In a roundup of this week’s news, Stripe makes an acquisition, PayPal announces more relationships, and the use of cards has surpassed cash usage in one more country.
Leading payment facilitator Stripe announced that it is acquiring Payable to help make tax reporting easier for platforms and marketplaces, who often must generate tax forms for many vendors in multiple countries. In a blog post, Stripe said that it had partnered with Payable in 2015 and the company’s tax support is already integrated into Stripe Connect.
“Now, as part of Stripe, the Payable team will continue to improve Stripe Connect’s tax support to better serve global platforms and marketplaces,” the company said.
In a segment on “Bloomberg Markets: Asia,” Bloomberg View’s Adam Minter discussed why QR codes are beating Apple Pay. He explained why consumers are embracing relatively old technology, particularly in China. He also pointed out the weaknesses of using QR codes for payments and shared what EMVCo’s recent release of a QR code specification means to the developing world.
In the latest in a string of partnership announcements, PayPal said it is joining forces with Bank of America, in part to make linking B of A cards with the PayPal wallet simpler.
PayPal had already announced relationships with both Citi and Chase this week. Both of those relationship expansions involve the use of rewards points to pay for purchases at merchants that accept PayPal.
“We will continue to forge new collaborations with players across the industry that share our values of making digital payments and the management and movement of money more seamless and secure,” PayPal CEO Dan Schulman said in a blog post.
Ride-hailing app Grab’s president Ming Maa addressed the company’s aspirations to disrupt the financial services industry in a recent presentation at a private equity conference in Singapore, according to an article in The Straits Times.
He told the audience that Singapore will soon become the company’s largest cashless payments market and shared the reason he thinks GrabPay, the company’s digital payments platform, is competitive against other technologies such as Apple Pay.
“There’s no driving need for these services. What we found is, in developing markets like China and India, transportation and ride-sharing have always been one of the largest reasons for mobile payments because of how frequent that engagement is,” the article quotes him as saying.
“The more you drive engagement, the more frequent the behavior, the more you convert the consumer from (using) cash.”
2Checkout, a payments technology provider and payment facilitator, has announced that it is supporting WeChat Pay. Enabling this payment method will help its customers who want to sell into the Asia-Pacific region. Together with its existing support for Alipay and other local payment methods, this new addition covers 95% of digital payments in China-speaking markets, the company said.
According to a survey from the Reserve Bank of Australia, cards (credit and debit combined) have overtaken cash as the most commonly used payment method in that country for the first time. The percentage of payments made by some other electronic means (including PayPal or via online banking, for example) did not change significantly from the previous survey. The bank conducts its Consumer Payments Survey every three years.