6.07.18 Your morning briefing
The information you need to start your day, from PaymentsSource and around the Web:
Amazon's Second City
Amazon has chosen two locations in Chicago for its cashierless Amazon Go store, as the e-commerce giant plots an expansion of Go outside of Seattle.
The new stores will be in the Willis Tower, formerly the Sears Tower, and the Ogilvie Transportation Center, a commuter rail terminal that includes retail, reports the Chicago Tribune.
The Willis Tower location is a little ironic, since Go and Amazon in general are considered to be major threats to traditional retail stores such as Sears, though Sears has not been headquartered in the Chicago skyscraper for many years. Amazon is also expected to open a Go store in San Francisco's Union Square, with additional locations in Seattle and Los Angeles.
Italian building blocks
The Italian Banking Association will conduct a blockchain test with more than a dozen banks to test to see if the technology can power interbank reconciliations.
The banks will work with ABI Lab, the banking association's development center; and the R3 Blockchain-based Corda platform, according to a Google translation of an ABI release.
The banks will test account matching, interbank payments, remediation and the performance of smart contracts on transactions in the network. NTT Data is also part of the project.
U.K. regulators have fined India-based Canara Bank about $1.2 million and barred it from accepting deposits for five months for anti-money laundering failures in its U.K. division.
Hindustan Times reports the failures at the bank affect almost all levels of the company, including senior management. These executives were warned of AML problems and did not take adequate steps to reply, according to the newspaper.
The problems included a failure to identify people who could be compromised by politics, as well as a failure to identify suspicious transactions.
U.K. sandbox grad scores a deal
Rivetz, which sells decentralized mobile security technology, has acquired DISC Holdings, a blockchain-based payment company.
Rivetz plans to combine the trusted execution environment (TEE) that's in most smartphones with DISC's blockchain to enhance security for mobile payments, according to Intocryptonews.
DISC was launched via the U.K.'s government sandbox program, which allows startups to test technology while subject to a lighter regulatory burden.
From the Web
Walmart, Visa resume lobbying battle over credit-card standards
The Business Times | Thu June 7, 2018 - Lobbyists for Walmart Inc and other retailers are joining forces with companies that process payments in the latest battle over the US$90 billion that US merchants pay banks annually to process credit and debit-card charges. Trade groups including the National Retail Federation plan to announce this week that they've joined with Washington advocates for companies such as First Data Corp.
Stung by compliance costs, Asia banks urge watchdogs to approve more fintech
Reuters | Thu June 7, 2018 - Regulators need to do more to allow new technologies that could help in the fight against money laundering, as financial institutions are struggling with ever-growing compliance costs, an Asia finance industry group said on Thursday. Banks have been slapped with vast sums for not preventing money being laundered through their accounts, and the call for action comes after Commonwealth Bank of Australia last week was fined a record US$530 million for breaching money laundering and terror financing laws.
An Encryption Upgrade Could Upend Online Payments
WIRED | Wed June 6, 2018 - At the end of June, digital credit card transactions are getting a mandatory encryption upgrade. It's good news—but not if you have an old device or depend on a retailer that hasn't completed the transition. When data moves from one device to another, it needs protection so it isn't intercepted and manipulated along the way.
More from PaymentsSource
The next Amazon Go? Albertsons plans a checkout-free future
Following the path paved by the checkout-free Amazon Go concept, the newly merged Albertsons and Rite Aid are developing their own technologies for faster and more efficient checkouts.
The cost of fraud fighting is as bad as fraud itself
There is a growing fraud problem encompassing much more than the direct value of lost merchandise. There is also manual order review, opportunity costs from false positives and the massive overhead of implementing fraud-fighting best practices, writes Ryan Breslow, CEO of Bolt.
Samsung Pay expands in Mexico via local banks
Samsung is providing service for over 200,000 users in Mexico after four months since launching in the country.
Mastercard taps Starling Bank to settle faster U.K. push payments
Mastercard is working with Starling Bank as its strategic partner to settle funds sent within the U.K. through its Mastercard Send service.