Another week, another payments news roundup. Let’s dive in. How could $35 million in payroll and tax accounts go missing from cloud provider MyPayrollHR? We investigate. B2B cart abandonment is a surprisingly big and costly problem according to new research from MSTS. A new business credit card is launched by Stripe and it looks attractive. PSD2 is imminent and our PPRO guest editorial looks at whether companies are clear, prepared or need more time. China is planning a government cryptocurrency and we look into their underlying strategy.
Our roundup also includes the French government’s push to ban Facebook’s Libra cryptocurrency; expansion of Walmart’s unlimited home delivery program; OKCredit growth of its business bookkeeping service in India; Shopify’s acquisition of a robotics fulfillment firm; store closure trends in the US and UK; and $100 billion in unnecessary US homeowner loan interest spending. Settle will back and enjoy your weekend reading!
Cloud payroll company up in smoke, $35 million missing
The $81 billion payroll processing business in the US is normally bedrock solid, made up of longtime players and innovative new payroll-as-a-service (PaaS), cloud-based fintech startups. Like the former subprime mortgage market, the US payroll industry seems too big to fail. MyPayrollHR just proved that thesis wrong to the tune of $35 million in payroll and tax accounts missing from its client and employee bank accounts. Read more…
It’s not just the payments, it’s the B2B pain points
Last week’s post on B2B cart abandonment really sparked some conversations and reflections on how fast B2B selling is changing. The bottom line was businesses are leaving a lot of money on the table by not ensuring a smooth process and top-notch e-commerce platform to sell to other businesses. MSTS research found 90% of business buyers research a vendor’s payments options and 74% of B2B buyers will buy from a competitor if your e-commerce process doesn’t meet their expectations. Read more…
Credit card of a new business Stripe
Hard on the heels of launching a new small business loans product – Stripe Capital last week, Stripe is out today with a new corporate credit card aimed at small business. The Stripe Corporate Card is designed to meet the needs of US startups and SMEs that need to buy supplies and provide credit cards for employee business purposes. Read more…
China makes “cryptocurrency” moves for the future
A new China cryptocurrency development is worth paying close attention to, and not just because of the links between artificial intelligence and payments. Bloomberg reports the People’s Bank of China (PBOC) is close to launching a digital version of its yuan currency. Unlike other cryptocurrencies, it won’t be anonymous, and its value will be linked to the fiat currency. Read more…
Overcoming obstacles on the path towards forPSD2
The closer to the September 14 implementation deadline for the Regulatory Technical Standard (RTS) on SCA & CSC detailing much of the PSD2 legislation, the less room there is for lack of clarity about its stipulations. The RTS mandates a number of API processes and functionalities explicitly, but it cannot define everything in all detail and therefore has a “catch-all obstacles article” ensuring that nothing can fall through the cracks. Read more…
France seeks Facebook Libra cryptocurrency ban in Europe
French economic minister Bruno Le Maire has declared that his government intends to block development of Facebook’s Libra cryptocurrency in Europe because of threats it poses to financial security and stability. During remarks at an OECD conference dedicated to cryptocurrencies, Le Maire said the risks are simply too great and trust in Facebook too low, according to French newspaper Le Figaro. Read more…
Walmart goes wide with unlimited grocery delivery
Walmart’s unlimited grocery delivery service passed its testing phase with flying colors. With Walmart’s Delivery Unlimited, customers at 1,400 stores can pay $98 annually or $12.95 per month for grocery deliveries. By the end of 2019, the program will be available at 1,600 locations spanning more than half of the U.S. Imagine the crowds at Costco’s Shanghai opening…but 24/7. That’s what the online grocery delivery market looks like with the addition of Walmart’s program. Read more…
India’s OkCredit raises $67M to help small merchants digitize their bookkeeping
OkCredit, a Bangalore-based startup that enables small merchants to digitize their bookkeeping, has raised $67 million in a new financing round to grow its business in the nation. OkCredit operates an eponymous mobile app that allows merchants to keep track of their day-to-day purchases and sales. Last month, OkCredit founders told TechCrunch in an interview that the app had amassed more than 5 million active merchants across 2,000 cities in India. Read more…
Shopify acquires 6 River forSystems for $450 million to expand its AI-powered fulfillment network
Shopify today announced it is acquiring 6 River Systems, a startup focused on fulfillment automation for e-commerce and retail operations. The deal is valued at approximately $450 million — 60% in cash and 40% in shares. At its Unite partner and developer conference in June, the company announced its Shopify Fulfillment Network, which uses machine learning to ensure timely deliveries and lower shipping costs. Read more…
US & UK store openings & closures
In the US, year-to-date announced closures already exceeded the total recorded for the full year 2018. Coresight Research estimates announced US store closures could reach 12,000 by the end of 2019. So far this year, US retailers have announced 8,558 store closures and 3,446 store openings. This compares to 5,844 closures and 3,258 openings for the full year 2018. Year to date, UK retailers have announced 431 store closures and 633 store openings. Read more…
American homeowners spend over $100 billion in unnecessary interest payments
American homeowners are paying $100 billion more in loan interest payments when lower-cost options are available, according to new research published today by Figure Technologies. For Research that millions of homeowners are relying on personal loans and credit card debt even when they have sufficient home equity to cover their financing needs with a secured loan, which typically has much lower interest rates. Data analysis found that 16.3 million homeowners considered in the study are paying on average $6,225 more than necessary on interest payments. Read more…
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