Feb. 21, 2019

The ATM Industry Association has confirmed its support for efforts to ban cashless retail businesses in New York City, Philadelphia and Washington, D.C. 

At least two states are also said to be considering similar proposals, according to an ATMIA press release. These efforts have focused on the potential disenfranchisement of poor and unbanked consumers by retailers’ refusal to accept cash as a form of payment.

However, the issue is far broader than this, ATMIA Executive Director David Tente said in the release. 

“Cashless retail severely limits consumer payment choice and eliminates the favored payment method for 26 percent of the population, according to Federal Reserve numbers,” he said. “And industry data indicates that 45 percent of consumers prefer using cash for purchases in local retail establishments.”

Even those with a vested interest in a cashless environment should consider factors besides payment choice. For instance, in times of crisis cash is often the only option, the release said. Additionally, payment networks can crash and power systems can fail making cash an essential backup option for payment.

In further support of current and future legislative efforts, ATMIA plans to issue a position paper on the subject in the near future. Advocacy plans for 2019 include significant and continued attention to the ongoing importance of cash and its part in promoting financial inclusion, ATMIA said.

Topics: Regulatory Issues, Trends / Statistics

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Feb. 21, 2019

Juniper Research released a study showing that banks will save $7.3 billion in costs globally by 2023 due to the increased use of chatbots, up from $209 million in 2019.

The research indicated that chatbot integration in mobile banking apps will account for 79 percent of successful integrations by 2023.

"We think that chatbot integration will be one of the drivers for greater adoption of mobile banking apps, particularly in developed markets where penetration is high, but mobile banking adoption is already a compelling proposition to users,” senior analyst Nick Maynard told Mobile Payments Today via email. “Growth in mobile banking penetration will be driven by key emerging markets, such as India and China.”

The report also showed that AI chatbots will have a major impact on insurance claims management, saving about $1.3 billion by 2023, across auto, health, life and property insurance globally, compared with about $300 million in 2019.

Topics: Mobile Banking, Trends / Statistics

Companies: Juniper Research

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Feb. 20, 2019

Bill.com is eliminating wire transfer fees for customers paying in local currencies when they use its International Payments platform.

The company said the platform helps make it more cost effective for small and medium-sized businesses to pay international vendors.

"With Bill.com International Payments we provide small and medium-sized companies a simple, seamless and cost-effective way to pay electronically all over the world with just a few clicks," Yael Zhang, chief marketing officer at Bill.com, said in the announcement.

Since launching in July 2018, Bill.com customers can make payments to vendors in more than 40 countries, including the Eurozone, U.K., India and China, according to the release.

The amount that Bill.com customers will save through eliminating the wire transfer fees depend on the number of transactions, the payment amount and the type of currency they choose to pay in, a spokesperson said via email. The fees average about $40 when compared with traditional banks, the spokesperson said.

Bill.com earlier this month announced plans to expand to new offices in Houston and previously announced an agreement with American Express on vendor payment.

Topics: Bill Payment, Mobile Payments, Online Purchasing

Companies: American Express, Bill.com

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Feb. 20, 2019

CipherTrace, a Menlo Park, California based blockchain security firm, has raised $15 million in funding led by Palo Alto-based venture capital firm Aspect Ventures, according to a company release.

Other participants in the funding include Galaxy Digital, Neotribe Ventures and WestWave Capital. Mark Kraynak of Aspect will join the CipherTrace board of directors.

"CipherTrace is pleased to announce this strong backing from top tier investors who share our vision that cryptocurrencies and blockchains need to be secured, regulated and made safe so they can scale globally," Dave Jevans, CEO of CipherTrace, said in the press release. "Our investors have decades of experience investing in proven teams and technology companies in the Internet security and financial technology industries."

The company said it plans to use the funding to expand its global reach and extend product functionality.

"Great blockchain companies will be forged as crypto assets achieve mainstream adoption," said Mark Kraynak from Asset Ventures. "We believe security and compliance with anti-money laundering and other financial regulations, as enabled by CipherTrace, will be a key first hurdle to mass adoption."

CipherTrace, founded in 2015, specializes in cryptocurrency intelligence, anti-money laundering, blockchain analytics and compliance solutions, according to the company. Technology developed by the firm, which was originally funded by the U.S. Department of Homeland Security's Science and Technology unit and Defense Advanced Research Projects Agency, is used by law enforcement, auditors, government and others to combat fraud.

Topics: Bitcoin, Financial News, Mobile Banking, Security

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