7.8.19 Your morning briefing
The information you need to start your day, from PaymentsSource and around the Web:
Trouble for Amazon in the U.K.
The Competition and Markets Authority has temporarily halted Amazon's $575 million investment in food delivery company Deliveroo, contending the two companies are too close and as such could harm consumer choice.
The regulator has limited what Amazon-driven changes can be made at Deliveroo and says Deliveroo must operate as a distinct company under its own brand pending a preliminary investigation, according to Reuters.
Amazon earlier this year announced an investment Deliveroo as part of a general strategy to expand into food, and shortly after Amazon closed its own delivery business in part because of competition from Deliveroo.
The trend toward transit systems migrating away from legacy payment and ticketing systems in favor of open loop contactless transactions has accelerated in the past year, with New York, Portland, Ore., Denver and others adopting mobile payments.
Manchester, U.K. is the latest system, adding an option to use contactless cards and mobile payment apps to enter the system without purchasing a ticket, reports Intelligent Transport, adding the new feature builds on an app that allows mobile ticket purchases.
Manchester, which is collaborating with Visa to improve its ticketing and payment processes, is in the midst of a ten-year project to modernize its entire mass transit fleet to bring it in line with London's system.
New tech hub
Paytm has opened a research and development center in Montreal as the Indian company ramps up its expansion into Canada.
The lab will focus on machine learning and data management innovation to build payment products for use in Canada and other markets. The Montreal center joins an existing center Paytm opened in Toronto in 2014. The company plans to invest $50 million in Canada over the next decade.
Paytm's Canadian strategy is different than in its home market of India. In Canada, which has a higher banked population, Paytm focuses more on incentive marketing and products that drive transaction fees.
Bad news for PSD2 compliance
PSD2 compliance has proven to be a rough path for European banks, with large numbers not on track to meet new authentication standards by a September deadline.
Tink, a Swedish open banking platform, has found problems with another PSD2 deadline —this one a June deadline to make production APIs available. Tink contends it has attempted to integrate 84 APIs from 2,500 banks, and 69% were available — but none met the regulatory standards for integration.
The banks are being cooperative, Tink says, but the company warns contingency methods are likely necessary to meet the September deadline for strong authentication.
From the Web
Spize fined $20,000 by privacy watchdog for leak of customer data on online ordering portal
The Straits Times | Fri July 5, 2019 - Food and beverage outlet operator Spize Concepts has been fined $20,000 by Singapore's privacy watchdog for the disclosure of customers' personal data on its online ordering portal.
Square Cash Is Beating PayPal's Venmo in This 1 Key Area
The Motley Fool | Fri July 5, 2019 - Venmo has been hugely popular among millennials as a way to send money to friends, split a restaurant bill, or pay a roommate's portion of the utilities. For all of its success, though, payment processor Square is giving the company a run for its money, as downloads of its Cash App pulled ahead of Venmo last year and have continued to extend their lead.
Spurred by Amazon, Supermarkets Try Swapping Cashiers for Cameras
The Wall Street Journal | Sun July 7, 2019 - Tesco is one of several grocers testing cashierless stores with cameras that track what shoppers pick, so they pay by simply walking out the door. The retailers hope the technology—similar to that pioneered by Amazon.com Inc. in its Amazon Go stores in the U.S.—will allow them to cut costs and alleviate lines as they face an evolving threat from the e-commerce giant.
More from PaymentsSource
Security firms scramble to respond to accounts payable 'reverse fraud'
Fraudulent attacks on accounts payable departments had been on the rise to begin with, but a new sense of urgency has taken hold in the wake of a recent incident that cost Facebook and Google $100 million.
PayU eyes Asian expansion with Red Dot Payment investment
E-commerce payments and fintech services provider PayU has acquired a majority stake in Southeast Asia online payment software company Red Dot Payment in order to expand into the Asian market.
Banks and VCs invest in Sensibill’s gig economy invoice tech
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BBVA, Uber collaborate in Mexico for digital driver accounts
BBVA has formed a partnership with Uber enabling the ride-hailing company’s drivers and delivery workers in Mexico to establish a digital BBVA debit account through Uber’s app.