Facebook taps banks, but for chatbots not purchase data like Google

Facebook taps banks, but for chatbots not purchase data like Google

Backlash swelled this morning after Facebook’s aspirations in financial services were blown out of proportion by a Wall Street Journal report that neglected how the social network already works with banks. Facebook spokesperson Elisabeth Diana tells TechCrunch it’s not asking for credit card transaction data from banks and it’s not interested in building a dedicated banking feature where you could interact with your accounts. It also says its work with banks isn’t to gather data to power ad targeting, or even personalize content such as which Marketplace products you see based on what you buy elsewhere.

Instead, Facebook already lets Citibank customers in Singapore connect their accounts so they can ping their bank’s Messenger chatbot to check their balance, report fraud or get customer service’s help if they’re locked out of their account without having to wait on hold on the phone. That chatbot integration, which has no humans on the other end to limit privacy risks, was announced last year and launched this March. Facebook works with PayPal in more than 40 countries to let users get receipts via Messenger for their purchases.

Expansions of these partnerships to more financial services providers could boost usage of Messenger by increasing its convenience — and make it more of a centralized utility akin to China’s WeChat. But Facebook’s relationships with banks in the current form aren’t likely to produce a steep change in ad targeting power that warrants significant heightening of its earning expectations. The reality of today’s news is out of step with the 3.5 percent share price climb triggered by the WSJ’s report.

“A recent Wall Street Journal story implies incorrectly that we are actively asking financial services companies for financial transaction data – this is not true. Like many online companies with commerce businesses, we partner with banks and credit card companies to offer services like customer chat or account management. Account linking enables people to receive real-time updates in Facebook Messenger where people can keep track of their transaction data like account balances, receipts, and shipping updates,” Diana told TechCrunch. “The idea is that messaging with a bank can be better than waiting on hold over the phone – and it’s completely opt-in. We’re not using this information beyond enabling these types of experiences – not for advertising or anything else. A critical part of these partnerships is keeping people’s information safe and secure.”

Diana says banks and credit card companies have also approached it about potential partnerships, not just the other way around as the WSJ reports. She says any features that come from those talks would be opt-in, rather than happening behind users’ backs. The spokesperson stressed these integrations would only be built if they could be privacy safe. For example, signing up to use the Citibank Messenger chatbot requires two-factor authentication through your phone.

But renewed interest in Facebook’s dealings with banks comes at a time when many are pointing to its poor track record with privacy following the Cambridge Analytica scandal, where people were duped into volunteering the personal info of them and their friends. Facebook hasn’t had a big traditional data breach where data was outright stolen, as has befallen LinkedIn, eBay, Yahoo [part of TechCrunch’s parent company] and others. But users are rightfully reluctant to see Facebook ingest any more of their sensitive data for fear it could leak or be misused.

Facebook has recently cracked down on the use of data brokers that suck in public and purchased data sets for ad targeting. It no longer lets data brokers upload Managed Custom Audience lists of user contact info or power Partner Categories for targeting ads based on interests. It also more adamantly demands that advertisers have the consent of users whose email addresses or phone numbers they upload for Custom Audience targeting, though Facebook does little to verify that consent and advertisers could still buy data sets from brokers and upload them themselves

Facebook’s statement today shows more scruples than Google, which last year struck ad measurement data deals with data brokers that have access to 70 percent of credit and debit card transactions in the U.S. That led to a formal complaint to the FTC from the Electronic Privacy Information Center. [Correction: Google tells us the deals are for ad measurement data, not ad targeting as we originally published. It only learns the annonymous aggregate purchase value, not what the items were bought, and the data is encrypted.]

Cambridge Analytica has brought on an overdue era of scrutiny regarding privacy and how internet giants use our data. Practices that were overlooked, accepted as industry standard or seen as just the way business gets done are coming under fire. Internet users aren’t likely to escape ads, and some would rather have those they see be relevant thanks to deep targeting data. But the combination of our offline purchase behavior with our online identities seems to trigger uproar absent from sites using cookies to track our web browsing and buying.

Facebook’s probably better off backing away from anything that involves sensitive data like checking account balances until Cambridge Analytica blows over and it’s proven its newfound sense of responsibility translates into a safer social networking. But at least for now, it’s not slurping up our banking data wholesale.

Source: Mobile – Techcruch

Venmo is discontinuing web support for payments and more

Venmo is discontinuing web support for payments and more

PayPal-owned, peer-to-peer payments app Venmo is ending web support for its service, the company announced in an email to users. The changes, which are beginning to roll out now, will see the Venmo.com website phasing out support for making payments and charging users. In time, users will see even less functionality on the website, the company says.

The message to users was quietly shared in the body of Venmo’s monthly transaction history email. It reads as follows:

NOTICE: Venmo has decided to phase out some of the functionality on the Venmo.com website over the coming months. We are beginning to discontinue the ability to pay and charge someone on the Venmo.com website, and over time, you may see less functionality on the website – this is just the start. We therefore have updated our user agreement to reflect that the use of Venmo on the Venmo.com website may be limited.

The decision represents a notable shift in product direction for Venmo. Though best known as a mobile payments app, the service has also been available online, similar to PayPal, for many years.

The Venmo website today allows users to sign in and view their various transaction feeds, including public transactions, those from friends, and personal transactions. You can also charge friends and submit payments from the website, send payment reminders, like and comment on transactions, add friends, edit your profile, and more.

Some users may already be impacted by the changes, and will now see a message alerting them to the fact that charging friends and making payments can only be done in the Venmo app from the App Store or Google Play.

It’s not entirely surprising to see Venmo drop web support. As a PayPal-owned property after its acquisition by Braintree which later brought it to PayPal, there’s always been a lot of overlap between Venmo and its parent company, in terms of peer-to-peer payments.

Venmo had grown in popularity for its simple, social network-inspired design and its less burdensome fee structure among a younger crowd. This made it an appealing way for PayPal to gain market share with a different demographic.

It’s also cheaper, which people like. PayPal doesn’t charge for money transfers from a bank account or PayPal balance, but does charge 2.9 percent plus a $0.30 fixed fee on payments from a credit or debit card in the U.S. Venmo, meanwhile, charges a fee of 3 percent for credit card payments, but makes debit card payments free. That’s appealing to millennials in particular, many of whom have ditched credit cards entirely, and are careful about their spending.

Plus, as a mobile-first application, Venmo was offering a more modern solution for mobile payments, at a time when PayPal’s app was looking a bit long in the tooth. (PayPal has since redesigned its mobile app experience to catch up.)

Another factor in Venmo’s decision could be that, more recently, it began facing competition from newcomer Zelle, the bank-backed mobile payments here in the U.S. which is forecast to outpace Venmo on users sometime this year, with 27.4 million users to Venmo’s 22.9 million. In light of that threat, Venmo may have wanted to consolidate its resources on its primary product – the mobile app.

Not everyone is happy about Venmo’s changes, of course. After all, even if the Venmo website wasn’t heavily used, it was used by some who will certainly miss it.

Reached for comment, Venmo explained the decision to phase out the website functionality stems from how it sees its product being used.

A Venmo spokesperson told TechCrunch:

Venmo continuously evaluates our products and services to ensure we are delivering our users the best experience. We have decided to begin to discontinue the ability to pay and charge someone on the Venmo.com website. Most of our users pay and request money using the Venmo app, so we’re focusing our efforts there. Users can continue to use the mobile app for their pay and charge transactions and can still use the website for cashing out Venmo balances, settings and statements.

The company declined to clarify what other functionality may be removed from the website over time, but noted that using Venmo to pay authorized merchants is unaffected.

Source: Mobile – Techcruch

Latin America’s Movile is quietly building a mobile empire

Latin America’s Movile is quietly building a mobile empire

By 2020, Brazilian mobile giant, Movile, wants to improve the lives of more than one billion people through its apps. The company began its mission in 1998 selling gaming, news and SMS messaging services to mobile operators in Brazil. After receiving its first investment from South African-based global investor Naspers 10 years ago, Movile grew into one of the largest and most successful mobile companies in Latin America, with more than 150 million monthly active users of its apps and estimated revenues over $240 million.

Movile’s app, PlayKids, propelled the company to the global stage. A platform that offers educational products and content for children, PlayKids in 2014 reached more than 6 million downloads within a year of launching, and 5 million active users per month.

From there, Movile turned its attention to an unprecedented strategy of mergers and acquisitions in Latin America. The company’s expansion strategy included investments in more than 20 other mobile companies, such as iFood and Sympla, two of the most prominent players in Latin America’s mobile space today.

Here’s a look at how Movile went from local success story in Brazil to one of the largest mobile companies in Latin America — and its next steps for mobile success worldwide.

The PlayKids launching pad

By 2012, Movile was the largest mobile services company in Brazil. With more than 150 employees, the company established its core offerings in mobile payments, mobile commerce and other B2B mobile solutions. Movile’s teams successfully opened offices in Mexico, Colombia, Argentina and Venezuela, which they achieved through the acquisition of another mobile company with a similar business model, CycleLogic. But it wasn’t until the launch of PlayKids in 2013 that one of Movile’s creations landed in the hands of millions of users around the world.

By June 2014, PlayKids had users in more than 30 countries and was one of the top-grossing children’s apps of all time. The success of PlayKids allowed Movile to build key relationships with tech firms in Silicon Valley, including Apple and Google, for the distribution of the company’s apps, and Facebook for marketing them.

Also by this time, Movile had more than 700 employees working from 11 offices in six countries, and began the next chapter in their story: ramping up their investments in other mobile companies. Movile used this strategy not only to continue its expansion across the region, but also to fend off any foreign competition eyeing Latin America’s increasingly lucrative mobile market. By 2014-2015, Latin America was the fastest-growing smartphone market in the world with 109.5 million smartphone units sold in the region.

Becoming Latin America’s mobile powerhouse

2014 marked a big year for Movile. The company invested $1.6 million into online food delivery startup iFood in the past, but an additional $2.6 million investment in 2014 led to the purchase of an iFood competitor, Central Delivery. Movile’s investments in iFood and its buy-out of the competition took the iFood app from 25,000 orders per month to more than one million orders per month.

Movile’s goal was simple: take a fast-moving startup and help it grow beyond what the founding team ever thought possible.

The insights and data that Movile gathered during its strategic venture capital investments in iFood were critical. During this time, Movile built the foundation for its investments that followed shortly after, and learned how to make them a success. With each new investment, Movile’s goal was simple: take a fast-moving startup and help it grow beyond what the founding team ever thought possible by infusing cash, human capital and any technical resources or expertise that the startup could possibly need.

Movile quickly solidified its M&A strategy, its processes and its position as a leader in Latin America’s mobile market. To continue financing its growth through acquisitions, Movile raised another $55 million from Innova Capital, Jorge Paulo Lemann and FINEP in its Series D round in 2014. This new round of financing led to even more acquisitions, including the acquisition of Rapiddo, ChefTime and FreshTime. It also allowed the company to make additional investments in LBS Local, the owners of Apontador, MapLink, Cinepapaya and TruckPad.

Bundling an empire

In 2015, after a handful of investments in food-related startups, Movile’s appetite for the food and delivery space continued to grow. Naspers and Innova Capital infused another $40 million (Series E) into Movile in 2016. Movile then boosted its iFood and Just EAT platforms with another $50 million. With access to all of Movile’s resources, iFood quickly rose as a leader in online food delivery in Latin America, with 6.2 million monthly orders and a growing presence in multiple countries, including Brazil, Mexico, Colombia and Argentina.

Movile’s venture capital model became so successful that iFood replicated the same model themselves. iFood took part in more than 10 mergers and acquisitions, including the acquisition of SpoonRocket, a San Francisco-based online food delivery service. iFood acquired SpoonRocket’s technology to help it expand its reach across Latin America.

In 2016, Movile’s Rappido app acquired on-demand courier service 99Motos, and then Movile made investments in Sympla (a DIY-ticketing platform for events), while raising another $40 million (Series F) from Naspers and Innova Capital. By 2017, Movile raised an additional $53 million (Series G) from Naspers and Innova Capital, bringing Naspers’ share of Movile to 70 percent.

On the road to one billion

With no shortage of cash, Movile now has plans to put more than half of its latest $53 million Naspers investment into Rapiddo Marketplace. Movile believes they can transform the Rapiddo Marketplace into a one-stop-shop for a variety of consumer transactions ranging from food delivery and event tickets to refilling mobile credit and hailing rides. Included in this ambitious plan is a payments platform similar to PayPal called Zoop, which handles all digital payments and makes the Rapiddo Marketplace a single platform that can integrate many — if not all — of Movile’s other applications.

If a path does not yet exist, Movile will simply build, acquire or bundle its way to make it happen.

Movile’s mission is no easy feat; however, if the company is to achieve its goal of touching the lives of one billion people through its apps, there may never be a better time. Movile’s all-in-one mobile platform concept is reminiscent of China’s Tencent, which established a number of successful paid services based on its applications. Tencent is currently worth half a trillion dollars and rising, with investments from Naspers and earnings of almost $22 billion last year.

Tencent allows merchants in China to sell their products and receive payments through WeChat, China’s largest mobile messaging app used by more than one billion people. Using an application with widespread adoption and popularity, Tencent is able to continuously add layers and layers of services, precisely what Movile plans to do now with its mobile companies in Latin America.

Movile believes it can be just as successful as Tencent because the Latin American mobile market strikes a number of similarities with Southeast Asian countries. On the other hand, skeptics believe that since Latin America lacks a WeChat-like application to unify the region, it will be difficult to achieve the same level of success. But if we’ve learned anything from Movile, it’s that if a path does not yet exist, Movile will simply build, acquire or bundle its way to make it happen.

Wavy, Movile’s latest endeavor, could achieve this. The business, which bundles Movile’s 400+ content partner companies, 100 million active user base and 40 Latin American mobile carrier businesses, is already one of the largest global players in this space based on sheer numbers alone. The Wavy portfolio incorporates a wide range of products, including educational content and apps, B2B messaging services such as chatbots, SMS, RCS and voice messaging, as well as partnerships with companies in the gaming, bots and apps space.

The race is on among global mobile platform providers and device manufacturers to become the first to offer a total mobile user experience. However, there are very few companies that will ever be able to replicate the range of products and services Movile has developed, making it one of the most remarkable mobile success stories of our time — and one that’s not over yet.

Source: Mobile – Techcruch