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Chat app Line’s mobile payment service is getting its own Visa card

Posted by on Jan 30, 2019 in alibaba, alibaba group, alipay, Apps, Asia, China, E-Commerce, economy, Japan, King, mobile payments, money, online payments, payments, points, Tencent, visa, WeChat | 0 comments

Brown, Cony and the gang are coming to a credit card near you in Japan. Line, the messaging app company behind the cute sticker characters, announced today that it is bringing its payment service to plastic through a tie-in with Visa.

Line is Japan’s largest chat app with an estimated 50 million registered users. The cards will be released later this year and they’ll allow Line Pay, the company’s digital wallet service, to stretch beyond its existing merchant base to allow users to pay at any retailer accepting Visa . In addition, the first year of use will see customers get 3 percent of their spending back in Line’s ‘Points’ virtual currency, which is used to buy stickers and other content.

The partnership is a step up from Line’s own payment cards, which were introduced in 2016 and supported by JCB.

It’s an interesting deal because mobile is generally seen as being the future form factor for payments. In China, for example, using cash or card to pay is considered antiquated — you’ll get glares from other patrons forced to wait while you complete your transaction — but digital payments face a struggle in most other markets.

WeChat and Alipay have become de facto in China, but retailers — and particularly smaller ones — don’t always have the awareness, confidence or resources to add support for Line or other digital wallets. Japan, where cash is still king, is perhaps most emblematic of that struggle. The government is making a sustained push towards cashless — particularly ahead of the 2020 Olympics — and Line, as the country’s dominant chat app, may help that along with this partnership.

Line wrapped up a deal with WeChat last November that allows users of the China-based chat app to make payment via Line Pay points of sale. Tencent’s WeChat and Alipay from Alibaba have spent recent years developing a system that lets Chinese tourists pay while they are overseas.


Source: The Tech Crunch

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Flutterwave and Visa launch African consumer payment service GetBarter

Posted by on Jan 17, 2019 in africa, android, Apple, cameroon, ceo, Column, credit cards, E-Commerce, economy, Facebook, Finance, flutterwave, Ghana, greycroft, kenya, M-Pesa, mastercard, money, Nigeria, online payments, rave, San Francisco, South Africa, spokesperson, Uber, Uganda, visa, vodafone | 0 comments

Fintech startup Flutterwave has partnered with Visa to launch a consumer payment product for Africa called GetBarter.

The app based offering is aimed at facilitating personal and small merchant payments within countries and across Africa’s national borders. Existing Visa card holders can send and receive funds at home or internationally on GetBarter.

The product also lets non card-holders (those with accounts or mobile wallets on other platforms) create a virtual Visa card to link to the app.  A Visa spokesperson confirmed the product partnership.

GetBarter allows Flutterwave—which has scaled as a payment gateway for big companies through its Rave product—to pivot to African consumers and traders.

Rave is B2B, this is more B2B2C since we’re reaching the consumers of our customers,” Flutterwave CEO Olugbenga Agboola—aka GB—told TechCrunch.

The app also creates a network for clients on multiple financial platforms, such as Kenyan mobile money service M-Pesa, to make transfers across payment products, national borders, and to shop online.

“The target market is pretty much everyone who has a payment need in Africa. That includes the entire customer base of M-Pesa, the entire bank customer base in Nigeria, mobile money and bank customers in Ghana—pretty much the entire continent,” Agboola said.

Flutterwave and Visa will focus on building a GetBarter user base across mobile money and bank clients in Kenya, Ghana, and South Africa, with plans to grow across the continent and reach those off the financial grid.

“In phase one we’ll pursue those who are banked. In phase-two we’ll continue toward those who are unbanked who will be able to use agents to work with GetBarter,” Agboola said.

Flutterwave and Visa will generate revenue through fees from financial institutions on cards created and on fees per transaction. A GetBarter charge for a payment in Nigeria is roughly 40 Naira, or 11 cents, according to Agboola.

With this week’s launch users can download the app for Apple and Android devices and for use on WhatsApp and USSD.

Founded in 2016, Flutterwave has positioned itself as a global B2B payments solutions platform for companies in Africa to pay other companies on the continent and abroad. It allows clients to tap its APIs and work with Flutterwave developers to customize payments applications. Existing customers include Uber, Facebook, Booking.com, and African e-commerce unicorn Jumia.com.

Flutterwave has processed 100 million transactions worth $2.6 billion since inception, according to company data.

The company has raised $20 million from investors including Greycroft, Green Visor Capital, Mastercard, and Visa.

In 2018, Flutterwave was one of several African fintech companies to announce significant VC investment and cross-border expansion—see Paga, Yoco, Cellulant, Mines.ie, and  Jumo.

Flutterwave added operations in Uganda in June and raised a $10 million Series A round in October that saw former Visa CEO Joe Saunders join its board of directors.

The company also plugged into ledger activity in 2018, becoming a payment processing partner to the Ripple and Stellar blockchain networks.

Flutterwave hasn’t yet released revenue or profitability info, according to CEO Olugbenga Agboola.

Headquartered in San Francisco, with its largest operations center in Nigeria, the startup plans to add operations centers to South Africa and Cameroon, which will also become new markets for GetBarter.


Source: The Tech Crunch

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Square loses another key executive as Mary Kay Bowman joins Visa

Posted by on Jan 11, 2019 in Amrita Ahuja, Finance, nextdoor, Personnel, Square, visa | 0 comments

Square’s management continues to shuffle. One week after the merchant services and mobile payments company tapped Amrita Ahuja to lead finance, replacing long-time executive Sarah Friar who landed the chief executive role at Nextdoor, the company’s head of payments, Mary Kay Bowman, has joined Visa as its head of seller solutions.

The company will promote someone internally to fill the position, according to a source familiar with the matter.

Bowman joined Square in 2015 after more than a decade at Amazon, most recently as the e-commerce giant’s director of global payments. In her new role, Visa says Bowman will lead the credit card company’s “strategy for acceptance products and solutions, driving the design, development and delivery of new services and solutions that will transform the payment experience for both sellers and consumers.”

“This is a critical role, as the point of sale is undergoing dramatic change as it shifts from traditional payment acceptance to digital, cross-channel payment experiences,” Visa wrote in a company announcement released Friday morning.


Source: The Tech Crunch

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Cross-border fintech startup Instarem raises $20M for global expansion

Posted by on Nov 22, 2018 in Asia, Business, Finance, funding, Fundings & Exits, Indonesia, instarem, Latin America, Lithuania, MDI Ventures, Mumbai, payments, Prajit Nanu, Singapore, Southeast Asia, TransferWise, unicorn, Vertex Ventures, visa | 0 comments

Instarem, a Singapore-based startup that helps banks transfer money overseas cheaply, has raised a Series C round of over $20 million for global expansion.

The round is led by MDI Ventures — the VC arm of Indonesian telecom operator Telkom — and Beacon — the fund belonging to Thai bank Kasikorn — as well as existing investors Vertex Ventures, GSR Ventures Rocket Internet and the SBI-FMO Fund.

The money takes four-year-old Instarem to nearly $40 million raised to date, although Instarem co-founder and CEO Prajit Nanu told TechCrunch that the startup plans to expand the Series C to $45 million. The extra capital is expected to be closed by January, with Nanu particularly keen to bring on strategic investors that can help the business grow in new emerging markets in Latin America as well as Europe.

“We are a the stage where the color of the money is very important,” he said in an interview. “It is very key to us that we bring people into the round who can add value to our business.”

Nanu added that the company is speaking to large U.S. funds among other potential investors.

Instarem works with banks to reduce their overseas transfer costs, offering a kind of ‘Transferwise for enterprise’ service. Although, unlike Transferwise which uses a global network of banks to send money across the world, Instarem uses mid-size banks that already trade in overseas currencies. As I previously explained, the process is the financial equivalent of putting a few boxes on a UPS freighter that’s about to head out, thus paying just a sliver of the costs you’d incur if you had to find a boat and ship it yourself.

Focused on Southeast Asia primarily, it services over 50 markets with transfers. The company does offer a service for consumers, but financial institutions — which have ongoing demand and higher average spend — are its primary target.

Prajit Nanu founded Instarem in 2014 alongside Michael Bermingham

The company has offices in Singapore, Mumbai and Lithuania and it is opening a presence in Seattle as it begins to look to broaden its business, which already includes three of Southeast Asia’s top ten banks. Nanu said that the company will try to work with banks and financial services such as cross-border services which target users with links to Latin America and Mexico initially. In Asia, it is awaiting payment licenses in Japan and Indonesia which will allow it to offer more services in both countries.

TechCrunch understands that the company is on the cusp of a deal with Visa that will allow its customers to roll out branded prepaid cards, adding another financial service to its offerings. Nanu declined to comment when we asked about a deal with Visa.

TechCrunch has also come to learn that Instarem was subject to an acquisition approach earlier this year from one of Southeast Asia’s unicorns. Nanu declined to name the bidder, but he did tell TechCrunch that the offer “wasn’t the right timing for us.” He is, however, giving increased thought to an exit via IPO.

Last year, when Instarem raised its $13 million Series B, he suggested that it could go public by 2020. Now that target date has shifted back to 2021, with the Instarem CEO telling TechCrunch that the U.S. remained the preferred option for a public listing when the time is right.


Source: The Tech Crunch

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