Morning Brief 7.14.20: Lloyds plans subscription payments feature
The information you need to start your day, from PaymentsSource and around the web:
Lloyds plans to add a subscription management feature to its app, making it the latest company to jump into the fast growing business model.
Consumers will be able to view debit card subscriptions in real-time and receive push notifications alerting them of changes, reports Finextra. Lloyds reports more than 1.3 million customers have added subscriptions since March, up from 325,000 in February.
Subscriptions have increased rapidly for some providers during the coronavirus shutdowns as consumers' spending habits changed. The trend has attracted Twitter, which is reportedly hiring engineers for a potential subscription portal.
Cosmopolitan and Klarna plan a Gen Z and millennial focused virtual shopping event in the U.S., hoping to create an event that's similar to Amazon Prime Day or Singles Day in China.
Called "Hauliday by Cosmo x Klarna," the August 8-9 event will feature Adidas, Sephora, rue21, Rhone and others from Klarna's network of about 4,200 merchants. Klarna says it's working off a base of about 72 million monthly Cosmopolitan readers and 8 million Klarna users.
Prime Day has become one of Amazon's marquee events, enabling it to showcase other products while influencing other online merchants; and Alibaba's Singles Day has become the world's largest virtual shopping event.
On the block
Singapore blockchain payments initiative Project Ubin has finished its prototype and will begin its commercial rollout.
JPMorgan Chase, the Monetary Authority of Singapore and Temasek have co-developed Ubin, which uses a distributed ledger to support settlement, trade finance, cross-border payments, foreign exchange and integration with other blockchain platforms, explains Newsbreak, a local site.
Once live, the partners, who have worked with about 40 other firms during five phases of testing, will begin work on adding other payment types and use cases.
Paytm has hired former Walmart exec Harsh Gupta to lead its merchant payments operation.
Gupta had been product manager of Walmart's mobile payment app in India, reports Entrakr. The hire follows One97's recent hiring of Anubhav Sharma, the former head of UPI, to be vice president of Paytm Payments Bank.
Paytm is adding talent as it faces increased competition from Phone Pe and Google Pay, which controls a majority of the UPI volume in India.
Point of sale credit company Sezzle has raised about $90 million through a fully-underwritten institutional placement in Australia.
The four-year-old Sezzle is based in Minneapolis and received its license in California earlier in 2020. It partners with merchants to finance purchases, which are usually paid in installments without interest — with merchants paying fees to Sezzle.
Sezzle is part of a growing market of point of sale credit providers, including firms like Splitit, Affirm and Klarna.
From the Web
Regulators plot path for cross-border payments to counter Facebook
REUTERS | Mon July 13, 2020
Streamlining anti-money laundering checks, longer central bank opening hours and linking national systems would cut cross-border payment costs, global regulators said on Monday.
Breached Data Indexer ‘Data Viper’ Hacked
KREBS ON SECURITY | Mon July 13, 2020
Data Viper, a security startup that provides access to some 15 billion usernames, passwords and other information exposed in more than 8,000 website breaches, has itself been hacked and its user database posted online.
Brazil central bank must adapt regulation to big tech companies, director says
REUTERS | Mon July 13, 2020
Brazil’s banking regulation must adapt to big technology companies to ensure competition in the financial arena, central bank director Joao Manoel Pinho de Mello said on Monday in a webcast with newspaper Valor Economico.
More from PaymentsSource
To avoid bias, fintechs must address diversity from the start
The best intentioned efforts to bridge racial or gender gaps, or to create a more inclusive market for a financial project, will likely fail unless there’s careful attention paid to a lack of diversity at the onset.
LzLabs offers legacy system mainframe conversion to cloud
Cloud-based mainframe provider LzLabs is expanding into the North American market, seeking to help banks, payment companies, insurance providers, telcos and government entities convert legacy mainframes to software-based platforms.
Fraudsters aren't winning, but aren't going away either
Payment fraud remains a credible threat and unfortunate reality for the majority of businesses, something that is unlikely to go away as fraud methods continue to evolve, says JPMorgan Chase's Alec Grant.
Coronavirus crisis plays to the strengths of secured credit cards
With the COVID-19 health pandemic wreaking havoc on jobs, investments, consumer debt and lending, secured credit cards can address a vital need for people who may not have considered the product in the past.
Lawsuit against Plaid heightens focus on data privacy issues
Two California men have sued the data aggregator Plaid over alleged data privacy violations in a case that could have implications for firms that gather consumers' bank account data and feed it to fintechs.
Consumers in Canada shun cash and bank branches on virus fears
Canadian consumers are changing their banking habits to reduce physical contact with others because of COVID-19, according to a new study by McKinsey & Co.
Contactless payments is a matter of safety and convenience
Businesses have previously been conservative about the adoption of contactless, tap-to-pay features to collect payments from their customers. But as we look into the future of payments we have hit a tipping point in which businesses now need to be equipped for the rapidly evolving world of digital transactions or risk losing business to competitors who are.
Accounts payable can be digital and still make room for checks
Suppliers that still need to receive physical checks should still be able to do so. Even if they do, the process remains electronic on the accounts payable side, says AP side so that customers can issue check payments in the same batch as other electronic payments, says Nvoicepay's Angela Anastasakis.
The politics of keeping cash alive
The most recent legislative push to mandate cash is bipartisan at the outset, but there are divisions over how to put this plan into effect.
5 ways the coronavirus has locked down summer-break spending
Traditionally, consumers take summer vacations to recharge from the hustle and bustle of daily life, as well as to reconnect with families and friends, before moving on to the next phase of their lives such as the restart of schools or going back to work – but not this year.