Mastercard Teams Up with Worldpay to Launch ‘Pay by Bank’ in the U.K.

Mastercard Teams Up with Worldpay to Launch ‘Pay by Bank’ in the U.K.

With Pay by Bank, Mastercard and Worldpay are making it easy for shoppers in the U.K. to pay directly from their bank account when purchasing goods and services online. The technology, originally developed by Zapp (which was a division of VocaLink, a company Mastercard acquired in 2016) is expected to be available to customers of HSBC in the second half of 2018. Additional customers will be added later in the year, with new merchants to be added starting early in 2019.

“This is the latest way we’re able to deliver on consumer’s expectations, whether they’re shopping online or paying for utilities,” Mark Barnett, president of Mastercard U.K., Ireland, Nordics, and Baltics. “(Pay by Bank) is set to play a big role in U.K. digital commerce as more banks and merchants offer this as a payment option to millions of their customers.”

The initiative and partnership is also likely to play a big role in Mastercard’s ability to participate in the U.K. debit market, where Visa is common. The agreement will also enable Mastercard to leverage Worldpay’s strong market share in the U.K.

“Through this partnership, Worldpay and Mastercard will help expand payment acceptance options for U.K. consumers and retailers by leveraging account-to-account payments technology with Mastercard’s Pay by Bank app,” Chief Strategy and Marketing Officer for Worldpay Kevin McCarten said. “This – combined with our joint efforts in making digital payments even more convenient and secure globally – creates a powerful partnership that benefits all payments stakeholders.”

Some of the technical features of the new solution include support for EMVCo’s Secure Remote Commerce (SRC), a framework that provides a consistent payment experience for consumers, as well as Mastercard’s Digital Enablement Service which uses a token for enhanced payment security as opposed to a card’s primary 16-digit account number. Worldpay will also take advantage of Mastercard’s MoneySend to enable merchants to get settlement payments to Mastercard debit cards faster.

Mastercard partnered with Vipera for a demonstration of SME Pay at FinovateEurope 2018. SME Pay is a mobile payment solution geared specifically toward small business owners. The technology gives business operators the ability to control how and when company payment cards are used, and includes capture features to make record-keeping and expense reporting easier.

The company made its most recent solo appearance at a Finovate conference the previous year at FinovateFall 2017, where it demonstrated its Cash Pick-Up solution. The technology enables a wide variety of disbursers – from P2P providers and corporate entities to NGOs and government agencies – to deliver cash to consumers through enabled ATMs without requiring a card. In addition to helping serve the underbanked, the solution can be used for emergency funds when cards are lost or stolen, P2P payments, or even for disaster relief. Trading on the New York Stock Exchange under the ticker “MA,” Mastercard has a market capitalization of $213 billion. The company was founded in 1966 and is headquartered in Purchase, New York.

Worldpay participated in our developers conference, FinDEVr Silicon Valley 2016. The company’s presentation, It’s Not Just About Getting Paid, It’s About the Payment Journey, discussed the importance of implementing a “consumer friendly buying journey” when it comes to growing sales. Worldpay provides technology-led payment products and services to more than 400,000 customers using more than 300 different payment types. Founded in 1989 and headquartered in London, U.K., Worldpay merged with Vanitv at the beginning of the year in a deal valued at $10 billion.

Finovate Alumni News

On Finovate.com

  • ACH Alert Reports Record Growth, Stops More than $388 Million in Fraudulent Transactions.
  • Mastercard Teams Up with Worldpay to Launch Pay by Bank in the U.K.

Around the web

  • NetGuardians becomes a certified Avaloq software partner for real-time fraud prevention.
  • Temenos inks multi-year investor servicing contract with Northern Trust.
  • Worldline picks up PISP and AISP licenses from National Bank of Belgium.
  • Enveil earns Standard Technology Partner status in Amazon Web Services partner network.
  • Lleida.net credits new GDPR legislation in the EU for surge in sales for first half of 2018.
  • Equifax acquires specialty credit reporting agency DataX.
  • CFE Federal Credit Union implements Larky’s Engagement Platform.
  • Ledger launches Ledger Live, the all-in-one companion app to your Ledger device.
  • Xero integrates with BBVA’s API Market for small businesses.
  • Lendio expands the Lendio franchise in Rochester, New York.

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.

Strands, Mastercard to Develop Cash Management Platform for SMEs

Strands, Mastercard to Develop Cash Management Platform for SMEs

Strands and Mastercard are working together to provide issuing banks with an integrated platform of digital cash management and commercial payment tools designed for SMEs, reports Antony Peyton of FinTech Futures (Finovate’s sister publication).

According to the duo, Strands’ business financial management (BFM) will use Mastercard’s digital payment technology to deliver solutions to these businesses to understand their finances, project short-term cash flow and see personalised recommendations for customised solutions.

“SMEs are the backbone of the global economy and represent one of the biggest potential sources of revenue for banks; yet they are typically offered banking solutions designed with the retail customer in mind. Our in-house research shows that 61% of SMEs place cash flow management as one of their top three priorities to help them secure their financial future,” said Erik Brieva, Strands’ CEO.

Strands’ BFM solution helps manage accounts payables, receivables, budgets and provisions and is powered by a layer of artificial intelligence (AI) and machine learning models.

For example, SME users can predict income, expenses, forecast balances, receive alerts and notifications, and recommend products and/or services.

Going forward, Strands adds that users of this BFM platform will also have access to Mastercard In Control, which can help businesses track the use of commercial credit cards, Mastercard Merchant Match Tool to identify merchants that accept credit cards as a form of payment or Mastercard Easy Savings to provide loyalty rewards at select merchants and retailers.

Strands has done more than 600 bank implementations with over 100 million customers in 36 countries. Clients include Barclays, BBVA, Santander, Commercial Bank of Africa, Deutsche Bank, and Huntington.

Founded in 2004 and headquartered in Barcelona, Spain, Strands demonstrated its white-label BFM solution at FinovateAsia 2017. The technology leverages Strands’ API Hub, as well as machine learning, to enable banks to better analyze and understand the preferences and behaviors of their SME clients. Banks can then use these insights to make recommendations to help them improve their businesses.

Strands has raised $55 million in funding, and includes Dalbergia, Debaeque, Sequel Venture Partners, and Indigo Investment Corporation among its investors.

Finovate Global: Fintech News from Around the World

As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global: Fintech News from Around the World is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.

Central and Eastern Europe

  • Raiffeisen Bank Romania unveils eight fintech finalists for its Elevator Lab Challenge.
  • Alfa-Bank Belarus migrates to WAY4 platform from digital payments solutions provider OpenWay.
  • 150Sec.com takes a look at the graduating cohort of 19 fintech startups emerging from Latvia and Estonia accelerator programs.

Middle East and Northern Africa

  • Dubai Financial Services Authority (DFSA) signs MoU with Astana Financial Services Authority.
  • Bahrain Development Bank (BDB) announces closing $100 million fundraising round for its Al Waha Fund of Funds.
  • Abu Dhabi Global Market (ADGM) introduces its regulatory framework for spot crypto asset activities.

Latin America

  • BlueRush teams up with Kunder to forge partnership with Chilean pension fund leader, AFPHabitat.
  • Integrated Biometrics announces its 10-print fingerprint scanners have become the standard for financial service organizations in Mexico.
  • Argentine fintech Increase earns Best of the World award for its positive social and environmental impact.

Asia

  • MatchMove powers the first contactless prepaid Mastercard in South Asia
  • Singapore’s PayNow service to be extended to corporate customers with launch of PayNow Corporate later this summer.
  • Cambodia announces plans to build $70 million data center to support development of the country’s digital economy.

Sub-Saharan Africa

  • IT News Africa’s 5 Most Innovative Startups in Kenya list features P2P micro lending marketplace Pezesha; SaaS mobile commerce platform, Sky.Garden; and FX and payment platform, BitPesa.
  • EcoFin Hebdo looks at the rise of insurtech in Africa. In French.
  • Online sports betting in Nigeria sees boost as popularity of digital payments agrows.

Top image designed by Freepik

Finovate Global: Fintech News from Around the World

As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global: Fintech News from Around the World is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.

Asia

  • Flywire and UnionPay International partner to provide Chinese customers with better rates on cross-border payments.
  • Leading southeast Asian digital cross border money transfer firm InstaReM goes live in Europe with new London office.
  • South Korean payments app Toss raises $40 million in funding.

Middle East and Northern Africa

  • Dubai International Financial Center (DIFC) teams up with Startupbootcamp as part of an effort to boost Dubai’s status as a regional fintech hub.
  • AME Info asks if Saudi women and UAE crypto can alleviate Bahrain’s debt crisis.
  • VentureBurn features Egyptian savings startup Money Fellows.

Africa

  • Elizabeth Rossiello, CEO and founder of Nairobi, Kenya-based BitPesa, talks about leveraging cryptocurrencies to improve global payments in Africa.
  • South Africa’s ITWeb features features Richard Marsden, co-founder of Johannesburg-based FinChatBot on the rise of chatbot technology in the insurance industry.
  • Branch International reports N1 billion ($2.78 million) in loans facilitated to users in Nigeria.

Latin America

  • Brazil’s Nubank reaches milestone of 1.5 million digital account openings in six months.
  • Latin American Regional Conference sponsored by Swift sees collaboration as fundamental for growth of financial services in Latin America.
  • Brazilian insurtech startup Kakau partners with insurance companies American Life and Generali.

Central and Eastern Europe

  • Kontomatik appoints CEO Piotr Warsicki as its new CEO.
  • Poland’s Alior Bank partners with solarisBank, Raisin, and Mastercard to launch pan-EU digital bank later this year.
  • The largest bank in the Czech Republic, Česká spořitelna introduces voice biometrics courtesy of partnership with Nuance Communications.

Finovate Alumni News

On Finovate.com

  • Daon Partners with Tradelink to Bring Biometrics to Dah Sing Bank.
  • AI Foundry Overhauls Agile Mortgages Solution.

Around the web

  •  Klarna partners with EMaC, a U.K. automotive service plan provider, for a drive now, pay later service.
  •  Paysend triples its customer base over the last 6 months.
  • eToro announces that clients can now invest directly in shares on the platform.
  • MX appoints Ben Holzman, a former managing director of Bain Capital Ventures, as new COO.
  • TechCrunch: Coinbase opens its crypto index fund to accredited U.S. investors.
  • Langley FCU to deploy Symitar Episys core processing platform from Jack Henry & Associates.
  • Mambu announces new board member, former SAP CEO, Henning Kagermann.
  • Revolut partners with Cyprus-based telecommunications company, PrimeTel.
  • First Data and Mastercard collaborate on a digital disbursement platform for business customers.
  • Entersekt opens new office in Atlanta, Georgia to support the company’s growth in North America.
  • The Open Bank Project collaborates with Citizens Bank on innovation event.
  • First National Bank Texas ($1.8B Assets) selects Insuritas to power turnkey insurance agency.
  • Prosper resumes operations for Montana residents

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 Alums Take Top Honors at FinTech Breakthrough Awards

Dedicated to recognizing “the top companies and products in the financial services and technology industry today,” FinTech Breakthrough has announced its FinTech Breakthrough Award Winners for 2018. This marks the second year the independent organization has sponsored the fintech awards event, recognizing fintech startups and veterans from a wide variety of categories including payments, lending, investing, and regtech.

“The FinTech Breakthrough Awards serve as a testament to the passion, skill and vision of individuals and teams that are truly setting the standard for innovation in the global FinTech industry,” Managing Director for FinTech Breakthrough James Johnson said in 2017 during the Awards’ inaugural year. “We are thrilled to recognize all of the FinTech Breakthrough Award winners for their well-deserved industry recognition as they drive the global FinTech market forward.”

This year featured 20 Finovate alums earning top honors from FinTech Breakthrough. The names and Finovate demo dates for each winning alum – as well as the category they won – are featured below. For a complete list of 2018 FinTech Breakthrough Award Winners, visit the company’s awards announcement page.

Leadership

Consumer Lending

  • Innovation Award for Consumer Lending – Text for Credit by Experian (FF17)

Business Lending

Wealth Management

Payments

Investments

Consumer Banking

Financial Research and Data

Fraud Prevention and Transaction Security

This marks the second time both eMoney Advisor and ThreatMetrix have been honored by the FinTech Breakthrough Awards. Among last year’s winners were a significant number of Finovate alums including: Sindeo, BizFi, DriveWealth, Quovo, Jumio, Trulioo, Qumram, and Xero.

Finovate Alumni News

On the web

  • Smart Launch from NYMBUS Digitizes Your Bank in Under 90 Days.

Around the web

  • IFC and Mastercard expand partnership to drive financial inclusion in emerging markets.
  • Pushfor goes live on the Temenos MarketPlace.
  • Smart Technology Solutions (STS), a U.K.-based payments acceptance software provider, teams with Worldpay to offer enhanced payment capabilities.
  • FactSet and Quantopian to launch financial data analysis platform to help investors capitalize on rapid data growth.

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

  • Ephesoft Unveils Mortgage Document Capture Solution.
  • Coinbase Acquires Earn.com; Adds Balaji Srinivasan as First CTO.

Around the web

  • ThreatMetrix introduces its first product integration with LexisNexis since the company was acquired in February.
  • Finastra makes its mortgage lending solutions available via the cloud courtesy of partnership with Microsoft.
  • Ambassador Michael Froman joins Mastercard as vice chairman and president of strategic growth.
  • Moneyhub opens its API to U.K. challenger banks Monzo and Starling.
  • Coinbase acquires Cipher Browser to support its decentralized mobile browser offering.
  • Fortytwo Data appoints Luca Primerano as chief AI officer.
  • Coindesk: Mastercard Eyes Blockchain for Fighting Fake Identities.
  • Infosys to acquire Creative and Consumer Insight Agency, WONGDOODY.

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

  • Coinbase Launches Coinbase Ventures to Support Early-Stage Crypto Startups.
  • Kabbage and Ingo Money Team Up to Power Faster Loan Payouts to SMBs.

Around the web

  • Carter Bank & Trust ($4.1 billion in assets) partners with Fiserv as part of strategic, digital transformation.
  • Phillips 66 to offer digital payments at the pump courtesy of integration with Mastercard’s Masterpass.
  • Ephesoft unveils latest version of its smart document capture solution, Transact 4.5.
  • BioCatch wins “Best Innovation in Securing Transactions” at Florin Awards.

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

  • Tink Teams Up with BNP Paribas Fortis, Brings PFM, Aggregation, Payments to Belgium Bank’s Mobile App.

Around the web

  • TransferWise selects Wirecard to issue a debit card alongside its digital borderless account offering.
  • Vipera partners with Mastercard to launch new mobile payment service, SME Pay.
  • Thomson Reuters teams up with MarketPsych to introduce sentiment data feed for Bitcoin.
  • Azimo unveils new, improved money transfer service to China.

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

Around the web

  • Two-time Best of Show winner Finn.ai launches Spanish-speaking virtual banking assistant with Nicaragua’s biggest bank, Banpro.
  • Fiserv to offer Mastercard’s anti-fraud solution, Decision Intelligence.
  • Former LinkedIn executive, Emilie Choi, joins Coinbase as VP of Corporate and Business Development.
  • Kabbage and Citi commit to new cybersecurity-based consortium for fintechs and data aggregators established by the World Economic Forum.
  • Onboarding friction and security concerns remain as obstacles to wider mobile banking adoption for consumers across age groups according to joint review by Javelin and identify verification specialist Jumio.

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.