12.20.18 Your morning briefing

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

Another try
Square is refiling an application for an industrial loan company license, which would permit it to offer government insured deposits and small business loans.

Called Square Financial Services, the unit would be chartered in Utah, reports Reuters. Square filed a similar application in 2017, drawing opposition from community banks which claimed it would allow the mobile point of sale company to skirt other banking rules.

Square later withdrew the application, saying it planned to refile at a later date. In addition to its core small business payment technology, Square's diversification includes some financial services such as merchant credit.
Poor oversight
FINRA has fined UBS Financial Services $4.5 million and UBS Securities $500,000 for not having anti-money laundering programs that "reasonably" monitor high-risk payments.

FINRA found that between January 2004 and April 2017, UBFS processed thousands of foreign currency wire transfers worth billions of dollars without proper oversight.

This included a failure to capture the number and identity of customers, the dollar value of payments and if the payments involved third parties or high-risk countries. By April 2017, the bank had installed a "reasonable" system, according to FINRA.

Text crypto
Bitcoin's selloff hasn't totally halted tech companies from finding new ways and marketing techniques to promote transactions.

Coin Ninja has released a Venmo-style product that allows users to send and receive bitcoin via text message. The "text bitcoin" feature uses contacts' mobile numbers to make transfers.

The transactions are run through Coin Ninja's mobile wallet, DropBit, though the company does not hold bitcoins at any part in the processing.

Putting money into receipts
London fintech Flux has raised $7.5 million from VC firm e.ventures to boost its digital receipt technology.

Flux's clients link their accounts to the technology, which powers transactions and loyalty marketing programs. It's designed to provide access to more purchase information than is typically available, which can feed analytics and marketing.

Flux's users include Barclays, Monzo and Starling Bank.

Earn and learn
Coinbase is transforming its Earn service into an education site where people can learn about cryptocurrencies and earn tokens for completing courses.

The content is expected to go beyond general cryptocurrencies like bitcoin and ether to include more esoteric currencies as Coinbase adds dozens of new cryptocurrencies in the coming months, according to TechCrunch.

Earn's original model involved "busy people" receiving cryptocurrency for accepting requests for information from other users, according to TechCrunch.

From the Web

Millions would be put at risk in a cashless society, research warns
CNBC | Wed December 19, 2018 - A new “Access to Cash” study released on Wednesday warned that the U.K. risks drifting into a cashless society that could handicap those who are poor or in debt, disabled people, rural families and anyone who may be at risk of having their finances controlled by an abuser.

BJC Health Care says online payments may have been hacked
Fox News | Wed December 19, 2018 - BJC Health Care says its online payment portal may have been compromised. Malicious computer software may have exposed patients’ credit card information. The breach effects over 5,800 patients between October 25th and November 8th.

EU takes step to boost monitoring of money laundering at banks
Reuters | Wed December 19, 2018 - European Union governments have reached a preliminary deal to clamp down on money laundering by strengthening bank supervision through the European Banking Authority (EBA), the EU said on Wednesday.

More from PaymentsSource

Data: What's killing cash?
While credit cards have been around since the 1950s and debit cards introduced years later, they both have become indispensable to the modern consumer. In fact, in certain retail sectors consumers can only use payment cards or mobile payments to make a purchase.

FIS, Excentus team for Shell fuel rewards
FIS is collaborating with loyalty marketing firm Excentus to extend FIS’s consumer loyalty program to 13,400 U.S. Shell fuel stations.

UL testing advances Google Pay acceptance
Underwriters Laboratories is partnering with Google to release a testing tool designed to ensure a merchant can accept Google Pay at the point of sale.

OnDeck to offer equipment financing to small businesses
The online lender will roll out the business early next year with a focus on loans of less than $100,000.

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