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

November 12, 2019

TOP POST

Use

Amazon Go, the Cashierless Retail Store of the Future, Has Some New Competition

CNBC

“According to Grabango chief business officer Andrew Radlow, computer vision is a key distinction that separates Grabango from Amazon Go. Go stores use scales, shelf cameras and sensor technology to track items when they are taken off the shelf. Grabango’s computer vision technology uses small cameras that track when each product in the store is taken or replaced. These cameras are hidden inside a casing in the ceiling, similar to a fluorescent light fixture, called a G-rail. The technology automatically tallies up your items as you move through the store, enabling you to pay through the Grabango app when you leave the store, or”

On The Web

Global

Cashless Payments Are Growing Faster in India Than Just About Anywhere Else

Quartz India

“Cashless payments are taking off in India, growing faster than in other countries around the world. The shift has attracted a host of tech companies, backed by deep-pocketed foreign investors, battling for market share. Digital transactions in India increased by 55% last year, compared with 48% in China and 23% in Indonesia, according to data from the Bank for International Settlements (BIS). By comparison, cashless payments grew about 10% in the UK, a developed market where card transactions are already entrenched.”

Global

Nigeria’s Top Fintech Company Is Set to Be Africa’s First Home-grown Unicorn With Visa Investment

Quartz Africa

“One of Africa’s veteran fintech companies is about to become the sector’s first unicorn. Global payments giant Visa is paying $200 million for 20% stake in Interswitch, Nigeria’s largest electronic payments company, UK’s Sky  News reports . The investment places a billion-dollar valuation on 17-year old Interswitch and is a major boon ahead of a proposed initial public offering slated for  the London Stock Exchange next year.”

Use

More Borrowers Are Going Underwater on Car Loans

MarketWatch

“Some 33% of people who traded in cars to buy new ones in the first nine months of 2019 had negative equity, compared with 28% five years ago and 19% a decade ago, according to car-shopping site Edmunds. Those borrowers owed about $5,000 on average after they traded in their cars, before taking on new loans. Five years ago the average was about $4,000. Rising car prices have exacerbated an affordability gap that is increasingly getting filled with auto debt. Easy lending standards are perpetuating the cycle, with lenders routinely making car loans with low or no down payments that can last seven years or longer.”

On The Wires

Domains

Xoom Rolls Out Domestic Money Transfer Services in the U.S.

Xoom , PayPal’s international money transfer service, today rolled out the ability for customers to send money to recipients in the U.S. for the first time. Through strategic alliances with Walmart and Ria, Americans can now use Xoom to send money fast for cash pick-up typically in minutes at nearly 5,000 locations across the country.”

November 11, 2019

TOP POST

Providers

EU Banks Plot Pan-European Rival to Visa and Mastercard

NFC World

“A group of 20 European banks are working together on “setting up a pan-European payment system to challenge the dominance of Visa, Mastercard and technology companies such as Google and PayPal,” French news agency AFP reports . “The Pan European Payment System Initiative (PEPSI) would handle all forms of cashless transactions,” AFP was told.”

On The Web

Companies

Square’s Cleanup Still Leaves Questions

Wall Street Journal

“Fast transaction growth isn’t everything to Square, which is generating increasing revenue from lending, subscription services and its consumer Cash App. But like many payments businesses, the company’s take rate, or how much of each transaction it takes as revenue, is gently declining, due in part to doing business with larger merchants that drive tougher pricing. So volume is still very important.”

Companies

Amazon Will Launch New Grocery Store As Alternative to Whole Foods

CNET

Amazon on Monday said it plans to open its first new brand of grocery store in California next year, as it amps up its ambitious push to become a bigger name in food. “Amazon is opening a grocery store in Woodland Hills in 2020,” an Amazon spokesperson confirmed to CNET on Monday morning, soon after the company published four new jobs postings for the location. Woodland Hills is a neighborhood in Los Angeles.”

Domains

Singles Day: There Sure Are a Lot of People in China Buying Stuff Online

The New York Times

“The planet’s biggest shopping day is upon us, and Alibaba, the Chinese e-commerce behemoth , is poised again to show the world how many mountains of stuff it can persuade people to buy in the 24 hours of Nov. 11, also known as Singles Day. Last year, more than $30 billion worth of merchandise was sold on Alibaba’s platforms, by the company’s own count, making Black Friday look like a yard sale.”

Industry

Federal Reserve Proposal to Develop Round-the-Clock, Real-Time Payments System FedNow Service

Rohit Chopra, Federal Trade Commission

“I write to share my formal submission outlining my support for the Federal Reserve’s proposal to develop the FedNow Service, a new, round-the-clock, real-time payments system. The proposal is a natural extension of the Federal Reserve’s existing role in check clearing, wire transfers, and the automated clearinghouse (ACH) system. A private megabank monopoly over our electronic payments system will suppress innovation and distort incentives in our markets.”

Regulation

EU Antitrust Chief Examines Apple Pay

NFC World

““We’ve been asking quite a number of questions because we get many, many concerns when it comes to Apple Pay for pure competition reasons,” the EU’s Commissioner for Competition Margrethe Vestager told reporters during a news briefing at the Web Summit conference in Lisbon last week, Reuters says.”

Users

Returns Totaled $369 Billion In 2018, But Many Can Be Prevented – Retail TouchPoints

Retail Touch Points

“Returns hit the bottom line in multiple ways: the value of returned merchandise was $369 billion in 2018, and it takes, on average, more than seven people to handle processing a return. Additionally, 80% of first-time customers who return their order will never buy from that retailer again. However, most returns happen due to preventable issues, such as shipping the wrong item, a damaged product or inaccurate product description. This puts 65% of product returns under retailers’ control, and every $1 million in returns prevented adds $500,000 to their EBITA.”

On The Wires

Reports

Spending on U.S. Credit, Debit, and Prepaid Cards to Top $10 Trillion

Nilson Report

“Spending for goods and services initiated by credit, debit, and prepaid cards issued in the United States, which totaled $7.266 trillion in 2018, is projected to reach $10.086 trillion in 2023 according to statistics released this week from The Nilson Report, the leading card and mobile payment industry trade publication.  At the end of 2018, there were 6.96 billion credit, debit, and prepaid cards in circulation in the U.S. That total is expected to reach 8.02 billion at the end of 2023.”

November 8, 2019

TOP POST

Systems

Andreessen Horowitz Launches Free Crypto Startup School

TechCrunch

“With this initiative, a16z wants to democratize cryptocurrencies. Dixon and the a16z team has been involved in the cryptocurrency/blockchain space for seven years, and the firm now wants to share some of its learnings with entrepreneurs. This way, it could give a boost to the crypto community, which could create investment opportunities for a16z down the road — a16z says clearly that participating in the crypto startup school doesn’t mean you’ll receive an investment from a16z. It also positions a16z as a thoughtful investor when it comes to crypto startup investments — not just for participants of the crypto startup school but for the crypto community at large.”

On The Web

Deals

Snapdocs Raises $25 Million to Streamline Mortgages With AI

VentureBeat

“In a nutshell, Snapdoc’s toolset aims to cut down on manual mortgage processes by digitizing wherever possible. It automates scheduling for signings and manages payments to the tune of over $4 million per month, all while centralizing key information like order history, signer, and notary documents in a single portal. Signing agents can create white-labeled dashboards where clients can send new orders, add documents, and track progress. And those same agents get analytics on the backend, including a list of clients that generate the highest profit.”

Global

Rapyd to Launch Cashless Payments Platform in Singapore

Mobile Payments Today

“Rapyd, a London-based startup fintech, announced the launch of a Singapore payments platform that will help enable cashless transactions for businesses and consumers.  The firm, which received a remittance license from the Monetary Authority of Singapore last month, said it will roll out a comprehensive payments platform that will allow a range of bank transfers, conversion of cash to digital payments and expand the use of e-wallets like GrabPay and OCBC Pay Anyone.”

Providers

LA Is Fast Becoming a Fintech Hub As HMBradley Launches Another West Coast Challenger Bank

TechCrunch

“Add HMBradley to the list of Los Angeles-based startups looking to shake up the world of high finance typically dominated by East Coast giants with names like JPMorgan Chase, Citigroup, Morgan Stanley and Goldman Sachs. The new Santa Monica, Calif.-based bank joins companies like Aspiration and Acorns in trying to offer consumers new ways to manage their finances. Founded by a team of fintech veterans and backed by PayPal founder Max Levchin, HMBradley got its start in Levchin’s HVF Labs, a San Francisco-based venture studio.”

November 7, 2019

On The Web

Companies

JPMorgan Has a Plan to Help Amazon and Airbnb Look More Like Banks

Bloomberg

“The JPMorgan product would give tech companies the ability to provide millions of customers virtual bank accounts and to offer perks such as car loans or discounts on home rentals to those who keep money stashed there. The more customers use their virtual accounts to pay for services, the less the companies would have to spend on payment-processing fees to third parties such as JPMorgan.”

Companies

A Fast-Growing Cash App Highlights How Square Leverages Its Consumer And Merchant Sides

Digital Transactions

“If Square Inc. has made one thing clear in recent months, it’s that the company is determined to tie together two worlds most payments companies see as distinct: consumers on the one hand, and merchants on the other. That strategy took another step forward last month with Square’s announcement that its Cash App service now allows users to buy fractional shares of stock with no brokerage fees. The new service joins other features of the 4-year-old payment app, including the ability to buy Bitcoin. Added versatility like this will make the app more valuable to users, a base that includes consumers but also Square sellers, Jack Dorsey, Square’s chief executive, told stock analysts Wednesday afternoon.”

Deals

Stealth Fintech Startup Digits Raises $10.5 Million Series A From Benchmark and Others

TechCrunch

““As builders, there is nothing more exciting than cracking the next engineering puzzle; than perfecting the next design; than delivering the next capability to customers. And there is nothing more mind-numbing than the paperwork, and spreadsheets, and financial reports, and inscrutable transaction records that are all required to actually operate the business,” a Digits blog post earlier this year explained .”

Global

AsiaKredit To Pioneer Global Standards Of Responsible Finance And Client Protection For The Underbanked

PAGEONE

“AsiaKredit, a leading digital consumer finance fintech in the Philippines, is spearheading financial consumer protection and empowerment in the Philippines via the world’s first financial consumer protection standard, the Smart Campaign. The Smart Campaign is a globally recognized initiative by the Centre for Financial Inclusion at Accion (CFI), a U.S-based think-tank for financial inclusion.”

Reports

Federal Reserve Finds Strong Support For Its Real-Time Payments, Concerns Over Timing

Forbes

““ Over 90 percent supported the Federal Reserve operating a round-the-clock real-time payment and settlement service alongside services provided by the private sector,” the Fed said. Almost every comment — from community banks, regional banks, retailers, associations of convenience stores and gas stations, and e-commerce giants, favored a Fed real-time payment system. The main exceptions were TCH and its member banks plus, oddly enough, the corporate treasury group, the Association of Financial Professionals (AFP).”

On The Wires

Tech

Mastercard Partners With Tappy Technologies to Embed Payment Functionality Into Fashion Wearables

“Tappy’s patented contactless payment chips can be embedded into virtually any fashion accessory, transforming them into payment-enabled wearables. By partnering with Mastercard, Tappy can integrate its technology platform with Mastercard Digital Enablement Service (MDES) to tokenize payment credentials when consumers use their mechanical or digital watch or wearable to make a purchase at any merchant that accepts Mastercard contactless payments.”

Use

New Experian Credit Score May Improve Access to Credit for More Than 40 Million Credit Invisibles

“In a move designed to help credit invisible and thin-file consumers gain access to fair and affordable credit, Experian today announced Experian Lift™ – a new suite of credit score products that combines exclusive traditional credit, alternative credit and trended data assets to create a more holistic picture of consumer creditworthiness. Experian Lift, available for lenders in early 2020, is another step in Experian’s commitment to helping improve the financial health of consumers everywhere.”

November 6, 2019

TOP POST

Reports

U.S. FASTER PAYMENTS BAROMETER — SURVEY RESULTS

Glenbrook

“Glenbrook and the U.S. Faster Payments Council (FPC) are pleased to present results from year one of the U.S. Faster Payments Barometer. In the inaugural survey, over 700 industry professionals with broad representation from across the ecosystem responded. Results revealed how respondents are using faster payments today, the challenges facing their organizations, and what the industry needs to do to create a robust and ubiquitous environment that will foster adoption.”

On The Web

Companies

PayPal and Venmo to Move Into In-store Payments ‘next year’

NFC World

“PayPal is to begin a major new push into in-store payments next year, under both the PayPal and Venmo brands and using both NFC and QR codes, CEO Dan Schulman has told Axios . PAYPAL CEO: Dan Schulman Axios asked Schulman if it is important for PayPal to have a place in the physical retail store. “The short answer to that is ‘yes’, it will be important for us,” Schulman replied. “That’s because it is now beginning to take off. Before, it was kind of a solution looking for a problem.””

Deals

FreshBooks Launches Same-day Turnaround on Payments Through Chase’s WePay

Mobile Payments Today

“FreshBooks announced that it will be able to turn around payments within 24 hours for U.S.-based customers that have a Chase bank account.  FreshBooks Payments will be able to reduce the turnaround time for customers using Chase to same-day payments, subject to daily bank cutoff times, in comparison to the usual 2-5 day turnaround time, according to the company. For customers not using Chase, payments will be available as soon as the next day.”

Risk & Fraud

The Big Bitcoin Heist

Vanity Fair

“But the true value of the computers was far greater. If the thieves knew how to operate them, the machines could be used to mine Bitcoins—an operation that would churn out a continuous stream of virtual money for the burglars, all of it encrypted and completely untraceable. The criminals weren’t robbing banks, or even Fort Knox. They were stealing the digital presses used to print money in the age of cryptocurrency.”

Risk & Fraud

Facebook Sues Israel’s NSO Group Over Alleged WhatsApp Attack

Wall Street Journal

“In the suit, Facebook, which owns WhatsApp, filed Tuesday in federal court in California, the company says that NSO Group’s software was behind a sophisticated campaign to hack the phones and messages of journalists, human-rights advocates and other targets chosen by its clients, which include foreign governments.”

Tech

IBM, Bank of America Team Up on Public Cloud Aimed at Banks

Wall Street Journal

“The tool, unveiled Wednesday, features measures designed to meet the banking sector’s regulatory and compliance requirements, IBM and Bank of America officials said. They include automated security tools and top-level encryption—a process of preventing unauthorized access by converting data into code.”

On The Wires

Reports

InComm’s 2019 Holiday Index: Efficient In-Store Shopping Is Essential Element of Consumers’ Holiday Experience

InComm , a leading payments technology company, today released its 2019 Holiday Index, which for the second year in a row found that in-store shopping will be the most popular retail channel among consumers this holiday season. Based on survey responses from nearly 2,500 U.S. consumers, the report also concluded that gift cards are the top-ranked item on holiday gift lists, with a majority of shoppers planning to supplement these gift cards with additional items to provide a personal touch for recipients.”

Security

FICO Adds AI-Powered Authentication to Fight Fraud

“FICO (NYSE: FICO ), the leading provider of analytics and decision management technology, today announced that it is adding two new product families to its portfolio: FICO® Identity Proofing, which allows organizations to digitally onboard new customers without requiring in-person verification, and FICO® User Authentication, a comprehensive suite of capabilities including multifactor, biometric, and behavioral authentication. To support this effort, FICO has acquired EZMCOM, whose products are used by banks across the globe to protect more than 60 million customers.”

Security

PULSE and FICO Deliver Debit Fraud Service Innovation to Financial Institutions

“PULSE, one of the nation’s leading debit/ATM networks, recently adopted the FICO® Falcon® Platform to deliver new fraud-detection services to its network of more than 4,100 debit issuers. Collaborating with FICO, PULSE deployed enhanced fraud-detection and blocking capabilities to its issuers with customized capabilities made possible by the power of the FICO Falcon Platform.”

Tech

American Express Expands Virtual Card Footprint With Coupa Pay Integration

“Today, American Express and Coupa announced the availability of the American Express virtual Card as a payment option within Coupa’s leading business spend management (BSM) platform. The new payment integration with Coupa Pay, a set of payment and financial solutions within the Coupa BSM platform, is expected to first be available to American Express Corporate customers in the United Kingdom and Australia in late 2019 and the United States in mid-2020. The partnership will give businesses the ability to better manage supplier payments.”

Uncategorized

The Financial Data Exchange Reports Strong First-Year Growth

“The Financial Data Exchange was launched in October 2018 to unite the financial industry around a single, interoperable and royalty-free standard for consumer and business access to their financial data, addressing common challenges around the way the industry shares account information and enhancing security, innovation and consumer control.”

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