8.23.18 Your morning briefing

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

Dead cows
PayPal has grabbed a large share of the American payments market, with 58% of Americans using the service, which makes up 14% of online payments in the U.S., according to Logica Research.

The research also found Americans keep more than twice the amount of money in PayPal accounts as cash in their own physical wallets. Americans with PayPal accounts have an average of $485 at any given time, compared to $196 in cash.
Copper's decline
The maturation of digital payments in the U.K. is pressuring fintechs to build new innovation to keep up with demand, and it may also force the oldest payment modes out of existence.

The Bank of England argues the large amount of digital payments means the inflationary impact of removing 1p and 2p copper coins would be minimal and would likely have no significant upward pressure on prices.

The main argument against removing the coins is merchants will "round up" prices, thus causing inflation. The Bank of England officials say the overall cash payment share has fallen so much that it reduces the overall opportunity to round up prices if 1p and 2p coins were not an option.

Sunsetting a brand
As blockchain company ZenCash expands into new areas such as bill payments, it's changing names to market services beyond its core P2P cryptocurrency features.

Now called Horizon, the company will focus on using the ZEN cryptocurrency to support publishing, a treasury voting system, and a pending ZenVault wallet.

The company also plans an expansion into secure messaging, according to a release.

A boost for crypto payments
Coinbase is adding support for Ink Pay in the Coinbase Wallet app.

Ink Pay is a feature from Ink Protocol, a decentralized P2P platform. The feature allows users to research sellers and leave feedback.

Users make payments through third-party marketplaces via ethereum or Ink's own XNK token.

From the Web

Inside the bluster and lies of Petro, Venezuela's cryptocurrency scam
WIRED | Wed August 22, 2018 - For Jorge Farias, boss of Venezuelan startup Cryptobuyer, the Petro is personal. Anything in the crypto world is. But it’s a special case with the Petro, the new cryptocurrency sanctioned by Venezuela’s government and designed to boost the bolivar, the country’s inflation-plagued national currency.

P2P lending fintech startup KoinWorks just capped a total of US$15.7M funding
Yahoo News | Thu August 23, 2018 - Indonesia-based P2P lending fintech startup KoinWorks has officially become a Series A-company after announcing yesterday that it has received a total of IDR 230 Milyar (US$15.7M) funding led by Mandiri Capital Indonesia (MCI), with Gunung Sewu and Convergence Venture taking part. KoinWorks claims to be the P2P lending company that owned the majority of retail lending market in the country.

Mexico's new government wants fintech, banks to help financial inclusion
Reuters | Wed August 22, 2018 - Mexico’s next government will look to fintech companies and large corporate banks to increase financial inclusion in the country, where only one-third of adults have a bank account, senior officials said on Tuesday. Arturo Herrera, one of two future deputy finance ministers, said in an interview that the lack of financial inclusion was one of the biggest obstacles in the new government’s fight against poverty, inequality and slow economic growth.

More from PaymentsSource

As Zillow enters rent payments, Cozy and YapStone adapt
As the digital rent market attracts new entrants like Zillow, mainstays like Cozy and YapStone are pressured to diversify and seek new audiences for their digital payments technologies.

Lessons from MCX: 'One size does not fit all'
The retailer-driven Merchant Customer Exchange initiative to create a common mobile wallet had good intentions, but it overlooked the nature of retail itself — that each company has to differentiate itself to lure customers.

Trump's policies repeatedly threaten payments, but with little effect
Since his 2016 campaign, Donald Trump has loomed over the international payments system with a series of threats that are proving increasingly empty.

Data: The new causes of mobile payments fraud
Account takeover (ATO) fraud currently drives the largest fraud losses at North American financial institutions within digital channels, according to a new report from Aite Group and Early Warning, the bank organization that operates the Zelle payment network brand. And according to data from RSA, phishing remains a vital part of this scam.

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