7.17.19 Your morning briefing

Register now

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

What Brexit?

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.

Patreon's diversification

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.

Actual intelligence

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.

More from PaymentsSource

Visa, Mastercard land multiple partnerships to steer gig payments
Fintech startups have been a natural fit for the gig economy, leading Visa and Mastercard to seek them out as partners to maintain relevance.

Behind a payment startup's battle to bridge the gender gap
A new payment company is attacking the hurdles professional women face when returning to the workforce after time away, a distinct problem borne out of the broader gender gap in financial services.

Finix raises $17.5m from Visa, others for debit push payments
Finix, a startup offering tools for businesses to develop their own payments technology, has raised $17.5 million in Series A funding from investors that include Bain Capital and Visa.

Cheap and simple payment tech in Asia opens the door for biometrics
The staggering popularity of QR code payments and mobile wallets in Asia continue to rise, demonstrating high consumer demand for quick and easy services and new frontiers for biometric authentication.

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