Klarna to Power Invoice and Credit-Based Payments for Worldpay Clients

Global payments company Worldpay and online payments innovator Klarna are joining forces this week. Starting today, Worldpay clients in Austria, Finland, Germany, the Netherlands, Norway, Sweden, and the U.K. will be able to use Klarna’s invoice and credit-based payments.

The new capabilities will enable Worldpay’s ecommerce business clients to offer shoppers new payment options that will allow consumers to decide how and when to pay for the goods after they receive them. Consumers can manage the terms of their payment, opting for a 14-day payment by invoice, fixed, or flexible installments, or choosing to spread the cost over several months. The new checkout experience does not request payment credentials at the point of checkout, but rather requests only their email address and postal code. This offers a faster checkout experience and helps retailers improve conversion rates by 20%.

With consumers turning to online shopping to fulfill not only their gadget and clothing needs but also for daily grocery and sundry items, ecommerce is more popular than ever. And with so many players flooding the market, retailers are facing increased competition. Implementing Klarna’s fast and flexible payments options allows ecommerce players to differentiate themselves and compete on more than just free shipping.

Worldpay is one of the first companies piloting Klarna’s new payment technology. The company notes that, because there is no plug-in, the service is easy to integrate and results in faster time-to-market. Additionally, risk management is taken care of. According to Michael Rouse, Klarna’s Chief Commercial Officer, “Klarna assumes responsibility for managing credit and fraud risks, allowing companies to quickly receive payment for orders, and allowing consumers to pay only if they’re happy with their purchase.”

Dave Glaser, Chief Product Officer of Global eCom at Worldpay said that the company is “seeing increased demand from customers wishing to create more reasons to shop with them over their competitors.” Because some merchants consider accepting credit card payments “risky” and “old fashioned,” Glaser noted that “being able to adapt to new and local payment preferences is a way to rectify this.” He added, “We believe that this solution will empower companies to see a real increase in sales.”

Founded in 1989, Worldpay presented at FinDEVr Silicon Valley 2016 about the payment journey. The company offers payment products and services to a client base of 400,000. Worldpay’s technology can process payments from 146 countries and 126 currencies, enabling customers to accept more than 300 different payment types. Earlier in the fall, the company built an SDK for IoT shopping and this summer Worldpay agreed to merge with U.S. credit card processor Vantiv in a $10 billion deal.

Klarna demonstrated its online payment-processing service at FinovateSpring 2012. In August, the company launched a free P2P payments service called Wavy. Earlier this year, Klarna acquired online payment provider BillPay from Wonga for $75 million.

Worldpay Makes Strategic Contribution to Featurespace’s $21.9 Million Funding Round

Behavioral analytics company Featurespace has raised $21.9 million today. The round was led by Highland Europe and supported by Worldpay, Touchstone Innovations, Invoke Capital, and existing investors. Today’s investment brings the company’s total funding to $38.3 million.

Global payments company Worldpay will play a strategic role in the investment as well, forming a technology partnership with UK-based Featurespace. According to the agreement, Featurespace will leverage behavioral analytics to power risk management and fraud prevention services for Worldpay’s merchant clients. Atlanta-based company Worldpay will also use Featurespace’s technology to enhance its own capabilities in the development of Intelligent Payment Services.

Mark Kimber, Chief Information Officer at Worldpay, said that the company is “confident that this partnership will deliver superior outcomes for our customers, by preventing more fraudulent transactions whilst reducing the number of genuine transactions that are declined.” Kimber added, “We’ve been incredibly impressed by the evolution of this business and believe it has the potential to grow significantly. With our investment in the company, we are looking forward to supporting the Featurespace team as they grow their business and capabilities.”

At FinovateFall 2016, Featurespace demonstrated its ARIC Fraud Manager that understands the real-time behavior of each customer, then uses machine learning to prevent fraud by pinpointing anomalous behavior. The company’s clients — including Vocalink/Zapp, William Hill, and TSYS — have deployed products and services in more than 180 countries. In August, Featurespace was selected by the International Air Transport Association (IATA) to power the organization’s fraud prevention solution. Earlier that month, the company teamed up with PwC to offer the firm’s clients a solution for combating financial crime risk.

Founded in 1989, Worldpay presented at FinDEVr Silicon Valley 2016 about the payment journey. The company offers payment products and services to a client base of 400,000. Worldpay’s technology can process payments from 146 countries and 126 currencies, enabling customers to accept more than 300 different payment types. Earlier this summer, Worldpay agreed to merge with U.S. credit card processor Vantiv in a $10 billion deal.

Finovate Alumni News

On Finovate.com

  • More than $1 billion raised by 31 Finovate alums in Q3 2017.
  • Worldpay Makes Strategic Contribution to Featurespace’s $21.9 Million Funding Round.
  • HooYu to Provide ID Confirmation for UK’s Cars-as-a-Service easyCar Club.

Around the web

  • Actiance helps FinServ companies meet toughest MiFID II compliance challenges.
  • Finews.Asia features Finantix’s AI solution for wealth management.
  • Gemalto and Ledger join forces to provide security infrastructure for cryptocurrency based activities.
  • The Charlotte Observer names Jack Henry & Associates to Top Workplaces list for third consecutive year.
  • Diebold Nixdorf expands managed services portfolio with new offerings.
  • Kasasa now 5th largest banking branch network

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Ripple Selects Singapore for New Asia Office.
  • ayondo Remains a Private Company after Reverse Takeover Bid Lapses.

Around the web

  • nCino opens office in London, positioning itself for continued international growth.
  • Inetco adds data access options.
  • WorkFusion teams with Virtusa to Launch AI-Powered Bank Sanction Screening Solution.
  • InComm Continues Nationwide Expansion of Tolling and Transit Program.
  • In the face of consumer skepticism, Worldpay develops SDK for IoT shopping.
  • AutoGravity Surpasses $1 Billion USD In Finance Amount Requested, Launches Real-Time Dealership Inventory Nationwide.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Worldpay Ships New Features for Worldpay Total

Global payments company Worldpay released a handful of new features this week for its Worldpay Total platform, an API-based omni-channel payments solution for card-not-present (CNP) merchants. This comes just 10 months after the platform was launched.

The new features are not only aimed at existing users, but Worldpay also hopes to leverage the tools to access new markets, including CNP and Windows-based merchants. “We know the payments landscape is ever-changing, so Worldpay Total must change with it,” said Ian Van Buskirk, vice president of product strategy at Worldpay US. “These new features will improve the process for customers and merchants, providing customers with more payment options – whether in-store or online – and providing merchants with an enhanced suite of omni-channel capabilities.”

The five new features include:

  • Account Updater: Automatically verifies that the system of record contains accurate customer payment information.
  • CAT Kiosks: Reduces wait times in checkout lines with an unattended, computer assisted terminal (CAT) kiosk that offer products and accept payments anywhere customers want to shop and buy.
  • Dynamic Descriptors: Offers customers richer receipt detail when merchants submit unique business names and MCC codes for each transaction.
  • Quick Chip Technology through Windows IPC: Significantly decreases in-terminal transaction times for Windows-based merchants by leveraging Quick Chip technology, a chip card payment processing upgrade.
  • Digital Wallets: Allows online shoppers to check out faster on any device and pay securely with just a username and password using Visa Checkout. Worldpay Total will soon support additional digital wallets, including Masterpass and One Touch.

This development comes less than a month after Worldpay announced it agreed to be acquired for $9.9 billion by credit card processor Vantiv. Founded in 1991, Worldpay processes more than 31 million transactions per day, or around 400 per second. The company supports 400,000 merchants in 126 currencies across 146 countries and processes about 42% of all transactions in the U.K. Worldpay has 5,000 employees in 25 offices located in 11 countries around the world.

At FinDEVr Silicon Valley 2016, Worldpay’s Abe Gandara, Sr. Solution Consultant presented It’s Not Just about Getting Paid, It’s about the Payment Journey. Earlier this spring, Worldpay partnered with Preoday to include the company’s integrated online ordering and payment solution in its offerings.

Finovate Alumni News

On Finovate.com

  • Lendio’s Marketplace surpasses $500 Million in Loans.
  • Worldpay Ships New Features for Worldpay Total
  • Braintree Tops A Billion Transactions Per Quarter Mark

Around the web

  • Temenos Marketplace now hosts Moroku’s Chore Scout.
  • TransferWise links with Apple Pay globally.
  • Vasco names Scott Clements president and CEO.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Holy Transatlantic Transactions! Vantiv to Merge with Worldpay in $10 Billion Deal

Smack dab in the middle of an otherwise sleepy fintech summer is the blockbuster news that U.S. credit card processor  Vantiv has agreed to merge with fellow Finovate/FinDEVr alum, Worldpay. The deal is valued at $9.9 billion, and Vantiv reportedly edged out J.P. Morgan in the pursuit of the U.K. payments company. J.P. Morgan is Worldpay’s corporate brokerage firm.

The terms of the deal call for Vantiv to pay 385 pence per share: 55 pence in cash – 0.0672 of a new Vantiv share – and a 5 pence cash dividend per Worldpay share. The amount represents a premium of nearly 19% on the $4.8 billion company’s Monday closing share price.  The new company will be led by Vantiv’s Charles Drucker and Worldpay’s Philip Jansen.

Reuters quotes analysts at Cowen and at Berenberg suggesting that Worldpay’s e-commerce business is the chief prize in the merger. Cowen analysts pointed out the lack of non-North American exposure for Vantiv, as well as its “excessive exposure to the offline U.S. market.” Worldpay supports more than 400,000 merchants in 126 currencies in 146 countries and is a major player in the payment processing market in the U.K. Vantiv is America’s biggest merchant acquirer by transaction volume. Combined, the new company’s reach extends from the U.K. and the U.S. to Europe, South America, and the Asia-Pacific region.

Vantiv demonstrated TriPOS, a next generation payment integration payment solution at FinovateFall 2014. Headquartered in Cincinnati, Ohio, Vantiv partnered with fellow Finovate alums, Malauzai Software and OnDot to help launch a PFM solution, Family Manager, SmartKid Control, in May. Also this year, Vantiv acquired B2B workflow automation specialist, Paymetric. Vantiv is a veteran of our developer’s conference, having presented “The Evergreen Developer Solution – triPOS Cloud” at FinDEVr New York this spring. Publicly traded on the NYSE under the ticker “VNTV” since the spring of 2012, Vantiv has a market capitalization of more than $11 billion.

Worldpay presented “It’s Not Just About Getting Paid, It’s About the Payment Journey” at our developer’s conference in Silicon Valley last fall. Founded in 1991 and based in London, U.K., the company went public in the fall of 2015, trading on the London Stock Exchange. Last month, Worldpay announced that it was testing payments in the virtual reality space, and in January, the company partnered with UnionPay for bumper Chinese New Year.

 

Finovate Alumni News

On Finovate.com

  • TSYS and Featurespace to Provide New Fraud Fighting Solution, Foresight Score.
  • Holy Transatlantic Transactions! Vantiv to Merge with Worldpay in $10 Billion Deal.

Around the web

  • Kashoo celebrates earning the #2 spot in PC Mag’s accounting software ranking.
  • BancPass, makers of the PToll app, hire John Freund as President.
  • Capsilon partners with Optimal Blue to enhance its mortgage PoS solutions.
  • International Business Times quotes Finicity co-founder Nick Thomas.
  • Flybits CEO Hossein Rahnama named to Canada’s Top 40 Under 40 for 2017.
  • Pendo Systems CEO Pamela Pecs Cytron discusses extracting insights from unstructured data at MarketWatch.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinDEVr APIntelligence

Our first developers conference in the U.K. is next month. Join us for two days of developer-focused presentations, demonstrations, and conversations at FinDEVr 2017 London, June 12 and 13. Stop by our registration page today and save your spot.

On FinDEVr.com

  • Trulioo and the Regtech Revolution: How Smaller Teams Tackle the Compliance Challenge.
  • Inside BBVA’s Open API Marketplace

Alumni updates

  • NuCypher earns finalist spot in BBVA Open Talent 2017. Join NuCypher at FinDEVr London, Jun 12 & 13.
  • Expensify exceeds 35,000 global customers, adding Xero, HappyFresh, GoCardless, and Adroll as clients
  • Cisco and IBM team up on security.
  • Glenmede taps IHS Markit for data management.
  • Bank of Sydney replaces its digital banking platform with DigitalAccess from Fiserv.
  • eWise integrates its Aegis data aggregation platform into Backbase’s Open Banking Marketplace.
  • Xero Partners with Expensify for In-House Expense Management.
  • PYMNTS.com features The CardLinx Association’s success.
  • Xero expands online-invoice payment options in Xero for Australia.
  • Worldpay tests payments in virtual reality

Stay current on daily news from the fintech developer community! Follow FinDEVr on Twitter.

Finovate Alumni News

On Finovate.com

  • Xero Partners with Expensify for In-House Expense Management.
  • Kony and Diebold Nixdorf Enter into Strategic Partnership.
  • banqUP Previews its Bank-as-a-Platform Solution for European SMEs
  • Inside BBVA’s Open API Marketplace.

On FinDEVr.com

Around the web

  • PYMNTS.com features The CardLinx Association’s success.
  • Xero expands online-invoice payment options in Xero for Australia.
  • Zopa introduces flexible Innovative Finance ISA.
  • NelsonHall’s ‘Digital Transformation Services NEAT’ report lists NIIT Technologies as an ‘Innovator’.
  • Worldpay tests payments in virtual reality
  • Misys to power corporate banking, treasury and capital management (TCM) and trade finance operations for Amsterdam Trade Bank.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.