union Company, a leader in cross-border, cross-currency money movement and payments, today announced an expansion of services between its Western Union Business Solutions division and Banco SEMEAR in Brazil to offer the WU® GlobalPay for FI platform, the Company’s solution for financial institutions that enables customers to make international payments simply and efficiently.”

Domains

Kroger Launches Contactless Payments Pilot in QFC Division

“The Kroger Co. today announced the launch of a contactless payments pilot across the QFC division, located in Seattle, Wash., allowing customers to use their mobile device for a more seamless checkout experience. The pilot includes the acceptance of Apple Pay, Google Pay, Samsung Pay, Fitbit Pay, mobile banking apps and contactless chip cards, underpinned by near-field communication (NFC) technology.”

Tech

BankMobile Technologies, a Subsidiary of Customers Bank, and Megalith Financial Acquisition Corp. Agree to Combine to Bring a Digital Banking Platform to the Public Market Under the New Name BM Technologies

“BankMobile Technologies, a subsidiary of Customers Bank, and one of America’s largest digital banking platforms, and Megalith Financial Acquisition Corp (“MFAC”), a special purpose acquisition company, announced today that they have entered into a definitive merger agreement.  Upon closing of the transaction, the combined company (the “Company”) will operate as BM Technologies Inc. and expects to be listed on the NYSE. The transaction reflects an enterprise value for the Company of $140 million.”

August 6, 2020

TOP POST

Systems

Federal Reserve Announces Details of New 24x7x365 Interbank Settlement Service With Clearing Functionality to Support Instant Payments in the United States

“The Federal Reserve Board on Thursday announced details of the FedNow℠ Service, a new 24x7x365 interbank settlement service with clearing functionality to support instant payments in the United States. The features and functionality described in the accompanying Federal Register notice represent a key milestone in the FedNow Service’s development and are based on input received from the public in response to the Board’s 2019 request for comment. The Federal Reserve will take a phased approach to service implementation. The first release of the FedNow Service will provide core clearing and settlement features that will support market needs and help banks manage the transition to a 24x7x365 service.”

On The Web

Companies

Digital Payment Adoption Rates Vary Across States

Economic Times

“Indians averaged about 3.85 digital transactions per person between July 2019 and July this year with Chandigarh leading at 38.4 transactions per person. Delhi averages about 9.3 transactions per person, according to the Digidhan database maintained by the Ministry of Electronics and Information Technology (MeitY). It tracks digital transactions across National Payments Corporation of India ( NPCI ) operated channels.These include RuPay cards, BHIM — the Unified Payments Interface interface of NPCI–and Unstructured Supplementary Service Data (USSD)-based mobile transfers over a twelve-month cycle.”

Global

Japan Banks Unveil Plan to Build Cheaper Money Transfer System

BNN

“Japan’s biggest banks said they will jointly build a cheaper money transfer network catering mainly to small transactions among individuals, a move that may spur the nation’s drive toward going cashless. Five major banks including the domestic lending units of Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. will start planning the new payments infrastructure, which will cost less to operate than the existing one, they said Thursday.”

Regulation

Banking Regulator Fines Capital One $80 Million Over 2019 Hack

Wall Street Journal (paywall)

“A top banking regulator has fined Capital One Financial Corp. $80 million over a 2019 hack that compromised the personal information of about 106 million card customers and applicants. The Office of the Comptroller of the Currency said the bank failed “to establish effective risk assessment processes“ before transferring information-technology operations to the public cloud and “to correct the deficiencies in a timely manner.””

On The Wires

Domains

PayU Enables Merchants to Scale up Financial Operations With Enhanced Payouts Solutions Suite

“PayU, India’s leading online payment solutions provider, has enhanced its flexible fund source management and beneficiary management capabilities with its enhanced Payouts product suite. With the newly launched Payouts from Payins feature, merchants can receive payins (settlements and payments) directly into virtual accounts created by PayU, eliminating the need for constant recharging. From pay-ins received in the accounts, merchants can make bulk disbursals to vendors, partners, employees and customers directly, streamlining operations.”

Domains

Introducing DashMart

“DashMart is a new type of convenience store, offering both household essentials and local restaurant favorites to our customers’ doorsteps. On DashMart, you’ll find thousands of convenience, grocery, and restaurant items, from ice cream and chips, to cough medicine and dog food, to spice rubs and packaged desserts from the local restaurants you love on DoorDash. DashMart stores are owned, operated, and curated by DoorDash.”

Domains

Bill.com and Intuit QuickBooks Extend Partnership to Seamlessly Integrate Bill.com Application Into QuickBooks Online Advanced

Bill.com, a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and mid-sized businesses, has extended its long-standing partnership with Intuit Inc., the makers of QuickBooksTurboTax and Mint. The enhanced partnership will add advanced bill payment and workflow automation capabilities for QuickBooks Online Advanced customers as part of Intuit’s application ecosystem, in addition to continued support for the Simple Bill Pay service in QuickBooks Online.

Providers

Lightspeed Capital Launches for U.S. Retail Customers

“As the retail industry continues to adopt innovative solutions amidst the global pandemic, Lightspeed announces the initial availability of Lightspeed Capital , powered by Stripe . Through financing offers, this new product will help U.S.-based merchants with overall business growth, more specifically to buy inventory, invest in marketing, or manage cash flows. It is available for retailers using Lightspeed Payments in the U.S. and provides financing of up to $50,000 USD per retail location.”

August 5, 2020

On The Web

Companies

Square Surges After Reporting 64% Jump in Revenue, More Customers Using Cash App

CNBC

“Its peer-to-peer Cash App, a competitor to PayPal’s Venmo, helped drive Square’s performance in the second quarter. Gross profit for the app rose 167% year-over-year to $281 million. Stored funds, or the amount of money customers keep on the app, jumped 86% from the prior quarter. The app had 30 million users as of June, up from 26 million at the end of last year, according to the company.”

Deals

CloudPay Raises $35M in Growth Capital

FinSMEs

“CloudPay provides managed global payroll services to multinational organizations through a single, unified cloud solution. It processes payroll in line with often complex local and country-specific requirements, eliminating error-prone manual processes and ensuring timely payments. CloudPay’s solution guarantees accurate payroll processing across 130+ countries in more than twenty-five languages.”

Risk

U.S. Coronavirus Fraud Losses Near $100 Million As COVID Scams Double

Reuters

“U.S. losses from coronavirus-related fraud and identity theft have reached nearly $100 million since the pandemic emerged in March, while complaints of COVID-19 scams have at least doubled in most states, a consumer protection group said on Tuesday. A report from the group, based on government data, highlighted the vast scope of a fast-growing criminal cottage industry – from phony stimulus-check offers to shopping scams and fake cures – preying on Americans already distressed by the pandemic and its economic fallout.”

On The Wires

Companies

Global Visa Study Finds 67% of Small Businesses and 78% of Consumers Have Adopted New Behaviors to Adjust to COVID-19

“As small and micro businesses (SMBs) worldwide continue to endure the financial impact of COVID-19, one thing is clear: rethinking the checkout or point-of-sale (POS) experience is essential for survival on Main Street. Visa today released the Visa Back to Business study assessing this dramatic shift to digital commerce in response to the pandemic, driven largely by changing consumer expectations for a safe and touchless payment moment.”

Domains

Emburse Launches Industry’s First Policy-backed Corporate Cards With Pre-approvals to Deliver Unparalleled User Experience and Cost Control

Emburse , a global leader in expense management and accounts payable automation solutions, announces the first in a series of its Emburse Pay suite of global payment solutions encompassing employee spend, reimbursement and invoice payments. In the initial rollout, Emburse Pay launches with integrated pre-approved and policy-backed virtual cards that can be issued within the company’s Chrome River EXPENSE solution.”

Providers

Bottomline Boosts the Way Businesses Collect Cash With Pay Direct

“Bottomline, a leading provider of financial technology that makes business payments simple, smart and secure, today announced the launch of Pay Direct. This new Open Banking payment initiation service gives companies a more efficient and cost-effective way to receive online payment from customers. With the introduction of Open Banking, innovative financial applications are coming to market, and Bottomline’s Pay Direct is one of them. As an alternative to the raft of payment methods available for making an online purchase, Pay Direct gives merchants and customers a new, convenient and pennywise way to pay and get paid.”

Providers

Klarna Creates New Ways to Make Shopping Social With the Launch of Followable Wish Lists

“Klarna, the leading global payments and shopping platform, today announced the launch of followable Wish lists for shoppers, a new feature that allows customers  to create, share and follow shoppable Wish lists on the Klarna app. Users can also follow and share Wish lists curated by brands, influencers, Klarna’s shopping experts and others to discover new products and find shopping inspiration from within the Klarna app.”

August 4, 2020

On The Web

Domains

Once the Innovators, Department Stores Fight to Stay Alive

Wall Street Journal (paywall)

“Lord & Taylor was one of the first retailers to allow employees to become stockholders, to introduce a lunch counter, to usher in the Christmas season with animated window displays and to take risks on new American designers. That innovation stopped in the 1980s, former executives say, sending the once-grand department store chain on a long march toward bankruptcy that culminated Monday, when the 194-year old company’s lenders said it would liquidate if it can’t find a buyer by October.”

Providers

Citi’s New Credit Card Perk Gives Amazon Edge in Winning Big Orders

Bloomberg (paywall)

Citigroup Inc. plans to let credit-card customers finance big purchases on Amazon.com over longer periods of time — a deal that may spur sales at the e-commerce giant while boosting the bank’s interest-bearing balances.    Cardholders who’ve shopped on Amazon in the past 12 months can choose to pay off transactions of at least $100 on a longer schedule and at a lower annual percentage rate, the lender said in an emailed statement.”

Systems

China’s new digital currency takes aim at Alibaba and Tencent

Financial Times

“The People’s Bank of China is hoping its new digital currency will reduce the dominance of Alibaba and Tencent in digital payments, according to several people familiar with the thinking of the central bank. The experimental digital currency is on trial in a number of Chinese cities and the PBoC intends to use it to simplify digital payments and interbank settlements.”

On The Wires

Companies

Jobber Partners With Stripe to Activate Financing and Instant Payouts for Home Service Businesses

“Jobber, a leading provider of home service management software, today announced an expanded partnership with technology platform Stripe to offer flexible financing and instant payouts to its customers in North America. Jobber is deploying Stripe Capital to make it easier for home service providers to access the capital they need to invest in their businesses and grow. In addition, Jobber’s customers have access to instant payouts, powered by Stripe and Visa Direct, Visa’s real-time push payments platform, to receive the funds they’ve earned within seconds.”

Deals

Intuit QuickBooks Adds Omni-channel Commerce Capabilities by Acquiring TradeGecko

“Intuit is excited to announce that we have entered into an agreement to acquire TradeGecko, the inventory and order management platform that makes omni-channel commerce easy for small businesses. Integrating QuickBooks’ suite of financial, payment, reporting and accounting tools with TradeGecko’s robust inventory and order management system will help product sellers run and grow their business, all on one powerful platform. The transaction is expected to close in September 2020.”

Domains

Etsy Payments Gets Even More Global

“As shoppers are increasingly turning to eCommerce, Etsy Payments allows sellers to offer more payment options while protecting their shops and streamlining their finances. We’re proud to announce that we’ve completed the expansion of our payments platform in seven new markets, giving more sellers access to our full suite of payments tools. Sellers in Israel, Malaysia, Mexico, Morocco, South Africa, Turkey and the Philippines can enroll today.”

Domains

ACI Worldwide Drives Payments Transformation for South Africa’s Altech Card Solutions, a Division of Altron

ACI Worldwide, a leading global provider of real-time electronic payment and banking solutions, today announced that Altech Card Solutions (ACS), a division of Altron, one of South Africa’s leading technology companies, is utilizing ACI’s UP Retail Payments to better serve its large multi-national retail customers in South Africa and across the African continent.”

Providers

American Express Expands Popular ‘Pay It Plan It’ and Pay Over Time to U.S. Consumer Green, Gold and Platinum Cards

“As customers’ needs have evolved, American Express continues to bring innovative features and benefits to Card Members. Starting on August 1, Card Members have more ways to pay for the things they buy with the expansion of Pay It Plan It to its iconic U.S. Consumer Green, Gold and Platinum Cards, and Pay Over Time – already available on Green and Gold – to Platinum Cards.”

August 3, 2020

TOP POST

Companies

Apple Buys Startup to Turn iPhones Into Payment Terminals

Bloomberg (paywall)

Apple Inc. has acquired Mobeewave Inc., a startup with technology that could transform iPhones into mobile payment terminals, according to people familiar with the matter. Mobeewave’s technology lets shoppers tap their credit card or smartphone on another phone to process a payment. The system works with an app and doesn’t require hardware beyond a Near Field Communications, or NFC, chip, which iPhones have included since 2014.”

On The Web

Companies

Google signs up six more partners for its digital banking platform coming to Google Pay

TechCrunch

“Google is expanding its plans to offer digital banking services in the U.S. The company announced today it’s partnering with half a dozen more banks to offer digital checking and savings accounts to Google Pay users in the U.S., starting sometime next year. The new partners include Bank Mobile, BBVA USA, BMO Harris, Coastal Community Bank, First Independence Bank, and SEFCU. They join Google’s existing partners, Citi and SFCU, announced earlier, for a total of now eight banks lined up for the project.”

Companies

NPCI Weighs Cap on UPI Transactions for Payment Platforms

Economic Times

“The National Payments Corporation of India (NPCI) is thinking of ways to limit the Unified Payment Interface’s (UPI) dependence on any single third-party application.It proposes to do this by restricting the share of transactions of any single payment company, people familiar with the matter said.NPCI owns and operates UPI in the capacity of a not-for-profit “umbrella body”.The burgeoning UPI ecosystem is currently dominated by Google Pay, Paytm, Walmart-owned PhonePe and Amazon Pay, who together control over 90% market share.”

Providers

House Passes Appropriations Amendment to Fund Postal Banking

American Banker (paywall)

“The House passed a package of appropriations bills Friday including $2 million for the U.S. Postal Service to launch postal banking pilot programs across the country. The amendment to the appropriations bills was put forward by Reps. Bill Pascrell, D-N.J., and Marcy Kaptur, D-Ohio, who argued that postal banking could be a valuable resource to unbanked Americans as well as low-income neighborhoods.”

Providers

Kabbage Considers a Sale. It’s Expected to Seek Up to $1 Billion.

Barron's

“Kabbage, the fintech startup that outperformed many large lenders during the Paycheck Protection Program, is weighing a sale, two people familiar with the situation said. The Atlanta company has hired FT Partners after receiving expressions of interest, the people said. Kabbage could sell for $750 million to $1 billion, one person said.”

Systems

Consumers, Flush With Stimulus Money, Shun Credit-Card Debt

Wall Street Journal (paywall)

“When unemployment soared this spring at the start of coronavirus lockdowns, credit-card debt and delinquencies were widely expected to surge as struggling households borrowed more to make ends meet. Instead, amid the deepest economic crisis since the Great Depression, the opposite happened. Credit-card debt in the U.S. and other advanced economies has fallen. Fewer people are late on their credit-card payments. Consumer demand for new borrowing—through credit cards, personal loans and even pawnshops—is down sharply.”

On The Wires

Companies

American Express and Marriott Bonvoy Introduce Limited-Time Offers Designed to Fuel Local Travel and Experiences

“Today, American Express and Marriott Bonvoy™, Marriott International’s travel program, are announcing rewarding limited-time offers available to the Marriott Bonvoy™ American Express® Cards. As travelers plan to explore locally and take more road trips, these benefits will reward Card Members for purchases at U.S. gas stations, U.S. restaurants and participating Marriott Bonvoy hotels. In addition to current Card benefits, the enhanced offers will be available from August 3 to October 31, 2020, for eligible Marriott Bonvoy, Brilliant and Business Card Members.”

Deals

Paya and FinTech III Announce Merger Agreement

“Paya, a leading integrated payments and commerce solution provider, and FinTech Acquisition Corp. III (“FinTech III”), a special purpose acquisition company, announced today that they have entered into a definitive merger agreement. Upon closing of the transaction, the combined company (the “Company”) will operate as Paya and will be listed on NASDAQ under the new symbol PAYA. The transaction reflects an implied enterprise value for the Company of approximately $1.3 billion.”

Domains

Finexio Partners With Billtrust to Expand Supplier Network and Meet Growing Demand for Digital Payments

Finexio, a fintech company offering a comprehensive accounts payable payments-as-a-service solution, today announces its partnership with Billtrust, the leader in B2B order-to-cash solutions, to provide faster digital payments to its suppliers and support the continued growth of its supplier network. Billtrust’s Business Payments Network (BPN) bridges the world of B2B payments by connecting buyers and suppliers on one powerful platform. This partnership expands the coverage of suppliers that can be paid electronically through Finexio’s network.”

Tech

Global Payments Joins Forces With AWS to Deliver the Future of Payments

“Today, Global Payments Inc. and Amazon Web Services (AWS), an Amazon.com company, announced a new, multi-year collaboration agreement to provide a cloud-based issuer processing platform to financial institutions around the world. As part of this agreement, Global Payments and AWS will strategically collaborate to transform Global Payments’ core issuing platform to deliver secure, innovative solutions for the payment industry at scale.”

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