Your Friday fix for global fintech and payments news
Brits are going weeks without using cash – a recent survey from Nationwide has revealed that British consumers are going an average of 44 days without using cash once, while there has been a 44% increase in tap-to-pay transactions. In other news, Klarna launches a new shopper loyalty program called Vibe, and PayX deep dive into Compass Plus’ flagship product, TranzAxis.
Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- Brits go weeks without using cash during Covid-19 lockdown
- Klarna launches Vibe: The first buy now, pay later shopper loyalty program
- PayX deep dives into Open Development Payment Platforms with an independent study into TranzAxis
Over the course of the nationwide lockdown within the UK, the British public have gone an average of 44 days without using cash. According to a survey by Nationwide Building Society, in which 2,000 people were polled, the results showed that more than a quarter of those surveyed have gone two months or more without cash. Nearly a third also admitted that they cannot remember what they last bought with cash. Nationwide’s customer data also showed a 44% increase in tap-to-pay transactions since 23 March, when lockdown first went into effect.
Mark Nalder, Head of Payments at Nationwide, said that: “As lockdown restrictions continue to ease, it is evident the pandemic could have a lasting impact on how people pay for things. Far from heralding the death of cash, a shift towards mobile payments and online and mobile banking will help people keep track of their spending and better manage their money. Although we don’t expect cash to return to pre Covid-19 levels, it is highly likely cash usage will increase post-lockdown as the high street begins to reopen, even if that means the use of card payments - via contactless, phone or another device - rise in tandem."
Klarna, the leading global payments provider and shopping service (and Compass Plus customer), has recently launched their new customer loyalty program called Vibe, becoming the first buy now, pay later provider to offer a rewards program. The no-fee program will be initially rolled out to the US market this month, with further rollouts in Klarna’s other key markets of Germany, Australia, Sweden and the UK within the next year. Program members earn one “Vibe” (point) for every $1 they spend, and Vibes can be redeemed for rewards, for example gift cards from other retailers such as Starbucks, Sephora, Foot Locker and Uber.
Sebastian Siemiatkowski, CEO of Klarna, said: “We’re extremely proud to be the first company in the buy now, pay later space to offer a personalized rewards program. We’re laser focused on providing our nearly 8 million US consumers with the most convenient, seamless and enjoyable shopping experience possible, from end to end, and the Vibe program builds on our efforts and success. Vibe members have the freedom to shop everywhere and will enjoy access to unique, tailored benefits from hand-picked partners in addition to exclusive offers, deals and other rewards.”
We couldn’t let this one slide without shouting about it from the rooftops…
Internationally renowned payment specialists, PayX, were given full access to produce an independent review of our open development payments platform TranzAxis. We drafted in PayX to give an unrestricted analysis of TranzAxis due to two key areas that we felt were pertinent to address. As technology experts before everything else, we were motivated by our desire to evolve and create, so any and all insights would be invaluable to the continued enhancement of the platform. The second reason was more competitively strategic: we wanted to prove that TranzAxis really does deserve to be highlighted as a platform with capabilities that go beyond buzzwords and tick boxes.
Steve Lomax, Senior Management Consultant at PayX Group, said: “Compass Plus have risen to the challenge of how to address the needs of current and future payments platforms through their TranzAxis product.”