Digital Payments Materialization & Beyond

June 8, 2022 | 9 views

Digital_Pay_ments
The non-cash payments typically constitute digital payments. The global payment landscape is rapidly changing and offers newer innovative solutions to retail and wholesale customers. As customers adopt these payment solutions, there is an increase in payments volume and value worldwide. Over the last few years, the global payments revenue has been growing consistently at 6-8% across geographies.

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Scotiabank

Scotiabank is Canada’s international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia...

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Are Asian Nations All Set to Kick off CBDCs? Know Here!

Article | July 21, 2022

Contents 1. Say Hi to the Future 2. Digital Currencies: Types and Companies Involved 3. Why Are CBDC(S) Becoming The Talk of The Town? 4. Are Asian Nations Well On The CBDC Track? Say Hi to the Future! CBDCs, or Central Bank Digital Currencies, are the future of transaction modes and an excellent alternative to cash and private digital money. As the name suggests, CBDCs are digital tokens similar to cryptocurrencies, as both use blockchain technology. However, the significant difference lies in their modes of regulation. While cryptocurrencies are decentralized and highly volatile, CBDCs are regulated directly by a country’s central bank and, thus, are pretty transparent and stable for a financial system. Digital Currencies: Types and Companies Involved Cryptocurrency, Stablecoins, and Central Bank Digital Currencies (CBDC) are the three main digital currencies. Cryptocurrency grew in popularity because it was inexpensive and available in various currencies. Furthermore, its decentralized nature eliminated the role of banks in traditional money transfers, as they acted as intermediaries and thus charged for this. However, with the introduction of cryptocurrencies, the network members acted as intermediaries in the blockchain, and as such, the compensation got minimal. Here’s a list of the top cryptocurrency companies that offer enhanced data security: Advanced Micro Devices: It is an American multinational semiconductor company based in Santa Clara (California). It offers the best combination of CRU and GPU technologies to make faster and more secure blockchain transactions. Alpha Point Corporation: AlphaPoint is a white-label software company powering crypto exchanges worldwide. Its award-winning blockchain technology has helped over 150 clients in 35 countries discover and execute their blockchain strategies since 2013. Intel: By pushing forward in fields like AI, analytics, and cloud-to-edge technology, Intel’s work is at the heart of countless innovations. However, over time, stablecoins gained attention due to their stable nature. These are also cryptocurrencies backed by other cryptocurrencies, fiat currencies, commodities, etc. As suggested by its name, this backing system for stablecoins has been implemented to keep their prices steady and avoid fluctuations altogether. Some of the famous companies dealing in stablecoins include: Gemini: Gemini Trust Company, LLC is a next-generation cryptocurrency exchange and custodian that allows customers to buy, sell, stake, and store digital assets such as Bitcoin and Ether. OKCoin: It is one of the world’s largest and fastest-growing cryptocurrency exchanges. The company helps millions of people buy and sell Bitcoin, Ethereum, Miamicoin and many other crypto assets daily. ConsenSys: It is a leading Ethereum software company that enables developers, enterprises, and people worldwide to build next-generation applications, launch modern financial infrastructure, and access the decentralized web. Why Are CBDCs Becoming the Talk of the Town? Central Bank Digital Currencies are likely to gain much traction as they enable faster and smoother transactions, which are also very safe and secure. Since CBDCs do not involve holding a bank account, this concept will probably be more popular among non-banking individuals. With the recent collapsing examples of commercial banks, CBDCs have a higher chance of survival since the latter involve linking customers’ funds directly to the central bank. CBDCs also promise transparency, as all their transactions are recorded on a digital ledger, enabling authorities to detect fraud and other illicit activities. Are Asian Nations Well on the CBDC Track? Some CBDCs are in the pipeline, while the rest are at different stages of progress in many Asian nations, but none have launched yet! However, CBDCs are picking up steam in Asia. This region is home to many emerging markets that are quick to adapt to new technologies and keen to extract more benefits from innovations. CBDCs are mainly of two types, namely, Retail and Wholesale. While the former (CBDC-R) involves transactions by individuals and businesses, the latter (wCBDC) is more into institutional financial activities or transactions from one bank to another. Coming back to Asian countries and how they are doing with digital currency, one can design for both cases or just one, depending on the country's needs. For example, China and Thailand kicked off both models, while South Korea and Russia followed the CBDC-R model. As per a report from the Atlanta Council, Asian nations such as India, Japan, Indonesia, and Bhutan are at the development stage in both models. Similarly, Thailand and China are in the pilot phase of implementing both models. Meanwhile, nations in the development phase of implementing only the Retail CBDC include Iran, Israel, Lebanon, Turkey, and Cambodia. Besides, Saudi Arabia, UAE, Malaysia, and Singapore are in the pilot phase of the Wholesale CBDC. Meanwhile, nations in the research phase include Georgia, Kuwait, Palestine, Pakistan, and the Philippines. Nevertheless, North Korea is still in inactive mode.

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FINANCIAL MANAGEMENT

Are Asian Nations All Set to Kick off CBDCs? Know Here!

Article | June 24, 2022

Say Hi to the Future! CBDCs, or Central Bank Digital Currencies, are the future of transaction modes and an excellent alternative to cash and private digital money. As the name suggests, CBDCs are digital tokens similar to cryptocurrencies, as both use blockchain technology. However, the significant difference lies in their modes of regulation. While cryptocurrencies are decentralized and highly volatile, CBDCs are regulated directly by a country’s central bank and, thus, are pretty transparent and stable for a financial system. Why Are CBDCs Becoming the Talk of the Town? Central Bank Digital Currencies are likely to gain much traction as they enable faster and smoother transactions, which are also very safe and secure. Since CBDCs do not involve holding a bank account, this concept will probably be more popular among non-banking individuals. With the recent collapsing examples of commercial banks, CBDCs have a higher chance of survival since the latter involve linking customers’ funds directly to the central bank. CBDCs also promise transparency, as all their transactions are recorded on a digital ledger, enabling authorities to detect fraud and other illicit activities. Are Asian Nations Well on the CBDC Track? Some CBDCs are in the pipeline, while the rest are at different stages of progress in many Asian nations, but none have launched yet! However, CBDCs are picking up steam in Asia. This region is home to many emerging markets that are quick to adapt to new technologies and keen to extract more benefits from innovations. CBDCs are mainly of two types, namely, Retail and Wholesale. While the former (CBDC-R) involves transactions by individuals and businesses, the latter (wCBDC) is more into institutional financial activities or transactions from one bank to another. Coming back to Asian countries and how they are doing with digital currency, one can design for both cases or just one, depending on the country's needs. For example, China and Thailand kicked off both models, while South Korea and Russia followed the CBDC-R model. As per a report from the Atlanta Council, Asian nations such as India, Japan, Indonesia, and Bhutan are at the development stage in both models. Similarly, Thailand and China are in the pilot phase of implementing both models. Meanwhile, nations in the development phase of implementing only the Retail CBDC include Iran, Israel, Lebanon, Turkey, and Cambodia. Besides, Saudi Arabia, UAE, Malaysia, and Singapore are in the pilot phase of the Wholesale CBDC. Meanwhile, nations in the research phase include Georgia, Kuwait, Palestine, Pakistan, and the Philippines. Nevertheless, North Korea is still in inactive mode.

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CORE BANKING

Why Payments-as-a-Service is the first choice for FIs

Article | July 13, 2022

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

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BIG TECH IN FINANCE: A DEEP DIVE INTO THE FUTURE OF FINTECH

Article | February 10, 2020

The following article looks at Big Tech and its impact on the financial services sector. Whilst competition from small fintech startups will certainly take away some market share from traditional banks, the impact of “GAFA” could be huge. The fintech movement did more than unbundle banking and its core services — it spurred financial inclusion across Asia, increased overall economic growth, and made significant inroads into the finance value chain. The born-digital companies brought technology to the forefront, attacking the traditional risk-averse sector from various points — digital payments, insurance, P2P lending, and investment management, among other avenues.

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Scotiabank

Scotiabank is Canada’s international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia...

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FINANCIAL MANAGEMENT, PAYMENTS

Usio's Card Issuing Platform Ramps up Exclusive Partner MoviePass' US Expansion

Usio | February 01, 2023

Usio, Inc. informed on January 31, 2023, that its exclusive partner, MoviePass, witnessed rising demand across the country, allowing it to expand its market penetration from 3 cities to 9 across the United States and sign strategic partnerships. MoviePass uses Usio's proprietary prepaid card issuing platform and a unique external authorization engine to fund transactions for the MoviePass debit card. Louis Hoch, President and Chief Executive Officer of Usio, said, "We had no idea of the power that MoviePass's brand held until we witnessed MoviePass signing up almost 800,000 beta clients in five days and believe that demand will not stop there. Stacy and his leadership team have generated so much interest from people across the country that they've had to increase the number of cities in which MoviePass will initially launch from three to nine." He continued, "We're extremely pleased to serve them and their card holders with the most innovative prepaid card issuing technology on the market, specifically our external authorization capability, allowing MoviePass to fund prepaid cards the moment a customer redeems credits for a movie within the MoviePass ecosystem, allowing for greater funding control and spend management." (Source – Business Wire) Stacy Spikes, Co-Founder and Chief Executive Officer of MoviePass, remarked, "Due to the increasing demand for our platform and as fans across the country return to the movies, we're continuing to add new cities across the U.S. on a regular basis, including Atlanta, Chicago, Dallas, Houston, Indianapolis, Kansas City, Oklahoma City and Tampa Bay. When demand increases, so does the workload. That's why it is vitally important for MoviePass to have partners like Usio who can afford us the best opportunity to scale, through their technology as well as their customer service and success teams, to deliver an incredible user experience on our platform." "Without Usio, we wouldn't be able to continually add new cities to our launch list and have the competitive advantage we do in the marketplace," he concluded. (Source – Business Wire) About Usio Usio, Inc., based in San Antonio (Texas), offers a variety of payment solutions to merchants, billers, banks, service bureaus, crypto exchanges, and card issuers. It provides easy, world-class credit, debit/prepaid, and ACH payment processing platforms to clients. Usio Output Solutions provides electronic bill presentation, document composition, deconstruction, printing, and mailing services. The company's innovative prepaid technology and customized card issuance, payment acceptance, and bill payment solutions make it strong.

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PAYMENTS, FINTECH

Redeban Integrates Nuvei for Platforms Embedded Payments System

Nuvei | January 30, 2023

In a recent development, Canadian fintech firm Nuvei Corporation announced that major Colombian payment processor Redeban integrated the company's 'Nuvei for Platforms' embedded payments solution. After working with Nuvei for a long time, Redeban has now incorporated its 'Nuvei for Platforms' to help meet the merchants' payment needs. Businesses can now add payments to their own platforms by using this product, which is fully customizable. The solution was made for processors like Redeban as well as banks, large fintechs, e-commerce platforms, and marketplaces. With a single integration, Nuvei's core modular platform gives Redeban access to all its features, such as merchant onboarding, payments in and out, optimization, orchestration, fraud management, and risk management. Philip Fayer, Chairman and Chief Executive Officer of Nuvei, expressed that the company's new product, Nuvei for Platforms, is designed to aid businesses like Redeban in increasing their revenue through various payment methods. He stated, "We're increasingly finding that businesses look to us to help them drive innovation, grow their business, and better connect with their customers. With the rollout of Nuvei for Platforms we provide access to cutting-edge technology in an easy-to-integrate and flexible way that serves business needs both today and in the coming years." (Source – GlobeNewswire) Philip Fayer added, "We are excited to extend our partnership with Redeban and also really pleased with the interest we are seeing from businesses inside and outside of Latin America that want to know more about how Nuvei for Platforms can help them improve their customer experience." (Source – GlobeNewswire) About Nuvei Canadian financial technology firm Nuvei helps companies of all sizes save time and money. The modular, adaptable, and scalable technology of Nuvei enables market leaders to accept the next generation of payments, provide customers with a full range of payout alternatives, and take advantage of card issuing, banking, risk, and fraud management services. Nuvei delivers the technology and data for clients and partners to flourish locally and worldwide with one integration, connecting businesses to their customers in more than 200 markets with local acquiring in 45+ markets, 150 currencies, and more than 580 different payment options.

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PAYMENTS, FINTECH

Marqeta Announces Acquisition Agreement with Power Finance, Inc

Marqeta | January 31, 2023

On January 30, 2023, Marqeta, the world's leading modern card issuing platform, announced that it reached an agreement to acquire Power Finance, Inc. ('Power'), a provider of software for managing credit card programs. The transaction is anticipated to close in the first quarter of 2023, subject to the fulfillment of customary closing conditions. Simon Khalaf, the newly-appointed CEO at Marqeta, expressed, "We're thrilled to welcome the Power team and product to Marqeta. We already see considerable demand for differentiated credit products from companies looking to innovate in this space who are held back by the constraints of legacy technology." He added, "We thoroughly examined possible acquisitions to more quickly establish Marqeta's leadership in the modern credit space. It became clear to us that Power would strengthen Marqeta's platform with a best-in-class tech stack for credit card program management." (Source – Business Wire) Meanwhile, Randy Fernando, CEO of Power Finance, will now oversee the product management of Marqeta's credit card platform as part of this deal. The merging of Marqeta and Power platforms will enable the former's customers to create customized credit solutions that meet the changing needs of consumers and businesses. Both organizations were founded on these product ideas to meet developers' current and scalable needs. This arrangement allows Marqeta customers to introduce many credit products and structures, including Power's data science toolbox and Marqeta's rewards innovations. The company intends to swiftly improve its credit offering after acquiring Power. Randy Fernando, Co-Founder and CEO at Power Finance, stated, "Companies like ours were made possible because of the path Marqeta blazed in modern card issuing, demonstrating the possibilities in payments with flexible and modern payment infrastructure." He added, "At Power, we built a full-stack, cloud-native credit card issuance platform, and by becoming a part of Marqeta we have the ability now to bring this innovation to a much larger market at global scale." (Source – Business Wire) Subject to customary adjustments, the purchase price comprises $223 million in cash, of which about one-third is due over two years, subject to certain conditions, while $52 million is subject to a 12-month milestone. About Marqeta With the first open API platform, Marqeta makes issuing cards and processing payments lightning-fast and efficient. The company's platform was designed to facilitate a novel payment experience across a wide range of apps and services that are used regularly. Currently, it employs more than 800 people in the United States, the United Kingdom, Europe, Canada, and Asia-Pacific. Its products are used by industry leaders in digital banking, lending, e-commerce, on-demand services, and more. The company has broad agreements with banks and card networks like Visa, Mastercard, and Discover.

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FINANCIAL MANAGEMENT, PAYMENTS

Usio's Card Issuing Platform Ramps up Exclusive Partner MoviePass' US Expansion

Usio | February 01, 2023

Usio, Inc. informed on January 31, 2023, that its exclusive partner, MoviePass, witnessed rising demand across the country, allowing it to expand its market penetration from 3 cities to 9 across the United States and sign strategic partnerships. MoviePass uses Usio's proprietary prepaid card issuing platform and a unique external authorization engine to fund transactions for the MoviePass debit card. Louis Hoch, President and Chief Executive Officer of Usio, said, "We had no idea of the power that MoviePass's brand held until we witnessed MoviePass signing up almost 800,000 beta clients in five days and believe that demand will not stop there. Stacy and his leadership team have generated so much interest from people across the country that they've had to increase the number of cities in which MoviePass will initially launch from three to nine." He continued, "We're extremely pleased to serve them and their card holders with the most innovative prepaid card issuing technology on the market, specifically our external authorization capability, allowing MoviePass to fund prepaid cards the moment a customer redeems credits for a movie within the MoviePass ecosystem, allowing for greater funding control and spend management." (Source – Business Wire) Stacy Spikes, Co-Founder and Chief Executive Officer of MoviePass, remarked, "Due to the increasing demand for our platform and as fans across the country return to the movies, we're continuing to add new cities across the U.S. on a regular basis, including Atlanta, Chicago, Dallas, Houston, Indianapolis, Kansas City, Oklahoma City and Tampa Bay. When demand increases, so does the workload. That's why it is vitally important for MoviePass to have partners like Usio who can afford us the best opportunity to scale, through their technology as well as their customer service and success teams, to deliver an incredible user experience on our platform." "Without Usio, we wouldn't be able to continually add new cities to our launch list and have the competitive advantage we do in the marketplace," he concluded. (Source – Business Wire) About Usio Usio, Inc., based in San Antonio (Texas), offers a variety of payment solutions to merchants, billers, banks, service bureaus, crypto exchanges, and card issuers. It provides easy, world-class credit, debit/prepaid, and ACH payment processing platforms to clients. Usio Output Solutions provides electronic bill presentation, document composition, deconstruction, printing, and mailing services. The company's innovative prepaid technology and customized card issuance, payment acceptance, and bill payment solutions make it strong.

Read More

PAYMENTS, FINTECH

Redeban Integrates Nuvei for Platforms Embedded Payments System

Nuvei | January 30, 2023

In a recent development, Canadian fintech firm Nuvei Corporation announced that major Colombian payment processor Redeban integrated the company's 'Nuvei for Platforms' embedded payments solution. After working with Nuvei for a long time, Redeban has now incorporated its 'Nuvei for Platforms' to help meet the merchants' payment needs. Businesses can now add payments to their own platforms by using this product, which is fully customizable. The solution was made for processors like Redeban as well as banks, large fintechs, e-commerce platforms, and marketplaces. With a single integration, Nuvei's core modular platform gives Redeban access to all its features, such as merchant onboarding, payments in and out, optimization, orchestration, fraud management, and risk management. Philip Fayer, Chairman and Chief Executive Officer of Nuvei, expressed that the company's new product, Nuvei for Platforms, is designed to aid businesses like Redeban in increasing their revenue through various payment methods. He stated, "We're increasingly finding that businesses look to us to help them drive innovation, grow their business, and better connect with their customers. With the rollout of Nuvei for Platforms we provide access to cutting-edge technology in an easy-to-integrate and flexible way that serves business needs both today and in the coming years." (Source – GlobeNewswire) Philip Fayer added, "We are excited to extend our partnership with Redeban and also really pleased with the interest we are seeing from businesses inside and outside of Latin America that want to know more about how Nuvei for Platforms can help them improve their customer experience." (Source – GlobeNewswire) About Nuvei Canadian financial technology firm Nuvei helps companies of all sizes save time and money. The modular, adaptable, and scalable technology of Nuvei enables market leaders to accept the next generation of payments, provide customers with a full range of payout alternatives, and take advantage of card issuing, banking, risk, and fraud management services. Nuvei delivers the technology and data for clients and partners to flourish locally and worldwide with one integration, connecting businesses to their customers in more than 200 markets with local acquiring in 45+ markets, 150 currencies, and more than 580 different payment options.

Read More

PAYMENTS, FINTECH

Marqeta Announces Acquisition Agreement with Power Finance, Inc

Marqeta | January 31, 2023

On January 30, 2023, Marqeta, the world's leading modern card issuing platform, announced that it reached an agreement to acquire Power Finance, Inc. ('Power'), a provider of software for managing credit card programs. The transaction is anticipated to close in the first quarter of 2023, subject to the fulfillment of customary closing conditions. Simon Khalaf, the newly-appointed CEO at Marqeta, expressed, "We're thrilled to welcome the Power team and product to Marqeta. We already see considerable demand for differentiated credit products from companies looking to innovate in this space who are held back by the constraints of legacy technology." He added, "We thoroughly examined possible acquisitions to more quickly establish Marqeta's leadership in the modern credit space. It became clear to us that Power would strengthen Marqeta's platform with a best-in-class tech stack for credit card program management." (Source – Business Wire) Meanwhile, Randy Fernando, CEO of Power Finance, will now oversee the product management of Marqeta's credit card platform as part of this deal. The merging of Marqeta and Power platforms will enable the former's customers to create customized credit solutions that meet the changing needs of consumers and businesses. Both organizations were founded on these product ideas to meet developers' current and scalable needs. This arrangement allows Marqeta customers to introduce many credit products and structures, including Power's data science toolbox and Marqeta's rewards innovations. The company intends to swiftly improve its credit offering after acquiring Power. Randy Fernando, Co-Founder and CEO at Power Finance, stated, "Companies like ours were made possible because of the path Marqeta blazed in modern card issuing, demonstrating the possibilities in payments with flexible and modern payment infrastructure." He added, "At Power, we built a full-stack, cloud-native credit card issuance platform, and by becoming a part of Marqeta we have the ability now to bring this innovation to a much larger market at global scale." (Source – Business Wire) Subject to customary adjustments, the purchase price comprises $223 million in cash, of which about one-third is due over two years, subject to certain conditions, while $52 million is subject to a 12-month milestone. About Marqeta With the first open API platform, Marqeta makes issuing cards and processing payments lightning-fast and efficient. The company's platform was designed to facilitate a novel payment experience across a wide range of apps and services that are used regularly. Currently, it employs more than 800 people in the United States, the United Kingdom, Europe, Canada, and Asia-Pacific. Its products are used by industry leaders in digital banking, lending, e-commerce, on-demand services, and more. The company has broad agreements with banks and card networks like Visa, Mastercard, and Discover.

Read More

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