Payments Briefing: Looking back at our top stories of 2022

For our first Payments Briefing of 2023, we’re looking back at some of our top articles, briefings, and podcasts over the past year, including conversations with – and discussions on – some of the leading firms in the space, such as Stripe, Block, PayPal, Mastercard, Wise, Ramp, Rapyd, Remitly, and many more.

Let’s begin.

Behind Walmart’s growing interest in BNPL

Walmart-backed fintech startup ‘One’ is planning to launch a BNPL service in 2023, which shoppers will be able to use at Walmart’s website and physical stores, as well as at other retailers.

Despite the currently high demand for BNPL, Walmart would also have to contend with the stronger regulatory oversight that’s likely to be implemented in the US, which could affect BNPL growth.

Stripe’s Josh Ackerman on the changing nature of online checkout

Josh Ackerman, Product Lead at Stripe, joins us on this week’s Power of Payments podcast. He talks about the existing gaps between consumer expectations from online checkout and what most merchants currently offer, as well as how the checkout experience has evolved over the years.

FedNow’s potential pitfalls for B2B payments

In the next six to eight months, the Federal Reserve will start rolling out FedNow, its real-time payments service. Tearsheet sat with Balaji Devarasetty, CIO of Paya, to discuss the benefits and potential pitfalls of implementing FedNow's RTP for B2B fintech providers.

A closer look at Citi’s new integrated solution for institutional billers

The increasing pace of change in the payments ecosystem – driven by regulatory changes, security challenges, and other local factors – increases the complexity of managing payments.

Citi is the latest among incumbent banks to augment its digital services. The bank has integrated its digital payments service – Spring by Citi – into Citi Present and Pay, its electronic bill presentment platform.

Breaking down B2B BNPL with Resolve’s Chris Tsai

Chris Tsai, co-founder and CEO at Resolve, joins us on this week’s Power of Payments podcast. He talks about how Resolve’s product compares to that of consumer BNPL providers, how macroeconomic challenges are affecting firms in the space, and where B2B BNPL is headed in the coming years.

LeafLink processes over $1 billion in wholesale cannabis payments

LeafLink, the biggest cannabis wholesale market in the world, has now powered transactions worth $1 billion through its cannabis payments solution. Around $5 billion worth of cannabis moves around on LeafLink's global wholesale platform annually.

How Wise bridges the gaps for banks’ cross-border payments

Traditional banks have long taken center stage for cross-border payments, but new challenges in a digital-first world leave much to be desired. Ryan Zagone, Head of Americas at Wise for Banks, talks about how Wise is helping banks adapt to a post-pandemic world.

‘Regulators don’t hate BNPL — they just want more consumer protection’: Citizens Pay’s Gaurav Sethi

Gaurav Sethi, chief strategy officer at Citizens Pay, joins us on this week’s Power of Payments podcast. He talks about how being a bank-owned BNPL provider differentiates Citizens Pay from competitors, how the current macroeconomic climate is impacting BNPL firms, and what increased regulation would look like for the sector.

‘You need to have a good answer to the question, how do you get to profitability?’ – Rapyd’s Eric Rosenthal

Eric Rosenthal, vice president of corporate development, strategy and partnerships at Rapyd, joins us on this week’s Power of Payments podcast.

He talks about how Rapyd caters to businesses of different sizes including major firms like Uber, what American companies can learn from payments firms in Latin America, Asia, and Europe, and how startups in the space should try to deal with the current downturn.

‘It’s new branding to what is a very classic industry’: Ramp’s Eric Glyman on B2B BNPL, and how their new offering is different

What's the secret sauce behind Ramp's doubling valuation and revenue growth amid a fintech downturn? Eric Glyman, co-founder and CEO of Ramp, spills the beans on his company strategies and what's in the offing.

Should returning to core competencies be the playbook for Dorsey’s Block?

Block's overall decreasing revenues in Q1 and Q2 have made analysts wonder if the firm has expanded too broadly, too quickly.

All things considered, Block is establishing a network while having a futuristic approach – where everything is integrated through Square in a two-sided closed loop, bridging Square’s products for consumers and merchants.

‘There’s a lot of heart in our business when you really understand our customers’ – Remitly’s Matt Oppenheimer

Matt Oppenheimer, co-founder and CEO of Remitly, joins us on this week’s Power of Payments podcast. He talks about the evolution of the remittance industry over the last decade, the changing needs of Remitly's customers, the potential role of crypto in remittances, and the future of global money movement.

Does lease-to-own provide a “recession-proof” alternative to BNPL?

Lease-to-own (LTO), a type of installment payment that has actually been around for decades, seems to be re-emerging as a potential solution for consumers seeking an alternative way to break up their purchases into manageable payments.

While BNPL has lately been criticized for leaving subprime consumers with mounting debt, proponents of LTO say it provides these consumers with flexible payment options without indebting them. Some are referring to it as “BNPL’s recession-proof cousin”.

Digital payments are making it “easier than ever” for young consumers to make bad financial decisions

A recent Banking and Payments Intelligence report by J.D. Power finds that while credit and debit cards continue to lead in overall use, digital alternatives like BNPL, mobile wallets and P2P payments are quickly rising in popularity, particularly among younger customers.

Yet, while this growth in digital transactions is undoubtedly making shopping more convenient, it’s also making it easier for consumers to spend beyond their means and make questionable financial decisions.

Balance’s Bar Geron on why B2B payments are “stuck in the stone age”

Bar Geron, co-founder and CEO of Israeli firm Balance, joins us on this week’s Power of Payments podcast. He talks about the importance of bringing B2B payments online, BNPL for business, as well as other B2C trends that are slowly being adopted in B2B transactions.

Meeting the growing demand for digital payments in the public sector

While digital payments are increasingly becoming table stakes for industries like retail, governments have been much slower to adopt digital payment technologies. With concerns ranging from budget and personnel resources to cybersecurity and compliance, governments have historically been hesitant to embrace the digitization of payments.

Jeff Kump, president of payments at CSG, shares his thoughts on why there is a growing need for digital payments in the public sector, and how public entities can incorporate them into their payments strategies.

Extend’s Andrew Jamison on virtual cards, spend management, and the future of corporate payments

Andrew Jamison, co-founder and CEO of Extend, joins us on this week's Power of Payments podcast. He shares why he founded Extend, what need it serves in the industry, and where he sees virtual cards and corporate payments headed in the coming years.

‘Consumers want brands that resonate with who they are’: Exploring the changing meaning of loyalty with Mastercard’s Kyle Clark

The meaning of customer loyalty is changing in the aftermath of the pandemic. Mastercard’s Kyle Clark says financial service providers need to adapt quickly in order to stay relevant.

Behind PayPal’s 4.5 million fraudulent accounts

PayPal recently disclosed that it has identified and removed 4.5 million illegitimate accounts on its platform. As fraud continues to dog the ecosystem, experts believe the core of the problem lies in digital identity-proofing.

Highlights from our recent coverage

Extend puts its foot on the gas as others retreat in the downturn

Spend management is on the up and up. We sat down with Extend’s CEO and co-founder, Andrew Jamison, to discuss his company’s growth, its partnership process, and how it’s faring through the economic downturn.

How AvidXchange is tapping into cross-border payments for the middle market

The middle market is one of the core areas of the US economy, but its B2B payments sector hasn't received adequate attention from financial institutions. Despite the launch of many B2B payments solutions, pain points continue to exist in the space – which means there is scope for improvement.

The Green Finance Podcast Ep. 16: What’s the environmental impact of payments?

In our journey of reducing our carbon footprint, it turns out that it’s not only what we buy that can make a difference – how we pay for things can play a part, too. Using alternative payment methods like ACH can help consumers lower their carbon footprint by generating zero carbon emissions.

What we’re reading

• From $1.5 billion to $0: Crypto payments platform Wyre shuts down (Blockworks)
• These payments companies are hiring, bucking the trend of tech layoffs (American Banker)
• How banks can win the digital wallets battleground (Electronic Payments International)
• Payments funding plummeted in 2022 (Payments Dive)
• The year in payments: from BNPL to FTX to the digital economy (PYMNTS)