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November 1, 2019

TOP POST

Companies

Facebook’s New Patent Shows How The Tech Giant Wants To Help You Manage Your Spending – CB Insights Research

CB Insights Research

“Facebook wants to provide more financial advice. A recently approved patent from the company highlights a tool to “compare a user’s financial transactions to financial transactions of a group.” Simply, Facebook is offering a financial planning tool that allows users to benchmark their financial habits against their peers’ behavior.”

On The Web

Deals

Japanese Instant-credit Provider Paidy Raises $143 Million From Investors, Including PayPal Ventures

TechCrunch

Paidy , a Japanese financial tech startup that provides instant credit to consumers in Japan, announced today that it has raised a total of $143 million in new financing. This includes an $83 million Series C extension from investors, including PayPal Ventures, and debt financing of $60 million. The funding will be used to advance Paidy’s goals of signing large-scale merchants, offering new financial services and growing its user base to 11 million accounts by the end of 2020.”

Global

Google, Walmart Help Drive India Payments Past 1 Billion Transactions

Bloomberg

“Indian digital payments took off when the government pushed demonetization in 2016, invalidating most of the country’s high-value currency notes in a move to curb corruption and push Indians away from cash. The Unified Payments Interface or UPI has now surpassed a 100 million users three-and-a-half years after its launch, thanks to booming smartphone use and wireless data rates among the lowest in the world.”

Security

Pay With Your Face System Coming to Canada, but Not Everyone Is on Board

yahoo

“China has among the fastest rates of adoptions when it comes to non-cash payments. According to a 2018 McKinsey report, 40 per cent of in-person spending in China was through mobile digital wallets. The report said that China alone will generate half a trillion dollars in net new annual payment revenue by 2022. However, the technology raises concerns over privacy, security and surveillance – and not everyone is on board with it. Brenda McPhail, director of the Canadian Civil Liberties Association specializing in privacy and security, points to the potential for breaches and hacks, and mentions there is no infrastructure in place to protect people whose biometric data is stolen.”

On The Wires

Standards

US Payments Forum Releases Guidance for Streamlining EMV Certifications at the Fuel Pump

“Testing and certification have been cited as one of the biggest challenges for EMV chip implementation at the automated fuel dispenser (AFD). With the AFD fraud liability shift slated for October 2020, the U.S. Payments Forum has released guidance for streamlining this process and reducing redundancy, implementation time and effort required to achieve certifications for systems using electronic payment servers.”

October 31, 2019

On The Web

Companies

Investors Aren’t Moved by Uber’s Shift Into Banking

Quartz

“The “pivot” to fintech has been a popular strategy among Asian tech and ride-hailing companies. India’s Ola made fintech a priority in 2015 after spinning out its payment service, Ola Money , into a standalone app. Indonesia’s Go-Jek started its Go-Pay service in 2016. “There is some precedence for success,” Bernstein analyst Harshita Rawat said of big tech platforms in Asia offering financial services. Companies like Uber know a lot about their workers, and can leverage that information to offer tailored loans and other services.”

Regulation

Govt Considers Tax Incentives for Cashless Payments

The New Times | Rwanda

“Rwandan businesses that declare a significant portion of their revenue via cashless avenues could soon start receiving tax refunds. The Government, through the Ministry of Finance and Economic Planning, is currently conducting studies to determine the feasibility of the concept. Eric Rwigamba, the Director-General of the Financial Sector Development at the Ministry of Finance and Economic Planning, told The New Times the findings of the feasibility will be out by the first quarter of 2020.”

Risk & Fraud

How Cash-Out Attacks Are Becoming the Next Big Worry for ATM Operators

Digital Transactions

“Payments executives are starting to go public with concerns about a growing type of ATM fraud call the cash-out attack. Unlike the well-known, single-machine attack known as jackpotting , cash-out frauds allow criminals to gain access to multiple machines simultaneously at the network level. They then employ accomplices to visit these machines to draw out the cash. “Once they gain control of the bank’s system, they need to monetize that access. Therein lies the ATM cash-out,” says Tia Ilori, senior director for fraud and breach investigations at Visa Inc. Ilori says Visa has detected cash-out attacks—some successful, some thwarted—at 97 financial institutions in the past year. Visa will not disclose how much has been stolen in these attacks.”

Use

Zero Financial Releases Mobile Banking App on Android

Mobile Payments Today

“Zero, the San Francisco-based banking app, announced that it is now available for Android after its launch earlier this year on the iOS platform.  Zero provides a Zero Checking account and a credit card that provides users with the chance to earn a minimum of 1% cash back, with up to 3% back on certain purchases. The mobile app and card are offered at four different levels, including Quartz, Graphite, Magnesium and Carbon, with each level representing a different opportunity to earn points and additional features.”

On The Wires

Global

Global Payments Announces Strategic Partnership With Desjardins Group in Canada

“Global Payments Inc. (NYSE: GPN), a leading worldwide provider of payment technology and software solutions, today announced an agreement with Desjardins Group, the leading cooperative financial group in Canada, to acquire its existing merchant acquiring business and portfolio of approximately 40,000 merchants. As part of the transaction, Global Payments will enter into an exclusive 10-year marketing alliance agreement under which Desjardins will refer members to Global Payments for payment technology and acquiring solutions.”

October 30, 2019

On The Web

Risk & Fraud

Facebook Agrees to Pay UK Data Watchdog’s Cambridge Analytica Fine but Settles Without Admitting Liability

TechCrunch

Facebook has reached a settlement with the U.K.’s data protection watchdog, the ICO, agreeing to pay in full a £500,000 (~$643K) fine following the latter’s investigating into the Cambridge Analytica data misuse scandal. As part of the arrangement, Facebook has agreed to drop its legal appeal against the penalty. But under the terms of the settlement it has not admitted any liability in relation to paying the fine, which is the maximum possible monetary penalty under the applicable U.K. data protection law. (The Cambridge Analytica scandal predates Europe’s GDPR framework coming into force.)”

Security

Pay With Your Face: 100m Chinese Switch From Smartphones

Nikkei Asian Review

“In a country where mobile payments have spread by leaps and bounds in the past couple of years, some 1,000 convenience stores have already installed a facial payment system, and more than 100 million Chinese have registered to use the technology.   To receive the benefits, however, users need to first register their mug shots with smartphone applications offered by providers of facial payment services. A new regulation was also put in place in December requiring consumers to register their facial photos when signing up with a mobile service provider.”

Security

EMVCo Is Eyeing Some New Initiatives for 3-D Secure 2.0

Digital Transactions

“While much attention in the payments industry in recent months has focused on EMVCo’s Secure Remote Commerce (SRC) specification, another e-commerce spec from the standards body could be receiving some tweaks. These possible initiatives, which concern the 3-D Secure 2.0 standard, include a way of adding users’ travel data to help authenticate them, whitelisting known merchants, and recruiting voice recognition as a means of verifying user identity, according to Brian Byrne, director of operations for EMVCo., which is owned jointly by American Express Co., China UnionPay, Japan’s JCB card network, Mastercard Inc., and Visa Inc.”

Tech

Starling Bank Launches Two-in-one Euro Debit Card – AltFi News

AltFi

“This morning Starling unveiled a new feature to quickly let account holders convert their existing Starling debit card into a euro debit card with only a few taps. The feature works by letting the card detect the currency being used, and automatically switching between either Pounds or Euros. “A single card that can buy things in both Euros and Pounds is long overdue and something that we know our customers will value both in their personal and business lives,” said Starling’s CEO Anne Boden.

On The Wires

October 29, 2019

On The Web

Companies

Mastercard’s Top and Bottom Lines Benefit As Transaction Volume Jumps 20%

Digital Transactions

“Mastercard Inc. switched 20% more transactions on its worldwide network in the third quarter than it did a year earlier as purchase volumes remained strong and new growth markets generated more transactions. “Growth was broad-based,” Mastercard president and chief executive Ajay Banga said Tuesday morning during the company’s third-quarter earnings conference call with analysts.”

Companies

Synchrony Looks to Venmo’s Social Network To Help Market the P2P Service’s New Credit Card

Digital Transactions

“PayPal Holdings Inc. and Synchrony Financial have been sparing about the details of a new credit card they plan to issue for PayPal’s Venmo peer-to-peer payment service, but on Monday a top Synchrony executive said the partners are counting on a key characteristic of Venmo to help market the new card.  “We’ll use the social network of Venmo to drive utilization,” Carol Juel, Synchrony’s chief technology officer, told Digital Transactions News. Venmo was one of the first P2P networks to offer a Facebook-like experience that lets users fill in recipients on the purpose of specific payments and comment on new features. In cases like the new credit card, which is expected to debut in the second half of next year, the social network working alongside Venmo could help announce the product and induce at least some users to apply for it.”

Use

America’s Middle Class Is Addicted to a New Kind of Credit

Bloomberg

“It’s called the online installment loan, a form of debt with much longer maturities but often the same sort of crippling, triple-digit interest rates. If the payday loan’s target audience is the nation’s poor, then the installment loan is geared to all those working-class Americans who have seen their wages stagnate and unpaid bills pile up in the years since the Great Recession.”

Use

Venmo Launches a Rewards Program Offering up to 5% Back at Target, Sephora, Dunkin’ & Wendy’s

TechCrunch

“Amid increased competition in the digital payments space, Venmo today announced its first-ever rewards program, Venmo Rewards, which will allow users to earn automatic cash back on purchases when they pay with their Venmo card at select retailers. The company is kicking off the program with limited-time cash back deals, including 5% back at Target, 5% back at Sephora, 4% back at Dunkin’, 5% back and Wendy’s and more.”

On The Wires

Companies

CITCON Releases UnionPay Pass, the First Complete Suite of UnionPay Products in the U.S.

CITCON , the integrated mobile payment and commerce leader, today announced the release of CITCON UnionPay Pass at Money 2020. CITCON UnionPay Pass is the first complete suite of UnionPay products available online and offline globally, serving the world’s largest cardholder base of more than about 8 billion cards issued worldwide, particularly from China, South Korea and the United States.”

Deals

BlueSnap Acquires Armatic

“BlueSnap, a global payments technology company listed among Inc Magazine’s fastest-growing privately held companies, announced today that it has acquired Armatic, a leader in accounts receivable and invoicing automation. With this acquisition, BlueSnap will provide B2B companies with an efficient quote-to-payment solution aimed at increasing sales and reducing costs.”

Use

Mastercard Launches Integrated Product Suite to Optimize Healthcare Partner Technology

“Bringing its scale and advanced technology to healthcare, Mastercard is transforming its business by moving beyond cards and reimagining how its technology and capabilities can benefit the healthcare ecosystem. These solutions build upon Mastercard’s established role in healthcare – helping businesses provide their employees with convenient, reliable access to healthcare funds through Mastercard-branded Flexible Spending Account (FSA), Health Savings Account (HSA), and Health Reimbursement Arrangement (HRA) cards.”

October 28, 2019

On The Web

Companies

Uber Announces Deeper Push Into Financial Services With Uber Money

CNBC

“The company announced on Monday the formation of a new division called Uber Money to house its efforts, which include a digital wallet and upgraded debit and credit cards. The emphasis, at first, will be expanding Uber’s efforts to give its 4 million-plus drivers and couriers around the world access to a mobile bank account so they can get paid after each ride, according to Peter Hazlehurst, who will head the new division.”

Companies

Payment Startup Stripe Moves into Cash-Heavy Mexico After CoDi

Bloomberg

“Mobile payment startup Stripe Inc. began operations in Mexico, three weeks after after the launch of a similar central bank-backed system aimed at boosting the amount of digital payments used in the nation’s cash-heavy economy.    Stripe, used by companies including Uber Technologies Inc., touts a key difference between it and CoDi, as Banxico-backed cobro digital is known: Its users can make and take payments worldwide. Distrust of established banks in Mexico is high, and remains one of the key obstacles to widespread CoDi adoption.”

Domains

EMarketer Apple Pay Forecast Estimates, US Mobile Proximity Payment Forecast Estimates

eMarketer

“Apple Pay’s dominance, as well as increasing retailer adoption of proximity mobile payment technology, is driving transaction volume growth in the US, according to our latest forecast. We estimate US proximity mobile payment transactions will total $98.88 billion in 2019, growing 31.8% to $130.36 billion next year. By 2021, the total transaction value will reach $161.41 billion.”

Domains

Russia, China & India to Set up Alternative to SWIFT Payment System to Connect 3 Billion People

RT International

“Members of the BRICS trade bloc Russia, India, and China have decided to connect their financial messaging systems to bypass the SWIFT international money transfer network. Russia’s financial messaging system SPFS will be linked with the Chinese cross-border interbank payment system CIPS. While India does not have a domestic financial messaging system yet, it plans to combine the Central Bank of Russia’s platform with a domestic service that is in development. The new system is expected to work as a “gateway” model when messages on payments are transcoded in accordance with a certain financial system.”

Risk & Fraud

American Cancer Society’s Online Store Infected With Credit Card Stealing Malware

TechCrunch

“The American Cancer Society’s online store has become the latest victim of credit card-stealing malware. Security researcher Willem de Groot found the malware on the organization’s store website, buried in obfuscated code designed to look like legitimate analytics code. The code was designed to scrape credit card payments from the page, like similar attacks targeting British Airways , Ticketmaster , AeroGarden and Newegg .”

On The Wires

Companies

Mastercard Launches Accelerate to Supercharge Fintech Success

“Mastercard today launched Mastercard Accelerate, a global initiative that simplifies the way that Mastercard works with fintechs, giving them access to everything they need to grow quickly. Offering a simple, single entry-point to the company’s wide portfolio of specialized programs, Mastercard Accelerate gives start-ups and emerging brands support and assistance for every stage of their growth and transformation, from market entry to global expansion.”

Domains

Paymentus and Amazon Team up to Provide an Easier Way for Customers to Manage Their Bills With Alexa

“Paymentus Corporation, a leader in customer engagement and bill payment technology, today announced that billers on the Paymentus Instant Payment Network can soon offer customers a more intuitive way to interact with and manage utility bills via any Alexa-enabled device. With this announcement, customers of participating billers will soon be able to link their utility account to Alexa so they can simply ask for information about their bill including when their bill is due (e.g. “Alexa, when is my water bill due?”) and how their current bill compares to previous periods (e.g. “Alexa, compare my electricity bill to June last year.”)”

Global

Visa and Marqeta Offer Fintechs a Path to Growth in the World’s Fastest Growing Digital Payments Landscape

“Visa, the world’s leader in digital payments, and Marqeta, the modern card issuing platform, today announced a platform collaboration intended to ease global expansion for multi-national card programs. The project plans to provide a streamlined developer-friendly path for Visa issuers to build, test and launch digital-first card programs in 10 Asia Pacific markets. Asia Pacific is home to 4.3 billion people1, and with digital payments expected to increase in the region by $23 trillion over the next decade2, it is the world’s fastest growing digital payments landscape.”

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