In Data:
Payments News in Numbers
£18.9m
UK fintech Modulr has secured £18.9m in funding to develop its platform and expand into new products and markets.
Growth capital firm Highland Europe led the funding round, with participation from existing investors including Frog Capital, venture builders and Blenheim Chalcot.
The investment has taken Modulr’s total funding received to £53.3m, delivering on the fintech’s commitment to match the £10m it was awarded from the Capability and Innovation Fund in August.
50
Customers aged 50 and above were Paypal’s fastest-growing segment from March to April, as Covid-19 forced more elderly people to try their hands at electronic payments.
Stay-at-home shutdowns and the perceived risk of handling cash are among the reasons why the most covid-vulnerable people are increasingly opting for digital transactions.
The torrent of older customers was strong enough to push Paypal’s total volume back to pre-covid levels, according to Paypal CFO John Rainey.
8x8
Cloud communications platform 8×8 has chosen GoCardless to provide direct debit as a payment method to 8×8 customers across the globe.
8×8 was looking to transition its direct debit offering to an online solution that would manage payments across multiple bank debit schemes and countries. The aim was to increase their visibility within the business and minimise payment failure rates.
8×8 initially turned to GoCardless to collect its payments from customers in the Bacs and SEPA direct debit schemes. Following this, the company extended the relationship to include payments from Canada, the US, Australia and New Zealand.
£35m
British fintech startup Fly Now Pay Later has raised £35m in Series A equity and debt funding to support the launch of its payments app.
The funding round was led by an asset management firm Revenio Capital as well as Shawbrook Bank and BCI Finance.
Fly Now Pay Later says it will use the funds to improve its product offering and help European expansion.
$73.5m
Alipay operator Ant Financial has brokered a deal to purchase a minority stake worth $73.5m in Myanmar-based fintech firm Digital Money Myanmar (Wave Money).
Wave Money is a mobile payments joint venture between Norwegian telecoms company Telenor Group and local corporation Yoma Group. As per the terms of the agreement, Wave Money will issue fresh shares to Ant Financial.
Wave Money intends to leverage Ant Financial’s know-how in developing mobile payments platform and digital financial services in order to boost its technological capabilities.
Top Stories
The Key Moments in
Payments This Month
FCA proposes three-month extension to mortgage payment holidays
The Financial Conduct Authority (FCA) has today announced proposals which will continue support for customers struggling to pay their mortgage due to Covid-19.
The proposal outlines the options firms will be required to provide customers coming to the end of a payment holiday, and those who are yet to request one.
For customers yet to request a payment holiday, the time to apply for one would be extended to October 31. In addition, the proposal encourages firms to continue offering support for those struggling to meet payments. This could include extending a payment holiday by a further three months.
Facebook, Instagram launch online stores called Facebook Shops
Facebook and Instagram have introduced a new way of selling online that does not involve Amazon.
In their biggest push yet into online shopping, the pair of tech companies are allowing businesses to turn their Facebook and Instagram pages into online storefronts for their fans and followers.
This big new feature for online merchants is called Facebook Shops. Facebook and Instagram are pitching it to small businesses as a new option for struggling brick-and-mortar shops to sell to customers online.
Wirecard taps Varengold Bank to assist fintechs looking to scale up
Germany’s Wirecard has partnered with Varengold Bank to assist ambitious fintechs looking to scale their operations.
Through the partnership, fintechs will have access to capital to refinance their loan portfolios, and a set of payment solutions.
As part of the offering, Varengold Bank customers will have access to Wirecard’s banking-as-a-service expertise. Meanwhile, Wirecard’s customers will have access to Varengold Bank’s capabilities in creating financing solutions.
PPRO enters Japanese market with Konbini and Pay-easy integration
Payments platform PPRO has entered the Japanese e-commerce market after adding popular payment methods Konbini and Pay-easy to its portfolio.
The move by PPRO marks the company’s commitment to further expand in the APAC region. To date, PPRO’s platform has 150 payment methods, including established APAC players such as Alipay, WeChat Pay, UnionPay and GrabPay.
hrough PPRO’s integration with Konbini, customers can shop online and pay cash in-store at over 50,000 convenience stores across the country. These include 7-Eleven, Lawson, FamilyMart, Ministop, Seicomart and Daily Yamazaki.
Visa hooks up with Safaricom’s M-Pesa to push ecommerce
Visa and Safaricom, which is Kenya’s largest telecom and operator of M-Pesa, have announced a partnership on payments and tech to boost ecommerce in East Africa.
The alliance will make available M-Pesa’s extensive financial services network in the region to Visa’s global merchant and card network across 200 countries.
The companies will also collaborate “on development of products that will support digital payments for M-Pesa customers.” The parties say, the partnership, which is subject to regulatory approval, will allow them to join hands facilitate e-commerce and increase digital inclusion in the region.
Automation in Action
The latest companies to use AI to streamline their workforce
Pandora Automates 5% of Workforce
Music streaming service and Spotify rival Pandora has announced that it is laying off about 5% of its workforce in a bid to save around $45m a year. Jobs across several departments are being automated, including advertising, marketing and investment, as part of a wider restructuring to the company in a bid to maintain its presence in the streaming market.
Source: TechCrunch
Amazon Restructuring Sees Key Tasks Automated
Online retail giant Amazon has cut hundreds of jobs at its Seattle headquarters as the company reorganises to remove older departments and shift a growing number of tasks onto AI-based software. The company, which is enjoying strong growth, is reportedly restructuring to support future ventures, cutting some operating costs in the process.
Source: Time
Driverless Trucks Replace Oil Sands Jobs
Canada-based Suncor Energy has announced the layoff of several hundred workers as the company introduces autonomous haul trucks into its Alberta-based oil sands operations. The layoffs, which have prompted strong reactions from unions, are likely to be only the start, with Suncor planning to build a fleet of over 150 driverless trucks over the next six years.
Source: Global News
India Sees IT Layoffs in Tens of Thousands
Once one of the biggest employment sources in the country, India’s IT industry saw layoffs totalling over 56,000 in 2017, and is expecting to see further job cuts in the coming year. The layoffs have been largely due to digitisation and automation, which have dramatically reduced the number of workers required to maintain current operational levels.
Source: Quartz