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Welcome to the PaymentsSource Morning Briefing, delivered daily. The information you need to start your day, including top headlines from PaymentsSource and around the Web:
Jaguar adds payment horsepower: Jaguar is the latest automaker to add payment technology. It is introducing a touchscreen to pay for fuel at Shell stations in the U.K., with Apple Pay and PayPal providing support, according to TechRadar. The service will expand to other global markets later this year, and will also add Android Pay. The project is a collaboration between Jaguar and Shell, which uses geolocation and a cloud-based payment system that links to PayPal or Apple Pay. Drivers install the app, and when driving up to a service station they select how much fuel they require, then pay with one of the two wallets. In-car payment technology has been accelerating in the past year. GM, IBM and Mastercard are partnering to add in-app payments to GM's Onstar system, while Visa has been demonstrating in-car payment concepts over the past few months.
The Jaguar Land Rover Automotive Plc I-Pace Electric Concept luxury sport utility vehicle (SUV) is displayed during Automobility LA ahead of the Los Angeles Auto Show in Los Angeles, California, U.S., on Wednesday, November 16, 2016. The Connected Car Expo and LA Auto Show press days have merged to form AutoMobility LA. The show is open to the public November 18-27. Photographer: Patrick T. Fallon/Bloomberg
Patrick T. Fallon/Bloomberg
A big win for Bitcoin in Japan: While bitcoin is falling out of favor in China, it's doing much better in neighboring Japan. Cryptocoinnews reports Mizuho Financial Group and Sumitomo Financial Group have joined a $1.75 million round of funding for bitFlyer, Japan's largest bitcoin exchange. Another large bank, Mitsubishi UFJ Financial Group, is already a bitFlyer stakeholder. The banks hope the investment will reduce the overall costs of international wire transfers. There's also a chance that a longstanding Japanese regulation may lift soon. The existing regulation limits bank stakes in nonfinancial companies to 5%, and banks are hoping to use the deregulation to compete with foreign companies such as Apple that are investing in Japanese startups.
Gig taxes work for Tipalti: The number of companies that are using contract workers or freelancers is expanding, which is good news for Tipalti, a contract payment specialist that has found demand for its tax services around the world. The company, which first launched tax documents two years ago, has expanded the service to 47 more countries, serving industries such as retail, fashion and e-commerce. Tipalti, which covers tax ID and document collection for companies that make payments in numerous jurisdictions, also noted the growth of financial and regulatory technology are tied together and should find adoption given the volatile state of international politics.
Can a change in project management help payment incumbents?: Bitcoin's underlying technology, blockchain, has drawn attention from a lot of startups that are looking to take costs out of processes such as cross-border transactions. The startups' usual argument is they are more nimble and have less overhead, thus resulting in faster development cycles. But is there a technique that could allow the establishment to fight back? Called DevOps, it's a form of technology development that emphasises collaboration and communication between software developers and IT departments, and it's been found to speed the time from concept to market for larger companies. DevOps is also catching on with larger, established financial technology companies. Finextrareports nearly half of financial institutions, with an eye on disruptors in areas such as payments, have adopted DevOps; this is a higher adoption rate than other industries such as media, software and general retail. Finextra cites Claranet researchers as saying incumbents, pushed by startups, are increasingly turning to DevOps to change corporate culture and update how innovation gets to market.
Here’s Why This Top VC Says Amazon Is Set to Rule the Fintech Game Fortune Magazine • Jeff John Roberts If any technology company makes a major move into payments and banking, the most obvious candidates are Apple (aapl, +1.47%) and Google (goog, +0.15%). After all, both have a lot of experience thanks to the Apple Pay and Google Wallet functions, and...
China's travelers are a big opportunity with a lot of payment friction The growing number of Chinese consumers traveling to the U.S. and other countries is becoming a two-for-one opportunity for payment companies. The market's gigantic and growing — and it has a lot of trouble executing transactions.
Arby's hack shows ID protection should rely on people, not cards The unfortunate hack against Arby’s demonstrates a challenge many major retailers choose to face: the stubborn centralization of sensitive customer data that hackers view as a wholesale reward.
Is AI making credit scores better, or more confusing? A consumer’s credit score used to be a commonly understood number -- the time-honored FICO score -- that banks all used in their underwriting. But banks increasingly are relying on dozens of scores that reflect a variety of data sources, analytics and use of artificial intelligence technology.
An appeals court's decision will make it harder for consumer-lending-focused fintechs to operate in Colorado. But the impact could eventually be felt more widely, according to both industry groups and consumer advocates.
As opportunities grow for private student lending, Sallie Mae has entered a multiyear "strategic partnership" with the world's largest private equity firm.
The Consumer Financial Protection Bureau, building on an executive order by President Trump, wants to eliminate the legal framework of "disparate impact" from its implementation of the Equal Credit Opportunity Act.
Acquisition talks fell through in the final hours, according to reports. Also: Visa launched another stablecoin pilot on Visa Direct; the Bank of England seeks input on stablecoin restrictions; and more in this week's global payments roundup.
The Treasury secretary highlighted the impacts the bond market has on affordability and previewed regulatory tweaks the administration is eyeing to keep yields stable and credit flowing.
