Commerce Feed: Issue No. 10 – November 2021

Square’s High Growth Rate Decelerates

Digital payments company Square experienced significant growth driven by the pandemic: The need to deposit and spend dollars by consumers receiving stimulus checks helped the consumer cash application grow to 40 million consumers. While still high, growth slowdowns have been reported now that the government programs have ended.

DCA Insight:

Watch for new trends to accelerate the industry. The organization’s efforts to bring more merchants on board to accept digital payments will drive growth, as will acceptance of debit payments and split payments (i.e. via AfterPay, which Square in the process of acquiring) and supporting bitcoin. Strategies that help Square become a bigger part of the consumer’s shopping experience will take priority, and likely pay off.

Fintech Start-Up Plaid Enters Payments Space

One year after an antitrust suit blocked Plaid’s sale to Visa, the company is announcing another move into the payments business. The company, which makes software that lets banks and other fintechs plug into their user’s financial accounts, with permission to validate balances and other details, won’t be involved in moving money as part of this recent move.

DCA Insight:

The new program will use its software to help consumers and businesses more easily make digital payments funded by their bank accounts. Look for other payment processors and tech companies in the US, Canada and Europe to follow suit.

Credit Cards and Crypto Come Together

DCA member Mastercard and cryptocurrency company Bakkt Holdings Inc. have joined forces to allow consumers to make credit and debit card payments—and earn rewards—using bitcoin.

DCA Insight:

The partnership has significant potential: Big banks offering crypto cards powered by Bakkt, can potentially reach a large number of consumers. What remains to be seen is whether financial institutions are willing to make such a bold move, and whether consumer demand is high enough to make it worthwhile.

Loyalty Solution Thanks Again Partners with Pentadata 

DCA member Pentadata announced it has partnered with Thanks Again. The agreement enables Thanks Again to enhance its offering, an account-linked program that lets members automatically earn rewards when they shop, park, or dine at retailers in and around airports in North America.

DCA Insight:

Increasingly those in the digital commerce ecosystem are recognizing that data ownership belongs with the consumer and that the consumer should be the one to benefit from its use. We’re moving toward a new normal where data mining and screen scraping is being replaced by consumer permission-based data access and sharing, and anytime opt-outs.

Google Pay Joins Digital Commerce Alliance! 

VantageScore Joins Digital Commerce Alliance! 

Vive Plus, Eficasia & Iké Asistencia Join Digital Commerce Alliance! 

CardLinx Forum December Webinar

Data: The Fuel Transforming Customer Experiences

Wednesday, December 16th | 9am – 10am PST

With companies competing against each other for customer engagement, innovation and best data practices will be essential for success. Knowing what to do with the data you are gathering will be crucial for your success. In this session, we will cover the top 5 data innovations that will change the way you think about your customers in 2022.

Speakers | Jean Perez, Head of Data & Analytics – Collinson Valuedynamx

CardLinx Forum (a division of DCA) hosts a live, interactive webinar each month featuring speakers from some of the world’s most influential companies. They share insights on important and relevant topics for your business—including the impact of Covid-19 on consumer credit behavior, mobile wallet adoption, card-linking and lending trends. The webinar is always free to members and non-members are invited to attend at $99 per registration. Members and non-members are encouraged to register now as space is limited!