This Week in Payments 10-03-2014
By Spencer Soper via Bloomberg
EBay is spinning off its PayPal division, throwing the business into direct competition with Apple and Google as consumers step up the use of smartphones and computers to pay for goods and services.
Activist shareholder Carl Icahn had pushed for a split earlier this year, only to be rebuffed by Chief Executive Officer John Donahoe, who said in March a separation was “not a good idea.” Since then, EBay’s board reviewed the company’s strategy and decided EBay and PayPal will be better off as two independent public companies, the San Jose, California-based company said in a statement yesterday.
By Buster Hein via Cult of Mac
Apple Pay, the new mobile payments system that unshackles iPhone users their wallets – will only be available in the U.S. when it launches next month, but Apple’s is already hiring a team to expand its mobile payments into Europe.
Mary Carol Harris has been poached away from Visa by Apple where she was the director of mobile at Visa Europe since 2008, and she’s also got some expertise with NFC too.
By Emily Glazer and Danny Yadron via Wall Street Journal
J.P. Morgan Chase said about 76 million households were affected by a cybersecurity attack on the bank this summer in one of the most sweeping disclosed breaches of a financial institution.
The largest U.S. bank by assets said the unknown attackers stole customers’ contact information—including names, email addresses, phone numbers and addresses. The breach, which was first disclosed in August and is still under investigation by the bank and law enforcement, extended to the bulk of the bank’s customer base, affecting an amount equivalent to two-thirds of American households. It also affected about seven million of J.P. Morgan’s small-business customers. It isn’t clear how many of those households are U.S.-based.
by David Carey via Bloomberg
Frank Bisignano has been busy forging ties with Silicon Valley since leaving J.P. Morgan Chase 17 months ago to run First Data Corp.
The company he inherited was a payment-industry giant with a client base that included Wal-Mart and McDonald’s Corp. At the same time, it was mired in almost $23 billion of debt, the result of a leveraged buyout done just before the financial crisis, and struggling to find areas for growth. A pack of ambitious competitors such as Vantiv and Square, a startup led by Twitter co-founder Jack Dorsey, was nipping at its heels.
“It was an unparalleled property that had been run like a utility,” Bisignano, 55, said in an interview in the company’s New York office. “We came in and said: ‘We’re going to grow this thing.’”
By Sarah Perez via Techcrunch
Just ahead of Apple Pay’s public release, a top credit card provider, Capital One, has rolled out a new mobile wallet app for cardholders that will work with Apple’s forthcoming mobile payments platform to provide users with detailed information on their Apple Pay transactions, in addition to balance rewards access, and other features.
The app was soft launched on iOS earlier in September, but the company is only officially announcing its debut this morning.
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