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« October 20, 2013 - October 26, 2013 | Main | November 3, 2013 - November 9, 2013 »

November 01, 2013

Headline News from PaymentsNews.com - November 1, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami, Nov 4-7, 2013.
  • Glenbrook's Jacqueline Chilton will be speaking social media and payments at the W.net Northern California LINC Networking event being held November 14 at Google.
  • Join our mailing list for updates about Glenbrook events. Follow us on Twitter: @paymentsnews and @paymentsviews

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

October 31, 2013

Circle Internet Financial Launches with $9 Million Series A from Accel, General Catalyst Partners

Circle logo 140pxJeremy Allaire has announced a new startup - Circle Internet Financial - that "will seek to drive mainstream adoption of digital currency such as Bitcoin by bringing payment acceptance tools to merchants, and easy to use services to consumers." The company has raised a $9 million Series A from Jim Breyer, Accel Partners and General Catalyst Partners.

Jim Breyer will join the Board of Directors of Circle, as will David Orfao of General Catalyst Partners. Jim Breyer, Accel and General Catalyst were investors in Allaire’s previous company, Brightcove, the industry-leading online video platform which had a successful IPO in 2012, and where Jeremy still serves as the company’s Chairman. Allaire also was a co-founder of Allaire Corp., whose ColdFusion product pioneered the Web application development market and led to a successful IPO in 1999. Allaire Corp was then acquired by Macromedia in 2001, where Allaire became CTO, and helped spearhead the strategy to create an application platform built around Flash.

Bitcoin and digital currency represent a once-in-a-lifetime opportunity to shape the future of the Internet and global commerce,” said Jeremy Allaire, founder and chief executive officer of Circle Internet Financial, Inc.

“There’s a tremendous opportunity to make payments easier, more secure and less costly for consumers and businesses. Digital currency can dramatically reduce the friction and costs currently experienced in the world by merchants and consumers.”

Circle launches amid surging interest in the promise of new global digital currencies such as Bitcoin, which can enable nearly instant payments and money transfers globally at almost no cost and with greater security and privacy than existing electronic payment methods. Like prior Internet-led disruptions of the media, communications and retail industries, Bitcoin’s disruption of payments and finance builds on open source and open standards to create resilient technology platforms that innovators can build upon.
It is rare to find a world-class entrepreneur embarking on a path to bring innovation to the global financial marketplace”, said Jim Breyer, Partner, Accel Partners. “The dramatic global growth in mobile, social and online commerce is creating the need and potential for a real global digital currency. With Jeremy’s vision for Circle and track record as an Internet pioneer, the opportunity here is to build potentially build a significant global company. I’m very pleased to be working with Jeremy again.”
Circle is regulated by the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Department of Treasury, as a money transmitter and is seeking appropriate state licenses. Circle also recently hired John Beccia as General Counsel and Chief Compliance Officer. Beccia, former Chief Regulatory Counsel for the Financial Services Roundtable in Washington, D.C. brings decades of operating experience in banking, compliance and risk management. Circle is committed to working with key government agencies and policymakers worldwide.

FIS Study Finds Consumers Want Immediate, Real-time Payments

FIS logo 140pxFIS has announced results of the third phase of a consumer banking behavior study finding that "consumers who transfer money person-to-person -- especially those sending money overseas -- want to make those transactions immediate; and, while young consumers are more likely to be among the early adopters of real-time payments, most importantly, they want the process to be convenient and easily accessible."

Real-time payments are clearly the future of money movement, according to the consumer demands laid out by our data,” said Anthony Jabbour, EVP, North American Financial Institutions, FIS.

“As the research has shown, people trust their financial institutions to bring them real-time payment solutions, but they will use other avenues if their bank can’t meet their needs. For that reason, financial institutions must adapt to keep step with their customers and not fall behind non-bank competitors.”

The study, conducted by global market research provider Ipsos Vantis, on behalf of FIS, gauged consumer sentiments and potential economic value for banks that instantly authorize transactions in four key market groups: outbound foreign money transfer users, account-to-account (A2A) transfer users, person-to-person (P2P) payment users and online bill payers.

Faster payment was rated as being important by 80 percent of outbound foreign money transfer users, because it provides both senders and recipients with peace of mind. The majority (58 percent) of A2A users also want to be able to transfer their money between accounts quickly and a large percentage (41 percent) of P2P users want recipients to be able to access funds immediately. Potential adopters of outbound foreign money transfer and P2P real-time payments most often want to use real-time applications to send money -- as gifts, payments, for emergencies and more -- to family members and friends.

Another significantly desired convenience is the ability to enter a recipient’s email address or phone number to route a transaction instead of a long series of bank and checking account numbers. Demand for this convenience is particularly strong among younger generations. Fifty-five percent of Gen Y and 43 percent of Gen X consumers stated they would be more likely to use real-time payments if they could transfer funds in this way.

Headline News from PaymentsNews.com - October 31, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami, Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. Follow us on Twitter: @paymentsnews and @paymentsviews

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

October 30, 2013

Square Names Former Goldman Sachs CFO David Viniar to Board as Howard Schultz Steps Down

Square logo 140pxSquare has announced that it has appointed David Viniar to its Board of Directors replacing Howard Schulz who has stepped down. Viniar was most recently Executive Vice President and Chief Financial Officer of Goldman Sachs, and is currently a member of its Board of Directors.

David’s extraordinary financial insight and expertise will add another valuable perspective to our world-class board,” said Jack Dorsey, CEO of Square.

“The growing scope of Square’s business and long-term vision is inspiring,” said Viniar. “I’m honored to join Square’s Board at such an important time in the company’s growth.”

“Howard’s guidance has helped Square grow as a company and as a business,” said Dorsey. “I have come to know Howard well, and I always appreciate his thoughtfulness and good counsel.”

“Jack has assembled a strong and forward-thinking leadership team at Square,” said Howard Schultz, Starbucks chairman, president and ceo. “I am proud of what our companies have accomplished together this past year and I’m excited about the opportunities for Starbucks and Square to continue to innovate together.”

Square’s Board of Directors also includes Jack Dorsey, Roelof Botha, Vinod Khosla, Jim McKelvey, Mary Meeker, and Larry Summers.

Boku Introduces Mobile Carrier Billing for Parking

Boku logo 140x60pxBoku has announced it is "bringing carrier billing to the real world" through a new partnership with PassportParking. Boku says that a "multi-city trial will give drivers a new way to purchase daily and hourly parking at select lots around the country, using only their mobile phone number, with the charge appearing directly on their carrier billing statement."

“Over the last year, carrier billing has really come into its own as a preferred payment method on new devices, from Smart TVs to game consoles. But bringing our solution to real world purchases has always been a major goal for Boku”

“We’re always looking for innovative ways to improve the parking experience for our customers,” said Bob Youakim, Managing Partner for PassportParking. “People want to park, pay, and get on their way with as little effort as possible. With carrier billing, our parkers can just grab their phones, text, and get back to business. No searching for a pay station or digging for coins or your credit card. That’s a huge value add for our customers.”

Using Boku’s® text-to-pay option to pay for parking, drivers only need to text the parking zone and spot number to a phone number readily displayed at the lot. The payment is authenticated right on the phone, and the charge appears on the user’s mobile statement. Anyone with a phone can pay for parking in less than a minute and they are on their way.

The trial will begin in November in: Chicagoland, IL; Denver, CO; Charlotte, NC; Ocala, FL; Ft. Lauderdale, FL; and Hudson, WI.

PayPal Launches Startup Blueprint Program

PayPal logo 140pxPayPal has announced it is introducing a new Startup Blueprint program which waives fees for PayPal's payment processing up to $50,000 over 18 months along with providing "white glove, developer-focused customer service."

PayPal says that to be eligible for the program, "startups must focus on making mobile or web software or services, make less than $3 million USD in annual revenue or be less than five years old. Companies must be nominated by PayPal, or one of the accelerators or incubators enrolled in the Startup Blueprint program. We will be opening it up soon for other startups that want to apply."

More details on PayPal's Startup Blueprint program can be found here.

Headline News from PaymentsNews.com - October 30, 2013

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami, Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. Follow us on Twitter: @paymentsnews and @paymentsviews

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

October 29, 2013

New Discussion Paper: Clearing and Settlement of Interbank Card Transactions Transactions

Fed Philidelphia logoThe Payments Cards Center at the Federal Reserve Bank of Philadelphia has published a new discussion paper titled "Clearing and Settlement of Interbank Card Transactions: A MasterCard Tutorial for Federal Reserve Payments Analysts" by Susan Herbst-Murphy.

From the summary: "The Payment Cards Center organized a meeting at which senior officials from MasterCard shared information with Federal Reserve System payments analysts about the clearing and settlement functions that MasterCard performs for its client banks. These functions involve the transfer of information pertaining to card-based transactions (clearing) and the exchange of monetary value (settlement) that takes place between the banks whose customers are cardholders and those banks whose customers are card-accepting. This document summarizes some of the key points from that meeting."

First Data Acquires Perka Mobile Marketing/Loyalty Platform

First data logo 140x60pxFirst Data Corporation has announced it has acquired Perka, provider of a smart loyalty program. Perka, based in New York City and Portland, OR, became a First Data subsidiary on Oct. 4, 2013, and continues to operate autonomously. Financial terms of the deal were not disclosed.

“The loyalty industry is rapidly moving from being proprietary and closed to open and interconnected. This shift opens up tremendous opportunities for small and mid-sized businesses to run virtually the same mobile marketing programs as major brands,” said Alan Chung, chief executive officer, Perka.

“We’re excited to join forces with First Data to revolutionize the loyalty space and level the playing ground for smaller merchants with the Perka platform.”

Perka is a mobile marketing and consumer loyalty platform that helps small to medium-sized merchants engage their customers with location-based smartphone apps. The Perka Punchcard service and Perka Flexpoints for retail stores and sit-down restaurants deliver sustainable and highly personal marketing and incentive programs to consumers. The cloud-hosted platform features merchant-validated transactions, triggered offers, mobile messaging, and retail customer relationship data for the merchant.

Headline News from PaymentsNews.com - October 29, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami, Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. Follow us on Twitter: @paymentsnews and @paymentsviews

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

October 28, 2013

How Should Industries Like Payments Be Regulated in the 21st Century?

PayPal logo 140x60pxOn the PayPal Forward blog. Brian Bieron, Executive Director, Global Public Policy, for eBay posts an article about payments regulation in the 21st century - saying that

PayPal is stepping forward to meet this challenge by beginning a collaborative discussion about how increasingly ubiquitous 21st Century technology and data-analytics techniques used by technology-enabled organizations can be used by government regulators to make better and faster decisions to help deliver better results."

Along with the blog post, Bieron also links to three reports - one for Asia/Pacific, one for the EU and one for the US - each addressing payments regulation and suggesting a new approach to regulation that "will enable regulators to better achieve their goals, benefit consumers, and allow for a faster pace of business innovation."

For example, in the policy paper for the US, PayPal writes: "The regulatory landscape is frozen in an outmoded model for decision-making that is decades behind the times. New ideas and fresh thinking are required to thaw the ice." PayPal goes on to propose a new "Smart Governance Cycle" - detailed a multi-step cycle based on big data and careful analytics. The paper is a fascinating look at a whole new approach to understanding and adapting regulation to market forces while encouraging innovation in payments.

Just Make Payments Go Away...

I did a slide for a client last week that said in big letters that what consumers want is to "Make Payments Go Away."

This article titled "A Better Way to Settle Up" by Farhad Manjoo in Fast Company's November edition explains more about that concept.

Every restaurant meal you've ever had, at the greasiest spoon or the most rarefied temple of gastronomy, ends the same way--with a terribly outdated ritual that I like to call the payment dance.
Indeed!

Headline News from PaymentsNews.com - October 28, 2013

On Twitter:

On the web:

On the wires:

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join Glenbrook's Carol Coye Benson and Scott Loftesness for our Glenbrook Payments Boot Camp on December 10-11th in Palo Alto, California!
  • Glenbrook's Elizabeth McQuerry will be speaking on New Payments Regulation in Brazil at the International Money Transmitter Conference in Miami, Nov 4-7, 2013.
  • Join our mailing list for updates about Glenbrook events. Follow us on Twitter: @paymentsnews and @paymentsviews

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

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