PayPal Monetizing Venmo, Which Now Has 40 Million Users

PayPal Holdings’ Q1 earnings report revealed that 40 million people used its digital money transfer service Venmo in the last year, making it one of the most popular financial apps in the United States. Venmo is also growing dramatically in overall volume with the total number of payments made on its platform skyrocketing 73 percent to $21.3 billion in Q1 2019. Most Venmo transactions are between two people, with the company swallowing the processing fee. But PayPal prizes the app since a younger, more active cohort favors it. Continue reading PayPal Monetizing Venmo, Which Now Has 40 Million Users

Cryptocurrencies to Launch Soon From Messaging Services

Facebook, Telegram and Signal plan to utilize their messaging services as platforms to launch new cryptocurrencies over the next year. Their virtual currencies will allow users to send money to contacts around the world via the messaging services. According to inside sources, Facebook has been secretly working on a coin for WhatsApp that users could “instantly” send to friends or family. Facebook’s WhatsApp project is developed to the point that the company is already in discussions with cryptocurrency exchanges. Continue reading Cryptocurrencies to Launch Soon From Messaging Services

Google Plans Undersea Cables to Ramp Up its Cloud Business

Google has revealed plans to build three underwater fiber-optic cables for ocean areas from the Pacific to the North Sea, in order to speed the transfer of data and catch up with Amazon and Microsoft. The new undersea cables are slated for completion by 2019 and will also allow Google to reroute data to servers around the globe to avoid an overloaded or failed region. Although the cables will cost a significant amount — “hundreds of millions of dollars” — Google believes the move is its only option to compete in cloud computing. Continue reading Google Plans Undersea Cables to Ramp Up its Cloud Business

WWDC: Apple Unveils Product Updates and New HomePod

Apple’s annual Worldwide Developers Conference kicked off yesterday in San Jose, California. During his keynote, CEO Tim Cook noted that 5,300 developers from 75 countries were attending this year’s conference. Among the more noteworthy announcements, Apple shared information regarding its High Sierra macOS update; iOS 11 with improved Siri (including language translation), iMessage features, and Core ML to make machine learning easier; a new 10.5-inch iPad Pro (starting at $649, available next week); a beefed-up iMac Pro; a completely redesigned App Store; and an Echo-like smart speaker called HomePod (shipping in December for $349). Continue reading WWDC: Apple Unveils Product Updates and New HomePod

Apple iPhone Sales Dip While Apple Pay, Apple Watch Soar

In the latest quarter, Apple’s profit and revenue have ticked upward, but the company is experiencing problems with its iPhone, whose sales dropped 1 percent from the previous year to 50.8 million phones. The dip in sales is attributed to customers waiting for the 10-year anniversary phone, due in the fall, and weakness in China. Despite the slump, sales of the iPhone 7 were somewhat strong, pushing total revenue up 4.6 percent to $52.90 billion. In contrast to the iPhone, Apple Pay transactions and Apple Watch sales soared. Continue reading Apple iPhone Sales Dip While Apple Pay, Apple Watch Soar

Stem’s Royalty Model Finds Popularity with Indie Music Scene

Debuting a year ago, Stem has become successful distributing the music of independent artists to streaming services and divvying up royalties among the multiple collaborators that are typical in indie music. Up until Stem’s appearance, alternative distribution companies like TuneCore and CD Baby distributed indie music, but weren’t able to split royalties between artists and producers, leaving that onerous task to the main performer. Instead, Stem requires each collaborator to agree on percentage splits. Continue reading Stem’s Royalty Model Finds Popularity with Indie Music Scene

Banks Make Move to Real-Time Person-to-Person Payments

J.P. Morgan Chase, Wells Fargo and other banks just introduced real-time person-to-person payments — something PayPal’s Venmo has done for years — to their five year-old joint effort clearXchange. Previously, clearXchange could take up to three days to transfer money. PayPal upped its game, by signing a deal with Visa to let Venmo and PayPal app users instantly access monies they receive. PayPal and the banks collect no fees on these transactions, which they regard as a gateway to other, paid services. Continue reading Banks Make Move to Real-Time Person-to-Person Payments

Popular Payment Service Venmo Under Federal Investigation

According to an SEC filing, PayPal-owned peer-to-peer payment service Venmo is under investigation by the Federal Trade Commission to determine whether the company “engaged in deceptive or unfair practices in violation of the Federal Trade Commission Act.” PayPal received a Civil Investigative Demand (CID) from the FTC on March 28. “The CID could lead to an enforcement action and/or one or more consent orders,” explains PayPal, “which may result in substantial costs, including legal fees, fines, penalties, and remediation expenses and actions, and could require us to change aspects of the manner in which we operate Venmo.” Continue reading Popular Payment Service Venmo Under Federal Investigation

Banks Make Changes to Adapt to Today’s Mobile Technologies

As a growing number of consumers, particularly millennials, access financial services on their smartphones, traditional banks are struggling to keep up with new competitors. Major tech companies, from Apple to Snapchat, have entered the consumer banking industry, along with a wide variety of financial tech startups. Banks like Citigroup have formed new partnerships and departments for developing more mobile-friendly banking services as Americans’ banking habits continue to evolve. Continue reading Banks Make Changes to Adapt to Today’s Mobile Technologies

Apple in Talks with Banks About New Money-Transfer System

Apple is in talks with banks to develop a new payment service to allow an iPhone user to send money to another iPhone user, most likely bypassing Visa and MasterCard by working directly with banks. The talks are at an early stage and no one involved would comment on the evolution of the plan. But multiple sources confirm Apple’s talks with the country’s largest banks and that the company is serious about moving forward. Unknown is whether credit card companies are engaging Apple or waiting for the company to contact them. Continue reading Apple in Talks with Banks About New Money-Transfer System

Google Unveils Android Pay, Improvement Over Google Wallet

Google now offers Android Pay, a mobile phone payment service similar to Apple Pay. Android Pay works with Visa, American Express, Discover and MasterCard and can be used at more than one million retail locations in the U.S. Android Pay requires a phone that runs Android 4.4 KitKat or newer and has a Near Field Communication (NFC) chip, a feature of most Android phones in the last three years. Android Pay, available in the Google Play app store, will come preloaded in new Android phones. Continue reading Google Unveils Android Pay, Improvement Over Google Wallet

Facebook Unveils Peer-to-Peer Payments on Messenger App

Facebook is adding a new feature that allows its users to send each other money through Facebook messages. Users link their debit cards in order to send their friends money. Unlike PayPal or Venmo, users do not have to “cash out” the funds. The payments transfer directly between debit cards. The new service, which is free to Facebook Messenger users, will roll out in the U.S. in the next few months. It will show up in the Messenger app as a dollar sign, next to the icons for text, photos and thumbs up. Continue reading Facebook Unveils Peer-to-Peer Payments on Messenger App

Facebook May Introduce Payments Through its Messenger App

Facebook is reportedly ready to allow money transactions between friends on Messenger, according to hacked screenshots and video from Cycript. The feature will allow users to send money using a debit card, similar to how one would send a picture. In order to enhance security, an in-app pincode has been added. The reasoning behind former PayPal President David Marcus’ move to head of Messenger is now clear. The app could compete with Venmo, PayPal, and Square Cash. Continue reading Facebook May Introduce Payments Through its Messenger App