8.9.17: Your morning briefing

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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:

BofA launches multi-wallet support in China: Bank of America Merrill Lynch has launched a payments collection service that supports mobile and card payments through UnionPay's Merchant Services Company, making BofA an early non-Chinese bank to offer this mix of collection and reconciliation. The partnership allows BofA's clients to support a range of virtual wallets and UnionPay cards through a single account and point of support for online and physical payments. "Mobile payments have been growing at a rapid pace in China, driven by increasing use of virtual wallets such as Alipay, WeChat Pay and UnionPay," said Faisal Ameen, head of Asia Pacific Global Transaction Services at BofA Merrill, in a press release. China has reportedly provided additional guidance for outside companies that wish to set up a payments network in the country, a move that's accelerated Visa and Mastercard's longstanding strategies to build domestic markets in China.
Australia's Digital ID debuts: CUA, Australia's largest credit union, and Travelex are the first companies to use a digital identity system from Australia Post that's designed to remove steps for authentication. Finextra reports the program, Digital ID, enables people to enter ID information once, and can then authenticate through a smartphone app. CUA will use the new ID system to support its rewards program, while Travelex will use Digital ID to aid in Know Your Customer anti-money laundering procedures, which the forex company described as "onerous." CUA also hopes to use Digital ID in partnership with other financial institutions and service providers in the future. Digital identity is considered to be an alternative to traditional usernames and passwords and is also a way for card issuers to drive blockchain-powered ID protection.

What's in a (pass)word?: The digital prompts that guide password writing — requiring uppercase letters, special characters and numbers — in most cases trace to the work of one person, Bill Burr, a former manager at the National Institute of Standards of Technology. The rules annoy most people are are part of the reason there are efforts to evolve beyond passwords in favor of more flexible authentication to protect mobile apps and digital transactions. And Burr himself has weighed in against the rules he helped create. Gizmodo reports Burr, who drafted the rules in 2003, didn't know a lot about passwords at the time and didn't have a background in security. He said the research came from a white paper that dates to the 1980s, before the Internet, and the rules are likely too complex for most people to understand. Gizmodo also reports the more complex passwords based on the rules are easier to crack than a string of words that are easier for the user to remember.

ATMChain extends digital marketing: ATMChain's open platform will support DECENT Network's blockchain technology for ATM marketing. ATMChain delivers digital advertising and has reached deals covering more than 7,000 screens in China. The company seeks to deliver ads and other marketing that is tailored to the person using the ATM, and can also receive incentives for movies and other products through an API connection to the merchants. ATMChain contends the pain point in ATM content is reaching specific users with personalized messaging and incentives, similar to a mobile app or website. Ad creators publish ads while ATMChain distributes and rewards site operators that post the most content. "DECENT as the underlying protocol is not only the cornerstone for ATMChain, but a robust high-frequency blockchain that gives our product a significant boost in terms of technology support," said Kevin Yan, chief architect of ATMChain, in a release. ATMChain is also conducting an Initial Coin Offering, which starts this week in Beijing.

From the Web

Here's Why Payment Considerations Are More Important Than Ever In Retail Marketing
Forbes | Tue Aug 8, 2017 - Between artificial intelligence, online shopping and mobile, retailers have a lot to contend with in 2017. And those that want to survive into the next era are going to have to make more room on their plates to prepare for it. Whether you’re a one-store operation or a global enterprise, the same rule applies. You need to cater to changing customer preferences if you’re going to stay in the game. And one of the major game-changers beyond etailing and online presence is how people pay for your products. From handling cryptocurrency to loyalty and the omnichannel experience, payment processors are increasingly valuable when it comes to marketing.

Why Blockchains Fork: A Tale of Two Cryptocurrencies
Fox Business | Tue Aug 8, 2017 - On August 1st, a new cryptocurrency called Bitcoin Cash appeared online. For the first time in Bitcoin's eight-year history, the original blockchain Opens a New Window. network underwent what's called a "hard fork." A hard fork occurs when a small faction of Bitcoin (BTC) miners split off onto their own blockchain network, spawning Bitcoin Cash (BCH).

Railsbank, a new fintech startup from founder of Currencycloud, raises $1.2M led by Firestartr
TechCrunch | Wed Aug 9, 2017 - Railsbank, a relatively new fintech startup co-founded by CEO Nigel Verdon, who previously co-founded money exchange and payments platform Currencycloud, has raised $1.2 million in a funding round led by seed investment firm Firestartr. The company, yet to see its full launch and over a year in the making, offers what it describes as an open banking and compliance platform aimed at other companies, including other fintechs, that have global banking requirements that need to be accessed programmatically via an API.

More from PaymentsSource

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While solutions to help employees manage their travel-related expenses have evolved steadily over the past two decades, innovation in the space has really accelerated in the last five years.

P2PE’s role with merchants shifts after EMV
Point-to-point encryption (P2PE) advanced with the Payment Card Industry data security standard's updated guidelines in 2015, but the technology has not held the spotlight much since then.

Mobile making a difference in international money transfers
Even as mobile payments at the point of sale have been slow or even faltering, as most research indicates, use of mobile for making large money transfers appears to be skyrocketing.

Overstock supports more cryptocurrencies beyond bitcoin
One of the biggest hurdles that all cryptocurrencies first face is merchant acceptance. Without it, consumer adoption is constrained.

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