WEEKLY ROUNDUP - 31.07.2020

Your Friday fix for global fintech and payments news

Mastercard has announced its recent partnership with Microsoft, as the payments giant plans to drive digital commerce, start-up innovation, and financial inclusion using the cloud. In other news, Klarna partners up with The National Retail Association, and current account switching in the UK drops by 65% in Q2.

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.

 

  • Mastercard partners Microsoft to push digital commerce innovation
  • What Klarna and NRA’s New Partnership Offers Retailers
  • Current account switching drops by 65% in Q2

 

Mastercard partners Microsoft to push digital commerce innovation

Mastercard have announced their partnership with Microsoft, as they team up to drive digital commerce, start-up innovation, and financial inclusion using the cloud. The collaboration will see Mastercard Labs’ cloud native research and development activities accelerated and will enable Mastercard’s partners to utilise emerging innovations and new commerce capabilities such as devices that enable digital payments in new ways.

Ken Moore, Head of Mastercard Labs, says: “This strategic collaboration will strengthen and extend our cloud services and capabilities for clients and fintech partners, sparking innovation and creativity for the ecosystem. It will enable us to explore opportunities focused on new client segments, technologies and trends as we continue to drive financial inclusion and build the future of commerce.”

 

What Klarna and NRA’s New Partnership Offers Retailers

Klarna and The National Retail Association (NRA) have signed a partnership to provide a more secure retail sector in the wake of the effect the COVID-19 pandemic. The intention of the partnership is to provide education for local brands and retailers as to how they would best be able to attract new customers, and online shoppers.

Commenting on the partnership, Dominique Lamb, CEO of The NRA, said: “As technology continues to advance, customer expectations adapt alongside them. Customers expect convenience, and offering various payment options is one way to assure frictionless transactions.Given the growth of the Buy Now, Pay Later platforms in recent years, it only makes sense for the National Retail Association to form this strategic partnership. Klarna is ideally positioned to provide valuable insights to our members. Their global footprint gives access to a wealth of data and valuable insight.”

Fran Ereira, ANZ Country Head for Klarna, said: “It’s important that Australian retailers have a strong voice and we are proud to stand behind the National Retail Association and its 28,000 shopfronts. Klarna is in Australia to deliver choice, insight and value to Australian retail businesses. We are dedicated to supporting this important sector and the contribution it makes to our economy in a time of great change.”

 

Current account switching drops by 65% in Q2

The number of people switching their current accounts has dropped by 65% in the second quarter of this year. 98,192 UK current account switches took place in Q2, 182,328 fewer than Q1.

Of those who switched accounts in Q2, consumers favoured new accounts with digital banking services and improved customer service as opposed to better rates and lower charges. The most commonly cited reason for favouring a new account is improved online banking facilities at 43%.