The benefits of tokenization in payments; Is BNPL the solution to affordable credit?; Timeliness of the US Open Banking Ecosystem;
Hey there! Let’s talk about the state of our payment systems — it’s like they’re stuck in the past!
Insights & Reports:
1️⃣ Real-Time Payments: Cross-Border Payments Perspective
2️⃣ The benefits of tokenization in payments
3️⃣ Is BNPL the solution to affordable credit?
4️⃣ How embedded finance has evolved in recent years
5️⃣ Timeliness of the US Open Banking Ecosystem
6️⃣ The rapid evolution of payments in Latin America
Curated News:
1️⃣ BaFin Mulls Lifting Cap on N26’s Growth After €9.2 Million Fine
2️⃣ Revolut to roll out payment terminal for large businesses
TL;DR:
Hey there! Let’s talk about the state of our payment systems — it’s like they’re stuck in the past! Transactions take ages to settle, fees are all over the place (ranging from 0.65% to a jaw-dropping 9.85%!), and security feels like it’s from another era. But hey, there’s good news! New real-time payment networks are stepping up to fix these issues. Take, for instance, the link-up between Singapore’s PayNow and Thailand’s PromptPay system, promising faster, cheaper, and more transparent transfers across borders.
Now, onto online payments! Ever heard of tokenization? It’s a game-changer. Imagine not having to type in your card details every single time you shop online. Studies show that this could significantly reduce cart abandonment rates, which can be as high as 5.57%, with involuntary churn hovering around 1.38%.
Buy Now, Pay Later (BNPL) sounds tempting, right? But hold up — it’s not all rainbows and butterflies. It might not be the best choice for everything, like your everyday groceries or those clothes you might want to return. It’s all about using it responsibly to avoid getting into any sticky debt situations.
Open banking is on the rise, and it’s pretty exciting stuff! Picture this: securely sharing your financial data with other apps. This could totally shake up the financial services industry, giving you a neat, consolidated view of all your financial stuff. But hey, there are still some kinks to iron out, especially regarding regulations, like the recently proposed CFPB rule in the US.
Remember N26? Yeah, they got slapped with a hefty €9.2 million fine for not having strong enough anti-money laundering controls. Ouch! But hey, they’re getting their act together, and word on the street is that the German financial regulator might let them take on more new customers soon.
Now, here’s something interesting: Revolut, the big player, is making moves in the business world. They’re rolling out a shiny new payment terminal designed specifically for large companies. Watch out — they might just snag a big slice of the market.
Last but not least, let’s give a round of applause to Aeropay! They just scored a cool $20 million in funding. What do they do? Well, they help businesses set up a “pay by bank” option, making it super easy for folks to pay directly from their bank accounts.
Insights & Reports
Real-Time Payments: Cross-Border Payments Perspective
Cross-border payment flows continue to grow at double-digit rates, generating $240 billion in revenues for payments providers in 2022, with B2B payments making up 69% of total revenues (on 97% of the payment flow).16 Consumer payments are more profitable and are projected to grow more rapidly over the next 5 years. The U.S./Latin America corridor, the largest in the world for C2C remittances, is expected to continue growing robustly given family remittances and U.S. humanitarian aid.
Despite the volume of capital flows and benefits that RTP could bring, cross-border payments continue to operate on traditional rails or networks designed to handle wires, credit and debit cards, and international ACH transactions. These traditional networks are:
The benefits of tokenization in payments
🔹 Seamless repeat and recurring payments
One of the main benefits of using payment tokens in your payment infrastructure is that it removes a lot of inconvenience from the checkout page, especially for repeat or recurring customers. Instead of having to manually re-enter payment details every time they want to make a purchase, customers can submit an order with one click as their card details have already been securely stored as a payment token. One-click payments are fast and hassle-free. And adding the extra level of security that tokenization provides, your customers will be extremely satisfied with the checkout experience.
🔹 Decreased churn and cart abandonment
Curated News
BaFin Mulls Lifting Cap on N26’s Growth After €9.2 Million Fine
Germany’s financial regulator is considering lifting a cap on the number of new clients that N26 can take on after the fintech improved its anti-money laundering controls, according to people familiar with the matter.
