5.28.19 Your morning briefing

The information you need to start your day, from PaymentsSource and around the Web:

Industry consolidation
TSYS and Global Payments have announced a merger deal of about $21.5 billion, the third M&A deal in the financial/fintech industry of more than $20 billion this year, and the latest in a series of deals of all sizes.

Like the $34 billion FIS-Worldpay deal announced in March and the $22 billion Fiserv-First Data deal announced in January, TSYS and Global Payments have a deep bench of payments and financial services technology, but need to scale and expand geographically to counter smaller yet faster-growing technology companies like Stripe and Square. Those fintechs are scooping up merchants with a mix of hardware and software that makes it easy for small to mid-sized businesses to offer e-commerce and other mobile technology.

Global Payments is valued at about $23 billion, and is the third-largest merchant acquirer in the U.S.; and TSYS is the No. 3 card processor in the U.S., worth about $18 billion. TSYS CEO Troy Woods will be chairman of the Board of Directors and Global Payments CEO Jeff Sloan will be CEO of the combined company. The deal is expected to close in the fourth quarter.

Wallet on ice
Rabobank has cancelled plans for a cryptocurrency wallet, citing a lack of international regulations.

The Dutch bank, which pulled the plug on the crypto wallet after analysis of consumer needs for the product, also noted the Dutch government has called for international cryptocurrency regulations, reports Finextra.

Another Dutch bank, ABN Amro, has also halted work on a cryptocurrency wallet while continuing work on a blockchain project for trade inventory management.

Sea cruise
Cruise lines often face technology challenges given their remoteness while at sea, though Carnival has introduced a cloud-based wearable called the Ocean Medallion that can be used to track vacationers on board, check in, order and pay.

Carnival has been working on the technology for about four years, and is now formally rolling it out — starting with three ships out of its 100-ship fleet, reports VentureBeat.

The concept is similar to Disney's Magic Band, a wearable that serves as an all-purpose digital key at Disney resorts, enabling guests to access hotel rooms and pay for goods and services.

Space coin
Cryptocurrency and gaming entrepreneur Samson Mow is launching a token for a space fighting game called Infinite Fleet, that pits humans against aliens.

Mow, who is an executive at bitcoin startup Blockstream and gaming company Pixelmatic, hopes the token will streamline crypto payments for gaming, reports Coindesk.

The gaming token is trying to address fraud by structuring the product as a security token, which means it's subject to regulation and requires a return on investment.

Mobile money expands
Mobile money apps played a major role in financial inclusion in developing markets in Africa as a gateway to mobile payments, and the concept is gaining traction in Southeast Asia.

Nguyen Mahh Hung, Vietnam's minister of information and communication, is pushing a national mobile money test program, saying it can be an effective way of growing digital payments, reports SaigonTimes. The test will enable consumers to transfer and receive funds, while paying bills through mobile accounts using local agents, ATMs and other transaction points.

The pilot is designed to begin a move away from cash in Vietnam, where cash currently makes up more than 99% of all payments, according to SaigonTimes.

From the Web

The Swiss Surfer Behind $2 Billion Payments Startup Checkout.com
The Wall Street Journal | Sat May 25, 2019 - The newest face of the payments frenzy that has investors cheering and bank bosses scrambling is a 37-year-old Swiss surfer who dropped out of college to ride waves up and down the California coast.

Facebook Could Fix the News Industry With Micropayments—Unless Kik Does It First
Fortune | Sun May 26, 2019 - It’s a problem that’s long flummoxed media outlets, and also one that’s increasingly frustrating consumers: The inability to pay a small sum, such as 25 cents or $1, to read an article online. Yet a breakthrough could be near, as big web platforms like Facebook and Kik are building technology that could mean a new revenue stream for news outlets.

Alibaba plans bumper $20 billion HK listing to boost investment war chest: sources
Reuters | Tue May 28, 2019 - Alibaba is considering raising as much as $20 billion through a listing in Hong Kong, people familiar with the matter told Reuters, lining up a second blockbuster deal following its 2014 record $25 billion float in New York.

More from PaymentsSource

Why TSYS is talking to potential suitors
Total System Services Inc. doesn’t want to be a wallflower in this year’s series of mega-mergers.

Visa’s chief economist: Banks disintermediated by ‘massive increase in alternative lending’
Fintechs that offer installment loans are having a major impact on credit card lending — and many card issuers are ill equipped to compete.

Simple drops e-billing, and gets heat from consumers
The digital banking provider Simple has been part of BBVA for five years, and its reputation as an easy way to handle and transfer digital money has only grown in that time frame through the addition of faster payments and P2P services.

AscendantFX adds auto-scheduling to streamline cross-border B2B
Payments technology provider AscendantFX has added an international payment scheduling service to its APay online payment platform to help corporations automatically schedule and submit batches of cross-border transactions in advance of due dates.