The GID Report #5 — globaliD helps dogs, Jack+Greg, Fed is slow/fast, and Telegram v. FB
Welcome to The GID Report, a biweekly update that includes globaliD team news, market perspectives, and industry analysis. Check out the last report here.
This week, we’ll be covering:
- CUDDLY + globaliD = CUDDLYID
- Jack Dorsey and Greg Kidd
- Fed’s slow plan for faster payments
- Telegram’s crypto v. Facebook’s Libra
- The state of passwords
- Apple’s shiny new credit card
- This week in privacy and identity
- This week in Libra
- Stuff happens
1. CUDDLY + globaliD = CUDDLYID
Last week, CUDDLY announced their partnership with globalid, unveiling their product for making the cat and dog adoption process safer and more seamless. It’s called CUDDLYID.
Check out the press release:
And our blog post:
2. Jack Dorsey and Greg Kidd
Also, a Yahoo profile on Jack Dorsey featuring plenty of Greg Kidd has been getting a lot of play. It was linked in last Friday’s Money Stuff (Matt Levine’s Wall Street newsletter that I follow religiously) and also highlighted in this morning’s NYT Dealbook Briefing:
Not everyone thinks that slow pace is a bad thing. “Jack’s at a slower pace where he’s noticing things that the rest of us don’t notice,” Greg Kidd, an early investor in both Twitter and Square, told Mr. Parloff. “That’s extremely valuable to society.”
From the piece:
Dorsey’s interest in “dispatch” — monitoring messengers and police cars and so on — persisted. He learned about a company in New York called Dispatch Management Services Corp. (DMS), which would soon go public. He hacked into its website, contacted its chairman, explained the software vulnerability, and asked for a job.
DMS’s chairman was Greg Kidd. Kidd had come to dispatch circuitously. After graduating from Brown, he had become an instructor for Outward Bound; had competed as a Pro-Am bike racer; had graduated from the Yale School of Management; and had then logged in six years with Booz Allen, including work on financial services in the U.S. and Australasia. Since couriers deliver checks, he became involved in optimizing courier routes. He and some partners then built dispatch software, based on a novel auction marketplace concept he’d first encountered in New Zealand, and then expanded worldwide under the DMS banner.
From their first conversations, Kidd says, it became clear that Jack was “a kindred soul.” “It wasn’t so much that [Dorsey] was a hacker,” he explains. “That just told me he could code. The real point is that someone else was interested in dispatch. That’s a fairly narrow field. It was clear he’d thought about it. And he was thoughtful about it.”
Pretty neat. Greg’s referenced the piece 30+ times! Check it out.
In other Dorsey-related news (via Greg). Square cash is hip:
3. Fed’s slow plan for faster payments
The big story last week was that the Fed unveiled plans for a faster payments system.
So what did we learn? First, everyone understands that faster payments is a necessity. Second, banks didn’t want this as it competes with their own system. Third, that’s also exactly why the Fed deemed it necessary to move forward — as it became clear that no alternative system would ever come about otherwise. The main kicker? We’re still 4–5 years away. Which is… kind of ridiculous?
On unhappy banks:
Big banks had waged a lobbying effort to stop the Fed from developing the new system. The banks, including Citigroup Inc., U.S. Bancorp and JPMorgan Chase & Co., have invested a total of about $1 billion in their own instant-payments system, launched in 2017 and operated by Clearing House Payments Co. They argued a competing Fed system would delay the spread of faster payments, with some smaller banks likely to wait until the central bank launches its system.
On banks feeling the heat from fintech and Facebook:
Thousands of community banks still don’t have access to a real-time settlement system for small consumer and business transfers at a time when PayPal Holdings Inc. ’s Venmo and other technologies allow users to send money instantly.
The banking industry is also facing competition from other payments technologies that are outside the traditional financial system, such as Facebook Inc. ’s cryptocurrency project Libra.
Nothing we didn’t already know. People expect better. The Fed gets it. But the Fed is slow. Banks get it too. And banks are scared because they can smell what’s coming.
Re: what’s coming — via Jeff: Ripple eyeing ‘multiple’ deals after MoneyGram investment
Additional reading: Speech by Governor Brainard on delivering fast payments for all
4. Telegram’s crypto v. Facebook’s Libra
Greg shared this very nifty breakdown comparing Telegram’s crypto offering versus Facebook’s Libra — Telegram Vs. Facebook: The Ultimate Showdown for Crypto Supremacy
It’s worth checking out. But for a quick breakdown, this graphic is super helpful. Also, spoiler alert: the piece positions Telegram as the good guys, and given Facebook’s history and reputation, no real surprise there:
5. The state of passwords
Here’s an interesting study on where we are with passwords — Customer Authentication Practices 2019 Survey | ThumbSignIn
- Respondents are more interested in biometrics for user experience (100%) than they are for security purposes (75%)
- Password+2FA (36%) is on its way to overtake password-only (40%) for website authentication
- In the next few years, passwordless biometrics (21%) will be the second fastest growing authentication method behind 2FA (29%)
- 76% think complexity of implementation is a top-of-mind issue when implementing biometrics or 2FA
- Facial recognition is by far the most widely considered type of biometric authentication
- 64% of respondents feel FIDO is necessary or a good-to-have standard
- More than 60% of the companies surveyed are already using strong authentication and 29% are looking to implement or expand their use of 2FA
- The next touchpoints that are a focus for better security are workflow authentication (68%) and call centers (65%)
6. Apple’s shiny new credit card
Apple’s credit card is out. Which is neat because it’s probably the first mainstream card product that provides a new perspective and creates new expectations on what we expect from our cards.
7. This week in privacy and identity:
Via Rebecca — I Shared My Phone Number. I Learned I Shouldn’t Have.
8. This week in Libra
9. Stuff happens
Greg Kidd — Co-Founder and CEO, globaliD
Rebecca Schwartz — Product Manager
Vadim Slavin — Director of Attestations
Beth Haiken — New Rail Payments