BIS on pandemic impact on e-Commerce
FCA warns on cryptoassets
OBIE on three year anniversary of PSD2
Survey on UK Digital Banking uptake
eBay rollout of managed payments to sellers
Mastercard Cloud Tap-on-phone pilot
Visa and Plaid terminate merger
Check-out.com $15 billion valuation
Rapyd raises $300 million
E-commerce has ramped up during the pandemic around the world. The growth has differed across sectors and over different stages of the pandemic. Novel data sources can help to follow these trends. The growth of e-commerce has been higher in countries where there were more stringent containment measures and where e-commerce was initially less developed.
The FCA says that as with all high-risk, speculative investments, consumers should make sure they understand what they are investing in, the risks associated with investing, and any regulatory protections that apply. If consumers invest in these types of product, they should be prepared to lose all their money.
OBIE marks the third anniversary saying that 300 fintechs and innovative providers have joined the ecosystem with more than 2.5 million UK consumers and businesses now using open banking-enabled products. API call volume has increased from 66.8 million in 2018 to nearly 6 billion in 2020.
A survey indicates that 14 million (27%) UK adults have an account with a digital bank, with 5.7 million saying they plan on opening one in 2021. However, 55% of participants said they currently had no plans to open one, a slight increase from 2020. Not surprisingly younger people tend to have them, with 46% of those aged 24 and under having one. Although earlier research by Finder indicated low numbers using their accounts as the main one, the current survey appears not to have gained any new data.
eBay has announced that it will be expanding its management of payments to consumer sellers by the end of 2021. Consumer sellers will no longer need to maintain two separate customer service relationships to manage their business and everything can be done in the eBay mobile app, My eBay or Seller Hub on the web.
The pilot is being run with Computer Engineering Group, an independent IT Services provider. Cloud Tap on Phone is billed as one of Mastercard’s next generation acceptance products, with the software hosted on Microsoft’s Azure cloud platform. Cloud POS moves key parts of the acceptance software from the individual smartphone to the cloud, giving Mastercard and its partners a new delivery channel. Mastercard will make its pre-certified Cloud POS SDKs openly available in multiple cloud environments.
The two companies have also agreed with the Department of Justice to dismiss the litigation related to the proposed transaction. Both parties regard the proposed deal as having ‘significant benefits’ and been a ‘great combination’, the threat from the DoJ litigation was clearly deemed too problematical. Plaid says it will work with Visa as an investor and partner to focus on building the infrastructure to support fintech.
The round propels the business to a post-money valuation of $15 billion, making it the fourth largest fintech globally and Europe’s most valuable venture-backed business. The new funding will be used to further grow its balance sheet, claimed as one of the strongest across global fintechs, and drive new innovative opportunities. It has also opened offices in NYC and Denver to meet growing US demand for enterprise payments solutions.
The new financing will be used to double the engineering and product teams, as well as expand the “Self-Service” element of Rapyd’s platform. The company will continue its focus on core markets that serve B2C and B2B eCommerce payments, marketplace, and financial services businesses. It will also explore additional strategic acquisitions globally.
In this great conversation, Lochan Sim from Payoneer provides his perspectives on the convergence between marketplace and orchestration. We discuss the benefits of build versus buy for merchants and the opportunities for merchant to source best of breed acceptance from multiple suppliers.