Announcements

  • Deutsche Bank signs up to JPMorgan's blockchain-based Interbank Information Network — tokenpost.com

    Deutsche Bank has joined banking rival JPMorgan Chase’s blockchain project Interbank Information Network (IIN), according to a report by the Financial Times. The IIN, which is a network of 320 banks, enables its members to exchange international payments-related information on a blockchain. Until this point, the majority of the network members were smaller banks and JPMorgan clients. “Having Deutsche join — and hopefully Deutsche will be the first of several other large banks — is going to help us drive towards ubiquity and ubiquity is a prerequisite for the success of the network,” Takis Georgakopoulos, JPMorgan Head of Payments, said.
  • Mastercard Still Sees Growth Opportunities in the U.S. Payment Market — digitaltransactions.net

    Many payment executives regard the United States as a mature market compared with high-growth countries in Asia and Latin America, but it still has plenty of untapped opportunities, according to Mastercard Inc. executives. Its home country remains Mastercard’s largest market. As of 2018, the U.S. accounted for 33% of Mastercard’s revenues—down from 39% in 2012—and 30% of gross domestic volume. But U.S. volume grew 10%, twice the growth rate of personal consumption expenditures, according to data from Purchase, N.Y.-based Mastercard. “The runway for growth here is significant,” Linda Kirkpatrick, executive vice president of merchants and acceptance, said Thursday during a Mastercard investor event.
  • Zelle founder to helm Ripple rival Interstellar — americanbanker.com

    Mike Kennedy, the creator of the person-to-person payment network Zelle (then called clearXchange), was named Thursday as the CEO of Interstellar, a blockchain and digital currency payment technology company. Interstellar is taking on Ripple and Swift to offer technology to banks for handling global payments. The firm relies on Stellar, an open source protocol that enables cross-border transactions between any pair of digital and fiat currencies. Like Ripple, Interstellar provides a distributed ledger that banks can use to send and receive money internationally without having to go through a network of correspondent banks the way they currently do through the Swift network.
  • Mastercard Unveils New B2B Payment Service —paymentsjournal.com

    When the Mastercard Track service was initially announced this time last year, it was promoted as a trade management facilitation system, with enhanced connectivity between business partners, and value-add merchant data for risk management/compliance purposes, while generally streamlining administrative burdens. Distribution partners at the time were identified as the major procure-to-pay providers and networks. This referenced announcement, which we picked up in Business News Daily, is about expanded Mastercard Track services around payments: ‘A major financial company best known for its line of personal and business credit cards is making its way into the business-to-business payments space, as Mastercard has officially unveiled its new brand of products aimed at simplifying transactions between suppliers and sellers…Dubbed the Mastercard Track Business Payment Service, the new brand will combine multiple modern solutions for B2B transactions with a focus on real-time data collection and faster payments.’
  • Visa Direct Offers Real-Time Claims Payments With Insurance Partners — forbes.com

    Visa is working with insurance companies who want to use its Visa Direct real-time payment system to send insurance payouts to their customers.  In the U.S.,Visa uses card credentials, said Bill Sheley, SVP and global head of push payments at the company. The most common form is to make an insurance payment through a customer’s debit card directly into her checking account, although it could also be used to pay into a prepaid card. The usual insurance claims using Visa Direct are for damage to home or autos, travel insurance or health care payouts, and the amounts are typically less than $25,000, he said, although there is no upper limit.
  • PayThink Mobile wallets need blockchain for the next stage — paymentssource.com

    No matter what industry you are in, you must be aware of the blockchain, which is booming in every vertical. Among all the future-oriented mobile payment trends that we are going to witness in the near future, blockchain seems to offer an endless amount of possibilities, even given its challenges. All of this sounds so perfect, but what does the blockchain actually do? Even without virtual currency, blockchain has a ton of benefits.
  • Treasurers See Plenty of Use Cases for Real-Time Payments, And They’re Writing Fewer Checks

    Corporate treasurers can identify numerous use cases for real-time or otherwise faster payments, but they do worry about transaction security, according to the Association for Financial Professionals. Some 60% of respondents surveyed in the AFP’s newly released 2019 payments study said business-to-business transactions will benefit the most from faster and real-time payment systems, with consumer-to-business transactions far behind at 14%, business-to-consumer transactions at 13%, and person-to-person transactions at 9%. “This is one of the findings that really surprised me, because many times we hear from corporates [that] the dollar limits are too low,” Magnus Carlsson, the AFP’s manager of treasury and payments, tells Digital Transactions News. The Bethesda, Md.-based AFP is an association of corporate treasury executives and managers.
  • Banks and Fintechs are global leaders in payments innovation: ACI Worldwide and Ovum report

    ACI Worldwide, a global provider of real-time electronic payment and banking solutions, and global research firm Ovum launched the Culture of Innovation Index. The index is a global cross value chain view of the factors that drive success across the banking, intermediary, merchant and corporate sectors. The research, based on a global survey of almost 1,200 enterprises, reveals that retail banking and FinTechs are the leading sectors when it comes to payments innovation, with regulation playing a key part in forcing industry change.
  • As The Wind Blows, The Shift From Paper To P2P Payments Builds — PYMNTS.com

    The frustration is a common one, and a form of friction very well-known to the PYMNTS New Orleans Bureau, in fact: having to send a check — a paper check, with envelope and postage stamp and the hope that the mail carrier doesn’t forget to take it — to a person (say, a landlord) who for one reason or another will not get on the digital payments train, not even for peer-to-peer (P2P) transactions. That’s not to be rude or unfair to such payments recipients. After all, according to Jeff McCrory, director of electronic payments for Fiserv, the concept of P2P payments was strange to pretty much everyone in the mainstream a mere five years ago. And receiving and sending checks is a deeply ingrained habit that’s hard to break. As well, if you talk to such people — including, say, that landlord — you will likely find out they have anxieties about the security aspect of P2P payments, which, like it or not, will play at least a modest factor in the payment method’s next phase of growth.
  • Lifting The Veil On Cross-Border B2B Payments — PYMNTS.com

    Faster cross-border commercial payments are within reach thanks to global initiatives from the private and public sectors, and to growing consensus among FinTechs and financial service providers that businesses need faster movement of funds, too. Case in point: there are now more than 57 different real-time payment rails operating (or about to operate) across more than 72 countries in the world today, according to the inaugural PYMNTS Simplifying Cross-Border Payments Playbook, a collaboration with SWIFT. The multitude of faster payment systems at play, however, means money moves differently from jurisdiction to jurisdiction, often adding friction as funds move globally. Like consumer payments, cross-border B2B transactions face a multitude of challenges, many of which link back to the legacy inter-banking system that obscures visibility into where funds are at any given point of time — not to mention tacking on extra costs, too. But demands for capabilities like movement of transactional data and compliance across jurisdictions can be significantly more complex for high-value corporate transactions.
  • Collaboration Is Key For Consensus On Cross-Border Payments — PYMNTS.com

    According to the new Simplifying Cross-Border Payments Playbook, there are five key criteria that an ideal cross-border payment solution should meet: speed, security, compliance, transparency and ubiquity. Currently, there are 57 real-time payments rails operating in more than 72 countries, with even more under construction. So, what’s the problem? Ubiquity. None of these 57 systems is universally applicable – at least not yet. Different regions have their own unique payment rails, and no two abide by the same regulatory framework. Last week, seven European payments operators announced the European Mobile Payment System Association initiative, a new pan-European network focused on cross-border mobile payments.
  • Community banks join forces to speed up payments — paymentssource.com

    The massive scale of the e-commerce market is burdening community banks with its volume of payments. But there may be strength in numbers. The Bankers' Bank is turning its correspondent banking model to faster payment processing, acting as a funding agent for depository institutions that want to use The Clearing House's real-time payments network (RTP). Bankers' Bank hopes that by funding and managing positions in an RTP joint account, it can lower the bar for entry into RTP for smaller institutions. There are many real-world use cases, ranging from e-commerce to supply chain automation, that can help community banks
  • B2B Payments: Moving From Inertia To Ignition — PYMNTS.com

    The B2B payments discussion often centers around innovators’ efforts to kill the check. Unfortunately, simply introducing an electronic alternative to paper checks is not enough to kill this sticky and popular payment method. Innovators must consider a range of factors, from the size of the company making the payment to the infrastructure constraints of the firm receiving it. There is no straight line to killing the check, but in the path to B2B payments innovation, a plethora of possibilities emerges. Today, some of the industry’s biggest players will converge in New York City at this year’s PYMNTS B2B Payments Executive Forum, with Visa as presenting sponsor. The forum is a call to action for key industry stakeholders to tackle friction in the $125 trillion-worth of global payments volume flowing between businesses around the world. And, it’s an exploration among experts as to why — despite years of innovation and technological advancements — the inertia of paper and manual processes continues to stunt B2B payments technology adoption.
  • Preventing concurrent fraud in real-time payments — fintechmagazine.com

    The emergence and growing availability of real-time payment systems is changing the way people move and manage money, bringing more choice and greater convenience. Greater payment speed has not, however, diminished the need for security. Quite the opposite, in fact, as real-time speeds shrink the window in which potentially fraudulent transactions can be stopped. Managing fraud is critical to financial institutions in a world of instantaneous payments and real-time settlement. Securing real-time payments requires more than simply deploying the same risk management and fraud prevention solutions faster. When it comes to real-time payments, every step of the transaction processing lifecycle, including fraud detection, must be completed in fractions of seconds. This requires a ground up, designed for real-time approach, which leverages up-to-date processes and technologies in order to meet increasing customer expectations while effectively managing financial crime risk.
  • Stripe Expands European Presence — PYMNTS.com

    San Francisco-based Payments startup Stripe is rolling out its services in eight new European countries, the company said in a press release on Monday (Sept. 9). Estonia, Greece, Latvia, Lithuania, Poland, Portugal, Slovakia and Slovenia can now start accepting payments in over 130 currencies from anywhere in the world. “Central and Eastern Europe have a lot of entrepreneurial and technological talent, and we believe even more of its companies could be expanding globally,” says Felix Huber, head of Central and Eastern Europe, Middle East and Africa at Stripe. “Stripe aims to empower more companies from this region to export their creativity and ambition to the rest of the world.” Companies can also use the Stripe platform to handle accounting, billing, third-party payouts and mobile payments from a centralized dashboard. Mobile wallets Apple Pay and Google Pay can also be accessed by Stripe users.
  • Ripple-backed MoneyGram strikes deal with Visa — decrypt.co

    MoneyGram—the money transfer company that Ripple has a $30 million stake in—announced yesterday a new debit card deposit service with Visa. The service, which works with Visa’s real-time payments platform, Visa Direct, will make it possible for MoneyGram customers to transfer money to over a billion Visa cards using MoneyGram. MoneyGram users will be able to send money to debit cards via the MoneyGram app or on its website. The cost of the service starts at $1.99 per deposit. "Visa and MoneyGram share a common goal of providing customers with a fast and reliable way to pay and be paid," said Bill Sheley, Global Head of Visa Direct.
  • Morgan to Offer Same-Day Deposits Via WePay — baystreet.ca

    J.P. Morgan Chase (NYSE:JPM) is reportedly ready to disrupt the fintech disruptors. The banking behemoth is rolling out same-day deposits to customers of its WePay platform who have bank accounts with the firm, says WePay, the Silicon Valley-based start-up, acquired by J.P. Morgan in December 2017. The feature, available to some users already and spreading to all of its platforms by year-end, eases a cash bottleneck faced by many businesses. A restaurant, for instance, can receive credit-card payments for happy hour drinks later that day. Payments received by 5 p.m. Pacific Time on Sunday through Friday will be deposited to user accounts by 9:30 p.m., according to WePay. Payments made on Saturday will be posted by Sunday at 4 p.m.
  • Survey: Check Usage Drops to a New Low of 42% for Business to Business Transactions

    BETHESDA, Md., Sept. 10, 2019 /PRNewswire/ -- Check usage continues to decline for business-to-business (B2B) transactions, falling to an all-time low of 42 percent, according to the 2019 AFP Electronic Payments Survey, underwritten by J.P. Morgan. B2B check payments have now fallen by nearly 50 percent since 2004, when they were at 81 percent. Check usage has also shown a steady decline since 2013 and 2016, when approximately half of the average organizations' payments were made using checks." data-reactid="12">Check usage continues to decline for business-to-business (B2B) transactions, falling to an all-time low of 42 percent, according to the 2019 AFP Electronic Payments Survey, underwritten by J.P. Morgan. B2B check payments have now fallen by nearly 50 percent since 2004, when they were at 81 percent. Check usage has also shown a steady decline since 2013 and 2016, when approximately half of the average organizations' payments were made using checks. But even though checks are slower to process than electronic payment methods and are more susceptible to fraud, they continue to dominate B2B transactions, signaling the challenge in changing internal processes. Other barriers treasury departments face in moving away from checks are a lack of IT resources, and difficulty convincing business partners to shift towards sending/receiving e-payments.
  • The Treasurers’ Guide To Simplifying Cross-Border Payments — PYMNTS.com

    The global economy is more interconnected than ever, with more companies doing business abroad than at any time in recorded history. On one hand, this brings opportunity, with businesses reaching more customers in more markets. On the other hand, it also means they must learn to navigate a highly fragmented and complex international payments ecosystem. Each country has its own rules and regulations dictating how businesses can make and receive payments, as well as its own, unique financial infrastructure. Moving funds across borders means moving them in and out of these myriad systems. Overcoming these regularity barriers can make international payments expensive, slow and highly uncertain, especially when using legacy payment rails like ACH. How can international businesses streamline their cross-border operation systems to overcome these frictions?
  • PayThink FedNow poses a threat to 'fast' fintechs — paymentssource.com

    Consumers increasingly expect real-time payments, and fintech companies have expressed frustration about the difficulty of providing payments services in the U.S. that can meet this expectation. Of course, those fintech companies whose primary service is the provision of faster payments may face a future threat from the FedNow Service, which could bring more banks on board. Fintech companies may also benefit from the availability of a Fed-led real-time payments network.