PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Alipay Processing More Mobile Transactions Than PayPal

Pradeep T Moudgal by Pradeep T Moudgal
February 11, 2014
in Analysts Coverage
0
Apple Moves Into P2P Payments Space - PaymentsJournal

Hand holding mobile phone at supermarket checkout background, digital wallet concept

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Corporate cash in the form of bank deposits is rising, as firms rebuild liquidity but hesitate to commit to significant investments. The Wall Street Journal’s editor Vipal Monga believes that banks are deliberately attracting these deposits, and offering higher rates as evidence of their interest. He cites anecdotal evidence of CFOs and treasurers attesting to receiving slightly higher rates for corporate deposits, especially if committed for medium terms. He also cites the Association for Financial Professionals (AFP):

“In a May survey of nearly 900 corporate-finance departments, the Association for Financial Professionals found that 40% had increased their cash holdings from a year earlier in the first quarter of this year. What’s more, half of the cash on company balance sheets was held in bank accounts, up from one-quarter in 2008, the survey showed.”

Editor Vipal Monga offers his explanation for the change:

“The new attraction for banks is that corporate checking accounts, which companies use to fund daily operations, are considered relatively stable under the so-called Basel III international banking rules. That means banks will need to hold assets in reserve against just 25% of the money in these accounts, freeing up more funds for higher-yielding investments. By contrast, banks will be required to keep assets in reserve equal to 100% of the deposits from hedge funds because of the greater risk of sudden withdrawals.”

Both the increased liquidity and the increased willingness to keep that liquidity in U.S. bank accounts reported by AFP members are consistent with the current uncertain economic conditions. However, one should take this observation about banks’ motivations with a grain of salt. The need to preserve capital in anticipation of Basel III requirements is a concern of the larger banks, but probably not of the second and third tier. Thus, while Fortune 1000 firms may see the benefits of higher offered bank deposit rates, smaller businesses are unlikely to reap the same rewards regardless of where they bank.

Read original story here

Tags: Mobile Payments
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023
    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix