![\"\"](\"https://www.pymnts.com/wp-content/uploads/2024/09/healthcare-wasted-money.jpg?w=258\")
Embedded lending is growing in popularity around the world. It promises convenient, streamlined access to financing for specific expenses from within merchant, business and other platforms. This is true for individuals and microbusinesses and small businesses (MSBs) that want to align their cash flow and expenses.
\nIn Germany, 14% of consumers and 10% of MSBs overall have recently used this type of lending. We find much greater adoption among key segments. For example, 20% of millennial consumers have recently taken advantage of embedded lending. Among smaller businesses, 18% of those generating between \u20ac1.5 million and \u20ac9.3 million in annual revenue have used it.
\nHowever, users widely experience friction. The biggest problem area is the application process. The fact may be one factor limiting the adoption of this type of lending in Germany. Lenders that address these issues will reach and retain many more customers.
\nThese are some of the key findings explored in \u201cThe Embedded Lending Opportunity: Germany Edition,\u201d a PYMNTS Intelligence report commissioned by Visa. This edition details the state of play for embedded lending in Germany for the consumer and MSB market segments. The report draws on a 360-degree study of lenders and end users, conducted between Jan. 13 and March 15.
\nThis report includes crucial information for lenders looking to become market leaders in embedded lending. Download the report to learn more about what\u2019s next in Germany.
\nThe post Consumers and Smaller Businesses Form an Untapped Embedded Lending Market in Germany appeared first on PYMNTS.com.
\n", "content_text": "Download the Data Brief\n \n The Embedded Lending Opportunity: Germany Edition\n \n \n \n \n \n \n [contact-form-7]\n \n \n \n \n \n\nEmbedded lending is growing in popularity around the world. It promises convenient, streamlined access to financing for specific expenses from within merchant, business and other platforms. This is true for individuals and microbusinesses and small businesses (MSBs) that want to align their cash flow and expenses.\nIn Germany, 14% of consumers and 10% of MSBs overall have recently used this type of lending. We find much greater adoption among key segments. For example, 20% of millennial consumers have recently taken advantage of embedded lending. Among smaller businesses, 18% of those generating between \u20ac1.5 million and \u20ac9.3 million in annual revenue have used it.\nHowever, users widely experience friction. The biggest problem area is the application process. The fact may be one factor limiting the adoption of this type of lending in Germany. Lenders that address these issues will reach and retain many more customers.\nThese are some of the key findings explored in \u201cThe Embedded Lending Opportunity: Germany Edition,\u201d a PYMNTS Intelligence report commissioned by Visa. This edition details the state of play for embedded lending in Germany for the consumer and MSB market segments. The report draws on a 360-degree study of lenders and end users, conducted between Jan. 13 and March 15.\nInside \u201cThe Embedded Lending Opportunity: Germany Edition\u201d:\n\nWhat embedded lending is and how it differs from traditional products\nHow the market in Germany compares to those in other major economies\nWhich consumers and businesses are more likely to use this type of lending\nThe critical role of cash flow stability in predicting demand\nThe pain points consumers and MSBs experience when using this type of lending\nThe obstacles that lenders in Germany face in rolling out products\n\nThis report includes crucial information for lenders looking to become market leaders in embedded lending. Download the report to learn more about what\u2019s next in Germany.\nThe post Consumers and Smaller Businesses Form an Untapped Embedded Lending Market in Germany appeared first on PYMNTS.com.", "date_published": "2024-09-26T04:03:41-04:00", "date_modified": "2024-09-25T21:47:41-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/embedded-lending-germany-edition.jpg", "tags": [ "business growth", "cash flow", "consumer lending", "embedded finance", "embedded lending", "Featured News", "Germany", "Microbusinesses", "News", "PYMNTS Intelligence", "PYMNTS News", "PYMNTS Study", "small businesses", "SMBs", "Visa" ] }, { "id": "https://www.pymnts.com/?p=2105760", "url": "https://www.pymnts.com/insurance/2024/beyond-traditional-banking-insurance-emerges-as-key-to-diversifying-revenue/", "title": "Beyond Traditional Banking: Insurance Emerges as Key to Diversifying Revenue", "content_html": "Banks face a digital shift, pressures on deposits and competition for customer loyalty, so they must constantly fine-tune their operations, embracing new revenue streams and avenues of customer engagement.
\nInsurance may seem like a natural fit for banks large and small. Consumers and commercial enterprises have trust in their primary financial institutions. Plus, insurance becomes a critical component of our financial lives as we get older, start families, and want to protect ourselves, our loved ones and all that we\u2019ve built through the years.
\nFranklin Madison Vice President of Corporate Risk Management Vanessa Stanfield said several factors may be in play that could cause a financial institution to hesitate about marketing insurance to end customers. Simply put, the banks may be focused on what they perceive to be a set of onerous regulatory burdens \u2014 and they may even harbor concerns about the lack of operational expertise needed to craft those marketing campaigns in the first place.
\n\u201cBanks play an important role in the overall financial health of their customers, and offering insurance is another way for them to connect in a meaningful way,\u201d Stanfield said.
\nAlthough the insurance industry is a regulated field, there\u2019s no real barrier to entry for banks.
\n\u201cThere isn\u2019t a huge regulatory burden,\u201d Stanfield said.
\nThe Gramm-Leach-Bliley Act allows commercial banks to diversify into other areas beyond deposits and credit, including insurance, offering these products through subsidiaries. Rules governing insurance-focused efforts have not changed much in 20 years and may not change much in the future, Stanfield said.
\n\u201cThese rules are relatively easy to follow from the banks\u2019 perspective,\u201d she said, where the laws in place mandate that, among other things, consumer-facing disclosures need to be clear and concise.
\nLicensing need not be a daunting hurdle, either, as the National Insurance Producer Registry has uniform licensing applications for state licenses in every state with one application. In addition, the National Association of Insurance Commissioners Producer Licensing Model Act has been adopted by 45 states, which makes it relatively easy for banks to manage licensing compliance, she said.
\nStanfield also noted that, contrary to some additional misconceptions, there\u2019s no balance sheet risk tied to the banks\u2019 sale of insurance. It\u2019s the insurance carriers who underwrite the products and carry all the risk \u2014 so there\u2019s the advantage of generating income without exposing the bank itself to any additional hazard.
\nAs to the operational \u201clift\u201d required to ensure banks comply with mandates, Stanfield said that embracing a partnership model \u2014 outsourcing those functions to providers such as Franklin Madison \u2014 can also smooth go-to-market strategies. There\u2019s a natural progression in using the data and analytics tied to the platform model so that banks can forge marketing campaigns, and even personalized insurance products, that resonate on a customer-by-customer basis.
\n\u201cWe\u2019ve got the marketing experts, we\u2019ve got the compliance experts, and we\u2019re able to put in front of the decision-maker a robust proposal, showing end to end what you can expect, what your customers can expect \u2026 and it\u2019s a pretty compelling proposition,\u201d she said.
\nIn addition, Franklin Madison\u2019s sales team will calculate the revenue stream that can be garnered by the bank over the years based on historical response rates and conversion rates.
\nLooking ahead, Stanfield said the regulatory environment has been stable for banks as they mull bringing insurance to their end customers. That stability is likely to be in place for a while.
\n\u201cWe\u2019re not seeing anything that would impact that environment,\u201d she said, and the time is right to consider how to execute those campaigns sooner rather than later, positively impacting the bank and its customers.
\nThe post Beyond Traditional Banking: Insurance Emerges as Key to Diversifying Revenue appeared first on PYMNTS.com.
\n", "content_text": "Banks face a digital shift, pressures on deposits and competition for customer loyalty, so they must constantly fine-tune their operations, embracing new revenue streams and avenues of customer engagement.\nInsurance may seem like a natural fit for banks large and small. Consumers and commercial enterprises have trust in their primary financial institutions. Plus, insurance becomes a critical component of our financial lives as we get older, start families, and want to protect ourselves, our loved ones and all that we\u2019ve built through the years.\nFranklin Madison Vice President of Corporate Risk Management Vanessa Stanfield said several factors may be in play that could cause a financial institution to hesitate about marketing insurance to end customers. Simply put, the banks may be focused on what they perceive to be a set of onerous regulatory burdens \u2014 and they may even harbor concerns about the lack of operational expertise needed to craft those marketing campaigns in the first place.\n\u201cBanks play an important role in the overall financial health of their customers, and offering insurance is another way for them to connect in a meaningful way,\u201d Stanfield said.\nMisconceptions in the Mix\nAlthough the insurance industry is a regulated field, there\u2019s no real barrier to entry for banks.\n\u201cThere isn\u2019t a huge regulatory burden,\u201d Stanfield said.\nThe Gramm-Leach-Bliley Act allows commercial banks to diversify into other areas beyond deposits and credit, including insurance, offering these products through subsidiaries. Rules governing insurance-focused efforts have not changed much in 20 years and may not change much in the future, Stanfield said.\n\u201cThese rules are relatively easy to follow from the banks\u2019 perspective,\u201d she said, where the laws in place mandate that, among other things, consumer-facing disclosures need to be clear and concise.\nLicensing need not be a daunting hurdle, either, as the National Insurance Producer Registry has uniform licensing applications for state licenses in every state with one application. In addition, the National Association of Insurance Commissioners Producer Licensing Model Act has been adopted by 45 states, which makes it relatively easy for banks to manage licensing compliance, she said.\nStanfield also noted that, contrary to some additional misconceptions, there\u2019s no balance sheet risk tied to the banks\u2019 sale of insurance. It\u2019s the insurance carriers who underwrite the products and carry all the risk \u2014 so there\u2019s the advantage of generating income without exposing the bank itself to any additional hazard.\nOutsourcing in the Mix\nAs to the operational \u201clift\u201d required to ensure banks comply with mandates, Stanfield said that embracing a partnership model \u2014 outsourcing those functions to providers such as Franklin Madison \u2014 can also smooth go-to-market strategies. There\u2019s a natural progression in using the data and analytics tied to the platform model so that banks can forge marketing campaigns, and even personalized insurance products, that resonate on a customer-by-customer basis.\n\u201cWe\u2019ve got the marketing experts, we\u2019ve got the compliance experts, and we\u2019re able to put in front of the decision-maker a robust proposal, showing end to end what you can expect, what your customers can expect \u2026 and it\u2019s a pretty compelling proposition,\u201d she said.\nIn addition, Franklin Madison\u2019s sales team will calculate the revenue stream that can be garnered by the bank over the years based on historical response rates and conversion rates.\nLooking ahead, Stanfield said the regulatory environment has been stable for banks as they mull bringing insurance to their end customers. That stability is likely to be in place for a while.\n\u201cWe\u2019re not seeing anything that would impact that environment,\u201d she said, and the time is right to consider how to execute those campaigns sooner rather than later, positively impacting the bank and its customers.\nThe post Beyond Traditional Banking: Insurance Emerges as Key to Diversifying Revenue appeared first on PYMNTS.com.", "date_published": "2024-09-26T04:02:47-04:00", "date_modified": "2024-09-25T21:50:42-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/Banks-insurance.jpg", "tags": [ "Banks", "data analytics", "digital transformation", "Featured News", "Franklin Madison", "Insurance", "News", "partnerships", "PYMNTS News", "pymnts tv", "regulations", "Vanessa Stanfield", "video" ] }, { "id": "https://www.pymnts.com/?p=2105968", "url": "https://www.pymnts.com/accounts-payable/2024/finexio-ceo-on-why-cfos-cant-afford-to-ignore-automating-payables/", "title": "Finexio CEO on Why CFOs Can\u2019t Afford to Ignore Automating Payables", "content_html": "Manual accounts payable (AP) operations can cost firms more than they might think.
\nAnd the complexity of enterprise AP programs presents a challenge for businesses, particularly as many companies face growing transaction volumes without a corresponding ability to expand staff.
\n\u201cIt\u2019s a serious problem within these AP departments. Completely inefficient manual processes compounded by fragmented systems,\u201d Ernest Rolfson, CEO and founder at\u00a0Finexio, told PYMNTS.
\nRolfson explained that traditional AP operations often involve \u201cswivel chair\u201d activities, with staff manually entering information across disparate platforms, handling paper invoices and issuing physical checks. This fragmented system increases the risk of errors and slows down payment processes while also preventing AP teams from contributing strategically to the business.
\nAt the same time, manually managing sensitive information such as bank accounts or supplier changes exposes companies to fraud \u2014 something that Rolfson highlighted as a major concern for CFOs.
\n\u201cIf I\u2019m manually handling payment information … it\u2019s risk, long story short,\u201d he said, noting that as businesses grow and transaction volumes increase, the risk becomes more pronounced, especially when staffing levels remain static or are limited.
\nThat\u2019s why firms are ditching the paper and cashing in on the savings and efficiencies AP automation can bring, transforming how companies operate and driving strategic value beyond cost savings.
\nRead more: Automating Accounts Payable for Cost Savings
\nAccording to Rolfson \u2014 and he is far from alone in saying so \u2014 AP automation is essential for reducing manual effort, minimizing delays and lowering the likelihood of costly errors.
\nBut the current state of AP in most enterprises is disjointed and relentlessly redundant, with companies often juggling multiple systems across different regions or departments.\u00a0This lack of integration leads to inconsistent data, duplicating efforts and increased risks.
\n\u201cMany large organizations have unconsolidated, disparately run AP locations or departments,\u201d Rolfson said, adding that firms often rely on three to five disconnected systems to manage their accounts payable, which results in a missed opportunity to centralize and streamline AP operations for greater control and visibility.
\nAs a result, AP teams are asked to do more with fewer resources, balancing manual, operational tasks with more strategic responsibilities \u2014 a shift that AP automation platforms are designed to enable by removing time-consuming, repetitive tasks. If you don\u2019t have this in place, \u201cyou really can\u2019t scale without adding more bodies,\u201d Rolfson said.
\nAP automation platforms aim to centralize payments, invoicing and security under a single system. This approach offers a streamlined view of all cash flow activities, making it easier for businesses to track payments in real time while also providing a single source of truth for data-driven decisions. By automating payment execution, exception handling and fraud prevention, companies can reduce the workload for their AP teams, often cutting down the time spent on these tasks by up to 84%, Rolfson said.
\nWhen companies\u00a0 assess how well their AP systems might be doing, the entrenched fragmentation of the space can make it difficult to measure the return on investment (ROI) for their AP processes, as it is nearly impossible to gauge performance across such disparate systems. This is ironic, because one of the greatest benefits of AP automation is the ability to demonstrate clear ROI through consolidated operations and real-time reporting.
\nAs AP automation evolves, artificial intelligence (AI) and machine learning are playing a critical role in optimizing processes.
\nRolfson pointed out that AI can provide both real-time and predictive analytics, improving speed and efficiency while helping companies make smarter decisions about payments and supplier management.
\nOne area where Finexio has seen success with AI is supplier management. Rolfson highlighted that the Finexio platform uses AI to predict the most efficient payment method for each supplier, eliminating much of the guesswork that bogs down AP teams and transforming payment operations from a manual process to a data-driven one.
\nBy leveraging AI to analyze payment data and trends, automated AP innovations can help businesses transition from costly manual methods like checks to more efficient electronic payments, ultimately turning AP into a revenue-generating department rather than a cost center. This capability is particularly important for companies managing thousands of suppliers, many of whom may change their payment preferences annually \u2014 a challenge that AI can effectively address by anticipating and responding to these shifts in real time.
\nAs businesses transition to digital platforms, it becomes essential to track and analyze every aspect of their financial operations. Rolfson said that one of the industry\u2019s biggest shortcomings is the lack of analytics and benchmarking tools to help companies assess their performance \u2014 a gap that Finexio is addressing with its customer value dashboard.
\n\u201cYou can\u2019t manage or improve anything that you can\u2019t measure,\u201d he said, underscoring the importance of data-driven decision-making in AP processes and how Finexio\u2019s platform enables real-time visibility into every transaction.
\n\u201cSome of the biggest problems we run into is that companies don\u2019t even know who they\u2019re paying. They don\u2019t have a great record of their vendors; they don\u2019t have a great vendor master; they don\u2019t have tax IDs; they have almost no knowledge,\u201d Rolfson added.
\nFinexio stands out, he said, by offering a customer value dashboard that tracks every transaction and supplier interaction, assigning a monetary value to each task. This level of granular insight is invaluable for companies looking to optimize their operations.
\n\u201cWe know, hey, you had 200 vendors change their banking information. We know what that\u2019s worth to you,\u201d Rolfson said, underscoring the platform\u2019s ability to translate efficiencies into tangible savings.
\nIn addition to cost savings, automated systems also help prevent fraud by removing human intervention from sensitive tasks. Advanced fraud detection tools, such as real-time transaction monitoring and counterparty validation, are essential in protecting companies from sophisticated threats. The combination of AI-driven analytics and enhanced security measures enables businesses to scale their operations while maintaining a high level of trust in their payment processes by continuously monitoring for anomalies and validating payment changes in real time.
\nMoreover, digital platforms allow for real-time visibility into cash flow, enabling CFOs and AP teams to make more informed decisions about supplier relationships and payment methods, turning AP departments into strategic enablers for the business.
\nLooking ahead, Rolfson said that Finexio is making its business-to-business (B2B) payment platform even more accessible via continued investment in the API infrastructure layer.
\n\u201cWe\u2019re making that the infrastructure, the data, the underlying software, more available via API and via integration to let others bring components of this out into the market,\u201d he said.
\nThe post Finexio CEO on Why CFOs Can’t Afford to Ignore Automating Payables appeared first on PYMNTS.com.
\n", "content_text": "Manual accounts payable (AP) operations can cost firms more than they might think. \nAnd the complexity of enterprise AP programs presents a challenge for businesses, particularly as many companies face growing transaction volumes without a corresponding ability to expand staff.\n\u201cIt\u2019s a serious problem within these AP departments. Completely inefficient manual processes compounded by fragmented systems,\u201d Ernest Rolfson, CEO and founder at\u00a0Finexio, told PYMNTS. \nRolfson explained that traditional AP operations often involve \u201cswivel chair\u201d activities, with staff manually entering information across disparate platforms, handling paper invoices and issuing physical checks. This fragmented system increases the risk of errors and slows down payment processes while also preventing AP teams from contributing strategically to the business.\nAt the same time, manually managing sensitive information such as bank accounts or supplier changes exposes companies to fraud \u2014 something that Rolfson highlighted as a major concern for CFOs. \n\u201cIf I\u2019m manually handling payment information … it\u2019s risk, long story short,\u201d he said, noting that as businesses grow and transaction volumes increase, the risk becomes more pronounced, especially when staffing levels remain static or are limited. \nThat\u2019s why firms are ditching the paper and cashing in on the savings and efficiencies AP automation can bring, transforming how companies operate and driving strategic value beyond cost savings.\nRead more: Automating Accounts Payable for Cost Savings\nCutting Costs, Boosting Efficiency\nAccording to Rolfson \u2014 and he is far from alone in saying so \u2014 AP automation is essential for reducing manual effort, minimizing delays and lowering the likelihood of costly errors. \nBut the current state of AP in most enterprises is disjointed and relentlessly redundant, with companies often juggling multiple systems across different regions or departments.\u00a0This lack of integration leads to inconsistent data, duplicating efforts and increased risks. \n\u201cMany large organizations have unconsolidated, disparately run AP locations or departments,\u201d Rolfson said, adding that firms often rely on three to five disconnected systems to manage their accounts payable, which results in a missed opportunity to centralize and streamline AP operations for greater control and visibility.\nAs a result, AP teams are asked to do more with fewer resources, balancing manual, operational tasks with more strategic responsibilities \u2014 a shift that AP automation platforms are designed to enable by removing time-consuming, repetitive tasks. If you don\u2019t have this in place, \u201cyou really can\u2019t scale without adding more bodies,\u201d Rolfson said.\nAP automation platforms aim to centralize payments, invoicing and security under a single system. This approach offers a streamlined view of all cash flow activities, making it easier for businesses to track payments in real time while also providing a single source of truth for data-driven decisions. By automating payment execution, exception handling and fraud prevention, companies can reduce the workload for their AP teams, often cutting down the time spent on these tasks by up to 84%, Rolfson said. \nWhen companies\u00a0 assess how well their AP systems might be doing, the entrenched fragmentation of the space can make it difficult to measure the return on investment (ROI) for their AP processes, as it is nearly impossible to gauge performance across such disparate systems. This is ironic, because one of the greatest benefits of AP automation is the ability to demonstrate clear ROI through consolidated operations and real-time reporting.\nDriving ROI Through AP Automation\nAs AP automation evolves, artificial intelligence (AI) and machine learning are playing a critical role in optimizing processes. \nRolfson pointed out that AI can provide both real-time and predictive analytics, improving speed and efficiency while helping companies make smarter decisions about payments and supplier management.\n One area where Finexio has seen success with AI is supplier management. Rolfson highlighted that the Finexio platform uses AI to predict the most efficient payment method for each supplier, eliminating much of the guesswork that bogs down AP teams and transforming payment operations from a manual process to a data-driven one.\nBy leveraging AI to analyze payment data and trends, automated AP innovations can help businesses transition from costly manual methods like checks to more efficient electronic payments, ultimately turning AP into a revenue-generating department rather than a cost center. This capability is particularly important for companies managing thousands of suppliers, many of whom may change their payment preferences annually \u2014 a challenge that AI can effectively address by anticipating and responding to these shifts in real time.\nAs businesses transition to digital platforms, it becomes essential to track and analyze every aspect of their financial operations. Rolfson said that one of the industry\u2019s biggest shortcomings is the lack of analytics and benchmarking tools to help companies assess their performance \u2014 a gap that Finexio is addressing with its customer value dashboard. \n\u201cYou can\u2019t manage or improve anything that you can\u2019t measure,\u201d he said, underscoring the importance of data-driven decision-making in AP processes and how Finexio\u2019s platform enables real-time visibility into every transaction.\n\u201cSome of the biggest problems we run into is that companies don\u2019t even know who they\u2019re paying. They don\u2019t have a great record of their vendors; they don\u2019t have a great vendor master; they don\u2019t have tax IDs; they have almost no knowledge,\u201d Rolfson added. \nFinexio stands out, he said, by offering a customer value dashboard that tracks every transaction and supplier interaction, assigning a monetary value to each task. This level of granular insight is invaluable for companies looking to optimize their operations. \n\u201cWe know, hey, you had 200 vendors change their banking information. We know what that\u2019s worth to you,\u201d Rolfson said, underscoring the platform\u2019s ability to translate efficiencies into tangible savings.\nIn addition to cost savings, automated systems also help prevent fraud by removing human intervention from sensitive tasks. Advanced fraud detection tools, such as real-time transaction monitoring and counterparty validation, are essential in protecting companies from sophisticated threats. The combination of AI-driven analytics and enhanced security measures enables businesses to scale their operations while maintaining a high level of trust in their payment processes by continuously monitoring for anomalies and validating payment changes in real time.\nMoreover, digital platforms allow for real-time visibility into cash flow, enabling CFOs and AP teams to make more informed decisions about supplier relationships and payment methods, turning AP departments into strategic enablers for the business.\nLooking ahead, Rolfson said that Finexio is making its business-to-business (B2B) payment platform even more accessible via continued investment in the API infrastructure layer. \n\u201cWe\u2019re making that the infrastructure, the data, the underlying software, more available via API and via integration to let others bring components of this out into the market,\u201d he said. \nThe post Finexio CEO on Why CFOs Can’t Afford to Ignore Automating Payables appeared first on PYMNTS.com.", "date_published": "2024-09-26T04:01:39-04:00", "date_modified": "2024-09-25T21:54:11-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/Finexio.jpg", "tags": [ "Accounts Payable", "AI", "AP", "AP automation", "artificial intelligence", "Ernest Rolfson", "Featured News", "Finexio", "machine learning", "News", "PYMNTS News", "pymnts tv", "video" ] }, { "id": "https://www.pymnts.com/?p=2105975", "url": "https://www.pymnts.com/technology/2024/bank-of-america-tech-turns-global-trade-paper-jams-into-payment-streams/", "title": "BofA: Tech Turns Global Trade\u2019s Paper Jams Into Payment Streams", "content_html": "Global trade, at its heart, is about receivables. One company owes another for the goods or services it has purchased.
\nWhile that may sound simple enough, businesses engaged in international trade contend with a range of factors, from geopolitical risks to environmental hazards, that can disrupt supply chains, delay payments and trap valuable working capital.
\n\u201cDecades of globalization have led to supply chains becoming increasingly complex,\u201d Duncan Lodge, global head of supply chain finance and EMEA head of trade at Bank of America, told PYMNTS. \u201cIf you\u2019re dealing with a new company in a different country for the first time, how much do you really know about them? Visibility and resiliency become\u201d important areas of focus.
\nInternational commerce and trade often span multiple geographies, involve numerous counterparties and rely on a variety of transportation modes, he said.
\nBeyond these external risks, the traditional \u2014 and ongoing \u2014 reliance on paper-based processes can create additional friction and increase the amount of trapped working capital.
\nLodge stressed that different countries have varying levels of digital maturity, meaning that paper still plays a role depending on where firms do business.
\n\u201cAt any time, when you have paper, you introduce manual processes,\u201d he said. \u201cThat means someone has to extract information, process it and ensure its accuracy \u2014 introducing delays, inefficiencies and the potential for error.\u201d
\nDigital innovations are addressing these pain points and unlocking opportunities for businesses around the globe.
\nOne of the key drawbacks of relying on paper documentation is the reduced end-to-end visibility.
\nAs soon as an exporter sends off their documentation, they lose sight of what\u2019s happening to their transaction, Lodge explained.
\n\u201cIs the buyer encountering problems with the documents?\u201d he said. \u201cWhen will they get paid? This uncertainty represents trapped working capital for both the buyer and the seller.\u201d
\nGiven these longstanding challenges, Lodge emphasized the importance of digital transformation in global trade.
\n\u201cEradicating paper brings significant benefits in terms of speed, reduced processing risks and improved visibility between counterparties,\u201d he said.
\nThis visibility is crucial for managing counterparty and performance risks \u2014 both key concerns in international trade.
\nDigitalization also unlocks the potential for new forms of financing. For instance, purchase order financing relies heavily on the availability of real-time data. Paper-based processes slow down access to that data, limiting the opportunities for businesses to secure financing earlier in the procurement cycle. Digital trade documentation, on the other hand, provides better data that can be fed into financing models, opening new avenues for liquidity, Lodge explained.
\n\u201cIf investors have better data, they can better understand credit and performance risk dynamics, making trade finance and receivables more investable as an asset class,\u201d he said. \u201cThis, in turn, helps plug the trade finance gap \u2014 a gap that is only increasing as more companies seek to engage in global trade.\u201d
\nAs digitalization gains traction, advanced technologies like APIs are being integrated into trade finance operations to help mitigate payment risks via data visibility. Much of the data that businesses need to make informed decisions is trapped in silos, often within a company\u2019s enterprise resource planning (ERP) system or with third-party logistics providers.
\nAPIs play a role in breaking down these silos and allow companies to access the information they need in real time, Lodge said.
\n\u201cAPIs have been used extensively in consumer applications, but we\u2019re now seeing how they can be applied to trade finance to stitch together ecosystems and expose the necessary data,\u201d he said.
\nBy integrating APIs, logistics providers can share valuable information about the movement of goods, helping buyers and suppliers optimize their processes and reduce uncertainty.
\nAnother key technology that Lodge highlighted as playing an important role in trade finance is optical character recognition (OCR). While digitalization advances, paper documentation is still hard to eradicate entirely, especially in certain jurisdictions where paper-based documents like bills of lading are still legally required.
\nWhile OCR has been around for years, the current iteration of the technology has improved its capabilities. Next-gen OCR, unlike previous solutions, can operate with a high degree of accuracy, helping bridge the gap between physical and digital processes and allowing businesses to extract data from paper documents until full digital adoption is possible, Lodge said.
\nIn addition to APIs and OCR, Lodge highlighted the importance of an ecosystem approach to trade finance technology.
\n\u201cIt\u2019s very hard to get all companies to coalesce around a single platform,\u201d he said. \u201cInstead, we need to focus on maximizing the interoperability of platforms so transactions can move seamlessly across different systems. The ability to join the dots across different platforms will be key to driving further digitalization and unlocking the full potential of global trade.\u201d
\nThe post BofA: Tech Turns Global Trade\u2019s Paper Jams Into Payment Streams appeared first on PYMNTS.com.
\n", "content_text": "Global trade, at its heart, is about receivables. One company owes another for the goods or services it has purchased.\nWhile that may sound simple enough, businesses engaged in international trade contend with a range of factors, from geopolitical risks to environmental hazards, that can disrupt supply chains, delay payments and trap valuable working capital.\n\u201cDecades of globalization have led to supply chains becoming increasingly complex,\u201d Duncan Lodge, global head of supply chain finance and EMEA head of trade at Bank of America, told PYMNTS. \u201cIf you\u2019re dealing with a new company in a different country for the first time, how much do you really know about them? Visibility and resiliency become\u201d important areas of focus.\nInternational commerce and trade often span multiple geographies, involve numerous counterparties and rely on a variety of transportation modes, he said.\nBeyond these external risks, the traditional \u2014 and ongoing \u2014 reliance on paper-based processes can create additional friction and increase the amount of trapped working capital.\nLodge stressed that different countries have varying levels of digital maturity, meaning that paper still plays a role depending on where firms do business.\n\u201cAt any time, when you have paper, you introduce manual processes,\u201d he said. \u201cThat means someone has to extract information, process it and ensure its accuracy \u2014 introducing delays, inefficiencies and the potential for error.\u201d\nDigital innovations are addressing these pain points and unlocking opportunities for businesses around the globe.\nOvercoming the Legacy Challenges of Global Trade\nOne of the key drawbacks of relying on paper documentation is the reduced end-to-end visibility.\nAs soon as an exporter sends off their documentation, they lose sight of what\u2019s happening to their transaction, Lodge explained.\n\u201cIs the buyer encountering problems with the documents?\u201d he said. \u201cWhen will they get paid? This uncertainty represents trapped working capital for both the buyer and the seller.\u201d\nGiven these longstanding challenges, Lodge emphasized the importance of digital transformation in global trade.\n\u201cEradicating paper brings significant benefits in terms of speed, reduced processing risks and improved visibility between counterparties,\u201d he said.\nThis visibility is crucial for managing counterparty and performance risks \u2014 both key concerns in international trade.\nDigitalization also unlocks the potential for new forms of financing. For instance, purchase order financing relies heavily on the availability of real-time data. Paper-based processes slow down access to that data, limiting the opportunities for businesses to secure financing earlier in the procurement cycle. Digital trade documentation, on the other hand, provides better data that can be fed into financing models, opening new avenues for liquidity, Lodge explained.\n\u201cIf investors have better data, they can better understand credit and performance risk dynamics, making trade finance and receivables more investable as an asset class,\u201d he said. \u201cThis, in turn, helps plug the trade finance gap \u2014 a gap that is only increasing as more companies seek to engage in global trade.\u201d\nUsing Technology to Mitigate Global Payment Risks\nAs digitalization gains traction, advanced technologies like APIs are being integrated into trade finance operations to help mitigate payment risks via data visibility. Much of the data that businesses need to make informed decisions is trapped in silos, often within a company\u2019s enterprise resource planning (ERP) system or with third-party logistics providers.\nAPIs play a role in breaking down these silos and allow companies to access the information they need in real time, Lodge said.\n\u201cAPIs have been used extensively in consumer applications, but we\u2019re now seeing how they can be applied to trade finance to stitch together ecosystems and expose the necessary data,\u201d he said.\nBy integrating APIs, logistics providers can share valuable information about the movement of goods, helping buyers and suppliers optimize their processes and reduce uncertainty.\nAnother key technology that Lodge highlighted as playing an important role in trade finance is optical character recognition (OCR). While digitalization advances, paper documentation is still hard to eradicate entirely, especially in certain jurisdictions where paper-based documents like bills of lading are still legally required.\nWhile OCR has been around for years, the current iteration of the technology has improved its capabilities. Next-gen OCR, unlike previous solutions, can operate with a high degree of accuracy, helping bridge the gap between physical and digital processes and allowing businesses to extract data from paper documents until full digital adoption is possible, Lodge said.\nIn addition to APIs and OCR, Lodge highlighted the importance of an ecosystem approach to trade finance technology.\n\u201cIt\u2019s very hard to get all companies to coalesce around a single platform,\u201d he said. \u201cInstead, we need to focus on maximizing the interoperability of platforms so transactions can move seamlessly across different systems. The ability to join the dots across different platforms will be key to driving further digitalization and unlocking the full potential of global trade.\u201d\nThe post BofA: Tech Turns Global Trade\u2019s Paper Jams Into Payment Streams appeared first on PYMNTS.com.", "date_published": "2024-09-26T04:00:36-04:00", "date_modified": "2024-09-25T21:30:14-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/Bank-of-America-trade.jpg", "tags": [ "APIs", "Bank of America", "data", "digital transformation", "Duncan Lodge", "Featured News", "global trade", "Innovation", "logistics", "News", "optical character recognition", "PYMNTS News", "pymnts tv", "supply chain management", "Technology", "Trade finance", "video", "working capital" ] }, { "id": "https://www.pymnts.com/?p=2106161", "url": "https://www.pymnts.com/healthcare/2024/84-of-healthcare-organizations-report-financial-losses-due-to-outdated-ar-processes/", "title": "84% of Healthcare Organizations Report Financial Losses Due to Outdated AR Processes", "content_html": "In an era where convenience is king, the healthcare sector remains shackled by outdated payment processes that jeopardize its financial stability. Despite the promise of digital solutions to enhance efficiency and patient experiences, the industry has been slow to adopt these innovations.
\nA\u00a0PYMNTS Intelligence Report, \u201cPains and Gains: Conquering Healthcare\u2019s Payment Woes,\u201d in collaboration with American Express, highlights critical inefficiencies in healthcare payments and reveals how digital transformation could provide much-needed relief.
\nInefficient payment systems threaten the financial health of healthcare organizations. More than half of payment leaders are concerned about delays in processing payments and claims, which they see as significant operational risks.
\n
While 80% believe streamlining these processes is crucial, only 53% have adequately automated their workflows, indicating a reliance on manual methods that result in costly errors and lost revenue. Consider 84% of organizations report financial losses due to outdated accounts receivable processes, and 85% recognize the urgent need to improve payment experiences, emphasizing the demand for a comprehensive overhaul.
\nA dependency on traditional paper statements escalates collection delays. Nearly 70% of providers still use paper for patient communications, while 50% cite that as a primary concern in managing revenue cycles. This antiquated practice not only hampers timely collections, but also prevents healthcare providers from tapping into the efficiency gains offered by digital payment solutions.
\nAs healthcare begins to recognize the potential of digital payment solutions, innovative companies are stepping in to fill the gaps. For instance, Weave recently introduced payment installment plans that allow healthcare businesses to automate recurring payments, enhancing both patient convenience and administrative efficiency. These types of solutions can alleviate some of the $760 billion to $935 billion wasted annually due to payment inefficiencies.
\nPartnerships are also emerging to leverage technology for improved financial operations. Companies like Waystar and Meditech are using artificial intelligence (AI) to streamline billing processes and reduce operational costs. By automating payment workflows and enhancing claims accuracy, they aim to create a leaner healthcare ecosystem.
\nPlanet DDS further illustrates this trend with Cloud 9 Pay, which simplifies payment processing in specialized healthcare settings through features like contactless payments and compliance automation.
\nDespite the advantages of digital payments, barriers to adoption persist. Cybersecurity risks present a formidable challenge, as the report found 78% of healthcare organizations experienced at least one cybersecurity incident in the past year, impacting care delivery for more than 60% of respondents. These threats underscore the necessity for robust security measures as the sector transitions to digital systems.
\nAdditionally, patient acceptance remains a hurdle. About 26% of healthcare professionals report that patient resistance is a key obstacle to implementing digital payment solutions. Educating patients about these technologies is crucial to alleviate their concerns, particularly among older demographics who may feel intimidated by modern payment methods.
\nThe healthcare industry faces significant challenges that require a multifaceted approach to payment modernization. Key strategies include democratizing access to digital payment resources through education, enhancing patient communication with integrated platforms, and adopting AI-driven billing models for precise cost estimates. Additionally, a comprehensive digital health wallet could streamline transactions while ensuring robust cybersecurity.
\nTo navigate these complexities and reap the rewards of modernization, the sector must embrace digital transformation, which promises to enhance efficiency, improve patient experiences, and secure financial stability.
\nThe post 84% of Healthcare Organizations Report Financial Losses Due to Outdated AR Processes appeared first on PYMNTS.com.
\n", "content_text": "In an era where convenience is king, the healthcare sector remains shackled by outdated payment processes that jeopardize its financial stability. Despite the promise of digital solutions to enhance efficiency and patient experiences, the industry has been slow to adopt these innovations. \nA\u00a0PYMNTS Intelligence Report, \u201cPains and Gains: Conquering Healthcare\u2019s Payment Woes,\u201d in collaboration with American Express, highlights critical inefficiencies in healthcare payments and reveals how digital transformation could provide much-needed relief.\nPayment Crisis in Healthcare\nInefficient payment systems threaten the financial health of healthcare organizations. More than half of payment leaders are concerned about delays in processing payments and claims, which they see as significant operational risks.\n\nWhile 80% believe streamlining these processes is crucial, only 53% have adequately automated their workflows, indicating a reliance on manual methods that result in costly errors and lost revenue. Consider 84% of organizations report financial losses due to outdated accounts receivable processes, and 85% recognize the urgent need to improve payment experiences, emphasizing the demand for a comprehensive overhaul.\nA dependency on traditional paper statements escalates collection delays. Nearly 70% of providers still use paper for patient communications, while 50% cite that as a primary concern in managing revenue cycles. This antiquated practice not only hampers timely collections, but also prevents healthcare providers from tapping into the efficiency gains offered by digital payment solutions.\nHarnessing Digital Solutions\nAs healthcare begins to recognize the potential of digital payment solutions, innovative companies are stepping in to fill the gaps. For instance, Weave recently introduced payment installment plans that allow healthcare businesses to automate recurring payments, enhancing both patient convenience and administrative efficiency. These types of solutions can alleviate some of the $760 billion to $935 billion wasted annually due to payment inefficiencies.\nPartnerships are also emerging to leverage technology for improved financial operations. Companies like Waystar and Meditech are using artificial intelligence (AI) to streamline billing processes and reduce operational costs. By automating payment workflows and enhancing claims accuracy, they aim to create a leaner healthcare ecosystem.\nPlanet DDS further illustrates this trend with Cloud 9 Pay, which simplifies payment processing in specialized healthcare settings through features like contactless payments and compliance automation.\nNavigating Obstacles\nDespite the advantages of digital payments, barriers to adoption persist. Cybersecurity risks present a formidable challenge, as the report found 78% of healthcare organizations experienced at least one cybersecurity incident in the past year, impacting care delivery for more than 60% of respondents. These threats underscore the necessity for robust security measures as the sector transitions to digital systems.\nAdditionally, patient acceptance remains a hurdle. About 26% of healthcare professionals report that patient resistance is a key obstacle to implementing digital payment solutions. Educating patients about these technologies is crucial to alleviate their concerns, particularly among older demographics who may feel intimidated by modern payment methods.\nThe healthcare industry faces significant challenges that require a multifaceted approach to payment modernization. Key strategies include democratizing access to digital payment resources through education, enhancing patient communication with integrated platforms, and adopting AI-driven billing models for precise cost estimates. Additionally, a comprehensive digital health wallet could streamline transactions while ensuring robust cybersecurity.\nTo navigate these complexities and reap the rewards of modernization, the sector must embrace digital transformation, which promises to enhance efficiency, improve patient experiences, and secure financial stability. \nThe post 84% of Healthcare Organizations Report Financial Losses Due to Outdated AR Processes appeared first on PYMNTS.com.", "date_published": "2024-09-26T04:00:24-04:00", "date_modified": "2024-09-25T20:29:35-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/healthcare-payments-xx.jpg", "tags": [ "accounts receivable", "American Express", "Cloud 9 Pay", "digital transformation", "Featured News", "Healthcare", "Healthcare payments", "Meditech", "News", "Planet DDS", "PYMNTS Intelligence", "PYMNTS News", "The Data Point", "waystar", "Weave" ] }, { "id": "https://www.pymnts.com/?p=2106190", "url": "https://www.pymnts.com/visa/2024/shifting-digital-payment-trends-prompt-new-visa-credential-system/", "title": "Shifting Digital Payment Trends Prompt New Visa Credential System", "content_html": "For decades, different payment cards existed to serve different purposes: Credit cards have offered the option to pay in full or revolve and pay the minimum balance, and rewards and loyalty programs have varied wildly. Debit cards provide access to funds on hand.
\nWe\u2019ve seen innovation now evolve to reinvent the credit experience with installments and buy now, pay later (BNPL), and debit evolve to an account-to-account (A2A) relationship via open banking. Rewards cards become platforms for creating new ecosystems. But now, as commerce spans the digital and physical realms, Visa Issuing Solutions SVP Kathleen Pierce-Gilmore told Karen Webster in a PYMNTS TV segment, payments are being embedded into a variety of online and offline use cases.\u00a0
\nAs she noted to Webster, \u201cthe pace of change across the last 50 years has been nothing in comparison to what has happened over the last five years.\u201d
\nAlong the way, the payments network is forging smart credentials that go beyond data encryption. Tokenized experiences \u2014 still in early days \u2014 bring issuers the opportunity to add relevance to consumer use of their digital credentials. The consumer is at the center of it all, building upon the trust and confidence that comes with global acceptance of transacting anywhere in the world with most any merchant.
\nConsumers, Pierce-Gilmore said, gravitate toward the latest technologies, and now they are looking for issuers to provide a broad range of different payment options \u2014 and the choice of how they want to settle the transaction after it\u2019s actually been completed.
\nVisa earlier this year announced its Flexible Credentials\u00a0offering, which lets users access several accounts and toggle between payment methods, including credit, debit and BNPL.
\n\u201cWe\u2019re putting maneuverability in the hands of the consumer,\u201d said Pierce-Gilmore, \u201cbuilt off of all of the tremendous infrastructure, scale and security that\u2019s been built up over decades \u2026 we\u2019re shifting from the physical credit card or debit card to a set of digital credentials.\u201d
\nThe PAN, she said, has morphed into the token that goes with consumers everywhere they go. Elsewhere, with Visa\u2019s Click to Pay options, Pierce-Gilmore said, consumers can opt to have their preregistered Visa card be the default payment mechanism at checkout. Pierce-Gilmore added that flexible credentials also enable consumers to manage their transactions after the fact \u2014 to better understand how and where they are spending.
\nThat level of choice is necessary, said Pierce-Gilmore, who added that \u201cto retain the relationship, they need to give this flexibility to the consumer \u2026 and the issuer needs to go where the consumer is.\u201d
\nAt a high level, \u201cthe ability to get your card into your digital wallet has to be simple,\u201d she said, \u201cand digital issuance and provisioning has to be easy for a consumer \u2014 wherever they are \u2014 when they want to get their credentials into those wallets.\u201d
\nThat\u2019s no easy task for the issuers, as they are busy grappling with new regulations, she told Webster, and a daunting technological challenge to become more \u201cdigital\u201d across all levels of their\u00a0 business. There\u2019s still work to be done as they strive to embrace digital issuance or offer individuals in-app provisioning to their favorite digital wallet. Visa\u2019s software developer kits (SDKs), she said, can shave months off that workload.
\n\u201cThe SDK \u2026 is a way to make it a lighter lift for our issuers,\u201d she said, \u201cfor digital provisioning, digital issuance, in app provisioning and subscription manager \u2014 which helps understand how consumers are engaging with brands.\u201d
\nOnce the cards are provisioned, she said, artificial intelligence (AI) can be and is being harnessed to create personalized experience throughout the customer lifecycle. Pierce-Gilmore said AI-assisted shopping can offer better and more prescient recommendations as consumers interact with various brands.\u00a0
\nOn the back end, she said, the merchants and issuers are able to resolve disputes more quickly or glean customer-level data that can lead to a better experience online, and in brick-and-mortar locations too.
\nA better shopping experience, she said, is created through AI-underpinned loyalty and rewards offerings that are contextualized in real time (and on a merchant-by-merchant basis), which in turn are informed by the use of the Visa flexible credentials.
\nThe end result is a seamless experience across channels, she said, in the aisles (\u201cI can\u2019t stand watching an inefficient payment experience,\u201d she said) and online, where no one has to click through a dozen steps in order to transact.
\nNo matter the setting or the payments type, battling fraud is essential, she said, and the company continues to innovate in the fraud-defense space. The flexible offerings, she said, can make sure that digital credentials are provisioned to wallets almost immediately, so that consumers and issuers can protect themselves in real time.
\n\u201cYou can continue shopping,\u201d she said, \u201cand there is never the need to get a physical card \u2014 so one potential point of vulnerability is taken out of the mix.\u201d
\nAs she told Webster, for issuers and for Visa, as it serves those issuers, \u201cyou cannot take your eye off the ball. You have to participate in whatever the consumer is using \u2014 and with the notion of tokenization and the payment token itself \u2026 there\u2019s a whole world of innovation that\u2019s going to follow.\u201d
\nThe post Shifting Digital Payment Trends Prompt New Visa Credential System appeared first on PYMNTS.com.
\n", "content_text": "For decades, different payment cards existed to serve different purposes: Credit cards have offered the option to pay in full or revolve and pay the minimum balance, and rewards and loyalty programs have varied wildly. Debit cards provide access to funds on hand.\nWe\u2019ve seen innovation now evolve to reinvent the credit experience with installments and buy now, pay later (BNPL), and debit evolve to an account-to-account (A2A) relationship via open banking. Rewards cards become platforms for creating new ecosystems. But now, as commerce spans the digital and physical realms, Visa Issuing Solutions SVP Kathleen Pierce-Gilmore told Karen Webster in a PYMNTS TV segment, payments are being embedded into a variety of online and offline use cases.\u00a0 \nAs she noted to Webster, \u201cthe pace of change across the last 50 years has been nothing in comparison to what has happened over the last five years.\u201d\nAlong the way, the payments network is forging smart credentials that go beyond data encryption. Tokenized experiences \u2014 still in early days \u2014 bring issuers the opportunity to add relevance to consumer use of their digital credentials. The consumer is at the center of it all, building upon the trust and confidence that comes with global acceptance of transacting anywhere in the world with most any merchant. \nConsumers, Pierce-Gilmore said, gravitate toward the latest technologies, and now they are looking for issuers to provide a broad range of different payment options \u2014 and the choice of how they want to settle the transaction after it\u2019s actually been completed.\nFlexible Credentials\nVisa earlier this year announced its Flexible Credentials\u00a0offering, which lets users access several accounts and toggle between payment methods, including credit, debit and BNPL. \n\u201cWe\u2019re putting maneuverability in the hands of the consumer,\u201d said Pierce-Gilmore, \u201cbuilt off of all of the tremendous infrastructure, scale and security that\u2019s been built up over decades \u2026 we\u2019re shifting from the physical credit card or debit card to a set of digital credentials.\u201d \nThe PAN, she said, has morphed into the token that goes with consumers everywhere they go. Elsewhere, with Visa\u2019s Click to Pay options, Pierce-Gilmore said, consumers can opt to have their preregistered Visa card be the default payment mechanism at checkout. Pierce-Gilmore added that flexible credentials also enable consumers to manage their transactions after the fact \u2014 to better understand how and where they are spending. \nThat level of choice is necessary, said Pierce-Gilmore, who added that \u201cto retain the relationship, they need to give this flexibility to the consumer \u2026 and the issuer needs to go where the consumer is.\u201d\nAt a high level, \u201cthe ability to get your card into your digital wallet has to be simple,\u201d she said, \u201cand digital issuance and provisioning has to be easy for a consumer \u2014 wherever they are \u2014 when they want to get their credentials into those wallets.\u201d\nIssuers and Regulators\nThat\u2019s no easy task for the issuers, as they are busy grappling with new regulations, she told Webster, and a daunting technological challenge to become more \u201cdigital\u201d across all levels of their\u00a0 business. There\u2019s still work to be done as they strive to embrace digital issuance or offer individuals in-app provisioning to their favorite digital wallet. Visa\u2019s software developer kits (SDKs), she said, can shave months off that workload.\n\u201cThe SDK \u2026 is a way to make it a lighter lift for our issuers,\u201d she said, \u201cfor digital provisioning, digital issuance, in app provisioning and subscription manager \u2014 which helps understand how consumers are engaging with brands.\u201d\nOnce the cards are provisioned, she said, artificial intelligence (AI) can be and is being harnessed to create personalized experience throughout the customer lifecycle. Pierce-Gilmore said AI-assisted shopping can offer better and more prescient recommendations as consumers interact with various brands.\u00a0 \nOn the back end, she said, the merchants and issuers are able to resolve disputes more quickly or glean customer-level data that can lead to a better experience online, and in brick-and-mortar locations too. \nA better shopping experience, she said, is created through AI-underpinned loyalty and rewards offerings that are contextualized in real time (and on a merchant-by-merchant basis), which in turn are informed by the use of the Visa flexible credentials.\nReal-Time Protection\nThe end result is a seamless experience across channels, she said, in the aisles (\u201cI can\u2019t stand watching an inefficient payment experience,\u201d she said) and online, where no one has to click through a dozen steps in order to transact.\nNo matter the setting or the payments type, battling fraud is essential, she said, and the company continues to innovate in the fraud-defense space. The flexible offerings, she said, can make sure that digital credentials are provisioned to wallets almost immediately, so that consumers and issuers can protect themselves in real time.\n\u201cYou can continue shopping,\u201d she said, \u201cand there is never the need to get a physical card \u2014 so one potential point of vulnerability is taken out of the mix.\u201d\nAs she told Webster, for issuers and for Visa, as it serves those issuers, \u201cyou cannot take your eye off the ball. You have to participate in whatever the consumer is using \u2014 and with the notion of tokenization and the payment token itself \u2026 there\u2019s a whole world of innovation that\u2019s going to follow.\u201d\nThe post Shifting Digital Payment Trends Prompt New Visa Credential System appeared first on PYMNTS.com.", "date_published": "2024-09-26T04:00:16-04:00", "date_modified": "2024-09-25T21:23:11-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/Visa-Flex-Credential-payments.jpg", "tags": [ "Consumer Spending", "credit cards", "Flexible Credentials", "Kathleen Pierce-Gilmore", "Main Feature", "News", "payment options", "PYMNTS News", "pymnts tv", "smart credentials", "video", "VISA" ] }, { "id": "https://www.pymnts.com/?p=2106218", "url": "https://www.pymnts.com/artificial-intelligence-2/2024/report-openai-plans-to-restructure-and-become-for-profit-benefit-corporation/", "title": "Report: OpenAI Plans to Restructure and Become For-Profit Benefit Corporation", "content_html": "OpenAI reportedly plans to restructure its core business into a for-profit benefit corporation that won\u2019t be controlled by its nonprofit board.
\nUnder this plan, the OpenAI nonprofit will own a minority stake in the for-profit company, Reuters reported Wednesday (Sept. 25), citing unnamed sources.
\nThe plan has not been finalized and the timeline for its implementation is uncertain, according to the report.
\nAsked about the report by Reuters, an OpenAI spokesperson said: \u201cWe remain focused on building AI that benefits everyone, and we\u2019re working with our board to ensure that we\u2019re best positioned to succeed in our mission. The nonprofit is core to our mission and will continue to exist.\u201d
\nThe planned restructuring will make the company more attractive to investors, as it would operate more like a typical startup, the report said. OpenAI is also working to remove a cap on returns for investors that it currently has, according to the report.
\nIn addition, the plan would give CEO Sam Altman equity in the for-profit company, per the report.
\nOpenAI was founded in 2015 as a nonprofit AI research organization and added a for-profit entity called OpenAI LP in 2019 as a subsidiary of the nonprofit, according to the report.
\nTwo of its rivals, Anthropic and Elon Musk\u2019s xAI, are registered as benefit corporations, per the report.
\nIt has been reported in recent weeks that OpenAI is seeking $6.5 billion in funding and a valuation of $150 billion in the funding round. Earlier reports said that the funding round is being led by venture capital firm Thrive Capital; that Microsoft, which has already invested $13 billion in OpenAI since 2019, is expected to participate; and that Apple and Nvidia are in talks to invest in the company as well.
\nOn Sept. 15, it was reported that OpenAI\u2019s $150 billion valuation will depend on whether it can change its corporate structure and remove the profit cap for investors.
\nThe report said that the conditions on the $6.5 billion in funding show the extent of OpenAI\u2019s evolution from a research-based nonprofit and signify the changes it\u2019s willing to make to woo investors to fund its costly efforts in the field of artificial general intelligence (AGI).
\nThe post Report: OpenAI Plans to Restructure and Become For-Profit Benefit Corporation appeared first on PYMNTS.com.
\n", "content_text": "OpenAI reportedly plans to restructure its core business into a for-profit benefit corporation that won\u2019t be controlled by its nonprofit board.\nUnder this plan, the OpenAI nonprofit will own a minority stake in the for-profit company, Reuters reported Wednesday (Sept. 25), citing unnamed sources.\nThe plan has not been finalized and the timeline for its implementation is uncertain, according to the report.\nAsked about the report by Reuters, an OpenAI spokesperson said: \u201cWe remain focused on building AI that benefits everyone, and we\u2019re working with our board to ensure that we\u2019re best positioned to succeed in our mission. The nonprofit is core to our mission and will continue to exist.\u201d\nThe planned restructuring will make the company more attractive to investors, as it would operate more like a typical startup, the report said. OpenAI is also working to remove a cap on returns for investors that it currently has, according to the report.\nIn addition, the plan would give CEO Sam Altman equity in the for-profit company, per the report.\nOpenAI was founded in 2015 as a nonprofit AI research organization and added a for-profit entity called OpenAI LP in 2019 as a subsidiary of the nonprofit, according to the report.\nTwo of its rivals, Anthropic and Elon Musk\u2019s xAI, are registered as benefit corporations, per the report.\nIt has been reported in recent weeks that OpenAI is seeking $6.5 billion in funding and a valuation of $150 billion in the funding round. Earlier reports said that the funding round is being led by venture capital firm Thrive Capital; that Microsoft, which has already invested $13 billion in OpenAI since 2019, is expected to participate; and that Apple and Nvidia are in talks to invest in the company as well.\nOn Sept. 15, it was reported that OpenAI\u2019s $150 billion valuation will depend on whether it can change its corporate structure and remove the profit cap for investors.\nThe report said that the conditions on the $6.5 billion in funding show the extent of OpenAI\u2019s evolution from a research-based nonprofit and signify the changes it\u2019s willing to make to woo investors to fund its costly efforts in the field of artificial general intelligence (AGI).\nThe post Report: OpenAI Plans to Restructure and Become For-Profit Benefit Corporation appeared first on PYMNTS.com.", "date_published": "2024-09-25T22:07:41-04:00", "date_modified": "2024-09-25T22:07:41-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/OpenAI-Sam-Altman.jpg", "tags": [ "AI", "artificial intelligence", "for-profit benefit corporation", "GenAI", "generative AI", "News", "OpenAI", "PYMNTS News", "Sam Altman", "What's Hot", "artificial intelligence" ] }, { "id": "https://www.pymnts.com/?p=2106199", "url": "https://www.pymnts.com/blockchain/2024/first-abu-dhabi-bank-completes-programmable-payments-pilot-with-jpm-coin/", "title": "First Abu Dhabi Bank Completes Programmable Payments Pilot With JPM Coin", "content_html": "First Abu Dhabi Bank (FAB) successfully completed a pilot using programmable payments with JPM Coin through Onyx by J.P. Morgan.
\nThis programmability enables payments to be triggered at specific times or events, FAB said in a Tuesday (Sept. 24) press release.
\n\u201cThis successful pilot opens up the possibility of a dynamic and automated funding and settlement solution to FAB and J.P. Morgan\u2019s mutual clients,\u201d the release said. \u201cThis solution will enable clients to benefit from Onyx\u2019s real-time and/or event-based programmable capabilities.\u201d
\nThe pilot included FAB\u2019s successful completion of time-based and threshold balance-based account funding into deposit accounts to execute a payment obligation, according to the release.
\nThis innovation can provide flexibility to clients, enable banks to build a wide range of programmable scenarios, and allow treasurers to transition from cash forecasting to dynamic or just-in-time funding, the release said.
\nThe pilot will also lay the groundwork for use cases like automated and conditional invoice payments, margin funding and settlement solutions, per the release.
\nNaveen Mallela, co-head of Onyx by J.P. Morgan, said in the release: \u201cWe are delighted to work with the FAB to extend our programmable payment offerings to multibank use cases. We believe that digital programmable ledgers will form the foundations for the finternet in the coming years.\u201d
\nOnyx by J.P. Morgan said in November 2023 that it had recently launched programmable payments through JPM Coin and that multinational conglomerate Siemens AG became one of the first companies to utilize the feature.
\nPeter Rathgeb, group treasurer of Siemens AG, said at the time that programmable payments provide the ability to leverage 24/7 blockchain-based bank accounts combined with programmability, which will enhance automation, optimize working capital utilization, and support data-driven digital business models.
\nIt was reported Sept. 11 that JPMorgan Chase aims to use its blockchain services to boost its corporate banking market share in Switzerland.
\nThe report noted that those services are already being used in Germany by companies like Siemens and that with the help of those and other offerings, the bank is working to grow its corporate banking business in Switzerland over the next three to five years.
\nThe post First Abu Dhabi Bank Completes Programmable Payments Pilot With JPM Coin appeared first on PYMNTS.com.
\n", "content_text": "First Abu Dhabi Bank (FAB) successfully completed a pilot using programmable payments with JPM Coin through Onyx by J.P. Morgan.\nThis programmability enables payments to be triggered at specific times or events, FAB said in a Tuesday (Sept. 24) press release.\n\u201cThis successful pilot opens up the possibility of a dynamic and automated funding and settlement solution to FAB and J.P. Morgan\u2019s mutual clients,\u201d the release said. \u201cThis solution will enable clients to benefit from Onyx\u2019s real-time and/or event-based programmable capabilities.\u201d\nThe pilot included FAB\u2019s successful completion of time-based and threshold balance-based account funding into deposit accounts to execute a payment obligation, according to the release.\nThis innovation can provide flexibility to clients, enable banks to build a wide range of programmable scenarios, and allow treasurers to transition from cash forecasting to dynamic or just-in-time funding, the release said.\nThe pilot will also lay the groundwork for use cases like automated and conditional invoice payments, margin funding and settlement solutions, per the release.\nNaveen Mallela, co-head of Onyx by J.P. Morgan, said in the release: \u201cWe are delighted to work with the FAB to extend our programmable payment offerings to multibank use cases. We believe that digital programmable ledgers will form the foundations for the finternet in the coming years.\u201d\nOnyx by J.P. Morgan said in November 2023 that it had recently launched programmable payments through JPM Coin and that multinational conglomerate Siemens AG became one of the first companies to utilize the feature.\nPeter Rathgeb, group treasurer of Siemens AG, said at the time that programmable payments provide the ability to leverage 24/7 blockchain-based bank accounts combined with programmability, which will enhance automation, optimize working capital utilization, and support data-driven digital business models.\nIt was reported Sept. 11 that JPMorgan Chase aims to use its blockchain services to boost its corporate banking market share in Switzerland.\nThe report noted that those services are already being used in Germany by companies like Siemens and that with the help of those and other offerings, the bank is working to grow its corporate banking business in Switzerland over the next three to five years.\nThe post First Abu Dhabi Bank Completes Programmable Payments Pilot With JPM Coin appeared first on PYMNTS.com.", "date_published": "2024-09-25T21:40:02-04:00", "date_modified": "2024-09-25T21:40:02-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/First-Abu-Dhabi-Bank.jpg", "tags": [ "Blockchain", "decentralized finance", "DeFi", "First Abu Dhabi Bank", "jpm coin", "Naveen Mallela", "News", "Onyx by J.P. Morgan", "programmable payments", "PYMNTS News", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2106179", "url": "https://www.pymnts.com/news/point-of-sale/2024/lightspeed-commerce-engages-in-discussions-of-potential-strategic-alternatives/", "title": "Lightspeed Commerce Engages in Discussions of \u2018Potential Strategic Alternatives\u2019", "content_html": "Lightspeed Commerce responded to media reports of a potential sale of the company, saying that it periodically undertakes a strategic review of its business and that it does not intend to disclose more information except as required by its regulatory obligations.
\n\u201cWhile it is the long-standing policy of Lightspeed not to comment on market rumors, the company notes the recent media reports concerning a potential transaction involving the company,\u201d Lightspeed said in a Wednesday (Sept. 25) press release.
\n\u201cLightspeed periodically undertakes, and is currently conducting, a strategic review of its business and operations with a view to realizing its full potential,\u201d the company added. \u201cIn this context, the company has engaged, and may continue to engage, in discussions relating to a range of potential strategic alternatives.\u201d
\nThe company added in the release that its board of directors is committed to acting in the best interests of Lightspeed and its stakeholders, and that the company does not plan to share more information about these matters except as required under its regulatory obligations.
\nReuters reported Wednesday that Lightspeed was working with a financial adviser to explore options, including a potential sale, and that potential buyers could include private equity firms.
\nThe report added that the talks are at an early stage and there is no guarantee there will be a deal.
\nSince Lightspeed went public about five years ago, its stock has lost more than a third of its value, according to the report. The report attributed the drop to weak consumer spending and a decline in the investor enthusiasm for FinTech stocks that was seen during the pandemic.
\nIt was reported in March that Dax Dasilva, the founder of Lightspeed who was interim CEO at the time and is now CEO, was wondering if going private would be a better option for the company.
\nThe report said that Dasilva believed the stock market was a good place for Lightspeed, but he wondered if the company could do more as a private company. He added that the firm is always open to discussions on that topic.
\nIn May, Dasilva told PYMNTS CEO Karen Webster in an interview: \u201cWe\u2019ve got profitability as an absolute priority. We\u2019ve cut costs across the company and capture operational efficiencies.\u201d
\nThe post Lightspeed Commerce Engages in Discussions of \u2018Potential Strategic Alternatives\u2019 appeared first on PYMNTS.com.
\n", "content_text": "Lightspeed Commerce responded to media reports of a potential sale of the company, saying that it periodically undertakes a strategic review of its business and that it does not intend to disclose more information except as required by its regulatory obligations.\n\u201cWhile it is the long-standing policy of Lightspeed not to comment on market rumors, the company notes the recent media reports concerning a potential transaction involving the company,\u201d Lightspeed said in a Wednesday (Sept. 25) press release.\n\u201cLightspeed periodically undertakes, and is currently conducting, a strategic review of its business and operations with a view to realizing its full potential,\u201d the company added. \u201cIn this context, the company has engaged, and may continue to engage, in discussions relating to a range of potential strategic alternatives.\u201d\nThe company added in the release that its board of directors is committed to acting in the best interests of Lightspeed and its stakeholders, and that the company does not plan to share more information about these matters except as required under its regulatory obligations.\nReuters reported Wednesday that Lightspeed was working with a financial adviser to explore options, including a potential sale, and that potential buyers could include private equity firms.\nThe report added that the talks are at an early stage and there is no guarantee there will be a deal.\nSince Lightspeed went public about five years ago, its stock has lost more than a third of its value, according to the report. The report attributed the drop to weak consumer spending and a decline in the investor enthusiasm for FinTech stocks that was seen during the pandemic.\nIt was reported in March that Dax Dasilva, the founder of Lightspeed who was interim CEO at the time and is now CEO, was wondering if going private would be a better option for the company.\nThe report said that Dasilva believed the stock market was a good place for Lightspeed, but he wondered if the company could do more as a private company. He added that the firm is always open to discussions on that topic.\nIn May, Dasilva told PYMNTS CEO Karen Webster in an interview: \u201cWe\u2019ve got profitability as an absolute priority. We\u2019ve cut costs across the company and capture operational efficiencies.\u201d\nThe post Lightspeed Commerce Engages in Discussions of \u2018Potential Strategic Alternatives\u2019 appeared first on PYMNTS.com.", "date_published": "2024-09-25T20:49:01-04:00", "date_modified": "2024-09-25T20:49:01-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/Lightspeed-Commerce.jpg", "tags": [ "acquisitions", "Dax Dasilva", "ecommerce", "Lightspeed Commerce", "News", "point of sale", "PYMNTS News", "What's Hot", "Point of Sale" ] }, { "id": "https://www.pymnts.com/?p=2106148", "url": "https://www.pymnts.com/news/digital-banking/2024/latam-draws-fintechs-seeking-to-transform-digital-banking/", "title": "LatAm Draws FinTechs Seeking to Transform Digital Banking", "content_html": "Digitally savvy, younger consumers with mobile devices in hand.
\nUnderbanked and even unbanked populations ripe for financial inclusion.
\nA regulatory environment conducive to digital innovation.
\nIt comes as no surprise, given the above statements, that Latin America would prove to be a key target for FinTechs seeking to transform financial services.
\nAmong just two recent examples:
\nEarlier this month, Mercado Pago, which operates as the FinTech unit of Mercado Libre, the eCommerce platform, applied for a banking license in Mexico.
\nThe move comes after the company said in a statement dating back to May that it would seek to become the largest digital bank in Mexico once that license was in place, coming after a period, where, as the company said, with \u201ctwo years of successful operation as an Electronic Payment Funds Institution (IFPE), which saw its user base quintuple and become one of the leading digital accounts in Mexico \u2026 our millions of users see us as their digital bank.\u201d\u00a0\u00a0
\nCurrently Mercado Pago offers Mastercard debit cards and Visa credit cards, provides daily yield rates on the available balance in the digital account, and offers personal loans and financing for SMEs.\u00a0\u00a0 The company also has made progress in digitizing cash, \u201cwith over 10,000 partner establishments for deposits and withdrawals, which is crucial in a country with high cash usage,\u201d the company said in its statement.
\nElsewhere, as PYMNTS reported last week, Nasdaq is providing its AxiomSL regulatory reporting tool to Nubank, the region\u2019s digital banking giant.
\n\u201cThe agreement extends Nasdaq\u2019s existing partnership with Nubank, which includes providing the technology that underpins the bank\u2019s treasury function \u2014 managing its fixed income and money market operations \u2014 and now the bank\u2019s regulatory reporting obligations in Colombia,\u201d according to the announcement.\u00a0 The arrangement also reflects rising demand in Latin America for third-party FinTech solutions as digital banking grows more popular, according to the release.
\nBrazil stands out here as an example of LatAm\u2019s appeal, given the fact that, as PYMNTS has reported, two-thirds of consumers own smartphones, the average sample age is 42, lower than the roughly 48 we estimated across 11 countries, and 39% are millennials, as compared to the overall average of 29%. Brazil had the highest number of activity days, at 361 (12 activities per day) as a measure of digital engagement, and 63% of consumers engage in mobile banking at least weekly.
\nIn a separate report published in June, the IDB said that overall, the FinTech ecosystem in Latin America experienced 340% growth as measured in the 2017 to 2023 time frame, with more than 3,000 FinTechs across roughly two dozen countries.
\nBrazil and Mexico and Colombia account for 57% of those companies. \u201cBrazil continues to be the country in the region with the highest number of FinTech startups, with 24% of the total. Mexico follows with 20%,\u201d wrote the IDB, adding, \u201cThe leading segments in terms of the number of platforms in the region continue to be payments and remittances, with 21% of the total companies, loans with 19%, and corporate finance management with 13%.\u201d
\nThe post LatAm Draws FinTechs Seeking to Transform Digital Banking appeared first on PYMNTS.com.
\n", "content_text": "Digitally savvy, younger consumers with mobile devices in hand.\nUnderbanked and even unbanked populations ripe for financial inclusion.\nA regulatory environment conducive to digital innovation.\nIt comes as no surprise, given the above statements, that Latin America would prove to be a key target for FinTechs seeking to transform financial services.\nAmong just two recent examples:\nEarlier this month, Mercado Pago, which operates as the FinTech unit of Mercado Libre, the eCommerce platform, applied for a banking license in Mexico.\nThe move comes after the company said in a statement dating back to May that it would seek to become the largest digital bank in Mexico once that license was in place, coming after a period, where, as the company said, with \u201ctwo years of successful operation as an Electronic Payment Funds Institution (IFPE), which saw its user base quintuple and become one of the leading digital accounts in Mexico \u2026 our millions of users see us as their digital bank.\u201d\u00a0\u00a0 \nCurrently Mercado Pago offers Mastercard debit cards and Visa credit cards, provides daily yield rates on the available balance in the digital account, and offers personal loans and financing for SMEs.\u00a0\u00a0 The company also has made progress in digitizing cash, \u201cwith over 10,000 partner establishments for deposits and withdrawals, which is crucial in a country with high cash usage,\u201d the company said in its statement.\nElsewhere, as PYMNTS reported last week, Nasdaq is providing its AxiomSL regulatory reporting tool to Nubank, the region\u2019s digital banking giant. \n\u201cThe agreement extends Nasdaq\u2019s existing partnership with Nubank, which includes providing the technology that underpins the bank\u2019s treasury function \u2014 managing its fixed income and money market operations \u2014 and now the bank\u2019s regulatory reporting obligations in Colombia,\u201d according to the announcement.\u00a0 The arrangement also reflects rising demand in Latin America for third-party FinTech solutions as digital banking grows more popular, according to the release.\nSmartphones at the Ready\nBrazil stands out here as an example of LatAm\u2019s appeal, given the fact that, as PYMNTS has reported, two-thirds of consumers own smartphones, the average sample age is 42, lower than the roughly 48 we estimated across 11 countries, and 39% are millennials, as compared to the overall average of 29%. Brazil had the highest number of activity days, at 361 (12 activities per day) as a measure of digital engagement, and 63% of consumers engage in mobile banking at least weekly.\nIn a separate report published in June, the IDB said that overall, the FinTech ecosystem in Latin America experienced 340% growth as measured in the 2017 to 2023 time frame, with more than 3,000 FinTechs across roughly two dozen countries.\nBrazil and Mexico and Colombia account for 57% of those companies. \u201cBrazil continues to be the country in the region with the highest number of FinTech startups, with 24% of the total. Mexico follows with 20%,\u201d wrote the IDB, adding, \u201cThe leading segments in terms of the number of platforms in the region continue to be payments and remittances, with 21% of the total companies, loans with 19%, and corporate finance management with 13%.\u201d\nThe post LatAm Draws FinTechs Seeking to Transform Digital Banking appeared first on PYMNTS.com.", "date_published": "2024-09-25T20:19:38-04:00", "date_modified": "2024-09-25T20:19:38-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/Latin-America-fintech-.jpg", "tags": [ "AxiomSL", "Digital Banking", "digital transformation", "FinTechs", "Latin America", "Mercado Libre", "Mercado Pago", "NASDAQ", "News", "NUBANK", "PYMNTS News" ] } ] }