October 20, 2015
We have witnessed some prominent partnerships established among players in the payments industry. There are many reasons behind one company joining hands with the other. The number of nodes (and complexity) in the payments ecosystem makes it necessary to strike partnerships to get things done. The payments industry welcomes a large number of new players every year. To survive the competition, these new players join hands with the established ones to get a competitive advantage. We can see the result of these partnerships in the form of product launches, geographic expansion and some outstanding innovation happening in payments systems.
LTP has covered some of the most important partnerships that have happened in the payments industry. Below is a list of highlights of some noteworthy partnerships:
The battle for the digital wallet is intensifying in Canada with the launch of a mobile payments app backed by Canada’s major wireless carriers and promises to include the big banks. Rogers recently announced the expansion of its mobile wallet client, the suretap wallet, to Bell and Telus devices, including those on Virgin Mobile and Koodo. In fact, CIBC bank signed up immediately after the announcement and will allow its customers to store any CIBC Visa or MasterCard credit card on the suretap app so they can pay using their smartphone.
International financial services provider, Barclays has signed an agreement with payments technology company VeriFone. The agreement will enable the users to pay for their goods and services through their Barclays’ Pingit app. The app can be integrated as an accepted payment method by Verifone’s 20,000 clients using Verifone’s PAYware Ocius m-commerce gateway. The Pingit app already has an established chain of 70,000 businesses which are already using the app as one of the payment options for their customers.
eftpos recently partnered with Bell ID, a Netherlands-based company, to build a flexible, domestic mobile payment capability, including secure tokenization services.
According to eftpos, the new offering would let eftpos payments to be made securely across various digital platforms and applications being developed by Australian industry participants.
With the partnership of Premier Bank, MasterCard has become the first international payments network to enter Somalia. Through the partnership, Premier Bank will issue and accept the first MasterCard-branded payment cards in Somalia which can be used for Premier Bank’s ATM withdrawals. The bank will also issue 5,000 MasterCard debit cards this year, followed by prepaid cards and point-of-sale (POS) machines.
Santander UK has launched a group money management app called KiTTi which allow 100 friends to create collective pots of money and pay through the KiTTi prepaid contactless MasterCard. The first virtual cash kitty of its kind allows users to create collective pots of money, monitor and manage transactions.
Customers of any UK bank can download the app, set up a kitty, invite their friends and start sharing money.
Santander developed KiTTi in partnership with Kalixa Payments Group (end-to-end payment technology services provider) and Monitise (global mobile technology business).
Verifone Systems, Inc. and P97 Networks, Inc. recently announced that P97’s PetroZone Mobile Commerce and Digital Marketing Platform has been certified to integrate with Verifone’s cloud-based POS and site management software solutions providing gas stations and convenience stores a combined, fully integrated solution for mobile payment acceptance in-store and at the pump.
Enterprise Engineering, Inc. (EEI) announced the launch of its Trusted Network Platform – an advanced data aggregation and management platform, consisting of a core engine and a robust API. EEI, with partners Xero and Square 1 Bank, publicly unveiled the new platform via an onstage demo at FinDEVr 2015.
FinDEVr is the premiere financial technology and banking event that brings FinTech developers, Chief Technology Officers (CTOs), banks, VPs of engineering and the best technology all together at one place. FinDEVr brings the developers to the front of the stage. Developers who usually are in the background, behind their laptops, are never seen at networking events. However at FInDEVr, most of the speakers and presenters included FinTech companies’ developers.
MasterCard + First Data
The companies had entered into a strategic alliance in August last year to provide a unified solution. The solution was dubbed MasterCard InControl for First Data’s First Vision platform. MasterCard InControl is an innovative and secure payment platform that enables users and corporations to place spending limits on their accounts. It also helps manage how, when and where customers use their card online. The partnership with First Data helped MasterCard support e-commerce spending by providing greater control to cardholders.
UnionPay + GlobalCollect
The companies entered into a partnership in November 2014, which saw GlobalCollect becoming a worldwide acquirer for the UnionPay network. With this agreement, GlobalCollect can now connect its client base of leading international ecommerce companies with the holders of 4.5 billion UnionPay cards, creating access to rapidly growing e-commerce markets across Asia and beyond. Merchants offering their consumers to pay with UnionPay cards through GlobalCollect now benefit from faster boarding and implementation, full service processing and consolidated reporting. GlobalCollect processes UnionPay payments in over 90 authorization currencies worldwide.
IBM + Monitise
The companies entered into a partnership in July last year to deliver cloud-based mobile solutions for the financial services industry, expanding their global alliance to help banks and financial institutions embrace mobile channels for better customer-oriented services. The partnership combined the IBM MobileFirst portfolio and Monitise’s mobile banking and payments portfolio. Financial institutions will get access to data analytics as part of IBM’s Global Business Services initiative. Clients benefit from Monitise’s adoption of IBM BlueMix, a cost-effective development environment.
On May 21, 2015, India’s largest bank State Bank of India (SBI) signed a strategic partnership with the world’s leading digital payments company, PayPal. SBI debit cardholders can use PayPal when they purchase products from overseas e-commerce websites. The tie-up of SBI with PayPal would help cross-border transactions and domestic payments. The partnership will also allow SBI’s micro, small and medium enterprise (MSME) customers to use PayPal’s secure payment solutions. According to SBI, PayPal and SBI will work together to offer PayPal’s payments solutions to SBI’s MSME customers who can reach PayPal’s 165 million active accounts globally. The partnership will also facilitate overseas funding for the government programs such as Clean Ganga and Swachh Bharat.
Vodafone + MoneyGram
The companies partnered in February last year. Vodafone struck a deal with MoneyGram to enable people to transfer funds directly from around 200 countries to users of the M-Pesa mobile money service. Consumers are now able to send money to M-Pesa accounts from MoneyGram’s 334,000 agents around the world as well as from the firm’s website and through its mobile apps. The partners wanted to take advantage of the fact that more than half of all people in the countries in which M-Pesa operates do not have traditional bank accounts and that tens of billions of dollars in remittances is sent back to them every year.