The QR Code Payment by Mastercard in 11 Steps👇
Read the complete masterpiece explainer by Arthur Bedel.
REPORT
Traditionally, after cardholder verification, a device-specific network token (DPAN) replaces the customer's Primary Account Number (PAN) in Apple Wallet.
This DPAN makes transactions secure, as it's bound to the device and unusable if stolen.
👀 NEWS HIGHLIGHT
Capital One Financial Corp. agreed to buy Discover Financial Services in a $35 billion all-stock deal to create the largest US credit-card company by loan volume, giving the combined entity a stronger foothold to compete with Wall Street’s behemoths.
Capital One will swap 1.0192 of its own shares for each Discover share, a 26.6% premium over the Feb. 16 closing price, the McLean, Virginia-based company said in a statement.
📰 ARTICLE
💡INSIGHTS
Haris Karonis has begun legal proceedings against the Wall Street bank over what he claims are tactics to suppress his company’s growth.
Haris Karonis, who founded Greek payments company Viva Wallet in 2000, said he believes JPMorgan is trying to drive down the valuation of his business by blocking its entry into the US and new European markets, according to legal documents seen by the Financial Times.
Sequoia Capital has retracted its request to remove Michael Moritz as chairman of Klarna’s board, according to emails reviewed by The Information. Sequoia partner Matthew Miller, the director who in recent days had asked Klarna shareholders to remove Moritz, is instead leaving the Klarna board.
A proposed Capital One-Discover merger drew swift backlash from some Democratic lawmakers and consumer advocacy groups who say the deal could reduce competition and increase fees and costs for consumers.
“With a merger this size, the regulators need to ensure our financial system remains strong and competitive, so that c
al products and services,” said Senate Banking Committee Chair Sherrod Brown.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🇺🇸 NATIONAL HIGHLIGHTS
⭐️ Bolt, Once Worth $11 Billion, Slashes Share Price 97% in Buyback.
⭐️ Morgan Stanley-Backed TomoCredit Isn't Paying Its Bills, Faces Mounting Legal Challenges.
⭐️ Ribbon raises $2.7M to automate inheritance claims.
⭐️ Binance uncovers the top crypto industry dynamics of 2023 and discuss key trends as we head further into 2024.
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FINTECH
Zillow Targets Growing Share of Market With ‘Housing Super App’. The company is also continuing to add functionality to the app for both the real estate sales and rentals markets.
Temenos: Major Accounting Irregularities, Failed Products And An Illusive Turnaround. Shares in core banking vendor Temenos have plunged, after Hindenburg Research shorted the company alleging "accounting irregularities.”
Klarna’s CEO embraced AI by telling OpenAI’s Sam Altman, “I want Klarna to be your favorite guinea pig”.
Episode Six joins Mastercard Engage Programme. The company has announced it has been selected to join the Mastercard Engage Programme for its instalments solution in Europe.
Detected collaborates with Visa to offer improved SME onboarding in US and Canada. The news extends Detected’s relationship with Visa but is a first in the US and Canada.
Y Combinator Looks to Invest in Stablecoin Finance. Y Combinator (YC), the Silicon Valley incubator, has listed stablecoin finance as a category in its new and updated list of areas it would like to deploy funds in.
PAYMENTS
Trice is a New Technology Provider for the RTP® Network from The Clearing House. Trice announced its launch as a technology provider and real-time payments gateway for the RTP® network from The Clearing House, with TransPecos Banks as Trice's partner.
Engage People Reports Substantial Growth in Pay with Points Transactions, New Members in 2023. Engage People saw year-over-year growth of more than 48% in total sales in 2023.
Payment orchestration platform market to reach $4.83 billion by 2032. The global expansion of businesses requires seamless cross-border payment capabilities, which payment orchestration platforms offer.
REGTECH
Hummingbird Launches Automations Product To Take On Time-Consuming Compliance Tasks. Automations provides compliance teams at financial institutions with an easy-to-use, visual automation builder.
DIGITAL BANKING
Federal financial regulators are exploring allegations by two whistleblowers that Cash App, the popular mobile payment platform, and entities providing transaction services to its users performed inadequate due diligence on customers.
The US Internal Revenue Service is seeking to recover about $1.4 billion in taxes it claims are owed by Silicon Valley Bank, the regional lender that failed last year.
Better introduces VA loan programme. This offering allows qualified Veterans to secure a home loan for up to 100% of their purchase price with no down payment requirement.
Apple’s recent move to boost the interest rate for its Apple Card Savings Account to 4.5% is now prompting a competitor to do the same. Cash App announced it will now offer “up to” a 4.5% APY (annual percentage yield) for its Cash App Savings customers, with a few caveats.
Bank of America and Starbucks Launch Loyalty Partnership. Bank of America cardholders and Starbucks rewards members can earn 2% cash back on top of the rewards or card benefits they already earn on qualifying purchases.
CRYPTO
Rockwallet Steps in to Adopt Wyre's Customers Following Shutdown. Rockwallet disclosed that Wyre customers would be directly contacted by Wyre with login information and guidelines for reactivating their accounts.
DONEDEAL
PayPal invests in conversational AI firm Rasa. StepStone Group co-led the round, with participation from Andreessen Horowitz, Accel, and Basis Set Ventures.
Pulsate raises $7.7 million in Series A funding round. Pulsate's platform enables credit unions to provide customers with data driven, personalised product recommendations and marketing, boosting customer retention and loyalty.
Peter Thiel-backed Valar Ventures invests in $6M funding round of German fintech Monite, US expansion on cards. Monite is well-positioned to meet the needs of SMBs seeking streamlined payment workflows.
Ex-PayPal and Venmo vets launch Meso to connect crypto wallets with bank accounts, announce $9.5M seed round. The on-ramp product integrates bank accounts and cards within crypto applications.
MOVERS & SHAKERS
Toast to Cut About 550 Employees in Restructuring. The Boston-based company, which creates software for restaurants, will also reorganize certain facilities and operations.
FinWise Bancorp Announces Two Senior Leadership Promotions. “I am pleased to share the promotions of Robert Keil and Richard Thiessens to our executive leadership team,” stated Kent Landvatter, Chief Executive Officer and President of FinWise.
BNY Mellon the global financial services company, has appointed Julie Gerdeman as Global Head of Data & Analytics to lead its market-leading software.