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Today In Payments: Economists Warn Recession Recovery Will Be Slow; Facebook Daily Active Users Surge 11 Pct YoY

In today’s top news, economists warn that the economic downturn isn’t finished yet, and Facebook reported better than expected earnings. Plus, the Federal Reserve is committed to providing stimulus money until the economy is on the road to recovery.

Economists Warn Recession Recovery Will Be Slow

The coronavirus pandemic has triggered the biggest drop in the U.S. economy since the Great Recession, and economists are warning that the worst is yet to come. The gross domestic product (GDP) plummeted 4.8 percent in the first quarter of 2020, and Federal Reserve Chairman Jerome Powell said the second quarter will be worse even as some states ease restrictions and some businesses reopen.

Facebook Daily Active Users Surge 11 Pct YoY Amid Pandemic

Facebook’s earnings results showed the impacts of a pandemic that proved to be headwinds on its advertising business, but logged gains in monthly and daily active users, posting $17.7 billion in revenues, up 18 percent year on year and better than expected.

Powell: Low Rates Stay Until Economy Is On ‘Road To Recovery’

FedChairman Powell said Wednesday (April 29) that the Fed will “not be in any hurry to withdraw [monetary stimulus] … until we’re quite confident that the economy is well on the road to recovery.”

Mnuchin: All PPP Loan Recipients Will Face Audits

All businesses that borrow money through the federal Paycheck Protection Program (PPP) can expect to be audited before the loans are forgiven, according to Treasury Secretary Steven Mnuchin, regardless of the amount borrowed.

What Asia-Pacific Can Learn From EU’s Open Banking Initiatives

Asia-Pacific bank regulators have been crafting their own open banking initiatives even since Europe rolled out similar rules in 2018. Their goal — follow the European Union’s regulatory framework while meeting Asia-Pacific merchant and consumers’ unique banking and security needs. In our latest Merchants Guide To Navigating Global Payment Regulations, PYMNTS spoke to Evans Munyuki, chief digital officer for Dubai-based financial institution Emirates NBD, about how his firm is using application programming interfaces (APIs) to meet this challenge by engineering greater trust and connectivity for merchants.

Taking A Data-Driven Approach To Meeting CU Members’ Banking Needs

Analyzing credit union (CU) members’ behaviors and mapping out their journeys is imperative in offering the right products and services to them. In the latest PSCU Credit Union Tracker, Dana Vas Nunes, senior vice president of member services for Arizona Federal Credit Union, discusses how the CU uses data analytics to understand members’ pain points and proactively cater to their needs before problems arise.

Feeding Consumers’ Growing Appetite For Digitally Enabled Dining

Meal kit giant Blue Apron enjoyed an 8 percent jump in quarterly revenues, Denny’s has begun selling $12.99 meal kits, and hot Chicago restaurant Fat Rice is permanently changing to a specialty market for meal kits and other goods. “The restaurant for the foreseeable future is dead,” Fat Rice’s founder said. “… People are not going to feel comfortable being in a cramped dining room.” Is this the opening the meal kit industry was waiting for?

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LIVE PYMNTS ROUNDTABLE: MODERNIZING & SCALING FOR THE NEW NORMAL

The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.

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