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PayPal suggests it will be ready to offer ‘offline’ payments when DMA goes into effect

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PayPal is working on a new consumer app for its mobile customers, and suggested that it will be “ready” to take advantage of the new EU regulation, the Digital Markets Act (DMA), when it goes into effect next month for tech “gatekeepers,” like Apple. For PayPal, one of the significant changes coming in the DMA is the ability for third-party apps to access the NFC technology that currently powers Apple Pay in their own mobile wallet applications. iPhone users will also be able to switch to another mobile wallet as their default, under the new guidelines.

On its Q4 earnings call, PayPal didn’t share much about its plans concerning Apple’s compliance with the DMA or how it would impact PayPal specifically. In part, that’s because Apple is a company PayPal works closely with today, offering checkout and payment services on Apple devices, from Macs to iPhones, as well as integrations with Apple Wallet, including support for “Tap to Paycontactless payments which leverage Apple Wallet.

Noted PayPal CEO Alex Chriss, a former Intuit exec who started his new role at PayPal in September, “We are tracking this closely,” in response to an investor question about how PayPal would be taking advantage of the new access to the NFC technology the DMA allows for. “Apple is a great partner of ours,” he added.

However, Chriss also suggested that PayPal customers have been looking for a way to use PayPal outside the world of online payments and that the company was working on delivering this.

“…our customers that love PayPal on the online e-commerce side are demanding being able to have an omnichannel and offline solution, as well. So, we’ll be working closely on this. And when it is available, we will be ready to be able to deliver for our customers, both online and offline,” he responded.

It’s not a clear answer, but one that certainly suggests the payments giant is working on something in the area of NFC mobile wallets, particularly given the “offline solution” comment.

Offline payments, meaning those taking place in physical retail stores, is an area PayPal has unsuccessfully tried to expand into for years. Over the past decade, PayPal has tried a range of initiatives on this front, including partnerships with national retailers in the U.S., deals with point-of-sale software and terminal makers, features to pay local shops via its app, acquisitions of mobile wallet technology, the use of QR codes for retailer payments, partnerships with credit cards on offline payments, tools for merchants selling offline and more.

But although the COVID-19 pandemic drove faster adoption of contactless payments, Apple Pay remained the top mobile payment player, at least in the U.S.

As for the EU, Europe has a high mobile wallet penetration, with one 2023 study noting that a majority (72%) actively engage with the technology. Another analysis says Europe’s mobile payments market size is estimated to reach $108.35 billion in 2024, then $373.29 billion by 2029. While Apple and Google have gained ground here, 90% of Europeans have used PayPal services, the study said.

Simply put, PayPal has a sizable opportunity to capitalize on Apple’s loosened rules in the days ahead, if it chooses.

Apple’s DMA-driven changes will include new APIs that let app developers use NFC technology in their banking and mobile wallet apps throughout the EU. Plus, Apple is adding new controls that would allow consumers to select a third-party contactless payment app as their new default. In other words, PayPal could be swapped in for Apple Pay, if it adopts this functionality.

Chriss didn’t share when PayPal would implement the “offline” solution the DMA would enable, only saying that the company would be “ready” to do so, at some point after the new functionality became available.

Possibly related to this, PayPal also offered hints of a new consumer app in development at the company.

“This year, we’re launching and evolving a new PayPal app to create habituation,” noted Chriss.

Later, he also admitted that PayPal’s “mobile experience for our consumers, has been underwhelming. And it’s something that with the new innovations we just rolled out, I expect for us to be able to continue to see improvement there,” he added.

Recently, PayPal introduced a series of AI-powered features, including personalized cashback offers in the app and smart receipts that offer suggestions of what to buy next from the same brand, for example. These features and others were announced as part of a “first look” experience in January, which Chriss said was done in 60 days, instead of the “months or years” they could have taken.

Investors didn’t dig in to ask more DMA or mobile wallet-related questions, but the company already announced when select new features would launch, like CashPass (personalized cashback) due out in March, with Smart Receipts said to be coming soon.

PayPal in Q4 beat on earnings with EPS of $1.48, above the $1.36 expected, and revenue of $8.03 billion, ahead of the $7.87 billion expected. The stock dropped after the earnings announcement, however, because of weaker-than-expected first-quarter guidance.



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Where Did Earth’s Oceans Come From? Scientists Say They Originated From Comets

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Scientists have long debated how Earth became rich in liquid water after the planet formed about 4.5 billion years ago. Now a new research published in Science Advances suggests that comets, particularly those from the Jupiter family, may have played a significant role in delivering water to Earth.

The study focused on Comet 67P/Churyumov-Gerasimenko, a celestial body that belongs to the Jupiter family of comets.

Using data from the European Space Agency‘s (ESA) Rosetta mission, researchers analysed the molecular structure of water on the comet and found striking similarities to the water in Earth’s oceans. This discovery strengthens the theory that icy comets and asteroids crashing into Earth contributed to the formation of its oceans.

The ratio of deuterium to regular hydrogen in the water is a key signature which is the basis of the study. Deuterium is a heavier isotope of hydrogen and it forms heavy water.

Previous studies had shown that the levels of deuterium in the water vapour of many Jupiter-family comets closely matched those found in Earth’s water. To explore this connection further, NASA planetary scientist Kathleen Mandt and her team used advanced statistical techniques to analyse data from Comet 67P.

The findings revealed that deuterium-rich water was more closely associated with dust grains around the comet than previously understood. Because water with deuterium is more likely to form in cold environments, there’s a higher concentration of the isotope on objects that formed far from the Sun, such as comets, than in objects that formed closer to the Sun, like asteroids.

Measurements within the last couple of decades of deuterium in the water vapor of several other Jupiter-family comets showed similar levels to Earth’s water.

This discovery not only strengthens the idea that comets helped deliver water to Earth but also provides valuable insight into how the early solar system formed. By studying the molecular makeup of comets like 67P, scientists can better understand the processes that shaped our planet and its oceans billions of years ago.

Mandt expressed her excitement about the results, saying, “This is just one of those very rare cases where you propose a hypothesis and actually find it happening.” The research also shows how studying comets can help unravel mysteries about the building blocks of the solar system.

ALSO SEE: Uranus Is Hiding 8000-Km Deep Ocean? New Study Presents Thrilling Hints

ALSO SEE: Webb Telescope Sees World That Could Reek Of Burnt Matches And Rotten Eggs

(Image: NASA)





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Chainalysis permanently parts ways with its founding CEO

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Michael Gronager, the co-founder and longtime CEO of Chainalysis, has agreed to leave the company permanently, two months after taking a temporary personal leave of absence.

Chainalysis, a buzzy 10-year-old, New York-based blockchain data platform, will now be led by co-founder Jonathan Levin, as Levin told TechCrunch, explaining that on Tuesday, its board of directors gave him Gronager’s job. But Levin, who has long served as the outfit’s chief strategy officer, will do more than run the company as CEO; he will also maintain his other roles.

“I’ve been running R&D, and I think the CEO should be the chief product officer, so I’m making no changes to our R&D leadership team; it will continue to report directly to me,” he said in an interview on Wednesday.

Levin declined to provide more information about Gronager other than to say that Gronager is also no longer on the Chainalysis board but retains his equity in the company.

A message to Gronager on Wednesday from TechCrunch went unreturned.

Asked about Chainalysis’ financial health, Levin said the startup is “continuing to invest in our growth,” and that “we don’t need to raise capital. We raised $175 million in 2022 and [still] feel strong about the cash position of company.” He added that his focus will be on “executing, the expansion of our risk platform, and going deeper with our government clients across the world to ensure they can deal with the increased demand of crypto.”

Chainalysis, whose early investors include Benchmark, was valued by investors at $8.6 billion during that 2022 funding round. Crypto investor Katie Haun, who first discovered Chainalysis in her capacity as federal prosecutor, reportedly began buying up secondary shares of the company at a valuation of $2.5 billion this past April.

Considered a “crypto detective,” one whose clients include the U.S. government and a wide range of corporations, Chainalysis in late 2023 laid off slightly more than 15% of its staff of 900, with plans to focus more squarely on government contracting, according to The Block.

The entire crypto industry has been in bounce-back mode in more recent weeks, as the incoming Trump administration signals a far friendlier stance toward digital currencies. The most obvious proof point: The price of bitcoin reached a record high of $100,000 on Wednesday.

Above: Levin at a StrictlyVC event hosted by TechCrunch in November 2024.



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Zopa, the UK neobank, snaps up $87M at a $1B+ valuation, eschewing the IPO route

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Some believe Klarna’s planned IPO in 2025 could set the stage for other fintech startups to go public. But with the tech IPO market still sluggish, one of the candidates hotly tipped to follow suit has instead just announced a fundraise, and its CEO says going public is “not a priority.” Zopa, the U.K. neobank […]

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