Today In Payments: PayPal Reports Strong Q1 Results; Chime Stops Using Word ‘Bank’ After Regulator’s Pushback
In today’s top news, PayPal’s earnings exceeded expectations as the firm sets its eyes on building a super app, and Chime has to drop the term “bank,” per a settlement agreement with a California regulator. Plus, the Federal Reserve Board is looking to add guidelines for allowing FinTechs more access to its payment system.
It was another victory march of an earnings report for PayPal as its Q1 results went out over the wires on Wednesday (May 5). Revenue came in at $6.03 billion vs. $5.90 billion predicted by the experts. Moreover, interest in PayPal keeps increasing, as the company added 14.5 million net new active accounts, bringing its total user base to 392 million.
Chime has been forced to ditch the use of the word “bank” in describing its services as it is not properly licensed, a court filing for a settlement agreement with the California Department of Financial Protection and Innovation stated. Instead, Chime is a FinTech working with banking partners to provide consumer-oriented banking products.
The Federal Reserve may allow FinTechs more access to its payment system. The Federal Reserve Board is asking for comments on its proposed new account access guidelines — in other words, its guidelines for granting financial institutions, particularly those working with emerging technologies, access to the payment system offered by Federal Reserve Banks.
Uber posted first-quarter earnings results showing that the pivot toward delivery seems to be firmly entrenched — but green shoots are showing for its core mobility business. Mobility hit a new high of $6.8 billion, and delivery gross bookings surged 166 percent to $12.5 billion.
The surge in pandemic-related fraud has increased consumers’ data safety concerns, with 23 million Americans now believing that fraudsters have used their identities to create false accounts. In the inaugural Digital Onboarding Tracker, Rami Thabet, vice president of digital products at Royal Bank of Canada, explains how utilizing artificial intelligence (AI) can help financial institutions (FIs) guard their digital doors and foster trust among consumers.
In the restaurant space, Chipotle is uniquely positioned to leverage its leading mobile presence, its digital marketing activations and its personalized loyalty programs to connect today’s ultra-online consumers to new experiences in context. Chief Restaurant Officer Scott Boatwright told Karen Webster in a recent interview that he looks to other companies in different verticals for inspiration.
Dogecoin, the joke coin (the one with the dog), is up thousands of percentage points year to date. Tweets and frenzies have marked the ascent, but at the end of the day, the coin’s warning signs should be heeded — and are no laughing matter.
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