New name in the UK challenger bank space – ClearBank
The bustling UK challenger bank scene has grown by another addition, ClearBank. It is a brainchild of Nick Ogden, founder and former CEO of WorldPay.
Payments
Fifth Third swings for the mobile wallet fences
Go big or go home: Fifth Third on Wednesday (11 January) said that its customers can now use five major mobile wallet providers, with debit and credit card purchases via the recently added Android Pay and Microsoft Wallet, along with previous partners Apple Pay, Samsung Pay and Masterpass. The deal comes amid a heady time […]
US Supreme Court hears credit card surcharge case
Credit card surcharges came before the US Supreme Court on 10 January in a case that concerns how much freedom retailers have in telling consumers they are being charged extra for the payment method. Comments from justices suggested that the Supreme Court might send the case back to New York for further review, though it […]
PayPal and Discover partner for US payments
Discover Financial Services and PayPal have signed an agreement making PayPal more widely available to Discover cardmembers, acquirers and merchants. The agreement provides PayPal with access to Discover’s tokenisation services, so PayPal customers in the US can pay with their Discover cards at all of the contactless-enabled merchants that accept Discover. As part of the […]
PayPal Acceptance Deals Continue with Discover Pact
Discover and PayPal have reached a deal that will expand PayPal’s POS presence while making Discover a more visible payment option within the PayPal mobile wallet. Under terms of the pact, PayPal will gain access to Discover’s tokenization services, enabling U.S. PayPal customers to use their Discover cards within the PayPal wallet app to make contactless purchases at contactless-enabled merchants that accept Discover.
U.S. Supreme Court Hears Credit Card Surcharge Case
Credit card surcharges came before the U.S. Supreme Court on Jan. 10, in a case that concerns how much freedom retailers have in telling consumers they are being charged extra for the payment method. Comments from justices suggested that the Supreme Court might send the case back to New York for further review, though it was unclear when a decision would be announced, according to news reports.
Fifth Third Swings for the Mobile Wallet Fences
Go big or go home: Fifth Third on Jan. 11 said that its customers can now use five major mobile wallet providers, with debit and credit card purchases via the recently added Android Pay and Microsoft Wallet, along with previous partners Apple Pay, Samsung Pay and Masterpass.
Payments paradise by the dashboard light: Visa, Honda test-drive in-car transactions
Honda and Visa are testing a system that enables a driver to pay for fuel and parking from inside Web-connected cars, the latest development in the emerging Internet of Things (IoT), and yet another sign that more payments are moving beyond physical payment cards, reports Paybefore. The announcement, made from the Consumer Electronics Show in […]
PSD2: Who wins?
I was recently asked who the biggest winner would be to emerge post-PSD2, the banks or the fintech firms. If we ignore for a moment that the biggest winners are clearly you and I, the end consumer of these services, it did reveal an interesting thought process and dynamic at play.
Municipal Credit Union revamps digital payments with Payveris
Municipal Credit Union (MCU), a $2.5 billion credit union in New York, is implementing a new digital payments platform supplied by Payveris.
D+H unveils simulated tests for real-time payments
DH Corporation (D+H) is now offering banks a cloud-based testing environment to simulate connectivity to The Clearing House’s (TCH) real-time payments system. D+H says it is the first payments hub vendor to provide banks in the US “easy and low-risk” access and with “minimal investment”. It offers an optional open API layer, where banks can […]
Axis first bank in India to use Ripple’s blockchain network
Axis Bank has become the first bank in India to use Ripple’s blockchain network for cross-border payments. The bank, the third largest in the private sector, will use the network for real-time settlement as it targets future growth. Amit Sethi, president and CIO at Axis Bank, says: “We will come out with solutions for our […]
House Financial Services Committee Names New Members, Leadership
The newly seated 115th U.S. Congress includes several new faces on one of the most important committees for financial services regulation. House Financial Services Committee Chairman Jeb Hensarling (R-Texas) announced 10 new Republican members who will serve on the committee for the new Congress.
Payments Paradise by the Dashboard Light: Visa, Honda Test-Drive In-Car Transactions
Honda and Visa are testing a system that enables a driver to pay for fuel and parking from inside Web-connected cars, the latest development in the emerging Internet of Things, and yet another sign that more payments are moving beyond physical payment cards.
Democratic Senators Oppose OCC Fintech Proposal
A skirmish over the future of U.S. fintech is underway in the new U.S. Senate, with two Democratic senators this week saying a new federal charter governing the industry “could weaken consumer protections, limit competition and threaten financial stability.”
Gift Card Study: Self-Gifting, Non-Seasonal Use Going Strong
U.S. adults bought about $46 billion worth of gift cards over the past year—and a significant chunk of that total was comprised of gift cards for self-use, according to a new study by market research firm Packaged Facts. Of the total consumers spent on gift cards, $28 billion was for gift cards given to friends and family, while $11 billion was for gift cards they gave to themselves, the report found. The remaining $7 billion was comprised of gift cards given by companies to their employees.
Walmart and Visa make peace in Canadian payments dispute
A major payments battle has come to an end: Walmart Canada and Visa said they have reached a deal that enables consumers to use Visa-branded payment cards at retail locations in that country, reports Paybefore. The companies did not disclose terms of the deal, which stems from a disagreement in 2016 involving interchange. Walmart said […]
Capital One joins forces with fintechs Gusto and Bill.com
Capital One Spark Business has announced “strategic partnerships” with two fintech companies, Bill.com and Gusto. The aim is “to build and deliver better financial management, HR and cash flow tools designed for small businesses”, Capital One says.
Shanghai Prepaid Card Association blacklists 20 merchants
The Shanghai Prepaid Card Association is warning consumers about buying prepaid cards from certain merchants because of “malpractice in managing their prepaid card schemes”, reports Paybefore. According to an announcement on Shanghai’s municipal Website, the notice includes a blacklist of 20 companies in Shanghai for committing various infractions. The association is urging consumers to quickly […]
US Fed study shows prepaid growth slowing
Prepaid cards accounted for 9.9 billion transactions and $270 billion in spending volume in the US in 2015 – an increase of $600 million since 2012 – but according to a study from the US Federal Reserve, prepaid growth is slowing as the products become more mainstream, reports Paybefore (Banking Technology‘s sister company). Based on survey […]
CFPB Fills Leadership Roles amid Uncertain Future
Ahead of what could be some big changes for the CFPB during the incoming Trump administration, the agency has announced new appointments to several leadership positions.
Walmart and Visa Make Peace in Canadian Payments Dispute
A major payments battle has come to an end: Walmart Canada and Visa said they have reached a deal that enables consumers to use Visa-branded payment cards at retail locations in that country.
New App Aims to Provide ‘Clarity’ to Personal Finances
Data analytics and artificial intelligence are on nearly everyone’s 2017 trend-watch lists, but Clarity Money wants to put those same tools directly into consumers hands with an app it says will improve financial well-being and increase users’ financial literacy.
Digital Payments and Retail Score Another Christmas Victory
E-commerce accounted for 21.3 percent of U.S. holiday retail sales this past season, up from 15.4 percent from 2015, according to First Data, a further sign that consumers continue to switch their buying and payments away from traditional retail stores. By contrast, full season holiday spending, excluding gas purchases, increased 4.7 percent from last year—still well behind the growth rate for e-commerce but better than the measly 1.8 percent growth booked in 2015.
Fana Sparebank to revamp core banking, payment and self-service solutions with Evry
Norway-based banking software provider Evry has signed a new five-year agreement with a domestic banking group, Fana Sparebank, to modernise its core banking and payments tech.
Country spotlight: Lithuania – the young ones
Banking Technology explores a less known – but a noteworthy – destination for fintech in Europe, Lithuania, and its capital Vilnius. Whilst it is realistic that it cannot compete with the European Goliaths such as London or Paris, it wants to carve its own niche in the fintech space, and has quite a lot to offer.
Top fintech stories this week – 6 January 2017
Catch up on Banking Technology’s top five fintech stories of the week – all in one place! The first weekly news round-up of 2017. Happy 2017! Let it be a year of discovery and success.
Trump Taps Wall Street Legal Vet Clayton to Lead SEC
President-elect Donald Trump will nominate Jay Clayton to head the Securities and Exchange Commission (SEC). A partner with law firm Sullivan & Cromwell specializing in mergers and securities offerings, Clayton has advised on many major investment banking deals, including the record-breaking IPO of Chinese e-commerce giant Alibaba in 2014.
Will Starbucks Make Bitcoin Mainstream?
Bitcoin, which has long nursed an outlaw persona, seems to be transforming into a yuppie. In the latest sign that the digital currency is moving into the mainstream, iPayYou, a U.S.-based bitcoin platform, said its technology now will enable coffee and food purchases at Starbucks, a chain typically associated with middle- and upper-class urban and suburban lifestyles.
Uncle Sam Wants You—Yes, You—to Help Secure the Internet of Things
The federal government wants the public’s help in securing the Internet of Things, an invitation backed by a $25,000 top prize and which comes amid concerns that 2017 will bring a large-scale breach in the emerging Web-connected infrastructure.
Shanghai Prepaid Card Association Blacklists 20 Merchants
The Shanghai Prepaid Card Association is warning consumers about buying prepaid cards from certain merchants because of “malpractice in managing their prepaid card schemes,” according to an announcement on Shanghai’s municipal Website.
CMA voices concerns over VocaLink’s takeover by Mastercard
The Competition and Markets Authority (CMA) has found that Mastercard’s acquisition of VocaLink gives rise to competition concerns.
CFPB Keeps Focus on Disclosures, Deceptive Marketing with Latest Enforcement
The CFPB’s emphasis on fee disclosures and marketing practices was highlighted in a major way this week, as the bureau levied a $23.1 million enforcement action against credit reporting agencies Equifax and TransUnion over allegedly misstating the cost and usefulness of their products and “luring” customers into recurring payments. Although targeted at credit bureaus, the enforcement action offers key takeaways for payments providers shaping their own compliance efforts to stay out of the CFPB’s cross hairs, according to industry observers.
U.K. Competition Authority Raises a Concern about Mastercard/VocaLink Deal
The U.K. Competition and Markets Authority (CMA) is worried that Mastercard’s billion-dollar deal to acquire VocaLink could hinder competition, and the CMA is giving the two companies until Jan. 11 to address a concern or face an “in-depth investigation,” according to the authority.
Volkswagen Ups its Mobile Payments and Parking Game
The financial services arm of car manufacturer Volkswagen Group has bought parking payments firm PayByPhone, a deal that underscores the appeal of mobile payments and bolsters the automotive company’s presence in the parking transactions space.
For India’s Paytm, Growing up Means Launching a Digital Bank
India-based Paytm is growing up fast. The online commerce platform, which launched its mobile wallet in 2014, has received permission from the Reserve Bank of India to operate a digital bank. The move comes as digital transaction rates in India—where the country’s popular 500 (US$7) and 1,000 (US$15) rupee notes were recently taken out of circulation—have increased as much as 1,000 percent since early November.
Top ten fintech features in 2016
Look back at some of the top-read feature articles on all matters fintech published by Banking Technology in 2016.
Fed Study Shows Prepaid Growth Slowing
Prepaid cards accounted for 9.9 billion transactions and $270 billion in spending volume in the U.S. in 2015—an increase of $600 million since 2012—but prepaid growth is slowing as the products become more mainstream, according to a study from the Federal Reserve.
China Serious about Fintech with $1.44 Billion Investment
China has made it loud and clear it intends to position itself as a global fintech leader. A group of state and privately held companies launched a $1.44 billion investment fund called the Asia FinTech Merger and Acquisition Fund of Funds (Asia FinTech FoF). The fund will focus on fintech mergers and acquisitions, and “nurture” initiatives in the fintech industry, according to a Dec. 28 announcement by Credit China FinTech Holdings Ltd., which led the investment.
Prepaid Complaints Drop 59 Percent, CFPB Reports
Complaints about prepaid products dropped 59 percent from September through November in 2016 compared with the same period the previous year, according to the latest CFPB Monthly Complaint Report. That drop, to 183 complaints on average per month, represents the largest percentage decrease in complaints among all the products tracked by the federal agency, and comes as the CFPB in its new report focuses on debt collection.
