You May Soon Start Paying With Your Face
Hey Payments Fanatic!
With JPMorgan, and Mastercard on board in biometric ‘breakthrough’ year, you may soon start paying with your face.
Biometric payment options are becoming more common in the U.S., such as Apple Face ID enabling app purchases, Amazon’s introduction of pay-by-palm technology in stores, and financial firms from JPMorgan to Mastercard embracing the technology.
Some U.S. restaurant chains have started letting patrons pay by face, an option already common in Asia powered by AliPay.
While privacy is a concern, that’s nothing new in the tech world, and Juniper Research forecasts $3 trillion in mobile biometric payments by 2025.
Now over to you: Do you feel comfortable paying with your face? And do you see pay-by-face as the payment method of the future? I would love to hear you thoughts.
Cheers,
INSIGHTS
🏦 𝗢𝗽𝗲𝗻 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 in Latin America. Lessons from Mexico, Brazil, Colombia, Chile, Argentina and Peru on open banking and real-time Payments:
PAYMENTS NEWS
🇲🇾 NTT DATA agrees to acquire a majority share of GHL Systems Berhad for further expansion of payment business among ASEAN countries. NTT DATA plans to propose a tender offer to its other shareholders as well.
🇺🇸 Opus Technologies launches Payment Integration Framework for Financial Institutions. The new Paysemble helps financial institutions simplify technology adoption, migration and integration and ensure seamless operations, the company said in a May 21 press release.
💳 The Credit card payments market will be worth $1.22 trillion in 2032 🤯 The sector holds importance in the world economy as credit cards are the favoured payment method for numerous individuals and enterprises globally. Read more
🇨🇱 Paytech Koywe acquired Chilean company Facto to enter the North American market. Mickle Foretic is the founder of Facto (finalist of MAS Pitch 2023), a company specialized in electronic invoicing and payroll that holds approximately 10% of the Chilean digital certificates market.
🇦🇿 United Payment became the first and only Turkish company to receive the e-money license in Azerbaijan. With this licence, United Payment has gained the right to open an account, electronic money (wallet) and Virtual POS services, as well as national and international money transactions within the legal framework.
Payrails, a payment platform serving global enterprises, has announced a collaboration with inDrive, a prominent ride-hailing app. By leveraging Payrails' solutions, inDrive seeks to improve local payment experiences for both drivers and customers, thereby increasing conversion rates and reducing costs.
🇲🇦 Dublin FinTech CR2 acquired by Moroccan payments firm HPS. The acquisition will enhance HPS digital banking and payments capabilities and accelerate its growth within the space globally. Click here to learn more
🇸🇦 Saudi FinTech Hala raises fresh funds from private equity giant TPG. The Saudi startup claims that it serves greater than 100,000 retailers with its POS options, driving an annual transaction quantity exceeding $18 billion.
GOLDEN NUGGET
Payment Orchestration is reshaping the Multi-Provider model across geographies, channels and use cases 👇
A Payment Orchestration Layer is a third party (most of the time) - Yuno, Spreedly, CellPoint Digital, Gr4vy, Inc - that integrates and handles the relationship with the different payment service providers PSPs, acquirers, gateways, banks on a single unified software layer.
In other terms, they sit in between the merchant and the entire payment ecosystem. Their role is to bring simplicity, flexibility and an increase in conversion to merchants.
According to S&P Global, 67% of merchants do not want to have a single point of failure for payment processing. Merchants have been integrating multiple payment providers 1 by 1 using valuable time and resources in the process. An Orchestration Layer gives access to multiple payment providers through 1 integration.
The Benefits:
🔸 Avoid payment service provider lock-in
🔸 Reach new markets
🔸 Reduce processing fees
🔸 Increase conversions
🔸 Redundancy
🔸 Reduce fraud/chargebacks
🔸 Improve CX with fewer declines
A Payment Orchestration Layer can reduce the complexity of a Multi-PSP strategy by unifying and managing payment transactions across providers like Nuvei, Adyen, and Worldpay.
It automatically streamlines the routing of transactions based on rules and logic, 3DS and cascades until accepted. It can also determine which PSP offers the lowest processing fee for cards or local payment options in a particular country.
This solution is mostly seen in eCommerce today, especially for global merchants in digital verticals but is also relevant and expanding in the POS channel:
🔸 Omnichannel: Global merchants using Omnichannel must support many payment methods, and means of interacting with consumers across channels. Orchestrators help to recognize customers across channels and geographies
🔸 Marketplaces: Global marketplaces have some of the most complex set of payment requirements, supporting many buyers, sellers, in many geographies. Orchestrators help marketplaces to support a single infrastructure for managing buyers and sellers across providers.
🔸 SaaS providers expanding into FinTech: SaaS providers are increasingly bundling payments to enrich their proposition and to expand their revenue base. Orchestrators can help to centralize technical integration into a broad array of PSPs & payment methods.
How Tokenization enables a Multi-Processor Model - VGS x RoadSync 👇
RoadSync maintained a seamless payment processing experience with their PSP.
Unfortunately, s**t happens & SVB collapsed impacting its payment processing abilities.
The inclusion of an agile & flexible tokenization provider (VGS) & cloud infrastructure (Amazon Web Services (AWS) enabled RoadSync to switch payment providers over a single weekend. Ultimately, tokenization is a core element of a flexible payment infrastructure. Think carefully about it, you never know what can happen.
3rd-party providers — VGS, Basis Theory, Spreedly, Evervault — are able to generate agnostic tokens interoperable across channels & providers.
It's time to maximize your time, resources, cost, and overall payment strategy 🚀
Sources - S&P Global, Flagship Advisory Partners, The Paypers x2 with 2 great articles 👋
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✍️ Arthur Bedel & Marcel Van Oost
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