The Briefing on Payments
The latest news, trends and data in Payments
Payments News in Numbers
Apple Pay has recently expanded into Ukraine through a partnership with PrivatBank. This takes the total number of countries that Apple Pay is 19
present in to 27. Earlier in the year, PrivatBank introduced the very similar Google Pay.
Other banks in Ukraine are expected to introduce this service soon.
Pay is set to hit Poland and Norway.
Worldline, a subsidiary of Atos, agreed to acquire Switzerland-based firm SIX Payment Services for €2.3bn ($2.7bn).
The deal, pending regulatory approval, will increase Worldline’s headcount by 1,600 and it is expected that that it will increase Worldline’s merchant services business and financial services business by 65% and 12% respectively.
The number of merchants in the Netherlands that expect real-time payments to replace payment cards is all of them.
This is according to a report by ACI Worldwide and Ovum. Worldwide, 77% of merchants expect the same outcome.
82% of merchants in Asia were found to be the most positive about real-time payments improving their customer experience.
Also, 78% percent of merchants this year believed real-time payments to reduce costs, up from 57% a year ago. The number of merchants expecting real-time payments to enhance customer service increased to 78% in 2018 from 59% in the previous year.
Instagram had 800 million users at the end of 2017 and this number has increased as Instagram launches its payment service in the UK.
The feature had been under trial in the US for a year and has finally been set up in the UK.
Despite the Instagram app being firmly established on many UK mobile phones, the number of users is still rising – 63.9% of 15-24 year old online shoppers used Instagram in 2017 versus 57.6% the previous year, according to GlobalData’s E-retail survey.
Nearly three-quarters (73%) of New Zealanders utilise contactless payments, according to a study from Mastercard.
More than 1,000 New Zealanders participated in the study and found that 63% of respondents use ‘tap-and-go’ payments at least once a week. This is an increase of 8% year-on-year.
Mastercard noted that people aged between 25 and 34 years (millennials) are driving such payments, with about nine in ten utilising the contactless technology.
The proportion of New Zealanders who use the technology always or whenever they can was also found to have surged, as more than 36% people said they use it whenever they can.
The Key Moments in
Payments This Month
MUFG to launch blockchain payments
Mitsubishi UFJ (MUFG) aims to roll out a blockchain-enabled payments platform for micropayments.
The platform, powered by Akamai, is set for delivery in 2019 and will be able to process a million transactions per second and have the ability to finalise transactions within two seconds.
The bank believes there is also potential to further scale this processing ability to 10 million transactions per second.
PayPal snaps up iZettle
Digital payments giant, PayPal is buying Swedish payments start-up, iZettle for $2.2bn
The takeover comes less than three weeks after iZettle said it would list shares in Stockholm. The firm had been planning to raise more funds to expand its business. The takeover will enable iZettle to accelerate its international expansion including to the US.
PayPal will now have an in-store presence in 11 markets across Europe and Latin America.
The agreement was confirmed on Thursday by a spokesperson for PayPal.
Wells Fargo accelerates mobile experience with ‘Pay with Wells Fargo’
In an effort to improve mobile experience, Wells Fargo has added ‘Pay with Wells Fargo’ to its mobile app. Customers will be able to more easily access the aspects of the Wells Fargo Mobile app they frequently use.
The app will now have an option for customers to conveniently select their favourite payment features. The customer can pick their payment method even before signing into the app.
‘Pay with Wells Fargo’ is part of a longer strategy by the bank to improve the mobile banking experience. Aimed at meeting all banking needs, the app will make payments on-the-go even easier for the almost 22 million Wells Fargo customers.
Customers can now seamlessly select the payment feature they want to use and authenticate instantly to start sending payments, transfer money or make purchases through a digital wallet.
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.
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.
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.
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