Amazon is unbundling financial services from every angle, according to a recent report by CB Insights
Global Fintech Fast Track program grows 280% in less than a year, supporting women-owned Fintechs, digital currency wallets, B2B and B2C innovators
The revamp offers greater flexibility for curbside pick-up, contactless shopping when merchants reopen.
Key Points
Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Payments, Transfers, Rewards
WeChat live Streaming pumps life into local business in China
Techcrunch | Rita Liao | May 8, 2020
China is showing renewed interest in live streaming. As the coronavirus swept through the country and shut down premises in droves, businesses are turning online to drive sales. Many have adopted live streaming, a model that predates the short videos that dominate many of our mobile screens now. Ecommerce titans like Alibaba, JD.com and Pinduoduo have ramped up efforts in live streaming, which sees customers interact with merchants and place orders in real time as many continue to avoid offline shopping.
An unorthodox player, WeChat, has also entered the fray.
The messaging giant, which commands 1.16 monthly active users, announced this week it’s partnering with the southern Chinese city of Guangzhou to host a live stream shopping festival in June. The news arrived not long after president Xi Jinping acknowledged the essential role of live streaming ecommerce in the economy, especially in promoting sales of rural produce.
See: China’s digital currency app looks like Alipay and WeChat Pay
The initiative led by a municipal government to pump up the local economy through live streaming ecommerce is first of its kind in China. It should surprise no one that it’s slated to take place in Guangzhou, a major trade and export center, as the global pandemic depressed China’s outbound shipments, putting pressure on the authority to stimulate domestic demand.
Like most of WeChat’s extended functions beyond messaging, live streaming is built upon the mini program — or lite app — infrastructure. The feature now sees registered merchants in the several tens of thousands and remains free to use during the testing phase, according to WeChat. Retailers in grocery, tourism and fashion are by far the biggest beneficiaries. Nasdaq-listed travel portal Ctrip, for example, has racked up nearly 100 million yuan, or $14 million, in sales by promoting live on WeChat as airlines and tourist attractions are shelling out deep discounts. Homegrown lifestyle brand Heilan Home recorded more than 3 million viewers in one live session.
“In recent months, the demand for online shopping has surged due to the coronavirus pandemic. Selling through live streams is now a key way to help businesses reopen and resume production as well as stimulate consumer demand,” Gerald Hu, general manager of Tencent Guangzhou, said in a statement.
Continue to the full article --> here
What is the live stream on WeChat?
Functionalities and channels within WeChat to do a live broadcast
A few industries (graming, e-commerce to name a few) are active in live video broadcasting because:
- the size market is growing (fast)
See: Globalizing Fintech In Action: A Discussion With Harinder Takhar of Paytm
Market size of online live streaming in China from 2016 to 2020 | June 2018 [Statista]
- this distribution channel has proven tangible results.
A few data to support this result:
- Source: iResearch
- 63.2% of users watched live streaming to relax
- 50.5% of live streaming user would make comments, over 40% of them would like it, reward hosts (free-to-play), and share videos to others
- 86% of live streaming users thought positively about live streaming marketing. Among them, those younger than 24 years are more likely to be attracted by new products release and buyer’s sharing.
- Source: Alibaba
- In 2018, Taobao’s live broadcasting platform Taobao Live delivered more than 100 billion yuan sales of products, a year-on-year growth rate of nearly 400%.
- In 2019, Taobao Live brought 20 billion RMB sales during Double 11.
- A total number of 81 live rooms on Taobao Live reached 100 million yuan sales; a total of 5 organizations broke 1 billion yuan sales.
- Taobao Live aims to deliver 500 billion yuan sales in the next three years.
See:
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The 5 Debates That Will Shape Fintech In The 2020s
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Shopify displaces RBC to become Canada’s most valuable company
How does it work?
There are several solutions to enable brands and businesses to do live streaming within WeChat.
Brands can:
- set up their own WeChat-based broadcast channels (more details 👇👇👇👇)
- collaborate with a 3rd party WeChat influencer with a relevant fanbase to host a live streaming session which doesn’t require technical development resource
Live streaming via a branded Mini Program
Live streaming component to integrate into a custom made Mini Program. It’s a templated feature.
Tencent releases a live streaming capability to be integrated into a WeChat Mini Program (MP) in 2020.
This feature can be relevant for eCommerce type Mini Program.
The brands can link from their Mini Program where the live streaming is happening to their branded online shopping channels so that the user is taken directly to the product page to buy.
- Owned WeChat Mini Program shop
- JD shop
- Weidian
Case Study
Continue to the full Wechat live streaming tutorial guide -> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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How is Amazon disrupting the financial services sector?
Fintech Magazine | | May 13, 2020
Amazon is unbundling financial services from every angle, according to a recent report by CB Insights
The report, Everything You Need to Know About What Amazon is Doing in Financial Services, recognises Amazon’s building of a host of financial services products and tools in the areas of payments, cash and lending.
These, it notes, “support its core strategic goal: increasing participation in the Amazon ecosystem”.
In this article, we look more closely at Amazon’s activity in the payments sector.
The modern banking experience
There is ongoing speculation around the entry of Big Tech companies such as Amazon into the financial services sector.
See:
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Cash, Plastic or Hand? Amazon Envisions Paying With a Wave
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Shopify displaces RBC to become Canada’s most valuable company
However, says CB Insights, to understand the implications of such a move, it is important to analyse the company’s current financial services strategy.
To date, says the report, there is little sign of Amazon working to build the next generation of banks. Rather, the company has built and launched tools with the aim of:
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Increasing the amount of merchants on Amazon and enabling them to sell more
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Growing the number of customers on Amazon and allowing them to spend more
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Continuing to reduce any buying or selling friction that exists.
The company has also made a number of fintech investments in international markets aimed at building a pool of partners that can achieve its overarching strategic goals.
While these don’t equate to a traditional banking experience, CB Insights explains that
“Amazon has taken the core components of a modern banking experience and tweaked then to suit [its] customers.” It adds that “In a sense, Amazon is building a bank for itself - and that may be an even more compelling development than the company launching a deposit-holding bank”.
Payments
Investment in payments infrastructure has been a core focus of the company, says CB Insights. Amazon Pay, for example, no offers a digital wallet to customers and a payments network for online and brick-and-mortar merchant service.
See:
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Amazon, Walmart, the Secret Battle for FinTech Supremacy: Part II
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Google and Gates Foundation to help spread digital payments in developing countries
It is, however, the latest iteration of more than a decade’s worth of forays into payments functionality from the brand, which includes products such as Pay with Amazon and Amazon Webpay.
The report notes several techniques that have been employed by Amazon to improve its payments experience, including digital wallet technology, mobile payments developments and partnering with other merchant acquirers.
On possible future developments in the payments sphere, CB Insights points to Amazon’s announcing an integration with Worldpay in 2019, which acts as a back-end intermediary between banks and credit card companies.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Visa’s Fast Track Program Propels Growth of the Fintech Industry Worldwide
Visa | Press Release | May 7, 2020
Global Fintech Fast Track program grows 280% in less than a year, supporting women-owned Fintechs, digital currency wallets, B2B and B2C innovators
SAN FRANCISCO--(BUSINESS WIRE)--Fintechs are a central part of the global payments ecosystem, and amidst COVID-19 have launched further into the spotlight, reporting sizable upticks in the usage of their apps1, as more people manage their money from their personal devices. Visa (NYSE: V), today, is proud to announce its continued support of the global Fintech community, having grown the Fast Track program to over 140 Fintechs2. Since expanding globally in mid-2019, the Fast Track program has grown 280%3, highlighting the surge in demand for digital payments worldwide.
See: Visa Grants Coinbase Power To Issue Bitcoin Debit Cards
Fast Track allows both new and established businesses to leverage the speed, security, reliability and scale of the Visa network to get up and running quickly, taking the process from months to weeks. The program provides turnkey access to Visa’s ecosystem partners, online licensing, APIs, as well as extensive go-to-market toolkits, online education and expert advice to help Fintechs scale their business. With new members from Africa, Asia Pacific, Europe, Latin America, the Middle East and North America, these Fintechs are transforming how consumers and businesses manage money, invest, receive loans and send payments worldwide.
“Our goal is to bring cutting-edge Fintechs into the Visa ecosystem, to help them grow and scale their business in record time,” said Terry Angelos, senior vice president and global head of Fintech, Visa.
“Through programs like Fast Track, Visa is committed to helping Fintechs, many of which are small businesses, advance their potential and get into market quickly, so they are ready to provide innovations that move the world forward everyday – especially in current times.”
Fast Track Fintechs Focus on Recovery
Visa partners including Airwallex, Fundation and Rappi have used their ongoing focus on innovation and growth to be nimble in their reactions to COVID-19. Australia-founded Airwallex has extended support to Australia and UK-based small businesses in need by offering to waive their international transactions fees and U.S.-based Fundation is helping small businesses quickly get the capital they need during these times. Rappi out of Colombia has begun piloting food delivery by robots, working to minimize the spread of the virus. In these videos, Airwallex and Rappi both talk about their experiences in working with Visa.
See: BNY Mellon Report: Global Payments 2020: Transformation and Convergence
“During these challenging times, it’s more important than ever that we are able to support small businesses by getting them the funds they need as quickly as possible to stay afloat,” said Sam Graziano, chief executive officer, Fundation. “Through our partnership with Visa, we will continue to innovate and develop strategies to aid in the relief and recovery of our customers' businesses."
Visa Welcomes a New Class of Innovators
The newest members of the Fast Track program span a diverse range of companies, including female-founded Fintechs, digital currency wallets, consumer-centric and business-to-business (B2B) solutions providers. Highlights include:
- New Enablement Partners: Fast Track is made possible due to collaboration with enablement partners who are the critical technology companies that lay the foundation for Fintechs to build their products. Announced today, three new program manager enablement partners – Cascade FinTech, Deserve and PEX – are becoming part of Fast Track in the U.S., joining a class of leading companies like Galileo, Marqeta and Stripe, bringing the total number of enablement partners to more than 20 globally.
- Female Founders: Visa is committed to the advancement of women’s economic growth. Visa’s investment in women-owned businesses is further emphasized by the inclusion of global female-founded Fintechs, Australia-founded Airwallex, and North America-based gogo Getter and Kikoff.
- Digital Currency Wallets: Digital currency enabled wallets have grown exponentially, with over 139 million user accounts in existence today4. In support of this burgeoning market, digital currency-focused Fast Track companies including Fold, Genesis Block and TrustToken are connecting their consumers to Visa’s 61 million merchant locations worldwide.
- Consumer Finance Management: Across platforms, Visa aims to make the everyday management of money easier for consumers. Fast Track companies including Europe-based Lydia and Swile, Paga in Africa, SoLo Funds in the U.S., and United Arab Emirates-based Wally are among those simplifying money management and driving Fintech app adoption in their communities.
- Small Business Support: Visa continues to transform the B2B payments space for the digital age. UK-based digital lender Capital on Tap, which provides credit cards and loans to over 60,000 SMBs, and U.S.-based Fundation, which provides an application processing platform for banks and small business lenders, are part of the program. Konfio, a Mexico-based startup that uses a data-first approach to enable fast credit assessment for SMBs, and Neat, a Hong Kong Fintech startup enabling SMEs to grow their business globally, are also standout members creating new B2B innovations from across the globe.
See: Podcast hosted by Tristram Waye: Special guest, Richard Turrin, Author of Innovation Lab Excellence
“Right now, it’s more important than ever to help small businesses navigate through unknown financial challenges,” said David Arana, chief executive officer, Konfio. “By working with Visa and through the Fast Track program, we have been able to offer small businesses access to financial services that they’re often not given, and provide options to SMEs who need credit lines to pay for necessities, which is especially important in today’s environment. We have also developed tools and market research to complement our financial services.”
“After recently joining Visa’s Fast Track program, we were able to quickly put our co-branded debit card into market in the United States,” said Will Reeves, chief executive officer, Fold. “By working with Visa, we are delivering on our mission to provide an easy way for shoppers to earn rewards in bitcoin for their everyday spending, and help our business continue to scale with the backing of Visa’s vast network and resources.”
For more information on Visa’s Fast Track program and how to join, visit here.
Original release: here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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What It Takes To Get Consumers (And Merchants) To Go Cashless, Contactless – And PIN-less
PYMTS | May 6, 2020
The appeal of contactless payments has skyrocketed since the pandemic hit across the globe. Payment network giants such as Visa and Mastercard said in their most recent earnings reports that contactless payments, especially in face-to-face transactions, surged by double digits year over year.
Yet mobile wallet usage has been stuck in the single-digit range, despite being available for years.
In an interview with Karen Webster, Lillie Platko, general manager, payment networks at FIS, said the stage might be set for contactless adoption to be cemented as a payment method of choice even after the pandemic is a memory.
But it will take a mindset shift on the part of merchants and consumers — and a return of foot traffic to the stores, of course.
See: Shopify Launches Rebuilt POS to Offer Flexibility Post-COVID
As Platko said, the data show that consumers are willing to try something different when it comes to payments, chiefly to avoid touching things. FIS has found that, as part of its own research, roughly 50 percent of respondents have used contactless methods to check out at a store since COVID-19 restrictions went into effect. And according to the data, 31 percent of consumers will use contactless or digital payments in the aftermath of the virus.
The question is whether the pandemic is spurring a true shift in consumer behavior — or will this be a temporary blip?
Platko pointed to the rule of thumb — a magic number, one might say — that can get new payment behaviors more firmly entrenched in consumers’ day-to-day habits. She pointed to years past, and the embrace of debit cards, as prologue.
“The magic number was to get them to do it three times,” she told Webster.
With a nod toward the current environment, she said, the fear of touching things in a brick-and-mortar environment is likely to linger, spurring consumers to continue to move away from cash.
Thus far, there’s still bifurcation, Platko said, as to whether some consumers will be comfortable using the phone to pay or whether they’ll still be quick to pull out the plastic.
As Webster noted, consumers like their cards. There’s been a progression away from cash and toward cards, especially for low-dollar transactions in settings such as quick-service restaurants (QSRs).
But that shift — from cash to cards and from cards to contactless — will be an eventuality on the horizon rather than a quick pivot.
See: How payments can adjust to the coronavirus pandemic—and help the world adapt
That’s due in part to the fact that, as Platko noted, issuers (and, from her perspective on the network side, stakeholders) are not making huge changes right now as they are challenged by the macro-economic environment and limited resources due to COVID response activities.
What Has To Change
In order for contactless to become more widely adopted, merchants must be comfortable with the liabilities they take on when accepting those payment methods as compared to PIN-based transactions. Platko noted that in Europe, there are limits on how much people can spend before they are mandated to enter a PIN or a signature. In the U.S., there are no such limits.
That means it’s up to the merchants, who are knowledgeable about their average ticket sizes (and financial exposures), to determine their own comfort zones. By and large, Platko predicted, merchants will look to offer contactless payments if they don’t already do so.
The Great Unknown
But there’s a great unknown in the equation, said Platko: whether the consumer will respond to the merchant’s encouragement to use (or consider using) contactless.
“The consumer is going to do what’s comfortable,” she told Webster, adding that “almost everyone has a mobile phone, but they aren’t necessarily using a mobile wallet.
If you’re using a mobile wallet, you probably ‘get it.’ But I’m not sure that, if you’re a card user, you even know if you have contactless. After all, most individuals have multiple cards from multiple users. Some of them are contactless-enabled and some aren’t.
The eCommerce Hurdle
There’s another near-term hurdle in place toward a fuller in-store use of mobile wallets and contactless cards.
See: Cybercrime and Covid-19: Preying on Fear
An increasing number of merchants are embracing ways to minimize, or even eliminate, in-person interaction at the point of sale or pickup. These firms are opting toward card-on-file or a fuller eCommerce experience, through order-ahead and pick up, to offer safety and convenience.
“I am amazed at how many people have actually moved ‘away’ from the store,” said Platko, adding that eCommerce will continue to grow, even post-COVID-19, though growth rates will moderate over time.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Shopify Launches Rebuilt POS to Offer Flexibility Post-COVID
Digital | May 4, 2020
The revamp offers greater flexibility for curbside pick-up, contactless shopping when merchants reopen.
Highlights
- Canada-based e-commerce giant Shopify has launched a new new POS system, bringing online and in-person sales together through improved omni-channel management.
- The relaunch offers added flexibility to retailers temporarily shuttered due to COVID-19.
- Increased options, such as curbside pickup and flexible delivery rates will be offered as businesses are able to gradually reopen.
- App integration also includes greater mobile capabilities, including appointment scheduling and door-counting for foot-traffic management.
Analysis
Shopify is relaunching its POS today, with a redesign that offers added capabilities and flexibility for retailers, in direct response to shifting business needs in the wake of the coronavirus pandemic.
“Retailers need help right now,” Shopify Director of Retail Ian Black said in a press release announcing the relaunch. “Shopify is doing everything we can to help retailers adapt to current challenges and come back stronger.”
See: Shopify expands capital lending program to help Canadian merchants weather COVID-19
The relaunch, which is available globally, bolsters Shopify’s omni-channel capabilities by uniting online and in-person sales in one place. As retailers continue to adapt to new conditions, offering curbside pickup and attempting to limit foot traffic to bricks-and-mortar locations, in adherence to physical-distancing requirements, when stores are able to reopen, Shopify’s POS will offer these capabilities within its app.
According to the release, over a two-week period last month, Shopify saw a ten-fold increase in users allowing for curbside pickup and in-store pickup options.
“Retailers deserve a point-of-sale that helps them shift their sales from in-store to online, easily offer curbside pick-up and local delivery, and be ready for growth when in-store customers start to return,” Black said. “No other point-of-sale is as powerful for the challenges retailers face today.”
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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How Citi and Flywire sped payments to get PPE from China to Boston
Payment Source | John Adams | May 4, 2020
The shortage of personal protective equipment (PPE) for medical workers is one of the most troublesome elements of the coronavirus outbreak, though prior work to declutter cross-border supply chain payments provides some hope.
“Numerous supply chains have been disrupted. Medical supply chains for personal protective equipment in particular have been critically disrupted with manufacturing slowdowns in Asia Pacific further exacerbated by unprecedented global demand in the rest of the world,” said Thor Perplies, treasury sales officer with Citigroup’s Commercial Bank.
See: How payments can adjust to the coronavirus pandemic—and help the world adapt
The Citi unit used Flywire’s payment network to move about $1 million to a supplier in China to procure 1.4 million pieces of PPE for hospitals in the Boston area through The Boston Foundation, a community nonprofit that worked through a connection students from Harvard Business School had to a medical supplier in China. It’s an example of how faster payments and open banking, or the streamlined collaboration between fintechs and traditional financial institutions — something large banks for years considered a threat — can mitigate the impact of a health crisis.
A delay in payments causes an added disadvantage, leaving the traditional model of using correspondent banks to manage currency exchanges not only obsolete, but dangerous.
“Normally a transaction of this nature would take a day or two longer to process because the beneficiary bank needs to open a service case and triangulate data between the beneficiary, Citi, and Flywire,” said Perplies, adding that with coveted PPE procurement, there was an extreme sense of urgency.
Flywire, a Boston-based fintech that uses a global network of banks to avoid third parties for supply chain payments, alerted the PPE supplier that a payment from Citi needed to be reviewed by the suppliers’ banks before the funds could be applied to their account. The regulations mandated a contract, invoice or customs slip.
“It was important that the beneficiary bank quickly locate the payment, reconcile the transaction with the supplementary documents and then apply funds,” Perplies said.
For years, these types of transactions required third parties to hold funds in the different markets. New alternatives have emerged that use cloud structures or blockchains to eliminate third parties.
See: BNY Mellon Report: Global Payments 2020: Transformation and Convergence
Ripple is well known in this market, using the technology that supports the XRP token to facilitate international payments.
Banks initially viewed Ripple as a competitor, though increasingly banks are partnering with Ripple. Flywire works through a network of local partners to offer local currency payments for two sides of a transaction, such as a student from Asia attending university in the U.S. It also manages local compliance and security risk management.
During the coronavirus pandemic, open banking has emerged as a way for consumers to link digital services to banks with minimal contact, forging a migration to digital financial services that will likely be permanent.
“It highlights the fact that fintechs aren’t really disruptors for banks,” Frere said.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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McDonald’s is reportedly part of China’s digital currency trial
CNBC | Evelyn Cheng | Apr 24, 202
Key Points
- China has rolled out a digital currency trial in Xiong’an, an area southwest of Beijing in the Hebei province, according to state-backed media reports.
- McDonald’s and Subway are reportedly two American firms among 19 companies participating in the trial.
- The People’s Bank of China (PBOC) has been working on a digital yuan for the past few years but has made clear that it has not yet officially launched.
See: BNY Mellon Report: Global Payments 2020: Transformation and Convergence
McDonald’s is among a handful of companies taking part in a new pilot program for China’s upcoming digital yuan, according to state-backed media, as the world’s second-largest economy pushes forward with its plans for an electronic currency.
The People’s Bank of China, the country’s central bank, has been developing a digital currency over the past few years. While there are very few details at the moment about its exact design, it’s unlikely to resemble popular cryptocurrency bitcoin, which supports anonymity and decentralization, that is, it’s not issued by a central authority.
China’s digital yuan will be issued by the PBOC and the focus appears to be making digital payments easier and faster.
McDonald’s, Starbucks and Subway are the three U.S. firms among 19 companies in total that will be participating in the digital currency trial in Xiong’an, which held a promotional event on Wednesday, state-backed Securities Times reported.
However, a Starbucks spokesperson told CNBC the company is “not participating in any digital currency trial in China.”
McDonald’s and Subway were not immediately available for comment when contacted by CNBC. The central government agency reportedly overseeing the project did not immediately respond to a request for comment.
Xiong’an is a special district about 86 miles southwest of Beijing in Hebei province and is President Xi Jinping’s personal project for building a new economic center. It’s unclear though how much progress has been made since its launch in 2017.
See: How payments can adjust to the coronavirus pandemic—and help the world adapt
Xi emphasized in a speech on Thursday that the country would step up development of 5G, artificial intelligence and other technologies at a massive scale known as “new infrastructure.”
The announcement of that pilot program, which appeared to focus on retail and catering, follows another recent test in Suzhou where the digital yuan was being used to give subsidies to local workers for transport.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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