Forbes - How Klarna Plans To Replace Your Credit Card 4min

It’s gunning for the $93 billion U.S. market for credit card issuing, an industry that’s dominated by giants such as American Express and Capital One, with PayPal and ambitious startups in close pursuit. Like PayPal, Klarna is an online-payments platform with an emphasis on “buy-now-pay-later” financing. … His dream is that enough merchants embrace Klarna as a free-floating credit issuer so that millions of shoppers will no longer see credit cards as a first choice for financed payments. ... Siemiatkowski has spent the past 11 years quietly turning Klarna into his home country’s biggest digital-payments platform. Klarna processes 40% of all Swedish online payments. Klarna’s big selling point is ease and simplicity. It lets you skip paying for an item up front–no more squinting at a credit card, typing in numbers and remembering a password. You simply enter your e-mail and delivery addresses. That information, plus your activity on an e-commerce site time of day, the product you’re buying and any Web cookies that can be picked up from your visit? is enough for Klarna to decide whether you’re a creditworthy human. Siemiatkowski calls this a “one click” experience. ... Remarkably, Klarna’s bold bet on people’s honesty and solvency has worked. Its default rates are under 1%. Credit card default rates in the U.S. have averaged 2.2% for 2016. ... Siemiatkowski would rather trust his customers than see them walk away at a checkout: 69% of online shoppers in the U.S. abandon their shopping carts, often because they’re asked to create an account or the process takes too long. That’s around $260 billion in lost orders.

Wired - How Facebook Is Transforming Disaster Response 16min

For years now, social media has been where people go to find out what’s happening during a crisis; even aid agencies and emergency managers have come to rely on hashtags and live video to form a picture of how an event is playing out on the ground. But the hail of updates can be rapid and incoherent. ... sometimes there’s no information coming out of a disaster zone—because the internet has gone down, as happened in large parts of New York and New Jersey when Hurricane Sandy landed in 2012. This is another fundamental problem that Facebook is, almost by coincidence, working to solve. For the past two and a half years, the company has been developing a program to deliver the internet via drone to parts of the world that don’t have it. The business reason for this fanciful-sounding project is pretty straightforward: It will speed up Facebook’s efforts to expand globally and serve ads to even more people in what is already the world’s largest audience. But the team has always had the idea that the same technology could be vitally important in, say, an earthquake zone. ... This new incarnation of Safety Check begins with an algorithm that monitors an emergency newswire—a third-party program that aggregates information directly from police departments, weather services, and the like. Then another Safety Check algorithm begins looking for people in the area who are discussing the event on Facebook. If enough people are talking about the event, the system automatically sends those people messages inviting them to check in as safe—and asks them if they want to check the safety of other people as well.

Bloomberg - Confessions of an Instagram Influencer 12min

There are thousands, perhaps tens of thousands, of influencers making a living this way. Some make a lot more than a living. The most successful demand $10,000 and up for a single Instagram shot. Long-term endorsement deals with well-known Instagrammers, such as Kristina Bazan, who signed with L’Oréal last year, can be worth $1 million or more. Big retailers use influencers, as do fashion brands, food and beverage companies, and media conglomerates. Condé Nast, publisher of the New Yorker and Vogue, recently announced that it would ask IBM’s artificial intelligence service, Watson, to take a break from finding cancer treatments to identify potential influencers. ... The ultimate goal: to persuade someone, somewhere, to pay me cash money for my influence. ... “You sell part of your soul. Because no matter what beautiful moment you enjoy in your life, you’re going to want to take a photo and share it. Distinguishing between when is it my life and when am I creating content is a really big burden.” ... Instagram doesn’t explicitly ban bots, but its terms of service do prohibit sending spam, which, when viewed in a certain light, is exactly what I was doing. On the other hand, except for a single user who somehow had me pegged and accused me of being a bot, nobody with whom I interacted seemed to mind the extra likes or comments. ... I was already verging into “micro-influencer” territory, a hot new field within influencer marketing where, rather than hiring one or two big-time influencers, an ad agency will simply give out free merchandise to 50 small-timers.

The Atlantic - Searching for Lost Knowledge in the Age of Intelligent Machines 21min

Yet the mystery of the mechanism is only partly solved. No one knows who made it, how many others like it were made, or where it was going when the ship carrying it sank. ... What if other objects like the Antikythera Mechanism have already been discovered and forgotten? There may well be documented evidence of such finds somewhere in the world, in the vast archives of human research, scholarly and otherwise, but simply no way to search for them. Until now. ... Scholars have long wrestled with “undiscovered public knowledge,” a problem that occurs when researchers arrive at conclusions independently from one another, creating fragments of understanding that are “logically related but never retrieved, brought together, [or] interpreted,” as Don Swanson wrote in an influential 1986 essay introducing the concept. ... In other words, on top of everything we don’t know, there’s everything we don’t know that we already know. ... Discovery in the online realm is powered by a mix of human curiosity and algorithmic inquiry, a dynamic that is reflected in the earliest language of the internet. The web was built to be explored not just by people, but by machines. As humans surf the web, they’re aided by algorithms doing the work beneath the surface, sequenced to monitor and rank an ever-swelling current of information for pluckable treasures. The search engine’s cultural status has evolved with the dramatic expansion of the web. ... Using machines to find meaning in vast sets of data has been one of the great promises of the computing age since long before the internet was built.

The Economist - Big data, meet Big Brother China invents the digital totalitarian state 9min

Despite years of economic growth, popular discontent at widespread corruption has grown stronger. A series of scandals about everything from shoddy housing to out-of-date vaccines has led to public cynicism about companies and the government’s ability to enforce rules. Social-credit scoring aims to change that by cracking down on the corrupt officials and companies that plague Chinese life. And it aims to keep a closer track on public opinion. In a society with few outlets for free expression, big data might paradoxically help make institutions more accountable. ... But it could also vastly increase snooping and social control. In other countries there have been many scare stories about Big Data leading to Big Brother. Most have proven false. But China is different. It is a one-party state, with few checks on its power, a tradition of social control and, in President Xi Jinping, a leader even more prone to authoritarianism than his immediate predecessors. The extent of social-credit scoring will depend on what the government intends, whether the technology works and how the party responds to public concerns. ... China treats personal information differently from the West. In democracies, laws limit what companies may do with it and the extent to which governments can get their hands on it. Such protections are imperfect everywhere. But in China they do not exist. The national-security law and the new cyber-security law give the government unrestricted access to almost all personal data.

Bloomberg - Netflix Wants the World to Binge-Watch 11min

For decades, Globo has had a near monopoly in Brazilian living rooms. Its channels control the broadcasting rights to many of the nation’s most popular sporting events, including the World Cup, the Olympics, and the top Brazilian soccer league. Every night about 42 million people watch Globo’s newscast. ... For the past several years, Netflix has been pouring money into Brazil. Local audiences at first met the company with skepticism, bafflement, or indifference. Over time, Netflix started to gain a following, particularly among affluent, young urbanites ... For Netflix, this Brazilian invasion is just the start. The company wants the attention of the world’s well-off cosmopolitan consumers, and is investing billions of dollars in a multifront effort to create a lingua franca of original programming, while also upgrading the world’s video streaming structure. It’s like a worldwide Marshall Plan for premium home entertainment.

ESPN - Skin in the Game 18min

The first-person-shooter game pits terrorists against counterterrorists and was played by an average of 342,000 people at once in 2016. Its biggest tournaments, such as the ELeague Major scheduled for Jan. 22-29 in Atlanta, can have million-dollar prize pools and as many as 27 million streaming viewers. An estimated 26 million copies of the $15 game have been downloaded since its debut four years ago, helping make its manufacturer, Valve, the world's leading distributor of PC titles. ... While other titles such as Call of Duty offer similar gameplay, one distinctive feature has helped fuel Counter-Strike's growth: collectible items in the game called "skins." Although they don't improve anyone's chances of winning, the skins cover weapons in distinctive patterns that make players more identifiable when they stream on services like Twitch. Users can buy, sell and trade the skins, and those used by pros become hotly demanded. Some can fetch thousands of dollars in online marketplaces. ... Valve controls the skins market. Every few months, it releases an update to Counter-Strike with new designs. It decides how many of each skin get produced and pockets a 15 percent fee every time one gets bought or sold on its official marketplace, called Steam. Valve even offers stock tickers that monitor the skins' constantly shifting values. ... Some $5 billion was wagered in skins in 2016 ... roughly $3 billion worth flows to a darker corner of the internet -- one populated by fly-by-night websites that accept skins for casino-style gaming.

Fast Company - We're All Being Recorded. Who Reaps The Rewards? 13min

Consider the number of networked cameras that capture data about you as you go about your day. Surveillance cameras are mounted in offices, stores, public transportation; on city streets, ATM machines, and car dashboards. You or your neighbors may have installed cameras to watch over your front door; you may have a webcam watching over your valuables—perhaps even your children. Security cameras are virtually everywhere, installed both to provide a record if a crime is committed and to deter people from committing a crime in the first place. Based on an exhaustive survey of the number of such cameras in one English county in 2011, it was estimated there were 2 million surveillance cameras in the United Kingdom alone—about one camera for every thirty people. ... Generalizing this to the rest of the world, there are about 100 million cameras watching public spaces, all day and all night. Yet, this is only one-tenth of the 1 billion cameras on smartphones. Within the next few years, there will be one networked camera for every single person on the planet. ... If technology continues to follow Moore’s Law, doubling the computing power available at the same price every 18 months, we will very likely be sharing the world with roughly 1 trillion sensors by 2020, in line with projections from Bosch, HP, IBM, and others. ... If everything is recorded, will it encourage "better" behavior? And how will the lack of any recording be interpreted?

Wired - Inside the Macedonian Fake-News Complex 9min

In the final weeks of the US presidential election, Veles attained a weird infamy in the most powerful nation on earth; stories in The Guardian and on BuzzFeed revealed that the Macedonian town of 55,000 was the registered home of at least 100 pro-Trump websites, many of them filled with sensationalist, utterly fake news. ... The sites’ ample traffic was rewarded handsomely by automated advertising engines, like Google’s AdSense. ... Within Veles itself, the young entrepreneurs behind these websites became subjects of tantalizing intrigue. Between August and November, Boris earned nearly $16,000 off his two pro-Trump websites. The average monthly salary in Macedonia is $371. ... It was once a town of modest glory, turning out revolutionaries and intellectuals and alive with industry. One of its largest factories, a ceramic works named Porcelanka, employed 4,000 people. For a time, its residents recall with perverse pride, Veles was the second-most polluted town in the former Yugoslavia.

Fortune - The Invisible Selling Machine 10min

The company’s e-commerce platform was involved in purchases by more than 100 million individual shoppers in 2016, yet it is invisible by design, enabling the end-to-end operation of its customers, some 400,000 individual retail shops and brands. It proudly operates not from San Francisco or SoHo but from six floors of an inconspicuous office tower in Ottawa ... the company has quietly but aggressively encroached on territory occupied by retail giants like Amazon and eBay to carve out a lucrative niche in e-commerce. ... Lütke’s goal is a lofty one: to make commerce easier for everybody. Just as WordPress made it easy for anyone to set up a blog or content website, Shopify lets anyone set up and run a digital store immediately, without needing any technical prowess.

The New York Times - The Online Marketplace That’s a Portal to the Future of Capitalism 4min

Shopping involves scrolling through an intoxicating admixture of goods: Commodity necessities appear next to fast fashion and knockoff apparel; extraordinarily cheap but on-trend electronics mingle with what I can only describe as global manufacturing overspill. ... These shipments were made in accordance with a bilateral trade agreement between the United States and China that originated in 2010, meant to address the rising tide of cross-border e-commerce. Items up to 4.4 pounds — more than the weight of, for example, a violin and bow — can be shipped as ePackets, at extremely low rates with tracking numbers and delivery confirmation. ... This obscure trade deal has become the quiet conduit for an explosion in a new and underexamined American consumer behavior: buying things directly from their countries of manufacture. ... Because of ePacket, and the decades-old international postal agreements that serve as its foundation, lightweight product shipments from China are heavily subsidized by the U.S.P.S. ... Wish certainly illuminates the peculiarities of international shipping, but it casts a much brighter light on the state of globalized manufacturing and commerce. In fact, it offers a somewhat convincing vision of what they might become in the near future. ... Wish wastes no such effort on concealing its international character. Its product selection feels like a churning, infinite cascade; its lack of any sort of organizing principle is part of the reason it’s so hard to stop scrolling.

Financial Times - Cyber attack survival guide 11min

It is reasonable for executives to be anxious. Both Gregg Steinhafel and Beth Jacob, Target’s former chief executive and ex-information officer respectively, lost their jobs following the data breach. The average tenure of a CISO at a company is a little more than two years, according to the Ponemon Institute. This is partly due to the fact that these professionals are in such high demand, but also due to job insecurity of those in the role. ... The average cost of a data breach is $4m, according to security researcher Mr Ponemon, or around $158 for each compromised record. In fact, the figure can vary considerably.

Fortune - Is This Tiny European Nation a Preview of Our Tech Future? 12min

Given Estonia’s history, the invention of Skype in this country was ironic. While Americans were buying their first cell phones, about a quarter-century ago, Estonians were shut off from the world as an outpost of the Soviet Union. You could easily wait 10 years to be assigned a landline phone. By the time the Soviet Union imploded in 1991, the country was in a time warp. “We did not have anything,” says Gen. Riho Terras, the commander of Estonia’s armed forces, who had been a student activist at the time. The country had to reboot from zero. ... One generation on, Estonia is a time warp of another kind: a fast-f orward example of extreme digital living. For the rest of us, Estonia ­offers a glimpse into what happens when a country abandons old analog systems and opts to run completely online instead. ... At birth, every person is assigned a unique string of 11 digits, a digital identifier that from then on is key to operating almost every aspect of that person’s life—the 21st-century version of a Social Security number. The all-digital habits begin young: Estonian children learn computer programming at school, many beginning in kindergarten. ... this year Estonia will open the world’s first “data embassy” in Luxembourg—a storage building to house an entire backup of Estonia’s data that will enjoy the same sovereign rights as a regular embassy but be able to reboot the country remotely, in case of another attack. ... for a fee of 145 euros (about $154) e-residents can register companies in Estonia, no matter where they live, gaining automatic access to the EU’s giant common market—about 440 million once Britain leaves the union.

Aeon - Web of war 16min

Whatever the truth of actual brainwashing incidents, the battle for people’s minds loomed large in the late 1950s, and was the subject of serious Pentagon discussions. The US and the Soviet Union were engaged in an ideological – and psychological – battle. Eager to exploit the science of human behaviour as it had physics and chemistry, the Pentagon commissioned a high-level panel at the Smithsonian Institution to recommend the best course of action. ... Psychology during the Cold War had fast become a darling of the military. ... That recommendation was translated by Pentagon officials into two separate assignments handed down to ARPA: one in the behavioural sciences, which would include everything from the psychology of brainwashing to quantitative modelling of society, and a second in command-and-control, to focus on computers. ... Licklider envisioned the modern conception of interactive computing: a future where people worked on personal consoles at their desks, rather than having to walk into a large room and feed punch cards into machines to crunch numbers. ... Licklider wanted people to understand that, more than any specific application, what he was describing was an entire metamorphosis of man and machine interaction. Personal consoles, time-sharing, and networking – the article essentially spelled out all the underpinnings of the modern internet.

Wired - How An Entire Nation Became Russia's Test Lab For Cyberwar 24min

The Cyber-Cassandras said this would happen. For decades they warned that hackers would soon make the leap beyond purely digital mayhem and start to cause real, physical damage to the world. ... Now, in Ukraine, the quintessential cyberwar scenario has come to life. Twice. On separate occasions, invisible saboteurs have turned off the electricity to hundreds of thousands of people. Each blackout lasted a matter of hours, only as long as it took for scrambling engineers to manually switch the power on again. But as proofs of concept, the attacks set a new precedent: In Russia’s shadow, the decades-old nightmare of hackers stopping the gears of modern society has become a reality. ... And the blackouts weren’t just isolated attacks. They were part of a digital blitzkrieg that has pummeled Ukraine for the past three years—a sustained cyber­assault unlike any the world has ever seen. A hacker army has systematically undermined practically every sector of Ukraine: media, finance, transportation, military, politics, energy. Wave after wave of intrusions have deleted data, destroyed computers, and in some cases paralyzed organizations’ most basic functions. ... In a public statement in December, Ukraine’s president, Petro Poroshenko, reported that there had been 6,500 cyberattacks on 36 Ukrainian targets in just the previous two months.

Wired - Inside Cuba’s D.I.Y. Internet Revolution 17min

In Cuba, where Wi-Fi is both slow and terrible, you will be an emissary from the future, a hint of the degeneracy to come. You’re a full-on mainlining internet junkie with the world’s uproar piped into your head 24/7, your emotional landscape terraformed and buffeted by whatever some narcissist just posted on Instagram or some windbag on Twitter. But like the “not even once” warnings around drugs like meth, you know that after the internet is in Cubans’ pockets, it’s over. Even backward, bitter-ender communist Cuba will become part of the vast data Borg ... The real irony is that if the internet does topple the government and bring democracy to this democracy-starved island, it’ll happen just as democracy itself is being undone by Facebook and every other filter-bubble-­creating, political-polarization-amplifying, algorithm-optimized feed. But we’re getting ahead of ourselves, and also oversimplifying, because the Cubans—the very resourceful Cubans—haven’t exactly been sitting around sipping mojitos as the digital revolución passed them by. They have workarounds. Oh, do they have workarounds. ... the first workaround. Every week, more than a terabyte of data is packaged into external hard drives known as el paquete semanal (“the weekly package”). It is the internet distilled down to its purest, most consumable, and least interactive form: its content.

Fortune - Google’s Elite Hacker SWAT Team vs. Everyone 14min

Whether the result of a programmer’s error or hackers working for a nation-state, data leaks are the new norm. So executives are coming to terms with the idea that it might be more economical to nip coding issues in the bud before they lead to bigger—and messier—problems down the road. ... But it’s not that simple. Too many organizations either don’t prioritize security or view it as an impediment to meeting product development and delivery deadlines. ... To Ormandy and the dozen or so ace computer crackers that make up Google’s Project Zero, there are no boundaries to their jurisdiction—anything that touches the Internet is fair game. Policing cyberspace isn’t just good for humanity. It’s good for business too.

Bloomberg - How Two Brothers Turned Seven Lines of Code Into a $9.2 Billion Startup 9min

Seven years in, however, Stripe’s mission is less to send more books, vacuums, and grooming kits into the world than to “increase the GDP of the internet,” Patrick says. To do this, the company is beginning to move beyond payments by writing software that helps companies retool the way they incorporate, pay workers, and detect fraud. It’s part of an ambitious bid to revamp how online business has been conducted for 20 years and to give anyone with a bright idea a chance to compete. ... With Stripe, all a startup had to do was add seven lines of code to its site to handle payments: What once took weeks was now a cut-and-paste job. Silicon Valley coders spread word of this elegant new architecture. ... Although startups appreciated what Stripe was doing, most potential investors did not. How was a small group of young engineers going to alter the internet’s financial structure? Hadn’t they heard of PayPal?

Outside - How Big Data Saved the Mountain Town 15min

Despite its boots-and-hat veneer, Prine­ville, Oregon, is a primary driver of America’s next great boom industry. In 2010, Facebook broke ground on a billion-dollar data center here in Crook County, its first; Apple soon followed. The two tech giants now operate in close proximity to one another, on a bluff just west of town. Stumpy and others have been drawn by this economic influx—but also by Prineville’s incredible outdoor access. From here one can, within a 30-minute drive, catch trout on the blue-ribbon Crooked River, climb at Smith Rock, mountain-bike or backcountry-ski in the Ochoco ­Na­tional Forest, or cycle buttery roads through high-desert juniper and sagebrush. “I fixed up two houses in Maui,” Stumpy said. “I’ve seen Telluride. I could have bought a shack there in ’83 for ten grand.” He believed that Prineville was about to pop. James Good agreed. “Every­one’s afraid of it becoming the next Bend,” he said, referencing the nearby adventure-sports hub. ... Prineville, named for an early settler, was built on timber, and the place boomed in the mid-20th century, thanks to its proximity to the railroad and abundance of pine trees. Timber fallers came to work at five saw mills; ranchers ran cattle; the area became a hub for rock hounds collecting agates in the volcanic high country. Les Schwab, the son of a logger, opened a tire store here in 1952 and gave away free beef to customers in the slow winter months.

The Atlantic - Have Smartphones Destroyed a Generation? 17min

I’ve been researching generational differences for 25 years, starting when I was a 22-year-old doctoral student in psychology. Typically, the characteristics that come to define a generation appear gradually, and along a continuum. Beliefs and behaviors that were already rising simply continue to do so. Millennials, for instance, are a highly individualistic generation, but individualism had been increasing since the Baby Boomers turned on, tuned in, and dropped out. I had grown accustomed to line graphs of trends that looked like modest hills and valleys. Then I began studying Athena’s generation. ... Around 2012, I noticed abrupt shifts in teen behaviors and emotional states. The gentle slopes of the line graphs became steep mountains and sheer cliffs, and many of the distinctive characteristics of the Millennial generation began to disappear. In all my analyses of generational data—some reaching back to the 1930s—I had never seen anything like it. ... I call them iGen. Born between 1995 and 2012, members of this generation are growing up with smartphones, have an Instagram account before they start high school, and do not remember a time before the internet. ... the twin rise of the smartphone and social media has caused an earthquake of a magnitude we’ve not seen in a very long time, if ever. There is compelling evidence that the devices we’ve placed in young people’s hands are having profound effects on their lives—and making them seriously unhappy. ... There’s not a single exception. All screen activities are linked to less happiness, and all nonscreen activities are linked to more happiness.

MIT Technology Review - A Different Story from the Middle East: Entrepreneurs Building an Arab Tech Economy 10min

Of course, the challenges in the region remain very real, among them poverty, war, and the breakdown of political and economic institutions. Israel has a well-established technology sector, but in the Arab Middle East—outside the United Arab Emirates and its leading economic center, Dubai—the legal and regulatory system is at best cumbersome to navigate, and more often unpredictable and inconsistent. Historic political disputes and security concerns are issues as well. Educational infrastructure, despite relatively heavy spending, is not adequate for developing a 21st-century workforce. ... Yet something encouraging is happening. Everywhere in Dubai, young people gather, checking their smart devices. ... The vast majority of the city’s three million residents, including a new generation of young Arab entrepreneurs, were born elsewhere. And they are selling to a wired generation across the Middle East. In nearly every country in the region today, more than half of the population is under 30