PayPal

UnitedMasters releases iPhone app for DIY cross-service music distribution

Posted by | 20th Century Fox, Apple, Apps, AT&T, cloud applications, cloud storage, computing, Dropbox, iCloud, iOS, iPhone, Media, Mobile, national basketball association, NBA, operating systems, PayPal, president, Software, Startups, steve stoute, TC, tidal, UnitedMasters | No Comments

Alphabet-backed UnitedMasters, the music label distribution startup and record label alternative that offers artists 100 percent ownership of everything they create, launched its iPhone app today.

The iPhone app works like the service they used to offer only via the web, giving artists the chance to upload their own tracks (from iCloud, Dropbox or directly from text messages), then distribute them to a full range of streaming music platforms, including Spotify, Apple Music, Tidal and more. In exchange for this distribution, as well as analytics on how your music is performing, UnitedMasters takes a 10% share on revenue generated by tracks it distributes, but artists retain full ownership of the content they create.

UnitedMasters also works with brand partners, including Bose, the NBA and AT&T, to place tracks in marketing use across the brand’s properties and distributed content. Music creators are paid out via PayPal once they connect their accounts, and they can also tie-in their social accounts for connecting their overall online presence with their music.

UnitedMasters

Using the app, artists can create entire releases by uploading not only music tracks but also high-quality cover art, and by entering information like whether any producers participated in the music creation, and whether the tracks contain any explicit lyrics. You can also specific an exact desired release date, and UnitedMasters will do its best to distribute across services on that day, pending content approvals.

UnitedMasters was founded by former Interscope Records president Steve Stoute, and also has funding from Andreessen Horwitz and 20th Century Fox. It’s aiming to serve a new generation of artists who are disenfranchised by the traditional label model, but seeking distribution through the services where listeners actually spend their time, and using the iPhone as manage the entire process definitely fits with serving that customer base.

Powered by WPeMatico

Higher Ground Labs is betting tech can help sway the 2020 elections for Democrats

Posted by | america, Barack Obama, Betsy Hoover, Brad Parscale, Brandwatch, breitbart news, Cambridge Analytica, campaign manager, Chris Sacca, Civis Analytics, communication tools, computing, CRM, democratic party, donald j trump, Facebook, Forbes, Google, greylock, Higher Ground Labs, Hillary Clinton, Insight Venture Partners, LinkedIn, mitt romney, Mobile, ngp van, online tools, paris, PayPal, president, presidential election, Reid Hoffman, republican national committee, republican party, republicans, Ron Conway, Shomik Dutta, social media, social media tools, Software, sv angel, TC, technology, Uber | No Comments

When Shomik Dutta and Betsy Hoover first met in 2007, he was coordinating fundraising and get-out-the-vote efforts for Barack Obama’s first presidential campaign and she was a deputy field director for the campaign.

Over the next two election cycles the two would become part of an organizing and fundraising team that transformed the business of politics through its use of technology — supposedly laying the groundwork for years of Democratic dominance in organizing, fundraising, polling and grassroots advocacy.

Then came Donald J. Trump and the 2016 election.

For both Dutta and Hoover, the 2016 outcome was a wake-up call against complacency. What had worked for the Democratic party in 2008 and 2012 wasn’t going to be effective in future election cycles, so they created the investment firm Higher Ground Labs to provide financing and a launching pad for new companies serving Democratic campaigns and progressive organizations.

As the political world shifts from analog to digital, we need a lot more tools to capture that spend,” says Dutta. “Democrats are spending on average 70 cents of every dollar raised on television ads. We are addicted to old ways of campaigning. If we want to activate and engage an enduring majority of voters we have to go where they are (and that’s increasingly online) and we have to adapt to be able to have these conversations wherever they are.”

Social media and the rise of “direct to consumer” politics

While the Obama campaign effectively used the internet as a mobilization tool in its two campaigns, the lessons of social media and mobile technologies that offer a “direct-to-consumer” politics circumventing traditional norms have, in the ensuing years, been harnessed most effectively by conservative organizations, according to some scholars and activists.

“The internet is a tool and in that sense it’s neutral, but just like other communication tools from the past, people with more power, with more resources, with more organization, have been able to take advantage of it,” Jen Schradie, an assistant professor at the Observatoire sociologique du changement at Sciences Po in Paris, told Vox in an interview earlier this month.

Schradie is a scholar whose recent book, “The Revolution That Wasn’t,contends that the internet’s early application as a progressive organizing tool has been overtaken by more conservative elements. “The idea of neutrality seems more true of the internet because the costs of distributing information are dramatically lower than with something like television or radio or other communication tools,” she said. “However, to make full use of the internet, you still need substantial resources and time and motivation. The people who can afford to do this, who can fund the right digital strategy, create a major imbalance in their favor.”

Schradie contends that a web of privately funded think tanks, media organizations, talk radio and — increasingly — mobile applications have woven a conservative stitch into the fabric of social media. The medium’s own tendency to promote polarizing and fringe viewpoints also served to amplify the views of pundits who were previously believed to be political outliers.

Essentially, these sites have enabled commentators and personalities to create a patchwork of “grassroots” organizations and media operations dedicated to reaching an audience receptive to their particular political message that’s funded by billionaire donors and apolitical corporate ad dollars.

Then there’s the technology companies, like Cambridge Analytica, which improperly used access to Facebook data for targeting purposes — also financed by these same billionaires.

“The last six years have witnessed millions and millions of dollars of private Koch money and Mercer money that have gone to pretty sophisticated data and media efforts to advance the Republican agenda,” says Dutta. “I want to even the scale.”

Dutta is referring to Charles and David Koch and Robert Mercer, the scions and founder (respectively) of two family dynasties worth billions. The Koch brothers support a web of political advocacy groups, while Mercer and his daughter were large backers of Breitbart News and Cambridge Analytica, two organizations that arguably provided much of the policy underpinnings and online political machinery for the Trump presidential campaign.

But there’s also the simple fact that Donald Trump’s digital strategy director, Brad Parscale, was able to effectively and inexpensively leverage the social media tools and data troves amassed by the Republican National Committee that were already available to the candidate who won the Republican primary. In fact, in the wake of Romney’s loss, Republicans spent years building up profiles of 200 million Americans for targeted messaging in the 2016 election.

“Who controls Facebook controls the 2016 election,” Parscale said during a speaking engagement at the Romanian Academy of Sciences, according to a report in Forbes.

Parscale, now the campaign manager for the president’s 2020 reelection campaign recalled, “These guys from Facebook walked into my office and said: ‘we have a beta … it’s a new onboarding tool … you can onboard audiences straight into Facebook and we will match them to their Facebook accounts,’ ” according to Forbes .

During the 2016 campaign, Hillary Clinton’s team made 66,000 visual ads, according to Parscale, while the Trump campaign made 5.9 million ads by leveraging social media networks and the language of memes. And in the run-up to the 2020 election, Parscale intends to go back to the same well. The Trump campaign has already spent more than $5 million on Facebook ads in the current election cycle, according to The New York Times outspending every single Democratic candidate in the field and roughly all of the Democrats combined.

Reaching higher ground

Dutta and Hoover are working to offset this movement with investments of their own. Back in 2017, the two launched Higher Ground Labs, an early-stage company accelerator and investment firm dedicated to financing technology companies that could support progressive causes.

The firm has $15 million committed from investors, including Reid Hoffman, the co-founder of LinkedIn and a partner at Greylock; Ron Conway, the founder of SV Angel and an early backer of Google, Facebook and Twitter; Chris Sacca, an early investor in Uber; and Elizabeth Cutler, the founder of SoulCycle. Already, Higher Ground has invested in more than 30 companies focused on services like advocacy outreach, polling and campaign organizing — among others. 

Screen Shot 2019 07 01 at 5.36.26 AM

The latest cohort of companies to receive backing Higher Ground Labs

“It is vitally important that Democrats learn to do their campaigns online,” says Dutta. “The way you recruit volunteers; the way you poll sentiment; the way you target and mobilize voters has to be done with online tools and has to improve in the progressive movement and that’s the job of Higher Ground Labs to fix.”

For-profit companies have a critical role to play in election organizing and mobilization, Dutta says. Thanks to government regulation, only private companies are allowed to trade data across organizations and causes (provided they do it at fair market value). That means advocacy groups, unions and others can tap the information these companies collect — for a fee.

The Democratic Party already has one highly valued private company that it uses for its technology services. Formed from the merger of NGP Software and Voter Activation Network, two companies that got their start in the late 1990s and early 2000s, NGP VAN is the largest software and technology services provider for Democratic campaigns. It’s also a highly valued company, which received roughly $100 million in financing last year from the private equity firm Insight Venture Partners, according to people familiar with the investment. Terms of the deal were not disclosed.

“Our vision has been to build a platform that would break down the painful data silos that exist in the campaigns and nonprofit space, and to offer truly best-in-class digital, fundraising and organizing features that could serve both the largest and the smallest nonprofits and campaigns, all with one unified CRM,” wrote Stu Trevelyan, the chief executive of NGP VAN + EveryAction, in an August blogpost announcing the investment. “We’re so excited that others, like our new partners at Insight, share that vision, and we can’t wait to continue innovating and growing together in the coming years.”

Can startups lead the way?

Even as private equity dollars boost the firepower of organizations like NGP VAN, venture capitalists are financing several companies from the Higher Ground Labs portfolio.

Civis Analytics, a startup founded by the former chief analytics officer of Barack Obama’s 2012 reelection campaign, raised $22 million from outside investors, and counts Higher Ground Labs among its backers. Qriously, another Higher Ground Labs portfolio company, was acquired by Brandwatch, as was GroundBase, a messaging platform acquired by the nonprofit progressive advocacy organization ACRONYM.

Other companies in the portfolio are also attracting serious attention from investors. Standouts like Civis Analytics and Hustle, which raised $30 million last May, show that investors are buying into the proposition that these companies can build lasting businesses serving Democratic and progressive political campaigns and corporate businesses that would also like to rally employees or personalize a marketing pitch to customers.

These are companies like Change Research, an earlier-stage company that just launched from Higher Ground Labs accelerator last year. That company, founded by Mike Greenfield, a serial Silicon Valley entrepreneur who was the first data scientist working on the problem of fraud detection at PayPal, and Pat Reilly, a communications professional who worked with state and local Democratic politicians, is slashing the cost of political polling.

“I wanted to do something for American democracy to try and improve the state of things,” Greenfield said in an interview last year.

For Greenfield, that meant increasing access to polling information. He cited the test case of a Kansas special election in a district that Donald Trump had won by 27 points. Using his own proprietary polling data, Greenfield predicted that the Democratic challenger, James Thompson, would pose a significant threat to his Republican opponent, Mike Estes.

Estes went on to a 7% victory at the ballot, but Thompson’s campaign did not have access to polling data that could have helped inform his messaging and — potentially — sway the election, said Greenfield.

“Public opinion is used to ween out who can be most successful based on how much money they’re able to raise for a poll,” says Reilly. It’s another way that electoral politics is skewed in favor of the people with disposable income to spend what is a not-insignificant amount of money on campaigns.

Polls alone can cost between $20,000 to $30,000 — and Change Research has been able to cut that by 80% to 90%, according to the company’s founders.

“It’s safe to say that most of the world was stunned by the outcome [of the presidential election] because most polls predicted the opposite,” says Greenfield. “Being a good American and as a parent of a 10-year-old and a 12-year-old, providing forward-thinking candidates and causes with the kind of insight they needed to win up and down the ballot could not only be a good business, but really help us save our democracy.”

Change Research isn’t just polling for politicians. Last year, the company conducted roughly 500 polls for political candidates and advocacy groups.

“The way that I’ve described Change Research to investors is that we want to simultaneously move the world in a better direction and having a positive impact while building a substantial business,” says Greenfield. “We’re only going to work with candidates and causes that we’re aligned with.”

Being exclusively focused on progressive causes isn’t the liability that many in the broader business community would think, says Dutta. Many Democratic organizations won’t work with companies that sell services to both sides of the aisle.

For Higher Ground Labs, a stipulation for receiving their money is a commitment not to work with any Republican candidate. Corporations are okay, but conservative causes and organizations are forbidden.

“We’re in a moment of existential crisis in America and this Republican party is deeply toxic to the health and future of our country,” says Dutta. “The only path out of this mess is to vote Republicans out of office and to do that we need to make it easier for good candidates to run for office and to engage a broader electorate into voting regularly.”

Powered by WPeMatico

Facebook announces Libra cryptocurrency: All you need to know

Posted by | Anchorage, Andreessen Horowitz, Apps, blockchain, coinbase, cryptocurrency, Developer, eBay, eCommerce, Facebook, Farfetch, Finance, funding, Libra Association, Libra Cryptocurrency, Lyft, Mobile, Move coding language, payments, PayPal, Policy, privacy, Ribbit Capital, Social, Spotify, stablecoin, stripe, TC, Thrive Capital, Uber, Union Square Ventures, visa | No Comments

Facebook has finally revealed the details of its cryptocurrency, Libra, which will let you buy things or send money to people with nearly zero fees. You’ll pseudonymously buy or cash out your Libra online or at local exchange points like grocery stores, and spend it using interoperable third-party wallet apps or Facebook’s own Calibra wallet that will be built into WhatsApp, Messenger and its own app. Today Facebook released its white paper explaining Libra and its testnet for working out the kinks of its blockchain system before a public launch in the first half of 2020.

Facebook won’t fully control Libra, but instead get just a single vote in its governance like other founding members of the Libra Association, including Visa, Uber and Andreessen Horowitz, which have invested at least $10 million each into the project’s operations. The association will promote the open-sourced Libra Blockchain and developer platform with its own Move programming language, plus sign up businesses to accept Libra for payment and even give customers discounts or rewards.

Facebook is launching a subsidiary company also called Calibra that handles its crypto dealings and protects users’ privacy by never mingling your Libra payments with your Facebook data so it can’t be used for ad targeting. Your real identity won’t be tied to your publicly visible transactions. But Facebook/Calibra and other founding members of the Libra Association will earn interest on the money users cash in that is held in reserve to keep the value of Libra stable.

Facebook’s audacious bid to create a global digital currency that promotes financial inclusion for the unbanked actually has more privacy and decentralization built in than many expected. Instead of trying to dominate Libra’s future or squeeze tons of cash out of it immediately, Facebook is instead playing the long-game by pulling payments into its online domain. Facebook’s VP of blockchain, David Marcus, explained the company’s motive and the tie-in with its core revenue source during a briefing at San Francisco’s historic Mint building. “If more commerce happens, then more small businesses will sell more on and off platform, and they’ll want to buy more ads on the platform so it will be good for our ads business.”

The risk and reward of building the new PayPal

In cryptocurrencies, Facebook saw both a threat and an opportunity. They held the promise of disrupting how things are bought and sold by eliminating transaction fees common with credit cards. That comes dangerously close to Facebook’s ad business that influences what is bought and sold. If a competitor like Google or an upstart built a popular coin and could monitor the transactions, they’d learn what people buy and could muscle in on the billions spent on Facebook marketing. Meanwhile, the 1.7 billion people who lack a bank account might choose whoever offers them a financial services alternative as their online identity provider too. That’s another thing Facebook wants to be.

Yet existing cryptocurrencies like Bitcoin and Ethereum weren’t properly engineered to scale to be a medium of exchange. Their unanchored price was susceptible to huge and unpredictable swings, making it tough for merchants to accept as payment. And cryptocurrencies miss out on much of their potential beyond speculation unless there are enough places that will take them instead of dollars, and the experience of buying and spending them is easy enough for a mainstream audience. But with Facebook’s relationship with 7 million advertisers and 90 million small businesses plus its user experience prowess, it was well-poised to tackle this juggernaut of a problem.

Now Facebook wants to make Libra the evolution of PayPal . It’s hoping Libra will become simpler to set up, more ubiquitous as a payment method, more efficient with fewer fees, more accessible to the unbanked, more flexible thanks to developers and more long-lasting through decentralization.

“Success will mean that a person working abroad has a fast and simple way to send money to family back home, and a college student can pay their rent as easily as they can buy a coffee,” Facebook writes in its Libra documentation. That would be a big improvement on today, when you’re stuck paying rent in insecure checks while exploitative remittance services charge an average of 7% to send money abroad, taking $50 billion from users annually. Libra could also power tiny microtransactions worth just a few cents that are infeasible with credit card fees attached, or replace your pre-paid transit pass.

…Or it could be globally ignored by consumers who see it as too much hassle for too little reward, or too unfamiliar and limited in use to pull them into the modern financial landscape. Facebook has built a reputation for over-engineered, underused products. It will need all the help it can get if wants to replace what’s already in our pockets.

How does Libra work?

By now you know the basics of Libra. Cash in a local currency, get Libra, spend them like dollars without big transaction fees or your real name attached, cash them out whenever you want. Feel free to stop reading and share this article if that’s all you care about. But the underlying technology, the association that governs it, the wallets you’ll use and the way payments work all have a huge amount of fascinating detail to them. Facebook has released more than 100 pages of documentation on Libra and Calibra, and we’ve pulled out the most important facts. Let’s dive in.

The Libra Association — crypto’s new oligarchy

Facebook knew people wouldn’t trust it to wholly steer the cryptocurrency they use, and it also wanted help to spur adoption. So the social network recruited the founding members of the Libra Association, a not-for-profit which oversees the development of the token, the reserve of real-world assets that gives it value and the governance rules of the blockchain. “If we were controlling it, very few people would want to jump on and make it theirs,” says Marcus.

Each founding member paid a minimum of $10 million to join and optionally become a validator node operator (more on that later), gain one vote in the Libra Association council and be entitled to a share (proportionate to their investment) of the dividends from interest earned on the Libra reserve into which users pay fiat currency to receive Libra.

The 28 soon-to-be founding members of the association and their industries, previously reported by The Block’s Frank Chaparro, include:

  • Payments: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa
  • Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, Mercado Pago, Spotify AB, Uber Technologies, Inc.
  • Telecommunications: Iliad, Vodafone Group
  • Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited
  • Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures
  • Nonprofit and multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking

Facebook says it hopes to reach 100 founding members before the official Libra launch and it’s open to anyone that meets the requirements, including direct competitors like Google or Twitter. The Libra Association is based in Geneva, Switzerland and will meet biannually. The country was chosen for its neutral status and strong support for financial innovation including blockchain technology.

Libra governance — who gets a vote

To join the association, members must have a half rack of server space, a 100Mbps or above dedicated internet connection, a full-time site reliability engineer and enterprise-grade security. Businesses must hit two of three thresholds of a $1 billion USD market value or $500 million in customer balances, reach 20 million people a year and/or be recognized as a top 100 industry leader by a group like Interbrand Global or the S&P.

Crypto-focused investors must have more than $1 billion in assets under management, while Blockchain businesses must have been in business for a year, have enterprise-grade security and privacy and custody or staking greater than $100 million in assets. And only up to one-third of founding members can by crypto-related businesses or individually invited exceptions. Facebook also accepts research organizations like universities, and nonprofits fulfilling three of four qualities, including working on financial inclusion for more than five years, multi-national reach to lots of users, a top 100 designation by Charity Navigator or something like it and/or $50 million in budget.

The Libra Association will be responsible for recruiting more founding members to act as validator nodes for the blockchain, fundraising to jump-start the ecosystem, designing incentive programs to reward early adopters and doling out social impact grants. A council with a representative from each member will help choose the association’s managing director, who will appoint an executive team and elect a board of five to 19 top representatives.

Each member, including Facebook/Calibra, will only get up to one vote or 1% of the total vote (whichever is larger) in the Libra Association council. This provides a level of decentralization that protects against Facebook or any other player hijacking Libra for its own gain. By avoiding sole ownership and dominion over Libra, Facebook could avoid extra scrutiny from regulators who are already investigating it for a sea of privacy abuses as well as potentially anti-competitive behavior. In an attempt to preempt criticism from lawmakers, the Libra Association writes, “We welcome public inquiry and accountability. We are committed to a dialogue with regulators and policymakers. We share policymakers’ interest in the ongoing stability of national currencies.”

The Libra currency — a stablecoin

A Libra is a unit of the Libra cryptocurrency that’s represented by a three wavy horizontal line unicode character ≋ like the dollar is represented by $. The value of a Libra is meant to stay largely stable, so it’s a good medium of exchange, as merchants can be confident they won’t be paid a Libra today that’s then worth less tomorrow. The Libra’s value is tied to a basket of bank deposits and short-term government securities for a slew of historically stable international currencies, including the dollar, pound, euro, Swiss franc and yen. The Libra Association maintains this basket of assets and can change the balance of its composition if necessary to offset major price fluctuations in any one foreign currency so that the value of a Libra stays consistent.

The name Libra comes from the word for a Roman unit of weight measure. It’s trying to invoke a sense of financial freedom by playing on the French stem “Lib,” meaning free.

The Libra Association is still hammering out the exact start value for the Libra, but it’s meant to be somewhere close to the value of a dollar, euro or pound so it’s easy to conceptualize. That way, a gallon of milk in the U.S. might cost 3 to 4 Libra, similar but not exactly the same as with dollars.

The idea is that you’ll cash in some money and keep a balance of Libra that you can spend at accepting merchants and online services. You’ll be able to trade in your local currency for Libra and vice versa through certain wallet apps, including Facebook’s Calibra, third-party wallet apps and local resellers like convenience or grocery stores where people already go to top-up their mobile data plan.

The Libra Reserve — one for one

Each time someone cashes in a dollar or their respective local currency, that money goes into the Libra Reserve and an equivalent value of Libra is minted and doled out to that person. If someone cashes out from the Libra Association, the Libra they give back are destroyed/burned and they receive the equivalent value in their local currency back. That means there’s always 100% of the value of the Libra in circulation, collateralized with real-world assets in the Libra Reserve. It never runs fractional. And unliked “pegged” stable coins that are tied to a single currency like the USD, Libra maintains its own value — though that should cash out to roughly the same amount of a given currency over time.

When Libra Association members join and pay their $10 million minimum, they receive Libra Investment Tokens. Their share of the total tokens translates into the proportion of the dividend they earn off of interest on assets in the reserve. Those dividends are only paid out after Libra Association uses interest to pay for operating expenses, investments in the ecosystem, engineering research and grants to nonprofits and other organizations. This interest is part of what attracted the Libra Association’s members. If Libra becomes popular and many people carry a large balance of the currency, the reserve will grow huge and earn significant interest.

The Libra Blockchain — built for speed

Every Libra payment is permanently written into the Libra Blockchain — a cryptographically authenticated database that acts as a public online ledger designed to handle 1,000 transactions per second. That would be much faster than Bitcoin’s 7 transactions per second or Ethereum’s 15. The blockchain is operated and constantly verified by founding members of the Libra Association, which each invested $10 million or more for a say in the cryptocurrency’s governance and the ability to operate a validator node.

When a transaction is submitted, each of the nodes runs a calculation based on the existing ledger of all transactions. Thanks to a Byzantine Fault Tolerance system, just two-thirds of the nodes must come to consensus that the transaction is legitimate for it to be executed and written to the blockchain. A structure of Merkle Trees in the code makes it simple to recognize changes made to the Libra Blockchain. With 5KB transactions, 1,000 verifications per second on commodity CPUs and up to 4 billion accounts, the Libra Blockchain should be able to operate at 1,000 transactions per second if nodes use at least 40Mbps connections and 16TB SSD hard drives.

Transactions on Libra cannot be reversed. If an attack compromises over one-third of the validator nodes causing a fork in the blockchain, the Libra Association says it will temporarily halt transactions, figure out the extent of the damage and recommend software updates to resolve the fork.

Transactions aren’t entirely free. They incur a tiny fraction of a cent fee to pay for “gas” that covers the cost of processing the transfer of funds similar to with Ethereum. This fee will be negligible to most consumers, but when they add up, the gas charges will deter bad actors from creating millions of transactions to power spam and denial-of-service attacks. “We’ve purposely tried not to innovate massively on the blockchain itself because we want it to be scalable and secure,” says Marcus of piggybacking on the best elements of existing cryptocurrencies.

Currently, the Libra Blockchain is what’s known as “permissioned,” where only entities that fulfill certain requirements are admitted to a special in-group that defines consensus and controls governance of the blockchain. The problem is this structure is more vulnerable to attacks and censorship because it’s not truly decentralized. But during Facebook’s research, it couldn’t find a reliable permissionless structure that could securely scale to the number of transactions Libra will need to handle. Adding more nodes slows things down, and no one has proven a way to avoid that without compromising security.

That’s why the Libra Association’s goal is to move to a permissionless system based on proof-of-stake that will protect against attacks by distributing control, encourage competition and lower the barrier to entry. It wants to have at least 20% of votes in the Libra Association council coming from node operators based on their total Libra holdings instead of their status as a founding member. That plan should help appease blockchain purists who won’t be satisfied until Libra is completely decentralized.

Move coding language — for moving Libra

The Libra Blockchain is open source with an Apache 2.0 license, and any developer can build apps that work with it using the Move coding language. The blockchain’s prototype launches its testnet today, so it’s effectively in developer beta mode until it officially launches in the first half of 2020. The Libra Association is working with HackerOne to launch a bug bounty system later this year that will pay security researchers for safely identifying flaws and glitches. In the meantime, the Libra Association is implementing the Libra Core using the Rust programming language because it’s designed to prevent security vulnerabilities, and the Move language isn’t fully ready yet.

Move was created to make it easier to write blockchain code that follows an author’s intent without introducing bugs. It’s called Move because its primary function is to move Libra coins from one account to another, and never let those assets be accidentally duplicated. The core transaction code looks like: LibraAccount.pay_from_sender(recipient_address, amount) procedure.

Eventually, Move developers will be able to create smart contracts for programmatic interactions with the Libra Blockchain. Until Move is ready, developers can create modules and transaction scripts for Libra using Move IR, which is high-level enough to be human-readable but low-level enough to be translatable into real Move bytecode that’s written to the blockchain.

The Libra ecosystem and the Move language will be completely open to use and build, which presents a sizable risk. Crooked developers could prey on crypto novices, claiming their app works just the same as legitimate ones, and that it’s safe because it uses Libra. But if consumers get ripped off by these scammers, the anger will surely bubble up to Facebook. Yet still, Calibra’s head of product tells me, “There are no plans for the Libra Association to take a role in actively vetting [developers],” Calibra’s head of product Kevin Weil tells me.

Even though it’s tried to distance itself sufficiently via its subsidiary Libra and the association, many people will probably always think of Libra as Facebook’s cryptocurrency and blame it for their woes.

Read our full story on the dangers of Libra’s unvetted developer platform

Libra incentives — rewarding early businesses

The Libra Association wants to encourage more developers and merchants to work with its cryptocurrency. That’s why it plans to issue incentives, possibly Libra coins, to validator node operators who can get people signed up for and using Libra. Wallets that pull users through the Know Your Customer anti-fraud and money laundering process or that keep users sufficiently active for over a year will be rewarded. For each transaction they process, merchants will also receive a percentage of the transaction back.

Businesses that earn these incentives can keep them, or pass some or all of them along to users in the form of free Libra tokens or discounts on their purchases. This could create competition between wallets to see which can pass on the most rewards to their customers, and thereby attract the most users. You could imagine eBay or Spotify giving you a discount for paying in Libra, while wallet developers might offer you free tokens if you complete 100 transactions within a year.

“One challenge for Spotify and its users around the world has been the lack of easily accessible payment systems – especially for those in financially underserved markets,” Spotify’s Chief Premium Business Officer Alex Norström writes. “In joining the Libra Association, there is an opportunity to better reach Spotify’s total addressable market, eliminate friction and enable payments in mass scale.”

This savvy incentive system should massively help ratchet up Libra’s user count without dictating how businesses balance their margins versus growth. Facebook also has another plan to grow its developer ecosystem. By offering venture capital firms like Andreessen Horowitz and Union Square Ventures a portion of the reserve interest, they’re motivating to fund startups building Libra infrastructure.

Using Libra

So how do you actually own and spend Libra? Through Libra wallets like Facebook’s own Calibra and others that will be built by third-parties, potentially including Libra Association members like PayPal. The idea is to make sending money to a friend or paying for something as easy as sending a Facebook Message. You won’t be able to make or receive any real payments until the official launch next year, though, but you can sign up for early access when it’s ready here.

None of the Libra Association members agreed to provide details on what exactly they’ll build on the blockchain, but we can take Facebook’s Calibra wallet as an example of the basic experience. Calibra will launch alongside the Libra currency on iOS and Android within Facebook Messenger, WhatsApp and a standalone app. When users first sign up, they’ll be taken through a Know Your Customer anti-fraud process where they’ll have to provide a government-issued photo ID and other verification info. They’ll need to conduct due diligence on customers and report suspicious activity to the authorities.

From there you’ll be able to cash in to Libra, pick a friend or merchant, set an amount to send them and add a description and send them Libra. You’ll also be able to request Libra, and Calibra will offer an expedited way of paying merchants by scanning your or their QR code. Eventually it wants to offer in-store payments and integrations with point-of-sale systems like Square.

The Libra Association’s e-commerce members seem particularly excited about how the token could eliminate transaction fees and speed up checkout. “We believe blockchain will benefit the luxury industry by improving IP protection, transparency in the product life cycle and — as in the case of Libra — enable global frictionless e-commerce,” says FarFetch CEO Jose Neves.

Privacy — at least from Facebook

Facebook CEO Mark Zuckerberg explained some of the philosophy behind Libra and Calibra in a post today. “It’s decentralized — meaning it’s run by many different organizations instead of just one, making the system fairer overall. It’s available to anyone with an internet connection and has low fees and costs. And it’s secured by cryptography which helps keep your money safe. This is an important part of our vision for a privacy-focused social platform — where you can interact in all the ways you’d want privately, from messaging to secure payments.”

By default, Facebook won’t import your contacts or any of your profile information, but may ask if you wish to do so. It also won’t share any of your transaction data back to Facebook, so it won’t be used to target you with ads, rank your News Feed, or otherwise earn Facebook money directly. Data will only be shared in specific instances in anonymized ways for research or adoption measurement, for hunting down fraudsters or due to a request from law enforcement. And you don’t even need a Facebook or WhatsApp account to sign up for Calibra or to use Libra.

“We realize people don’t want their social data and financial data commingled,” says Marcus, who’s now head of Calibra. “The reality is we’ll have plenty of wallets that will compete with us and many of them will not be in social, and if we want to successfully win people’s trust, we have to make sure the data will be separated.”

In case you are hacked, scammed or lose access to your account, Calibra will refund you for lost coins when possible through 24/7 chat support because it’s a custodial wallet. You also won’t have to remember any long, complex crypto passwords you could forget and get locked out from your money, as Calibra manages all your keys for you. Given Calibra will likely become the default wallet for many Libra users, this extra protection and smoother user experience is essential.

For now, Calibra won’t make money. But Calibra’s head of product Kevin Weil tells me that if it reaches scale, Facebook could launch other financial tools through Calibra that it could monetize, such as investing or lending. “In time, we hope to offer additional services for people and businesses, such as paying bills with the push of a button, buying a cup of coffee with the scan of a code or riding your local public transit without needing to carry cash or a metro pass,” the Calibra team writes. That makes it start to sound a lot like China’s everything app WeChat.

A global coin

Facebook got one thing right for sure: Today’s money doesn’t work for everyone. Those of us living comfortably in developed nations likely don’t see the hardships that befall migrant workers or the unbanked abroad. Preyed on by greedy payday lenders and high-fee remittance services, targeted by muggers and left out of traditional financial services, the poor get poorer. Libra has the potential to get more money from working parents back to their families and help people retain credit even if they’re robbed of their physical possessions. That would do more to accomplish Facebook’s mission of making the world feel smaller than all the News Feed Likes combined.

If Facebook succeeds and legions of people cash in money for Libra, it and the other founding members of the Libra Association could earn big dividends on the interest. And if suddenly it becomes super quick to buy things through Facebook using Libra, businesses will boost their ad spend there. But if Libra gets hacked or proves unreliable, it could cost lots of people around the world money while souring them on cryptocurrencies. And by offering an open Libra platform, shady developers could build apps that snatch not just people’s personal info like Cambridge Analytica, but their hard-earned digital cash.

Facebook just tried to reinvent money. Next year, we’ll see if the Libra Association can pull it off. It took me 4,000 words to explain Libra, but at least now you can make up your own mind about whether to be scared of Facebook crypto.

Powered by WPeMatico

Gaming clips service Medal has bought Donate Bot for direct donations and payments

Posted by | api, bot, computing, discord, e-commerce, freeware, Gaming, M&A, operating systems, Patreon, PayPal, Shopify, social media platforms, Software, Steam, subscription services, TC, Twitter | No Comments

The Los Angeles-based video gaming clipping service Medal has made its first acquisition as it rolls out new features to its user base.

The company has acquired the Discord -based donations and payments service Donate Bot to enable direct payments and other types of transactions directly on its site.

Now, the company is rolling out a service to any Medal user with more than 100 followers, allowing them to accept donations, subscriptions and payments directly from their clips on mobile, web, desktop and through embedded clips, according to a blog post from company founder Pim De Witte.

For now, and for at least the next year, the service will be free to Medal users — meaning the company won’t take a dime of any users’ revenue made through payments on the platform.

For users who already have a storefront up with Patreon, Shopify, Paypal.me, Streamlabs or ko-fi, Medal won’t wreck the channel — integrating with those and other payment processing systems.

Through the Donate Bot service any user with a discord server can generate a donation link, which can be customized to become more of a customer acquisition funnel for teams or gamers that sell their own merchandise.

Webhooks API gives users a way to add donors to various list or subscription services or stream overlays, and the Donate Bot is directly linked with Discord Bot List and Discord Server List as well, so you can accept donations without having to set up a website.

In addition, the company updated its social features, so clips made on Medal can ultimately be shared on social media platforms like Twitter and Discord — and the company is also integrated with Discord, Twitter and Steam in a way to encourage easier signups.

Powered by WPeMatico

Indonesian fintech startup Moka raises $24M led by Sequoia India

Posted by | Android, Asia, East Ventures, eCommerce, fenox, Finance, funding, Fundings & Exits, Indonesia, moka, PayPal, softbank ventures korea, Southeast Asia, Vertex Ventures | No Comments

Indonesia’s Moka, a startup that helps SMEs and retailers manage payment and other business operations, has pulled in a $24 million Series B round for growth.

The investment is led by Sequoia India and Southeast Asia — which recently announced a new $695 million fund — with participation from new backers SoftBank Ventures Korea, EDBI — the corporate investment arm of Singapore’s Economic Development Board — and EV Growth, the later stage fund from Moka seed investor East Ventures. Existing investors Mandiri Capital, Convergence and Fenox also put into the round.

The deal takes Moka to $27.9 million raised to date, according to data from Crunchbase.

Moka was started four years ago primarily as a point-of-sale (POS) terminal with some basic business functionality. Today, it claims to work with 12,500 retailers in Indonesia and its services include sales reports, inventory management, table management, loyalty programs, and more. Its primary areas of focus are retailers in the F&B, apparel and services industries. It charges upwards of IDR 249,000 ($17) per month for its basic service and claims to be close to $1 billion in annual transaction volume from its retail partners.

That’s the company’s core offering, a mobile app that turns any Android or iOS device into a point-of-sale terminal, but CEO and co-founder Haryanto Tanjo — who started the firm with CTO Grady Laksmono — said it harbors larger goals.

“Our vision is to be a platform, we want to be an ecosystem,” he told TechCrunch in an interview.

That’s where much of this new capital will be invested.

Tanjo said the company is opening its platform up to third-party providers, who can use it to reach merchants with services such as accounting, payroll, HR and more. The focus is initially on local services that cater to SMEs in Indonesia, but as Moka targets larger enterprises as clients, he said that it will integrate larger, global solutions, too.

Moka offers services beyond point-of-sale, but the core offering is turning any smart device into a cash machine

Moka itself is expanding its capabilities on the payment side.

Indonesia, the world’s fourth largest country based on population and Southeast Asia’s largest economy, is in the midst of a fintech revolution with numerous companies pioneering mobile-based wallet services aimed at ending the country’s fixation on cash-based transactions. That’s mean that there are a plethora of options available today. Tanjo said Moka is working to support them all in order to help its merchants grow their businesses and consumers to have easier lives.

There are so many wallets here in Indonesia,” he said. “There are more than 10 right now and maybe in the next few months there’ll be 15-20, we want to be the platform that works with all of them.”

Already it works with the likes of OVO, T-Cash and Akulaku, and e-wallets including DANA and Kredivo. The startup is also working in another area of fintech: loans.

As an extension of its platform, it has tied up with SME loan companies who can reach out to Moka businesses using its platform. With the merchant’s consent, Moka can provide business data — including revenue, profit, etc — to help provide data to assess a loan application. That’s important because the process is particularly challenging in Southeast Asia, where few organized credit checking facilities exist — it makes sense that Moka — which has built its business around encouraging business growth and management — uses the information it has access to help its partners.

Tanjo said the company takes an undisclosed cut of the loan in cases where it has successfully connected the two parties. He said that he doesn’t expect that to initially become a major revenue stream, but over time he anticipates it will help its customer base grow and become a more important source of income for the startup.

Sequoia India has some experience in POS startups having backed Pine Labs in India, which recently landed a big $125 million round from PayPal and Singapore sovereign fund Temasek. Still, there are plenty of local players across various markets in Southeast Asia, including StoreHub, which is backed by Temasek subsidiary Vertex Ventures, and Malaysia’s SoftSpace.

While those two competitors have established a presence in multiple markets in Southeast Asia, Tanjo — the Moka CEO — said there are no plans to venture overseas for at least the next 12 months.

“We’re still scratching the service,” he said. “So [it] doesn’t make sense to expand too soon.”

Powered by WPeMatico

With a $10 million round, Nigeria’s Paga plans global expansion

Posted by | africa, alipay, Android, Bank, bank transfers, california, cellulant, ceo, Column, e-commerce, economy, ethiopia, Finance, kenya, M-Pesa, Mexico, mobile devices, mobile payment, money, Nigeria, Omidyar Network, online payments, p2p, PayPal, Philippines, Safaricom, San Francisco, Spotify, Sweden, Uber, vodafone, western union | No Comments
Jake Bright
Contributor

Jake Bright is a writer and author in New York City. He is co-author of The Next Africa.

Nigerian digital payments startup Paga is gearing up for an international expansion with $10 million in funding let by the Global Innovation Fund. 

The company is planning to release its payments product in Ethiopia, Mexico, and the Philippines—CEO Tayo Oviosu told TechCrunch at Disrupt San Francisco.

Paga looks to go head to head with regional and global payment players, such as PayPal, Alipay, and Safaricom’s M-Pesa, according to Oviosu.

“We are not only in a position to compete with them, we’re going beyond them,” he  said of Kenya’s M-Pesa mobile money product. “Our goal is to build a global payment ecosystem across many emerging markets.”

Founded in 2012, Paga has created a multi-channel network and platform to transfer money, pay-bills, and buy things digitally that’s already serving 9 million customers in Nigeria—including 6000 businesses. All of whom can drop into one of Paga’s 17,167 agents or transfer funds from one of Paga’s mobile apps.

Paga products work on iOS, Android, and basic USSD phones using a star, hashtag option. The company has remittance partnerships with the likes of Western Union and Moneytrans and allows for third-party integration of its app.

Paga has also built out considerable scale in home market Nigeria—which boasts the dual distinction as Africa’s most populous nation and largest economy.

Since inception, the startup has processed 57 million transactions worth $3.6 billion, according to Oviosu.

That’s no small feat given the country straddles the challenges and opportunities of growing digital payments. Only recently did Nigeria’s mobile and internet penetration break 50 percent and 40 percent of the country’s 196 million remain unbanked.

To bring more of Nigeria’s masses onto digital commerce, Paga recently launched a new money transfer-app that further simplifies the P2P payment process from mobile devices.

For nearly a decade, Kenya’s M-Pesa—which has 20 million active users and operates abroad—has dominated discussions of mobile money in Africa.

Paga and a growing field of operators are diversifying the continent’s payment playing field.

Fintech company Cellulant raised $47 million in 2019 on its business of processing $350 million in payment transactions across 33 African countries.

In Nigeria, payment infrastructure company Interswitch has expanded across borders and is pursuing an IPO. And Nigerian payment gateway startups Paystack and Flutterwave have digitized volumes of B2B transactions while gaining global investment.

So why does Paga—a Nigerian payments company—believe it can expand its digital payments business abroad?

“Why not us?,” said CEO Oviosu. “People sit in California and listen to Spotify that was developed in Sweden. And Uber started somewhere before going to different countries and figuring out local markets,” he added.

“The team behind this business has worked globally for some of the top tech names. This platform can stand shoulder to shoulder with any payments company built somewhere else,” he said.

On that platform, Oviosu underscores it has positioned itself as a partner, not a rival, to traditional banks. “Our ecosystem is not built to compete with you, it’s actually complimentary to you,” he said of the company’s positioning to big banks—enabling Paga to partner with seven banks in Nigeria.

Paga also sees potential to adapt its model to other regulatory and consumer environments. “We’ve built an infrastructure that rides across all mobile networks,” said Oviosu. “We’re not trying to be a bank. Paga wants to work with the banks and financial institutions to enable a billion people to access and use money,” he said.

As part of the $10 million round (which brings Paga’s total funding up to $35 million), Global Innovation Partners will take a board seat. Other round participants include Goodwell, Adlevo Capital, Omidyar Network, and Unreasonable Capital.

Paga will use the Series B2 to grow its core development team of 25 engineers across countries and continents. It will also continue its due diligence on global expansion—though no hard dates have been announced.

On revenues, Paga makes money on merchant payments, bank to bank transfers, and selling airtime and data. “As we roll out other services, we will build a model where we will make money on savings and lending,” said the company’s CEO.

As for profitability, Paga does not release financials, but reached profitability in 2018, according to Oviosu—something that was confirmed in the due diligence process with round investors.

On the possibility of beating Interswitch (or another venerable startup) to become Africa’s first big tech IPO, Oviosu plays that down. “For the next 3-5 years I see us staying private,” he said.

Powered by WPeMatico

Venmo is discontinuing web support for payments and more

Posted by | Finance, Mobile, mobile apps, mobile payments, p2p payments, payments, PayPal, Venmo | No Comments

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.

@venmo i only use the website to send/receive payments so in guess you’re cancelled!

— respectfully yours (@biking_away_) June 15, 2018

@venmo This makes me really #sad….”Venmo has decided to phase out some of the functionality on the https://t.co/Dw7W551BsL website over the coming months.” #CanWeGoBackToHowItWas

— V Lav (@Druzy920) June 14, 2018

@venmo Why are you breaking your website?

— Lozaning (@lozaning) June 14, 2018

@VenmoSupport @venmo Just got an email saying you’re phasing out website functions. What’s the justification? Pay and charge by web is incredibly useful.

— Woode (@Woode2380) June 14, 2018

Venmo email: “We are beginning to discontinue the ability to pay and charge someone on the https://t.co/iAFTbn3EY0 website, and over time, you may see less functionality on the website – this is just the start.”

Is this a threat?

— Noah Mittman (@noahmittman) June 14, 2018

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.

Powered by WPeMatico

Latin America’s Movile is quietly building a mobile empire

Posted by | brazil, Column, ifood, Mobile, movile, Naspers, online food ordering, PayPal, playkids, spoonrocket, Tencent, WeChat | No Comments

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.

Powered by WPeMatico

You can now PayPal friends in Messenger and get help via chat

Posted by | Apps, Facebook, Finance, messaging, Messenger, Mobile, payments, PayPal, Social, TC | No Comments

 PayPal users in the U.S. will now be able to send and receive person-to-person payments over Facebook Messenger, the company announced this morning. The deeper integration with Messenger’s platform, which will also include PayPal’s first customer service bot for handling customer questions and requests for help, follows a series of tie-ups between the two companies. Last year,… Read More

Powered by WPeMatico

Zelle, the U.S. banks’ Venmo rival, will launch its mobile app next week

Posted by | Apps, Banking, Finance, fintech, Mobile, mobile payments, money, money transfer, payments, PayPal, Venmo, Zelle | No Comments

 Zelle, the PayPal rival backed by more than 30 U.S. banks, is preparing to launch its standalone mobile app on Tuesday, September 12th. The move is meant to give the U.S. banking industry a foothold in the person-to-person payments business, where they’re losing ground to services like PayPal, Venmo, Square Cash and, very soon, Apple’s iMessage, powered by Apple Pay. Read More

Powered by WPeMatico