7.26.18 Your morning briefing
The information you need to start your day, from PaymentsSource and around the Web:
Square's chargeback bodyguard
Square is offering a feature that small businesses can use to build contracts to shield them from chargeback claims and payment disputes.
The Verge reports Square has not marketed the contract service heavily, but will start pushing it in August. The mobile point of sale company noticed its clients were asking for refunds more often after successful transactions, adding the chances of winning a card dispute are almost double when there's a contract.
Square has been adding features and services to round out its menu for small businesses amid increasing pressure from PayPal, Stripe and other companies. It recently entered a merchant credit partnership with eBay to increase its profile among retailers.
India's MPs attack Alibaba's stake in Paytm
Members of India's parliament are concerned about Alibaba's increasingly large investment in Paytm, contending it's a political, security and economic risk.
Outlook India reports members are particularly concerned about Paytm's banking application in India, contending it's a backdoor for Alibaba to capture India's domestic lending market, providing a platform for "predatory pricing," according to the news site.
Other members contend Alibaba's increased presence would pose a "security risk" by giving the Chinese e-commerce company access to more of the country's payment system. .
Paytm's also not happy
Meanwhile, Paytm is doing lobbying of its own. The online payment company's executives reportedly got into an argument with executives from companies outside India during a recent meeting with Indian government officials.
MoneyControl reports Paytm is angry the Indian government may ease rules that require local data storage after lobbying from Visa, American Express and Mastercard. Storing data locally would benefit Paytm—and investors like Alibaba—because Paytm's parent company, One97 Communications, stores all of its data on Indian servers.
While Paytm argues local storage would help India's economy, MoneyControl reports Paytm has taken advantage of local storage regulations by partnering with merchants to support Paytm's mobile wallet at the expense of Visa and Mastercard payments.
Air Canada, TD Bank, CIBC and Visa are proposing to pay $250 million to buy and manage Aimia's Aeroplan loyalty business, which had about $2 billion in liability as of March 31, in effect making it a $2.25 billion deal if accepted.
Air Canada originally owned Aeroplan, but spun it off in 2002. The airline recently announced it would withdraw from the loyalty scheme in 2020. That has caused the Aeroplan program to slow down due to consumer reluctance to use the program because of the uncertainty.
The two banks and Visa have set an August 2 deadline to accept the deal, which they say will ensure stability of consumers' "points" an enable a smooth transition to a new Air Canada-operated loyalty program in 2020.
Coinbase will allow consumers in the EU and Australia to spend cryptocurrency balances on digital gift cards, an early foray into gifting in the cryptocurrency market.
Through a collaboration with WeGift, Coindesk will support gift transactions at Nike, Tesco, Uber, Ticketmaster and others.
Coinbase won't charge withdrawal fees for gifting, and will be able to convert cryptocoins into Uber credits as well, according to a release.
From the Web
Chinese mobile payment giants Alipay, Tenpay fined US$88,000 for breaking foreign exchange rules
South China Morning Post | Wed July 25, 2018 - China’s two biggest mobile payment providers have been named among 27 companies and individuals found guilty of breaking the rules on foreign exchange transactions. Alipay, the payment arm of Alibaba Group, and Tenpay, owned by tech giant Tencent Holdings, were each fined 600,000 yuan (US$88,000) by the State Administration of Foreign Exchange (SAFE), the regulator said in a statement on Tuesday.
Cloud Alliance signs e-payments, gaming MOU with Hong Kong company
The Business Times | Wed July 25, 2018 - CLOUD Alliance, a Singapore-headquartered payments and gaming firm, has entered into a memorandum of understanding (MOU) with a unit of Shunten International, a Hong Kong-listed provider of online payment services, to collaborate in areas such as e-payments and gaming. In a filing with the Hong Kong Stock Exchange on Wednesday, Shunten International said that the MOU seeks to expand the company's WeChat cross-border payment business by leveraging Cloud Alliance’s payment solutions and partnership with Unity to reach out to millions of game developers and gamers.
LifeLock Bug Exposed Millions of Customer Email Addresses
Krebs On Security | Wed July 25, 2018 - Identity theft protection firm LifeLock — a company that’s built a name for itself based on the promise of helping consumers protect their identities online — may have actually exposed customers to additional attacks from ID thieves and phishers. The company just fixed a vulnerability on its site that allowed anyone with a Web browser to index email addresses associated with millions of customer accounts, or to unsubscribe users from all communications from the company.
More from PaymentsSource
Visa's still in the hot seat for its European payments outage
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Amex's blockchain plans go beyond payments to target marketing, rewards
American Express' blockchain patent application isn't just about payments: It could also radically change how card-based merchant offers are made and allow them to become much more targeted.
Data: Who’s really paying by voice?
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WEX adds Visa to virtual payments offering
WEX will accept Visa’s virtual credit cards for corporate payments, expanding the international digital payment options for WEX’s B2B customers.