Morning Brief 4.23.20: Facebook's $5.7B Reliance bet could help its Indian payments goals
The information you need to start your day, from PaymentsSource and around the web:
Facebook has agreed to pay $5.7 billion to acquire about 10% of Reliance Industry's digital arm in India, a move designed to boost Facebook's local presence. It could also advance the social network's payment and merchant activities.
The deal will give Facebook a stake in Jio Platforms, which includes Reliance's news, movie and music apps, reports Reuters. It also includes a yet-to-be-launched retail venture, JioMart, which will be integrated with Facebook's WhatsApp messenger. WhatsApp has about 400 million users in India
Facebook could use WhatsApp to boost JioMart's retail and transaction technology, helping Facebook compete with Amazon and Walmart, two U.S. retail giants which are investing billions of dollars to build a presence in India. WhatsApp is also part of Facebook's mobile payments strategy in India and other markets.
PPP's growing suppliers
The Small Business Administration's Paycheck Protection Program is drawing fintechs eager to serve as a rail to push funds quickly to small businesses shut during the coronavirus pandemic.
Merchant acquirers are also jumping in. Fattmerchant, for example, has partnered with small-business software company Womply to streamline lending. The collaboration gives Fattmerchant a license to facilitate PPP applications, connecting businesses with SBA-certified lending.
The partnership also includes help for businesses in putting together applications.
Ripple claims YouTube failed to disable scams that impersonated CEO Brad Garlinghouse offering to give out XRP cryptocurrency.
The blockchain company claims the fake offers harmed its brand and YouTube did not prevent the fraud from occurring on its platform, reports Finextra.
The promotions didn't even appear to offer "free" crypto, but instead offered XRP in exchange for an initial payment. One part of the scam resulted in $15,000 in stolen funds, Ripple alleges, while claiming total losses of hundreds of thousands of dollars.
Apple Pay has added The Federal Association of Volksbank and Raiffeisenbank in Germany, a substantial addition since it adds a consortium of more than 1,000 credit unions and other financial institutions.
These institutions will boost Apple Pay's addressable market in Germany by more than 30 million, reports 9to5mac.
Apple earlier made a deal with Worldline to supply most of Germany's point of sale terminals with NFC technology. The news comes as Germany starts to reopen some of its businesses following a coronavirus lockdown.
From the web
World Bank: Global Remittances Set To Decline Sharply As A Result Of Coronavirus
FORBES | Wed April 22, 2020
The World Bank has predicted global remittances will fall by around 20% in 2020 as economic activity grinds to a halt due to the coronavirus pandemic and labor migrants lose wages and access to remittance services.
New York payments startup exposed millions of credit card numbers
TECHCRUNCH | Wed April 22, 2020
A massive database, which belongs to Paay, storing millions of credit card transactions has been secured after spending close to three weeks exposed publicly to the internet.
Fintech firms race to plug gaps in UK’s coronavirus relief measures
CNBC | Thu April 23, 2020
U.K. fintech firms have been pushing for approvals to provide emergency business loans introduced by the government.
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The coronavirus response has already created payments' future
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Veem specializes in cross-border payments, but when small-business customers clamored for help this month with emergency SBA loans, the fintech responded.
Payments is innovating too fast for EMV to be a main solution
Any independent owner who watches the payments market closely may also ask why they would want to spend $25,000 on an upgrade now, when chip card could be replaced by contactless, mobile or biometric payments in just a few years’ time?
Open banking is electronic money institutions' open door
Electronic money institutions (EMIs) make their living by throwing out the rulebook, moving fast and thinking freely. Innovative services based on e-wallets and prepaid cards are commonplace and support a wide variety of use cases, from state pension and benefit payments to payroll, gift cards, loyalty, gaming, FX transfers, personal finance management solutions and more.