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Required Fintech Reading: Feb 14-20

Big Banks Deliver Mobile Shopping Features
Sicily Axton shares the latest efforts of the big banks to engage with consumer lifestyles.

"The five biggest retail banks—recognized by the brand names U.S. Bank, Chase, Bank of America, Citi and Wells Fargo—control over 50 percent of total assets in the U.S. and are driving the mobile banking agenda. In a race to meet the mobile transaction needs of their customers, these banks have all conquered the most basic services that soon almost all banks will have—mobile banking, mobile bill pay, mobile deposit, ATM and branch locators and P2P payments. Now in phase two of mobile banking, these banks are in an arms race to further engage with customers’ mobile lifestyles, particularly by helping people save money when they shop."


Treasury announces partnership with digital wallet providers PayPal, Dwolla for online payments
This press release from the Bureau of Fiscal Service makes a big announcement for the world of fintech:

"The U.S. Department of the Treasury’s Bureau of the Fiscal Service (Fiscal Service) today announced that Pay.gov, the government’s secure web based collection portal for payments to federal agencies, now offers both PayPal and Dwolla as payment options. This implementation is part of an ongoing effort to move away from paper-based processes to more efficient and secure electronic transactions for the Federal Government."


What Is the Pay.gov Deal Really Worth to PayPal & Dwolla?
Bank Innovation analyzes the partnership mentioned above.

"Dwolla and PayPal could each process 8.35 million transactions with a face value of $9.2 billion. Now, here is where things diverge. Dwolla states that it charges $0.25 per transaction, assuming the transaction is for more than $10, otherwise Dwolla charges nothing. PayPal, meanwhile, charges $0.30 per transaction and 2.9% of the face value of the transaction. Therefore, according to my math, Dwolla stands to generate $2.1 million of revenue from Pay.gov, while PayPal could generate … wait for it … $268.9 million."


A 29-year-old invented a painless way to save money, and Google's buying into it
Business Insider tells the story of Ethan Bloch, who created the financial app, Digit.

"Bloch created Digit, an app that automatically saves money from your checking account without your even having to think about it. He got $2.5 million in seed funding from Baseline Ventures, Google Ventures, and a handful of other firms last December, and the app opens to the public Thursday."


Mobile Money 2.0: Interoperable, Bank-led and More Useful
Dan Glessner shows how mobile banking is (and should be) evolving.

"Mobile Money version 2.0 should be even more useful for consumers.  That is, there should be more possible transaction types, including purchasing items in-store, online, cross-border remittances, Government-to-Person (G2P), getting money out at POS terminals or ATMs, etc. beyond v1.0 use cases."


Source: http://bit.ly/1w5IptY