In E-Linx
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ISSUE NO. 60 – NOVEMBER 2018

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E-Linx: November 2018

Chase Bank Launches Chase Offers Its Card-Linking Program

Chase Bank, the largest US bank, launched Chase Offers, a card-linked offer program powered by technology provided by CardLinx member Cardlytics. Chase Offers allows Chase credit and debit card holders to find deals on the Chase Mobile app and through direct emails. Like other card-linking programs, consumers select and opt-in to the deals they would like and when they pay with that card in-store, online or via digital wallets, the credit will be automatically applied to their account. Cardlytics now powers card-linking for three of the largest US banks: Chase Bank, Bank of America and Wells Fargo.

CardLinx Insight

Just in time for the holiday season, Chase Bank released their Chase Offers card-linking program. Over the last two years, financial institutions have embraced card-linked offers as a way to add value to both consumer and merchant customers as well as provide an additional revenue stream. With the addition of Chase Offers, Cardlytics now powers card-linking programs for financial institutions that collectively represent $2.3 trillion in annual consumer spend, representing two out of every five credit and debit transactions in the United States. These new programs will help change consumer behavior and encourage the creation of more card-linking programs.

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Amazon Creates In-Store Mobile Payment Program

Online behemoth Amazon is looking to enter the crowded in-store digital payment space in the United States. According to the Wall Street Journal, Amazon will start by approaching industries that are not direct retail competitors like gas stations and restaurants. Amazon Pay is currently used at Amazon’s own cashierless Amazon Go stores where shoppers pay using the Amazon Go smartphone app. There was no mention of Amazon Pay’s underlying technology, however E-Linx recently announced Amazon Pay’s entrance into Japan using QR codes, which may portend the technology for Amazon Pay in the US.

CardLinx Insight

Greater consumer adoption of contactless payments is attracting the world’s largest technology companies and Amazon is exploring providing its own in-store digital payment. Despite the success of online commerce, the majority of retail shopping in the US and worldwide is still in-store and to sustain growth tech companies like Amazon are looking to establish themselves in traditional retail locations. This move by Amazon, that already dominates 50% of e-commerce in the US, underlines the urgent need for CardLinx to support our members in the acceleration of the adoption of card-linking and transaction data aggregation for targeting and attribution.

Standard Cognition E-Linx
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Cashierless Startup Standard Cognition Raises $40 Million from Reddit Founder

Standard Cognition, enabling cashierless checkout for any retailer, announced it has raised $40 million in Series A funding led by Initialized Capital, a venture capital firm started by Alexis Ohanian the founder of Reddit. Standard Cognition’s technology uses an AI-powered computer vision platform available to any brick and mortar retailer and makes it possible for consumers to shop and pay without scanning or stopping to check out. An alternative to Amazon Go, Standard Cognition is one of many in the autonomous scan-and-go space but is the only one to open a physical store. Standard Cognition was started a year ago by members building engineering teams at the Security and Exchange Commission and the new funding will be used to accelerate global expansion plans and add 70-80 employees to its current team of 40.

CardLinx Insight

The investment in Standard Cognition demonstrates the heated market to bring cashierless checkout into the mainstream. The startup has recently opened a cashierless pilot store in San Francisco and secured four retail customers in North America, Asia and Europe.

Although Amazon has received the most press for its Amazon Go stores, Walmart recently announced their own cashierless Sam’s Club Now store in Texas. Globally, Alibaba and Lenovo have opened cashierless stores in Asia. Despite moves by retail’s largest companies, the interest and success of startups like Standard Cognition shows that the future is far from determined and innovation has the ability to conventional wisdom.

Alipay E-LInx
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Alipay Goes In-store With Partnerships in Canada, Australia and Europe

The strength of Alipay’s 870 million active users is being felt around the world with partnerships around the globe. In Canada, 7-Eleven will provide Alipay and WeChatPay options to Chinese tourists traveling in Canada. The initial plan includes 35 stores in Vancouver and Toronto with more stores in 2019. In Australia, NAB one of Australia’s largest banks, has become the first to support Alipay’s mobile platform to attract overseas Chinese travelers. Currently in the pilot phase, NAB will make Alipay available to all merchants in early 2019. In Europe, Alipay became the official global digital wallet provider and global fintech partner for European International Soccer, aka UEFA. The deal through 2026 also includes on-site elements at major tournaments such as Euro 2020 and showcase cashless stadiums of the future.

CardLinx Insight

As Alipay saturates its home market in China, it seeks global expansion with a playbook that follows overseas Chinese travelers abroad and partnerships with established organizations to increase awareness to new consumers and markets. Expansion by large e-commerce companies like Alibaba and Amazon show the need for collaboration in the card-linking industry to create cross-industry platforms that facilitate purchase data exchange to counter the advantages of being an online-first tech company. CardLinx’s work with the Asia Council in Japan is an example of how companies in different industries can work together to create greater opportunities for all.