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Apps

Crowded’s app gives clubs, associations banking flexibility • ZebethMedia

Crowded, a free banking app targeting member-based nonprofit organizations, like fraternities, sororities and booster clubs, closed on $6 million to continue developing its suite of banking and member management tools. Organizations often open banking accounts at nearby institutions, while some groups, like fraternities, sororities and on-campus clubs, are required to bank through their student activities, but without many of the features of modern banking. Crowded co-founder and CEO Daniel Grunstein told ZebethMedia that the company designed its mobile app for the specific needs of club treasurers so they can perform duties, for example, requesting and collecting member dues and tax reporting, digitally versus physically sending out notices to pay each month. The company is entering somewhat of a “crowded space” for organization management. For example, Heylo raised $1.5 million in seed funding this year for its member coordination app, while OurHouse and OmegaFi specifically target fraternities and sororities. Crowded offers both physical and virtual debit cards for its members, but organizations can also link their own existing bank accounts. One of the ways Grunstein says his company differs is that rather than charge subscription fees, Crowded collects interchange fees from merchants when those debit cards are used to make purchases. It also charges processing fees for member payments at around 3% or $5 per payment, which Grunstein said is lower than the industry average of 8%. Crowded co-founders, from left, Dvir Hanum, Daniel Grunstein and Darryl Gecelter. Image Credits: Crowded Grunstein started the company with Dvir Hanum, Darryl Gecelter and Dor Kleinmann in June 2021. The founders were previously in either financial technology or from alumni network tech. Grunstein himself has a background in fintech and enterprise software, previously working with JP Morgan Chase. “I was really focused on traction, as a service, and trying to advocate for that within a bank,” he said. “It made me put two-and-two together and realized that this is a way to solve some of the headaches I had and go top-down within a national organization.” Meanwhile, after launching a year ago with five customers, Crowded has grown into 300 chapter customers using the platform, with letters of intent signed with another 1,200 chapters. The company’s seed round was led by Garage and included Deel co-founder Philippe Bouaziz, Innoventure Partners’ Michael Marks and a group of former bank executives. The new funding will be deployed into building out the platform, marketing and compliance as it pertains to nonprofit finances. The platform was previously in closed beta, but Grunstein wants to open it up and continue building out features, including automation from the customer side. He also said the company was on its way to traction of $1 million annual recurring revenue. “We are working on completing the build of features so that what our customers do at a regular bank they can do with us,” he added. “We also want to add a self-service component, get into new markets, continue to grow in colleges and diversify our customer base. We will plan to do a Series A next year if we can meet those milestones.”

Twitter’s Elon problem could soon become Apple’s Elon problem, too • ZebethMedia

Reports indicate Elon Musk is on track to close his purchase of mildly popular bird website Twitter dot com as of this Friday, which is when he’s been ordered by the judge in the ongoing legal fracas to do so anyway. The deal closing is bound to have huge impacts, for Twitter employees themselves; for global political leaders; for news media; and potentially, for Apple and its escalating in-app-purchase land grab. Apple updated its developer guidelines this week, mending the wall on its garden where there gaps existed previously around digital revenue opportunities for third-party developers. One of these focused on crypto and NFTs, but another seeks rent on revenue made by social networks around promoted posts, including paid promotional efforts in Meta’s Facebook and Instagram apps, for example. Those rules also apply to Twitter, but that social network already makes use of Apple’s IAP program to enable them on iOS devices, meaning the iPhone-maker already gets its cut. If Twitter’s already cool with Apple’s skim, then everything should be fine… except that Musk has waded into the wider debate about what’s fair for Apple to charge its partners when it comes to digital transactions on its platform. Early on Wednesday, the billionaire serial founder tweeted a response to his longtime investor Bill Lee agreeing that “30% is a lot” for Apple to charge developers for IAP transactions. This isn’t the first time he’s expressed disapproval of the fee, either. Right now, Musk has little stake in this fight, but come Friday that could change significantly, especially as he looks for ways to boost Twitter’s revenue once he takes over control. Apple already has its fair share of influential vocal developer opposition, including Epic’s Tim Sweeney and Spotify’s Daniel Ek, but the influence Musk wields with his zealous troll army is on another level entirely. A Musk-owned Twitter is going to have ripple effects that extend far and wide, but this could be one that shakes up some of the foundations upon which the modern tech ecosystem is based.

Apple exec says future iPhones will comply with EU’s USB-C mandate • ZebethMedia

There has been a lot of consumer demand and regulatory push on Apple to change the iPhone’s charging port from the lightning connector to USB-C. Earlier this month, the European Parliament voted in favor of the legislation that mandated phonemakers to adopt USB-C connectors from 2024 — increasing pressure on the tech giant to make the switch. Greg Joswiak, Apple’s senior Vice President of marketing, confirmed on Tuesday that the company will comply with EU’s ruling, but stopped short of sharing any other detail. Speaking at Wall Street Journal’s WSJ Tech Live event, Joswiak didn’t seem pleased with how governments across the world are approaching this issue. A decade ago when the EU was pushing for micro USB connectors the firm had a disagreement with them, he said. While the regulatory body’s aim was to reduce the type of power adaptors consumers were using to make it easier on them, Apple approached the problem differently, he mentioned. Apple debuted the lightning connector almost 10 years ago and it has been the primary connector for many devices including the iPhone, the iPad, and Airpods. Over the last couple of years, Apple has launched iPads using USB-C as the primary connector — including the latest baseline iPad. “…we got to a better place which is power adapters with detachable cables. All of them being USB-A or USB-C and you choose the cable which is appropriate for your device. That allowed over a billion people to have that (lightning) connector and to be able to use what they have already and not be disrupted and cause a bunch of e-waste,” Joswiak said. The EU is not the only region pushing for a common charger for mobile phones. In June, Democratic senators including Bernie Sanders, Elizabeth Warren, and Ed Markey sent an open letter to Commerce Secretary Gina Raimondo pushing the US to follow the EU’s steps. Other countries like Brazil and India are considering a common connector rule.

Lyft relaunches monthly subscription plan at half the price • ZebethMedia

Ride-hail giant Lyft has relaunched Lyft Pink, its monthly subscription plan, at half of its previous price. At $9.99 per month or $99 per year, the new membership offers perks like free priority pickups and a discount of “at least” 5% on Preferred, Lux and XL rides, the company said Tuesday. Members will also receive three free cancellations per month, a free monthly bike or scooter unlock, free Sixt car rental upgrades, roadside assistance for your own car up to four times per year and Grubhub+ discounts. Previously, Lyft Pink provided members with discounts on all rides. The company said, on average, members saved $29 per month on rides, excluding the cost of membership. So really they saved $19 on rides on average. Lyft is also pushing a higher tier or membership for riders who like to get on bikes and scooters. The Lyft Pink All Access plan, at $199 per year, has all the perks of Lyft Pink with unlimited 45-minute pedal bike rides, free unlimited e-bike and scooter unlocks, discounted e-bike or scooter minutes in participating cities, and three bike or scooter guest passes per year, according to Lyft. Top drivers enrolled in Lyft Rewards, the ride-hail company’s rewards program for drivers, will now also have access to a free monthly Lyft Pink membership, the company said. In advance of third-quarter earnings, Lyft is putting in work to get more riders on board and increase its margins. The company last week raised the service fee it collects from riders to combat the rise in insurance fees.

New Zealand Uber drivers win case declaring them employees • ZebethMedia

A group of Uber drivers in New Zealand won a landmark case Tuesday against the ride-hail company which will force Uber to treat them as employees, rather than independent contractors. New Zealand’s employment court decision only applies to four drivers who were part of a class action lawsuit filed last July, but the ruling may have wider implications for drivers across the country keen on qualifying for worker rights and protections. The move in New Zealand comes just a couple of weeks after the U.S. Department of Labor proposed widespread changes to how gig workers should be classified. Specifically, the proposed ruling seeks to classify gig workers as employees if they are economically dependent on the company for which they work. The formal decision in New Zealand was made in respect to the individual drivers in the case. The court doesn’t have jurisdiction to make broader declarations of employment status for all Uber drivers, according to chief employment court judge Christina Inglis. That means all other Uber drivers don’t immediately become employees; however, Inglis did say the decision “may well have broader impact” because of the “apparent uniformity in the way in which the companies operate, and the framework under which drivers are engaged.” In the ruling, the Employment Court said that even though a worker’s contract might define them as an independent contractor, that definition depends more on the “substance of the relationship and how it operated in practice.” “The Court accepted that some of the usual indicators of a traditional employment relationship were missing,” reads the ruling. “However, it was found that significant control was exerted on drivers in other ways, including via incentive schemes that reward consistency and quality and withdrawal of rewards for breaches of Uber’s Guidelines or for slips in quality levels, measured by user ratings.” The court found that Uber had sole discretion to control prices, service requirements, guidelines, terms and conditions, marketing, relationships with riders and more. “Uber was able to exercise significant control because of the subordinate position each of the plaintiff drivers was in and which its operating model was designed to facilitate and did facilitate,” according to the ruling. Two unions, First Union and E tū, took up the case last year on behalf of more than 20 drivers. Their goal was to override a legal precedent set in the Employment Court in 2020 that ruled a driver was not an employee. Labor rights activists argued there, as in the U.S. and everywhere else, that because an Uber driver’s rate is set by Uber, the company controls wages, which puts it in employer territory. At the time, the judge ruled that the driver actually had control over their wages because they could be paid less or improve the profitability of their business through adopting cheaper business costs. Tuesday’s ruling will grant the drivers in the case sick leave, holiday pay, minimum wage, guaranteed hours, KiwiSaver contributions, the right to challenge an unfair dismissal and the right to unionize, according to New Zealand’s labor laws. First Union is now accepting Uber drivers to join as members for a discounted fee of $3.05 per week and would move to initiate collective bargaining. The union says Uber drivers may be owed backpay for lost wages, holiday pay and other entitlements. “This is a landmark legal decision not just for Aotearoa but also internationally,” said Anita Rosentreter, First Union strategic project coordinator, in a statement.  Uber did not respond in time to ZebethMedia for a comment, but a spokesperson for the company told The Guardian that the company would be appealing the decision, and that it was “too soon to speculate” how the court ruling would affect the company’s operations in New Zealand more broadly. The decision in New Zealand is the latest in a string of international cases where workers have fought for employment rights from gig economy companies. Last December, the U.K. High Court dealt a massive blow to Uber by declaring the business was unlawful and by classifying gig workers as “workers,” a new classification that allows for the flexibility of independent contract work and the rights of employee status. Last year, an analysis from the International Lawyers Assisting Workers Network, a membership organization of trade union and workers’ rights lawyers, showed gig companies like Uber and Deliveroo had faced at least 40 major legal challenges in 20 countries, including Australia, Brazil, Canada, Chile, South Korea and across Europe.

Amazon now allows customers to make payments through Venmo • ZebethMedia

Amazon announced that it will now allow customers to make payments through Venmo on its platform. The company said this option will be available to select customers starting today and will roll out to all U.S.-based users on the Amazon site and mobile app by Black Friday next month. To pay through Venmo, users will need to first add their account. During checkout on Amazon, users can select “Select a payment method” and then “Add a Venmo account.” This will redirect them to the Venmo app, where they can complete the authentication. Users can also choose Venmo to be their default payment method for Amazon purchases on that screen. While paying with Venmo on Amazon, customers can use their Venmo balance, linked bank account or eligible debit card to complete the transaction. “We want to offer customers payment options that are convenient, easy to use, and secure—and there’s no better time for that than the busy holiday season. Whether it’s paying with cash, buying now and paying later, or now paying via Venmo, our goal is to meet the needs and preferences of every Amazon customer,” Max Bardon, vice president of Amazon Worldwide Payment said in a statement. The e-commerce platform already offers different payment methods like credit and debit cards from networks like Visa, Mastercard, American Express, Diner’s Club and JCB. A recent survey named “Netfluential and Edison Trends PayPal and Venmo Study” noted that Venmo users shop two times more frequently than an average shopper. So that might be beneficial for Amazon in terms of increasing the number of transactions on its platform. Amazon is set to announce its Q3 2022 results this week with expected revenues of $125 billion to $130 billion. Notably, this quarter also included its Prime Day sales held in July.

Apple’s iMessage and FaceTime are down for some users • ZebethMedia

First, WhatsApp went down this morning. Now, Apple’s iMessage and FaceTime appeared to experience an outage in the U.S. this afternoon. Several Twitter users noted they were having trouble sending messages and connecting on the services and Apple’s System Status dashboard marked iMessage and FaceTime as having issues. “Some users are affected,” the status said. Now the status has changed to resolved. Notably, WhatsApp was down for two hours earlier in the day. Meta has since resolved the issue. This story is developing…

Google hit with $113 million fine in India for anti-competitive practices with Play Store policies • ZebethMedia

India’s antitrust watchdog has hit Google with $113 million fine for abusing the dominant position of its app store, the second such penalty on the Android-maker in just as many weeks in the key overseas market. The Competition Commission of India, which opened the investigation in late 2020, said mandating developers to use Google’s own billing system for paid apps and in-app purchases through Play Store “constitutes an imposition of unfair condition” and thus violates provisions of the nation’s Section 4(2)(a)(i) of the Act. The investigation also found: Google is found to be following discriminatory practices by not using GPBS for its own applications i.e., YouTube. This also amount to imposition of discriminatory conditions as well as pricing as YouTube is not paying the service fee as being imposed on other apps covered in the GPBS requirements. Thus, Google is found to be in violation of Section 4(2)(a)(i) and 4(2)(a)(ii) of the Act. Mandatory imposition of GPBS disturbs innovation incentives and the ability of both the payment processors as well as app developers to undertake technical development and innovate and thus, tantamount to limiting technical development in the market for in-app payment processing services. in violation of the provisions of the Act. Thus, Google is found to be in violation of the provisions of Section 4(2)(b)(ii) of the Act. Mandatory imposition of GPBS by Google, also results in denial of market access for payment aggregators as well as app developers, in violation of the provisions of Section 4(2)(c) of the Act. The practices followed by Google results in leveraging its dominance in market for licensable mobile OS and app stores for Android OS, to protect its position in the downstream markets, in violation of the provisions of Section 4(2)(e) of the Act. Different methodologies used by Google to integrate, its own UPI app vis-à-vis other rival UPI apps, with the Play Store results in violation of Sections 4(2)(a)(ii), 4(2)(c) and 4(2)(e) of the Act. India is Google’s largest market by users. The company has poured billions of dollars in the South Asian market over the past decade as it aggressively searched to find major untapped regions worldwide to supercharge its growth. The company reaches nearly all of India’s 600 million internet users. Android commands 97% of the local smartphone market. Google has pledged to invest $10 billion in India over the coming years. It has already invested up to $5.5 billion in the local telecom giants Jio Platforms and Airtel. On Thursday, the competition regulator fined Google $161.9 million for anti-competitive practices related to Android mobile devices and made a series of stringent redressal measures. The watchdog was investigating whether Google had assumed dominant position in five different markets: licensable OS for smartphones, app store, web search services, non-OS specific mobile web browsers and online video hosting platform in India. Google was dominant in all of those relevant markets, the regulator concluded. The antitrust watchdog said that device manufacturers should not be forced to install Google’s bouquet of apps and the search giant should not deny access to its Play Services APIs and monetary and other incentives to vendors. Amazon told the regulator that over half a dozen hardware vendors had indicated that they could not enter into a TV manufacturing relationship with the e-commerce group over fear of retaliation from Google. (More to follow)

Apple cracks down on NFT functionality, social post boosts with App Store rules • ZebethMedia

Apple rolled out software updates — iOS 16.1, iPad OS 16.1, and macOS Ventura — to all users on Monday. It also introduced new App Store rules that limit features unlocked through NFTs and mandates apps to use Apple’s payment method to purchase “boosts” for posts on social media. NFTs The company said apps are allowed to list, mint, and transfer, and let users view their own NFTs (Non-Fungible Tokens). However, the ownership of NFTs shouldn’t unlock any more features within the app. Plus, these apps can let users browse other collections but they shouldn’t show external links, buttons, or call to action to purchase NFTs. Users can only purchase NFTs through Apple’s in-app payment system. The company is also prohibiting apps to use other mechanisms such as QR codes or cryptocurrencies to give special access to users. “Apps may not use their own mechanisms to unlock content or functionality, such as license keys, augmented reality markers, QR codes, cryptocurrencies and cryptocurrency wallets, etc,” it said. Folks from the industry pointed out that these changes could have serious implications on the functionality of web3-dependant apps (including games) within the Apple ecosystem. Until now, they might be used NFTs as a way to thwart Apple’s App Store fees and simultaneously as a token or key to unlock features for users — but that won’t be allowed anymore. Notably, Meta has started rolling out features for users to show off their NFTs across both Instagram and Facebook. The company has also expressed a desire to open a marketplace for artists to sell their digital creations. But this step from Apple means it might have to pay App Store fees if the marketplace is made available on iOS. Crypto exchanges The company is also cracking down on cryptocurrency exchanges as it now mandates them to have “appropriate licensing and permissions to provide a cryptocurrency exchange” in all regions they operate in. So Apple now has the power to remove a crypto exchange from a local App Store if it deems the app to be illegal for that region. Social media boosts With new App Store rules, Apple said that marketers don’t need to use in-app purchases to manage and purchase campaigns across different media types like TV, apps, and outdoors. However, they will have to use Apple’s in-app purchase system to buy boosts for social media posts— this would only apply to apps offering in-app tools for promoting posts. That means Apple will take a cut out of those sales, which might result in platforms hiking boost fees. This could impact companies like Meta, TikTok, and Tinder, which offer in-app boosts. Resellers: Depop, etsy, poshmark (ebay?)Dating apps: hinge, tinder, bumbleInfluencers: Tik Tok, Instagram, tumblr all have very low scale quick ways to boost your posts. Tik Tok screenshot below pic.twitter.com/t0ZX6YflHd — eric xcx (@ericherber) October 24, 2022 Other changes Apple has now included concepts that gain profit from current events such as “violent conflicts, terrorist attacks, and epidemics” under the objectionable content section. Apple is also adding ‘hookup’ apps or apps “that may include pornography or be used to facilitate prostitution or human trafficking and exploitation” in the objectionable content section. The company is prohibiting apps from unauthorized usage of music from iTunes or Apple Music as a soundtrack for a game or as background music to a video or a picture collage. Smart home apps that support the Matter IoT standard must use Apple’s support framework to initiate pings. Developers must provide a full-access to App Store reviewers through an active demo account or demo mode so they can test account-based functionalities. Over the last few years, Apple has had to reduce its App Store fees and allow third-party payment systems for in-app purchases in many regions across the world. With these new rules, the company has added new possible ways to earn money using the App Store. These changes have also brought back concerns regarding Apple’s anti-competitive practices and its tight control over how apps conduct their business on the App store.

WhatsApp appears to be facing an outage • ZebethMedia

WhatsApp, the Meta-owned instant messaging app with over 2 billion users, appears to be facing an outage, according to users. DownDetector and WaBetaInfo, two web services that track the Facebook service, have confirmed the outage. The outage began about half an hour ago, according to user complaints. DownDetector shows that users in the U.S. and India are mostly impacted by the outage. (More to follow)

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