Payments Archives - Fintech News

Cloud-based payments are the future, and banks need to get with the program

Horacio — Wed, 17 May 2023 07:25:31 +0000

In corporate banking, adapting to change is crucial. The rapidly evolving demands from corporate clients mean banks must be on the leading edge of change and identify potential success factors to move in the right direction or risk being left behind. While the technology, such as cloud-enabled platform banking or software-as-a-service (SaaS) solutions enable banks to meet their objectives, it’s imperative—above all else—that they’re meeting customer demand.

In a report titled “Cloud Payments and Payments as a Service are Taking Hold,” Steve Murphy, Director of Commercial Payments at Javelin Strategy & Research, discusses some of the key benefits of cloud-based payment solutions and payments as a service models. Adopting these solutions allows banks to put out new services more easily, and adapt to changing demands more quickly. Also, major players such as Amazon and Microsoft have cybersecurity that is top-notch, satisfying key regulators and making banks more comfortable in partnering with them. Although private cloud servers have historically been the norm, more companies are moving to hybrid operations or pivoting to public models altogether. All of this is making banking as a service (BaaS) and payments as a service (PaaS) more common.

The Cloud: An Old Newfangled Technology

The adoption of cloud-based payment systems by enterprises justifies the use of the phrase “everything old becomes new again.”

Cloud computing represents a return to a computing architecture that predates personal computers. In the early days of computing, most users accessed computing resources through terminals that were connected to large mainframe computers, which handled all of the processing and storage. Similarly, cloud computing allows users to access computing resources through the internet, with the resources hosted remotely.

But there is a key difference: With cloud computing, the resources are distributed across multiple data centers and can be scaled up or down as needed to accommodate fluctuations in demand. This makes cloud computing more flexible and scalable than the old mainframe architecture and makes it helpful for driving innovation in payment systems that layer on top of them.

The adoption of cloud-based payments in enterprise systems is rapidly growing. According to Murphy, this is due to the shift in revenue sources amid the unpredictability of market conditions and the need for more non-interest income in commercial bank models.

For example, banks can charge a processing fee for each transaction processed through their cloud-based payment systems. These fees can be a significant source of non-interest income for banks, especially if they process a large volume of transactions. Through their cloud-based payment systems, banks can also offer value-added services to their customers, such as fraud detection and prevention, data analytics, and customer insights. These services can be charged on a subscription or usage-based model, creating a new revenue stream for the bank.

Clouds can be public, private, or a mix (hybrid), each with its own pluses and minuses. Murphy also notes that banks can struggle to keep up with the latest security breach mitigation procedures and protocols required to secure their private cloud infrastructure. Pivoting to a public cloud like AWS or Azure can obviate the need to deal with all of that. Furthermore, the public cloud model is often cheaper, easier to scale, and more reliable.

When it comes to how banks interact with a public cloud, Murphy highlights the importance of distinguishing between the legacy application service provider (ASP) model versus the SaaS model. In the ASP model, service providers manage third-party software on behalf of banks. In contrast, modern SaaS providers manage their own software on behalf of their customers. This is what underlies public cloud services and the development of BaaS and PaaS solutions.

Use Cases of Cloud Computing and Cloud Payments: BaaS and PaaS

BaaS is a banking model that allows a fintech to offer banking services without needing to obtain a bank license, which avoids the rigorous chartering and capital management process. This occurs through a partnership with a licensed bank, which manages the accounts and gains some fee income. The client-facing activity remains with the fintech brand, but it is fundamentally a collaboration.

For example, the Stripe Treasury platform launched in 2020, in partnership with Goldman Sachs and other banks. According to Murphy, this was the first transaction banking business built entirely in the cloud with an API-first approach.

Another important model for cloud-based payments is PaaS, in which a third-party provider offers payment processing to other businesses. B2B PaaS can encompass a wide range of payment methods and services, including electronic funds transfers (EFTs), automated clearing house (ACH) payments, wire transfers, and virtual credit cards.

One example of the PaaS model is Stripe, a suite of software tools for businesses to manage payments, subscriptions, and billing. PaaS adoption is driven by technological advancements, such as faster payments, global messaging standards, API adoption, and increased innovation in cross-border alternative payment methods.

Advice for Financial Institutions

When financial institutions want to upgrade their payments capabilities, it’s best to approach cloud migration gradually and not disrupt existing delivery methods all at once. Cloud-based SaaS solutions can integrate banks and their clients. FIs might consider partnering with third parties to offer BaaS and take a cut of the fees that are collected by a potential fintech partner.

Real-time payments adoption is a good fit for PaaS deployment. This is because it’s a new service that won’t cause any system disruptions and has low upfront costs, allowing volume to grow over time. The FedNow launch expected in July is likely to lead to additional growth in real-time payments, and companies should plan accordingly. They can rely on third-party companies to scale up RTP for services gradually, as it gains traction.Top of Form

Banks, fintechs, and cloud services companies clearly have become entwined and are producing an ecosystem that is dynamic and flexible and will serve well as the financial system develops over time. For banks, in particular, success will involve reimagining banking as a collaborative effort.

Link: https://www.paymentsjournal.com/cloud-based-payments-are-the-future-and-banks-need-to-get-with-the-program/

Source: https://www.paymentsjournal.com

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Gen Z Is embracing cash

Horacio — Thu, 11 May 2023 14:31:30 +0000

By Connie Diaz De Teran

A study commissioned by Credit Karma and conducted by the Harris Poll found that crippling inflation has impacted consumers both in the U.S. and the U.K., driving them to use more cash to better manage their finances.

The survey’s findings highlighted that cash usage is particularly high among Gen Z, with 69% of this demographic group using more cash than they did a year ago. To put that in perspective, 47% of Gen X respondents said they’re using cash more than they did 12 months ago, while fewer baby boomers (37%) are as well. Furthermore, 23% of Gen Z revealed that the majority of their purchases, including groceries, clothing, and nonessentials such as coffee, are made using cash. That’s because this group is embracing cash and keeping themselves accountable when it comes to budgeting their money. They’ve found that doing so also leads to them spending less, and overall, gives them the feeling of having more control over their spending (19%).

According to Credit Karma, it’s not just all about budgeting though. Roughly 20% of Gen Z are using cash more since it doesn’t have a digital trace for the transaction, and it gives the feeling of free money. Credit Karma believes that this rationale can lead to excessive spending, making it more difficult for young people to save and plan for the future.

Cash Stuffing to Help Curb Excessive Spending

Another trend making waves among Gen Z—particularly on popular social media platforms such as TikTok—is the concept of cash stuffing. It comprises setting aside physical cash to spend on a variety of spending categories at the beginning of each month, to be used throughout the month. Once the funds have been spent, all spending is halted until the following month when the cycle begins once again.

Of the Gen Z respondents that use cash stuffing, some have reported that they use this method to save, while others use it to budget.

Courtney Alev, Consumer Financial Advocate at Credit Karma said:

“Cash can be a great tool for budgeting and saving money, especially if you’re someone who tends to overspend when swiping using debit or credit. However, whether using the cash stuffing method or simply pulling out a set dollar amount each paycheck to ensure you’re not overspending, make sure you’re still doing the work to build your credit.”

“That can be as simple as setting up monthly subscriptions on one credit card and paying it off at the end of each month or using one card to pay for gas expenses. It’s important to build credit so that you’re able to gain access to better priced financial products, like auto loans and mortgages, down the line.”

Link: https://www.paymentsjournal.com/gen-z-is-embracing-cash/

Source: https://www.paymentsjournal.com

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2023 predictions: authentication, digital identity, and in-car payments

Horacio — Mon, 03 Apr 2023 12:00:46 +0000

By Rafael Lourenco

Improving the subscription billing process isn’t necessarily complicated, and it can help retain customers and perhaps allow your brand to charge a premium for a better experience. Here’s how to audit, test, secure, and improve your subscription billing and payment options to retain existing customers and attract new ones, even as households tighten their budgets.

Give Subscribers As Much Control Over Their Payments As Possible

Consumers are used to personalized product recommendations, and personalization is often one of the reasons they choose a particular subscription. To usher those customers through signup and checkout—and to keep them as subscribers—the payment process needs to cater to their individual preferences as well.

The simplest way to do this is to accept a range of payment methods, and especially to accept digital wallet payments. Now, more than 70% of customers prefer to use digital wallets instead of credit cards some or all of the time when they buy online. That statistic comes from ClearSale’s 2021 five-country survey of 5,000 ecommerce consumers over the age of 18. Another finding from the survey is that only 28% of consumers always have their credit cards within reach while they shop online, which underlines the importance of digital wallet options that store and protect card data, such as PayPal, Google Pay, Apple Pay, and Amazon Pay.

Giving subscribers the payment methods they prefer is the first step to reducing billing friction. The next is to explore other options for payment customization. This lets them manage their cash flow better, so they don’t have to worry about covering their subscription bills.

Subscribers also reported an interest in splitting payments among multiple people—a feature that payment apps like Venmo have trained consumers to expect. For example, a streaming video subscription that’s shared among roommates might be split between them, instead of having one person pay the entire bill and wait for their roommates to reimburse them.

Show Subscribers That Their Payment Data Is Secure

Digital wallets are one way to reassure subscribers who are concerned about data security, because their card numbers are shielded from the retailer. However, retailers and ecommerce businesses can do more to demonstrate their commitment to security. Nearly half (49%) of consumers say the possibility of scams deters them from doing more of their shopping online, and 38% say they’re deterred by concerns about website security, according to our research.

Often, ecommerce sites avoid mentioning security because they don’t want to raise the possibility of fraud in customers’ minds, but 88% of consumers in the survey also said they feel more secure shopping on websites that clearly state their fraud prevention and data privacy tools. Adding the badges or logos of the tools you use, especially on the checkout pages, can increase signups and loyalty.

Take Steps To Prevent False Declines for Your Subscribers and Reduce Billing Friction

Recurring payments like subscriptions can be vulnerable to account takeover fraud, and they can have false decline rates around 20%. Both fraud and false declines disrupt the customer experience and can cause churn.

Reducing declines for subscription payments while preventing fraud requires screening of each month’s payment, ideally with behavioral biometrics to see if there’s been a dramatic change in the user’s choices, shipping preferences, or activity on the site that might indicate account takeover. Flagged orders should be reviewed by an expert rather than automatically declined; that extra step can reduce false declines and ensure a friction-free payment experience for subscribers.

Make Account Management Simple and Transparent

After customers have subscribed, it’s also important to make it easy for them to see their account status and make changes when they need to, such as changing from one subscription tier to another. It should also be easy for subscribers to cancel or pause their subscriptions without having to contact customer service—although customer service should be easy to reach if subscribers have questions about their billing or account.

When your customers can pay for their subscriptions the way they prefer, trust that their data is protected, don’t experience fraud or false declines, and can self-manage their accounts, they’re more likely to stay with your service instead of shopping around for an alternative with easier billing experiences.

Link: https://www.paymentsjournal.com/retain-more-subscription-customers-by-reducing-billing-friction/

Source: https://www.paymentsjournal.com

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Can Apple Pay Later light a fire under Apple Pay Now?

Horacio — Wed, 29 Mar 2023 09:35:57 +0000

Launched way back in 2014, Apple Pay was supposed to ignite contactless payments, with Apple devices as the conduit.

Consumers would move beyond using the physical wallet at the point of sale — especially the physical point of sale — and juggling plastic debit and credit cards.

The iPhone or Watch would be the gateway to using digital wallets. Merchant by merchant, payment by payment, we’d cement the Apple ecosystem, one transaction at a time.

It hasn’t worked out that way — not as some observers may have hoped, though progress has been made.

Might installments be the spark that ignites a fire under Apple Pay?

PYMNTS data show that three-quarters of U.S. retailers accept Apple Pay and nearly half of all U.S. consumers have iPhones. And in terms of the headline numbers, as relayed late last year in the report “Apple Pay At 8: Connected-Tech Consumers Lead The Way,” 44% of in-store digital wallet transactions are done with Apple Pay.

But in terms of the overall landscape, that slice of on-premise commerce is relatively miniscule, at 2.4%.

PYMNTS has found that Apple Pay, as shown in the chart below, only captures the “share of eligible” transactions 6% of the time. Eligible transactions, as defined here, can be described as when a consumer walks into a store where it’s possible to use Apple Pay. The consumer has an iPhone capable of working with Apple Pay and the merchant accepts Apple Pay. The 6% share has been relatively constant.

The tech behemoth’s foray into the crowded pay-by-installment arena is now official.

Apple said on Tuesday (March 28) that it had launched Apple Pay Later. The rollout’s being done across select, invited users, we reported. Through the service, users apply for loans ranging from $50 to $1,000 and the interest-and-fee-free loans are then repaid, broken up into four payments spanning six weeks. The service thus far is available in the U.S. only, and for in-app and online purchases.

The option will be offered at checkouts for merchants that accept Apple Pay.

There’s are a few important wrinkles here:

Apple Pay Later is enabled through the Mastercard Installments Program but the lending is done by Apple subsidiary Apple Financing LLC.

“Apple Financing plans to report Apple Pay Later loans to U.S. credit bureaus starting this fall, so they are reflected in users’ overall financial profiles and can help promote responsible lending for both the lender and the borrower,” Apple said Tuesday.

And, in addition, Apple has said that users will be asked to link a debit card from Wallet as their loan repayment method. This, Apple noted in its blog announcing the buy now, pay later (BNPL) offering, will “help prevent users from taking on more debt to pay back loans … credit cards will not be accepted.”

More (Financial) Services in the Mix

By conducting credit and making the lending decisions, Apple now branches more deeply into services, and specifically, financial services. Past earnings call commentary has revealed some general trends, where management had called out unspecified “revenue records” across categories that include payment services. CFO Luca Maestri said during the February call to discuss December quarter results that “Apple Pay is now available to millions of merchants in nearly 70 countries and regions. And we saw a record-breaking number of purchases made using Apple Pay globally during the holiday shopping season,” adding, “Both transacting accounts and paid accounts grew double digits. And so that bodes very well for the future.”

For Apple, the heat is on to get some heat under its Pay momentum. As reported at the beginning of the year, some of the largest banks in the U.S. are reportedly launching digital wallets, and Apple is of course in the crosshairs. The banks are developing a product that will let consumers make online purchases with a wallet tied to their Visa or Mastercard debit or credit cards.

For Apple, Pay Later’s been a long time coming — and we’ll soon see if the bet on installments pays off.

Link: https://www.pymnts.com/news/payment-methods/2023/can-apple-pay-later-light-a-fire-under-apple-pay-now/

Source: https://www.pymnts.com

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Bitcoin vs. PayPal: Which is the better payment option?

moccia — Tue, 28 Mar 2023 10:59:06 +0000

In the online casino industry, online casinos accepting PayPal became the most sought-after, with popularity fueled by the UK Gambling Commission’s announcement to ban the use of credit cards to gamble in Great Britain. Currently, Bitcoin and PayPal are two of the most popular payment options at online casinos. Even though players favour both, they are vastly different, so deciding which payment option is best leads to many questions.

In finding out which is the best for you, we explore both payment options first and then compare Bitcoin vs. PayPal in terms of compatibility, accessibility, cost, versatility, ease of use, transaction speed, and support. We aim to correctly identify the two popular choices, gather the details available, and provide all the facts to ensure UK players can make informed decisions based on facts that highlight the pros and cons of both payment methods.

Bitcoin

Existing since 2009, Bitcoin was the first cryptocurrency to offer an opportunity to mine, trading became available only once it was assigned a monetary value. In 2010, the first transaction takes place in swapping 10,000 for two pizzas, today that would be worth over £100 million.

In 2011 the popularity of Bitcoin leads to the rival of other cryptocurrencies, and by 2013 the value of Bitcoin reaches £1,000. In 2014, the largest exchange of Bitcoin goes offline, and Mt. Gox leaves owners of over 850,000 at a value of then £450 million left with nothing.

By 2017 the value of Bitcoin increases to £10,000, in 2021 it surpassed £40,000. Only 21 million was created and for as long the demand remains it is predicted to reach its highest limit as it gets closer to its limit.

PayPal

PayPal, established in 1998, launches a platform for transferring money in 2002 and increased its international reach under eBay. In 2006, PayPal, seen as a payment giant, adds 10 currencies and by 2007 its EU banking license unlocks access and user in Europe grows to 35 million including around 15 million in the UK.

At the end of the year, the payment provider generated revenue worth £1.8bn and started buying out competitors. Expansion continues until 2018, with mobile payments reaching £4bn by 2011, almost doubling in 2013 to £27bn, leaving eBay in 2015, although remaining a payment option for shoppers on eBay till 2023.

Compatibility and Accessibility

In playing at UK online casinos, the trend is noticeably towards PayPal and you’d think away from Bitcoin. But most online casinos are starting to shift their focus towards cryptocurrencies, especially operators who wish to rank higher by offering the fastest payouts, so far the UK Gambling Commission has not rejected. No law forbids or even discourages the use of Bitcoin, although it might not agree with the strict protocols of the regulator’s KYC rules, in which online casinos are required to prove that players are who they claim to be.

It’s easy with debit cards connected to a person’s name, address and age. Bitcoin offers no such connection, making it probably the option of choice for illegal gambling. Currently, more online casinos are accepting PayPal than Bitcoin, which offers UK players not only access to a larger gaming selection but also excellent bonuses with terms and conditions in line with UKGC regulations. In terms of player safety and fair terms, the obvious choice may be PayPal due to the strict rules of the Gambling Commission focused on player protection.

Cost and Versatility

To host the payment method, online casinos need to have a PayPal account and get charged merchant fees. It’s only a small percentage-based commission charged for payments received. The cost to players includes a fee for transfers to their accounts and/or currency conversions.

Bitcoin wallet holders are not required to adhere to the strict T&C, which makes it a more versatile payment option. Making it one of the most accessible options for players to use for real money play at online casino slot sites and online poker sites.

Online casinos process Bitcoin payments without the need to look over their shoulder or worry about the account being suspended or banned, which could halt business.

Ease of Use and Transaction Speed

Both PayPal and Bitcoin might feel a little complicated at first, although it’s only at the start of using the payment option. PayPal requires new users to sign up, and setting up an account, adding of a bank account and go through a verification process. Once completed players only need to log in when they wish to transfer money.

Bitcoin requires new users to download an online wallet, sign up with an exchange, and purchase coins. In all fairness the process with Bitcoin is more complicated, depending on what players are used to, it is less challenging for anyone that already has an account with either one.

When it comes down to transaction speed, both Bitcoin and PayPal are fast payout options. In dealing with straight-up withdrawals and deposits, both Bitcoin and PayPal process payments almost immediately once initiated. The pending periods at the online casinos may differ for the two options which could have an impact on how long your winnings take to reflect in your bank account. Although, it should be as quick in both cases.

User Support

Due to its nature, Bitcoin offers no support, while PayPal offers professional and friendly support making it an attractive option if you prefer a payment option with a number and email address you can use.

Quick Summarized Comparison

Conclusion

Financial technology continuously changes, and no one can accurately predict what the future will bring. Both payment options offer benefits, which means the best payment option depends on the player’s personal preference and needs.

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Visa finds more consumers using digital apps for remittances

Horacio — Wed, 22 Mar 2023 14:46:47 +0000

Visa has found that more remittance senders and receivers are using digital apps.

Fifty-three percent of these consumers use digital apps to send and receive money around the world, while 34% go to a physical bank or branch, 12% send cash, checks or money orders by mail and 11% give money to another person who is traveling to their home country, Visa said in a Tuesday (March 21) press release.

“This new research shows incredible acceleration of digital payments, but there is still more the industry can do to bring streamlined remittances within reach for more migrant workers and their families who rely on these lifeline payments to do everything from pay for food, education or even unforeseen medical costs,” Ruben Salazar, global head of Visa Direct, said in the release.

Among the pain points faced by consumers on the send side are fees that are too high, which was cited by 38% of senders in the United Arab Emirates (UAE), and issues with calculating the exchange rates, which were cited by 37% of those in Singapore, according to the press release.

At the same time, a large share of remittance users consider app-based digital payments to be the most secure method for sending money internationally. For example, 61% of those in Singapore said ease of use and security is the reason they use digital-only means, the release said.

PYMNTS research has found that the need for affordability and convenience drives the way consumers send and receive cross-border payments.

Payment services providers (PSPs) that offer alternatives to traditional remittance payments methods may see a surge of interest among consumers seeking to avoid high fees and extended processing times, according to “The Digital Currency Shift: The Cross-Border Remittances Report,” a PYMNTS and Stellar Development Foundation collaboration.

Visa Direct, the company’s real-time push payment offering, logged 1.9 billion transactions in the fiscal first quarter, up 39% year on year, Visa CEO Al Kelly said Jan. 26 during the company’s quarterly earnings call.

Non-U.S. Visa Direct transactions grew by roughly 20 percentage points, Kelly added.

Cross-border remittances and account-to-account transactions hold particular appeal, Visa management said during an earlier earnings call.

Link: https://www.pymnts.com/news/cross-border-commerce/cross-border-payments/2023/visa-finds-more-consumers-using-digital-apps-for-remittances/

Source: https://www.pymnts.com

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Why less is more when it comes to the future of E-commerce payments

Horacio — Fri, 17 Mar 2023 11:55:18 +0000

By Kristine Demareski

Too many choices can sap our brainpower and make it hard to think straight. Unfortunately, when making e-commerce payments, things aren’t all that different.

The time has come for retailers and digital financial services firms to make the online payments experience smarter—smart enough to hide payment options that aren’t relevant to the buyer.

E-Commerce Payments: The Upside of Accepting Multiple Payment Methods

E-commerce brands typically support as many popular payment options as possible on their websites. And why not? Customers expect it, competitors offer it, and it prevents businesses from being dependent on a single payment provider. Besides, additional payment options generally lead to more paying customers.

But is a crowded checkout page with multiple options really the best experience? Probably not. In fact, research from Baymard Institute found that the average e-commerce site can improve its conversion rate by 35% solely through design improvements to the checkout process.

The Downside of Accepting Multiple Payment Methods

When thinking about how to pay for something online, today’s customers face a dizzying array of options: card payments, direct bank deposits, multiple digital wallets, and peer-to-peer payments. Now add to that the acceleration of buy now, pay later (BNPL) providers such as Klarna and AfterPay—with Affirm and Apple as the latest entrants to the market—and consumers have even more choice. And this doesn’t account for emerging payment methods such as cryptocurrency, biometrics, contactless payments, QR codes, and bitcoin.

With all these choices, it shouldn’t come as a shock that checkout pages are busy. What’s more, merchants must select, on behalf of their customers, not only the types of payments their e-commerce sites will support, but also which brands. For example, one retailer may use Klarna, while another may use Affirm. So, a customer who’s shopping online at both retailers would have to create multiple payment accounts for multiple retailers and geographies. In the brick-and-mortar world, this would be akin to a customer deciding to pay by credit card and then finding out that the store only accepts a Citibank or Chase card.

More Choice, More Mess for Merchants

The proliferation of payment options doesn’t only make things more challenging for customers. The growth in digital wallets, and the number of payment choices out there, are making things more complex for merchants too.

Global wallet choices offered by U.S. providers alone include Apple Pay, Google Pay, Samsung Pay, and PayPal. In China, wallets are the most popular way to pay, with Alipay being a preferred payment method. Additionally, the four major credit card payment processors rolled out Click to Pay, and many merchants including Amazon, Walmart, and Fitbit, even offer their own payment solutions. So how’s a merchant to decide which ones to implement?

Payment processing companies, such as San Francisco-based Stripe and Dutch payments company Ayden, have begun to introduce turn-key support for multiple wallet options to make them easier for merchants to implement and manage. Such companies have built an economic infrastructure to support making and accepting payments. And they process card payments, ACH payments, as well as some digital wallets and local payment methods.

A similar trend is emerging to help merchants tackle the complexity in BNPL options. Companies such as ChargeAfter provide a single interface for merchants to choose which BNPL options they’d like to implement.

While such solutions may simplify the merchant’s development process, overcomplicating the checkout page will never be the answer. And moving forward, the continued evolution of the vast technological advance fueled by the internet only promises to make things more complex for merchants. Ronak Doshi, Partner at Everest Group, agrees.

“The rise in Web 3.0 and metaverse adoption will expand the number of channels and the payment methods that come along with them,” said Doshi. “At the same time, the rise of real-time payment schemes are poised to add more competition and players in the payment ecosystem. This will simplify the payment processes but increase the number of choices for e-commerce firms and their customers.”

E-commerce Payments: The Right Option at the Right Time

Consumers don’t necessarily need more payment options—they need the right option at the right time. This means that companies need to be able to put forth the proper payment platform for a specific purchasing scenario. Payments should take a page from the playbook of digital-native companies such as Netflix, YouTube, and Amazon, which use product recommendation engines to entice users with relevant suggestions based on their previous choices.

Extending product recommendation engines to payments would enable the customer to select the best payment option for them. This requires a deeper insight on consumer buying preferences and predictive modeling.

E-commerce product recommendation engines are sophisticated systems that use algorithms and data to predict the products most relevant to the customer in a given context—increasing the likelihood of a purchase.

The proliferation of choice is less about the next big payment platform and more about being smart about how we use the payment platforms that are already available.

Which companies will be the first to improve the customer experience by personalizing the types of payments they offer at certain touchpoints in the purchasing journey? That remains to be seen.

But one thing is certain. Those that do will have a competitive advantage and provide customers with a great experience all around.

Link: https://www.paymentsjournal.com/why-less-is-more-when-it-comes-to-the-future-of-e-commerce-payments/

Source: https://www.paymentsjournal.com

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WeChat integrates digital yuan into its payment platform

Horacio — Fri, 10 Mar 2023 21:10:41 +0000

By Amaka Nwaokocha

Chinese social media platform WeChat has incorporated the digital yuan in its payment app to boost the CBDC’s popularity.

WeChat, China’s leading social networking and payment app, has added the country’s central bank digital currency (CBDC), to its payment services, according to reports in local media. The move aims to help broaden the appeal of the digital yuan.

WeChat now supports the fast payment function of the digital yuan wallet, making it the second payment platform to do so after Alipay.

This feature enables users to use the digital yuan for payments on certain WeChat mini-programs and other platforms. The pilot version of the digital yuan application’s “Wallet Quick Payment Management” page currently lists 94 merchant platforms that can be accessed, now including WeChat. WeChat Pay now allows digital yuan payments on certain apps, such as ordering food from McDonald’s and paying bills.

Users must authorize the digital yuan wallet operator to sync their WeChat-bound mobile phone number for successful activation of the WeChat payment wallet fast payment function. Once activated, payments to digital yuan-supporting merchants can be made through the WeChat app. Additional integrations are expected to become available gradually.

“Chinese consumers are so locked in WeChat Pay and Alipay, it’s not realistic to convince them to switch to a new mobile payment app,” said Linghao Bao, an analyst at Trivium China, a strategic advisory firm. “So it makes sense for the central bank to team up with WeChat Pay and Alipay as opposed to doing it on its own.”

The digital yuan, also known as the e-CNY, is being piloted in at least 26 Chinese provinces and cities. The token saw a jump in transaction volumes on Chinese e-commerce platforms during the 2023 Lunar New Year shopping season, helped by e-CNY handouts from authorities.

In December 2022, Alipay announced its access to the digital yuan acceptance network, allowing users to spend digital yuan consumption on platforms served by Alipay, including Taobao, Shanghai Bus, Ele.me, Youbao, Tmall Supermarket and Hema.

Link: https://cointelegraph.com/news/wechat-integrates-digital-yuan-into-its-payment-platform?utm_source=pocket_saves

Source: https://cointelegraph.com

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Apple Pay Later’s time is ‘soon’ – but will it be soon enough?

Horacio — Wed, 08 Feb 2023 07:15:35 +0000

Key among the tech giant’s efforts to cement an ecosystem that brings higher-margin services to the forefront has been the move to offer credit cards, digital wallets and its impending BNPL option, Apple Pay Later.

And in the case of installments, BNPL-as-offered-by Apple is on the near-term horizon. As discussed last week in an interview with CNBC, CEO Tim Cook said that Apple Pay Later would be launching “soon” and, as has been reported, is being tested by company staff. The BNPL feature, as had been previewed upon announcement last year, would be presented as a payment option within the Wallet app, with payments spread out over several weeks and with no interest charges.

With the timing thus far unofficial, and the BNPL launch having already been pushed out due to technical challenges, as Bloomberg reported in the Fall of 2022, the question remains: Just how big a splash will Apple Pay Later make?

Progress with Payments

There are indications that the company is progressing in its payments initiatives, though off a somewhat small base. Clearly, the dry kindling is there, so to speak, as determined by merchant acceptance and the consumers having the actual tools in hand with which to pay. As we reported here late last year, more than three-quarters of major U.S. retailers accept Apple Pay and nearly half of all U.S. consumers have iPhones in their pockets. But Apple Pay accounts for just 2.4% of overall in-store purchases.

However, most recently, during last week’s earnings call, Cook remarked that the company achieved “double-digit revenue growth from App Store subscriptions and set all-time revenue records across a number of categories, including cloud and payment services.” All told, he said, Apple now has more than 935 million paid subscriptions. And Chief Financial Officer Luca Maestri said during the call that “Apple Pay is now available to millions of merchants in nearly 70 countries and regions. And we saw a record-breaking number of purchases made using Apple Pay globally during the holiday shopping season.”

The volume/value of those purchases were not detailed on the call.

But Maestri said later in the call that “the level of engagement of our customers already in our ecosystem continues to grow…both transacting accounts and paid accounts grew double digits. And so that bodes very well for the future.” He also added that the company offers multiple payment methods in multiple countries.

Those methods, of course, will include Pay and BNPL. But those offerings jockey for position in an increasingly crowded arena, even when BNPL is gaining traction in financial services overall as a tool to manage inflation.

America’s biggest banks are readying their own digital wallet against providers like Apple and PayPal, tied to payment networks’ debit and credit cards.

The card efforts have had their share of headwinds. Goldman Sachs’ results showed that its fourth-quarter provision for credit losses was $972 million, reflecting provisions related to the credit card and point-of-sale loan portfolios — and said that its Consumer net charge-off rate stood at 2.8%, up 0.5% year on year. The Platform Solutions segment, which houses the Apple Card product, saw revenues of $513 million in the latest quarter but lost $778 million in the same period, per corporate filings.

For Apple, payments are a key part of building an ecosystem that ties hardware and services together and progress is showing through, but not without speed bumps and challenges in the mix.

Link: https://www.pymnts.com/mobile-applications/2023/paytm-boosted-india-ban-chinese-apps/

Source: https://www.pymnts.com

The post Apple Pay Later’s time is ‘soon’ – but will it be soon enough? appeared first on Fintech News.

FCFMarkets Review: is it legit?

moccia — Fri, 27 Jan 2023 22:26:30 +0000

The financial trading platform known as FCFMarkets provides its users with a selection of analytic applications to assist them in making informed judgments. Tracking market patterns, locating lucrative transactions, and mitigating risk may all be accomplished with the help of these tools. This FCFMarkets review focuses on that.

Market Trends

The capability to monitor and analyze changes in market trends is one of the essential analytic functions of the platform. This covers data on currency pairings, equities, commodities, and indexes, among other financial instruments. Traders may use this information to recognize trends and anticipate future price changes by using it to make predictions. For instance, if the value of a currency pair has been steadily increasing over time on FCFMarkets, a trader would choose to purchase the team with the expectation that the price will continue to rise in the future.

Analysis on a Technical Level

In addition, FCFMarkets provides its clients with a selection of technical analysis tools, which may include charting and indicators. Finding patterns and trends in the market is possible with the assistance of these instruments. For instance, to assist in identifying trends in a currency pair, a trader would use a moving average indicator. In addition, traders may utilize the tools available for charting to find critical levels of support and resistance, which can assist them in determining where to join and exit deals.

Risk Management

Risk management is another essential component of being successful in trading. The platform offers clients risk management options, including stop-loss orders, take-profit orders, and more. If the trader sees that the market is moving against them, they may use these tools to liquidate their positions automatically, decreasing their exposure to possible losses. In addition, traders have the ability to boost their purchasing power and possibly their earnings by using the strategies of margin trading and leverage.

Current Events and an Economic Schedule

The financial markets are susceptible to being strongly influenced by various factors, including economic developments and news reports. Traders may utilize FCFMarkets’ economic calendar and news section to remain updated about forthcoming events and announcements, and both of these resources are available on the company’s website. This enables traders to make educated selections based on news events driving the market.

End Note

FCFMarkets provides its traders with a comprehensive collection of analytical tools that may be used to make well-informed judgments. These tools assist traders in locating lucrative trades and managing risk in a variety of ways, including monitoring market patterns, doing technical analysis, and managing risk. Traders may also benefit from the news and economic calendar capabilities since these tools allow them to remain updated about market-moving announcements and events.

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