Visa chief executive Al Kelly will hand over the reins at the credit card giant to Ryan McInerney, Visaâs current president and move to a position as executive chairman of its board. Under Kelly, who has been CEO for six years, Visa has increased its revenue by 90%, more than doubled the average daily number of transactions and grew its employee base by 85%, according to the companyâs figures. But the company is facing an increasing number of challenges, including new regulatory pressures, compliance issues and legal battles.
Marqeta has agreed to acquire two-year-old fintech infrastructure startup Power Finance for $223 million in cash, marking the first acquisition in the publicly traded companyâs 13-year history. About one-third of the purchase price is payable over a two-year period, subject to certain undisclosed conditions. And, if one undisclosed milestone in particular is met within the next 12 months, Marqeta said it will pay an additional $52 million for the startup, bringing the total acquisition price to $275 million.
FIS has cut 2,600 workers so far in its quest to slash expenses as part of a strategic review of the business, Bloomberg reported Thursday. The job cuts, which were made in recent weeks, amount to about 2% of the FIS workforce, according to Bloomberg, which cited an unnamed source for the report. Some 1,000 jobs eliminated were contractors, the news outlet said.
May require account to read. Thrive Capital, the investment firm founded by Joshua Kushner, is leading a potential investment in the payments provider Stripe at a valuation of $55 billion to $60 billion, down sharply from two years ago, two people with knowledge of the matter said. Stripe is aiming to raise roughly $2.5 billion, one of the people said. Thrive has committed $1 billion, said another person familiar with the situation, who requested anonymity because the talks are confidential.
American Express says it has a premium customer. Does that mean it should trade at a premium multiple? With a potential recession still looming, some lenders are talking about credit risk that might start to exceed levels seen before the pandemic. Not so for American Express. While on its quarterly earnings call last Friday, it said it anticipates write-offs to move higher in 2023 from unusually low levels last year, it is now currently reserving for credit losses representing 2.4% of total loans and card-member receivables.
PayPal said Tuesday it plans to lay off about 2,000 employees, or roughly 7% of its staff, making it the latest tech firm to announce significant job cuts in recent months amid broader economic uncertainty. In a memo to staff announcing the layoffs, PayPal CEO Dan Schulman referred to the âchallenging macro-economic environmentâ and said the company âmust continue to change as our world, our customers, and our competitive landscape evolve.â
The Fintech & Payments Advisory Network (TFPA), an international consultancy launched by proven fintech veterans, welcomes three new associate partners to its collective, deepening the real-world experience and geographical expertise that its clients can leverage for their business growth. Ricardo Calfat, Nick Barnes and Nick Dargan join TFPAâs 15 existing partners to share their extensive industry knowledge with its clients.
The firms have âfeet on the streetâ experience in over 30 countries and geographies, including the U.S., Canada, the UK, France, Brazil, Russia, China, the EU, Eastern Europe, sub-Saharan Africa, and Australia.
In the latest episode of throwing everything at the wall and seeing what sticks, Elon Musk's Twitter is reportedly working on becoming a payments platform. According to the Financial Times, which cites people familiar with the company's plans, Musk wants Twitter's users to be able to buy stuff on Twitter, but also to send money to each other. Despite Musk's self-professed love of cryptocurrency, the system will primarily be based on fiat payments, though crypto functionality could be added at a later stage.
Berkshire Hathaway Vice Chairman and staunch bitcoin skeptic Charlie Munger has called for the U.S. to follow in the footsteps of China and ban crypto. In an opinion piece in the Wall Street Journal, Munger attributed the rise of cryptocurrencies to a gap in regulation as crypto assets aren't currencies, commodities or securities. "Instead, itâs a gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity," Munger wrote.
Ingenico, a global leader in payments acceptance solutions and Splitit, the only white-label, card-based installment platform using existing consumer credit, announced a global strategic partnership to bring one-touch, no-interest, buy now, pay later capability to the physical checkout experience using PPaaS, Ingenicoâs innovative, cloud-based Payments-Platform-as-a-Service, and Splititâs Installments-as-a-Service solution.
Bed Bath & Beyond is closing an additional 87 stores, as the troubled home goods retailer seeks to consolidate its assets ahead of a possible bankruptcy filing. The company confirmed the closures in a statement, adding it was also closing all Harmon health and beauty store locations. "As we work with our advisors to consider multiple paths, we are implementing actions to manage our business as efficiently as possible," it said, adding that it is analyzing its store footprint "based on a variety of factors."
Starbucks has long had a large and loyal fan base, from PSL enthusiasts to secret-menu insiders. In November 2022, the company told investors that the Starbucks Rewards loyalty program had grown 16% in the last quarter alone, ballooning to 28.7 million active members in the United States. But the coffee giant is taking loyalty a step further: In December, it began ushering eager testers into the beta version of a Web3 rewards experience called Starbucks Odyssey, which will integrate NFTs into the brandâs loyalty offerings.
Cole Haan is deploying a new, open enterprise architecture. The New Hampshire-based footwear and accessories brand, owned by private equity firm Apax Partners, is implementing the microservices-based Aptos One platform. The enterprise solutionâs open, composable architecture will enable Cole Haan to quickly roll out new tools and services as needed. The retailer will also obtain one set of universal enterprise capabilities, which it will make available at all corporate touchpoints.
Observers have warned that an activist Consumer Financial Protection Bureau is likely to act on multiple fronts that involve the payments industry. Early Wednesday it released its latest proposal, a move to cut the $12 billion it estimates consumers pay annually in credit card late fees. While the proposal could benefit late payers, some experts warn it could also have consequences for cardholders and merchants alike.
The government has published proposals for crypto-asset regulation it hopes will "manage" the risks of the "turbulent industry". The sector has had a calamitous year, with assets collapsing in value by an estimated 75% from their peak of about $3 trillion in November 2021. Ministers estimate up to 10% of UK adults now own some form of crypto.
This nearly quadruples the country's previous record for cryptocurrency theft - $429m in 2021. The loot also made up 44% of the $3.8bn stolen in crypto hacks last year, which the firm called "the biggest year ever for crypto hacking". Experts have said the country, facing heavy sanctions, is turning to crypto theft to fund its nuclear arsenal.
The Federal Reserve raised short-term interest rates Wednesday by a quarter percentage point, bringing its benchmark rate to a new range of 4.50% and 4.75%, the highest level since October 2007. In its statement on Wednesday, the central bank acknowledged the slowdown in inflation as the Fed continues to assess the impact its interest rate hikes have had on consumer prices over the last year.
Digital commerce just passed the $1 trillion mark in a single year for the first time ever, according to Comscore. E-commerce hit $1.09 trillion in the U.S. in 2022, with the last quarter accounting for $332.2 billion, the analytics and measurement company said in an exclusive to Forbes. This doesnât include travel, which would likely add a few hundred billion dollars of revenue. A key driver? Mobile, which grew at twice the rate of desktop e-commerce.
Big Techâs disaster scenario just played out, and now the bounce back is beginning. Inflation is moderating, the Federal Reserve is relaxing, cost discipline is back, and expectations are so low theyâre getting easy to beat. Suddenly, the tech giants have momentum again. Already this year, Meta stock is up 51%, Amazon is up 31%, Alphabet is up 20%, Apple is up 20%, and Microsoft is up 10%. All are healthily beating the S&P 500, even with some muted earnings reports this week.
Fiserv, Inc., a leading global provider of payments and financial services technology solutions, has been named one of FortuneÂź âWorldâs Most Admired Companiesâąâ for 2023. This prestigious annual ranking identifies the organizations with the strongest reputations within their industries and across industry sectors. Fiserv was ranked second in the Financial Data Services category overall, receiving its top marks for Innovation and Financial Soundness, a proof point of the companyâs commitment to create value for clients and shareholders.
Elavon, a wholly owned subsidiary of U.S. Bank and one of the largest payments processors globally, is proud to be honored by TSG (The Strawhecker Group) in its 2023 Real Transaction Metrics Awards. Elavonâs Fusebox payment gateway was recognized as the yearâs Best Performing Gateway and took first place for Fastest Transactions and Highest Authorization Rate.
Square released its third annual Future of Commerce report, a comprehensive analysis of business ownersâ and consumersâ attitudes on the evolution of retail and restaurants. The report examines how these businesses are shifting as they consider whatâs worked, what hasnât, and how to prepare for the future. âSellers are optimistic for the future, but also taking action to improve sales channels and technology for consumers in 2023,â said Alyssa Henry, Head of Square.
Stripe, a financial infrastructure platform for businesses, has been selected by BMW of North America to power US vehicle preorders and online purchases of BMW extended warranties, maintenance, digital services, and more. The partnership arrives as automakers adopt new ecommerce tools for customers who increasingly expect digital convenience as part of their car-ownership experience. âOur primary focus at BMW is to create and provide the best premium customer experience for our owners,â said Marcus Casey, chief marketing officer, BMW of North America.
ACI Worldwide, a global leader in mission-critical, real-time payments software, today announced the expansion of the global reach of its industry-leading, real-time payments software solutions. ACI now powers 25 domestic and pan-regional real-time schemes across six continents â including nine central infrastructures â providing solutions to central banks, participant banks, fintechs and other payment service providers.
Worldline, a global leader in payments services, announces the extension of a partnership with ING Bank N.V., the Dutch international bank. Worldline will handle debit and credit card issuing and processing for ING across multiple countries, based on the signed agreement for multi-year period. Under the extended agreement, ING is outsourcing issuing processing operations to Worldline.
"We have spent the last two years building the most compelling commerce platform to help complex SMBs improve productivity, reduce costs, automate operations and use data driven insights to scale their business. We continue to be pleased with the growth we are seeing in this targeted customer base," said JP Chauvet, CEO of Lightspeed. "Our deliberate focus on this group can be seen in our results this quarter, with Customer Locations with annual GTV6 in excess of $500,000 growing 15% and those over $1 million growing by 19% year-over-year2."
Barclays is adapting its physical footprint in response to declining customer branch usage, opening semi-permanant banking pods in locations with high footfall, including shopping centres and retail parks. Barclays already has the largest network of alternative branch formats - Barclays Local - with 200 opened by the end of 2022. The bank says it will open an additional 70 in the first half of 2023.
VizyPay, an industry-disrupting payment processing fintech company with a mission to empower small town businesses with simple, reliable and transparent services, announces the overhaul of its VizyPOS app. The updates provide a facelift to the graphics, imagery, overhauling the Cart and Inventory for better usability and most importantly supplying a help center for users to connect with a customer support team.
