And By ‘Coins,’ We Mean Money Transfers on Messenger
Facebook Messenger just thought of a new way to remind you when you owe someone money. According to the The Verge, the social network is testing out what we’re calling a new ‘pay back feature.’
Here’s how it works: Let’s say you’re chatting with your friend about a recent night out. During the convo, someone drops words like ‘IOU’ or ‘ you owe me.’ Facebook’s feature with the help of chat assist and machine learning will pick up on those words or similar phrases. The feature will then prompt you or your friend to make a payment right then and there. While the feature does this automatically, it’s up to each party to decide whether they want to settle their debts right there on Messenger or keep their ‘IOU’ status a bit longer.
Just another sign that Facebook’s trying to get deep into the payments game. The company didn’t stop there. It’s also introduced group chat polling to help planning nights out with friends a bit easier. Turn all the way up tonight or do something more chill and low-key? That could be the question.
U.S. Facebook users are in luck because both features are only available Stateside – for now.
What do you think? Good move by FB or completely unnecessary? Tell us what you think in the comments or take our poll!
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THE SKINNY
When You Can’t Beat ‘Em …
Join ‘em. Wells Fargo, JP Morgan, Bank of America, and US Bank are all jumping on the instant cash bandwagon.
When You Don’t Really Have A Choice …
Their hands have been forced. In the U.S., moving money between bank accounts is slow AF. Mobile services like PayPal’s Venmo and Square Cash handled the issue…Customers love it … Now U.S. banks don’t want to get left behind.
When Your Age is Showing …
Banks have tried to pull an Instagram by offering their very own money transfer apps. Think Chase QuickPay. But, it isn’t quite the same ‘copy and paste’ job Instagram just pulled on Snapchat (read more on that later this week in our Internet & Tech edition). They want customers to believe that their apps are just as ‘hip and cool’ as the Venmos of the world with the help of star-power ads. But, some people aren’t buying it.
When You’re Not Leading From Behind…
The U.S. is playing ‘follow the leader’ with the rest of the world when it comes to faster payments. Note to self: The U.S. is doing the following. So, the Federal Reserve Board’s ‘Faster Payments Committee’ is telling banks to ‘pick up the pace’ on money transfers.
When You Need to Make A Move …
Meanwhile everyone and their moms in the financial ecosystem (including financial OGs like Mastercard and Visa) are in an arms race to build the “payments network of the future.” Mastercard snatched up a huge chunk of Vocalink, a UK biz with a mobile and internet payment network, and Visa’s strategically linked up with Paypal.
When You’re Just Happy to be Here …
Since people are still using the cash money and writing checks, there’s lots of opportunity to get in on the instant payments action. It won’t be easy for banks to catch up with Venmo and other peer-to-peer apps that are hybrid payment and social platforms. But, at least U.S. banks are making moves.
The U.S. is still trying to get consumers to dip their credit cards rather than swipe them. Turns out chip and pin cards aka EMV cards aka cards that keep us waiting at checkout for life are way more secure and help cut back on fraud. That’s great and all, but we hear that making just two purchases daily for a year with an EMV card adds up. It’s literally 85 minutes of our lives that we’ll never get back just waiting to check out. No bueno! Even retailers want to avoid installing EMV card readers because long lines aren’t good for biz. Only 28% of all U.S. merchants require dips v. swipes. Shopping at places that take Apple, Android, or Samsung Pay may be a better, faster option. Meanwhile, some of us will continue to struggle with the process.
Banks in Africa are are like that ex who took you for granted but now wants to make things right. Sure, they did the basics like setting up infrastructure but didn’t go the extra mile to take care of everyone’s needs. Banks on the continent dropped the ball on figuring out mobile money services and left potential bankers out of the loop. Now that fintech startups have stepped in to offer way better services that can help way more people, the banks are seeing the error of their ways. To right their wrongs, banks are teaming up with startups like MFS Africa and Nomanini to reach untraditional young consumers.
THE STREETS ARE TALKIN’
Hong-Kong based Bitcoin exchange Bitfinex told us its system had been compromised. Like thieves in the night, hackers allegedly made off with a cool US $65 million in real money. The exchange is looking into the breach. In the meantime, Bitcoin’s value dropped by 7.8 percent earlier this week.
China’s got a trust problem with its charity organizations. Alibaba’s CEO Jack Ma wants to use blockchain technology to make sure charities are using donations for the right purposes. Alibaba’s Ant Financial is leading the effort on this. Transparency FTW …
The charity world is pretty old school when it comes to donations. It’s all about those cash money donations. But, you can only give what you have. So, if people are short on dolla bills, charities are SOL. DipJar wants to change that up by allowing people to donate with credit or debit cards for “impulsive, on-the-spot giving.”
While Alibaba’s trying to figure out this blockchain situation, IBM seems to be way ahead of them. The tech company is all set to kick off the first major implementation of the technology for its business. IBM’s figured out how to use the technology to settle financial disputes between partners and customers. #NBD
One last thing on the checkout process, Venmo’s no longer for just easily reimbursing your friends. It’s branching out into checkout services for retail apps. Buying things you probably don’t need just got easier…
Good to Know: “ We are actively exploring these issues and their implications.” – U.S. Securities and Exchange Chairwoman Mary Jo White putting everyone on notice that she gets that blockchain tech is en fuego and her agency’s got its regulatory eye out.
THE SKINNY
When You’re Not About Empty Threats …
Payments company PayPal had plans to set up shop (costing US $3.6 million) in North Carolina (NC). But, not anymore. It’s put the kibosh on that.
The company’s CEO Dan Schulman joined a letter with over 80 other tech execs. The letter listed all the reasons why the then-bill was not a good look. The execs even warned that quality professionals would peace out of the state.
When You’re Back On the Market …
NC ignored the letter, passed the bill anyway, and now PayPal (and other projects) are back on the market and are looking for alternative locations. NC, say goodbye to what would have been 400 new jobs and US $3.6 million, at the very least…
WHAT ELSE IS GOING ON?
Still DEL(ly) From The Block …
The U.S. state of Delaware is a fan of the blockchain. State governor Jack Markell just let the cat out the bag on what the state is calling “the Delaware Blockchain Initiative.” It’s the state’s way of saying to businesses incorporated there that they need to get up-close and personal with distributed ledgers and smart contract technologies. Kind of a big deal. BTW, if you want to hear more details on this from Markell, catch him giving the keynote at this year’s Consensus 2016 conference, which will be held from May 2- May 4, 2016 in the concrete jungle where dreams are made of…
QUICK POLL – RUN THOSE NUMBERS …
Check out all the fintech startups for all your banking needs …
THE STREETS ARE TALKIN’
When money goes social … PayPal-owned Venmo is now a thing with young people. And, it’s not all about the money. They just want to know what their friends are getting into on the app.
Owe your co-workers some coins? With the help of startup Current, workplace messaging app Slack will soon offer money transfer services to help you settle your office debt.
The British government just gave the go ahead to Boston-based startup Circle. In other words, for the first time, the government has given an electronic money license to a virtual currency company. London … Building its Innovation Hub one fintech startup at a time.
Speaking of building empires … Amazon is looking to make some fintech-related purchases.
Good to Know: We all know what it’s like to have the case of the Mondays but turns out that people actually hate Thursdays more according to posts on the Whisper app.
Park took the app and allegedly posted a message threatening black students and faculty at the University of Missouri (Mizzou), the sister campus to Missouri University of Science and Technology. The actual words used were “I’m going to shoot any black people tomorrow, so be ready.”Umm… terrifying … Black students fled campus before police arrested Park on suspicion of making terrorist threats.
Posters Beware …
College kids are very into Yik Yak, but most of them probably didn’t read the fine print. The app says it can hand over users’ information (e.g. Internet protocol address, GPS coordinates, date and time of message, etc.) to police if there’s a subpoena, court order, or search warrant involved. But, all that paper work isn’t needed in the event of an emergency like death threats.
Not the First Time …
Park’s threats along with some others surfaced on Yik Yak after Mizzou’s President and another senior university official were forced to step down. Their departure came after weeks of protests calling out the university’s handling of students’ concerns over racial incidents on campus. The app has a history of users’ posting these types of messages. In recent weeks, a few arrests have been made on college campuses across the U.S. for similar threats by other students. Yik Yak founder Brooks Buffington says the app is not meant for this type of behavior.
WHAT ELSE IS GOING ON?
Paying Your Fair Share …
AirBnB was fired up when it scored its major “W” by shutting down San Francisco’s Proposition F, which would have been bad news bears for short-term rentals. But now, the home-sharing service is taking things down a notch. This week, the company’s out with what it’s calling the “AirBnB Community Compact” to mend relations with local governments. AirBnB is willing to pay taxes, share unidentified data on its hosts and guests, and banning illegal hotels for participating on the platform.
When Someone Tries To Put You in a Box …
“Don’t do it,” says Chinese Internet company Alibaba. The company thinks it can do better and is looking to expand its empire. Alibaba is getting into U.S. territory by throwing money at high-tech U.S. startups. The company also wants to export goods from U.S. small and medium-sized businesses over to China. Btw, the company’s setting the record straight … It’s no e-commerce company. Instead, it wants to help other businesses compete with the Amazons of the world.
We Still Need Confirmation …
The U.S. and EU are working hard to figure out a deal that will allow American companies to transfer Europeans’ data back to the States. The EU may have some new stipulations. EU Justice Commissioner Vera Jourova says it may want American companies to turn over reports detailing just how many times U.S. intelligence agencies are reaching out to them and inquiring about EU residents. You know, just to double-check that things aren’t getting out of hand.
THE STREETS ARE TALKIN’
Social media company Facebook’s out with its new “breaking news” feature called Notify. You get your pick of what type of news you want to see from over 70 publishers.
Apple wants you to be able to make instant payments to your friends. It’s rumored to be working with banks to figure out a mobile peer-to-peer payment service.
Ride hailing app Uber wanted to get Nokia Maps in its corner to improve its navigation service, but things didn’t work out. Uber has moved onto navigation company TomTom and worked out partnership deal.
Online music streaming service Spotify’s trying to get you to the next big show with concert recommendations curated just for you.
IAC/Interactive Corp, owner of brands like OkCupid and CollegeHumor.com, wants to add Angie’s List, reviewer of local businesses, to its collection via a merger. Angie’s List is thinking things over.
LinkedIn knows it sends way too many emails and is working on a tool to fix that. Internally, the tool is known as Air Traffic Controller.
