ECB blames third party for outage; Paytm expands IoT payments

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Off target

The European Central Bank says a software issue at a third party is responsible for an outage that caused a payment settlement system to shut down for about half a day.

The Target2 system went down on Friday, leaving central banks and financial institutions unable to process payments and settle securities transactions. The ECB this week said it wasn't a security breach but a network device from an outside partner that suffered a software glitch, reports Finextra.

The ECB says Target2 and its other systems opened and closed normally during this week's business hours, and it will address the outage with the third-party vendor, which it did not identify. The central bank also did not disclose why the contingency modules also failed.

Coin card

Coinbase has opened its Visa debit card incentive marketing waiting list to users in the U.S., hoping to boost usage for merchant payments and ATM transactions without leaving Coinbase's wallet.

The card's incentives include 4% of purchase crypto rewards, and reward preferences can be managed directly through the Coinbase app. The rewards will be available initially in the U.S., though the card is available in more than two dozen countries.

While the card is a step toward mainstream payments for cryptocurrency, purchases are still converted to U.S. dollars before reaching the merchant and ATMs — a common intermediate step for most cryptocurrency payments.

IoT box

Paytm plans to install one million devices that support internet-of-things transactions by the end of the year.

The device, called Soundbox, comes with Paytm's QR code technology and uses a SIM card and connections to WiFi networks to execute transactions, reports Business Standard in India. It offers no fees for merchants to accept payments into their bank accounts.

Paytm has already deployed about 200,000 Soundbox devices with small merchants, street vendors and local kirana shops.

Scanning the menu

Fiserv's Clover point of sale system has added contactless ordering for restaurants in an effort to reduce contact for consumers and enable restaurants to adhere to public health advisories.

Called Scan to Order, the feature combines menu selections with payments through the same experience, eliminating the need to access a physical menu.

Fiserv acquired Clover from its $22 billion acquisition of First Data in 2019, a deal that allowed Fiserv to add a range of merchant-facing technology to accompany its bank technology.

From the web

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China's Ant Group Co Ltd has been cutting funding and staff support to many of the overseas e-wallet firms it has invested in as it pivots away from earlier ambitions of becoming a global payments leader, people with knowledge of the matter told Reuters.

Upgrade adds rewards program to its credit card
TECHCRUNCH | Thursday, October 29, 2020
Fintech startup Upgrade has been quite successful with its two flagship products — a low-cost credit card and personal loans. The company is making its credit card more attractive by adding rewards.

Stripe Climate is a new tool to let Stripe customers make carbon removal purchases
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Last year, payments giant Stripe announced that it would donate $1 million of its own funds annually into companies that are building technology to remove carbon from our environment, with the recipients of that investment announced in May of this year. Now, it’s expanding that commitment with a new product aimed at getting its customers to invest, too.

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