Morning Brief 9.3.19: Apple Pay's still a sliver of the U.S. market

Register now

The information you need to start your day, from PaymentsSource and around the Web:

A small dent

Apple Pay has gained ground in the U.S. in the past year and is using recurring payments like transit to build a solid base to enroll users for Apple Card. But relatively speaking, Apple Pay is still a small part of the American payments market.

Apple's mobile wallet is used by 9% of U.S. consumers, reports 9to5Mac, citing data from Bain. That's far less than credit cards at 80%, cash at 79% and debit cards at 59% (people cited more than one method so it adds up to more than 100%). Apple Pay is a bit more popular than Venmo at 7% and Zelle at 6%.

Apple, and mobile payments in general, are much more popular in China, where Apple Pay comes in at 17% — much higher, but behind WeChat Pay at 84% and Alipay at 81%. The researchers attribute the difference to the pre-existing mature credit card market in the U.S.

Gender Gap

Three quarters of women in the payments industry say gender discrimination is "unacceptably high" while only 38% of men agree, reports the London-based Emerging Payments Association.

Additionally, more than half of the survey group of 174 people (78% were women) said they have personally experienced gender discrimination. The survey also found a "strong sense" that gender bias has impacted compensation and opportunity for advancement.

And three in five say men have better opportunities, 55% reported men would rather higher other men; and 16% say women get preferential treatment because there are fewer high-ranking women at payment companies.

Margin call

Venture capital firms have been pouring a steady stream of funds into blockchain payment startups, a trend that's accelerating as use cases diversify.

A group of VC firms led by Trinity Ventures has made a $12 million seed investment in Baton Systems, a three-year old Fremont, Calif.-based payments technology company.

Baton supports bank-to-bank payments, using a distributed ledger to process transactions in real time, eliminating the need for banks to prefund the margin percentage requirements that investors must cover when buying stocks, reports VentureBeat.

Loyalty breach

TGI Fridays in Australia has told consumers to change their passwords for the chain's rewards program after the restaurant left program data on the internet.

The incident did not include financial information, and there's no sign of an external hack, reports ThreatPost.

TGI Fridays did not reveal the scale of the leak, which is tied to its AI-driven marketing program. It also said the exposure was limited to Australian locations and did not impact the U.S. part of its chain.

From the Web

Banks and shops roll out new anti-fraud measures
BBC | Tue September 3, 2019
Lenders and credit card companies gradually start to roll out new measures to reduce card fraud known as Strong Customer Authentication (SCA). SCA originates from an EU directive designed to reduce payment card fraud across the continent.

Brazilian payment processing giant announces bitcoin support
YAHOO FINANCE | Sun September 1, 2019
Cielo announced its support for bitcoin and other cryptocurrency purchases via its 1.4 million point-of-sale devices. Customers will now have the ability to make bitcoin purchases through Cielo's point-of-sale devices by creating an account with its network partners, Uzzo or Criptohub.

Russell Stover Chocolates hit by data breach - what customers need to know
FOX BUSINESS | Fri August 30, 2019
Candymaker Russell Stover Chocolates announced that a recent data security breach at its stores potentially affected the information of customers’ credit and debit cards. There is no evidence, however, that the hack impacted online payments, the company said.

More from PaymentsSource

Do piggy bank apps help or hurt U.K. financial literacy?
As the U.K. rapidly transitions toward a cashless society — with U.K. Finance predicts that by 2028, just 9% of payments will be in cash — even pocket money is going digital. And the disappearance of tactile interaction with cash changes how kids learn about budgeting.

New front opens in fight over Fed's real-time payments network
The Federal Reserve’s recent decision to build a real-time payment system — against the wishes of a big-bank consortium that operates its own next-generation network — has kicked off a new phase in the fight over how Americans will move money in the future.

FedNow service and blockchain closely linked
Digital-age consumption habits. That's what the Federal Reserve Board is crediting in its decision to install a new round-the-clock payments system, called FedNow, by 2024.

Visa, Mastercard have made dispute resolutions a quick sprint
Fueled by increased card transaction volumes (and the corresponding increases in disputes processing), Visa and Mastercard have both made significant changes to the management of disputes through their networks.

For reprint and licensing requests for this article, click here.