PaymentFacilitator’s News Roundup is a curated mix of the past week’s news and articles from around the web, including company announcements, global payments news, and other coverage and analysis of topics relevant to payment facilitators.
Cashing In or Out?
New York City takes a stand on cashless. The City Council has passed a bill prohibiting any local businesses from refusing cash payments for services rendered. Additional prohibitions include penalizing cash customers with a higher payment price, and those establishments in violation of either offense could receive up to a $1,500 fine. From CBS News.
As for those in favor of digital commerce, they feel a ban on card-only businesses is ill-advised. Advocates of requiring businesses to accept cash argue that card-only retailers harm consumers, particularly the unbanked population. But could supporting technology innovations like Open Banking provide a better alternative than protecting cash payments? From Forbes.
Another contender in the cash corner, a recent report by Deutsche Bank predicts that cash will survive the global drive towards digital. The first piece in a three-part series that examines the payments industry, data analysis from 3,600 customers (from US, UK, China, Germany, France and Italy) offers an unexpected twist on emerging trends predicting that while cash may no longer be king, it’s not necessarily headed for extinction. From Deutsche Bank Research.
Big Brands Doing Big Things
Google Pay innovates offline. In an effort to increase its use cases, the global brand is targeting new users offline. Reports speculate that a digital storefront for offline merchants is in the works. While no timeline has been confirmed, sources in the article expect the new feature to be live in a matter of months. From Entrackr.
Zero MDR impact continues to cause ripples. Or even waves, according to an interview with PF Atom Technologies’ CEO Dewang Neralla. Many payment service providers and acquiring banks depend on the Merchant Discount Rate (MDR) as their only source of revenue. Without it, Neralla predicts they will only “burn capital” as a means of survival and this will hurt the overall business model and ultimately impact the ecosystem. From Money Control.
The Power of Partnership
A possible Nigerian acquisition is in the air, according to sources, with PFs Flutterwave and Paystack highlighted as two of the top contenders. Why? Other big-brand partnerships have paved the way for more consolidation. And both companies are disruptive and in a phase of rapid expansion with both their geographical reach and transaction volume, and therefore could be very attractive to some of the larger payment brands. From Techcabal.
SplitIt: SplitIt Teams up with Stripe (Finextra)