PayPal Signs Exclusive 12-Month Deal with Visa

http://bankinnovation.net/2016/07/paypal-signs-exclusive-12-month-deal-with-visa/

 

  • Visa will get access to PayPal payment processing and Venmo, and essentially become the preferred payment type within PayPal
  • PayPal will no longer steer Visa cardholders toward ACH transactions
  • The deal is exclusive for 12 months
  • It’s another victory for the card networks, and a blow to ACH, which lost the MCX mobile payments platform recently. It’s also a blow to payments neutrality.

Walmart Canada will no longer accept Visa cards due to high fees

Walmart Canada is breaking up with Visa over high transaction fees.

The company’s Canada division will no longer accept Visa cards because the fees Visa charges to accept its branded cards are “unacceptably high,” Walmart Canada said in a statement over the weekend.

Walmart said the fees conflict with its mission of saving customers money and subsequently keeping business costs low. The change will start taking place July 18 and rolled out in phases to its more than 400 stores across Canada.

Walmart Canada said it pays more than $100 million in fees every year to accept credit cards, though it didn’t break out how much of that goes to Visa. Stores will still accept MasterCard, Discover and American Express.

http://www.usatoday.com/story/money/2016/06/13/walmart-canada-will-stop-accepting-visa-cards/85826704/

http://www.reuters.com/article/us-walmart-canada-idUSKCN0YX0N1

http://www.bloomberg.com/news/articles/2016-06-16/wal-mart-unfairly-dragging-shoppers-into-fee-spat-visa-says

 

U.S. Banks Unite to Form Industry Leading Secure Real-Time Payments Network

Payment processes have become the hottest working areas for banks in financial technology. Banks have started to realize the importance of real-time payments and Wells Fargo & Co (NYSE:WFC) now joins other banks to enable customers to make immediate payments through ClearXchange.

ClearXchange is a network owned by several other major banks such as Bank of America and JPMorgan. It was launched in 2011 but at that time, the customers had to wait two to three days in order for payment to be processed completely. The network’s immediate processing capability got live this year. Wells Fargo has turned down several fintech start-ups, which signifies that the firm does not believe in alternative ventures for payments systems.

Three banks are now live with realtime peer-to-peer payments on the ClearXchange network: U.S. Bank, Bank of America, and as of yesterday, JPMorgan Chase. U.S. Bank and Bank of America joined the realtime network in March.

P2P payments were realtime within Chase since 2012, but now they are realtime among all banks on the ClearXChange network.

Venmo and Square Cash may get all the attention, but bank peer-to-peer payments see more volume and larger payments. Chase QuickPay, the bank’s P2P solution, became part of the ClearXChange network in 2012. Usage is projected to grow 40% year over year, and Chase customers transferred $20 billion peer-to-peer in 2015, while the average transaction size is now more than $300, according to Chase.

Compare those numbers to Venmo, which processed $3.2 billion last quarter. Venmo grew 150% over 1Q 2015, according to CEO Dan Schulman on PayPal’s April earnings call. Ron Shevlin, research director at Cornerstone Advisors, puts the average Venmo transaction size at around $2, which seems low compared to the Chase number. Two possibilities: 1) People use Venmo much differently than they use bank-based P2P; or 2) People are not self-reporting accurately about Venmo usage, and they transact less frequently than they think they do.

http://www.thecountrycaller.com/26730-wells-fargo-co-wfc-joins-its-peers-in-clearxchange/

https://www.earlywarning.com/news/press-releases/2015/us-banks-unite-to-form-industry-leading-secure-real-time-payments-network.html

http://bankinnovation.net/2016/06/jpmorgan-chase-is-third-bank-to-launch-realtime-p2p-payments-via-clearxchange/

Wells Fargo Launches Android Mobile Wallet

Wells Fargo has officially joined the mobile wallet landscape.

The bank announced the launch of its Wells Fargo Wallet on Tuesday (May 24), noting that the new function will be incorporated directly within its existing mobile app for Android.

By later this summer, Wells Fargo customers will have the ability to make mobile payments with their eligible Wells Fargo debit and credit cards via the Wells Fargo mobile app at NFC-enabled payment terminals and Wells Fargo ATMs.

http://www.pymnts.com/news/mobile-payments/2016/wells-fargo-mobile-wallet-android/

http://bankinnovation.net/2016/05/wells-fargo-pay-to-launch-mid-summer/