Kabbage Aims To Konquer Konsumer Loans With Karat -
Kabbage is branching out from the merchants in search of working capital where it built its original business and is now looking to individuals looking for personal loads. The new service for those potential consumers is Karrat, and the will toss the Atlanta-based start-up into the increasingly crowded world of P2P personal lending. This ground is currently staked out by players such as Lending Club and Prosper Marketplace.
Wow. Did not see this coming. Kabbage is trying to do A LOT all at once.
I was reading Klarna Announces U.S. Team As It Plans For 2015 Launch In The U.S. on TechCrunch and thought you might be interested in reading it too.
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The rumors are getting louder and louder that the iWatch will have a screen. While my no-screen prediction for the iWatch is likely wrong, I can’t say that I’m that disappointed. This device should be absolutely fascinating to see. I’m particularly interested in see the non-obvious use cases Apple lays out as well as the UX between the iPhone and the iWatch. This is one of those rare times in tech where there’s just so little known. Watching the keynote unfold will be like Christmas morning for this geek.
From Dan Primack today:
Update #3: Yes, you just read that correctly: KKR participated in a pure venture capital deal. Sure it’s later-stage, but it’s certainly not a buyout. You may recall that we wrote in January about how KKR was considering the launch of a tech growth equity investing platform, and it seems that the consideration gave way to execution. Not only has KKR backed FanDuel, but it also invested £100 million into British online retailer The Hut Group back in June, and today said that it was plugging $90 million into luxury smart home technology company Savant Systems. — http://fortune.com/2014/09/03/term-sheet-wednesday-sept-3/
Is Amazon Quietly Getting Into The Lending Business? | PYMNTS.com -
It’s no secret that following the trail of hiring announcements can often signal the strategic directions of a company. The more quiet the announcement, the more it tends to reveal. With that in mind, a LinkedIn update recently showed Nick Talwar, until recently the Senior VP of Visa’s North American credit card unit, has move to Amazon as general manager of Amazon Lending.
We’ve known for a while Amazon has been lending to merchants on their platform, but will they move into consumer credit? I’m not sure why they wouldn’t run an experiment acting as a non-bank consumer lender. Should be an interesting one to follow especially as Apple enters the payments fray in a meaningful way.
Apple Partnering With American Express On New iPhone Payments System -
Apple has reached an agreement with American Express to work together on its new iPhone payments system, according to sources familiar with the talks. American Express is one of several partners Apple will need to sign up before it can launch its new payments plan, which sources say it plans to announce at its September 9 product event.
Apple’s new payments system is expected to let iPhone 6 owners use their phone in place of a credit card or cash to pay for goods in brick-and-mortar stores. Customers will present their phones at the checkout counter of partnering retailers to transmit payment information to complete a purchase. It’s not clear which retailers have signed on to accept such payments.
If true, this is a pretty big deal. Sept 9 will be a huge day.
Klarna, an Online Payment System Popular in Europe, Eyes Global Expansion -
The company recently hired its first employee in the United States and hopes to become available in America early next year, according to two people with direct knowledge of the matter, who spoke on the condition of anonymity because they were not authorized to speak publicly.
Some interesting news that Klarna is exploring coming to this side of the pond. I suspect they’ll initially start with a very limited roll out as online lending models are very sensitive to the population they have been trained on and the US differs significantly from the Nordics and Western Europe.
Twitter Working With Payments Startup Stripe on Commerce Plan
I don’t think the iWatch will look anything like the photo above.
It is widely expected that Apple will launch an “iWatch” in the next one to six months. At the risk of being totally wrong in just a few weeks or months, here are a few bold predictions:
#1) It may not be a watch.
That’s right; I’m less than 50% convinced the “iWatch” will have a traditional watch face with a screen and look like a watch. If it does, I don’t think it will look like a traditional watch. Most screens are power hungry yet watches need to be quite small and thus accommodate minute batteries. Apple also has a tradition of creating more by removing seemingly necessary features. Want to build the best smart phone for typing email? Remove the keyboard. Want to build the best laptop? Remove everything that makes it a “laptop.”
As @monkbent pointed out to me the other day, if the iWatch is focused on gathering sensory data, then it doesn’t need a screen. How functional and wonderful an experience can you provide on a tiny screen anyhow? If the iWatch does include a screen, I don’t think it will function like the screen on an iPhone. The size of a watch screen relative to a fingertip makes for potentially poor interaction dynamics if you think about the Apple iOS UI guidelines for button sizing.
Apple executives are probably watching and laughing as competitors including Motorola and Samsung rush literal iWatches to market based on what they think Apple will do and fear of Apple getting there first. Meanwhile, in reality, Apple’s iWatch is no “watch” at all.
#2) Unlike Android watch initiatives, Apple will not try to make their watch look like a digital Rolex.
Wristwatches are dangerous territory for Apple. Unlike computers, digital music players and tablets, watches are already about as simple as they can get. The watch on my wrist really couldn’t get much less functional: it tells the time yet doesn’t even distinguish between AM and PM! In fact, it doesn’t tell me which month it is or how many days there are in the current month so I have to manually adjust it for any month without 31 days! It doesn’t even have a battery. It relies on the ancient tech of mechanical gears! Yet, I paid a premium for this watch! Weird, right? Yes! It is, in fact, irrational.
Apple understands this subtle insight into the watch market that Google, Motorola and Samsung have missed. The watch market is irrational. Rolex watches are not coveted for their features and functionality. They are status symbols. It can be pretty difficult to compete with irrational status symbols with rational features and functionality. That sounds like a losing battle to me.
#3) It will be cool.
Apple understands cool. Remember the original iPod billboard and TVs ads? Fucking cool. Apple took the incredibly dorky Nomad Jukebox and made it look cool, seem cool and actually cool. With hindsight, it wouldn’t seem difficult to make an “MP3 player” cool, yet it was an incredible coup at the time. Apple made the iPod at a time before a lay person could figure out how to download an MP3 or sync a hardware peripheral with a computer. (I remember being made fun of by a close friend for pre-ordering one of the first iPods.) Complexity is decidedly uncool. Apple removed all that complexity and brought portable digital music to the masses. That’s what made it cool. All of those ads were icing on the cake.
Why go through the effort of trying to be cool? Does Apple have some sort of superiority complex derived from awkward high school years? Possibly, but more likely and quite simply, cool sells (and Google Glass does not).
#3) It will be sporty and fun.
Unlike the Motorola 360 for instance, the iWatch will have branding much closer to Nike+ than an exclusive brand such as Rolex or Louis Vuitton. Once again, Apple does not want to out Rolex Rolex.
Apple will compete by making it sporty. Think: young, athletic people in workout clothes. Think photos of impossibly fit and diverse 20-somethings having just finished a grueling run, yet nonchalantly smiling as if to say “Oh, did I just run a marathon?!”
Wearables: contrasting approaches in positioning
But the sportiness will be more than skin deep. Apple will deliver on this positioning through a host of applications that allows consumers to track fitness and self-improvement and those will be front and center. Apple will make you feel like you just lost 20 pounds and can run a 4:00 mile by putting this thing on.
#4) It will be serious and emotional.
Complementing the iWatch’s sporty and lighter side, we’re likely to get a healthy does of some really serious, nearly tear-jerking positioning. Think: young children freed from cumbersome medical devices roaming in the great outdoors. Think: grandparents living more fulfilling lives with their grandchildren because they spend less time at the doctor’s office. We’ve seen this before. Apple likes to appeal to both sides of the emotional spectrum. In one frame you see some guy climbing a snow-capped mountain with an iPad and in the next you see some impeccably dressed, WASPy looking grandparents FaceTiming with Junior. Once again, it won’t just be positioning because eventually the iWatch will deliver on these promises.
There’s a high likelihood I’ll be totally wrong on most if not all of these prognostications but that’s what makes this fun. It is very likely (read: nearly certain) Apple will surprise us in ways I haven’t contemplated, but I think in almost any configuration the iWatch is unlikely to resemble current digital watch initiatives.
Square Expands Its Cash Advance Service -
Square, the e-commerce start-up, announced on Tuesday that it would broaden the scope of its cash advance program through a multimillion-dollar deal with Victory Park Capital, a Chicago-based firm known for backing small-business financing ventures.