Uber Says It’s Having Some Success in Reducing Payment Card Costs

Ride-sharing leader Uber Technologies Inc. reported Thursday that it’s had some success in reducing payment card acceptance costs, though it didn’t …

Uber didn’t disclose card-acceptance costs in its latest financial report, but Digital Transactions News estimates the bills total at least $1 billion a year. That estimate is based on figures from the registration statement Uber filed ahead of its May initial public offering of stock. The document said Uber paid $749 million in credit card processing fees in 2017, up 62% from $461 million in 2016. While the filing didn’t give 2018 acceptance figures, it did say 87% of Uber’s gross bookings last year were on credit or debit cards.

Next up for Uber in the payments area is “testing, broadening out some of the capabilities, particularly in Latin America,” Chai said without being specific. The goal is to give drivers options to operate more frequently and to reduce cash payments in some markets, particularly Brazil.

Anything Uber can do to reduce expenses will be welcomed by its top brass and investors in light of the $5.24 billion loss the company reported for the second quarter versus an $878 million loss a year earlier. Though much of the recent red ink is attributable to IPO expenses, including $3.9 billion of stock-based compensation costs and a $298 million “driver-appreciation” award, Uber still finds operating profitability elusive.

Uber reported $15.8 billion in second-quarter gross bookings, up 31% year-over-year. Uber’s bookings typically come through its mobile app. Revenue increased 14% to $3.17 billion. The company said it had 99 million active customers who used its ride-sharing, other mobility options, or the Uber Eats restaurant-delivery service at least once a month in the second quarter, up 30% from 76 million a year earlier. Uber drivers made 1.68 billion trips in the second quarter, a 35% year-over-year increase from 1.24 billion.

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    Verrency and Coinify partnership a ‘game changer’

    By partnering with Coinify, Verrency is now able to enable banks to offer their customers virtual currency and token usage.” And the use of existing …

    Verrency and Coinify are teaming up to enable customers to spend virtual currency via banks’ existing payment cards.

    Consequently, banks can offer customers the ability to use virtual currency at any merchant.

    Specifically, the partnership empowers banks utilising Verrency’s middleware platform to integrate virtual currency funding sources and digital wallets. Moreover they can do so within their existing payments rails.

    At the same time, it avoids the need for customers to use specially issued prepaid or debit cards.

    Instead, customers can make payments anywhere using virtual currency via existing payments products, including their physical cards and digital wallets.

    The service uses Verrency’s high-performance value-added payments technology layer. And so a bank can route payments to different funding sources authorised by the bank. This includes custodial or non-custodial wallet containing digital assets.

    Coinify supports the selection and connection of the wallet infrastructure, which may be either internal or external to the bank.

    Verrency and Coinify partnership a ‘game changer’

    Verrency CEO David Link says that the partnership is a game changer. In particular, it will increase the utility of token-based assets among major financial institutions.

    “Virtual currencies are transitioning in the next few years from being speculative investments into a smaller number of mainstream assets.

    “This will see more government or fiat-backed stable tokens, or even tokens simply as a payment element. So it is critical that banks have the technology in place to actually allow the usage of such virtual assets.”

    He adds that it is crucial that this runs across bank’s consumer-centred legacy payments rails. Mainstream usage of tokens or virtual assets will not occur by connecting the merchant-side of the equation.

    “It simply will take too long to achieve ubiquity, without which there will be no significant usage. By partnering with Coinify, Verrency is now able to enable banks to offer their customers virtual currency and token usage.”

    And the use of existing debit and credit cards means that banks avoid costly infrastructure overhaul.

    Verrency capital raising

    Payment innovation fintech Verrency is headquartered in Melbourne.

    Verrency’s API platform provides an overlay to legacy infrastructure. This enables banks to upgrade their customer offerings with digital services including auto-rounding, real-time budgeting notifications and instant loyalty rewards.

    In June, Verrency raised A$10m in funding ahead of planned international expansion.

    Verrency clients include Emirates NBD and Australian digital challenger Volt.

    Virtual currency payment provider Coinify is headquartered in Denmark.

    2e83c1df591eac268536f94801809666f6703c8f - Verrency and Coinify enable virtual currency spend at any merchant

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    Verrency and Coinify Partner to Enable Bank Customers to Spend Virtual Currency at Any …

    Global payment innovation leader Verrency, and Coinify, a leading virtual currency payment provider, have today announced a new partnership …

    MELBOURNE, Australia and COPENHAGEN, Denmark–(BUSINESS WIRE)–Aug 8, 2019–

    Global payment innovation leader Verrency, and Coinify, a leading virtual currency payment provider, have today announced a new partnership enabling banks to securely offer their customers the ability to use virtual currency for payments at any merchant around the world.

    The partnership will empower banks utilising Verrency’s middleware platform to integrate virtual currency funding sources and digital wallets with their existing payments rails, without the need for customers to use specially issued prepaid or debit cards. Instead, banks can offer their customers the ability to make payments anywhere using virtual currency via their existing payments products, such as their physical cards and digital wallets.

    The service works by using Verrency’s high-performance value-added payments technology layer to enable a bank to easily route payments to different funding sources authorised by the bank, such as a custodial or non-custodial wallet containing digital assets. Coinify supports the selection and connection of the wallet infrastructure, which may be either internal or external to the bank.

    Verrency CEO David Link, who was also appointed as an advisor to Ripple in early 2016, said the partnership is a gamechanger for the beginning of increased utility of token-based assets among major financial institutions.

    “The rapid growth in consumer interest and ownership of virtual currency assets and the rise of virtual trust technologies has been a key trend for the payments sector as a whole over the last decade,” Mr Link said. “As virtual currencies transition in the next few years from being speculative investments into a smaller number of mainstream assets – which will see more government or fiat-backed stable tokens, or even tokens simply as a payment element – it is critical that banks have the technology in place to actually allow the usage of such virtual assets across their existing consumer-centered legacy payments rails. Mainstream usage of tokens or virtual assets will not occur by connecting the merchant-side of the equation – it simply will take too long to achieve ubiquity, without which there will be no significant usage.”

    “By partnering with Coinify, Verrency is now able to enable banks to offer their customers virtual currency and token usage via their existing debit and credit cards without engaging in a costly infrastructure overhaul.”

    “Coinify is honoured to partner with Verrency and connect our two platforms, which holds a huge potential for crypto adoption” said Mark Højgaard, co-founder and CEO of Coinify. “Verrency’s platform that can easily integrate third parties with the existing banking payments infrastructure is a potential breakthrough for the future space of digital currency and mainstream token usage, where established technology titans, such as Facebook’s Libra project, are beginning to explore the possibilities.”

    Verrency’s platform is a high-performance bank-grade technology layer and API platform that fits on top of a processor’s, bank’s or digital wallet’s existing infrastructure, enabling them to rapidly deliver enhanced services and products around the moment of payment without changing their existing technology.

    The partnership sees Coinify join Verrency’s V+ partner ecosystem, which facilitates collaboration with Fintechs and enables a nearly endless set of hyper-personalizable services including redemption of rewards, facilitation of disbursements, rounding up of payments to savings or charitable destinations, access to installment credit at point of sale, facilitation of ‘real-time’ sandbox environments, and many more.

    This announcement comes as Facebook’s proposed virtual currency, Libra, has reinvigorated discussion around the potential for virtual currencies and fiat-backed tokens to become a more mainstream part of global payments infrastructure.

    About Verrency

    Verrency empowers banks and other financial institutions to quickly, cost-effectively and reliably deliver innovative new products and services to consumers and business partners around their most important interaction – the moment of payment. Verrency’s high-performance bank-grade technology layer works behind the scenes to enable a nearly endless range of value-added services for a bank’s customers quickly and easily without major changes to existing payments infrastructure or the need to integrate to point-of-sale systems. Verrency also enables rapid connection to third-party services via its FinTech ecosystem with little to no integration. For more information, see www.verrency.com.

    View source version on businesswire.com:https://www.businesswire.com/news/home/20190808005279/en/

    CONTACT: For More Information:Verrency Danya Al-Qattan

    Sard Verbinnen & Co

    Dal-Qattan@sardverb.com

    +1 212 687 8080Ron Low

    Sard Verbinnen & Co

    Rlow@sardverb.com

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    JCostello@gracosway.com.au

    +61 424 096 770

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    INDUSTRY KEYWORD: TECHNOLOGY FINANCE BANKING PROFESSIONAL SERVICES SOFTWARE RETAIL ONLINE RETAIL

    SOURCE: Verrency

    Copyright Business Wire 2019.

    PUB: 08/08/2019 03:00 AM/DISC: 08/08/2019 03:01 AM

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    Stripe Expands To Latin America, Will Open Mexico City Office

    It’s a popular choice for venture capitalists, and it has a valuation of $22.5 billion, with investors like Tiger Global, Andreessen Horowitz, Peter Thiel, …

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    Payments startup Stripe has announced that it’s opening up an office in Mexico City to take advantage of opportunities for growth in the Latin American region, according to a report by CNBC.

    Stripe said it wants to get engineers from the area and take advantage of the fast-growing mobile payment and eCommerce sectors.

    Stripe was started in San Francisco, and it competes with Square and Adyen to help businesses facilitate payments over the internet.

    It’s a popular choice for venture capitalists, and it has a valuation of $22.5 billion, with investors like Tiger Global, Andreessen Horowitz, Peter Thiel, Elon Musk, Google’s venture outfit Capital G, Sequoia Capital, Kleiner Perkins and other notable names in the space.

    Stripe Chief Business Officer Billy Alvarado said that the activity in the region made the move an easy choice.

    “Our goal is to make sure that the internet works the way it was intended to — it should be global, and it should be borderless,” Alvarado said. “There’s a very rich ecosystem for us in Latin America.”

    Softbank has also been making moves in the region, and it recently said it was going to use a $5 billion fund to invest across Latin America.

    Stripe has recently been expanding all over the globe, in places like Estonia, Poland, Greece, Lithuania, Latvia and Malaysia.

    Stripe will work with startups in South and Latin America, it said, and also with legacy companies like Visa, Mastercard, American Express and CitiBank. Stripe was founded in 2010 by two Irish brothers named Patrick and John Collison, who got the idea for the company while attending Harvard and MIT. It was recently announced that former Google Cloud CEO Diane Greene was joining the company’s board.

    “We really want to lean into global commerce, and this is central to building an internet platform for economic progress,” Alvarado said. “There’s no question that there are strong headwinds.”

    Edging Out Ripple: US Fed Plans To Develop A Faster Payment Solution For US Banks

    The U.S Federal Reserve seems to have taken the challenge posed by cryptocurrency when it comes to faster payments. It has just announced it will …
    Edging Out Ripple: U.S Fed Plans To Develop A Faster Payment Solution For U.S Banks

    The U.S Federal Reserve seems to have taken the challenge posed by cryptocurrency when it comes to faster payments. It has just announced it will be developing a faster payment system, FedNow, that will enable much faster payment between American Banks. The service is intended to facilitate cross-border payments, not just domestic.

    According to an official publication on the project’s website, the decision to create the real-time gross settlement network for Fed banks became necessary considering public opinion on the participation of the Fed in payment services.

    The FedNow Service is intended to advance public policy goals for faster payments and to help support the modernization of the nation’s payment capabilities. To accomplish these goals, the FedNow Service will enable financial institutions’ provision of end-to-end faster payment services and, in combination with private-sector real-time payment services, provide infrastructure to promote ubiquitous, safe and efficient faster payments in the United States,” the announcement read.

    A Long Dream Come True

    The Fed has not been very vocal about the issue of payments but it has evidently been considering it for a while.

    It even has a Twitter account dedicated to faster payments, improved efficiency project that was created in 2014. The final decision to create such a payment system as FedNow is just the fulfillment of a long-standing dream.

    Ripple Being Rivaled?

    Ripple has become recognized as the lead cross-border payment solution provider. Its role in remittance settlement has been acknowledged and is currently used in several countries.

    What sets Ripple apart from other blockchain projects is that it works with traditional financial institutions rather than as a rival that is out to replace the existing system as cryptocurrency projects have been perceived.

    However, with the Fed on the verge of launching its own payment system, Ripple may be facing some serious competition, especially because its payment network Ripplenet uses a cryptocurrency XRP for liquidity, which the government has not been able to accept yet.

    Could it be that the government is actually out to edge Ripple out of the remittance settlement business?

    What’s Your Thought On This?, Let Us Know In the Comment Section Below.


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