We’re checking out the latest e-commerce and mobile payments news including a look at whether the next financial crisis could start in Silicon Valley because of the rise of fintech companies in an unregulated ecosystem. Speaking of Equifax, research by TNS shows two-thirds of consumers are concerned about their data security and 38% believe their personal information may already be compromised.
What’s bringing China’s tech giants to SE Asia‘s fast-developing markets? A similarity in demographics with China. Eric Grover wonders whether China’s homegrown payments success stories including Alipay, WeChat and CUP can ever truly have success globally? Also in China, HSBC launched pay-by-smile, selfie mobile payments.
UK fintech GoCardless raised $22.5 million to expand its recurring payment services from the UK, EU and Sweden to Denmark and Australia. Zelle lets customers transfer payments instantly between US banks and now is available as a standalone app. JP Morgan hopes to eliminate paper bill payments in a new partnership with Bill.com.
Google’s new mobile payments app, scheduled to launch in India, uses sound to pair two devices and transfer funds. The new app called Tez, hopes to benefit from India’s e-commerce industry which is expected to reach $100 billion by 2020.
Swedish headquartered mobile app iZettle raised $36 million in new financing for research and development of machine learning and artificial intelligence. Finally, SoftBank, Sprint and TBCASoft are jointly testing blockchain technology for a variety of telecom applications including settlements, internet of things, authentication and future services.
The Next Financial Crisis Will Start in Silicon Valley
It has been 10 years since the last financial crisis, and some have already started to predict that the next one is near. The world of finance looks very different today than it did 10 years ago. In 2007, our biggest concern was “too big to fail.” Wall Street banks had grown to such staggering sizes, and had become so central to the health of the financial system, that no rational government could ever let them fail.
Since 2007, a tremendous wave of innovation has swept across the financial sector, affecting almost every aspect of finance. New robo-adviser startups like Betterment and Wealthfront have begun dispensing financial advice based on algorithmic calculations, with little to no human input. Via bloomberg.com
TNS: Consumers Worried About Credit Card Fraud
Two-thirds of the more than 3,000 adults surveyed said they were concerned about data security, with 38 percent of respondents believing their private information may have already been exposed. Age plays a factor in these beliefs, too: More than 70 percent of those over the age of 45 reported concerns about data security versus 59 percent of those aged 18 to 24. Consumers are becoming more tech-savvy and increasingly familiar with a continuum of payment methods. Via pymnts.com
What’s drawing Chinese internet giants to Indian, Southeast Asian tech scenes?
China’s internet giants are ramping up investment in India and Southeast Asia, highlighting the potential for growth in the regions’ vibrant tech scenes and positioning them as the next battlegrounds in their bid for global dominance. India, meanwhile, recorded US$5.2 billion of investments in its tech start-ups as of June, eclipsing the US$3.39 billion for the whole of 2016. China’s tech giants focus on emerging Asia markets because they share similar demographics to China, where young urbanites with rising disposable incomes account for the majority of online buyers. Via scmp.com
China’s payment giants will struggle to reach international markets
Few initially national payment networks have attempted, much less succeeded in becoming genuinely global. Can any of the Chinese payments giants be more successful? Since its 2002 inception it’s enjoyed a protected domestic card-network monopoly. Via paymentssource.com
HSBC switches on selfie payments in China
HSBC switches on selfie payments in China. HSBC customers in China can now make payments with a selfie, thanks to the introduction of facial recognition technology in the bank’s mobile app. With the new system, the customer blinks into their camera using the ‘selfie mode’. Via Finextra
GoCardless, a fintech that makes recurring payments easy for subscription businesses, raises $22.5M
Today — and a little earlier than was planned, thanks to an embargo broken by a London regional paper a week early! Outside of Blighty, the company operates its bank-to-bank payments network in the Eurozone and Sweden. Founded in 2011, GoCardless originally went through Silicon Valley’s Y Combinator accelerator but has come a long way since those humble days and after a very early pivot away from group payments. Via techcrunch.com
Zelle’s instant money transferring will make you rethink those other apps
Zelle’s instant money transferring will make you rethink those other apps. Zelle is a payment service app that allows you to send money directly between most U.S. banks within a few minutes. The service first launched in June and, depending on which bank you have, you might’ve already seen it integrated into your banking apps. Via Digital Trends
JPMorgan Seeks to Banish Paper Payments With a Fintech Venture
JPMorgan hopes to eliminate paper payments with a new fintech venture. JPMorgan Chase & Co. is partnering with another fast-growing technology firm, this time to help business clients eradicate paper checks. The bank is working with Bill.com, the largest U.S. Via Bloomberg
Google’s new payment app for India uses sound to transfer money
Google’s new payment app for India uses sound to transfer money. It has introduced a new payment app in India called Tez (the Hindi word for “fast”). Tez features a technology called audio QR that allows users to transfer money using sounds to pair two devices. Via The Verge
Google launches special payment app just for India
Google launches special payment app just for India. The tech giant previously estimated India’s e-commerce industry will be worth $100 billion by 2020. Digital wallets and payment apps have flourished in the last year, with local app Paytm crossing 200 million users in March. Via CNET
Mobile payments company iZettle raises $36 million in debt for R&D into AI, machine learning, and more
European mobile payments processor iZettle has raised a €30 million ($36 million) debt round to fund a host of research and development (R&D) initiatives covering areas including machine learning and artificial intelligence.
Via VentureBeat
Telcoms test Softbank’s blockchain tech for payments
In February 2017, SoftBank, Sprint and TBCASoft agreed to cooperate in jointly developing blockchain technology for telecom carriers, and started a technical trial that connects TBCASoft’s blockchain platform to telecom carriers’ systems, according to a press release. The Carrier Blockchain Study Group will promote research and development for the platform with the aim of providing users various services such as secured clearing and settlement, personal authentication, IoT applications, and other services in the future, according to the release. Via Mobile Payments Today
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