7.17.19 Your morning briefing
The information you need to start your day, from PaymentsSource and around the Web:
The full impact of Brexit on the U.K.'s payments and financial technology markets won't be known for some time, but the cloud does not appear to be slowing down investment.
U.K. fintech startups have drawn $2.9 billion in funding so far in 2019, a record that puts the market well on pace to pass 2018's $3.3 billion, which was also a record, according to Innovate Finance, a U.K. technology trade association.
Investors are particularly attracted to payments and foreign exchange companies. The companies drawing the largest investments include OakNorth at $440 million, Checkout.com at $230 million, WorldRemit at $175 million, Monzo at $147 million and GoCardless at $76 million.
Glade Brook Capital has led a $60 million funding round in creative content payment processor Patreon, which has also brought on actual creators and artists among its investors.
Musician Serj Tankian and comic Hannibal Buress are Patreon's first artist investors, which the company says will add greater input for Patreon's business model from the artistic community. Patreon's roots are in performance, as co-founder Jack Conte is part of the band Pomplamoose.
In an announcement, Conte said the new funding will be used to expand currencies and payment methods, as well as put more resources into its fulfillment services for creators.
A big eraser
Tether created $5 billion worth of its stable coin over the past few days by accident, then quickly deleted them.
The company was moving tethers between exchanges to help cryptocurrency exchange Poloniex, reports CoinDesk, adding the error resulted from mistakes on token decimals, which measure a token's divisibility.
Poloniex, which is a subsidiary of Circle, reported this resulted in an incorrect issuance of tether, which was "burned," or cryptospeak for rendering them useless.
As artificial intelligence takes hold to help support digital payments, security and supply chains, regulators are concerned about a lack of knowledge among users, and how institutions can or should explain machine learning-driven outcomes.
The Financial Conduct Authority and the Alan Turing Institute have embarked on an "explainability" project which will develop language and flexible scripts to use in cases such as payment or loan declines.
The FCA says algorithmic decisions aren't explained adequately, and are also not tailored for audience types, such as executives, professional staff or consumers. The project will produce recommendations on these issues over the next year.
From the Web
ACI Worldwide and Worldpay to Drive Global Acceptance of Alternative Payment Methods
Yahoo Finance | Wed July 17, 2019 - ACI Worldwide (ACIW) announced an international relationship with Worldpay, Inc. Worldpay will utilize ACI’s UP eCommerce Payments solution to accelerate the roll-out of Alternative Payment Methods (APMs) to its global merchant network.
Mastercard and Visa Following Parallel Paths to Success
Yahoo Finance | Tue July 16, 2019 - Card issuers make money on both ends of every transaction – from fees and interest charges to the customer, as well as to the merchant. It’s a business model that has propelled both Mastercard and Visa to the top of the financial world, as leaders in the electronic transaction and payment processing segment.
Jack Dorsey’s Square Crypto Seeks Designer to Make ‘Bitcoin for Everyone’
CCN | Tue July 16, 2019 - Square believes that user experience is at the core of mass adoption for cryptocurrency, and they’ve made an eloquent job posting in that pursuit. A project of Jack Dorsey, Square instituted Bitcoin support sometime back. The company hopes to onboard people in the same way as Coinbase, with a focus on creating use cases.
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