Morning Brief 10.9.20: Ripple gets into the merchant credit game

Register now

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

Building block

Ripple is attempting to address the small-business liquidity crunch by allowing its affiliated digital asset XRP and On-Demand Liquidy service to support short-term credit.

Through a product called Line of Credit, businesses can purchase XRP from Ripple, and are charged a fee based on the amount borrowed. Ripple is piloting Line of Credit with RippleNet clients, who focus on cross-border money transfers. The company contends the service allows businesses to more quickly invest funds from pre-funded accounts.

Small businesses have been particularly hard hit during the financial crisis that accompanied the coronavirus. Digitally-focused payment companies such as PayPal, Kabbageand Square have pushed credit products as a way to speed more funds to merchants facing cash flow issues.

Checking out

Checkout-free technology firm Standard Cognition has signed Chartwells, a unit of Compass Group, which operates thousands of stores on college and corporate campuses.

The initial deployment will be at Chartwells on the University of Houston campus, which will be retrofitted to support touchless shopping and payments. Other stores will open shortly in North Carolina and Ontario.

Standard is among the firms offering checkout-free technology to retailers wishing to add the technology to counter Amazon Go and to reduce the amount of contact between consumer, checkout stations and staff.

Startup fund

Paytm plans a developer fund of about $2 million for equity investments in startups that want to list their apps on Paytm's new app store.

The Indian payment giant is trying to lure developers to the app store, which it set up partly due to the feud between Paytm and Google, reports Economic Times in India.

Google is requiring app store developers who take payments to use Google's billing system, which charges a 30% fee. During the squabble, Google briefly shut off Paytm, contending the company had violated Google's policy against processing gambling payments.

Carbon footprint

Amazon's environmental strategy has prompted the company to add electric vans, which are slated to deploy in 2022.

The vans were built through a partnership between the e-commerce firm and Rivian Automotive, which is scheduled to deliver 10,000 vans to support delivery initially, reports CNBC. Amazon hopes to have 100,000 electric vehicles deployed by 2030.

Amazon has set a goal to use all renewable energy by 2030 and be carbon neutral by 2040. In August Amazon signed a separate deal with Daimler's Mercedes-Benz, which will sell 1,800 electric vans to Amazon.

From the web

Affirm files confidentially to go public
TECHCRUNCH | Thursday, October 8, 2020
This afternoon Affirm, a startup focused on providing point-of-sale credit to consumers making online purchases, announced that it has filed to go public.

Amazon India's payments unit gets $95.5 mln from parent ahead of festive season
REUTERS | Thursday, October 8, 2020
Amazon.com Inc has invested 7 billion rupees ($95.51 million) in its Indian payments unit, ahead of the festive season, data from business intelligence firm Tofler showed.

Apple made ProtonMail add in-app purchases, even though it had been free for years
THE VERGE | Thursday, October 8, 2020
On Tuesday, Congress revealed whether it thinks Amazon, Apple, Facebook, and Google are sitting on monopolies. In some cases, the answer was yes. But also, one app developer revealed to Congress that it — just like WordPress — had been forced to monetize a largely free app.

More from PaymentsSource

Superapps give a new purpose to remittances
The companies looking to bolster their presence and offer more services are hoping it will lead to greater sustainability and longevity of their platform, says Ding's Rupert Shaw.

Half of Immediate's early wage users switch to Visa Direct within two months
In the two months since earned wage access (EWA) provider Immediate launched Visa Direct as a payment option, the near real-time method is already accounting for 50% of its payments.

Full PCI compliance dips while security threats mount
It's a perplexing problem for those developing and instituting Payment Card Industry data security standards: Even as threats rise, the number of organizations that fully comply continues to drop.

An AML/fraud team can halt the 'mule train'
As a pandemic keeps Americans at home, many of the elderly who are most susceptible to COVID-19 find themselves vulnerable to another threat: Criminals who are looking to exploit their increased isolation and financial stress to recruit them into money mule scams. These scams are designed to trick seniors into transferring stolen funds, often leaving victims’ money untraceable and unrecoverable.

AI can bring needed speed to respond to multiple challenges
During this time of economic disruption that has deep implications for the corporate sector, financial institutions need to make AI a core part of their efforts to adjust to the new normal and take advantage of the enabling technologies that can propel adoption quickly, says Canonical's Kris Sharma.

When T&E meets WFH, how does corporate expense reporting keep up?
The pandemic has caused a massive shift in corporate expenses, turning the company dime upside down as plane tickets give way to home office equipment. It’s a complication for those who track, approve and pay for these expenses, requiring a new approach in the back office.

In India, Google faces its own version of Apple's Epic showdown
Paytm’s decision to open its own app store after Google forced developers to use its billing system was a predictable move, as is the potential for fintechs to steal payment volume from the technology giants.

For reprint and licensing requests for this article, click here.
MORE FROM PAYMENTSSOURCE