May 17, 2019

By Chris Kronenthal, president and CTO at FreedomPay

Retailers are used to having to change or update their payment systems over time, but a major change is coming up which means many of the current point-of-sale (POS) systems they are using will not just become obsolete, but could leave them at risk of liability for fraudulent transactions.

PCI compliant terminals are an important part of a retailer’s business and once the new V4 terminals come in to use in April next year, the V3 ones that are currently used by retailers will no longer be supported. It is a process the industry calls ‘sunsetting’, and retailers need to start looking at the alternative payment systems they can use now so their transition from one system to another can be seamless.

Doing nothing is a very dangerous option, as continuing to use an unsupported POS systems – i.e. without software updates to ensure compliance with legislation and the latest security protocols – they would end up footing the bill for any fraudulent transactions made through their terminals.

So, now is a very good time to look at the wide variety of payment system alternatives that are currently in the market. There are around 900 different payment terminals globally, and the one that was right for your business previously may no longer be appropriate. It really depends on how your business works.

Most retailers now have an online presence, which is essential to garner market share for their business as the buying habits of consumers change. Worldwide, 2.8 billion people are buying online, up 3.1% from last year according to data from We Are Social and the trend is set to continue.

Failing to access this market effectively means putting your company’s future at risk. There are many retailers that have failed because they didn’t follow the move online quickly enough —ToysRUs, Blockbuster, Eastman Kodak and the U.S. bookstore chain Borders to name but a few.

So, it is vital for retailers to consider their online presence, and also look at the various ways that people are able to pay for goods and services both online and offline. Customers are using everything from credit cards, debit cards and mobile wallets such as Apple Pay and are always keen to adopt new, easier and faster – but still ultra-secure – ways to pay.

While it may be tempting to think of upgrading your new POS system in isolation, you should also consider how your customers are interacting with you. Is your online presence strong enough, or could be made stronger? Also, would a more integrated payment system for both online and offline payments make more sense for your business?

Even in store, the number of ways customers look to pay is proliferating. For example, contactless seemed like an amazing innovation when it arrived back in 2007 and while it took some time for people to feel comfortable with it, contactless payments finally outstripped chip and PIN payments in the U.K. in June last year. But that is the tip of the iceberg. People are now using their smartphones, watches and facial recognition to pay for good and services, and these advances in technology show no sign of abating. If retailers want to keep their customers happy, and coming back, they need to consider these options going forward. They need to use a system that is future proof because it develops as the technology develops.

Cover photo: iStock

Topics: Mobile Payments, POS, Security, Trends / Statistics

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May 17, 2019

JPMorgan Chase & Co. entered an agreement to buy InstaMed, a technology firm specializing in healthcare payments.

The bank is reportedly paying more than $500 million for the company, however a spokesman said via email that he was not authorized to comment on the amount.

The InstaMed platform is used to help reduce paperwork, reduce the cost of collection and improve the consumer finance experience. JPMorgan Chase said the acquisition will expand its suite of payment services aimed at providers, payers and healthcare consumers.

"We’ve made significant investment in our wholesale payments business over the years and this acquisition will give us a unique advantage in one of the fastest growing sectors," Takis Georgakopoulos, global head of wholesale payments at JPMorgan Chase.

Officials noted that the $3 trillion U.S. healthcare payments system is plagued with inefficiency, transaction friction and related issues that impact claims processing, payment collection and reconciliation.

Topics: Bill Payment, Mobile Banking, Mobile Payments

Companies: JPMorgan Chase Bank N.A.

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May 17, 2019

Deliveroo, a U.K.-based delivery service with operations across Europe, announced a massive $575 million Series G funding round led by Amazon, along with existing investors T Rowe Price, Fidelity Management and Research Co. and Greenoaks.

Deliveroo said the funding round will be used to expand the engineering team at its London headquarters, grow the reach of its delivery business and develop new innovations, including its delivery-only super kitchens called Editions.

Lastly the company plans to develop more personalized experiences for customers, create a more flexible and well paid work environment for riders and boost support for partner restaurants.

"This new investment will help Deliveroo to grow and offer customers even more choice, tailored to their personal tastes, offer restaurants greater opportunities to grow and expand their businesses, and to create more flexible, well-paid work for riders," Will Shu, founder and CEO at Deliveroo said in the announcement.

The company currently works with more than 80,000 restaurants in 500 cities and towns in 14 markets throughout Europe, Asia and the Middle East. Since launching in 2013, the company has raised $1.53 billion.

Topics: In-App Payments, Mobile Apps, Mobile Payments, Region: EMEA, Restaurants

Companies: Amazon

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May 17, 2019

Minna Technologies, a Swedish fintech that helps retail banks manage subscriptions, said it raised $6.2 million (5.6 million euros) from a series of investors led by Stockholm-based Zenith Group, along with Visa and existing investor Swedbank.

Minna officials said the funding will be used to expand its European expansion.

"As many European banks have started to embrace FinTech partnerships, we have seen a dramatic increase in the interest of our subscription management platform," Joakim Sjoblom, founder and CEO of Minna. "Our current bank partnerships have proved that subscription management is well received by banking customers and that it is an essential part of digital banking."

Minna officials said the funding will be used to help expand the size and geographical reach of the company. The firm also plans to open a new European office, but did not elaborate on the specific location.

Topics: In-App Payments, Mobile Payments, Region: EMEA

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