Credit Card Issuer Market Share: Top 25 Issuers of 2020 - CardRates.com

Credit Card Issuer Market Share: Top 25 Issuers of 2020 - CardRates.com


Credit Card Issuer Market Share: Top 25 Issuers of 2020 - CardRates.com

Posted: 01 Sep 2020 12:00 AM PDT

[unable to retrieve full-text content]Credit Card Issuer Market Share: Top 25 Issuers of 2020  CardRates.com

Subscription Business Models Lead B2B VC Funding - pymnts.com

Posted: 18 Sep 2020 05:01 AM PDT

Venture capital appears to be picking back up in the B2B technology startup community. This week saw an impressive $324 million in combined funding for a range of B2B FinTechs and other solution providers, including alternative lenders looking to support small businesses as they manage working capital instability. But it was one startup, which helps other businesses launch their own subscription service offerings, that secured the largest round of the week, perhaps reflecting the rising tide of companies looking to shift business models amid market uncertainty.

Factris

Small business working capital and factoring company Factris, based in Amsterdam, announced a $5.92 million Series A investment round led by AB Ventures, while current backers Speedinvest and Optima Investments also participated. Factris announced the new funding as it works to onboard third-party factoring companies to become partners and brokers on its platform, propelling its footprint throughout Europe. The funding, in the form of equity, will help expand the company's partnership base and strengthen its position to help businesses manage cash flow amid market volatility, Factris said in a press release.

FundingXchange

U.K. alternative lending platform FundingXchange secured $10 million in fresh investment led by Downing Ventures and Gresham House Ventures, while Hambledon Capital also participated, reports in Insider Media said. FundingXchange targets small and medium-sized businesses (SMBs) with its solution to connect firms to capital. Reports did not indicate exactly how FundingXchange will use the investment.

eFileCabinet

Operating a platform that helps organizations manage their documents, eFileCabinet recently announced $11.5 million in Series C funding led by existing backers Allegis Capital and Signal Peak Ventures. Camden Partners, Allegis Nippon Life and Oquirrh Ventures, all new investors, also participated, according to a press release. The startup, based in Utah, said it plans to focus on its next phase of growth, with plans to push deeper into particular industries including the insurance, healthcare and human resources arenas.

iugu

Led by Goldman Sachs, iugu's investment round topped $22.5 million for the Brazilian company, which offers businesses an accounts receivable (AR) and invoicing technology. Reports in Contxto noted Goldman was particularly impressed by the startup's payments platform integrated into technology that can be flexible enough to meet the unique needs of B2B vendors based on how AR departments are structured.

GoExpedi

With $25 million in Series C funding, GoExpedi, which operates a supply chain and eCommerce platform for business customers, plans to expand into new markets and accelerate its development of machine learning, robotics and data analytics technologies to help elevate users' procurement operations for the industrial and energy MRO space. Investors at Top Tier Capital partners led the round, which also saw participation from Crosslink Capital, San Jose Pension Fund, CSL Ventures, Bowery Capital, Hack VC and others.

Veem

Cross-border business payments technology startup Veem secured $31 million from Truist Ventures, the new venture capital unit of Truist Financial Corporation, recent reports noted. Veem plans to wield the investment to develop a channel partner program that will help the firm expand globally, and will also invest in its product suite and functionality.

Allica Bank

In the U.K., Allica Bank, a FinTech in the process of building a small business challenger bank, raised more than $33.6 million from existing backers, according to a press release. While an impressive feat, Allica Bank doesn't want to stop there: the firm also revealed it is seeking to raise nearly $130 million in total as it expands its product and services line for SMBs. In the meantime, existing backers at Warwick Capital Partners provided the latest injection of funds, which will also go toward potential M&A activity for bank as it seeks to acquire a non-bank small business lender.

AppDirect

Coming in at the top spot in this week's roundup is AppDirect, a B2B technology company that helps other firms launch their own subscription services. The funding, totaling $185 million, comes from global institutional investor Caisse de dépôt et placement du Québec (CDPQ) as well as existing backers in the form of equity, which will fuel the company's "new phase of expansion," AppDirect President and Co-CEO Daniel Saks said in a statement. He added that while companies accelerated their digital sales strategies as a result of the pandemic, many "need assistance integrating new technologies and processes into their operations and making the work at-scale for the long-term."

——————————

LIVE PYMNTS TV OCTOBER SERIES: POWERING THE DIGITAL SHIFT – B2B PAYMENTS 2021 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

Deep Dive: How Subscription Services Retain Customers By Hitting Pause - pymnts.com

Posted: 18 Sep 2020 05:01 AM PDT

The ongoing COVID-19 pandemic has had a plethora of effects in addition to its devastating impact on public health, including setting in motion an economic free fall. Government-mandated social distancing and stay-at-home orders have slowed in-person retail sales in many regions and mass layoffs have hindered consumers' purchasing power. Experts predict that 25,000 retail stores could shut down by the end of this year — up from 9,832 closures in 2019 — and unemployment rates hovered between 10 percent and 15 percent through June. 

Even the subscription commerce industry has not been immune to these economic ramifications. Many subscription services are digital and have not been affected by social distancing and stay-at-home orders to the same extent as brick-and-mortar retail, but they still face difficulties stemming from reduced consumer purchasing power. The following Deep Dive explores the pandemic's effects on the subscription industry as well as how subscription-based companies have introduced pause features to reduce churn and retain subscribers during the unprecedented economic downturn. 

How The Health Crisis Is Affecting Subscription Commerce 

Brick-and-mortar retail stores may be suffering from lack of business, but the subscription commerce industry's revenue remains strong thus far. A recent study found 53.3 percent of companies have not witnessed measurable impacts on their subscription rates as a result of the pandemic. It showed that 22.5 percent are experiencing accelerated subscription growth rates while 12.8 percent are saying their new subscriber rates have slowed but are still rising. Only 11.4 percent have seen more cancellations than new subscribers, resulting in falling revenues. 

Certain subscription types have seen more success than others. The same study found that news media subscriptions have been particularly fruitful, with a growth rate of 110 percent between March and May compared to the same period in 2019. Americans seem eager for news regarding the pandemic, the upcoming presidential election and other current events, and this combined with more individuals staying home means consumers are reading more news than ever and are willing to pay for it. Bloomberg Media saw an 86 percent jump in new subscriptions in March, for example, with the last week in the month providing its single biggest increase in subscribers since the publication introduced its paywall in 2018. 

Over-the-top streaming services like Netflix and Hulu as well as eLearning software and communication subscription services like Zoom or Skype — all of which can help or entertain consumers who are stuck at home — have also seen rising subscriptions rates. Social distancing and stay-at-home orders have greatly hampered travel and hospitality and sports-related subscription services while internet of things (IoT) subscriptions have seen their growth rates — but not their overall subscriber counts — slow. 

The overall subscription market is expected to continue growing at a CAGR of 68 percent through 2025, according to PYMNTS' recent Subscription Commerce Conversion Index. This does not mean subscription companies are growing complacent due to their strong market presence. Many are quite aware of their customers' economic hardships and are introducing pause features to allow them to temporarily cease their subscriptions without canceling them entirely. 

Subscriptions Hit Pause 

Subscription services continually face the issue of churn, which occurs when customer cancellations outpace new signups. This problem could become especially acute during the pandemic as economic hardships set in and individuals look to cut back on their spending. There are currently 167.1 million subscription customers for streaming, education and training, digital media or consumer retail services, of whom 27.4 million report being at least somewhat likely to cancel. This churn rate of 16.4 percent is much higher than the typical 7.7 percent rate of most consumer-facing subscription services, and though not all of these wavering customers will cancel, the number is high enough to give subscription companies pause. 

Many subscription businesses are therefore introducing subscription pause features to reduce the likelihood that customers will cancel outright and never return. Such features enable customers to temporarily stop receiving companies' goods or services in exchange for temporarily halting their payment requirements. PYMNTS estimates that up to 8.5 percent of wavering customers could be convinced to stay if they were offered the option to pause their subscriptions. No company is eager to see its revenues reduced, but suffering temporary dips would be far more palatable than losing customers entirely. 

The subscription commerce industry may be doing better than most during the pandemic, but subscription services must examine every option available to avoid precarious financial situations. Pressing pause may provide only temporary relief, but it could buy companies time until the pandemic recedes and business resumes as usual.

——————————

LIVE PYMNTS TV OCTOBER SERIES: POWERING THE DIGITAL SHIFT – B2B PAYMENTS 2021 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

Payment Rail Innovators Dive Into Real-Time - pymnts.com

Posted: 18 Sep 2020 05:01 AM PDT

It may have taken some time, but faster and real-time payments demand continues to grow in the corporate and B2B payments context.

This week's look at payment rail innovation is all about speed, both for legacy rails and new ones. SWIFT has revealed plans to develop new real-time rails, while VSoft is wielding traditional bank rails to facilitate its real-time payments capabilities.

PYMNTS breaks down all of the latest initiatives below.

SWIFT to Launch New Real-Time Rails

It was a big week for payments messaging solution provider SWIFT, which announced that it will be revamping its real-time payments strategy. The initiative aims to upgrade its platform to optimize interactions between financial institutions (FIs) for heightened transparency and payments predictability. SWIFT is expected to use an application programming interface (API) to streamline interactions between intermediaries.

"We are innovating the underlying infrastructure that financial institutions use to make transactions run even faster end-to-end, and at the same time further reducing costs for the community through industry-shared services in the areas of cyber, fraud and compliance," SWIFT CEO Javier Pérez-Tasso said in a statement, adding that SWIFT will also integrate data analytics to mitigate risk.

"Combining these elements, we are creating a broad platform with faster technology and smarter and better services that the industry can trust as a foundation for innovation towards their own end-clients," he added.

EVO Payments Wields Visa Rails for Merchants

With a focus on optimizing cash flow for merchant customers, EVO Payments has announced a new feature that enables businesses to access funds from card transactions in real time. The company is using Visa's Visa Direct solution, which wields Visa's card rails to push funds to debit cards. Merchants using a qualified debit card can schedule card receivables payouts and apply that cash toward inventory, bill pay and other requirements to continue operating and survive through the volatility.

"In today's challenging environment where businesses of all sizes have been impacted by the pandemic, it is more important than ever before that they have faster access to their funds, to help mitigate cash flow challenges and stay afloat," said Gaurav Gollerkeri, head of Visa Direct North America, in a statement.

VSoft Debuts Real-Time Platform

VSoft, a company that develops banking and payments technologies for FIs, has announced the debut of Bread, a real-time payments platform that allows merchants to accept real-time payments. The company noted that the solution can be applied across a broad range of payments use-cases, including B2B and business-to-consumer (B2C) transactions. VSoft wields its existing banking relationships to use traditional rails to move funds, yet without a middleman from one bank to another.

"The Bread platform will allow businesses to have access to their funds faster and, as a result, have the ability to pay employees quicker," the company said in its announcement, adding that Bread can be integrated into banks' existing business payments and service offerings.

BitPay Secures Wyre Integration

Cryptocurrency payment solution provider BitPay, which services both businesses and consumers, has revealed an integration with Wyre, a partnership that allows users to purchase cryptocurrency within the BitPay Wallet App. It's a mix of payment rails, seeing users able to use their debit card or Apple Pay to purchase Bitcoin and Ethereum; added cryptocurrency options will come at a later date BitPay said.

In a statement, Wyre Chief of Staff Liana Spano pointed to the value of new payment rails over legacy ones.

"Crypto has revolutionized the way we deal with payments domestically and internationally by allowing the swift mobility of funds in an otherwise slow and outdated legacy system," said Spano. "In the midst of a global pandemic, it's more important than ever to streamline global payouts to reach our partners in hard-hit communities as quickly as possible."

——————————

LIVE PYMNTS TV OCTOBER SERIES: POWERING THE DIGITAL SHIFT – B2B PAYMENTS 2021 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

Comments

Popular posts from this blog

Window for Small Businesses to Apply for PPP Funding Closes Saturday - Bay News 9

List of Easy Approval Net 30 Accounts for 2020 - Nav

This new business index offers a more accurate way to forecast recessions - MIT Sloan News