Game-Changing Payment System: U.S. Federal Reserve's Modernization Plan!
Connecting the dots in payments...
Connecting the dots in Payments...
Hi there, you fellow Payments Enthusiast!
Welcome to this fresh newsletter, a dedicated Payments bulletin packed with Digital Payments and PayTech-related news!
It’s nice meeting you and I look forward to the insights and connections we’ll get by interacting here. Don’t be shy; share your ideas, vision and knowledge to keep improving this newsletter!
?? This Weeks Takeaway:
Fed launches long-awaited instant payments service
??What happened?
·???????The U.S. Federal Reserve has finally launched its long-awaited “FedNow” service, an Instant Payments system;
·???????The service will aim to modernize the country's payment system by eventually allowing everyday Americans to send and receive funds in seconds, 24 hours a day, seven days a week;
·???????FedNow has been in the works since 2019 as the biggest upgrade to the U.S. payments system in a half-century.
?? Why is this relevant?
·???????FedNow will seek to eliminate the several-day lag it commonly takes cash transfers to settle;
·???????Furthermore it will bring the U.S. in line with countries including the United Kingdom, India, Brazil, as well as the European Union, where similar Instant Payment services have existed for years;
·???????The service will compete with private sector real-time payments systems, including The Clearing House's RTP network, and was initially opposed by big banks who said it was redundant;
·???????But many have since agreed to participate on the basis FedNow will allow them to expand the services they can offer clients;
·???????The Fed said in a statement that 35 banks and credit unions were currently utilizing the service, including community banks and large lenders like JPMorgan Chase, Bank of New York Mellon, and US Bancorp;
·???????It’s worth mentioning that also Dutch payments giant Adyen, as a European FinTech, has secured a spot among the inaugural batch of 35 financial institutions permitted to use FedNow;
·???????FedNow will also compete with peer-to-peer payments services like Venmo or PayPal, but unlike those services, which act as intermediaries between banks, payments made via FedNow will settle directly in central bank accounts;
·???????Brazil’s record-breaking account-to-account payment method Pix has been a source of inspiration for the introduction of FedNow;
·???????The strong local adoption rate of payment methods as PIX or Dutch real-time payment method iDEAL, who both settle banktransfers in a few seconds assuring the immediate availability of the funds to the final beneficiary (e.g. merchants), proves there can be room for an alternative payment solution;
·???????The burning question remains: will PIX be a blueprint for the U.S. market and is FedNow gonna change the dominance of cards?
Contribute to the knowledge of our payments community, by sharing your thoughts on the matter below??
?? Read the full release on the debut of the FedNow payments rail over here
??Any other notable things happened in Payments?
?? Shopify expands into credit cards in co-op with Stripe , and pushes further into the FinTech space
I hope these quick bites have brought you up to speed again, and let’s keep a close eye on ‘Payments’ for the week to come..;-)
Cheerio and until the next,
Wouter & Marcel
Onwards to the other payments news!
REPORT
But why have business and consumer adoption of payments been relatively slow thus far? What has been built and what is missing?
?? NEWS HIGHLIGHT
The commerce giant announced today that it is offering Shopify Credit, a business credit card designed exclusively for its merchants.
The new product marks Shopify’s first pay-in-full business credit card, said Shopify President Harley Finkelstein. It is powered by Stripe and it is issued by Celtic bank, “and accepted everywhere Visa is,” he added.
?? SPONSORED CONTENT
The Integrated solutions for startups and SMEs, with more than 45k merchants, achieving more than 1 million transactions per day worth $11 million.
?? ARTICLE
领英推荐
???????? ???????? ???????? ?????????
Peer-to-peer payment services in the private sector like Venmo or PayPal act as intermediaries between banks, so we need to leverage payment schemes for clearing and Fed systems for settlement. However, FedNow can directly settle the transactions in central bank accounts.
Australia’s dalliance with buy now pay later services appears to be unravelling, with new consumer payments data revealing a dramatic slide in demand for the controversial payments method.
When it comes to fintech in South Asia, India has long dominated, whether in terms of overall investment, unicorns, or the broader ecosystem. While India will no doubt remain the biggest player in the region for the foreseeable future, its neighbors have an increasing number of market opportunities.
?? ?? BLOG
While Twitter has been drawing attention for recent restrictions to features for non-subscribers, as well as the launch of Instagram’s rival product Threads, another major development has also occurred for Twitter: the receipt of its first US Money Transmitter Licenses.
??INSIGHTS
Deal count also declined, dropping by 14% QoQ to 148.
NOW, ON TO THE SUMMARY OF LAST WEEK'S?NEWS
?? PAYMENTS HIGHLIGHTS
?? Form3 completes FedNow certification .
?? Worldpay takes the wraps off turnkey 'Revenue Boost' package .
?? REGIONAL HIGHLIGHTS
UK ????
Viva Wallet now enables UK merchants to seamlessly and securely accept in-person contactless payments with Tap to Pay on iPhone and its Viva Terminal iOS App.
EUROPE ????
TrueLayer launches Payment Links for A2A payments via open banking . To use payment links, a customer scans a QR code or clicks an online link which takes them straight to their online bank accounts to make the payment directly to the business.
Mollie announces a new integration and joint marketing effort with Klaviyo , a marketing automation and customer data platform that drives revenue growth for businesses of all sizes.
USA ????
Amazon will let shoppers pay with their palms at all Whole Foods stores by the end of the year. Amazon One is a biometric technology that lets users enter and pay for items at stores by placing a palm over a scanning device .
LATAM
Brazil's Pix continues its runaway success, with more transactions made using the instant payments platform in the first quarter than credit and debit cards combined .
Nubank teams up with Casas Bahia to offer a new in-app shopping experience . Nubank customers can now shop at Casas Bahia with exclusive discounts and benefits without leaving Nu's app.
ASIA
Cashfree Payments launches 'BNPL Plus'; this enables businesses to increase the visibility of affordable and flexible payment options to their customers .
PayPay launches offline payment functionality . With this new function, users will be able to make payments with both PayPay Balance and PayPay Atobarai (Pay Later) when there are network outages.
Paytm revenue climbs 39% as mobile payments become more mainstream . Paytm’s loan distribution business revenue leaped 93% year over year as the company continued to scale the business.
Simpl announced the introduction of its innovative Checkout offering, Simpl Pay After Delivery (SPAD) to enhance trust and convenience for millions of customers across the country .
AUSTRALIA ????
Grow Finance partners with Pismo to issue new Mastercard credit card for SMBs in Australia. This new offer will give business owners better cash flow, management and capital to help them improve their businesses .
Airwallex Australia and New Zealand region delivers strong growth momentum with 115% revenue increase YoY . The progress comes as Airwallex delivers global revenue growth of 120 percent YoY and global transaction volume growth of 77 percent YoY.
MIDDLE EAST
MOVERS AND SHAKERS
Brite Payments announces two new appointments to its C-suite . The Swedish fintech has brought on board Alexander Kassai as COO and Fredrik Str?mqvist as CFO.