8.7.18 Your morning briefing

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

Social call
Still recovering from its ties to Cambridge Analytica and a stock selloff, Facebook wants banks to share more information about customers to broaden engagement on Messenger, one of Facebook's major forays into financial services and a point of contact for firms such as PayPal.

The Wall Street Journal reports Facebook has asked JPMorgan Chase, Wells Fargo, US Bank and Citigroup to weigh in on what functions it could host on its platform with an eye on obtaining more credit card transaction data.

While the banks are interested in using messaging technology and advanced "big data" analysis, they have thus far pushed back at Facebook's requests, the Journal reports.
Sandbox in the desert
Arizona has opened the U.S.' first fintech sandbox, enabling startups to test products with a substantially reduced regulatory burden.

Forbes reports the startups will still have to follow federal laws, though there may be some easing on the national level as the federal government plans to open a similar sandbox.

The sandboxes are part of a broader initiative to boost the U.S. fintech industry by pursuing PSD2-style open banking reforms.

A fine for Alipay
China's central bank has fined Alipay about $600,000 for an undisclosed violation of the government's payment regulations, Reuters reports.

Chinese regulators have fined Alipay several times this year, including penalties in April for poor data protection and misleading advertising.

Ant Financial, which operates Alipay, was also fined in connection with a data breach.

Visa chases Square
Visa has partnered with mobile financial services fintech Branch to offer financing to merchants that accept Visa cards.

The loans are designed to help the business funds operations, supply chains and expansions, with the credit applied directly to merchants' mobile accounts. Branch operates primarily in Latin America and Africa.

The product is similar to Square Capital, which makes microloans to mostly small merchants, with a portion of those merchants' future payments used to pay down the loan. PayPal offers a similar product.

From the Web

2 Recently Launched Square Products Are Game-Changers
The Motley Fool | Mon August 6, 2018 - Investors have come to expect exceptional results from the financial technology company. Square stock's mind-boggling 180% rise over the last twelve months means the pressure is on for the company to keep delivering strong growth across its business, as it executes on the growth opportunities in front of it.

Hang on, Apple; phone payments still need work
USA Today | Mon August 6, 2018 - Apple Pay and compatible smartphone-payment systems are finally conquering CVS and 7-Eleven, but the rest of retail remains a tougher sell. So do customer habits.

How Mastercard Is Winning New Business
The Motley Fool | Mon August 6, 2018 - Mastercard continues to differentiate its payment services from rivals and win new deals to become a one-stop shop. While some of the gains should be attributed to new tax laws and recent acquisitions that have yet to be lapped, there is evidence for plenty of organic growth as well.

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