Today In Payments: Amazon To Replace Co-Branded JPMorgan Card; SEC Commissioner Says Crypto Rules Could Backfire
In today’s top news, financial institutions are bidding to replace J.P. Morgan on Amazon’s co-branded credit card, and one of the SEC’s senior officials warned that stricter crypto regulations could stymie the market. Plus, ex-Google exec Derek White is taking over as CEO of Galileo.
American Express Co. and Synchrony Financial are among the banks bidding for Amazon’s credit card business, which has been handled by J.P. Morgan Chase since 2002. People spend more than $50 billion a year on the card, which has an estimated $15 billion in loans.
U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce is sounding the alarm that rigid rules surrounding cryptocurrency could backfire by discouraging potential investors, countering her colleagues’ support of instituting stricter mandates and control over the $1.5 trillion market.
A veteran Google executive, Derek White, has been hired for the top spot at payments processor Galileo Financial Technologies. At Google, White was responsible for partnering with banks, insurance companies, FinTechs and others as part of transitioning to digital-first operations.
Credit Sesame has raised $51 million in growth capital and has acquired Zingo, a FinTech software firm, to add rent reporting services to its financial wellness platform. The platform also announced that it has seen its premium subscriptions grow by 200 percent annually.
Digital security trumps all other concerns when consumers transact with small merchants for the first time — so much so that 84 percent want them to do whatever it takes to keep their data safe. In the Digital Security Playbook: Building Trust And Loyalty Online, PYMNTS examines how small retailers can benefit from stricter authentication measures even if they mean a tiny bit more friction at checkout.
Banks have long taken their small and medium-sized business (SMB) relationships for granted, Pollinate Founder and CEO Al Lukies told Karen Webster in a recent Fireside Chat, and ignored the importance of key activities like merchant acquiring. It’s a mistake they can correct using new tech and business models — or risk losing them as customers to the FinTechs that will.
Bitcoin, the marquee name in crypto, may test the all-important $30,000 threshold. The (fundamental) headlines are decidedly mixed, which may point to caution for holders and speculators, at least over the near term.