Xero Teams Up with Stripe to Help SMBs Get Paid Faster

https://finovate.com/xero-teams-up-with-stripe-to-help-smbs-get-paid-faster/
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Cloud accounting firm Xero announced a champion move for small businesses today that will not only help businesses get paid faster, but also give them more options on how they get paid.

“Small businesses are fundamental to the growth of major and developing economies around the world; ensuring that they get paid on time is vital to their survival and growth,” said Craig Walker, Founding CTO and Executive General Manager Platform Business Technologies at Xero. “We built the Xero platform to help small businesses grow with better tools, smarter insights and comprehensive connections to the information they need to run their business. Our partnership with Stripe today brings us even closer to helping small businesses spend less time chasing payments, and more time focusing on doing what they love.”

The two are working on solutions to make client invoicing more efficient and to offer more insight into business performance. The first two tools being launched under the partnership are the Stripe Feed and Auto Pay.

The new data feed from Stripe makes it easy for businesses to receive transaction data on sales and invoices in the Xero platform. Prior to today’s integration, Xero facilitated Stripe reconciliation for credit card payments processed through Stripe. The partnership will automatically integrate every payment processed through Stripe, from online invoices to Shopify purchases and processing charges, as individual line items in Xero.

Xero will use machine learning to automatically reconcile transactions. The company said that the new Stripe Feed will be available “in the next few months.”

With Auto Pay, businesses can set up and receive recurring payments for repeat billing customers in Xero. This will come in handy for a multitude of businesses, as Xero reports that more than 1.6 million repeating invoices are paid in Xero month-over-month. This feature will soon be available to customers in the U.S. and eventually roll out across the globe.

The companies have found that small businesses using Stripe payments in Xero invoices, when compared to those without a payment gateway, are already paid up to 15 days faster globally, and up to 16 days faster in North America.

Xero offers its 1.8 million subscribers access to an ecosystem of 700+ third party apps and 200+ bank connections. The company most recently presented at FinDEVr San Francisco 2014 when the company’s Head of U.S. Partnerships David Pollock spoke about building an API-driven ecosystem for small businesses. At FinovateSpring 2011, CEO Rod Drury debuted the company’s Business Identification solution. 

Founded in 2006, Xero listed on the New Zealand Stock Exchange (NZX) in 2007 and the Australian Securities Exchange (ASX) in 2012. In January of 2018, the company consolidated to list solely on the ASX and now boasts a market capitalization of $5.9 billion ($8.6 billion AUD). Xero has raised more than $319 million (NZ$470 million) in funding, including $1.4 million pre-IPO; $10.2 million at its IPO; and follow-on rounds from investors including Peter Thiel, Matrix Capital Management, and Accel Partners.

https://finovate.com/xero-teams-up-with-stripe-to-help-smbs-get-paid-faster/

Expensify Teams Up with Bookkeeping Franchise Supporting Strategies

https://finovate.com/expensify-teams-up-with-bookkeeping-franchise-supporting-strategies/
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Expense management solution provider Expensify announced today that it is teaming up with Supporting Strategies, one of the biggest bookkeeping franchises in the U.S. The partnership will make Expensify the expense reporting app for thousands of Supporting Strategies’ small business clients across the country.

With this announcement, Supporting Strategies is the latest company to join the ExpensifyApproved! Partner Program. The program, which features companies such as CLA, Wipfli, and BPM among its members, provides discounts, co-marketing, and access to client onboarding resources, as well as opportunities to participate in networking events such as Expensify’s ExpensiCon.

“Expensify has greatly increased our ability to provide great customer service to our clients,” Supporting Strategies CEO and founder Leslie Jorgensen said. “With Expensify, we have a one stop shop for all company expenses that syncs directly to QuickBooks.” Jorgensen praised the platform’s one-click ability to approve and pay expense reports, as well as code company credit card transactions – all in the same app.

Founded in 2004, Supporting Strategies offers outsourced bookkeeping services and operational support to small businesses. The company leverages “best-of-breed” technology to offer a range of services including accounts payable and receivable, bookkeeping, financial reporting, and payroll administration. The company has been in a growth phase of late, announcing expansions in Florida and New Jersey in June; in Minneapolis, Minnesota in May; and Charlotte, North Carolina in March. Earlier this year, Supporting Strategies was named Top 50 Franchise Based on Franchisee Satisfaction by Franchise Business Review for the fourth consecutive year.

Expensify presented Bedrock: Expensify’s Open Sourced Infrastructure Secret Weapon at our developers conference, FinDEVr Silicon Valley in 2016. Company founder and CEO David Barrett discussed how the company leveraged Bedrock, its geo-redundant database technology, to help it maintain its position as the fastest growing ERP software in the world. Expensify is also an alum of our demo-only event, having demonstrated its Expensify Invoices solution at FinovateSpring in 2013.

Headquartered in San Francisco, California, and founded in 2008, Expensify has raised $38.2 million in funding from investors including OpenView Venture Partners, CIBC, PJC, and Redpoint. The company made international fintech headlines this spring with the news of its partnership with Southeast Asia ridesharing company Grab.

https://finovate.com/expensify-teams-up-with-bookkeeping-franchise-supporting-strategies/

Trustonic enters partnership with Rubean, CCV on mPOS solution in Europe

https://www.mobilepaymentstoday.com/news/trustonic-enters-partnership-with-rubean-ccv-on-mpos-solution-in-europe/
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Mobile security firm Trustonic said it entered a partnership with fintech Rubean AG and payment solutions firm CCV to develop a mobile point-of-sale solution that accepts high value transactions using a PIN code on a range of smartphones.

The company said that using smartphones as mobile POS devices would allow small retailers, traders and SMBs to save money on expensive hardware for payment acceptance, as well as boost staff efficiency and customer satisfaction.

“The trend of using smartphones as mPOS terminals is disrupting and democratizing the payments ecosystem, but hacking and malware threats are real concerns,”a spokesperson for Trustonic told Mobile Payments Today. “Without strong app security, cybercriminals can steal sensitive data used in smartphone transactions to commit payment fraud.”

Rubean and CCV are set to launch a smartphone only payment terminal with PIN functionality with multiple card networks and partners throughout Europe.


 


Topics: Handsets / Devices, POS, Region: EMEA, Security


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https://www.mobilepaymentstoday.com/news/trustonic-enters-partnership-with-rubean-ccv-on-mpos-solution-in-europe/

CUNA Strategic Services and Switch pilot card updater app for credit unions

https://www.mobilepaymentstoday.com/news/cuna-strategic-services-and-switch-pilot-card-updater-app-for-credit-unions/
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Switch Inc. announced the launch of a pilot program with CUNA Strategic Services to provide its CardUpdatr app to credit unions across the U.S., according to a company release.

The CardUpdatr app, which operates on web and mobile sites, will automatically update merchant sites with credit union cards during the pilot program.

“The CardUpdatr solution is uniquely positioned to propel credit unions to the frontline of innovation to increase cardholder satisfaction and differentiate themselves from other financial institutions,” Eric Gelly, president of CUNA Strategic Services, said in the release.

CardUpdatr is an app that can be used for a number of different marketing programs, including activation, reissuance as well as card use promotion.

Switch CEO Chris Hoppen said that financial institutions can use technologies like this to effectively deal with member loyalty and long-term growth.

“Significant transaction volume attrition stems from daily reissuance, moreover newly issued cards may never see a return on investment because cardholders do not update the online accounts where these cards are used the most,” Hoppen said in the release.


Topics: Mobile Banking, Technology Providers


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https://www.mobilepaymentstoday.com/news/cuna-strategic-services-and-switch-pilot-card-updater-app-for-credit-unions/

Automated debt manager Tally raises $50 million in Series C funds led by Andreessen

https://www.mobilepaymentstoday.com/news/automated-debt-manager-tally-raises-50-million-in-series-c-funds-led-by-andreessen/
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Tally, a San Francisco-based fintech that uses automation to helps consumers manage debt and save money, said it raised $50 million in Series C funds led by Andreessen Horowitz.

Prior investors, including Kleiner Perkins, Shasta Ventures, Cowboy Ventures and Shay Ventures, all participated in the round, according to a press release. The company has now raised $92 million to date.

Company officials said the new funding will be used to grow the business and build out a fully automated consumer finance platform.

“We take automation for granted in so many areas of our lives, but automation has been slow to come to financial services,” Angela Strange, a newly named director from Andreessen Horowitz, said in the release. “Too many Americans are drowning in credit card debt, in large part because the system is too complex — by design.”


 


Topics: Mobile Apps, Mobile Banking, Mobile Payments


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https://www.mobilepaymentstoday.com/news/automated-debt-manager-tally-raises-50-million-in-series-c-funds-led-by-andreessen/

How open banking is changing the way ING reaches its customers

https://bankinnovation.net/2019/06/how-open-banking-is-changing-the-way-ing-reaches-its-customers/
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To Benoît Legrand, chief innovation officer at ING Group, open banking and fintech partnerships are changing the way the bank is meeting customer needs. The Dutch banking giant is embracing the open banking concept by positioning itself as an intermediary between customers, third-party fintech companies and other banks. As Legrand put it, ING is striving to …Read More

https://bankinnovation.net/2019/06/how-open-banking-is-changing-the-way-ing-reaches-its-customers/

Personal finance app Tally raises $50m to grow its platform business

https://bankinnovation.net/2019/06/personal-finance-app-tally-raises-50m-to-grow-its-platform-business/
http://bankinnovation.net/wp-content/uploads/2018/08/tally-showcase-3-1-150x150.jpg?#

Tally, a consumer finance app that consolidates and pays down customers’ debts, raised $50 million this week to add new services. The Series C funding round, led by Andreessen Horowitz, will help the San Francisco-based company hire more engineers to help build out more products, according to Erica Dorfman, Tally’s head of finance and operations. Previous investors Kleiner Perkins, Shasta Ventures, Cowboy Ventures and Sway Ventures also participated in the round.

Three-year-old Tally, which so far has raised $92 million, is on a path to build a comprehensive personal finance toolkit for customers. It’s a platform model being pursued by other personal companies like MoneyLion, Acorns, Dave and others.

Tally launched as an automated debt manager, letting customers pay off a Tally line of credit at a lower interest rate than their credit cards. Later this summer, the company will roll out Tally Save, which includes an FDIC-insured savings account and savings-based rewards. The company also plans to add other forms of debt, including student loans and auto loans to its debt manager. “Our roadmap is around doing all of your financial jobs for you,” co-founder Jason Brown recently told Bank Innovation.

From an investor’s perspective, Tally stands out because of its ability to retain customers, Angela Strange, general partner at Andreessen Horowitz, recently said (Strange will join Tally’s board of directors). Tally’s monthly retention rate, according to Dorfman, is 99 percent. What keeps customers using Tally’s platform is the automation that removes friction and ultimately reduces the stress of consumer debt loads.

Focusing on consumer debt is a big opportunity for fintech companies and offers possibilities for future bank-fintech collaborations, according to Stephen Greer, senior analyst at Celent. “Debt is the smart side of the financial wellness equation; savings pay much less interest than outstanding loans charge,” he said. “U.S. [consumer] debt is rising so there’s a major opportunity from fintechs to offer their capabilities as white-labeled solutions to banks, a big potential growth area.”

Tally has grown its revenues by 10 times over the past year (the company wouldn’t provide a specific figure), and its team size, currently at 70 members, potentially could double over the next year as a result of the new funding.

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https://bankinnovation.net/2019/06/personal-finance-app-tally-raises-50m-to-grow-its-platform-business/

Whitebox Notches $5M In Series A

https://www.pymnts.com/news/investment-tracker/2019/whitebox-ecommerce-fulfillment/
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To accelerate its eCommerce “Factory Floor to Front Door” platform, automation and fulfillment technology firm Whitebox has closed a TDF Ventures-led $5 million Series A funding round. New investor David Williams, who is Merkle’s chairman and CEO, joined existing major investors who are increasing their support, including Millennial Media Co-Founder and CTO Chris Brandenburg, according to an announcement from the company.

Whitebox CEO Marcus Startzel said in the announcement that shoppers have almost limitless options with online shopping, creating challenges for brands. “Consumers can choose to buy a single product, a multi-pack, a variety pack, same-day shipping, two-day shipping, whatever they want. Brands, on the other hand, must battle through the selling and fulfillment challenges left by this explosion of consumer choice,” Startzel noted. “This is exactly the problem Whitebox is solving: brands can now offer these options with all-in-one technology-enabled eCommerce outsourcing, from the factory floor to the consumer’s front door, all while reducing time from sale to delivery as cost effectively as possible.”

The company says it will use the funding to invest in marketing as well as sales, accelerate customer segment growth, refine its technology solutions, hire key experts and open additional U.S. fulfillment centers. As it stands, Whitebox created its technology platform for brands to deliver a true logistics solution for eCommerce and capitalize on direct-to-consumer trends. The company’s clients range from large brands like KitchenAid and Starbucks to challenger brands like Bare Bones and Kitu. Startzel said in the announcement, “We will be the technology partner of choice so DTC companies of all sizes can focus on building best-of-breed products.”

The funding comes as the company said consumers spent $517 billion online with U.S. merchants last year, marking an increase of 15 percent from $450 billion in 2017 per U.S. Commerce Department data and an analysis by a media outlet. Citing CPC Strategy, the company noted that Amazon “remains the titan” but that Alibaba, Etsy, Walmart, eBay and Overstock.com round out the U.S.’s top seven eCommerce marketplaces.

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Latest Insights: 

With an estimated 64 million connected cars on the road by year’s end, QSRs are scrambling to win consumer drive-time dollars via in-dash ordering capabilities, while automakers like Tesla are developing new retail-centric charging stations. The PYMNTS Commerce Connected Playbook explores how the connected car is putting $230 billion worth of connected car spend into overdrive.

https://www.pymnts.com/news/investment-tracker/2019/whitebox-ecommerce-fulfillment/

Magento Integrates Braintree Into Progressive Web Apps

https://www.pymnts.com/news/payments-innovation/2019/magento-braintree-pwa/
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As key shopping experiences along the customer journey such as checkout and payment are often the most complex and critical for developers to tackle, Magento has integrated Braintree into its default Venia Progressive Web Applications (PWA) storefront. The company noted that the offering provides an easy and quick way for developers to tap into a trusted gateway for credit and debit transactions.

The gateway can be configured for PWA in minutes, especially for current Braintree merchants. In addition, the company noted that shoppers will recognize the checkout experience’s familiar “Pay by card” interface that bolsters conversions and overall ease of use at the same time. Eric Erway, senior manager, product management, said in a post, “Braintree and Magento share the same vision when it comes to the developer experience: seamless, reducing friction, getting up and running quickly. Braintree’s easy to integrate card flow allows developers to quickly set it up and start accepting card payments in a flow that shoppers are familiar with.”

Erway also pointed out that “early feedback from developers and partners has been extremely positive.” He also noted that through developer documentation and PWA Studio sandbox, it is no longer necessary to set up and configure Magento to start testing out Venia. The company noted that PWAs continue to be an important consideration for merchants seeking cost-effective and high conversion mobile solutions for their businesses as of PWA Studio’s initial release many months ago with Magento 2.3. PWAs provide shoppers with highly personalized and cross-channel experiences that were once reserved for apps that were native.

The offering comes as web traffic is moving to mobile to encompass 52 percent around the world per Forrester Consulting, Magento said on a product page. And, as the influence of mobile when it comes to digital commerce continues to expand, the company noted on the page, “so have expectations of on-the-go consumers who demand lighting fast, app-like browsing experiences.”

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Latest Insights: 

With an estimated 64 million connected cars on the road by year’s end, QSRs are scrambling to win consumer drive-time dollars via in-dash ordering capabilities, while automakers like Tesla are developing new retail-centric charging stations. The PYMNTS Commerce Connected Playbook explores how the connected car is putting $230 billion worth of connected car spend into overdrive.

https://www.pymnts.com/news/payments-innovation/2019/magento-braintree-pwa/

Steeping Convenience With Tea Technology And Subscriptions

https://www.pymnts.com/news/retail/2019/cusa-tea-subscription-dtc/
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The great outdoors can inspire some entrepreneurs to start beverage companies: Cusa Tea Founder and CEO Jim Lamancusa, for instance, found the need for his product on a backpacking trip. All of his friends were drinking Starbucks VIA instant coffee, but he was carrying around soggy tea bags. And that left him thinking: Why hasn’t anybody made Starbucks VIA but for tea? His company has brought that concept to fruition, and the company recently raised $2.5 million in a Series A round that Lamancusa told PYMNTS.com in an interview “will allow us to grow into other categories like functional herbal teas and coffee.”

The company offers its instant teas on an eCommerce website for shoppers to buy as a one-time purchase or as a subscription. It taps into the Shopify platform and lets consumers check out through credit cards or PayPal. (The company also sells on Amazon, which Lamancusa notes is another “easy click and ship option.”) As for why the company offers a subscription, Lamancusa said that products — like those from his company — are consumables. And consumers might use that kind of product, say, every day. “It’s something that you constantly need to have your pantry stocked with,” Lamancusa said.

With a subscription, shoppers don’t have to worry about ordering the product (or remembering to do so). “It just automatically shows up,” Lamancusa said. At the same time, most people have a pretty good idea about their tea drinking habits. They know that they might drink a cup or three cups a day, for instance. As a result, they know how much to order from a subscription standpoint. The company offers a variety of selections including peach green tea, spicy chai tea and lemon black tea.

When it comes to Cusa Tea’s most popular product, Lamancusa noted that the company’s variety pack is its No. 1 seller to this day. For one, shoppers are checking the company out to see what they think. At the same time, consumers like to drink different types of tea throughout the day — they might want to drink English breakfast tea in the morning, in one case.

Steeping Instant Tea

The company uses a cold steep technology to prepare its tea packets. As it stands, the two main technologies for making a beverage instant have some downsides (e.g. they might degrade its flavors). Those methods include a spray dry, which is high-heat dehydration, and freeze drying. But Cusa Tea takes a different approach — and the inspiration behind the method came from Lamancusa’s wife’s eye cream. Lamancusa read the back of the box and discovered it was rose extract. He wondered what rose extract was and how they got rose petals into an eye cream (without high heat or freeze drying).

And the more Lamancusa read about the process, the more he realized it was a viable technology for food as well. As a result, the company teamed up with a botanical extraction firm and modified the technology to use for a food purpose. His process “doesn’t degrade the flavor profile of the tea at all,” Lamancusa said. The packets themselves dissolve instantly into hot water and can take 30 to 45 seconds in cold water. And when the tea rehydrates it has the same taste as regular brewed tea — it can be hard to tell the difference.

Lamancusa also noted the company uses the top tea in the world. And, when Cusa Tea submitted products to the Global Tea Championship, its teas have won silver and bronze medals. (The event happens once a year, and tea sommeliers judge the flavor profile through blind taste tests.) In other words, the company’s tea beat out many loose-leaf and bag teas for flavor. For the products, the company receives its tea from international certified organic tea farms. To find those farms, Lamancusa wanted the tea’s taste and flavor to be incredible and wanted the properties be far away from, say, major roadways. He also wanted to have a good relationship with them and make sure they were treating their workers well.

The Tea Market

The company’s target market includes women between the ages of 25 and 50 who are living a healthy and active lifestyle. “They read the back of ingredient labels,” Lamancusa said. These consumers are looking to reduce sugar and calories from their diets whenever possible. They are also active and exercise three to five times per week. At the same time, they may enjoy camping or hiking in the doors but might go to a gym class during the week to stay fit. And a lot of consumers are moms and the convenience aspect resonates with them because they can have quality and convenient cup of tea.

To help introduce consumers to its products, the company offers a free sample pack. Through the offering, the company provides shoppers with one serving of seven flavors for a shipping and handling fee. (The tea, however, is free.) As it stands, the variety pack has 10 servings, so the consumer gets almost the same number of teas as that item.

Beyond Cusa Tea and its instant offerings, eTailers such as Swift Cup Coffee are bringing subscriptions to instant coffee, and direct-to-consumer (DTC) brand Voila Coffee also offers subscriptions for the product.

From Cusa Tea to Voila Coffee, DTC brands are aiming to change the way consumers enjoy specialty teas and coffees with the help of subscriptions and technology in the age of beverage innovation.

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Latest Insights: 

With an estimated 64 million connected cars on the road by year’s end, QSRs are scrambling to win consumer drive-time dollars via in-dash ordering capabilities, while automakers like Tesla are developing new retail-centric charging stations. The PYMNTS Commerce Connected Playbook explores how the connected car is putting $230 billion worth of connected car spend into overdrive.

https://www.pymnts.com/news/retail/2019/cusa-tea-subscription-dtc/

How Food Is Helping To Drive Connected Car Retail

https://www.pymnts.com/news/retail/2019/food-retail-connected-vehicles/
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The connected vehicle ecosystem is taking shape, and that brings new opportunities to retail. But challenges remain, not the least of which include securing the emerging ecosystem for those connected cards and trucks.

Some of the latest developments from the retail side of the ecosystem come from the world of QSRs.

Cars and quick-service restaurants (QSRs) have been interconnected since drive-ins were the latest innovation. QSRs thrive on speed and convenience, and that once meant catering to customers in cars via drive-through windows.

QSR Innovation

Now cars have transformed from vehicle to ordering platform, and QSRs have been on the forefront of this transformation.

Consumers increasingly rely on mobile for ordering food, and in-car connected services are making this behavior even easier. According to the PYMNTS Commerce Connected Playbook, mobile usage in-car is already common, especially at QSRs: One quarter (25 percent) of drivers are already on their phones when pulling into drive-through lanes. And ordering food while driving is one of the most common connected activities, per PYMNTS’ Digital Drive Report. More than one-third (35.3 percent) of commuters had ordered food and picked it up at a drive-through in the past week, while a slightly lower number (33.4 percent) had ordered and picked up coffee the same way.

Most commuters in the Digital Drive Report used voice assistants provided by the auto manufacturer (64.9 percent). Accessing Amazon’s Alexa (13 percent) and Google Assistant (12 percent) through the dashboard were far less popular. But in-dash Google Assistant had a good deal of future interest: 31.9 percent said they would engage in commuter commerce if this option were available.

Just a few months ago, Domino’s announced a partnership with Xevo to launch a pizza-ordering platform via dashboard touchscreen that will be preloaded in cars this year. Domino’s had already enabled in-car ordering with Ford’s Sync AppLink back in 2014.

Pizza chains are often early adopters, partly because consumers are accustomed to ordering pizza by phone instead of while physically at a store. In fact, Pizza Hut’s claim to fame is that it sold its first online order way back in 1994.

Commerce Wave

This is just the beginning of a new wave in digital commerce; 64 million shipments of connected cars are forecast for 2019, up from 33 million in 2017. By 2020, nearly all (98 percent) new cars will offer internet and cellular and wireless connectivity.

Security, though, remains an issue for connected vehicles. Indeed, in a new survey, 61 percent of consumers indicated they were not aware that hackers could potentially gain control of a connected vehicle — an issue of perception that could come into play during a data breach. “The research also found that 65 percent of connected vehicle owners believed — incorrectly — that vehicle manufacturers must inform owners of software and security updates,” according to the report from Auto Remarketing.

“The study also showed that the younger the survey participant, the lower his or her perception of the security threat of connected vehicles. Fifty-four percent of 18- to 29-year-olds saw connected cars as a minimal threat, compared to 42 percent of all respondents,” according to that publication.

Making consumers feel secure in their connected vehicles will have significant impacts for the retail opportunity — and so will making sure those cars and truck offer seamless payment experiences.

As use of the connected car grows, these upgraded vehicles have the potential to serve 135 million commuters who spend an average of 51 minutes driving to and from work every day. After all, PYMNTS research shows that most commuters are interested in using their daily commute times to handle a host of tasks, such as taking phone calls, ordering groceries, paying bills and making other retail purchases — all from their cars’ connected dashboards.

——————————–

Latest Insights: 

With an estimated 64 million connected cars on the road by year’s end, QSRs are scrambling to win consumer drive-time dollars via in-dash ordering capabilities, while automakers like Tesla are developing new retail-centric charging stations. The PYMNTS Commerce Connected Playbook explores how the connected car is putting $230 billion worth of connected car spend into overdrive.

https://www.pymnts.com/news/retail/2019/food-retail-connected-vehicles/

Food Helps Drive Retail Aspects of Connected Vehicles

https://www.pymnts.com/news/retail/2019/food-helps-drive-retail-aspects-of-connected-vehicles/
http://securecdn.pymnts.com/wp-content/uploads/2019/06/Self-Driving-Florida-Car-1000x600.jpg?#

The connected vehicle ecosystem is taking shape, and that is bring new opportunities to retail. But challenges remains, not the least of which include securing the emerging ecosystem for those connected cards and trucks.

Among the latest developments from the retail side of the ecosystem comes from the world of QSRs.

Cars and quick-service restaurants (QSRs) have been interconnected since drive-ins were the latest innovation. QSRs thrive on speed and convenience, and that once meant catering to customers in cars via drive-thru windows.

QSR Innovation

Now cars have transformed from vehicle to ordering platform, and QSRs have been on the forefront of this transformation.

Consumers increasingly rely on mobile for ordering food, and in-car connected services are making this behavior even easier. According to the PYMNTS Commerce Connected Playbook, mobile usage in-car is already common, especially at QSRs: One quarter (25 percent) of drivers are already on their phones when pulling into drive-thru lanes. And ordering food while driving is one of the most common connected activities per PYMNTS’ Digital Drive report. More than one-third (35.3 percent) of commuters had ordered food and picked it up at a drive-thru in the past week, while a slightly lower number (33.4 percent) had ordered and picked up coffee the same way.

Most commuters in the Digital Drive report used voice assistants provided by the auto manufacturer (64.9 percent). Accessing Amazon’s Alexa (13 percent) and Google Assistant (12 percent) through the dashboard were far less popular. But in-dash Google Assistant had a good deal of future interest: 31.9 percent said they would engage in commuter commerce if this option was available.

Just a few months ago, Domino’s announced a partnership with Xevo to launch a pizza-ordering platform via dashboard touchscreen that will be preloaded in cars this year. Domino’s had already enabled in-car ordering with Ford’s Sync AppLink back in 2014.

Pizza chains are often early adopters, partly because consumers are accustomed to ordering pizza by phone instead of while physically at a store. In fact, Pizza Hut’s claim to fame is that it sold its first online order way back in 1994.

Commerce Wave

This is just the beginning of a new wave in digital commerce; 64 million shipments of connected cars are forecast for 2019, up from 33 million in 2017. By 2020, nearly all (98 percent) new cars will offer internet and cellular and wireless connectivity.

Security, though, remains an issue for connected vehicles. Indeed, in a new survey, 61 percent of consumers indicated they were not aware that hackers could potentially gain control of a connected vehicle — an issue of perception that could come into play during a data breach. “The research also found that 65 percent of connected vehicle owners believed — incorrectly — that vehicle manufacturers must inform owners of software and security updates,” according to the report from Auto Remarketing.

“The study also showed that the younger the survey participant, the lower his or her perception of the security threat of connected vehicles. Fifty four percent of 18- to 29-year-olds saw connected cars as a minimal threat, compared to 42 percent of all respondents,” according to that publication.

Making consumers feel secure in their connected vehicles will have significant impacts for the retail opportunity — so will making sure those cars and truck offer seamless payment experiences.

As use of the connected car grows, these upgraded vehicles have the potential to serve 135 million commuters who spend an average of 51 minutes driving to and from work every day. After all, PYMNTS research shows that most commuters are interested in using their daily commute times to handle a host of tasks, such as taking phone calls, ordering groceries, paying bills and making other retail purchases — all from their cars’ connected dashboards.

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Latest Insights: 

With an estimated 64 million connected cars on the road by year’s end, QSRs are scrambling to win consumer drive-time dollars via in-dash ordering capabilities, while automakers like Tesla are developing new retail-centric charging stations. The PYMNTS Commerce Connected Playbook explores how the connected car is putting $230 billion worth of connected car spend into overdrive.

https://www.pymnts.com/news/retail/2019/food-helps-drive-retail-aspects-of-connected-vehicles/

Setting The Stage For Better Payments

https://www.pymnts.com/today-in-data/2019/p2p-payments-facebook-ai/
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P2P payments can play a big role in the B2B realm, while artificial intelligence is pulling more weight in the world of fraud. Facebook is seeking more of a voice in digital payments, and work is increasing to solve the payments problem for elective medical procedures.

data

Data:

32 million: Number of consumers who paid for at least one elective medical procedure during a six-month period

$10 million: Investment required for Libra Association membership

Less than 0.1 percent: Visa’s global fraud rate

$50 billion: Potential revenue generated via elective medical procedures if payment plans were offered

50 percent: Portion of corporate transactions still tied to checks

https://www.pymnts.com/today-in-data/2019/p2p-payments-facebook-ai/

Panera Eyes Delivery Opportunity With Dinner

https://www.pymnts.com/news/retail/2019/panera-delivery-dinner/
http://securecdn.pymnts.com/wp-content/uploads/2019/06/panera-danwegiel-QSR-delivery.jpg?#

In an effort that could bring delivery opportunities, Panera Bread has been experimenting with a menu for dinner at a Jacksonville, Florida restaurant. The quick-service restaurant (QSR) is extending the test in July to nine Lexington, Kentucky locations, CNBC reported.

The report noted that dinner is a popular time for delivery orders and pointed out that the chain taps into its own delivery drivers in lieu of teaming with another company. Panera’s Chief Growth and Strategy Officer Dan Wegiel said, according to the outlet, “We definitely saw for delivery an opportunity with dinner, but it flagged as something we could unlock further for sure.”

Over 60 percent of the company’s delivery orders, as it stands, occur at the time of lunch hours. And, while the outlet noted that share could shift in the event the retailer rolls out the dinner menu across the country, Wegiel noted that the main driver for taking on a new strategy was not dinner delivery orders.

Wegiel noted that many diners view the company’s salads, soups and sandwiches as fare that is too light for a dinner meal even though it has created a strong lunch awareness. As a result, the QSR company added options that would be available following 4:30 p.m. that are heartier like bowls and flatbread pizzas. At the same time, however, the meals come with some familiar ingredients: A chipotle chicken and bacon artisan flatbread has the same chipotle mayo as a breakfast wrap and one of its sandwiches.

The news comes as the online food delivery market is booming. Its projected value is set to be in the tens of billions of dollars — $55 billion, to be exact — by 2022, per one estimate. (And the annual value of the space for pizza delivery alone is $7 billion — many slices.) And diners are swapping out the phone call for apps, with 6.6 percent of all restaurant orders coming from digital channels as of 2017. Digital orders outpaced phone orders, which stood at 5 percent, for the first time as well.

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Latest Insights: 

With an estimated 64 million connected cars on the road by year’s end, QSRs are scrambling to win consumer drive-time dollars via in-dash ordering capabilities, while automakers like Tesla are developing new retail-centric charging stations. The PYMNTS Commerce Connected Playbook explores how the connected car is putting $230 billion worth of connected car spend into overdrive.

https://www.pymnts.com/news/retail/2019/panera-delivery-dinner/

Flywire’s Ryan Frere On Circumventing the Bamboo Curtain to Offer Cross Border Payments in China

https://thefintechtimes.com/flywire-cross-border/
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Interview by Kate Goldfinch

How do you evaluate global cross border market (figures, trends, reasons for its growth)?

cross-borderRyan Frere, Flywire

The market for cross border payments is worth over $20 trillion worldwide, with the global education and healthcare markets alone valued at $800bn and $500bn respectively. Businesses and organisations operate internationally as the demand for services and products is high, however these products are becoming more accessible every day. Borders shouldn’t slow money down, it needs to move to keep up with these demands. Education, Healthcare, Travel are all key drivers for international mobility and companies can easily expand their reach through e-commerce and social platforms.

What market share in the global cross border market do you aim for?

This depends on the vertical and size of the market. For education, Flywire is the leader in 5 core destination markets and there’s no reason why we won’t be able to expand further. Healthcare needs are typically domestic first, followed by the need to support cross border transactions. The commercial vertical is very segmented so we’ve expanded into the adventure travel space and will look to gain market share with those companies before expanding more broadly.

Since UnionPay is such a strong brand and the preferred payment option for payers in China, we knew that a relationship with UnionPay would be key to our success with Chinese payers.

The fact is the Chinese ecosystem is very closed. How did you get those partnership with Union Pay?

Since UnionPay is such a strong brand and the preferred payment option for payers in China, we knew that a relationship with UnionPay would be key to our success with Chinese payers. We started by acquiring UnionPay transactions through a global acquirer, based on the early success of the payment method in our solution. We then transitioned to a partnership with Union Pay directly. Both companies place strategic importance on the reliable flow of cross border payments for Education and Healthcare so there is much in common between us and UnionPay. 

What are your main goals in this partnership with Union Pay?

Our goal is to provide the best payment methods for our client’s payers across the globe. Our partnership with UnionPay provides a familiar payment method for Chinese payers that is best in class for cross border payments in Education and Healthcare. This means it creates value around speed, security and cost for our payers and clients. 

How would you describe payments as a process in 5 years (speed, direct, fee etc).? And how do you see the role of your service on the global market?

In 5 years, I’d expect the global movement of funds to be uninhibited irrespective of the markets involved.  Payers will be able to have a local payment experience regardless of where the destination of their payment is. In addition to that, it will be cost effective and transparent. Our service is working towards this future, with our vision being to provide the best marketplace of methods that supports both local in, and local out, in each of our supported markets.

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