Morning Brief 9.22.20: Stripe settles IPO fraud case in Massachusetts

Register now

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


Stripe will pay Massachusetts $120,000 to settle its role in the PlexCoin ICO, during which PlexCoin used Stripe's technology to cheat thousands of investors out of millions of dollars in 2017.

PlexCoin pitched itself as "the next worldwide cryptocurrency," reports Coindesk. Instead the firm committed a range of fraudulent acts, including hiding the role of parties involved in securities fraud. Stripe terminated its contract with PlexCoin but lacked adequate risk monitoring and fraud prevention tactics, the Massachusetts Attorney General's office argued.

Stripe has since upgraded its anti-fraud systems and agreed to assist the AG's office. The office will not pursue separate civil action against Stripe as part of the settlement.

Massachusetts State house
Massachusetts State house in Boston

Token flyer

PayPal has added support for bitFlyer Europe, enabling users to execute cryptocurrency transactions directly from PayPal accounts.

bitFlyer Europe is a subsidiary of one of Japan's largest cryptocurrency exchanges, and the integration is designed to make crypto-to-traditional currency transactions more efficient, reports BitcoinExchange.

bitFlyer Europe allows wire card transfers, but clearance can take up to three days. Adding PayPal allows for near real-time transactions. There is potential for expansion, as bitFlyer is one of the few cryptocurrency exchanges regulated in Japan, Europe and the U.S.

Paying the bills

Integrated payments and processing technology firm Paya has agreed to acquire The Payment Group, which supports digital payments for more than 600 utility and government clients.

Paya plans to use the acquisition to strengthen its services to local governments that use Paya's rails for court transactions and other government fees. Paya's TPG acquisition is expected to close in October, around the same time Paya's merger with Fintech Acquisition Corp, a special purpose company designed to enable Paya's Nasdaq listing. Upon the closure of the FAC deal, Paya will trade on the Nasdaq exchange under the PAYA ticker.

Paya in 2018 rebranded from Sage as it redirected its business to ISOs, ERP companies and payment facilitators.

Less contact

India's SBI Card has made a deal with Google to support SBI cards on the Google Pay platform, which will extend card users access to contactless transactions.

SBI, which is one of India's largest issuers, will offer NFC, QR code and online payments via card accounts, according to Northeast Now, a local publication in India.

Google Pay is widely accepted in India, and handles about 66% of the transactions on India's United Payments Interface.

From the web

Europe’s Point Nine outs new ~€100M fund to back early-stage SaaS and digital marketplaces
TECHCRUNCH | Tuesday, September 22, 2020
Point Nine, the pan-European early-stage VC focused on SaaS and digital marketplaces, has raised its fifth fund, totalling just short of €100 million (in fact, “P9 V” is a €99,999,999 fund — get it?).

Chinese tech giant Tencent's WeChat app sees downloads surge before U.S. ban
REUTERS | Tuesday, September 22, 2020
Chinese tech giant Tencent's WeChat messaging app has seen a surge in downloads in the United States since Friday after Washington confirmed it would push ahead with a planned ban of the app, data showed on Tuesday.

'The Dark Overlord' hacking group member sentenced to five years in prison
ENGADGET | Tuesday, September 22, 2020
A US district judge has sentenced a UK National to five years in federal prison for participating in the cybercrime activities of hacking collective group “The Dark Overlord.”

More from PaymentsSource

How to stay ‘unfrozen’ during the e-commerce wave
If the processor does not understand the particular needs of high-risk businesses, merchants working with them could face sudden financial disaster if accounts are terminated without warning, says T1 Payments’ Donald Kasdon.

Many countries took different paths to digital payments during the coronavirus pandemic
COVID-19 has accelerated changes in payments behavior that would otherwise have taken years to occur, laying the foundation for global expansion post-pandemic. But for different parts of the world, this digital transformation had very different outcomes.

Why Walmart's smaller share in TikTok is as big a deal as Oracle's stake
The months-long saga of Bytedance’s forced sale of TikTok in the U.S. is finally close to the finish line, and Walmart stands to gain new social tools and youthful consumers in its battle with Amazon and other brick and mortar chains.

Marketing fintech is as much about compliance as sales
Whether to take every aspect into account is a matter of courage, professionalism and, in a sense, luck. It's usually up to marketers to choose the solutions or proven approaches they feel are most suitable for a particular audience. But that's not how it works in the fintech world. After all, this is a world of regulation and restrictions.

FSS plans digital conversion of Everlink's card management infrastructure
Financial Software and Systems is upgrading the card management technology for Everlink Payment Services in Canada, converting the legacy card issuing and transaction processing systems to a single digital platform.

Coronavirus fears give web crooks a dangerous edge
Netwalker attacks are known to target victims using phishing emails disguised as COVID-19 updates from their organization, taking advantage of the heightened fears and anxieties that come with the current pandemic, says Stealthbits Technologies' Dan Piazza.

Trump vs. Biden: 10 ways the 2020 election could change fintech
The pandemic and subsequent economic crisis have raised the stakes, since the government’s role in recovery and how stimulus is delivered — and policies impacting the goals of card and technology companies — will be largely determined by the philosophy of leadership.

Trump's WeChat, TikTok bans should worry PayPal, Starbucks, Walmart and other U.S. firms
The Trump administration has barred the use of TikTok and WeChat inside the U.S., including a direct ban on WeChat Pay, setting up potential retaliation against U.S. companies that could interrupt international payment flows.

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