8.31.18 Your morning briefing
The information you need to start your day, from PaymentsSource and around the Web:
Paytm's e-commerce venture, called Paytm Mall, is collaborating with BigBasket, an online grocery, in an effort to deepen ties with regional retailers, reports Economic Times.
Other recent moves includes a revenue sharing partnership with Future Retail, which owns chains such as Big Bazaar and fashion shops in India.
Low-tech B2B payments are becoming a major problem in the U.K., where procurement methods are coming under attack from the businesses themselves.
More than half of business in the U.K., or 54%, are using business purchase processes that are "not fit," according to research from Invu. And 23% say there's an urgent need to fix processes.
That's much worse than just two years ago, when 36% of businesses reported concerns about purchase processes, according to Invu.
Wonga, one of the U.K.'s largest payday lenders, has filed for administration (the U.K.'s version of bankruptcy) after receiving numerous consumer complaints.
The company has appointed Grant Thornton as administrator, and has held emergency talks with the Financial Conduct Authority, reports the Financial Times.
The company received an emergency cash infusion of about $16 million early in August, the FT reports, but that was followed by an 80% spike in complaints and compensation claims.
Saving money by getting rid of money
India's central bank is considering a rupee-backed digital currency in order to cut the costs of minting physical cash.
The country has spent $90 million printing paper notes, reports Coindesk, an outlay that has the central bank researching how that expense can be managed through digital means.
Cost is the latest reason India's government has given as a reason to reduce cash. India has already cut a large portion of paper money out of its economy, though the earlier cuts were attributed to reducing crime and encouraging digital payments.
From the Web
Hong Kong virtual bank licence will be out of reach for all but a few, says fintech boss
South China Morning Post | Fri August 31, 2018 - Hong Kong Monetary Authority’s decision to set a minimum capital requirement as high as HK$300 million (US$38 million) to obtain a virtual banking licence is likely to mean only a few applicants meet the criteria and receive approval, according to Neat, a financial technology start-up based in the city.
To boost Amazon Pay in India, Amazon reportedly acquired Tapzo, an ‘all-in-one’ aggregator app, for $40M
TechCrunch | Thu August 30, 2018 - Amazon has paid around $40 million to acquire Tapzo, a startup that aggregates a number of app-based services — such as Uber, Ola, food delivery services Swiggy and Zomato, Book My Show, bill payment service BillDesk and more — into a single app. Amazon is reportedly paying between $30 million and $40 million, and its intention is to leverage Tapzo’s one-stop services app to help grow Amazon Pay usage in the country.
Tencent-backed Airwallex to join push for Hong Kong virtual bank license
South China Morning Post | Fri August 31, 2018 - Tencent-backed payment operator Airwallex has become the latest fintech company to show interest in joining the city’s virtual banking push. Airwallex co-founder and chief executive Jack Zhang said the company will team up with a traditional bank and other local partners as part of the application process, although he declined to reveal their identities.
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