ISSUE NO. 81 – September 2020
IN THIS ISSUE
New CLO Industry Data Shows Strong Growth Despite Pandemic
Private Equity Firm Invests $650 Million in CardLinx Member Klarna
WeChat Pay Ban in US Could Shake Up Payments Industry in Both US and China
Tiffany’s $16 Billion Sale Falls Apart
Card-linking: Emerging as the Preferred Digital Advertising Channel
Member Updates/Upcoming CardLinx Conferences
NEW CLO INDUSTRY DATA SHOWS STRONG GROWTH DESPITE PANDEMIC
PRIVATE EQUITY FIRM INVESTS $650 MILLION IN KLARNA
CardLinx member Klarna, a Swedish payments company, boosted by the shift to e-commerce brought on by the pandemic, has raised $650 million from a Silver Lake-led investment group. With presence in Europe, the UK, the US, Canada and Australia, Klarna will leverage the investment to continue global expansion and develop new offerings.
Cardlinx Insight:
Klarna was the first to capitalize on Millennials’ preference to not carry credit card debt and at the same time not expose themselves to risk associated with debit cards. Klarna appeals to these consumers by allowing them to pay in interest-free installments and giving them opportunity to try before they buy. The payments company is compensated by fees paid by 200,000+ member merchants. The uptick in online buying since March sparked growth and investment interest.
WECHAT BAN IN US COULD SHAKE UP PAYMENTS INDUSTRY IN BOTH US AND CHINA
Trump’s attempt to ban WeChat transactions in the US based on concerns about the Chinese government’s ability to collect data from consumers in the US could have major repercussions within the mobile payments industries in both countries.
CardLinx Insight:
If the restriction on WeChat Pay’s execution of its cross border strategy goes into effect as anticipated, it will significantly impact the company’s international expansion plans. China is likely to retaliate by limiting US firms’ (i.e. American Express, PayPal and Mastercard) hard-won ability to do business there.
TIFFANY'S $16 BILLION SALE FALLS APART
The parent company of CardLinx member 24S of the LVMH Group, the world’s largest luxury retailer, is ending its planned takeover of Tiffany & Company. The government of France requested the deal be delayed on Aug. 31 because of a threat of U.S. tariffs on French goods, as well as coronavirus concerns.
CardLinx Insight
The souring of this deal is an example not just of trade tensions, but also of the significant impact of the pandemic on in-store luxury retailers. A big part of the value of Tiffany is its empire of posh retail stores in the world’s leading commercial centers. Many of those brick-and-mortar destinations are now shuttered and the Tiffany business model looks more like a liability than an asset. Since the deal was announced, LVMH has made a successful pivot to online shopping experiences with its well-known e-commerce brand 24S.
CARD-LINKING; EMERGING AS THE PREFERRED DIGITAL ADVERTISING CHANNEL
Upcoming CardLinx Conferences
CARDLINX WEST
DATA & MOBILE OFFERS – THE NEXT PHASE OF COMMERCE
Personalized experiences based on what consumers want, when and where. This conference explores how and why the approach works to strengthen relationships between merchants and their customers—and drive loyalty. Learn more about how retailers, banks, card issuers and tech companies are delivering the data and mobile offers the market demands.
CARDLINX EAST
LOOKING BEYOND 2021: THE AGE OF DIGITAL COMMERCE POST COVID-19
Personal and professional lives have been upended, yet industry innovation is in full swing. At this CardLinx Conference hear from leaders as they discuss opportunities presented since the pandemic began, including: Online-only card-linked offers that drive e-commerce spending; the convergence of ecommerce and brick-and-mortar shopping to boost consumer satisfaction; and the role delivery is taking in vitalizing merchants large and small.
NEW DIGITAL SERVICES
CARDLINX WEBINAR SERIES
Dosh CEO Ryan Wuerch joins CardLinx CEO Silvio Tavares to take a deep dive into how everyone in the ecosystem – financial institutions, brands, and customers – benefits from a frictionless rewards experience.
Each month, The CardLinx Association hosts a live, interactive webinar with speakers from some of the biggest companies in the world on the most important and relevant topics for your business. Topics include impacts of Covid-19 on the industry in terms of consumer credit behavior, mobile wallets, card companies and lenders. The webinars are complimentary for all CardLinx members. Non-members must pay a registration fee of $149. Register today as space for each webinar is limited!
Please contact [email protected] with questions or if you need additional information.
CARDLINX MEET-UPS
Curated 1:1 Video Meeting Among Webinar and Conference Attendees
CARDLINX COMMERCE TRACKER
The CardLinx Association brings to you an interactive world map that tracks the top 20 national economies of the world. Stay up to date with the constantly changing restrictions and reopenings of economic activity related to Covid-19. Find out which of the top world economies are open for business with the CardLinx Commerce Tracker.
