9.24.18 Your morning briefing

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

Counterpunch
Google has answered Paytm's claim that Google Pay violates user privacy, stressing it does not use individual transaction data for monetization purposes.

Reuters reports Google has also tweaked its privacy policy to emphasize that it does not collect, store, or use personal data tied to Google Pay (the policy had previously included the words "and/or disclose"). It is not known if that adjustment is related to the Paytm complaint to Indian regulators.

It's the second time in recent weeks Google has clarified that it does not monetize payment data — it also said a collaboration with Mastercard does not includes profiting from payment data.
Mobile BART
The San Francisco Bay Area's transit agency is scheduled to consider a $461 million contract with Cubic Transportation Systems that would upgrade the Clipper fare-payment system for BART, Muni Metro and other transit agencies in the region.

Transit systems will still rely on the closed loop Clipper card for NFC contactless fare payments but will add a mobile app for virtual cards and a reload option. The system will not adopt open loop payments, though that can be added later.

Open loop payments are common on transit systems outside the U.S., and cities such as New York are attempting to support Apple Pay and other apps without requiring a distinct transit card.

Opening in North America
The push for PSD2-style open banking in the U.S. and Canada is gaining steam as a major lobbyist for the technology is opening a North American wing.

The Financial Data and Technology Association, which spent five years lobbying for open banking in Europe and the U.K., will advocate for similar laws in Canada, the U.S. and Mexico, and will also push for global standards to guide data sharing between banks and third parties.

The group's North American members include Equifax Canada, Intuit, Kabbage, Morningstar, Moven, Envestnet Yodlee and others.

Not on the ballot
Several jurisdictions have considered supporting bitcoin for political donations, but California will not be among them.

The state has banned candidates for state office from receiving cryptocurrencies for donations, reports Coindesk, which adds state regulators are concerned about transparency.

The U.S. government has allowed cryptocurrencies as an "in kind" political donation since 2014.

From the Web

New payment system keeps HK in forefront
China Daily | Mon Sept 24, 2018 - The Faster Payment System, launched by the Hong Kong Monetary Authority on Sept 17, will bolster the city's leading regional role in the international financial system. From the end of this month, customers in Hong Kong will be able to make and accept immediate fund transfers and payments seamlessly on their smartphones.

Alibaba invests in clothes-sharing platform YCloset
China Daily | Sun Sept 23, 2018 - YCloset, a leading Chinese garment-sharing platform, has completed an undisclosed strategic fundraising round from e-commerce giant Alibaba Group Holding Ltd, to better cater to female users' fashion requirements. The move also marks Alibaba's latest attempt to promote the diversified development of its business.

Beaten-down cryptocurrency XRP surges 80% in 24 hours, nearly triples in value on week
CNBC | Fri Sept 21, 2018 - XRP rose more than 80 percent Friday to a high of 77 cents, bringing its gains this week to 185 percent, according to data from CoinMarketCap.com. Its market capitalization jumped to roughly $26.8 billion, surpassing ethereum as the world's second most valuable cryptocurrency behind bitcoin.

More from PaymentsSource

To get bigger partners, fintechs must see past consumer fear
Fintech developers are trying to monetize data without scaring away privacy-conscious consumers — and, increasingly, to make sure bigger financial companies don't overstep the same boundaries.

PSD2’s strong authentication doesn't end fraud risk for merchants
This European regulation means fraud detection will inevitably need to evolve as the fraudsters find new ways to exploit new loopholes, according to Catherine Tong, vice president and general manager for Accertify.

6 biggest threats to Alexa payments
The variety of these new devices may seem random or experimental, but each is responding to a specific threat to Amazon's work in voice-controlled commerce.

Hurricane Florence brings back the oldest credit card tech
Before Hurricane Florence hit the U.S. this month, certain merchants prepared by stocking up on an unlikely item in the digital payments era: 1970’s-era carbon paper credit slips.

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