Stripe has invested in a U.K. mobile banking startup while Facebook brings its P2P payments to two new countries. And a U.S. banking regulator again challenges the conventional wisdom behind current regulations prohibiting non-bank entities from offering banking services.
Here’s your weekly news roundup.
PayPal enables domestic transactions in India. PayPal announced on Wednesday that it is launching its domestic payments service in India, joining the rush of digital payments companies establishing or building on their presence in the region.
The company has offered cross-border transactions in India for ten years, the company said.
“India is transitioning away from our biggest competitor – cash – and our digital platform and technology has immense scope to enable this at scale,” PayPal India’s Managing Director, Anupam Pahuja, said in a blog post.
Stripe invests in mobile banking startup. VentureBeat reports that leading e-commerce provider Stripe has joined in a $93 million funding round for U.K.-based Monzo, a banking startup focused on providing mobile services. The company is planning to use the fresh capital to hire more employees and boost its rollout of accounts, the article said. This investment is only the second time Stripe has invested in a startup, according to VentureBeat.
U.S. bank regulator supports allowing non-banks to offer financial services. Acting Comptroller of the Currency Keith Noreika has again expressed support for finding a way to allow non-bank entities to offer financial services traditionally offered by banks.
According to a report in Reuters, Noreika recently told a banking conference that U.S. regulations prohibiting other types of companies from providing banking services should be reviewed. He supports the idea because “allowing non-financial companies to run banks could strengthen the banking system by boosting competition and increasing diversity,” the article said.
Facebook expands P2P payments beyond U.S. Facebook reported that it is expanding its Messenger peer-to-peer payments service outside the U.S. for the first time, offering the service to users in the U.K. and France. Users will be able to send payments to friends within the same country, but not across borders, and the service will be rolling out in these countries over the coming weeks.
The social media giant first launched the service in the U.S. in 2015, the company said.
China-based WeChat Pay has added new features to enable payment for merchants in Hong Kong. The Hong Kong Economic Journal’s EJInsight.com reported that WeChat Pay has added a feature that enables payment through scanning QR codes, rather than having to be friends on the app to send and receive money. The company expects the feature to be accepted by 1,000 taxis by the end of the year.
Merchants can scan a customer’s payment code, or generate their own QR code that a consumer can scan to initiate payment. The service will be available beginning in December, the article said.
Uber rival Grab expands payment service to Singapore merchants. Ride-hailing company Grab has made another move to strengthen its payments business. TechCrunch has reported that Grab is rolling out its payments service to merchants, starting with street vendors, in its native Singapore. While it initially has 25 onboarded, it hopes to expand to 1,000 this year, the article said.
The company is expanding its GrabPay capability beyond its initial use as a mobile payment option for users to pay its drivers. This spring, a spokesperson told PaymentFacilitator.com that the company wanted to extend usage of its platform to reduce the region’s reliance on cash transactions.