Bank of America Unveils Account Validation for Public Sector & Corporate Clients [2023 Update]

Bank of America –one of the leading financial institutions in the world, has launched the concept of Account Validation for assisting public sector and corporate clients in the United States of America with solutions related to fraud prevention.

The total number of attempts related to digital fraud in the United States of America has gone up by as much as 25.07 per cent during the first four months of 2021. This is in comparison to the previous four months of 2020. It is according to a report from TransUnion. In the study report, it was found that when specific industries were analyzed, the number of attacks related to digital frauds against financial service organizations has increased as much as 109 per cent in the United States of America during the same time. Across the globe, fraud attempts in the given industry were high by as much as 149 per cent.

How can Account Validation Help with Fraud Prevention?

Before the initiation of debit or electronic credit payment, a client who makes use of Account Validation will be capable of verifying the status of the account while authenticating the account owner.

With frauds on the rise, organizations will no longer be able to ensure assumptions about whether or not an entity or the person on the payment’s other end of the payment is who exactly they claim to be. David Kertz –head of Global Payments at Global Transaction Services, Bank of America, revealed that account validation along with other tools for fraud prevention is necessary for modern treasury teams.

A major component of Account Validation is its capability of responding to inquiries of the clients in real time. Organizations across the globe can make use of the existing services before ensuring payments to the respective clients with the help of ACH, real-time payments, or wire transfers. Moreover, account validation can also be helpful to the organizations in complying with the rule of NACHA WEB Debit Account Validation.

Account Validation can also be helpful in assisting the clients in the prevention of misdirected payments. These could take place when the payee will inadvertently offer access to incorrect account number. Stephanie Wolf –Head of Financial Institutions Sales & Head of Business Banking Sales at Global Transaction Services, Bank of America, further revealed that Account Validation can help organizations in preventing fraud-related payments without making any compromise on the overall speed of ensuring valid payments to contractors and vendors. Through the reduction of misdirected payments, organizations will also have a significant amount of money as well as time it will take for attempting the retrieval of misdirected payments.

Account Validation serves to be one of the latest payment innovations introduced into the market by the leading Bank of America. Some of the other payment innovations that have been introduced previously are Complete AP, VAM 2.0 or Virtual Account Management, the Executive Explorer travel card, and Intelligent Receivables. The given technology innovation is supported by EWS or Early Warning Services, LLC. It is a leading fintech company offering risk, identity, and payment solutions to the financial institutions. Early Warning Services, LLC is owned by as many as 7 financial institutions in the United States of America, along with the Bank of America.

As the scenario of global e-commerce continues growing (upward at an estimated rate of 15 per cent than the previous year), fraudsters are, therefore, seeking newer and innovative ways of striking larger targets. However, they tend to strike less often. Still, they have become increasingly alert and sophisticated when it comes to targeting high-end digital channels. As per the reports of ACI, it is estimated that mobile-based frauds have increased by around 1.22 per cent. At the same time, pick-up in store and theft while buying online have increased by over 6 per cent during the first quarter of 2021. The average value of transaction-specific frauds has only increased by around 4.7 per cent. On the other hand, the overall occurrences have dropped by around 3.2 per cent.

Bank of America

Bank of America is one of the leading financial institutions of the world that is committed to serving small, mid-sized businesses, individual consumers, and larger corporations with a comprehensive range of investing, banking, asset management, and other types of risk and financial management products as well as services. The company is known to deliver access to unparalleled convenience to its consumers and clients across the United States of America. Moreover, it is also known to serve more than 66 million small business clients and consumers.

There are around 4200 retail financial centers of the Bank of America with as many as 17,000 ATMs all around the country. The bank also offers access to award-winning digital banking services to around 41 million active users. Moreover, there are over 32 million mobile users of the products and services of the bank.

Bank of America serves to be a global leader in the fields of investment banking, corporate banking, wealth management, and trading through a wide range of asset classes. Moreover, it is also responsible for serving institutions, governments, individuals, and corporations all around the globe. With Bank of America, you can expect industry-leading support to around 3 million small businesses and households with its impressive suite of easy-to-use and innovative online products as well as services.

The company is also responsible for serving clients through its high-end operations across the United States of America. Bank of America Corporation stock has also been listed on the New York Stock Exchange. Bank of America is also regarded as the leading market name that is utilized by specific Global Markets and Global Banking businesses of Bank of America Corporation. Trading, lending, and other commercial banking activities in specific financial instruments are performed across the globe by banking affiliates of the leading bank.

PayU Token Hub Will Help Card Networks and Banks With Tokenization [2023 Update]

PayU –a leading online payment service provider, had made the announcement of launching its own tokenization solution –referred to as ‘PayU Token Hub.’ The given tokenization solution will be aimed at helping businesses to comply with the latest guidelines of RBI (Reserve Bank of India) with respect to online card data-centric storage. At the same time, the solution will also be helping issuing banks to generate the respective tokens effectively.

The solution has been designed by Wibmo and PayU. Wibmo is a full stack global-level PayTech company owned by PayU. Moreover, the service has also been designed with the help of partnerships with major card networks including MasterCard and Visa and famous issuing banks. The solution is committed to offering both issuer tokens and network tokens under a single hub.

Manas Mishra –Chief Product Officer at PayU India explains that the company welcomes the all-new guidelines by RBI. This is because the guidelines are helpful in empowering the customers while ensuring safer transactions. PayU is known to have the most innovative as well as robust solution with respect to managing easy compliance with the given set of guidelines for all players in the given ecosystem.

An Insight into PayU Token Hub

PayU Token Hub serves to be fully interoperable. It helps in offering access to the best-available networks as well as issuer tokens for user cases related to card-on-file that can be extended to device-tap-and-pay functionality. It will deliver the assurance that famous payments use cases like subscriptions, EMIs, and instant refunds. Moreover, they also help with providing engines relying on card numbers to ensure seamless transactions.

Powered with the help of Wibmo, PayU Token Hub has been developed to serve as the interoperable plug-and-pay solution. It helps in enabling card-on-file along with device tokenization with the help of just one integration point. The characteristic two-pronged service is made available for all merchants. It even includes the 3.5 lakh merchants of PayU along with 65 issuers that are supported by Wibmo.

Businesses can look forward to easily enabling PayU Token Hub with minimal technical modifications while continuing to provide the best-available payment experiences to the customers. Moreover, businesses can also ensure that the payments remain compliant with the latest guidelines.

PayU Token Hub and Wibmo

Wibmo is known to power some of the large issuer ecosystem of more than 65 banks across the country for the respective payment security and authentication services. In the given scenario, PayU Token Hub will be helping the issuers in supporting the latest tokenization guidelines in a quick and seamless fashion for complying with the latest RBI mandate. It will also help in supporting the RBI vision of the protection of the consumers’ interests. It is difficult to come across any other player in the market having such a robust combination of issuer and network tokens.

RBI has mandated that only networks and banks will be given allowance to store customer-centric card data. It is to be in effect from 1^st January 2022. This implies that businesses will no longer be able to store information related to customer cards. Storage of credit card details remains at the core of the payment experiences of the consumers. As customers are not expected to enter card detail every time they shop online, it only speeds up the online shopping process. However, now, online growth of businesses might get hampered.

While the ongoing guidelines are with respect to card data storage, PayU Token Hub aims at expanding soon enough to allow customers to safely store as well as create tokens through different payment modes including Net Banking, contactless device-based payments, and UPI.

Importance of Tokenization for Merchants and Retailers

As the digital payment ecosystem in India continues advancing in different forms of technologies –from cards to mobile banking, internet services, wallets, POS (Point of Sale), and UPIs, the concept of tokenization is becoming increasingly popular in recent times.

For the beginners, tokenization can be regarded as the replacement of traditional card details of the customers with some alternate code –referred to as a token. The token remains unique to every card. The token requestor (the entity like the merchant who is accepting customer requests for tokenization while sharing the same with the concerned card networks like Visa, MasterCard, and so more) to issue the given token.

Card networks feature customers and banks on the issuing end. Moreover, banks & payment gateways or even aggregators remain on the acquiring end. Acquiring end is known to function with retailers and merchants. In case the bank or payment gateway on the acquiring end wish to process a transaction, they will send it back to the card network. The network will then check with the bank on the issuing end for the availability of credit in the account of the customer for debiting the same. The amount is then transferred to the acquiring end. The given end-to-end transaction will only take around less than a second to implement.

In the given scenario, tokenization request is initiated by the owner of the card. The network will be then issuing the token after receiving consent from the card issuer or the bank. The RBI (Reserve Bank of India) had earlier put restrictions on tokenization to tablets and mobile phones. However, the same restrictions have been expanded to desktops, laptops, wearable IoT (Internet of Things) devices, and so more.

In September, the Reserve Bank of India had extended the overall scope of tokenization from the concept of device-based to the card credentials of the customers. It is referred to as the CoF or Card-on-File tokenization service. The central bank had also given allowance to banks or credit card issuers to provide tokenization services with proper customer consent along with AFA or Additional Factor of Authentication. Earlier, only specific card networks were given allowance.

The main reason for the given two modifications as cited by the Reserve Bank of India was the overall risk to the security of card-centric data.

How Banks Use API to Fulfill Commercial Banking, Payment Expectations?

As banks all around are making their ways into the field of digitization, the overall customer expectations are rising day by day. The given digital transformation has been accelerated due to several restrictions imposed during the COVID-19 era. Post-pandemic, study reports reveal what financial and banking institutions can do along with explaining the importance of a well-formulated digital plan.

The advent of the technology of API or Application Programming Interfaces has resulted in major changes with respect to how financial operations are being implemented. Recently, we have observed the emergence of a number of fintech innovations for simplifying the process of money movement.

What is API Banking?

API or Application Programming Interface conventionally refers to the technology interface between different software programs. The given interfacing ability helps in facilitating the use of some third-party application for synchronizing and connecting to the tools and services of the bank.

API Banking can be referred to as the specific set of protocols making the services of a bank available to third-party organizations with the help of APIs. This helps both the third-party organization and the bank augment the additional offerings and specialties significantly than they are capable of delivering to the customers individually.

Impact of APIs in the Banking Sector

For meeting the ever-rising expectations of the customers, companies all around are looking for innovative ways to deliver value-added propositions. These could include scam alerts, alerts on wearable devices, improved payment options (like digital wallets), and so more.

A number of financial and banking institutions have already started experimenting with APIs and its monetization along with the standardization of the possibilities of Open Banking APIs. A number of financial institutions are taking up the given course of action. This is because of the immense range of Fintech capabilities that are being offered for transforming the entire industry and enhancing the experience of users and bankers alike.

When financial institutions will continue adopting the revolutionary API technology, the entire industry will start observing the way in which users are handling data along with ensuring the integration of multiple services. Eventually, it will lead to efficient and cost-effective banking solutions.

As far as the banks and financial institutions are concerned, APIs open up an entirely new segment of advanced services to be made seamlessly available for the third-party entities. The concept helps both third-party companies as well as banks to enhance the overall offerings and specialties to the end customers. APIs in the banking and finance sector can allow organizations in the given industry seamlessly connect with end customers and other businesses. With APIs, a banking institution can easily look forward to transferring information at a highly convenient speed.

APIs – How is the Technology Making Banks Future-ready?

Customers in the modern era face the overall ‘ease of use’ in almost everything. The facilities that are provided to the customers by other industries have made them expect more from the finance and banking sector as well. The customers, therefore, expect the overall ease of almost every service or offering. In the finance sector, this represents the universal expectations for ensuring quick as well as simple transactions, payments with ease, and instant access to detailed financial statements.

There is no denying the role of APIs in the initiatives related to Open Banking. In the modern ecosystem of Open Banking, APIs help in providing the way for executing business. In a recent study report, it was revealed that through the acceptance and implementation of APIs, banking and financial institutions are capable of extending as well as improving the native offerings and services.

Moreover, the concept of fintech application development is on a rapid rise. As such, there is no possibility of the trend of implementing APIs in the banking sector fading away any sooner. Moreover, the overall customer demand remains in abundance for financial businesses towards offering improved services through the integration of APIs.

Meeting Customer Expectations

Modern consumers tend to be ardent tech enthusiasts. Therefore, with increasing expectations of the overall online experiences, customers also seek advanced banking products & services in a highly swift fashion.

With the concept of open APIs, financial institutions can look forward to leveraging the products as well as functionalities designed by the third parties.

Improving Customer Engagement with APIs

The concept of APIs has enabled banking institutions to meet the diverse expectations and demands of existing customers. Moreover, it also helps banks in positioning themselves as relevant to meet the banking needs of the upcoming generations. The APIs are also capable of working as a unique way towards enhancing customer engagement while addressing the unique needs in an agile, future-proof, and safe manner.

The given form of customer engagement is crucial –especially when new entrants and upstarts aim at disrupting the modern financial services. Moreover, new devices, services, and offerings continue emerging in the markets every now & then. This leads to modifying the overall customer expectations along with the generation of a highly competitive landscape for conventional banks. The presence of a competitive landscape tends to pose immense challenges for conventional banks while compelling them to innovate for retaining and drawing customers.

Traditional Banks Leveraging APIs

The traditional banking and finance sector has been quite gradual when it comes to the adoption and integration of new, revolutionary technologies. However, in the modern era, the concept of digital banking is increasingly becoming an emerging trend due to altering and enhanced customer expectations.

Through the introduction of APIs to such financial firms, conventional banking institutions can retain existing customers through the provision of innovative products & services. It also allows banks to attract prospective clients and customers through its advanced technology offering. The use of APIs is indeed an added appeal to the image of the bank. Moreover, it also allows customers to engage with in-depth financial data in lucrative ways. It also leads to improved brand loyalty –further leading to improved customer interactions and satisfaction.

American Express Introduces Debit Card, Digital Checking Account for Small Busines

American Express – the famous card issuing company for small businesses in the United States, has unveiled the fully digital form of Business Checking Account for SMBs.

The Business Checking Account by American Express will be offering small business enterprises a highly secure, low-fee, and top-yield experience of digital banking. The account is available with the APY or Annual Percentage Yield of 1.1 per cent on the overall balances that remain around $500,000. The all-new Business Checking Account is also responsible for connecting with the existing credit cards by American Express. Moreover, small businesses are also issued with a dedicated Business Debit Card.

American Express Unveils Business Checking Account and Debit Cards for Small Businesses

Business accounts that are dedicated to small businesses with the help of the all-new Business Checking Account by American Express can help business enterprises (SMBs) look into as well as operate at a highly professional level. The digitization of such accounts only takes the process one step higher as it helps in streamlining as well as simplifying the overall process of cash management.

It is also quite profitable to earn interest rates of high yield at the moment when small business organizations are still going through the struggles of the pandemic.

Full-service, Customer-First Digital Business Account

Dean Henry –Executive Vice President (Global Commercial Services) at American Express, delivered comments on the launch of the all-new and fully digital Business Checking Account for small business enterprises in the United States of America.

We have come up with the revolutionary American Express Business Checking scenario from scratch. This is because small businesses revealed that they want to obtain more out of the existing business checking account services. The all-new version of Digital Business Account by American Express features a full-service, customer-first type of business checking account for ensuring the overall ease of cash management. Moreover, the account is also responsible for processing a wide range of payment types while earning high-yield interests upon balanced of the amount $500,000. Moreover, with this business account, customers will also be capable of earning and redeeming the exclusive membership reward points.

Henry added that it can be regarded as business checking with the best services of American Express. Businesses can look forward to receiving rewards, security, and high-end services while being capable of investing back into the respective businesses.

Membership Reward Points

During the start of 2022, customers of Business Checking accounts can easily earn points of Membership Rewards. They can easily redeem the same for ensuring deposits into the account of Business Checking.

Another major benefit that can be enjoyed by small businesses can enjoy the all-new account of Business Checking while earning the welcome deposit of amount $300 in the form of welcome bonus. Account holders are not expected to pay any amount of monthly fees. Moreover, there is no requirement of any minimum balance as well.

To top it all, small businesses having access to Business Checking accounts will also be capable of getting access to the network of as much as 37,000 ATMs that remain free of fees. This service is provided as American Express entered into the partnership with MoneyPass for providing such a service. Customers will also get access to one-stop and full-feature application that features the ability to ensure mobile-based check deposits.

When businesses have access to Business Checking accounts coming with a myriad of benefits along with reliable customer support services, it serves to be a valuable asset for small businesses. This also helps in freeing up the time of small businesses from banking-specific commitments such that they can continue with running their business seamlessly.

Features of Business Checking Accounts by American Express

Both small as well as mid-sized businesses in the United States of America can easily apply for the Business Checking account facility in a matter of 10 minutes. Once your application is approved, businesses can receive access to the following set of features:

ATM Access Through MoneyPass: American Express has put forth its partnership with MoneyPass for offering access to an extensive network of as many as 37,000 ATMs that are fee-free to the customers of Business Checking accounts for balance enquiries and ATM cash withdrawals.

Welcome Bonus: New customers of Business Checking accounts will be earning as much as $300 deposit amount in the form of welcome bonus for opening the account.

No Monthly Fees: Businesses can enjoy $0 monthly maintenance fee without any requirement of maintaining a minimum balance.

Competitive APY: Businesses can leverage the benefits of APY of a high yield of 1.1 per cent on the balances of around $500,000.

Connected Membership Features: You can go through the American Express cards and the entire Business Checking account in a single place. With effect from 2022, customers of Business Checking accounts will also be earning points of Membership Rewards while redeeming the same for making deposits in to the account of Business Checking.

Support for Multiple Transaction Types: Businesses can access a full spectrum of payment options for receiving as well as transferring funds –including Bill Pay, Debit Card, Check, Wire Transfers, and ACH.

Intuitive and Simple App Functionality; You can easily manage the Business Checking accounts with the help of a one-stop, full-feature iOS application with the help of the mobile check deposit benefit.

Faster Onboarding Process: Businesses can consider applying and getting a decision within a span of 10 minutes –without the requirement of stepping foot into the physical bank branch.

Trusted Customer Service: You can get access to round-the-clock support services along with assistance from specialists of American Express –just a call or click away.

View-based Access: The account is also known to provide members on the team with reliable access for viewing the account of Business Checking. Some additional role-based features will be available from 2022.

American Express is a leading integrated payment service provider across the globe. It helps customers with reliable access to its products, experiences, and insights for enriching the overall journey.

Lemonade Launches Car Insurance Platform in Illinois

The third quarter is the earning season for most industries, but the digital insurance provider – Lemonade, is focusing more on its service expansion instead of earning announcements. It has been less than a year since Lemonade turned into a publicly-traded company. Earlier, its products included only renters and homeowners insurance, but it started expanding gradually. Today, it has become a credible digital insurance company with the latest insurance product added to its category.

Lemonade is an Israeli company, operated by Artificial Intelligence, and known for offering insurance products. The company has announced to bring car insurance for drivers in the United States. They have recently introduced the Lemonade cars in Illinois and the service will soon be available for drivers across the nation.

Operating in New York. Seven months ago, they had made an announcement of expanding its operations to the car insurance markets, a promise they fulfilled recently with a car insurance announcement on Wednesday. The news is already attracting tons of traffic, especially after they have revealed their earnings for the third quarter on 8th November.

Starting with Illinois, Lemonade allows drivers to subscribe to its cars. It has focused on eco-friendly, sustainable, low-mileage, and low-priced cars.

The Auto Insurance Product

The insurance is available at an affordable rate for low-mileage drivers, including those using hybrid and electric cars. In addition, the drivers can use the company’s official mobile app to get 24/7 roadside assistance, emergency services, and other perks. It also features a telematics app that records the distance covered and how safely people drive the car. Not only that, but this app will report the total CO2 emission produced by the car. Lemonade will plant trees to compensate for the car emission, which is one of the best eco-friendly practices by an insurance company.

The CEO of Lemonade, Shai Wininger, said that they had built a whole team for auto repairing, towing, emergency services, and roadside assistance. The goal is to provide a seamless car claim experience to their clients. America’s most popular insurance company has made the insurance filing and claim process a lot easier.

Clients can now file car insurance claims in minutes. They have also introduced peripheral auto services that cover emergency operations. Lemonade uses Blender, its digital insurance claim system, which makes it possible for the advocates to manage tons of insurance claims as fast as possible. Besides, these claims are managed with better efficiency as compared to the traditional insurance claim management approach. Blender is designed to streamline and automate the hectic manual processing, saving time on processing claims manually.

Special Rewards for those Bundling Products with Car Insurance

Lemonade has also used a promotional deal to market its new insurance products. They said that every customer who buys insurance with other Lemonade products can receive a discount on the insurance premium. In fact, it claims that people can save hundreds of dollars on insurance premiums in the long run if they bundle vehicle insurance with other products.

For those who aren’t already familiar with lemonade, this digital insurance provider covers pets, life, families, renters, and other insurance. The insurance is available for all car owners in Illinois for now, but a special reward is for the low-mileage drivers and those operating environment-friendly vehicles, such as hybrid cars. They will soon expand the services to Tennessee and the entire country.

The discount on low-mileage cars is part of the company’s commitment to avoiding fossil fuels and other products that cause excess CO2 emissions. These perks will encourage people to invest in cars that cause no harm to the environment. The CEO mentioned that the company’s objective was to introduce an insurance platform where people could file claims, make a premium payments, manage their insurance policy, explore different insurance products, and buy auto insurance digitally.

Lemonade’s Car Insurance Market

The car insurance market is expected to be a lot bigger and better in terms of revenue than the company’s entire market combined. It will be worth $300 billion. The biggest competitor of Lemonade in the car insurance industry is Root, which is another insurance provider using telematics to track the car’s emission and overall performance.

There are many reasons to believe that Lemonade’s new product will perform incredibly well in the market. For starters, the company has over 1 million customers that have subscribed to Lemonade’s insurance policies. Lemonade is using its reward program efficiently. By bundling its products, the company is inviting people to subscribe to its car insurance to save money. Considering the customer satisfaction rate, a large number of customers will gladly invest in the car insurance policy.

Now that the entire operation is executed virtually, it has proven to be an efficient model for Lemonade and American drivers. They have also decided to fund reforestation to contribute to the environment. They believe the least they can do is compensate for the CO2 emissions. Lemonade has received high customer satisfaction for its new product launch, which shows the company will capture a good market shade for its vehicle insurance. In fact, the company’s auto insurance shares also surged by 5% after the news was released to the public. Although it is a short-term gain for now, the growth is expected to continue.

In the second quarter of this year, Lemonade reported 1.2 million subscribers. Currently, Lemonade operates in the US, Netherlands, France, and Germany. But, it will soon expand on a global level.

Allbirds Makes Public Debut; Nike Links Loyalty Program With Dick’s Sporting Goods

The shares of Allbirds, the famous shoemaker, have seen a surge of 90%, as the company’s valuation has reached $4.1 billion. Allbirds is popular for its woolen sneakers, as well as, slip-on. Nike and Dick’s Sporting Goods, on the other hand, have decided to collaborate to expand Nike’s footwear and apparel collection.

Allbirds Make a Debut on NASDAQ

On 3rd November, Allbirds made a debut on Nasdaq, a footwear company that is all set to turn into a public company. They had set the rate of $15 per share for its initial public offering (late Tuesday), which was higher than the expected $12 to $14 per piece they had decided earlier. The company’s debut was successful with over 20.2 million shares sold in the initial public offering, generating approx $300 million from the sales.

They raised the price per share after selling 19.2 million shares of $12-$14 before the public offering. At the end of the day, the prices went up to $28.64 per share. Allbirds has made it to the Nasdaq Exchange. The company’s goal is to draw the attention of the investors willing to work with companies that focus on sustainability and eco-friendly offerings. They have decided to go global to promote sustainability.

Joey Zwillinger, the co-founder and co-CEO of the company mentioned that the reason why they received a high demand for the shares is the investors’ growing concern about the planet. He believed that Allbirds’ sustainability campaign gave investors a golden opportunity to contribute to the environment.

Allbirds has 27 land-based stores currently, a number they are expecting to increase by hundreds. Zwillinger added that the company’s motive is to make and sell the best and trending shoes to customers. They are hoping that the financial part will be taken care of by the investors. They have also expanded their product line recently, adding socks and other sustainable accessories (in addition to the woolen sneakers).

Dick’s Sporting Goods and Nike’s Collaboration

Dick’s shares value surged after the company announced a partnership with Nike. This collaboration will give customers access to exclusive products and a seamless shopping experience. Now, customers can buy Nike’s shoes and clothes on Dick’s official website. This partnership will turn into a long-term relationship between the two apparel and footwear stores. They have also hinted at another major advantage of this collaboration. Hopefully, customers can now drop off and pick up their Nike’s online orders at Dick’s store.

Apparently, Nike does not want to continue working with the wholesalers, as the company has decided to sell more footwear to the customers directly. Like Adidas and Under Armor, Nike has also taken this step so it can keep maximum profits, selling its products at a higher price.

The company also sees it as a way to build a healthy and long-term relationship with its customers and understand their needs. The latest financial reports of Nike show that the wholesale stores accounted for around 61% of the company’s total footwear sales in 2021, down from 65% in 2020. The figures suggest that customers are now buying Nike’s footwear either from the land-based store or Nike’s website, instead of the wholesalers. While it is relying less on wholesalers, Nike is still counting on the retailers for ramping up its sales.

How Will the Nike’s and Dick’s Partnership Work?

Nike is also Dick’s largest seller accounting for 19% of the sales for Dick Sporting Goods. This partnership will open up many opportunities for Dick’s Sporting Goods as well. They can have a wide selection of footwear, not only the sports shoes but in other categories as well. Dick’s hope to become the customers’ one-stop destination for the latest sports gear and accessories. Dick has opened a new location in Rochester, New York to provide Nike a place to showcase its products. The company is planning to organize the events for the Nike members in its new location along with a sports shop in Tennessee. The CEO said that the company would employ an additional 9,000 workers to cater to the rising demand for sports footwear.

Lauren Hobart, the CEO of Dick, said that the company’s relationship with Nike has been a successful one for years. In fact, they have been working together for more than half a century now. The goals of both companies are to deliver a seamless user experience through their extensive collection of athlete apparel and footwear. Dick’s Sporting Good Inc. reported a 4.1% surge in its shares on Wednesday. Nike’s share also jumped 1.8% higher after this announcement. The companies call it a “connected partnership”, which will not only strengthen the bond between the two athlete companies but make a vast range of athlete products available to the public.

Google to Start Requiring 2 Factor Authentication (2FA) on Accounts

Google had announced that it would enroll as many Google users to the two-factor authentication security as possible by the end of this year. They decided to make it a default program.

In October 2021, it stated that the plan was to get more than 150 million users protected by the 2FA, reminding people of Google’s security goals since it is Cybersecurity Awareness Month. Within the next two months, a vast majority of Google users will be automatically enrolled in this new security program. In fact, Android Police has got reports that suggest Google has already started working on its new security campaign and is enrolling people in the two-factor authentication service automatically.

The 2FA system was in place much before Google’s announcement of making it a default setting. Earlier, it was a choice. People were allowed to sign up for 2FA, but it was not compulsory. However, people did not sign up for this system voluntarily. A 2018 report showed that only 10% of Google’s active users had the two-factor authentication system activated on their accounts. Since then Google has been requesting its users to enable the 2FA for the best protection.

Out of 150 million accounts, Google has deployed the auto-enrolling system for only those accounts with a backup. Only users with a backup email address of a phone number that can be used for recovering a forgotten password will be auto-enrolled in the two-factor authentication.

The 2FA System: What is it and How Does it Protect Your Google Account?

The two-factor authentication is a safety program that asks users to submit additional information to confirm their identity before they are logged into their Google accounts. The 2FA security model is implemented by many social networking sites and other eCommerce stores to prevent hackers from getting unauthorized access to someone’s Google account.

Users can enter their mobile number where a confirmation for a sign-in attempt is sent. The user has to enter their login details, including password and the confirmation code from their mobile to access their Google account. A USB stick can also be used for 2FA. This means the login data will not be enough to sign in to your Google account anymore.

Details on the Google Support Page

You can find the details of the auto-enrollment process on the Google support page. The company has mentioned that each user flagged for the two-factor authentication will receive a notification a week before the rule is enforced. The notification will be sent via email. This, however, does not include companies that have purchased Google Workspace account. It is up to the administrator of the organization to decide if they should enable this security system for their Google accounts.

YouTube had also made the two-factor authentication system compulsory for the partner-level content creators recently. The support page also states that Google has currently allowed auto-enrollment for two-factor authentication, but it will become a two-step verification soon, making it mandatory for every user to verify their identity with additional details.

Google has teamed up with many IT companies to launch over 10,000 hardware keys annually. Another security tool that helps Google users remember their passwords is the Password Manager. The tool is designed to verify more than a billion passwords every day. The company has confirmed that this password manager will soon allow people to get passwords for other mobile apps too. It will be easier for people to get passwords for every mobile app from the Google App Menu.

On Android devices, the two-factor authentication system is integrated into the devices using Google Prompt. When you try to sign in to a Google account, a pop-up menu with “yes” or “no” appears on your screen. It saves you the time and hassle of entering the code every time you log into your Google account. The iOS users can use the physical security key or get a prompt request via their Gmail app or Google Smart Lock app.

Why is it Necessary?

More and more online channels are embracing the two-factor authentication protocols to guarantee maximum protection to their users. Google has also taken the initiative to make this search engine a safe place for individuals and businesses.

Two-factor authentication offers a way to protect your accounts from hacking and phishing attempts. Even if your password is leaked or a hacker finds out your login credentials, you can rest assured that they will never get access to your Google accounts until they use the physical key or the security code sent to your mobile.

Google had also launched the latest Chrome version earlier, which came with 19 security updates. One of these features was the payment confirmation option. Hopefully, by the end of 2021, we will see millions of Google accounts secured with the 2FA security system.

Facebook Enables App Creators to Pay Outside the Apple’s App Store

The CEO of Facebook, Mark Zuckerberg, declared that content creators can use custom web links, allowing their followers to make payment for the subscription services using Facebook’s native payment model. If someone uses your Facebook’s custom link to sign up for the subscription, instead of Apple’s in-app subscription, you get to keep the money. This new feature will enable creators to give their fans access to restricted content and charge them on a recurring basis for the same, without having to pay a hefty commission fee to Apple.

The feature is available for users based in 27 countries and is for only those who meet Facebook’s eligibility criteria. The battle between Apple and Facebook is due to the high fees charged to the content creators. Facebook wanted to create a payment ecosystem that would allow content creators to get full profit, paying only a small amount of tax, instead of a high commission fee.

Facebook Pay – The Company’s Native Payment System

The feature was launched to help creators keep a major portion of the money paid (in fact, the whole amount, minus taxes) to themselves. It shirks the 30% of the tax on Apple’s in-app store transaction. It is believed that Facebook is in the gray zone after launching the web custom link, however, the social networking platform believes that it has never done anything that goes against the iOS policy.

The creators had to pay a high fee to Apple’s app store every time they sold a digital item, an event, a subscription service, or any other online service through Facebook. At the beginning of the COVID pandemic, Facebook announced that it would reduce or eliminate the high commission charges for content creators by 2024. Apple did not accept it, but it did join Facebook for a short while.

In a latest Facebook post, Mark Zuckerberg clarified that Apple’s high commission fee is too much for any creator, as it is charged every month. The social site is supporting “own the relationship with your subscribers” by launching Facebook Pay.

Apple’s app store does not allow any app that would allow people access to any alternative form of payment for buying items from the app store. In the case of Facebook, it is not the app developer (Facebook) that sends people to make payments on Facebook’s native payment platform, but the content creators that will be directing their fans to make payments on the web. Facebook’s representative mentioned that this announcement has nothing to do with the user’s ability to apply for a creator subscription using Apple’s payment system.

Zuckerberg mentioned the importance of launching new features that allowed content creators to get the best reward for their work. Now that they are moving to the metaverse, it is time to unlock golden opportunities for the content creators to get paid for their hard work, and in full. Earlier, creators had to pay 30% of the revenues they earned as a transaction fee on Apple’s native payment system. They could keep only a small portion of the revenues. So, to make the ecosystem more profitable, the social networking platform has launched this innovative feature.

How Does it Benefit Content Creators?

In addition to the reduction of taxes, content creators are now entitled to receive a bonus of $5 to $20 for every new subscriber that signs up for their services (whether through Apple’s payment system or Facebook’s custom web links). The creators can use earning calculator for a breakdown of the revenues and fees they pay to Apple and Google. Another interesting addition is the ability to save and download subscribers’ email addresses directly from Facebook.

Social media is clearly taking advantage of Apple’s strict payment policies and privacy rules that do not allow people to communicate outside the app. Even though this restriction was lifted recently (in June), it has not made a big impact on users. People still cannot use an alternative payment method for subscription-based services. The high fees of the App Store have always been a controversy for Apple. You must have heard of the long-term battle between Epic Games and Apple? It has been going on for a year now. The company took Epic Games Fortnite off its platform since it launched its own payment system.

Bottom Line

Facebook has shown its creators how they can save tons of money using its Facebook Pay system. The platform has visualized the revenue summary, giving details of the amount they paid to Apple and Google, and how much they can save with this new Facebook Pay system. With this innovative feature, Facebook is expected to gain more popularity among content creators that are often on the lookout for a payment alternative that could save them the high commission fee.

Alibaba Debuts NFT Art Metaverse for China’s Singles Day

China’s Single Day allows people an opportunity to celebrate their single and happy life with shopping. Celebrated on 11th November, it is a perfect occasion for all the singles looking to buy some exclusive items. The event is back this year with an exciting range of products available for the singles. In 2020, the Chinese eCommerce industry earned $74 billion through the event. Once again, it is expected to generate billions.

According to a report by RADII, Alibaba launched “metaverse” for this year’s Single’s Day event. The report suggests that this feature is rolled out before Single’s Day as this eCommerce giant is trying its best to keep up-to-date with the latest technological advancements. The country is growing rapidly, and Alibaba has participated in this growth by launching Metaverse Art Exhibition, an online platform designed to help people interact on a virtual level. Earlier, Alibaba had shared a couple of pictures of its digital employee named “AYAYI”. People are predicting that it was the company’s step to encourage the new Art Metaverse launch. This digital employee is supposed to take the role of a guide, giving a warm welcome to people participating in the Alibaba Metaverse.

The Alibaba’s Metaverse Art Exhibition

Those visiting Alibaba’s Metaverse Art Exhibition will get a golden opportunity to explore the finest artwork by popular brands, including but not limited to, Alienware and Burberry. Using the last year’s learnings, as well as, the non-fungible trend (NFT) coupled with the live streaming services, the company is all set to break another success record this year. The specialty of the Metaverse app is that it has encrypted assets, which means if someone owns an artwork or something valuable in Metaverse, it is protected with blockchain.

This is done to ensure protection for the sellers and avoid copyright issues. Although it could prove to be the most positive news for vendors and customers, the concept has attracted skepticism. Facebook has also released a similar kind of feature, called the metaverse. Zhihu, the Chinese question and answer website, has received mixed reviews where some commentators have up-voted this new feature, while the rest of them do not appreciate Metaverse. It is believed that metaverse is expected to create a space where one could buy and sell products in peace while consuming fewer resources. Facebook has been focusing on its Metaverse strategy while rebranding its name to “meta”.

Tmall to be a Part of Metaverse

This art exhibition is going to be launched by Tmall in its official mobile app. As mentioned above, the exhibition will be conducted and run by Ayayi, who will play the human virtual idol. This unique avatar is designed and developed by Ranmai Technology. It might be a digitized bot, but this interesting avatar looks similar to a human.

Consumers and brands in China have shown great interest in engaging with virtual bots ever since the technology started. Ayayi, despite being new to the industry, has already garnered the attention of more than 114,000 people in no time. Not only consumers but many luxury brands have also shown interest in this digital avatar, with Guerlain being one of those.

Burberry to Participate in the Single’s Day Exhibition

This exhibition is all about the collection of eight products by many popular brands, one of which is Burberry. Despite being an exhibition of only limited products, the collection is offered at affordable prices so that there is no entry barrier.

Burberry is a pioneer and one of the reputable names in the digital innovation field. So, it goes without saying that it is part of this Single Day’s exhibition. Earlier, the company collaborated with Mythical Games to launch a Sharky B avatar dressed in the company’s monogram print. The surprising part is the brand had put 750 units of the characters for sale. The collection was sold out within 30 seconds.

For this art exhibition, Burberry is all set to introduce the deer mascot that will be flaunting the Burberry scarf. In the Single’s Day exhibition, the company will launch a thousand pieces of deer NFT. The limited-edition scarf is priced at $454. This exclusive piece of artwork can be used as wallpaper and emoji. Most importantly, the customers will be entitled to get the scarf physically.

Bottom Line

The Metaverse Art Exhibition is all set to bring many limited-edition products for customers. People can’t wait to be part of this China’s biggest exhibition and explore a vast range of products from luxury brands. The virtual bot will welcome each visitor and guide them through the exhibition, which is going to be an exciting experience for all customers.

Mastercard Steps Ahead in B2B Payments with New Supply Chain Finance Offering

Mastercard announced a collaboration with the UK-based finance solution provider “Demica” on its website on 21st October. The company is all set to expand and improve its Track Business Payment Services that started in 2020. Mastercard is working on its Track Business Payment Service to make working capital easily accessible with lower operational costs. It is also expected to reduce any complexities and unnecessary risks while promoting automation.

The company has launched this new financial service with Demica. This leading debit/credit card company aims to encourage its business partners to make working capital accessible and affordable to their customers. Due to the inadequate scalable solutions, supply chain financing has become inaccessible to many startups and small-scale companies. These financial solutions are affordable for businesses operating globally or on a large scale. Mastercard’s announcement has opened up a golden opportunity for small businesses and large corporations (operating globally) to manage their cash flow and meet the working capital requirements.

This collaboration with Demica means a flexible and affordable financial platform is now available for B2B companies. In addition, customers and payment networks are expected to reap the rewards of this new project. They can enjoy the benefits of supplier onboarding, advanced advisory services, and a smooth deployment procedure. Demica said they were excited about working with Mastercard to transform the payment network for retailers, payment service providers, and customers.

A Brief on Mastercard and Demica

Mastercard is a popular name in the payment industry, offering digital payment services to customers and retailers. The company’s goal is to facilitate safe, fast, and smooth transactions so that people can enjoy a seamless shopping experience. It is not the first time the company is introducing an innovative payment network. They are known to launch such financial programs now and then to provide customers with innovative financial services. Operating in more than 210 countries, Mastercard aims to make the payment system a sustainable solution for businesses and customers.

Demica is one of the largest fintech companies known for providing the latest financial solutions to businesses. The company has cloud-based programs designed to automate the working capital of a financial institution and other corporations. They have programs worth $18 billion running on their network. These programs are funded by prominent investors and institutions. They make it possible for businesses to improve their supply chains.

Demica’s Take on the Partnership

The CEO of Demica, Matt Wreford, said that this collaboration means the partnership of a company with a robust infrastructure and a leading financial solution provider. This partnership can bring one of the most significant transformations in the B2B payment industry globally. The CEO mentioned that their financial solutions could automate bill receivables and bill payables. Demica wants all types and sizes of companies – whether large investors or a multi-national corporation – to enjoy these benefits.

The Track Business Payment Service that comes packed with the working capital functionality is the best innovation in the financial industry. The goal is to ensure that every business has the required working capital to survive the competitive business environment. It will also strengthen the supplier and customer relationship by automating the payable and receivable. For suppliers, this program brings a range of perks that give them the best selling experience. It includes standard agreements, one-time registration, and early payments.

The New Partnership with Demica will Resolve Customers’ Pain Points Say Mastercard’s CPO

The Chief Product Officer, Craig Vosburg, said that the main objective of the Track Business Payment service is to improve the working capital facilities for businesses. The conventional cash flow network has proven to be a major obstacle in the growth of B2B companies. Not only is the current system complex, but it raised the operating costs and made it challenging for companies to streamline their working capital.

Mastercard’s executives said that this partnership with Demica will help them resolve customers’ and business’ pain points by allowing them to use the working capital in the most efficient way possible. The company has started integrating the Track Business Payment Service with Provenance Solution to enhance financial traceability for suppliers and buyers.

This integration will allow payment networks to collect data needed for facilitating early payments, low transaction risks, and a low reconciliation cost. Mastercard is also expecting to expand this new feature globally in 2022, as it keeps adding more partners to facilitate global trade. The service has already gone live in certain regions of the US, and almost all sizes of businesses have started leveraging this financial solution to regulate their working capital.

The new supply chain offering has become an integral component of cash flow management across industries. People are excited to see where this partnership goes and what it has in store for retailers.