Wells Fargo's payments head Modjtabai to retire, names Fischer to lead cards

https://www.mobilepaymentstoday.com/news/wells-fargos-payments-head-modjtabai-to-retire-names-fishcher-to-lead-cards/

Wells Fargo's payments head Modjtabai to retire, names Fischer to lead cards

Wells Fargo & Co. announced a couple of leadership changes in its payments and card business, as Avid Modjtabai will retire as head of the bank’s payments, virtual solutions and innovations group at the end of March 2020.

Modjtabai, a 26-year veteran of Wells Fargo, led the formation of the bank’s PVSI Group in 2016, which brought together its payments, digitization and innovation businesses. During the last three years, her group oversaw the launch of the bank’s control tower, overdraft rewind and the Wells Fargo Propel Card.

“I have been incredibly fortunate to have had so many exciting and fulfilling career opportunities and to have worked with so many extraordinary people in my 26 years of working with Wells Fargo,” Modjtabai said in a company release. “I am pleased that, as I complete my plan for retirement, I will be leaving a company that has such bright prospects and renewed momentum.”

Charlie Scharf, president and CEO at Wells Fargo, thanked her for her service, saying she served as a “catalyst for digitizing and transforming the company.” 

The bank also said that Ray Fischer, senior advisor to the Aries Financial Group, will join the bank to lead cards, retail and merchant services. He previously was vice chairman and administrative officer at the Kessler Group and before that spent 14 years at JPMorgan Chase, where he was CFO of card, merchants services and auto finance. 


 


Topics: Mobile Banking

Companies: Wells Fargo & Co


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Paidy offers Buy Now, Pay Later financing for Amazon purchases in Japan

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Paidy offers Buy Now, Pay Later financing for Amazon purchases in Japan

Paidy Inc., a Japan-based firm that offers installment financing for e-commerce transactions, announced an agreement to its Buy Now, Pay Later service on Amazon purchases in that market. 

Customers using Amazon.co.jp will now have the option of using the extended payments option on purchases made on the Japanese site. 

“We are deeply honored to be working with Amazon to offer a new and unique consumer experience to Amazon customers,” Russell Cummer, founder and executive chairman of Paidy, said in a company release. “We see tremendous potential to work with Amazon and other partners on future innovation, continuing to improve consumer experiences and the payments landscape in Japan.”

Customers need to enter their name, email address and mobile number on the Amazon payment screen, according to Paidy. Amazon customers using Paidy can pay the following month at convenience stores, using bank transfer or direct debit, and there is no need to enter credit card information. 

Billing information is sent to the customer via email or SMS and payment is due by the 10th day of the following month. 

The Amazon announcement comes just three weeks after the company raised $143 million in funding, led by PayPal Ventures.

Cover image: Paidy.


Topics: Mobile Apps, Retail, Transaction Processing

Companies: Amazon


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UK-based gold currency app Glint Pay returns after new investors found

https://www.mobilepaymentstoday.com/news/uk-based-gold-currency-app-glint-pay-returns-after-new-investors-found/

Glint Pay, the U.K.-based fintech that allows users to trade gold currency through a mobile app, will resume business next week after it found 5.7 million pounds ($7.3 million) from new investors and emerged from administration, which is the British equivalent of bankruptcy. 

The firm, which expanded its business to the U.S. in July, entered administration in late September after a dispute with a secured creditor. 

“I would like to thank existing and new shareholders who have backed the company with a fresh injection of financing,” founder and CE0 Jason Cozen said in a company statement. “I understand the frustration of our customers and can only apologize for the inconvenience caused by the dirsruption, which led to accounts being suspended.”

The company said that client funds remain segregated at a tier 1 bank, and physical gold belonging to clients is secured at an accredited Brink’s vault in Switzerland. Lloyds Bank had frozen client accounts as a precaution after the administration filing. 

The Financial Conduct Authority, a U.K. regulatory body, announced earlier this week that the firm had come out of administration and the joint administrators told Mobile Payments Today in a statement that the company would be back up and running by Monday, Nov. 25. 

“We would like to thank Glint’s clients for their patience during what we appreciate must have been a frustrating time,” former Joint Administrator Jason Baker said in an emailed statement. “We have worked closely with the Glint management team and various stakeholders throughout the administration process to ensure that every measure was taken to protect client funds and enable clients to access accounts at the earliest opportunity.”

 

 


Topics: Mobile Apps, Mobile Payments, Region: EMEA, Regulatory Issues


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The Essential Guide to Agile

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The Essential Guide to AgilePublication Type:
White Paper

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The speed and adaptability of Agile development is no longer a competitive advantage. Per the 12th Annual State of Agile Report, 97% of companies practice Agile on some level. In spite of this positive trend, running an effective Agile development process remains very rare. Only 16% of organizations believe they exhibit a high level of Agile maturity.

https://www.mobilepaymentstoday.com/whitepapers/the-essential-guide-to-agile/

Your Key to Combating Bias in AI

https://www.mobilepaymentstoday.com/whitepapers/your-key-to-combating-bias-in-ai/
Your Key to Combating Bias in AIPublication Type:
White Paper

Published / Updated:

There is clearly a lot to gain from AI, but it’s incredibly difficult to achieve AI maturity. It requires immense amounts of data and continual training of the algorithm. While you can manage this on your own, there are many issues that commonly arise during the process. Most common, and potentially the most dangerous, is the bias of your data. If you plan to excel with AI, combating this bias is Priority No. 1.

https://www.mobilepaymentstoday.com/whitepapers/your-key-to-combating-bias-in-ai/

Mobile Payments, More than Just a New Way to Pay

https://www.mobilepaymentstoday.com/whitepapers/mobile-payments-more-than-just-a-new-way-to-pay/
Mobile Payments, More than Just a New Way to PayPublication Type:
White Paper

Published / Updated:

In order to successfully implement mobile payments as a merchant, it is critical to understand all of the complexities that mobile payments create for a business, as well as how to mitigate them.

https://www.mobilepaymentstoday.com/whitepapers/mobile-payments-more-than-just-a-new-way-to-pay/

Balancing payment innovation and trust

https://www.mobilepaymentstoday.com/blogs/balancing-payment-innovation-and-trust/

Balancing payment innovation and trust

Michael Jabbara, senior director, global risk, Visa 

Sixty years ago, the idea that a plastic card was the future of payments would have been perceived quite skeptically, but eventually it became a standard way to pay. Today, there is once again skepticism about the plastic card but for entirely different reasons. As the world shifts to a digital-first mindset, some experts predict the industry will outgrow the plastic card. Regardless of the form of payment, a foundation based on security and enhanced customer trust needs to be established. A recent survey from Forrester Consulting commissioned by Visa confirms that as businesses respond to this digital shift, they need to balance payment innovation with responsible security.

The near-universal adoption of mobile technology and internet connectivity have significantly reshaped consumers’ purchasing behavior and expectations. Companies in the global payments ecosystem (merchants, banks, and fintechs) recognize that payments are a core component of the digital experience and are consequently transforming their operational models to enable digital payments with dynamic security when the card is present at the point of sale. In order to stay relevant in the rapidly changing payment landscape and to enable the future of payments from connected devices of all types, innovation and investment across strategic security initiatives is required. So what is the current status of the North American market and how are firms in the region preparing for a fast-approaching future state?

  • Digitization of payments will accelerate with 62% of surveyed firms in North America expecting consumer use to increase within the next 2 years. As Internet of Things (IoT) expands the consumers’ collection of networked devices beyond the smartphone, they will likely want their connected devices to make seamless, secure payments across multiple merchant channels and payment use cases. This will further accelerate the shift of purchases away from cash and card to stored, digitized payment credentials. 
  • The shift to digital presents complex security challenges. More than half (59%) of respondents believe new payment technologies make their firms more susceptible to fraud. New opportunities for convenience and speed also open up new avenues for criminals to exploit. Malicious actors follow the money and as payment volumes become digitized, criminals will look for vulnerabilities in payment systems, fraud prevention tools, and business logic to exploit.
  • Fraud management capabilities need to evolve to keep pace and realize the digital opportunity. With 64% of North America firms reporting the use of usernames and passwords as their main capability within their payment risk management suite, there is much room for improvement. It is well documented that this form of authentication is insecure. As payments become digital and more sophisticated, fraud management capabilities need to modernize and be more sophisticated to keep pace. And firms that can manage these challenges believe the opportunity is worthwhile, as 71% of respondents believe the benefits of new payment technologies outweigh the risks. 
  • To do so, North American firms are taking a holistic approach to remain on the forefront of payment security with 83% of firms confirming they are investing in hiring talent specializing in fraud/security, 80% investing in new fraud management tools (e.g. biometrics, tokenization, and AI/ML), and 76% leveraging industry standards (e.g. EMVCo’s 3DS protocol) to innovate securely at scale. This is critical since payment security requires a multilayered approach. It typically includes investments in intelligence and technology by using talent and technology to prevent, detect and help decrease threats; adopting governance processes that proactively support and manage key regulatory and risk governance matters; and empowering payment ecosystem stakeholders with tools, resources and control so their customers can make better decisions to manage risk. 
  • Lastly, organizations know that payment security is central to the consumer experience with 54% of North America firms hoping to achieve higher customer satisfaction through improving the security of new payment technologies and 47% use higher customer satisfaction as the measure of success for their fraud detection capabilities. Payment security and consumer experience need to be balanced with each other in order for digital payment growth to continue. 

We are already seeing just how much, and how quickly, technological advancements are affecting payments today. The imperative is not just keeping pace with this technological change, but also being able to manage the risks associated with the change itself to allow digital innovation to scale. The success of an organization in this environment will be dependent on how it aligns its resources to deliver a seamless, secure payment experience to customers in the digital age. 

Cover image: iStock


Topics: Card Brands, Mobile Payments, Security, Trends / Statistics


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Church's Chicken probes data security breach at company-owned sites

https://www.mobilepaymentstoday.com/news/churchs-chicken-probes-data-security-breach-at-company-owned-sites/

Church's Chicken probes data security breach at company-owned sites

Church’s Chicken said it is investigating a possible data breach involving credit and debit card information at some of its company owned locations in the U.S., where it operates quick service restaurants in 11 states. 

The company said an unauthorized third party may have accessed its payment processing systems at some of its 165 restaurants in the U.S., and it has notified federal authorities, credit reporting agencies and retained a cybersecurity forensics firm to probe the incident. The company security update page says the incident took place in 2019 and involved payment card numbers, names and dates. A list of locations possibly affected by the breach is on the site.

“Our company has retained a leading cybersecurity firm to help us determine exactly what happened and what more we can do moving forward to keep our customer’s data secure,” the company said in a statement. “We are also cooperating with federal law enforcement and have notified the payment card networks and credit reporting agencies to mitigate any potential harm to our customers.”

Church’s operates more than 1,500 locations in 25 countries worldwide, however, the incident only impacted some of its 165 company owned locations in the U.S. The company owns restaurants in Alabama, Arkansas, Florida, Georgia, Illinois, Louisiana, Mississippi, Missouri, South Carolina, Tennessee and Texas. 

A spokesperson said that customer payment card data impacted was only at point-of-sale or drive thru locations and not online or on apps. The company website said that orders through third-party delivery apps are run through a separate system and are not impacted. 

Cover image: iStock.


Topics: Card Brands, Mobile Payments, Security

Companies: Church’s Chicken


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4 Challenges with Digital Payments and How to Address Them

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Chipotle adds Alexa ordering

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Chipotle adds Alexa ordering

If your name is Alexa, it’s your lucky day. Not only has Chipotle Mexican Grille partnered with Amazon Alexa to allow any customer to order food via delivery or pickup through Amazon smart speakers, the chain is giving free Amazon Echo Dots to all Chipotle Rewards members named Alexa, according to a company press release.

Chipotle is also rolling out AI-generated voice assistants to all of its 2,500 restaurants, which will give customers to skip the line and pay ahead before they pick-up their meal orders. 

“We always strive to introduce additional access points in the Chipotle ordering experience and overall digital ecosystem,” Nicole West, vice president of digital strategy and product management,  said in the release. “With this new skill for Alexa, our customers can get their favorite orders delivered straight to their door in the most convenient way possible — all they need to do is ask.”

Cover image: Chipotle
 

 


Topics: Mobile Apps, Restaurants

Companies: Chipotle


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Why Aspiration’s funding pool has dried up

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Why Aspiration’s funding pool has dried up

Aspiration, a Los Angeles-based neobank backed by high-profile investors that include actor Leonardo DiCaprio and Orlando Bloom, is finding it difficult to raise funds and cut about 15% of its workforce last month, according to a report by CNBC.

Investors are cooling down on certain start-up ventures following the recent investment debacle at WeWork, according to the report, which said that Aspiration has run into some difficulty gaining traction on a new round of funding.

The neobank has previously raised $110 million from venture funds and celebrity investors and was reportedly looking to raise another $200 million earlier this year and a $1 billion valuation. 


Topics: Mobile Banking, Venture Capital


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American Express study shows increase in online payment fraud

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American Express study shows increase in online payment fraud

American Express issued a report showing that 77% of merchants reported being victim of some type of fraud, adding that efforts to mitigate those risks are impacting their bottom line. 

The report showed that online fraud has increased a great deal over the past year, with 27% of online sales are fraudulent transactions, up from 18% a year ago. 

In addition, 82% of merchants say their businesses are vulnerable to fraud from mobile transactions, compared with 73% a year ago, while 79% are vulnerable from online transactions, compared with 75% a year ago and 66% from point-of-sale transactions, up from 55% a year ago. 

“The 2019 Digital Payments Survey shines a light on the most pressing needs of our merchants and customers and the findings about the battle between convenience and security are striking,” Jarimir Divilek, executive vice president, American Express, said in a company release. 

The report also shows that 42% of consumers have suffered a fraudulent attempt to use their credit cards, while 59% are worried about fraud when making an online purchase. 

Cover image: American Express


Topics: Card Brands, Security, Trends / Statistics

Companies: American Express


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Galileo, Mastercard launch program to rapidly issue debit cards to companies

https://www.mobilepaymentstoday.com/news/galileo-mastercard-launch-program-to-rapidly-issue-debit-cards-to-companies/

Galileo, Mastercard launch program to rapidly issue debit cards to companies

Galileo Financial Technologies Inc. announced the launch of Galileo Instant Issuing, a collaboration with Mastercard to allow the company to provide fintechs and other businesses to quickly open bank accounts and issue white-labeled debit cards without long-term contracts and startup fees. 

Galileo CEO Clay Wilkes said the program is designed to let gig economy companies, fintechs and other firms quickly scale card programs that they can use to rapidly pay and manage funds for vendors, workers and others who need to have transactions completed in a fast and seamless manner. 

It’s intended to change the dynamics in allowing companies to issue payment cards and open bank accounts in an environment that can be rolled out quickly. 

“It takes a long time and costs a lot of money to let’s say be an issuer of one of these products today,” he told Mobile Payments Today in an interview. “But there are a lot people, of companies that don’t want to do any of that, they are not payment companies, they just want to make a payment.”

The Galileo dashboard provides the ability for companies to immediately gain access to a sandbox environment where companies can quickly set up a payment card environment out of the box. The portal provides access to Galileo’s suite of APIs and production environment for approved card accounts. 

The collaboration with Mastercard is connected to the card company’s Mastercard Accelerate program that it announced in October, which is designed to help fintechs get started and scale their businesses through a single point of entry.

Galileo is the processor behind some of the world’s largest fintech companies, including Varo Money, Robinhood, Chime and other firms. The company said it has fully recovered from the October disruption that impacted a small percentage of its clients, including Chime and Varo. 

Cover image: Galileo. 


Topics: Card Brands, Mobile Payments, Transaction Processing

Companies: Galileo Processing, MasterCard


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Brazilian challenger bank Neon raises $95M in record Series B

https://www.mobilepaymentstoday.com/news/brazilian-challenger-bank-neon-raises-95m-in-record-series-b/

Brazilian fintech Neon Pagamentos raised $95 million (R400 million) from General Atlantic and Banco Votorantim to accelerate the company’s growth and raise its brand presence outside of the Rio-Sao Paolo corridor, an investment that officials claim is the largest Series B investment in the history of that country.

Neon is an app-based Brazilian challenger bank founded in 2016 which provides qualified customers with a credit card and allows them to make investments and transfers to other banks.

“This new fundraising rounds off our business model and gives us the strength to keep growing at an even more intense pace and to invest even more in technology and marketing,” Pedro Conrade, partner and founder of Neon, said in a release from General Atlantic. 

Neon raised $22 million (R72 million) in May 2018 in a Series A round led by San Francisco-based Propel Venture Partners, Brazilian venture capital firm Monashees and Quona Capital. The funding round was backed by Omidyar Network, a fund from eBay founder Pierre Omidyar, Tera and Yellow Ventures. 

Cover image: Neon.

 


Topics: Mobile Apps, Mobile Banking, Region: Americas, Venture Capital


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PayPal to acquire digital shopping and rewards platform Honey for $4B in cash

https://www.mobilepaymentstoday.com/articles/paypal-to-acquire-digital-shopping-and-rewards-platform-honey-for-4b-in-cash/

PayPal Holdings Inc. entered a $4 billion cash agreement to buy Honey Science Corp., a technology platform that helps merchants develop targeted shopping and rewards for their customers.

The Los Angeles-based firm, which has 17 million monthly active users and 30,000 online merchant partners, provides a mobile shopping assistant, rewards program and other tools to help retailers provide discounts and rewards to their customers. 

PayPal officials said the acquisition, one of the largest in the history of the company, would be transformative to its business model.

“It enables a large step forward in our commitment to provide powerful services and tools for merchants and consumers, move beyond our core checkout proposition and significantly enhances the commerce experience for our 300 million total customers,” PayPal CEO Dan Schulman said on a conference call late Tuesday.

The company will continue to operate under its own brand from its Los Angeles headquarters, and co-founders George Ruan and Ryan Hudson will continue to run Honey’s day to day operations as part of PayPal’s global consumer product and research organization, reporting to Jon Kunze, a senior vice president at PayPal.

“By joining forces, Honey will be able to build products faster, connect with more merchants, and most importantly, help people save money on a massive scale,” Ruan and Hudson said in a blogpost. 

PayPal officials said that Honey will allow it to drive adoption to the PayPal and Venmo user platform by developing personalized offers from its 24 million merchant accounts that accept the cards, giving their customers the ability to get unique discounts, rewards and other incentives to make purchases. 

Honey works with major retail brands, including Walmart, Priceline, Etsy, Expedia, Macy’s, Sephora and others. The company had revenue of more than $100 million in 2018 and operated with a profit. 

Schulman said that with the new acquisition, PayPal plans to “simplify the digital shopping experience, while making it easier for consumers to discover new products, while saving time and money.”

He said PayPal plans to optimize the commerce experience across channels and devices. 

The acquisition is scheduled to close in 2020. PayPal officials said the Honey acquisition will be accretive to its growth next year and it will update its earnings forecast. 

Cover image: PayPal.
 

 

https://www.mobilepaymentstoday.com/articles/paypal-to-acquire-digital-shopping-and-rewards-platform-honey-for-4b-in-cash/

ACI Worldwide launches public cloud collaboration with Microsoft Azure

https://www.mobilepaymentstoday.com/news/aci-worldwide-launches-public-cloud-collaboration-with-microsoft-azure/

ACI Worldwide launches public cloud collaboration with Microsoft Azure

ACI Worldwide announced an agreement with Microsoft Corp. to collaborate on using public cloud infrastructure to store data from banks, fintechs and other financial companies. 

Per the agreement, ACI will license its Universal Payments technology to customers for implementation powered by Microsoft Azure cloud computing service. ACI said its on-premises customers will benefit from enhanced security, as well as reduction in long-term capital expenditure, adopting a scalable model for cloud-based infrastructure.

“A key theme we keep hearing from clients is that they are looking for ACI to make the journey to the cloud easy for them, and our partnership with Microsoft is a key part of this journey,” Ciaran Chu, payments cloud lead at ACI Worldwide, told Mobile Payments Today via email. “We have a number of mutual clients who will gain value in their journey to the cloud through the ACI and Microsoft collaboration.”

Chu said that ACI’s first global Tier 1 bank went live with the Azure collaboration last week and a second client is on schedule to go live during the first half of 2020. 

Cover image: iStock


Topics: Mobile Banking, Technology Providers

Companies: ACI Worldwide


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Mastercard announces partnership with Meridiam on contactless investment for public transit

https://www.mobilepaymentstoday.com/news/mastercard-announces-partnership-with-meridiam-on-contactless-investment-for-public-transit/

Mastercard announces partnership with Meridiam on contactless investment for public transit

Mastercard previously worked with Sydney, Australia on contactless payment for ferries and light rail systems.

Mastercard announced the launch of a global alliance to upgrade mass transit systems for contactless payment adoption, rolling out a partnership with France’s Meridiam SAS, which will work with the card company to finance digital ticketing infrastructure projects in North America. 

The agreement combines Mastercard’s expertise in digital technology with Meridiam’s expertise in financing and developing public infrastructure projects and will help implement smart payment systems. The two companies will work together over the next few months to identify cities looking to enhance their urban mobility systems. 

Mastercard said the partnership marks the first initiative under the City Possible partnership announced in 2018 that will help major cities make enhancements to their transit systems. 

“Collaboration is the lifeblood of City Possible,” Miguel Gamino, executive vice president, enterprise partnerships and head of global cities at Mastercard, said in the press release. “Today’s announcement represents such a collaborative approach that matches cities’ needs with financing resources, our technology and expertise.”

Mastercard has previously helped implement digital payment systems in public transit projects in New York, London, Singapore, Dubai, U.A.E., Sydney, Australia and Bogota Columbia.

Meridiam previously helped back the ION Light Rail in Waterloo, Canada, a $910 million highway project in North Texas and a 600 million euro ($664 million) deal to to help develop Sofia Airport in Bulgaria. 

Cover image: Mastercard.


Topics: Card Brands, Mobile Payments, Region: Americas, Venture Capital

Companies: MasterCard


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JD Power says small businesses want better credit card rewards, benefits

https://www.mobilepaymentstoday.com/news/jd-power-says-small-businesses-want-better-credit-card-rewards-benefits/

JD Power says small businesses want better credit card rewards, benefits

While small business credit cards are generally getting high marks from their customers, they are falling short in a key area that involves terms, rewards and benefits provided by those cards, according to an inaugural study by J.D. Power. 

Discover gets the highest customer satisfaction scores among small businesses, followed by American Express and Bank of America. 

The report, called the J.D. Power U.S. Small Business Card Satisfaction Survey, shows that small businesses are much more satisfied than consumers regarding their respective credit cards, however ,small businesses are not that happy with the rewards offerings, benefits and overall terms they get from these targeted cards. 

“Some of the lowest satisfaction is in the areas of the amount of rewards earned per dollar and the range of benefits offered,” John Cabell, director of wealth and lending intelligence at J.D. Power, told Mobile Payments Today via email. “There is probably both a mix of actual gaps in these offerings, but also in the issuers effective communications of these features.”

The report warns that small businesses are more than twice as likely as consumers to switch cards and Cabell said that improved benefits and rewards as well as higher credit limits are among the main reasons for switching. 

The report also shows that 80% of small business customers have used online tools to interact with the card over the past three months, while 69% have used mobile devices to use their cards. 

Cover image: iStock


Topics: Card Brands, Trends / Statistics

Companies: Discover Financial Services, American Express


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Citi launches high-yield digital checking account with no ATM fees

https://www.mobilepaymentstoday.com/news/citi-launches-high-yield-digital-checking-account-with-no-atm-fees/

Citibank announced the launch of Citi Elevate Checking, a digital high-yield checking account that pays up to 1% for high balance accounts and offers unlimited ATM reimbursements. 

The checking account allows customers to do their banking through the Citi mobile app or online banking portal instead of the physical branch, however, Citi will reimburse unlimited ATM fees and has a network of 66,000 ATMs nationwide. The bank will also waive a monthly fee for average monthly account balances above $5,000. 

“With ATM fees climbing to record levels, we saw an opportunity to provide customers with two very useful benefits — no ATM fees and an interest rate that’s up to 12 times the national average,” Harp Rana, Head of U.S. Deposit Products at Citibank, said in a company release. “It’s a win-win offering that couples our leading digital capabilities with nationwide convenience and value.”

Rana calls it the most compelling all-around digital checking account in the market available today.

The yield on account balances is as follows:

  • For balances above $25,000, Citi Elevate pays 1%.
  • For balances between $10,000-$25,000, Citi Elevate pays 0.4%.
  • For balances below $10,000, Citi Elevate pays 0.2%.

 


Topics: Mobile Apps, Mobile Banking

Companies: Citi


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Bluevine Capital raises $102.5M to scale business banking platform

https://www.mobilepaymentstoday.com/news/bluevine-capital-raises-1025m-to-scale-business-banking-platform/

Bluevine Capital raises $102.5M to scale business banking platform

Bluevine Capital Inc. said it raised $102.5 million in a Series F funding round led by ION Crossover Partners to help scale its business banking platform. 

The funding was backed by several new investors, including MUFG Innovation Partners Co., O.G. Tech — Eyal Ofer’s VC, Vintage Investment Partners, ION Group, Maor Investments and other private investors.

Bluevine announced last month the Bluevine Business Checking Account, a zero-fee, mobile checking account for small business, which pays 1% interest. 

“The recent launch of Bluevine checking demonstrates our commitment to revolutionize banking for small business owners with a full suite of services designed specifically to meet their unique needs,” Eyal Lifshitz, CEO and co-founder of Bluevine, said in the press release. “This funding further validates our mission and will help democratize true business-grade banking for small businesses who have been underserved for so long.”

The company will use the new funding to further develop business banking features, including integrations with Bluevine’s line of credit, invoice factoring and term loan, which the company said have already provided $2.5 billion to a total of 20,000 small businesses since the company launched in 2013. The funding will also be used to hire additional people in engineering, product and revenue departments.

The new funding was assisted by all existing investors, including Lightspeed Venture Partners, Menlo Ventures, 83North, SVB Capital, Nationwide, Citi Ventures, Microsoft’s M12 venture fund and other private investors.

Cover image: Bluvine.


Topics: Mobile Banking, Venture Capital

Companies: BlueVine Capital Inc.


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