Visa hub to unify its commercial payments ecosystem

Visa has announced a new commercial payments ecosystem, the Visa Commercial Solutions Hub. This strategic initiative aims to provide financial institutions and businesses efficient access to a wide range of commercial payment solutions, complementary capabilities and integrations into a range of fintech services, making it easier for them to manage their commercial payments.

The VCS Hub will be an integrated platform, which the card company says will provide a more modern, personalised and consistent experience for users to easily navigate and accomplish key payment-related tasks. Through a single sign-on structure, efficient onboarding process and a menu of services to choose from, users can expect a faster and enhanced experience.

Commercial payments represent a $145 trillion market opportunity globally, but existing platforms tend to be targeted to, or specialised across, a specific use case or segment. Users often have to go to disparate environments to access the range of solutions they need. Leveraging Visa’s global network, solutions and partnerships with key fintech providers, the VCS Hub will deliver a unified experience at a large scale.

The VCS Hub is moving into an initial pilot phase this month, focused on an enhanced and expanded B2B payables experience. As the VCS Hub continues to expand in 2025, the firm will provide additional details.

“We hear regularly from our customers, and the customers of our customers, that they want and need seamless access to - and management of - their commercial payment solutions,” said Gloria Colgan, SVP and Global Head of Product, Visa Commercial Solutions. “The Visa Commercial Solutions Hub will enable better visibility and faster decision-making for our customers, all within a sleek new interface designed with them in mind.”

 

M&A momentum is strong and likely to continue

Mergers and acquisitions activity is steadily returning to “normalised” levels despite the persistence of high interest rates, heightened regulatory concerns, and dozens of national elections around the world. As a monthly average, the number of transactions in the first half of 2024 rose by 16% compared to the first half of 2023. The overall volume rose from a monthly average of $265bn in 2023 to $275bn in the first half of 2024, according to Dealogic.

“Appetite from corporate acquirers to add to their portfolio through M&A remains strong,” said Mark Sorrell, global co-head of M&A at Goldman Sachs Global Banking & Markets, adding that secondary buyout deals (struck between private equity firms) might gather steam as valuation gaps narrow.

At least 20 transactions worth more than $10bn each were announced in the first half of 2024, signalling the return of large-scale M&A. A 14% rise in transaction counts in the Americas and a 22% uptick in Europe YoY suggest a surge in the positive momentum through to the end of the year, particularly as Goldman Sachs economists forecast an encouraging macroeconomic outlook on the horizon, with a focus on GDP growth, lower inflation, and lower interest rates.

Dealmaking activity has particularly picked up in technology, media, and telecommunications (up 57% year on year), financial institutions (up 37%), and industrials (up 16%). The buzz around AI is forcing the emergence of creative deal structures to support large investments in early-stage companies, although maturation of legal regulatory frameworks is still necessary to provide investor clarity.

Driven by record levels of unspent capital – or “dry powder” – sponsor-related M&As rose 50% from the first quarter of 2024 to the second. The first six months of the year witnessed the second-highest number of announcements in taking companies private compared to any half-year period historically. The secondary market has also been very active, with a record volume in the first half of 2024 of nearly $70bn across both GP-led and LP transactions. GP-led transactions are forecast to accelerate through the remainder of 2024.

Additionally, as the third quarter completes, there has been a continued building of activity with Q3 transaction volumes up 22% and number of transactions up 17% so far. While headlines were dominated by large-scale M&A in Q1, the current quarter has showcased a 30% uptick in transactions between $1-5bn.

 

Permanent salary growth falls again as UK labour market continues to soften

The KPMG and REC, UK Report on Jobs survey, compiled by S&P Global, indicated a further reduction in permanent placements during September, extending the current run of contraction to two years. According to recruitment consultants, clients were cautious in their assessment of the outlook and reluctant to hire staff. Temp billings were also lowered for a third successive month.

Although finding suitable candidates remained challenging, a general expansion of staff availability and reduced demand weighed on permanent salary growth during September. The latest data showed the weakest rise in salaries for over three-and-a-half years. Temp rates were fractionally lower. Vacancy numbers meanwhile declined for an eleventh successive month during September, with falls recorded for both permanent and temp workers.

The latest KPMG/REC Report on Jobs survey indicated a further fall in the number of permanent staff placements. The downturn in appointments now extends to two years, although the latest contraction was slightly softer than August’s five-month record.

Uncertainty in the outlook, including around government policy ahead of late October’s Budget, meant companies were cautious in their hiring activity. Temp billings also declined in September, and at the steepest rate since April. 

Although there remained reports of shortages in suitable candidates, which helped to boost pay rates, permanent staff salary growth eased again in September. It was the third month in a row that salary inflation has fallen, and September’s reading was the lowest since February 2021. A greater number of candidates and reduced demand helped to limit pay growth, according to panellists. Temp rates meanwhile were fractionally lower, putting an end to a three-and-a-half-year run of inflation.

The latest survey data showed an eleventh successive monthly fall in staff vacancies. Moreover, the pace of contraction accelerated to the steepest since March. Both permanent and temp vacancies declined at similarly modest rates during September. 

Amid reports of increased redundancies and lower demand for workers, the overall availability of staff to fill positions increased again in September. Overall growth was again steep, despite easing to its lowest level since February. Similar trends were seen for both permanent and temporary workers.

 

US small business spend shifted to services in September

Fiserv has published the Fiserv Small Business Index for September 2024, an indicator of the pace and mix of consumer spending at small businesses in the US at national, state and industry levels.

Nationally, the seasonally adjusted Fiserv Small Business Index in September was 141, reflecting three straight months of steady consumer spending. On a year-over-year basis, both small business sales (up 1.8%) and total transactions (up 4.0%) grew compared to 2023. Month-over-month sales (up 0.1%) and transactions (down 0.6%) remained relatively flat compared to August.

Nationally, the Fiserv Small Business Index for Retail Trade was 144, a two-point decline from August. Year-over-year sales (up 0.6%) and transactions (up 4.6%) both grew as average ticket sizes (down 4.0%) declined. Spending in almost every area of retail remained up on a yearly basis, with the exception of Gasoline Stations (down 7.7%) and Motor Vehicle and Parts Dealers (down 1.3%), where average ticket size per transaction has trended lower despite transactions remaining steady. Year over year, the fastest-growing retail categories were General Merchandise (up 6.2%), Food and Beverage Retailers (up 4.2%) and Health and Personal Care Retailers (up 3.8%).

On a monthly basis, Retail Trade (down 1.7%) cooled off after a strong August, primarily attributed to less foot traffic (down 1.3%). The average ticket size also notched lower (down 0.3%). Building Materials and Garden Equipment (up 0.1%) was the only retail category to grow sales compared to August; Gasoline and Fuel Dealers (down 3.3%) and Food and Beverage Retailers (down 1.9%) saw the biggest declines.

Food Services and Drinking Places, which includes restaurants, indexed at 125 in September, a 1-point decline compared to August. Year over year, restaurants saw strong growth in both total sales (up 2.6%) and foot traffic (up 3.3%); average ticket size declined slightly (down 0.7%). On a monthly basis, restaurant sales (down 1.0%), transactions (down 0.1%), and average ticket size (down 0.9%) also saw small declines.

“This month’s index shows that consumer spending is holding steady, a positive sign as small business owners flip their calendar to the fourth quarter and get ready for the 2024 holiday season,” said Jennifer LaClair, Head of Merchant Solutions at Fiserv.

 

Danske Bank and Klarna first to make recurring payments via Swish

A new service for recurring and automatic payments for Swish users is going live with its first two banks, Danske Bank and Klarna, who can now offer the service to their corporate customers.

“Trying to keep track of which subscriptions and other automatic payments you have can be tricky,” noted Urban Höglund, CEO of Swish. “With this service, we enable users to pay with Swish in even more situations and at the same time help them get a better overview and control of their recurring payments.”

The service will allow consumers to let businesses withdraw money automatically, without having to sign the payment each time, such as for subscriptions and monthly giving. Consumers get an overview in the Swish app of which companies they have given permission to withdraw money automatically. The roll-out of the service will take place gradually, starting in the autumn.

“We want to continue to grow our offering to corporate customers with new solutions that make it easier to do business and that can be integrated with our business platform,” said Tom Lundqvist, Head of Cash Management Sales at Danske Bank in Sweden.