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IBM took the banking world by storm last month when it revealed its planned acquisition of Promontory Financial Group. Now, it has unveiled IBM Pay, a perhaps unexpected and yet unsurprising addition to the technology giant's Watson Commerce unit.
The private label mobile payment and point of sale system for merchants allows them to integrate loyalty, engagement and payments within their existing app, giving retailers full control of the end-to-end digital container—under their own brand—to compete more effectively with online merchants.
An IBM logo sits on display outside the offices of International Business Machines Corp. in the media city district of Dubai, United Arab Emirates, on Friday, Nov. 7, 2014. The United Arab Emirates' central bank limited mortgage lending and required larger down payments, and the Land Department doubled transaction taxes early last year as policymakers tried to avoid a repeat of a property bubble in 2008 that caused values to slump by about 65 percent. Photographer: Chris Ratcliffe/Bloomberg
Chris Ratcliffe/Bloomberg
Watson, IBM's massive artificial intelligence engine, is central to IBM Pay. A video announcement released Monday implies the move is more of a play for loyalty and engagement than convenience, which the consumer-facing Apple, Samsung and Android Pays have been pushing.
IBM touts the offering's insights, tailored offers that can be redeemed with one-click payments, and reduced transaction times and costs through in-app payments.
House Republicans, led by House Financial Services Committee Chairman French Hill, R-Ark., outlined their priorities for the Trump administration's banking agenda in a series of letters to key regulators.
The buy now/pay later company made a deal with Stride Bank to add banking-as-a-service heft as Affirm Card usage soars and Evolve grapples with defections.
The Trump administration is leapfrogging the normal process by taking its fight over a district court injunction blocking efforts to shut down the Consumer Financial Protection Bureau to a federal appeals court, according to the CFPB workers' union.
"I can't just go fishing in the ocean," said Grasshopper Bank CEO Michael Butler, referring to his bank's ability to gather deposits. "JPMorgan Chase is out there with a yacht, and I'm driving a small speedboat."
Holly O'Neill, who was No. 5 on American Banker's list of the Most Powerful Women in Banking last year, will oversee a new department combining BofA's retail and preferred units. Aron Levine, who previously led preferred banking, is leaving the company.
