“Sezzle, a Buy Now, Pay Later solution in Canada, has announced the expansion of Sezzle Up, a consumer credit product, into the Canadian market. Sezzle notes that many lenders are hesitant to extend credit to consumers without any credit history or score. Consumers may face a catch-22 situation –– unable to get that first credit product when they lack a credit history. Sezzle Up gives consumers the opportunity to build their credit profile if they choose to do so, bridging the gap between the credit underserved and the ability to use and build credit wisely.”

“New Mexicans will no longer be able to use “buy now, pay later” service Afterpay starting Jan. 1. Last week, Afterpay emailed New Mexico customers informing them that due to “regulatory changes” in New Mexico, the company would no longer be doing business in the state. “Due to a new state regulation effective January 1, 2023, Afterpay is unavailable to New Mexico residents,” read a statement provided to the Journal by an Afterpay spokesperson. “We hope to be able to offer our service to New Mexico customers in the near future.” The regulation in question is House Bill 132, “Interest Rates for Certain Loans,” an amendment to the New Mexico Small Loan Act and New Mexico Bank Installment Act.”

“Buying goods online is second nature to most of us. Using our payment card whilst we shop online rarely gives us pause, and the many millions who buy online generally trust the system.  However, the recent busy shopping season means it’s a good time to remind ourselves that there is an ongoing battle to make sure that the payment card data of your customers remains secure. The payment card industry has not sat still in the face of the threat of attack by criminal gangs. Their security standard (PCI DSS) is a contractual baseline for anyone that wants to accept payment cards, and is revised regularly to take into account both technological change and criminal attack methodology…”

“According to LendingTree’s latest holiday debt survey, 35% of Americans took on yuletide debt, down slightly from last year’s 36%, but the average amount of those who took some on this year is $1,549. That’s up 24% from last year and is the highest in the eight-year history of the report. Key findings….”

“The past year was an extremely turbulent one in several respects. Fintech companies in particular suffered greatly from the difficult market environment and resulting turmoil, with several high-flyers brought down to earth. Although 2023 will continue to be challenging, the fintech industry continues to evolve with market trends, and innovation in the fintech sector will continue to drive change in traditional financial services.”

“The popularity of buy now, pay later (BNPL) kept growing in 2022 as consumers sought out more flexible payment methods, merchant acceptance grew, and BNPL spread into new sectors. The total value of BNPL in the US increased 25.5% year over year in 2022, according to Insider Intelligence research. Here are five trends and events that shaped the BNPL industry this year:…”

“The days of organisations relying on insurance policies to pay out after suffering a cyber-attack, may be coming to an end.  This is the stark assessment from Mario Greco, chief executive at insurer Zurich, one of Europe’s biggest insurance companies, speaking to the Financial Times. Amid growing concern among industry executives about large-scale cyber-attacks, Greco warned that cyber-attacks, rather than natural catastrophes, will become “uninsurable”.”

“As we enter the last week of 2022, we look at some of the  biometrics and digital ID trends predicted by experts in the field. This was the year the world mostly emerged from the effects of the Covid pandemic, and numerous companies moved forward in creating innovative technological solutions. The trends and forecasts emailed to Biometric Update mostly reflect ongoing developments, but also suggest significant changes for how digital trust works in the near future.”

“American multinational financial services corporation, Fidelity, has filed three new trademark applications indicating further plans for the metaverse…the trademarks cover business marketing, referral services in the field of investment advice and financial planning, personnel placement and recruiting services, provision of an online marketplace for buyers and sellers of digital media, namely, non-fungible tokens (NFTs) featuring textual and graphic content, all in the metaverse and other virtual worlds…HSBC also filed Web3 trademark applications for its name and logo with the USPTO on Dec 15. The trademarks cove software to allow users to perform banking and electronic business transactions in the metaverse and other virtual worlds; downloadable virtual goods, namely, computer programs featuring bank cards, cash cards, cheque cards, debit cards, credit cards, charge cards for use online and in online virtual worlds; and downloadable digital files authenticated by NFTs.”

“Banks involved in banking as a service will have to prioritize regulatory compliance in 2023 as scrutiny intensifies and opportunities in the segment grow. Throughout 2022, multiple bank regulators have stressed that they are increasing their attention on banks’ third-party risks. In one example, the Office of the Comptroller of the Currency entered into a formal written agreement in August with Blue Ridge Bank NA, the bank subsidiary of Blue Ridge Bankshares Inc., to enhance the OCC’s supervision of the bank’s fintech partnerships. Regulators’ messages are helping increase banks’ awareness of risk management and not necessarily killing banks’ interest in BaaS, industry experts said.”

“The credit-card industry wants its customers to know about a threat to “our favorite cash back and travel rewards programs.” They could disappear forever, the industry says, if Congress approves a piece of legislation called the Credit Card Competition Act. It remains to be seen if that prospect will inspire masses of cardholders to reach out to their senators and representatives with the message—“Hands off my rewards!”—that industry lobbyists have crafted for the occasion. Even if the response falls short of their hopes, though, the lobbyists will have performed a public service: by raising the spectre of a rewardless credit-card future, they have called attention to a very peculiar feature of the credit-card present.”

“The European Central Bank (ECB) has published its second report on the feasibility of launching a digital euro. It updates the progress made since the first report, published in September 2022. This includes information on how a digital euro would work in practice, such as the role of intermediaries, the settlement model, and the distribution model.”

“The Accredited Standards Committee X9 Inc. (X9) today announced that it has published an updated version of its Informative Report titled “Quantum Computing Risks to the Financial Services Industry,” denoted X9.IR-F01-2022. The 120-page document, available for download at no charge, delivers a broad background on quantum computing and the security risks it is expected to pose to cryptography — specifically, the cryptography that the financial services industry depends on. The financial industry could be particularly hard hit should the potential computational power posed by quantum computing become a reality. It is predicted that large-scale, stable quantum computers will be able to quickly solve the mathematical problems upon which today’s widely deployed cryptographic systems are based; systems that are currently used to protect sensitive information on the internet and throughout the industry.”

“The state Division of Consumer Protection has released tips to inform and empower New York consumers purchasing gift cards and gift certificates this holiday season. Any gift cards or gift certificates purchased in New York on or after Saturday, Dec. 10, will remain valid for a minimum of nine years from the date of purchase. And, when the remaining value of a gift card or gift certificate is less than five dollars, the recipient can opt to receive cash for the balance. All fees are prohibited under the new law, which will prevent gift cards and gift certificates from declining in value. The law specifically forbids the imposition of any “activation fees, retroactive fees, redemption fees, service fees, dormancy fees, latency fees, administrative fees, handling fees, access fees, periodic fees, renewal fees, re-loading fees, or any other fee of any kind.” There is one exception to the law. A gift card or gift certificate that is redeemable at multiple, unaffiliated merchants or service providers may charge a one-time activation fee, not to exceed $9…”

“Trigo, an Israel-based computer vision company that builds systems for autonomous checkout and retail analytics, has rolled out Germany’s first fully-autonomous cashierless supermarket in partnership with German grocery giant REWE Group. The new “Pick&Go” supermarket in the Bavarian capital Munich allows customers to walk in, select their items off the shelves, and leave without having to pay at checkout. Unlike self-checkout devices such as stationary or mobile scanners and digital carts, Pick&Go shoppers only scan once on their phones when they enter the store. When they leave they get the receipt automatically. Trigo’s computer vision algorithms –running off data produced by ceiling-mounted cameras and shelf sensors– create a 3D “digital twin” of the store. The system logs shoppers’ movements inside the store and correlates that with data on items they pick from the shelves. The algorithms can also be used to monitor inventory levels in real time, and detect items that have been misplaced or stolen.”

Extend, a leading virtual card and spend management platform, today announced a partnership with HSBC, one of the world’s largest banking and financial services organizations. HSBC will offer Extend solutions to its commercial card clients in the U.S. to help companies manage spending with the flexibility and control of virtual cards. Using their HSBC business cards, joint customers will be able to simplify essential processes – like closing the books at the end of the month – and instantly empower anyone, anywhere to make business payments. Extend’s digital solutions are now available to HSBC U.S. Commercial Card Clients with additional features coming in early 2023.

“As the holiday shopping season heats up, buy now pay later (BNPL) apps are a hot commodity with younger consumers.  Insights in Marketing recently surveyed 1,000 consumers, ages 18-25, and conducted online focus groups to learn why more Gen Z consumers are drawn to BNPL than any other generation. The independent Insights in Marketing financial services study revealed 100% of survey participants discovered BNPL apps while shopping online. One in five respondents had tried BNPL, and 80% said they used these microloans more often in 2022 than in 2021.   Which BNPL Apps Do Gen Z Consumers Use Most? Most Zoomers rely on word-of-mouth recommendations from friends and family members before trying BNPL, and then tend to use multiple BNPL apps or websites, mainly Afterpay (58%), Klarna (44%), Affirm (29%) and PayPal (27%).  Why do Zoomers use BNPL? All respondents agreed quick approval and interest-free transactions are the main draw, and ranked other reasons: 1) Avoid credit card debt and fees  2)Receive merchandise immediately (vs. waiting to complete layaway payments) 3) Stretch budgets 4) Make affordable payments in a set timeframe 5) Establish a credit history for future loans and rewards credit cards”

“You don’t need to be a science-fiction fan to believe in the metaverse. It’s here, it’s real and there’s still time for banks to jump on the bandwagon. The metaverse is a vision, not just a technology. It’s a virtual world with a diverse ecosystem and a thriving culture. More importantly, the metaverse runs on exchanging goods and services, and the financial infrastructure is still being built. That’s why banks need to pay attention to this opportunity. As you explore the metaverse and all it has to offer (as well as what your institution can provide in return), keep these five things in mind. The metaverse is fragmented, but not for long…”