Payments Industry Happenings: New & Noteworthy for the Week Ending June 5, 2015

By June 9, 2015CCG Catalyst

Abstract Background 1_jpgPintrest announced the ability to buy products from inside pinned items. This new service, named “buyable pins”, allows sellers to place a “buy it” button on items they post to the site. Users will be able to buy directly on Pintrest mitigating drop-off issues particularly with mobile devices. Pintrest is working with leading retailers and will be monetizing this service through advertisements vs. merchant fees. Stripe and Braintree will be handling payment processing.

Instagram is also testing targeted ads with in-app purchases and “Shop Now” buttons. Social commerce marches on.

Visa
launched the Visa Digital Enablement Program (VDEP) globally. The platform provides a technical and commercial solution for financial institutions and technology providers to connect to each other through VDEP without the need for bilateral contracts and integrations. Additionally, VDEP leverages Visa’s token technology and risk management infrastructure and stipulates a zero fee arrangement between financial institution and technology provider – Visa is also not charging a token fee. Google’s Android Pay is a launch partner for VDEP. What does this mean for Apple Pay’s fee structure?

Samsung has delayed the launch of its Samsung Pay mobile payments service until September. According to a Samsung executive, the service will be rolled out in the U.S. and South Korea along with the company’s next new high end mobile device.

NY State’s Superintendent of Financial Services
provides final rules for a BitLicense, becoming the first state to create a regulatory framework for virtual currencies. The rules apply to financial operators but not to software developers, individual users or retailers accepting Bitcoin. With a NY BitLicence companies could operate nationally (unless another state had restrictions). One more step to Bitcoin and virtual currencies gaining legitimacy and mainstream acceptance.

The Federal Reserve’s
latest G.19 report indicates strong growth in consumer credit in April. Total borrowings grew to $3.38 billion, an increase of 7.25% on seasonally adjusted annual basis. Revolving credit (consisting mostly of credit card debt) increased to almost $900 billion, up $8.6 billion from March and 11.5% on a seasonally adjusted annual basis. More good news for the credit card industry!

Ali Raza is a Principal and Payments lead at CCG Catalyst Consulting Group