2014-01-17

Seven Leading Financial Technology Innovators Selected for FinTech Innovation Lab London
Artificial Intelligence Big Data systems and smooth smartphone bill payments are among the new innovations from seven FinTech entrepreneurs, selected to participate in this year’s FinTech Innovation Lab London. 
The Lab, which was originally launched by Accenture in 2012, is a collaboration between Accenture and leading financial institutions in London, supported by the Mayor of London, the City of London Corporation and the Technology Strategy Board.
Richard Lumb, Group CEO — Financial Services at Accenture said: “In the past nine months, the startups involved in the 2013 FinTech Innovation Lab London have collectively raised over $10 million in investment and have increased employees by 41 percent. The FinTech Innovation Lab London is modeled on a similar program that was co-founded by Accenture and the Partnership Fund for New York City, which has already proved highly successful in helping 18 young financial technology startups.
In 2013 True Office, which provides compliance training based on a mobile game platform, received a $3 million Series A Preferred round from Contour Venture Partners, Rho Ventures, and Partnership Fund for New York City.
The 2014 FinTech Innovation Lab London participants are: Erudine, FinGenius, Logical Glue, PhotoPay, PixelPin, Squirro and uTrade Solutions 
BitPay announces Beta Bitcoin Payroll API
BitPay, currently the world’s largest payment processor for virtual currencies, announces a beta release of their bitcoin payroll API for employers, which allows their W-2 employees to receive a portion of their net pay in bitcoin. For employers using the service, their individual employees can opt-in to receive a net payroll deduction paid in bitcoin, on a recurring basis each pay period. “For the longest time the hard question was ‘How do I buy bitcoin?’” says Tony Gallippi, co-founder and CEO of BitPay. “Now the answer is easy: ‘Ask your employer.’ 
BitPay developed the bitcoin payroll API for its own use at the request of its employees, and has been using it with their payroll provider for over six months.
BitPay is pleased to announce that they have 100% participation from their employees, meaning every BitPay employee receives some of their net pay in bitcoin. Four BitPay employees, including Gallippi, receive 100% of their net pay in bitcoin. “This also clarifies the tax question around bitcoin,” adds Bryan Krohn, BitPay’s CFO. “Since all payroll and withholding taxes are taken out first from the employee’s gross income, bitcoins can be sent from the net pay tax-free, and the employer’s gross income reporting to the IRS remains unchanged.”
BitPay also announces that it has surpassed 20,000 approved merchants using its service to accept bitcoin, and is adding new merchants at a pace of 1,000 per week.
Commonwealth Bank launches iPhone mobile payments
Commonwealth Bank, one of the largest financial institutions in Australia, has announced customers with Apple iPhones will now be able to pay for goods via its mobile application. Customers will be able to use the technology to make contactless payments of up to $89 by tapping the sticker against a payment terminal.
Zapp mobile m-payments and m-commerce gets boosts from five UK banks
Zapp’s mobile m-payment app will be offered by Five UK banking institutions, comprising of Santander, Nationwide, Metro Bank, HSBC and its first direct online subsidiary. The Zapp app, which also offers mobile m-commerce, loyalty, online and in-store transactions and functionality, will be added to the UK banks’ various smartphone and tablet applications. 
The banks signing up to Zapp join WorldPay, Optimal Payments, Realex and SagePay, acquirers and payment processors that are already committed to rolling out the scheme to merchants and customers in order to try and ensure widespread UK adoption of the mobile m-payment and m-commerce ecosystem. As Gilles Ubaghs, a senior services analyst with the Ovum consultancy, comments Zapp builds on Vocalink’s Faster Payments Service infrastructure and enables UK merchants and banks to bypass existing payment schemes like Visa and MasterCard.
Tweet of the Week
CurrencyTransfer are pumped and can’t wait for FinTech City – juicy schedule put together by @TheCEOAgenda @hotwirepr #congrats #fintech
— currencytransfer (@currencytransfr) January 16, 2014

The majority of iPhone mobile banking apps vulnerable to hackers
New Research published by IOActive has suggested that the majority of mobile banking applications for the iOS platform are full of flaws, making them vulnerable to hackers. Researcher Ariel Sanchez studied the security capabilities of 40 mobile apps created for use with iPhones and iPads. The researcher recommended mobile banking application developers tighten the security of transfer protocols for all collections made, as well as enforcing SSL certificate checks by the client application.
Kofax launches Mobile Capture Platform
Smart process applications provider Kofax, announced the availability of the Kofax Mobile Capture™ Platform, which dramatically transforms how businesses can extend capture capabilities to their mobile customers. The Company also launched two new frameworks for mobile bill pay and mobile check deposit apps, which are built using the platform and can be easily customized to meet an organization’s unique branding and other requirements. 
The new Kofax Mobile Capture Platform enables organizations to rapidly develop and deploy any number of mobile apps on a single platform that uses Kofax’s patented and market-leading image capture and perfection, real time data extraction and validation and analytics capabilities. Businesses that provide the best possible mobile user experience and better understand their customers naturally enjoy a competitive advantage. “An increasing number of businesses today are turning to mobile technology to better engage with customers while increasing productivity and profitability,” said Chris Marsh, Principal Analyst at Yankee Group.
Drew Hyatt, Senior ViceVice President of Mobile Applications at Kofax, stated, “Prior to the launch of the Kofax Mobile Capture Platform, banks and insurance organizations had limited options for mobility and were investing in unique, proprietary solutions for each individual use case while relying upon the related vendor to maintain and enhance those apps. By empowering businesses with tools that allow them to drive their own mobile development on a single platform, Kofax has blown away the early market limitations, opening up a world of new opportunities in mobile. Kofax’s perpetual license pricing model also is more cost effective than the per-click pricing prevalent before today.”
Best of the Web:
Starbucks’s Mobile Payment Transaction Volume Explodes To Over $270 Million
Starbucks CEO Howard Schultz announced during the company’s last earnings call that in-store transactions made with Starbucks’s mobile wallet accounted for 11% of Starbucks’s North American transaction volume in the third quarter of 2013.* Here are the key takeaways: During the third quarter, Starbucks’s mobile payment volume reached $272 million, according to a conservative BI Intelligence estimate. read more
Finextra Future Money presents: How to succeed as a fintech start-up
Finextra is inviting start-up companies in London to participate in the first of a series of breakfast roundtables ahead of the forthcoming Future Money conference, run in association with fintech accelerator space Level39. read more

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