The general concept behind BNPLâthat is, to buy that big screen TV in a series of smaller paymentsâis far from new. Just look at credit cards or layaway offered by department stores. Even early e-commerce movers seemed to recognize the opportunity of a buy-now-pay-later-like offering for the digital era a decade ago. In 2008, eBay bought a company called Bill Me Later for almost $1 billion (Its current owner, PayPal, has since rebranded the service as PayPal Credit).
What sets Affirm, Klarna, and the like apart is the ability for consumers to generally buy products interest free (unlike with a credit card) and right away (unlike on a layaway plan). Of course, itâs not an entirely risk-free endeavor for consumers. BNPL is still a line of credit that could influence credit scores and trigger debt collectors in certain cases, as some consumers are now finding out. âI do see it as a double-edged sword,â Sheridan Trent, a research analyst with The Strawhecker Group, told me. But it's not going away.
PayPal Holdings, the U.S. fintech company, announced an acquisition of Paidy, a Japanese buy now, pay later (BNPL) service platform, for approximately $2.7 billion (300 billion yen), mostly in cash, to enhance its business in Japan. The transaction completion, including the regulatory approval, is expected in the fourth quarter of 2021. After the acquisition, the Japan-based company will continue to operate its existing business and maintain the brand while the leaders, Paidyâs president and CEO Riku Sugie and founder and executive chairman Russell Cummer, keep their positions.
Looking to move further upmarket from the small sellers it started with, Square Inc. on Wednesday announced it is launching its Square Register point-of-sale system in Canada. Square is promoting the technology, which includes a screen facing the customer as well as one for the merchant, as suited to a time when customers and sellers alike want to maintain distance from each other. Itâs also pricing Register at $899 Canadian, compared to $799 for the U.S. market, at a time when the exchange rate would indicate a higher price in Canada.
Global Payments Inc., a leading worldwide provider of payment technology and software solutions, announced an agreement to purchase MineralTree, a leading provider of accounts payable automation and business-to-business (B2B) payments solutions, from an investor group led by Great Hill Partners, .406 Ventures and Eight Roads Ventures. MineralTreeâs software-as-a-service (SAAS) offerings automate key procurement processes, including invoice capture, coding and approval, and enable virtual cards and integrated payments options across a variety of key vertical markets to digitize payables for thousands of customers.
JPMorgan said Wednesday it plans to buy a majority stake of close to 75% in Volkswagenâs payments business. The U.S. banking giant said the deal would help it expand its digital payment capabilities and enter into the automotive industry for the first time. Over time, the two companies plan to develop Volkswagenâs platform to cover markets outside the automotive sector, JPMorgan said.
Amazonâs crew at Project Santos is developing an innovative point-of-sale (POS) solution for third-party retailers that is intended to compete with Shopify, PayPal, and others, Business Insider (BI) reported, citing an internal Amazon document the news outlet reviewed. The proposed POS can reportedly process transactions online and in physical stores and has the technological chops to provide data analytics for inventory and other business functions, per the internal document. The system also can offer Amazon checkout options, and links to the companyâs Prime services, palm identification system, and Flex delivery.
The price of Bitcoin on Tuesday crashed to its lowest in nearly a month, falling from $52,000 (ÂŁ37,730) to under $43,000 at one point. An opposition politician said the fall caused one of Latin America's poorest countries to lose $3m. The rollout of bitcoin in El Salvador was far from what President Nayib Bukele would have envisaged when he began his bold experiment. Platforms such as Apple and Huawei weren't offering the government-backed digital wallet, known as Chivo, and servers had to be pulled offline after they couldn't keep up with user registrations.
Mastercard has agreed to acquire blockchain analytics start-up CipherTrace, in the latest sign of how major companies are warming to cryptocurrencies. The payments giant said Thursday it entered into an agreement to buy CipherTrace for an undisclosed amount. Based in Menlo Park, California, CipherTrace develops tools that help businesses and law enforcement root out illicit digital currency transactions. The companyâs competitors include New York-based Chainalysis and London start-up Elliptic.
Five and a half years after being acquired by a private equity firm, personal finance software company Quicken is announcing that it is being acquired by another private equity firm. In April 2016, an affiliate of H.I.G. Capital acquired Quicken from Intuit Inc. for an undisclosed amount. Today, Menlo Park, California-based Quicken is announcing that Aquiline Capital Partners will be acquiring a majority stake in the company â also for an undisclosed amount.
Nikolay Storonsky, founder and CEO of Revolut, said his company was working on a checkout feature and the ability to let its customers to spread the cost of any purchase made using its cards. However, the feature is in early development and only likely to be trialled next year across some European markets. âSimply a button which you switch on and then your card becomes a buy now pay later product,â Storonsky explained.
Global card issuing platform Marqeta is continuing a partnership it has had with Australia-based Zip Co. for the past year and will keep powering the buy now, pay later (BNPL) company, according to a press release emailed to PYMNTS. Marqetaâs platform enables Zip to get payments products more quickly onto the market, the release stated. Customers can make multiple transactions via their Zip Pay accounts and repay their Zip balance with a single installment plan for a more streamlined overall experience.
Big-box stores dominate in the race for customer loyalty. Walmart has the most loyal customers in the United States, with a loyalty score of 3.22 according to a report from InMarket that identified the top 10 retailers in the second quarter of 2021 based on their customer loyalty (average return visits per customer). Walmart had a loyalty score of 3.22, followed by Fred Meyer (2.62), Meijer (2.58), Target (2.14) and Loweâs (2.04.) Rounding out the top 10 were The Home Depot (2.03), Costco Wholesale (1.93), Dollar General (1.92), Samâs Club (1.88) and Nordstrom (1.33). The average score for all retailers was 1.33.
A few years ago, established restaurant companies were creating new eateries to appeal to younger consumers. That trend hasnât slowed down, but now those spinoff brands exist in only cyberspace. Virtual brands are restaurants available only on third-party delivery apps. Their creators use existing restaurant kitchens to whip up orders from a menu that was designed for off-premise customers. Pizza, chicken wings and burgers are popular options because they all travel well and donât usually require extra equipment to make.
After launching it in Go stores and then bringing it to larger Fresh supermarkets, Amazon's cashierless "Just Walk Out" tech will soon arrive in two Whole Foods locations. The service, which lets you pick up goods from shelves and (yep) just walk out, is coming to new stores in Washington DC and Sherman Oaks, California next year, the company announced. "By collaborating with Amazon to introduce Just Walk Out shopping at these two Whole Foods Market stores, our customers will be able to... save time by skipping the checkout line," said Whole Foods co-founder John Mackey.
Clothing and clothing accessories stores are still missing 18.5% of their workforce as of July 2021, compared to a benchmark of employment numbers in February 2020, according to a new report. Thatâs the percentage change in employment among these retailers, after the U.S. was previously enjoying a historic high rate of employment before the pandemic in 2020. Retailersâalong with entertainment, travel, sports and transportation companiesâ represented some of the biggest job losses through the pandemic.
Cryptocurrency exchange Coinbase seems to have some issues with the Securities and Exchange Commission (SEC) over a planned feature that lets people lend cryptocurrency through its platform. In a Medium post on Tuesday, Coinbaseâs chief legal officer wrote that the regulatory agency threatened to sue the company if it launched the feature. Coinbaseâs CEO posted a Twitter thread on Tuesday evening saying that the SEC wasnât clear about what it wanted. According to Coinbaseâs CEO, Brian Armstrong, the company told the SEC about its new Lend feature as a courtesy but didnât anticipate pushback, based on his impression that similar features exist on other platforms.
The U.S. Securities and Exchange Commission warns against schemes targeting digital assets. Security experts say with social engineering attempts on the rise, individuals and organizations must remain vigilant against crypto-related scams or other "get rich quick" schemes. In its bulletin, the SEC's Office of Investor Education and Advocacy and Division of Enforcement's Retail Strategy Task Force says, "Fraudsters continue to exploit the rising popularity of digital assets to lure investors into scams, often leading to devastating losses."
May require account to read. The U.S. economy is facing a slowdown in September, rather than the takeoff once hoped for. Earlier this summer, many economists saw the week of Labor Day as the moment when the economic recovery would kick into high gear. Their expectation was that widespread vaccination would ease labor shortages. Schools and offices would reopen, which would mean a comeback for local businesses reliant on office workers. Travel would rebound. Stevie Nicks would be back on tour.
U.S. businesses are experiencing escalating inflation that is being aggravated by a shortage of goods and likely will be passed onto consumers in many areas, the Federal Reserve reported Wednesday. In its periodic âBeige Bookâ look at the nationâs economic picture, the central bank also reported that growth overall had âdownshifted slightly to a moderate paceâ amid rising public health concerns during the July-through-August period that the report covers.
Democrats and Republicans will start what could become a monumental game of chicken this month over raising the limit on U.S. government borrowing, as Congress attempts to avert an historic debt default. Leaders of the Democratic-led Senate and House of Representatives are expected to force votes to lift the $28.4 trillion debt limit in late September. The limit was technically breached on July 31 but is being circumvented by Treasury Department "extraordinary" steps.
Nuvei Corporation, the global payment technology partner of thriving brands, announced the acquisition of Paymentez LLC (âPaymentezâ), a leading payment solution provider in Latin America. Founded in 2011, Paymentez provides a breadth of payment solutions to merchants and financial institutions, including gateway, white-labeling, card acquiring and prepaid card options. Paymentez supports high-growth eCommerce verticals including online games, delivery platforms, mobility, transportation, sports, as well as other segments throughout Latin America.
Mastercard announced it has entered into an agreement to acquire Aiia, a leading European open banking technology provider offering a direct connection to banks through a single API, allowing its customers to develop and launch new digital solutions that meet the needs of everyday life, work and play. Open banking is democratizing financial services by putting consumers at the center of where and how their data is used to provide the services they want and need.
Financial technology leader FISÂź announced the appointment of former FIS and Worldpay executive Stephanie Ferris to its executive leadership team, reporting to Gary Norcross, FIS Chairman and CEO. Stephanie joined FIS on September 2, 2021 as Chief Administrative Officer. In this newly created position, Ferris will work in partnership with FIS business and corporate leaders including strategy, mergers and acquisitions and key strategic initiatives that are focused on efforts to enhance client and shareholder value.
NMI, a leading global full commerce enablement technology company, announced a significant new equity investment from New York-based global private equity and venture capital firm Insight Partners. Insight Partners joins existing investors Francisco Partners and Great Hill Partners. The company will continue to be led by Chief Executive Officer, Vijay Sondhi, and the current management team, who invested alongside Insight Partners, Francisco Partners, and Great Hill Partners.
Fiserv, Inc., a leading global provider of payments and financial services technology solutions, has entered into a first-of-its-kind collaboration with National Payments Corporation of India (NPCI), which leads the retail payments and settlement infrastructure in India with breakthrough products like Unified Payments Interface (UPI), Bharat Bill Payment System, and RuPay, to enable the launch of ânFiNiâ, a ready stack of services that fintechs and banks can use to issue RuPay credit cards.
Paysafe, a leading specialised payments platform, announced the launch of its new Paysafe Publishers marketplace, which will help global eCommerce merchants leverage the affiliate marketing channel to increase customer acquisition and foster new revenue-generating relationships. The launch will see Paysafe, which boasts two decadesâ affiliate marketing experience, support the growth of eCommerce businesses across multiple industries.
JCB International Co., Ltd., the international operations subsidiary of JCB Co., Ltd., and Checkout.com, the global payments processing platform, announces the next evolution of their partnership with the rollout of J/Secureâą2.0 which is compliant with EMVÂź 3-D Secure (EMV 3DS) to Checkout.comâs merchants in the UK. As Europeâs leading payment service provider for enterprises, Checkout.com is the first licensee partner in the UK to go live with J/Secureâą2.0, JCBâs authentication program for card-not-present transactions.
UATP is proud to be partnering with the world's largest provider of Bitcoin and cryptocurrency payment services, BitPay, to offer its Network the ability to accept payments quickly and easily in Bitcoin, Dogecoin, Ethereum, Litecoin and six other popular cryptocurrencies for travel. "Cryptocurrency continues to gain momentum as a safe and trusted payment option, especially for high-value purchases like travel. BitPay's partnership with UATP provides their customers with the inherent benefits of blockchain payments without having to handle, hold, or buy crypto themselves" said Stephen Pair, Co-Founder and CEO, BitPay.
Digital River, an experienced global commerce enabler for established and fast-growing brands, announced a new partner integration with Chargify, a leading billing and subscription management solution built specifically for B2B SaaS companies. Through its new Partner Integration Program, Digital Riverâs technology is natively integrated into the Chargify platform, enabling Chargify clients to seamlessly manage payments, taxes, and compliance requirements so companies can quickly and confidently enter new markets.
Nuula, a fintech company focused on small businesses, announced $120 million in new funding. The total is made up of $20 million in equity funding led by Edison Partners that will accelerate the brand's launch and drive adoption of the Nuula mobile app, and a $100 million credit facility provided by funds managed by the Credit Group of Ares Management Corporation ("Ares") that will provide scale to the app's integrated credit product.
bp ventures is investing âŹ10 million in Europeâs leading in-car digital payments provider, ryd. The company offers a convenient single digital payment solution for drivers, for services such as fuel purchases, electric vehicle (EV) charging and car washing, via its app or through integration with smart car systems. bpâs investment will help ryd strengthen its market-leading position, grow into new international markets, and further build its offering.
Paradigm, a leading provider of technologies for the building industry, announces the introduction of Paradigm Paymentsâą, a payment processing service specifically designed to help building professionals eliminate the unnecessary costs and complexity associated with payment processing. The Paradigm Payments solution allows contractors, distributors, dealers, and manufacturers to securely accept credit or debit cards and process checks in the field or in-store.
Apto Payments, a next-generation cards and payments company, announced its acquisition of challenger credit card startup, Vertical Finance. The move expands both Apto Payments' product offerings and team. Through the acquisition, Apto Payments will gain Vertical Finance's innovative credit card platform and rewards technology. Prior to the acquisition, Vertical Finance's credit platform matched consumers with high-quality boutique merchants and authentic rewards to enhance their lifestyle pursuits.
Leading dispute technology specialist, Chargebacks911, announces the exciting appointment of technology management leader, Brad Dillahunty, as Executive Vice President and Chief Product Officer (CPO) at Chargebacks911 and sister brand Fi911. Brad will drive the businessesâ global product development and strengthen operational structures at a time of unprecedented growth and opportunity, in his role as CPO.