7.6.17: Your morning briefing
Welcome to the PaymentsSource Morning Briefing, delivered daily. The information you need to start your day, including top headlines from PaymentsSource and around the Web:
In transit: Sydney's ferry service is testing contactless payments with Mastercard, adding another city to the card network's global strategy for contactless and mobile payment for mass transit, reports The Daily Mail. The deployment in Australia will enable commuters to use a contactless card or mobile wallet to access the system, and takes advantage of larger contactless usage in Australia: 82% of Australians use contactless payments at least once per week, according to Mastercard. The card brand has also deployed contactless transit payments in Singapore, in a project that spans Asia Pacific, London, Milan and about 100 other cities. The Sydney deployment comes as Transport for London reports contactless payments are expanding quickly, with 40% of transactions coming via contactless, up from 25% in early 2016.
Tesco's rewards go contactless: Following up on the launch of a new mobile app, U.K. grocery retailer and financial institution Tesco is launching a marketing program that includes the use of contactless cards. The Clubcard will allow consumers to tap at checkout to accrue points, reports CampaignLive. Consumers can also sign up for the card and use it immediately while in the store, and access vouchers with the touch of a button at checkout. The chain plans to add about 400 staffers to market the program and aid consumers.
Monzo's hiccup: Monzo shut off card payments for about three hours on Thursday because of a glitch with a supplier. The glitch resulted in bad execution and incorrect displayed balances. Payments were being declined, but still showing up as successful; and top ups to the Monzo prepaid card were not loading. Additionally, P-to-P transactions were crashing. The company did not disclose the root of the problem, but did resolve the issue and resume full operations. Monzo has suffered several glitches tied to third parties in the past year. It suspended its API because of usability issues. Monzo also halted technology outsourcing after a third party issue caused Monzo's services to be unavailable for about a day in March.
'Smoother payments' advance in the U.K.: Application programming interfaces are a big part of the PSD2 directive to advance data sharing among payment companies in Europe, and they're also advancing in the U.K. Open Banking, a mandate from the Competition and Market Authority, has unveiled a new API specification for accounts, transaction and payments initiation. Finextra reports the specification will help third parties set up payments on behalf of clients, as well as speed authorization for transactions across different gateways and payment schemes.
From the Web
Omise acquires online payment business Paysbuy from Thai operator Dtac
TechCrunch | Wed Jul 5, 2017 - It isn’t often that you see startups buying chunks of large corporates, but that’s what has happened in Thailand this week. Following the closure of its $25 million ICO token sale yesterday, Asian fintech startup Omise has bulked up its core payment business after it acquired Paysbuy from Thailand-based mobile operator Dtac. The deal will see Omise take over Paysbuy’s assets and services, which include a payment gateway and digital wallet used by both consumers and businesses in Thailand and Myanmar. Omise is based in Thailand, and it has raised over $20 million from traditional VCs. Its service also operates in Indonesia and Japan with plans to expand in Asia, while it is hatching grand plans for a decentralized payment network called Omise Go.
Fintech and regions key to £43bn lift for economy
The Times | Thu Jul 6, 2017 - Britain could add £43 billion to its economy by 2025 despite Brexit by developing its regions and focusing on new technology. That is the conclusion of a report on the future of financial services by PWC and TheCityUK that argues that Brexit poses a challenge but is also an opportunity for wide-scale change. To achieve it, the government must do more to co-ordinate departments and collaborate with industry. Banks, insurers and asset managers must “focus on rebuilding trust, embedding more ethical and customer-centric behaviours”, the report said. London would remain the main centre but other areas would also benefit.
With 'sticky' customers, more payments processors may combine for growth
Reuters | Wed Jul 5, 2017 - In the world of financial technology, where startups are the focus of M&A chatter, a $10 billion combination of two back-office processors whose roots date to the 1970s might seem unusual. But Vantiv Inc's (VNTV.N) plan to acquire Worldpay Group PLC (WPG.L) shows that the sheer size of some legacy players - and the inertia of their customers - makes them more interested in buying one another than newer rivals, bankers and analysts said. The two companies facilitate payments by linking stores to customers' bank and credit-card accounts.
More from PaymentsSource
Square, Venmo have little to lose with cards. And lots to gain.
It is perceived wisdom that digital payment companies that put out physical cards are doing so as an acknowledgement that payment behavior is slow to change and that consumers need to walk before they can run with newer payment paradigms.
Apple's P-to-P play will push retailers to adopt Apple Pay
The world has been waiting for the recent person-to-person payments announcement from Apple, and it’s finally here. “Pay Cash” allows anyone with Apple Pay (and iOS 11) to send money to their friends, colleagues, or family.
Will consumers accept Apple's use of facial recognition?
Apple may add facial recognition to new iPhones, a move the government likes as a security measure, but one that may face pushback from users.
Alipay reaches out to merchants to target Chinese residents in the U.S.
Ant Financial’s Alipay is expanding its reach in the U.S. beyond tourists to connect with the growing local Chinese consumer community for everyday purchases.