Your Friday fix for global fintech and payments news
In the week that the UK economy announced the biggest slump on record meaning an official recession, we also heard that Valencia is Spain’s first city to have the public transport system go cash-free. Also this week we have seen that Facebook have introduced Facebook Financial and Klarna has introduced Google Pay for in-store payments.
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.
- Valencia public transport system to go cash free
- Facebook forms Facebook Financial to ramp up e-commerce
- Klarna introduces Google Pay for in-store payments
Aiming to improve the safety of, and accessibility to, public transport during COVID-19 and into the future, Valencia has become the first Spanish city to introduce a cashless mobile ticketing solution. Use of the mobile application from Masabi, a fare payments-as-a-service company, also aims to speed up journey times.
Masabi partnered with Mastercard and BBVA to launch the EMTicket app and will directly display a passenger’s tickets on their smartphone. Brian Zanghi, CEO of Masabi, said: “In light of Covid-19, provision of contactless and cashless payment options has become essential to maintaining confidence in businesses. For public transit, this means it is not enough just to make services accessible and convenient, every aspect of the journey has to be Covid-safe - and this includes ticketing and payment.”
Managing Director of EMT Valencia, Josep Enric García Alemany said: “This new app will not only help to modernise our services, but also offer EMT Valencia’s passengers a convenient and immediate way to purchase tickets. We are excited to be deploying Masabi’s market-leading mobile ticketing platform to allow our passengers to manage their entire transit experience from a single app anytime, anywhere, and to be the first city in Spain to introduce an entirely cash-free onboarding service.”
After the announcement of the e-commerce tool, Commerce Accelerator, a few weeks ago, Facebook has now launched a new community called Facebook Financial, which will be in charge of all of the company’s payments projects. Included under this umbrella will be Facebook Pay, which is the payment offering planned for all of the apps Facebook owns.
The overarching aim is to get social media users to spend more time using the applications owned by Facebook (Facebook, Instagram and WhatsApp), making advertising on those apps more desirable, therefore enticing users to make more in-app purchases.
Klarna has announced that in addition to the availability of in-store Apple Pay, which was announced back in January, they are now introducing in-store Google Pay as a payments method in a selection of their merchant partners in the US. This news comes after hearing that contactless payments use in the US has skyrocketed 150% since March 2019.
Statistics reveal that since the launch of in-store Apple Pay payments through Klarna, increases in average spend have been as high as 310% in comparison to other payment methods.
David Sykes, Head of US at Klarna, said: "We're focused on providing all of our users with a seamless, contactless shopping experience as stores reopen and the pandemic continues to affect communities across the nation."