Arvind Ronta

Learn how the recent classification of MCC 5968 to high risk is reshaping the subscription payment processing landscape for many merchants, with insights from payment expert Melanie Stout. Read more 👉 https://lttr.ai/AS379 #subscriptionmodel #subscriptioneconomy #subscriptionbusiness #subscriptionbilling #subscription #recurringrevenue #churn #involuntrychurn #negativeoption #autorenew #premium

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Big news came recently that Moov has partnered with Jack Henry to embed Visa Direct and Mastercard Send to enable push-and-pull to debit for their core banking customers. I will be onstage today with Ben Metz CTO at Jack Henry Connect to share more and what we are doing tp help SMB's! This launch is solving one of the biggest pain points for smaller banks and credit unions competing with big banks - speed of funds movement. Bank customers on a Jack Henry core can now link external debit cards for instant money movement in and out of accounts over the card networks. Moreover, we've added tools like Account Name Inquiry and Address Verification to decrease fraud, a critical concern for banks adding instant payment functionality. Some real examples: ◼️ My HELOC payment is due. Move money from my external account the same day. ◼️ My big bank frustrated me with a fee, open and fund my new small bank account same day. ◼️ I need to send my vendor money for supplies. Push to her debit card instantly. ◼️ My credit card's auto pay went through today, pull money from my external account instantly. Yes, customers can use Zelle or Remote Deposit capture to transfer funds. But, every bank offers a debit card, allowing ubiquity in real-time money movement through the existing account transfer user interface. This is a game changer because it helps those banks achieve parity with the money centers and surpass the user experience of most regional institutions. If you are at Jack Henry Connect, introduce yourself at the welcome reception! #JHConnect Press Release Here:

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The Product Roadmap edition #6: In this edition of The Product Roadmap, we jump into #fintech and talk to Jatin Bhatia, SVP at smallcase, about building a trailblazer thematic investing product in India. Key Topics of discussion: 👉 smallcase vs Mutual Funds: Both offer diversified portfolios. Smallcases provide real-time transparency and customization. They also let you invest in emerging trends, like 'electric mobility.' 👉 Simplicity as a Core Principle: Smallcase simplifies investing by offering easy access to information about the portfolio manager, performance, and more. 👉 Customer Education: Smallcase prioritizes user education. The "All Weather Investing" smallcase, for example, clearly explains its multi-asset strategy, breaking it down into equity, cash, and gold. 👉 Tickertape: Built to provide both beginner and mature investors with better data access and UX. "It's a misconception that only day traders care about data," says Jatin. 👉 Key Principles: Stick to your principles even without visible growth. Smallcase focuses on building an 'open ecosystem' with their gateway product. Read the full story here:

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Three comments on "Banking as a Service" and "Embedded Finance" more broadly. 1. There is massive upside potential. Properly done, BaaS integrates payments, credit, deposits, cash management, & earned wage access into customers' lives in valuable, elegant, seamless ways. 2. It is really hard to do BaaS properly. There are many moving parts, many stakeholders, a lot of novelty / bespoke processes, and a rapidly evolving regulatory approach to what is considered higher risk. 3. BaaS is a scale play. "Go big or go home."The economics improve with decimal places. With no footprint, no branch network, and no relationship management teams, BaaS banks can grow revenues and deposits with relatively modest relative increases in expenses. But the initial investment is substantial to get those first programs up and running: API economy, third party oversight, etc. The break even point is a fairly large number (whether deposits/loans/revenues) I was brought into Five Star Bank as it went "from zero to one" with its largest BaaS program and then several other programs and platforms. I headed the Ops, InfraTech, Product Management and Business Analyst teams. Between them, they handled much of the operational implementation, "partner success", and ongoing administration of the BaaS partners / program / platforms. It was a great experience with many excellent people. I would have loved to see the BaaS business thrive for decades. But I understand the decision, and I have only positive things to say about my former colleagues both at FSB and the many external stakeholders involved in the BaaS relationships. https://lnkd.in/emyAGbdd

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The Indian government-funded Open Network For Digital Commerce (ONDC) is a #nonprofit initiative offering a suite of APIs designed to help #ecommerce companies develop innovative digital services for both #shoppers and #businesses. The network aims to empower Indian startups and #enterprises across #grocery, #fooddelivery, and #logistics sectors, positioning them to compete with giants like Amazon and Flipkart. ONDC is also expanding into #financial services, beginning with #API for digital lending. Whether ONDC can achieve the same success as #UPI remains to be seen. https://lnkd.in/g6Ge3K3Y #fintech #lending #google #uber #mobility #banking #credit

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"Acceptance" and "acquiring" in digital payments aren’t the same. Think of acceptance as a big umbrella covering everything, while acquiring is just one part underneath it. → Acquiring mainly deals with card transactions. When you acquire a transaction, it's like asking the bank if the person has enough money, and if they do, you take it from them. → Acceptance, on the other hand, is broader. It includes not just card transactions, but also accepting cash, checks, or even payments directly into your account. People often mix up these terms, thinking they're interchangeable. They're not. Acquiring is just a piece of the acceptance puzzle, specifically focused on card transactions. So, remember, everything you accept falls under acceptance, but acquiring is just one way to do it, specifically with cards. Did you know this difference?

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So the #NationalPaymentsVision is now out, following the Garner review of last year, and no doubt timed (delayed?) to follow last night’s Mansion House speech. My key takeaways 1/ Govt clarifying remit of #regulators to help reduce regulatory ‘congestion’ - reduce overlap, reduce burden on small firms, focus on growth. Letter on its way to Financial Conduct Authority and Payment Systems Regulator. 2/ Pay.UK to be reformed as unable to drive growth and innovation in its current form (as today change only happens if members fund it or regulators mandate it) 3/ Back to the drawing board for the future of #FasterPayments - a more “flexible”, “agile” and “pragmatic” approach is needed than the “comprehensive overhaul” proposed after seven(!) years of work on a #NewPaymentsArchitecture 4/ A “newly established Payments Vision Delivery Committee will task the Bank of England and the PSR to examine and refresh the requirements for the UK’s retail [payment] infrastructure” which must engage stakeholders and set out an approach no later than Q2 2025. It will be chaired by HM Treasury. It will be supported by a Vision Engagement Group. 5/ More push behind #OpenBanking (FCA to be sole regulator) — long term regulatory framework via upcoming Data (Use and Access) Bill — unlocking e-commerce payments “a strategic short to medium term priority”, with FCA to determine commercial model — JROC has been slow, “government supports a swift conclusion” of Open Banking #Roadmap and then JROC to be wound down. — Government to “consider whether policy changes are needed to align incentives between data users and holders and support a sustainable funding model for #API development” — Consumer #protection to be addressed in “future framework”, in the meantime supportive of dispute resolution process 6/ On #DigitalID - can kicked down the street. A statutory footing will be established under new Data bill for digital verification services without creating a mandatory Digital ID system. 7/ On #DigitalPound (retail #CBDC) - keep exploring - no decision has been taken on whether to go ahead and implement - and would require primary legislation. Together with the BoE, the government would ensure the design would “maintain financial stability, user’s privacy, and supports financial inclusion.” 8/ On #fraud - UK has put strong consumer protections in place (#APP reimbursement), PSR to review after 12 months. Focus on “upstream prevention”, “intelligence sharing” and a “cross sectoral approach” - ie not just a FS issue, tech and telcos will be dragged in further. https://lnkd.in/epEZHR9w

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A brief-yet-detailed read about the pain points in the cross-border payment industry. The partnership between global fintech giant Alipay and traditional credit card behemoth American Express addresses the pain points of #privacy, #risk, and #tokenization. It’s also a symbol of how cutting-edge technology helps overcome obstacles in front of the #digital #economy.

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This panel discusses the future of online payments. Industry leaders Sumit Arora (WorldFirst), Sami Louali (Tamara), Omar Halabieh (Amazon Payment Services), and Lari Partanen (Telr) dive into the latest trends, from digital wallets to Buy Now, Pay Later solutions. They address challenges like security and scalability while exploring how businesses can meet changing consumer expectations and drive growth. The global digital payment market will exceed $10 trillion by 2025, fueled by mobile wallets and alternative payment methods. #WORLDEFDUBAI #COMMERCITY #OnlinePayments #Fintech #DigitalEconomy

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Visa turns payments on its head. If you only read one post today, make it this one. This week has seen a flurry of announcements from the US tech giant. Lets break it down 1) Visa Flexible credential - (An interchange play) The Visa Flexible Credential will allow a single card product to toggle between payment methods, putting the power of choice in the hands of the consumer. Now people can easily set parameters or choose whether they use debit, credit, "pay-in-four" with Buy Now Pay Later or even pay using rewards points all via the same, single Visa credential. 2) Tap to everything Tap to Phone : Any device can now be a POS device Tap to Confirm: Easily authenticates identity when shopping online Tap to Add Card: Enhances security when adding card into a wallet or app Tap to P2P (person-to-person): Allows money to be sent between family and friends 3) Visa passkey service (Digital ID) Visa Payment Passkey Service enables a consumer to verify and authenticate their identity, and authorise online payments, with a quick scan of their biometrics like their face or fingerprint using authentication tools made available on their devices. When shopping online, Visa passkeys replace the need for passwords or one-time codes, enabling more streamlined and secure transactions. 4) Click to pay (Lock out ApplePay, reduce fraud, tokenise transactions, make LCR redundant, remove numbers from cards) Click to Pay eliminates this tedious process, powering a more seamless and secure checkout experience at scale. The solution enables consumers to complete online transactions within a few clicks by selecting which of their pre-enrolled Visa cards they'd like to pay with. Additionally, in many markets across Asia Pacific, Visa will partner with issuers to enable Click to Pay on new Visa cards, reducing manual entry of card details and passwords from the moment the card arrives. 5) Data tokens (Pure data play) With data tokens, Visa and participating banks can enable an experience where a merchant can request consent from the consumer to get more personalised offers as they shop. If the consumer agrees, behind-the-scenes, Visa issues a private data token to the merchant complete with AI-generated insights based on the consumer's transaction data. 6) Pay By Bank (Using Visa rails for higher value transactions) Big, chunky (payments that) tend to be larger tickets, lower velocity payments, where, yes, there’s some degree of card acceptance, but that the penetration rate is relatively low,” #payments #visa

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In 2022, Wells launched a credit card with Bilt Technologies, a fintech startup. But ...losing as much as $10 million every month..the program has also been hit by fraud. The partnership also poses money-laundering risk. Khwaja's Reflections from Board Oversight Standpoint: Wells Fargo has been making some (good) progress on the corporate governance front. Some of the forward-thinking areas include: ✅ Enhancing disclosures regarding board oversight of human capital management and risks, culture and ethics, and framework for workplace harassment and discrimination.  ✅ Technology and Innovation as one of five strategic pillars. More can be done. Here is My Take: ✅ There is a misalignment or lack of interlock between tech/innovation and risk oversight. ✅ I recommend the lead director establish a standing technology/innovation and cybersecurity committee. ✅ Make the pie bigger for value creation and don't delegate innovation/technology agendas to other committees such as audit or risk. ✅ Per proxy report, 38% of Director nominees only have technology/innovation/cybersecurity expertise while 92% have risk management expertise. Get more innovation/technology/Cybersecurity expertise. ✅ Get the right incentives aligned to take the lead in the innovation game. What do you think? *********Subscribe here to get all my 🔥 takes on the Board and C-suite effectiveness. 👉🏿 https://bit.ly/3VCkqyV ******** #CEO #KSgems #TheVentureMindset #Startup #Technology #Innovation #BoardOversight Manuj Aggarwal Nitin Gaur Christopher Hetner Ilya Strebulaev Alex Dang https://lnkd.in/euXAN-9b

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Curious about the impact of #ISO20022 on fintech? NYPAY has a great panel this Thursday on the topic- it's free register below. ISO 20022 is poised to be a game-changer for the fintech industry, bringing about several positive impacts: 1. Enhanced Interoperability: Imagine financial institutions speaking a universal language. ISO 20022 acts as that common ground, allowing seamless data exchange between different systems. This translates to faster transactions, fewer errors, and a more streamlined experience for everyone. 2. Richer Data for Innovation: ISO 20022 goes beyond basic transaction details. It allows for including richer, more structured data. This empowers fintech companies to develop innovative financial products and services with a deeper understanding of user needs. 3. Streamlined Operations and Efficiency: With standardized data formats, automation becomes easier. This translates to fewer manual processes, reduced errors, and overall cost savings for fintech companies. Regulatory compliance can also be simplified with ISO 20022's structured approach. 4. Openness to New Technologies: The beauty of ISO 20022 is its adaptability. It can accommodate new technologies and business models as they emerge, ensuring fintech companies stay ahead of the curve. 5. Level Playing Field for Fintechs: Legacy financial institutions often have complex internal systems. ISO 20022 creates a more level playing field by providing a common standard that fintech startups can easily adopt. This fosters a more competitive and innovative financial landscape. Overall, ISO 20022 is expected to be a major driver of growth and progress in the fintech industry. By enabling smoother data exchange, richer information, and streamlined operations, it paves the way for a future filled with exciting financial products and services.

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𝐌𝐨𝐝𝐞𝐫𝐧𝐢𝐳𝐢𝐧𝐠 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐌𝐞𝐭𝐡𝐨𝐝𝐬 via BAI 💳 🏦 Traditional banks now face competition from retail partnerships, tech giants, and virtually any business interacting with customers. This presents both a challenge and a golden opportunity to enhance customer loyalty through seamless digital transactions. BAI's Executive Report, "Modernizing Payment Methods," dives deep into the evolving ecosystem, offering critical insights for banks, credit unions, and fintech companies. 🗝️ Key Growth Areas: ➥ SMB Banking: From solo vendors to international artisans, small and medium-sized businesses are diverse and growing. Banks must integrate versatile payment solutions to cater to this segment. ➥ Real-Time Payments: The US is catching up with global leaders in real-time payments. With systems like FedNow and RTP (Real-Time Payments), financial institutions can offer instant, secure transactions. ACI Worldwide predicts a 31.7% CAGR in US real-time payments by 2028. 💡 Strategic Insights: ➥ FedNow vs. RTP: Both platforms are crucial to the US payments ecosystem. Mass adoption hinges on clear liability frameworks, robust fraud prevention, and consumer trust. ➥ ISO 20022 Standards: Set to go live in March 2025, these standards will drive automation and efficiency in payments, pushing banks to innovate faster. ➥ Digital Wallets: As digital wallets rise, banks must rethink brand identity and leverage targeted marketing to stay relevant. Co-branded credit cards and rewards programs will play a pivotal role. ______________ 🫱🏽‍🫲🏽 From PaaS to BaaS, the journey towards financial freedom is paved with innovative payment systems. The success of new payment rails will depend on industry-wide cooperation to establish trust and reliability akin to mature networks. Dive deeper into these trends and strategies by downloading the full report here ➡️: https://lnkd.in/g8KDezWa #fintech #payments #digitalpayments #modernization #paymentrails

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The DoJ alleges Visa monopolizes debit payments. The DoJ says that Visa, with a 60% market share, uses bulk discounts and incentives to ensure merchants route debit payments via its network in the United States. The complaint also says Visa offers incentives for potential competitors to collaborate. 🧠 What has Visa actually done wrong here? There's no question Visa has a dominant market share in the US. But $0.03 on a $0.25 fee is not "abusing" the market unfairly. 🧠 The complaint concerns Visa's commercial incentives for partners. You get bulk discounts if you do more with Visa. That's not anti-competitive, it's capitalism. You get an upside if you partner with Visa. Again, capitalism. 🧠 Visa and Mastercard are increasingly vulnerable to new rails. Pay by Bank, RTP, and international competitors like Pix, Alipay, and UPI have competing numbers of consumer users. The opening of NFC on the iPhone means every wallet could have every rail available to everyone. 🧠 Hurting Visa hurts the US payment's global competitiveness. Card networks are not the dominant form of payment in APAC, and Visa is not dominant in Europe 🧠 This move by the DoJ is myopic and US-centric. India is intentionally bringing UPI to the world, and the BRICS are trying to build a SWIFT alternative. #payments #cards

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