Payments News
A leading payments industry news source
for more than 17 years. Glenbrook curates
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important daily headlines in payments.

April 17, 2019

TOP POST

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.”

On The Web

Domains

Apple Pay Comes to Uber Eats in Nearly 20 Markets

TechCrunch

“Apple Pay has been a payment option in Uber’s app since fall 2014 , but the payment option hadn’t made its way over to Uber’s food delivery app, Uber Eats. Now, that’s changing. Uber today announced that users who want to use Apple Pay can finally do so using FaceID or TouchID in the Uber Eats app, instead of filling out their billing information.”

Domains

Vietnam Tops Global Growth for Mobile Payments

NFC World

“Vietnam has recorded the highest growth in mobile payments in the past year, according to research by PwC. Singapore also saw strong growth, climbing 12 percentage points from 34% in 2018 to 46% in 2019. PwC says this highlights how efforts by mobile payments companies and its government – which began paving the way for digital payments in late 2017 – are paying off. PwC’s Global Consumer Insights Survey 2019 found that the percentage of consumers paying by mobile in Vietnam has increased to 61%, up from 37% in 2018. The 24 percentage point increase was also the largest of the six South East Asian countries that took part in the global survey.”

Risk & Fraud

Indian IT outsourcing giant Wipro is investigating reports that its own IT systems have been hacked and are being used to launch attacks on its customers

Krebs on Security

“ndian information technology (IT) outsourcing and consulting giant Wipro Ltd. [ NYSE:WIT ] is investigating reports that its own IT systems have been hacked and are being used to launch attacks against some of the company’s customers, multiple sources tell KrebsOnSecurity. Wipro has refused to respond to questions about the alleged incident. Earlier this month, KrebsOnSecurity heard independently from two trusted sources that Wipro — India’s third-largest IT outsourcing company — was dealing with a multi-month intrusion from an assumed state-sponsored attacker.”

On The Wires

Domains

Product Return Specialist Returnly Raises $19M Series B From David Sacks’ Craft Ventures and Max Levchin

Returnly , the post-purchase payments company that gives brands and retailers a competitive advantage, today announced that it raised a $19 million Series B investment. The round was led by Craft Ventures , the venture capital fund co-founded by serial entrepreneur David Sacks, with participation from Max Levchin’s Affirm, and existing investors. The company will use this new financing to give thousands of retailers a leg up against Amazon.”

Providers

Payments Associations Launch Center for Payments™

“The Center for Payments™ was formed with the common belief that dynamic changes in the payments industry requires improved insights to aid payment systems participants and help inform decisions to evolve and grow payments capabilities. By developing and gathering market intelligence, the Center for Payments will generate actionable data for decision-making that can be used by all members of the participating associations, especially small and mid-sized financial institutions that may not have access to this type of market intelligence.”

Providers

EMVCo, FIDO Alliance, and W3C Form Interest Group to Enhance Security and Interoperability of Web Payments

“The Web Payment Security Interest Group charter defines a scope of activities that includes formulation of a vision for web payment security, development of use cases, gap analysis, liaisons with other organizations, and identification of standardization opportunities for each organization. The Interest Group does not publish specifications. Technical work is carried out in other groups within each organization, such as the FIDO2 Technology Working Group, the W3C Web Payments Working Group, or one of EMVCo’s working groups.”

Reports

US Payments Forum Market Snapshot: Future of Payments Is About Customer Experience, Choice and Security

“Contact chip payments are now firmly ingrained in the U.S. market, with payments volume coming from chip-enabled merchants approaching 70% [i] . To improve customer experience and provide more payment choice in-stores, the payments industry is now turning its attention to contactless chip technology for fast and secure payments with a tap of a card or mobile device. Momentum is growing: tens of millions of contactless cards are expected to be issued this year and 78 of the top 100 merchants accept contactless payments today.”

Reports

Entersekt Survey: Banking App Innovation Key to Boosting Adoption and Everyday Usage

“Great digital customer journeys start early, even before individuals sign up as clients. US banks and credit unions are giving attention to remote account opening, and Entersekt found it could be an early deal breaker. Over three in four regular banking app users (77%) say they would be more likely to choose a bank offering mobile account opening than one that does not. Interestingly, those on the cusp of Generations X and Y (those aged 35–44) value remote enrollment more so than their younger and older counterparts do (86% against 78% aged 18–34 and 73% aged 45+).”

April 16, 2019

TOP POST

Deals

Mastercard Redefines Choice at Checkout With Acquisition of Vyze

“Vyze shakes up traditional models by connecting merchants with multiple lenders, allowing them to offer their customers a wide range of credit options online and in-store. These financing options provide shoppers with additional payment flexibility at the exact moment of purchase, complementing Mastercard’s existing card and ACH-based solutions.”

On The Web

Deals

Just Eat Acquires IPad POS System Practi in Attempt to Lock-in Restaurants

TechCrunch

“Just Eat — the marketplace for online food delivery which IPO’d but which is now under increasing pressure from several avenues, not least Uber and Deliveroo — has decided to add to its ‘quiver of arrows’ by acquiring Practi , a software service that provides independent restaurants and small chains with tablet-based Point of Sale (PoS) and restaurant management systems.”

Deals

Brex, the Credit Card for Startups, Raises $100M Debt Round

TechCrunch

“The company, which provides a corporate credit card designed specifically for startups, has previously raised $215 million in equity funding at a $1.1 billion valuation in the less than two years since it graduated from the Y Combinator startup accelerator. Debt, Brex chief executive officer Henrique Dubugras tells TechCrunch, will power the company’s next phase of growth, which includes the launch of a credit card for large enterprises.”

Domains

Facebook Is Discontinuing P2P Payments in Messenger in the UK and France on June 15

TechCrunch

Facebook is pulling away from its ambitions to provide peer-to-peer money transfers via Messenger in Europe. Today, the company announced that it would be discontinuing the service — which let individuals send money to each other — in the two countries in the region where it had rolled it out, the UK and France on June 15 of this year. It appears that for now, the service will remain active in the US, where Facebook holds a number of money transmitter licenses .”

Security

The Ultimate Account Security Is Now in Your Pocket

Google

“We consider security keys based on FIDO standards, like our Titan Security Key , to be the strongest, most phishing-resistant method of 2SV on the market today. These physical security keys protect your account from phishers by requiring you to tap your key during suspicious or unrecognized sign-in attempts. Now, you have one more option—and it’s already in your pocket. Starting today in beta, your phone can be your security key—it’s built into devices running Android 7.0+. This makes it easier and more convenient for you to unlock this powerful protection, without having to carry around additional security keys.”

Systems

UK: Spend Your Crypto Instantly With Coinbase Card

The Coinbase Blog

“Coinbase Card is currently only available in the UK, but we plan to support other European countries in the coming months. To find out more about the Coinbase Card, there’s more information on the website . This card is issued by Paysafe Financial Services Limited. Paysafe Financial Services Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011(FRN: 900015) for the issuing of electronic money and payment instruments.”

Tech

Alibaba Will Let You Find Restaurants and Order Food With Voice in a Car

TechCrunch

“On Tuesday, Alibaba announced at the annual Shanghai Auto Show that it’s developing apps for connected cars that will let drivers find restaurants, queue up and make reservations at restaurants, order food and eventually complete a plethora of other tasks using voice, motion or touch control. Third-party developers are invited to make their in-car apps, which will run on Alibaba’s operating system AliOS.”

Tech

Finnish Banks Double Contactless Transaction Limit to €50

NFC World

“Customers in most Finnish banks can now use their bank cards to make contactless payments up to €50. The previous limit was €25. Banks that are introducing the new upper payment limit include OP, Nordea, Danske, S-Bank, Oma Säästöpankki, POP Bank, Handelsbanken and Savings Banks. Aktia and the Bank of Åland will introduce the new €50 limit later in the spring.”

Use

Mastercard Ruling: Almost Every UK Adult Could Receive Payout

The Guardian

“Almost every adult in the UK could receive a payout of up to £300 from Mastercard after a court ruling paved the way for a £14bn class action lawsuit. The legal action taken by former financial ombudsman Walter Merricks claims that 46 million UK consumers paid higher prices in shops over a 16-year period because of allegedly excessive transaction fees charged by Mastercard…”

Use

China Opens First 3D Facial Recognition Metro Line in Shandong

East China News Service

“Metro Line 1 in Jinan City, Shandong Province has become the first in China to adopt 3D facial recognition technology. After uploading their facial information via an app for the metro line, passengers can simply face a device at the entrance and pass the turnstile within two seconds.  The error rate is said to be only one in 1 million, while the technology can also detect fraudulent use of photos, videos or masks.  The 3D facial recognition technology-empowered gate can allow entry of 30 to 40 passengers per minute, a great boost to efficiency, said a staff member.”

Users

What Retail Recovery? Malls Under Pressure As Stores Close

Wall Street Journal (paywall)

“Strong retail numbers last year from department stores Macy’s Inc. and Nordstrom Inc.raised hopes that the beleaguered mall industry would finally rebound. But recent developments this year are pointing to more trouble ahead. A number of struggling retailers are closing stores and being more selective about where to open ones, dimming prospects for many mall owners and investors.”

On The Wires

Tech

Barclays Launches “Control Your Card” Digital Features to Give Cardmembers More Control Over Credit Card Usage

“Barclays US Consumer Bank, one of the nation’s fastest-growing credit card issuers and online banks, today announced new digital features that will let cardmembers actively manage a variety of card-related activities within the Barclays mobile app. These new features give cardmembers an enhanced level of control over how, when and where their Barclays-issued credit cards are used. With just a few clicks on a mobile device, the new level of control goes beyond the basic on/off fraud prevention capabilities that exist in the marketplace today.”

April 15, 2019

On The Web

Deals

Publicis Surges as $4.4 Billion Epsilon Deal Deepens Data Push

Bloomberg

Publicis Groupe SA made its boldest move yet into digital marketing with the French advertising group’s $4.4 billion purchase of Alliance Data Systems Corp. ’s Epsilon unit. The shares rose the most intraday in six months.    The owner of agencies Saatchi & Saatchi and Leo Burnett Worldwide is betting Epsilon’s trove of consumer data from loyalty programs and email campaigns will help it shift away from traditional TV commercials and billboards, where sales are falling as consumer giants spend more online.”

Domains

DBS Launches Mobile Payments Service for SMEs

FinTech Insight

“To use DBS MAX, customers scan the merchant’s FPS QR code and pay in real-time via their own mobile banking apps.DBS says the system not only makes payment reconciliation easier, it also eliminates the need for physical payment terminals an reduces the costs and risks associated with handling cash.The app has been trailed at 10 firms, across a range of sectors, including retail and food and beverage.”

Providers

Gift Transactions on Zelle Prompt Chase to Roll Out Gift Cards for Mobile And Digital Users

Digital Transactions

“Features include the ability to add a short message, track which cards were sent and for how much, and schedule special events, such as a recipient’s birthday. Values allowed range from $5 to $100, and the recipient can spend the cash immediately upon receipt. The bank is not charging a fee for the service, but the sender must use the recipient’s email address. “No other bank has something quite like this.” says a Chase spokesperson by email.”

Systems

Cryptocurrencies Are ‘Clearly Shaking the System,’ IMF’s Lagarde Says

CNBC

“Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund. Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents.”

Tech

India’s National Payments Corporation Wants to Build a Blockchain Solution

CoinDesk

“The National Payments Corporation of India (NPCI) – a bank consortium-owned umbrella organization for retail payments and settlements – is planning to use blockchain technology to boost digital transactions. According to a report in Business Today on Sunday, the NPCI has said it plans to develop a “resilient, real time and highly scalable” blockchain solution using open-source technology. The organization has already issued an Expression of Interest (EoI), calling for entities to bid to develop a blockchain solution for the payments space.”

On The Wires

Domains

Mastercard Commercial Cardholders Get Even Greater Transparency Into Amazon Business Purchases

“azon Business purchases, helps businesses better track expenses, expedite financial reconciliation and streamline the filing and auditing of expense reports. This product is currently available in Germany, the United Kingdom, and the United States for Mastercard commercial cards issued by Bank of America Merrill Lynch, Barclays Bank PLC, Citi, J.P. Morgan, Lloyds Bank, NatWest and The Royal Bank of Scotland.”

April 12, 2019

On The Web

Companies

Bezos Says Third-party Amazon Sellers Are “Kicking Our Butt”

Quartz

“t’s not often you see a CEO so sanguine about an ass whooping. “Something strange and remarkable has happened over the last 20 years,” Amazon’s Jeff Bezos said in his annual letter to shareholders . “Third-party sales have grown from 3% of the total to 58%. To put it bluntly: Third-party sellers are kicking our first-party butt.” Bezos has reason to be happy about the numbers, of course. They still mean more money for Amazon, whether Amazon is making the sales itself or just collecting the fees from sales by independent sellers on its marketplace.”

Companies

Its IPO Document Shows the Massive Extent of Uber’s Card Business

Digital Transactions

“The statement says 87% of Uber’s $49.8 billion in gross bookings last year were on credit or debit cards. That translates into $43.5 billion in card volume. Uber defines gross bookings as the total dollar value, including taxes, tolls and fees, of its ride-sharing, dockless bike and scooter rentals, Uber Eats restaurant deliveries, and freight services. Gross bookings rose 45% last year from 2017’s $34.4 billion, which in turn were 79% higher than 2016’s $19.2 billion. Uber customers usually book their services through Uber’s mobile app. San Francisco-based Uber says it paid $749 million in credit card processing fees in 2017, up 62% from $461 million in 2016.”

Deals

Naspers-owned PayU Doubles Down on India With $70M Deal to Buy Wibmo

TechCrunch

PayU, the Naspers-owned payments company that competes with the likes of PayPal but focuses mainly on emerging markets, has made an acquisition to expand its business in India. It has acquired Wibmo, a startup based out of the U.S. (Cupertino, to be exact) that mostly operates in India. PayU is paying $70 million for the startup, bringing the total its invested in building its business to $500 million in the last two years.”

Use

How the London Underground Brings in 53,000 New Contactless Users a Day

PaymentsSource

“More than 55% of all payments in the London transit system are made via contactless instead of the legacy Oyster card, according to TfL figures for early April provided to PaymentsSource. And that’s just the tip of the iceberg, as the rapid uptake of contactless payments on London’s transit system and overall contactless usage show little signs of slowing. More than 21.6 million journeys per week are made on London public transit using contactless payments. More than 53,000 new contactless cards or new mobile contactless payments enter the TfL each day, and one in eight contactless journeys come via Apple Pay, Google Pay, Samsung Pay, or other mobile wallet apps.”

April 11, 2019

TOP POST

Reports

The Latest AFP Fraud Study Unveils a Surprising Jump in Fraud on the ACH

Digital Transactions

“Some 33% of responding organizations said they had been the victims of actual or attempted fraud on ACH debits last year, up from 28% in 2017. Meanwhile, 20% reported being the targets of ACH credit fraud, up markedly from 13%. Surprised? So was Magnus Carlsson, manager for treasury and payments at the Bethesda, Md.-based AFP, a trade group for financial managers in a wide variety of industries. The ACH results were “probably the most stunning numbers we saw in this report,” says Carlsson. Before releasing the study, Carlsson adds, “I went back to the research department and said, ‘You have to double-check these numbers.’””

On The Web

Providers

Small Banks Rebel Against the Most Important Tech Firms You Have Never Heard Of

Wall Street Journal (paywall)

“Lead Bank, a community lender in Kansas City, Mo., wanted to offer the payments app Zelle to its customers. But it had a problem. A company called Fiserv Inc. which provides much of the bank’s underlying technology, said Lead wouldn’t be able to launch Zelle until June at the earliest. Big U.S. banks rolled out the service nearly two years ago.”

Reports

Millennials Now Do 60% of Their Shopping Online

Digital Commerce 360

“U.S. millennials make more purchases online than in stores and younger millennials are even more likely to shop online than older ones, according to a survey conducted in January by CouponFollow, an online coupon platform. Millennials in 2019 make 60% of their purchases online, the survey of 1,002 millennials (consumers ages 22 to 37) found. That’s up from 47.0% in a survey CouponFollow conducted in 2017. Millennials now make 40.0% of all purchases in stores, down from 53.0% in 2017.”

Security

Krebs on Security

Krebs on Security

“Google this week made it easier for Android users to enable strong 2-factor authentication (2FA) when logging into Google’s various services. The company announced that all phones running Android 7.0 and higher can now be used as Security Keys, an additional authentication layer that helps thwart phishing sites and password theft. As first disclosed by KrebsOnSecurity last summer , Google maintains it has not had any of its 85,000+ employees successfully phished on their work-related accounts since early 2017, when it began requiring all employees to use physical Security Keys in place of passwords and one-time codes.”

Systems

Coinbase Launches Debit Card in the UK

TechCrunch

“When you buy cryptocurrencies on Coinbase , many users simply don’t know what to do with them. Customers in the U.K. can now get a good old plastic card and spend cryptocurrencies in-store and on any online website. This is a Visa card, so it should work with any merchant on the Visa network. The company is launching a separate mobile app called Coinbase Card to manage your cryptocurrency balances. For instance, you’ll be able to choose whether you want to use your Bitcoin, Ethereum or Litecoin balance with your card.”

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