This Week in Payments for February 18th, 2021 w/ host, Tedd Huff

This Week in Payments for February 18th, 2021. With host, https://www.linkedin.com/feed/# (Tedd Huff) brings you the latest in Payments and FinTech news and insights from industry insiders.
‘LIVE’ every single Thursday, 5:00 PM Pacific time on the Clubhouse app.
In The NewsTwitter could soon allow payments to your favorite accounts, maybe Bitcoin.
Marqeta to join DoorDash as a Public company after launching a credit product and garnering a valuation exceeding ten billion dollars ($10B USD)
Amazon acquires Australian company Selz to compete with Canada’s Shopify 
PeerStreet launches new fund for underserved communities (story provided by Bo Brustkern CEO of LendIt)
UK Fintech Mollie easing the pains of Brexit with partnerships with Klarna, Magento and others
Federal Reserve’s releases analysis that shows needed funding for all small businesses serves under 50%
Tedd Talks Payments partners with http://wwwmyppp.loan (wwwmyppp.loan) & Blue acorn to provide automated PPP loan approval process.
Virginia-based Blue Ridge Bank with BluePoint ATM Solutions and Bitcoin ATM software provider LibertyX to facilitate access to the cryptocurrency.
Japanese Internet Giant GMO to Issue First JPY-Pegged Stablecoin (story Provided by Ichiro Minamikawa Director of Japan for emerchantpay. )
Spence Labs launches a new white-label service; a “seed to sale” business-to-business (B2B) payment platform; and Enjoy Now, Pay Later™, a point-of-sale financing solution for consumers.
This episode is sponsored by Co+Hoots co-working located in the heart of central Phoenix founded in 2010 is Phoenix's first coworking space. It has been ranked number one in coworking spaces in the United States by Inc magazine and number nine in the world. If you need an office for a day, a meeting room and event space, or even a more consistent workspace to be more productive, Head over to cahoots.com for more or feel free to email them [email protected] .
⁣Have a news story?text 919-789-1749 ⁣
email [email protected]

Transcript: [00:00:00] Tedd Huff: [00:00:00] You are now listening to Tedd Talks Payments. Bringing you, the people tech and companies, that change how you pay, and get paid.
[00:00:11] This episode is sponsored by Co+Hoots co-working located in the heart of central Phoenix founded in 2010 is Phoenix's first coworking space. It has been ranked number one in coworking spaces in the United States by Inc magazine and number nine in the world. If you need an office for a day, a meeting room and event space, or even a more consistent workspace to be more productive, Head over to cahoots.com for more or feel free to email them [email protected].
[00:00:41] Welcome to this week and payments for February 18th, 2021. I'm your host, Tedd Huff.
[00:00:47]Our top story for this week is Twitter. Deciding they're going to get into the game and allow you to make payments off of your favorite accounts. Now. Twitter CEO, Jack Dorsey revealed that they are exploring different ways of letting users receive digital payments from their followers.
[00:01:05] In addition, they should be implementing it , and signal yet another digital platform to provide financial incentives for its users. Now, my question is. How many people think that they're going to be leveraging Bitcoin or other cryptocurrencies in there. Justin thoughts.
[00:01:24] Justin Novak: [00:01:24] Hey, Tedd. I think it's natural that Jack would opt to using Bitcoin considering what a cipherpunk is and Bitcoin proponent my 2 cents for what it's worth Thank you
[00:01:35]Tedd Huff: [00:01:35] I appreciate that Justin Thank you for bringing that up.
[00:01:38] IPO's had been on fire this year. The latest one that caught my attention was Marqeta. They raised $150 million last may, and her poise for a $10 billion IPO. Just after launching a credit product as they wait for the SEC approval with Goldman Sachs. Now, keep in mind Marqeta's. Largest...

This Week in Payments for February 18th, 2021. With host, Tedd Huff brings you the latest in Payments and FinTech news and insights from industry insiders.

‘LIVE’ every single Thursday, 5:00 PM Pacific time on the Clubhouse app.

In The NewsTwitter could soon allow payments to your favorite accounts, maybe Bitcoin.Marqeta to join DoorDash as a Public company after launching a credit product and garnering a valuation exceeding ten billion dollars ($10B USD)Amazon acquires Australian company Selz to compete with Canada’s Shopify PeerStreet launches new fund for underserved communities (story provided by Bo Brustkern CEO of LendIt)UK Fintech Mollie easing the pains of Brexit with partnerships with Klarna, Magento and othersFederal Reserve’s releases analysis that shows needed funding for all small businesses serves under 50%Tedd Talks Payments partners with wwwmyppp.loan & Blue acorn to provide automated PPP loan approval process.Virginia-based Blue Ridge Bank with BluePoint ATM Solutions and Bitcoin ATM software provider LibertyX to facilitate access to the cryptocurrency.Japanese Internet Giant GMO to Issue First JPY-Pegged Stablecoin (story Provided by Ichiro Minamikawa Director of Japan for emerchantpay. )Spence Labs launches a new white-label service; a “seed to sale” business-to-business (B2B) payment platform; and Enjoy Now, Pay Later™, a point-of-sale financing solution for consumers.

This episode is sponsored by Co+Hoots co-working located in the heart of central Phoenix founded in 2010 is Phoenix's first coworking space. It has been ranked number one in coworking spaces in the United States by Inc magazine and number nine in the world. If you need an office for a day, a meeting room and event space, or even a more consistent workspace to be more productive, Head over to cahoots.com for more or feel free to email them [email protected] .

⁣Have a news story?

text 919-789-1749 ⁣

email [email protected]

Transcript:

[00:00:00] Tedd Huff: [00:00:00] You are now listening to Tedd Talks Payments. Bringing you, the people tech and companies, that change how you pay, and get paid.

[00:00:11] This episode is sponsored by Co+Hoots co-working located in the heart of central Phoenix founded in 2010 is Phoenix's first coworking space. It has been ranked number one in coworking spaces in the United States by Inc magazine and number nine in the world. If you need an office for a day, a meeting room and event space, or even a more consistent workspace to be more productive, Head over to cahoots.com for more or feel free to email them [email protected].

[00:00:41] Welcome to this week and payments for February 18th, 2021. I'm your host, Tedd Huff.

[00:00:47]Our top story for this week is Twitter. Deciding they're going to get into the game and allow you to make payments off of your favorite accounts. Now. Twitter CEO, Jack Dorsey revealed that they are exploring different ways of letting users receive digital payments from their followers.

[00:01:05] In addition, they should be implementing it , and signal yet another digital platform to provide financial incentives for its users. Now, my question is. How many people think that they're going to be leveraging Bitcoin or other cryptocurrencies in there. Justin thoughts.

[00:01:24] Justin Novak: [00:01:24] Hey, Tedd. I think it's natural that Jack would opt to using Bitcoin considering what a cipherpunk is and Bitcoin proponent my 2 cents for what it's worth Thank you

[00:01:35]Tedd Huff: [00:01:35] I appreciate that Justin Thank you for bringing that up.

[00:01:38] IPO's had been on fire this year. The latest one that caught my attention was Marqeta. They raised $150 million last may, and her poise for a $10 billion IPO. Just after launching a credit product as they wait for the SEC approval with Goldman Sachs. Now, keep in mind Marqeta's. Largest customer's door dash went public in December. And since that stock has doubled in value. 

[00:02:04]Crystal you're with Marqeta. I'd love to get your feedback and input on this

[00:02:09] Crystal Aurelia: [00:02:09] Yeah so this is the perfect topic for me so I've been with Marketa for about three years I've worked on the product that they're actually just announced on the credit card processing I've worked on this that project from the start of when we started about two and a half years ago but yeah there's really exciting music that we can expand a lot to a lot larger players like chase in the credit card industry rather than just purely digital banking and debit cards. We're really excited that's going to actually become our next huge mover rather than the debit card processing that we're doing with door dash, affirm and square

[00:02:51] Tedd Huff: [00:02:51] Out of all those things What is biggest piece that has you most excited being on the team Seeing it come to fruition

[00:02:59] Crystal Aurelia: [00:02:59] Yeah I'm super excited actually about credit in general.  Think about all the traditional credit card offerings that we do get in the mail that we use at our banks But now being able to offer that to start up companies that don't have traditional access will take a long time to integrate with these banks and being able to help them and offer that Credit lane two and loans and personal loans to other and other people especially within this economy currently

[00:03:27]Tedd Huff: [00:03:27] I truly appreciate your input on this And I would love to schedule some more time to go in more depth in what Marquetta is working on these days and help out a lot of the other folks understand how it can be leveraged

[00:03:41] Crystal Aurelia: [00:03:41] Yeah sure be happy to do that and love to talk with you more

[00:03:45] Tedd Huff: [00:03:45] fantastic Thanks crystal Justin

[00:03:47] Justin Novak: [00:03:47] Hey I just have a quick question for crystal is I'm not too familiar with Marketa but are they underwriting Are they balance shooting those loans Or are they partnering with Neo bank or an existing traditional bank for those lending products

[00:04:01]Crystal Aurelia: [00:04:01] So we're not actually the banks  we're the decisioning process after the the card is processed so it's like the loan is approved and then we give send them the line of credit using Marketa

[00:04:13]Justin Novak: [00:04:13] Gotcha Thank you crystal Ted Thanks for bringing me up again

[00:04:16]Tedd Huff: [00:04:16] no worries Justin ,Sai what do you have for us today

[00:04:20]Sai Narayanan: [00:04:20] Hey guys I think this is another maybe comment and also a question if crystal would like to talk about it is I think just this week this past week there was an article that came out at Stripe which is another major card issuing company is now having a valuation of over a hundred billion dollars and they're raising their final round They're not final they're out of funding Based on a hundred billion dollar valuation So I'm curious to see or hear from you crystal or anyone else in this room what do you guys think about Stripe's opportunity in this space or like there insight into like when how much sooner they're probably gonna IPO at this point And also I'm curious to understand what are the major differentiating factors between Marketa and Stripe

[00:05:05] Tedd Huff: [00:05:05] Sigh I think you have just hit on the big that I wanted to talk about in a separate conversation So crystal go ahead and give them a just a quick piece but you and I will definitely circle back around and give them more detail on this and maybe open up a whole session on some of these things

[00:05:21] Crystal Aurelia: [00:05:21] Yeah sure so actually so Stripe is actually an acquire processor traditionally So their main business it's actually not in competition with Marketa I think they only announced maybe in the last year or two that they're going into the issuer side of processing and that gonna take some time getting past the regulations getting all the contracts and you have to have a specific piece of hardware in your data centers to work with the traditional processors like visa MasterCard and that all will take some time to get into place. we don't see them as taking too much of our business at this point

[00:05:58] Tedd Huff: [00:05:58] Crystal Thanks for hopping in on that one 

[00:06:01] So the next item I have on my list is Amazon has increased their focus on their third party sellers Yet again with acquiring Selz it's a seven-year-old Australian company whose product competes with Canada Shopify who's Quarter three earnings for 2020 blasted through the stratosphere to $767 million in profit And I think Amazon saw that number kick up really high and saw how big Shopify picked up that market and are looking to leverage that with their FBA type accounts that are in house to really help extend that beyond just where they're at today continuing to bring more and more things in house that bring them further down into the the sales cycle

[00:06:50]Crystal Aurelia: [00:06:50] I think it makes sense for them because they're becoming someone instead of scaling horizontally and offering a bunch of different product lines they're starting to integrate very radically and being able to own that whole chain is actually a benefit for them So that's my take on it

[00:07:07] Tedd Huff: [00:07:07] Totally agree with that I'm going to move on to the next item

[00:07:10] U K FinTech Mollie they have really started to figure out what the whole Brexit they're leveraging partnerships with Klarna, Magento all these EU gateways and UK merchants to really help them compete in the Eurozone with all of the tariff things that are going on They're leveraging those partners to allow the UK based Businesses to continue to transact inside the Eurozone Now that the Brexit is actually happening

[00:07:37] we had Bo Brustkern CEO of Lendit sent me an article

[00:07:43] Peers street launched a brand new fund that is set up for underserved communities and they're really designed to evolve neighborhoods through an uplift fund and it accepts candidates receiving mentorship from peer Street's network of real estate experts that will receive a bunch of capital from a charitable giving Vehicle hosted by the "Tides Foundation" And that peer street platform has about $4 billion on it .So it looks like it's going to really help out a lot of the underserved communities at the same time providing mentorship in the real estate space and really helping making those things happen

[00:08:21] The next piece that came up that I thought was interesting is there's a new way of using buy now pay later and it is targeting into the cannabis industry.

[00:08:31]Spence digital has a payment platforms Specifically for the cannabis industry And they have started the industries very first point of sale financing option for consumers. They are deeming it "Enjoy now pay later" so that the consumers can go ahead and get the product that they want when it's available versus when they have the funds to pay for it and spreading that over multiple payments. So I think that is quite interesting for myself that industry Continues to grow We continue to have more and more States legalize it for recreational It looks as if you're really soon that it's going to be decriminalized at the federal level And if I had to pull out my little crystal ball I really have this feeling based upon all the folks that I've talked to that are in this area and really looking at the legislation around this that we're probably gonna see it legalized for the United States By the end of the 2021 

[00:09:26] Crystal Aurelia: [00:09:26] I don't have any input on the cannabis but I do have input on by now Kayla later I would love to see your perspective on buy now pay later And that may help us understand why it's become something that's jumping into the cannabis arena

[00:09:40]Yeah so I really think that buy now pay later is probably gonna actually be more of a way of life instead of extending a credit card and then having buying groceries paying rent things that are going to be essential to lifestyles and your life  kind of have a lower interest rate than something that you buy maybe like a game from target I think it's almost going to be beneficial for the consumers and also the banks that are extending those lens cannabis is something maybe that is essential to somebody and it's for their wellbeing And therefore it's something that is a need versus a want which is why I can see that buy now pay later will work really well for that

[00:10:22]Tedd Huff: [00:10:22] thank you Zurich I would love to to hear your question

[00:10:26] Zarik Khan: [00:10:26] I wanted to hear your guys' thoughts on like privacy legislation and how it's potentially going to impact the FinTech space Cause I think like Susan Dell Ben from Washington she's typically known for raising this privacy legislation at the congressional level like every year but it sounds like in the first couple months of 2021 the States are at least in the us they're getting in on almost a frenzy of different privacy law drafts So I think Virginia Minnesota New York North Dakota Oklahoma and Washington like they're all basically looking at the CCPA and Are pretty much following suit So I'm curious just to hear in the larger sphere of FinTech banking payments what's the crystal ball saying for privacy and how that's going to impact the business like maybe this time next year So I'm curious to hear some thoughts on that

[00:11:15]Tedd Huff: [00:11:15] when GDPR passed in Europe one of the big things I'd spoke about this on a number of panels at a few FinTech conferences    my perspective has been for a long time that the us will within the next and I said at the time within the next 10 years and I we're at about the five-year Mark right and I said at that point you're going to see a version of GDPR in the us and I think it's not going to be as aggressive but it will definitely be at the federal level it's going to be pretty standardized And then you're going to have States like California and the ones that you mentioned going to continue to tighten it down 

[00:11:53] Zarik Khan: [00:11:53] Yeah I definitely feeling just it's crazy that six different States decided to kick start the year by going and heart So it'll be interesting to see what the state of affairs looks like next year but thanks for the insight

[00:12:04]Tedd Huff: [00:12:04] I think it's going to be really hard for a lot of the folks and FinTech because we all try and Understand the end customer And if we aren't able to get the data for those end customers it's going to be really hard to deliver the products and services that the customer needs and expects if we don't have the data And so that's a big piece that we struggled with even when PCI came out a lot of retailers connected the pan to the consumer and track the consumer and their purchases and everything from that pan Now we went into tokenization And so now we have to figure out tokenization One of my friends who was at visa that announced the par The payment account record he and I were talking about that and that was just a way to help the retailers continue to track the consumer not the card itself and track them through that life cycle so that when the card number changed that par remained the same So they can understand that and be able to do better Better marketing towards those clients And I think we're going to as it tightens down you're going to see technology players jump in that really start to obligate the data but still be able to provide the anonymized data back to the marketers and the business intelligence systems So I know I went on a ramble there but this is an area that I really love is the data side of the house

[00:13:26] Zarik Khan: [00:13:26] I I appreciate the enthusiasm and passion for it because I'm maybe on a slightly different wavelength with working for a bigger tech company but I think where we're going is part of that wave where you're having this merger of tech and banking and so you were talking about smaller companies and more of the startup companies trying to just you had access to the data in the first place And so I think on the other side it'll be interesting to see for especially for tech companies that have all that data and then running up big banks and the, regulatory requirements if that's almost going to. Jumpstart some of this privacy legislation and maybe that's, what's driving some of the regulatory activity.

[00:14:04] Cause I know like in our line of work we have a lot of scrutiny from state regulators, peers as well. So could be just prepping for some of those collaborations down the road.

[00:14:15] Tedd Huff: [00:14:15] go ahead, crystal.

[00:14:16] Crystal Aurelia: [00:14:16] Yeah. Sorry. Are you talking about like PII data or are you talking about in general regulations?

[00:14:24] Zarik Khan: [00:14:24] No, like this is specific to PII Bible information. So there's, there are like, I haven't actually dug too deep in those specific regulations themselves, but like I think generally the focus is on PII.

[00:14:37] Crystal Aurelia: [00:14:37] Okay.

[00:14:38]Tedd Huff: [00:14:38] This is a nice segue into an analysis that I read from the federal reserve and they were talking. And this talks about the reason why I say this flows in well is the level of data that we're able to get to understand the individual consumer federal reserve came out and said that all small businesses demonstrate a Mark unmet and financial needs.

[00:15:01] And in 20, 20, 47 of them were able to meet their funding needs while only 50, the other half are about 53% still needed additional capital. And a lot of times that they were scared to look for additional capital. If they felt that their numbers may not be. Be continuing to increase. And one of the big questions that I had in my mind here was is did the PPP loans, the first round, did it really help a lot of those folks and the small businesses.

[00:15:36]And did that get them into that piece of it, or is this second round that is out and about right now that is targeted more towards the independent contractors to gig workers and a sole proprietors. That's still supporting some of the other corporations, but it's really targeted those smaller guys.

[00:15:53] I wonder if that's going to increase the uptake of people taking funds in, and if it's going to give them enough runway to be ready for the recovery growth.

[00:16:03]So those are the...