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Home » Daily Briefing » Morning briefing - 26 September 2016

Morning briefing - 26 September 2016

As Germany counts down to a 2017 election, chancellor Angela Merkel is signalling to voters that there will be no bailout for Deutsche Bank, even though the giant bank's shares hit a new low this week as it faces a fresh round of calls on its cash that could eat up more than the capital set aside to cover fines for ongoing fraud investigations in the US and Russia. Will Ms Merkel hold her nerve? It seems inconceivable that Deutsche Bank will be allowed to fail, despite teetering on the edge for several months and named by the IMF as the bank posing the greatest systemic risk globally.

Three of the businesses that received payment bank licences in India ran the numbers and exited the game — but Paytm's Vijay Shekhar Sharma thinks he'll be able to run a profitable bank. "Customers will come to us and we will open a wallet, a current account, and a savings account. There are three use cases for money in these accounts," he told Bloomberg. "They can make payments using it and we make money in payments. Second, they can use that money to consume something and maybe buy on the Paytm marketplace. We make a larger amount of money there. Third, we also offer them financial services and we make money on that." Read the full story here.

At industry events, wise heads often remark that boosters of new technologies often fail to check with potential customers to see if there's any interest in a product. Payments businesses are struggling to get consumers interested in the myriad of new ways to pay that have been invented mostly to take advantage of smartphone technology. Yes, as the Financial Times reports in a story called "Glut of 'fiddly' pay apps leave consumers cold", people "struggle to differentiate between similar and overlapping apps, worry about security — or simply do not see the point." Most retailers would like to have their own payment apps, the story says, but they worry that they won't be able to persuade consumers to add yet another way to pay.

A major collaboration between Alipay and Wirecard will allow Chinese visitors to use the QR code-based Alipay app to shop across Europe. Retailers can download the iOS app at first, with an Android app to follow. Along with Visa's recent venture in Nigeria, is it possible that scan-based systems will start to gain widespread popularity in Europe and the US?

PayPal is teaming with manufacturer Lenovo to install biometric identification on desktops and laptops, most likely with fingerprint authentication — but with cameras and other ID possibilities on a device, it's also possible that new tech will involve a combination of IDs or different requirements depending on levels of payment. With the global theft of password info now racing towards one billion, there can't be many uncompromised accounts left to hack. PayPal and Lenovo were both founder members of the Fido Alliance, which seeks to establish industry standards for non-password based authentication.

Japanese people are "too happy" with their banks, complain fintech pioneers
US gets faster payments
Confidential report says Brexit threatens retail banking industry in the UK
Afrexim and Arik partner to promote intra-African trade

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