Nearly three-quarters of bills will be paid digitally by 2022 — this is how banks can stay ahead of the trillion-dollar opportunity
- Business Insider Intelligence That market is growing slowly, but it's changing fast — more than ever before, customers are moving away from paying bills via check or cash and toward paying online, either through their banks, the billers themselves, or using a third-party app.
- Thanks to rising customer familiarity with digital payments, an increase in purchasing power among younger consumers more interested in digital bill pay, and a rise in digital payment options, nearly three-quarters of bills will be paid digitally by 2022, representing a big opportunity for players across the space.
- And that's not poised to change unless banks do, since issuer bill pay is least popular among the youngest customers, who will be the most important in the coming year.
- The Bill Pay Report from Business Insider Intelligence explains the US bill pay market, identifies the major inflection points for change and what's driving it, and provides concrete strategies and recommendations for banks looking to improve their digital bill pay offerings.
The Payment Industry Ecosystem: The trend towards digital payments and key players moving markets
- As noncash payment volume accelerates, the power dynamics of the payments industry are shifting further in favor of digital and omnichannel providers, attracting a wide swath of providers to the space and forcing firms to diversify, collaborate, or consolidate in order to capitalize on a growing revenue opportunity.
- In the latest annual edition of The Payments Ecosystem Report, Business Insider Intelligence unpacks the current digital payments ecosystem, and explores how changes will impact the industry in both the short- and long-term.
- It uses forecasts, case studies, and product developments from the past year to explain how digital transformation is impacting major payment processing industry segments and evaluate the pace of change.
- Finally, it highlights five trends that should shape the payments industry in the year ahead, looking at how regulatory shifts, emerging technologies, and competition could impact the payments ecosystem.
I signed up for renters insurance through millennial-friendly Lemonade, and it felt more like ordering dinner on Seamless than protecting my home
- Neither of Lemonade's cofounders, Daniel Schreiber and Shai Wininger, were in the insurance business before starting the company, so it feels different from using something like State Farm.
- Lemonade starts you out with a set amount of money you're insured for in the categories of personal property, personal liability (if someone gets injured in your apartment and sues), loss of use (a hotel stay if your apartment becomes unlivable), and medical payments (if someone gets injured in your apartment and you contribute to their medical costs).
- I recently read an article by Business Insider's Tanza Loudenback, who pays $11.91 per month for renter's insurance through State Farm.
- That would compare almost exactly to Lemonade, if it weren't for the fact that the State Farm insurance originally started at $17.24 per plan and went down after two years.
These startups are locating in SF and Africa to win in global fintech
- To become a global fintech player, locate your company in San Francisco and Africa.
- That’s the approach of payments company Flutterwave, digital lending startup Mines, and mobile-money venture Chipper Cash—Africa-founded ventures that maintain headquarters in San Francisco and operations in Africa to tap the best of both worlds in VC, developers, clients, and the frontier of digital finance.
- Founded in 2016 by Nigerians Iyinoluwa Aboyeji and Olugbenga Agboola, Flutterwave has positioned itself as a global B2B payments solutions platform for companies in Africa to pay other companies on the continent and abroad.
- Clients can tap its APIs and work with Flutterwave developers to customize payments applications.
- The Y-Combinator backed company is headquartered in San Francisco, runs its operations center in Nigeria, and plans to add offices in South Africa and Cameroon.
- Flutterwave opened an office in Uganda in June and raised a $10 million Series A round in October.
Bill.com launches AI platform for automated payments processing
- The company today took the wraps off the Intelligent Business Payments Platform, an end-to-end financial workflow automation toolset designed to streamline payment processes for Bill.com’s more than 3 million members.
- Well, in part through an AI agent dubbed Intelligent Virtual Assistant, or IVA, that automatically tenders invoices and kicks off the approval process, expediting it by a factor of two to three compared with manual methods.
- The company says the machine learning algorithms underpinning IVA, which were trained on more than 52 million bills and invoices handled over the past year, can automatically capture data from invoices and spot human errors.
- Moreover, IVA is capable of recognizing bill approval and thresholds for payments, routing workloads, and automatically creating business rules personalized to customers and payees.
- But Bill.com founder and CEO René Lacerte expects it will still save customers thousands of hours of accurate data entry — the equivalent of over 35 business days per year, on average.
How to Get Started with Amazon Pay to Sell Goods and Services from Your Alexa Skills
- With Amazon Pay for Alexa Skills, you can sell real-world goods and services such as tickets for movies or concerts, car pick up services, food, and more.
- The Amazon Pay for Alexa Skills APIs consist of only two operations - Setup and Charge.
- The starter kit in the “No Nicks” demo skill is an example of Charge Now. Charge Later allows you to setup a BillingAgreement, which represents the buyer's payment and delivery address preferences, if available, and use this agreement to charge the customer at a later point in time via Amazon Pay backend APIs. It's the perfect match when you don't know the exact order total yet - e.g. for up-sell opportunities, pay-as-you-go scenarios or subscriptions, where a buyer will be charged in regular intervals.
- With just a few simple steps, you’re able to take payments for real-world products or services in an Alexa skill.
Baltimore’s ransomware attack, explained
- A ransomware attack means Baltimore citizens can’t pay their water bills or parking tickets.
- Thirteen bitcoins are standing between the city of Baltimore and many of the services and processes its citizens rely on after hackers seized thousands of government computers at the start of the month.
- Baltimore, like several other cities that have been hit by such attacks over the past two years, is refusing to pay up.
- Hackers targeted the city of Baltimore on May 7 using a ransomware called RobbinHood, which, as NPR explains, makes it impossible to access a server without a digital key that only the hackers have.
- Some ransomware schemes are so sophisticated that they even invest in customer service, helping victims who want to pay their ransoms navigate the complexities of obtaining bitcoins and making bitcoin payments.
JPMorgan's $500 million InstaMed buy could hint at its JV plans
- JPMorgan Chase — which is spearheading a healthcare joint venture (JV) dubbed Haven alongside fellow corporate behemoths Amazon and Berkshire Hathaway — snapped up Philadelphia-based healthcare payments tech firm InstaMed for over $500 million, per CNBC.
- While the Haven troika's stayed largely mum about its plans for Haven since its unveiling in January 2018, we know its overarching goal is to slash healthcare costs for their 1.2 million collective employees — and this latest acquisition could shed a bit more light on the JV's plans for the future.
- Here's what it means: InstaMed is disentangling the notoriously knotty healthcare payments system — and JPMorgan plans to integrate its payments expertise into the mix.
- Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to the Digital Health Briefing, plus more than 250 other expertly researched reports.
Why are Apple Pay, Starbucks’ app, and Samsung Pay so much more successful than other wallet providers?
- But that's not the case — though Business Insider Intelligence projects that US in-store mobile payments volume will quintuple in the next five years, usage is consistently lagging below expectations, with estimates for 2019 falling far below what we expected just two years ago.
- As such, despite promising factors driving gains, including the normalization of NFC technology and improved incentive programs to encourage adoption and engagement, it's important for wallet providers and groups trying to break into the space to address the problems still holding mobile wallets back.
- The Mobile Payments Report from Business Insider Intelligence addresses how in-store mobile payments volume will grow through 2021, why that's below past expectations, and what successful cases can teach other players in the space.
Alibaba, Tencent, and Line are developing a QR standard in Japan
- Alibaba, an affiliate of Ant Financial, Tencent, parent company of WeChat Pay, and Japanese messaging app Line are among a group of five Japanese and Chinese tech companies developing a unified QR code payment system in Japan, according to Nikkei.
- Here's what it means: The solution will unify the QR code standard across mobile payment services in Japan, eliminating fragmentation for merchants.
- As mobile payments proliferate in Japan, the process of accepting these solutions is getting more complicated for merchants.
- There are more than a dozen mobile payment service in Japan — and each requires its own QR code standard, meaning merchants that wish support more than one mobile payment would need to install separate readers or payment apps for each.
- The bigger picture: Offering a unified solution allows all digital payment providers to capitalize on the emerging volume opportunity in Japanese digital payments.