A leading payments industry news source for more than 17 years. Glenbrook curates the news and keeps you abreast of the important daily headlines in payments.

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January 23, 2023

On the web

Bank of America, JPMorgan and Other Banks Reportedly Team Up on Digital Wallet to Rival Apple Pay

CNBC

Several banks are reportedly working on a digital wallet that links with debit and credit cards to compete with Apple Pay and PayPal. According to the Wall Street Journal, the digital wallet would be operated by Early Warning Services, a joint venture from several banks that also runs Zelle. The major banks involved include Wells Fargo, JPMorgan Chase and Bank of America, according to the report.

Can a Save-to-Pay-Later Model Forestall the Pitfalls of Buy Now, Pay Later in Nigeria?

Techpoint Africa

Once in a while, a new technology comes along that completely upends an entire industry. Other times, old industries are reimagined using technology. Buy now, pay later’s recent rise certainly belongs to the latter. For many Nigerians growing up in low or middle-income households, buying a product from merchants with a promise to pay later, usually at the end of the month when salaries are paid, is not entirely a foreign concept.

January 20, 2023

On the web

Who Pays For Your Rewards? Redistribution in the Credit Card Market

Federal Reserve

We study credit card rewards as an ideal laboratory to quantify redistribution between consumers in retail financial markets. Comparing cards with and without rewards, we find that, regardless of income, sophisticated individuals profit from reward credit cards at the expense of naive consumers. To probe the underlying mechanisms, we exploit bank-initiated account limit increases at the card level and show that reward cards induce more spending, leaving naive consumers with higher unpaid balances. Naive consumers also follow a sub-optimal balance-matching heuristic when repaying their credit cards, incurring higher costs....

Six Ways to Increase Transaction Approvals (and Revenue)

DevPro Journal

The current economy has significantly altered consumer buying behaviors and business operations...Let’s explore ways that you can help merchants mitigate the ongoing pain points by offering solutions that help them increase authorization rates, which results in more sales and revenue.

Universal Digital Payments Network for Stablecoins, CBDCs Launches at Davos

Forkast

The Universal Digital Payments Network (UDPN) was launched today at the World Economic Forum to provide interoperability between regulated stablecoins and central bank digital currencies (CBDCs). UDPN is an “advanced digital currency payments project” that “has the potential to drive down the cost of digital payments and accelerate adoption by banks and businesses of all sizes.”

On the wires

Paymentus Adds Retail Access Points with Green Dot to Growing Suite of Cash Bill Pay Solutions To Serve Cash-Preferred, Underbanked and Unbanked Consumers

Businesswire

Paymentus Holdings Inc., a leading electronic bill presentment and payment provider, today unveiled expanded Cash Bill Pay capabilities on its Instant Payment Network®. Powered by Green Dot Corporation’s expansive Green Dot Network, billers connected to the Instant Payment Network will be able to accept cash payments from customers made at more than 90,000 retail locations.

January 19, 2023

On the web

CFPB Issues Guidance to Root Out Tactics Which Charge People Fees for Subscriptions They Don’t Want

Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau (CFPB) issued a new circular affirming that companies offering “negative option” subscription services must comply with federal consumer financial protection law. Negative option programs include subscription services that automatically renew unless the consumer affirmatively cancels, and trial marketing programs that charge a reduced fee for an initial period and then automatically begin charging a higher fee.

India May Give Visa and Mastercard Access to Its Payments Market

CTM File

The Reserve Bank of India (RBI) is reportedly drawing up plans to link credit cards issued by Visa and Mastercard to the Unified Payments Interface (UPI), the country's popular online payments protocol. According to news portal The Morning Context, two industry executives have said that the central bank will decide before April. A decision in favour of the two US companies would mark a distinct change in; as Bloomberg comments: “India’s dealings with American card networks has been frosty.

Davos Day 3 Shows Conflicting Visions for the Metaverse, CBDCs

Coindesk

Conversations about blockchain on day three of Davos show architects of the metaverse are still trying to figure out what exactly it is – and regulators hinting central bank digital currencies (CBDC) could potentially do more harm than good to the global economy. Despite the hype around the metaverse, propelled by Facebook’s transformation into Meta Platforms back in 2021, the world has yet to witness or experience anything concrete.

Exploring Multilateral Platforms for Cross-Border Payments

BIS

Multilateral platforms – cross-border payment systems that are multi-jurisdictional by design – could enhance cross-border payments by reducing the need for intermediaries and allowing payment service providers in different jurisdictions to transact directly with each other. This joint report released by the CPMI, the BIS Innovation Hub, the IMF and the World Bank, identifies challenges to address and approaches to establishing a multilateral platform.

On the wires

January 18, 2023

On the web

FinCEN Identifies Virtual Currency Exchange Bitzlato as a “Primary Money Laundering Concern” in Connection with Russian Illicit Finance

Fincen

Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an order that identifies the virtual currency exchange Bitzlato Limited (Bitzlato) as a “primary money laundering concern” in connection with Russian illicit finance. This is the first order issued pursuant to section 9714(a) of the Combating Russian Money Laundering Act, as amended, and highlights the serious threat that business operations that facilitate and support Russian illicit finance pose to U.S. national security and the integrity of the U.S. financial sector. The order prohibits certain transmittals of funds involving Bitzlato by any covered financial institution.

Nigeria’s e-Payment Transactions Hit 5-Yr High

Businessday NG

The volume of financial transactions performed electronically in Africa’s most populous nation surged to the highest in five years in 2022, according to new data from the Nigeria Inter-Bank Settlement System (NIBSS). BusinessDay analysis of the data shows that the total volume of NIBSS Instant Payment platform (NIP) transactions rose by 613.1 percent to 5.2 billion last year from 729.2 million in 2018.

5 Companies at the Forefront of Real-time Payments in the US

IBS Intelligence

Real-time Payments (RTPs) are payments that settle and clear quickly with the use of an underlying platform or network called a ‘payment rail.’ RTPs are made between bank accounts. RTP solutions are built on the connection between payee and payer and can be used by merchants of any size, consumers, and financial institutions to carry out payments to settle bills or transfer money with peers or customers. Here are 5 companies at the forefront of Real-time Payments in the US...

PayJunction Partners With Plaid to Extend Seamless A2A Money Transfers

EIN News

PayJunction, a leading developer of payment processing technology, announced an integration with Plaid, a consumer-permissioned network powering the digital financial ecosystem to simplify bank payments, enabling PayJunction customers and partners to deliver a better pay-by-bank experience. Integrating Plaid's secure account-to-account (A2A) bank connectivity technology with PayJunction's payment gateway will allow B2B and B2C businesses to easily extend to their customers a simple way to pay for goods and services via direct bank transfer, whether online or via invoicing.

Digital Gift Card and Payment Provider Tango Card Launches Dramatically Expanded Global Catalog and Capabilities

EIN News

Tango Card, a global leader in rewards, incentives, and payment fulfillment has dramatically increased the number of countries and currencies able to benefit from the global reach of its streamlined and secure digital gift card delivery system. During the last two years, Tango Card has been building the systems and processes enabling it to be the true global provider of rewards and incentives to B2B buyers. With today’s launch and announcement, Tango Card offers more than 1,000 popular e-gift card brands, prepaid cards and charitable donation options across more than 80 countries and 20 currencies.

Bottomline Introduces Confirmation of Payee Solution for Businesses

EIN News

Bottomline, has announced a new line of fraud defence for companies. Now available to companies directly, Bottomline’s Confirmation of Payee (CoP) for Business helps better protect companies against potential fraud by verifying the owner of the bank account receiving funds. Authorised push payment (APP) fraud losses reported by UK Finance stood at £583 million for 2021 (up 22% from 2020) and £249 million for the first half of 2022.

Intuit QuickBooks Business Network to Accelerate and Automate B2B Payments for Millions of U.S. Businesses

Intuit

Intuit, the global financial technology platform that makes TurboTax, Credit Karma, QuickBooks, and Mailchimp, expanded availability of the Intuit QuickBooks Business Network to millions of small and mid-market businesses in the U.S., creating one of the largest business-to-business (B2B) networks aimed at accelerating and automating B2B payments and improving overall cash flow.

On the wires

Prime Time for Palm Vein Identification: Ingenico and Fujitsu Frontech North America Unveil Queue-Busting Solution for Secure In-Store Commerce

PR Newswire

Ingenico, the global leader in payments acceptance solutions, and Fujitsu Frontech North America, through its subsidiary Fulcrum Biometrics, Inc., today unveiled the world's most secure, accurate and seamless biometric payment solution based on palm vein identification. This innovation enables merchants to speed up check-out, minimize the risks of fraud, and streamline the customer experience.

BNY Mellon | Pershing Adds Real-Time Payments to Its NetXInvestor® Platform

PR Newswire

BNY Mellon | Pershing announced today that it is integrating Real-Time Payments (RTP) technology into its NetXInvestor® platform, an investor portal used by broker-dealer and registered investment advisor firms to help clients manage their portfolios...BNY Mellon has been at the forefront of innovating in the digital payments space, including launching the first-of-its-kind real-time electronic billing and payment solution. The pioneering capability enables U.S. businesses to present digital bills to consumer clients in real-time and receive instant payment via their preferred online and mobile banking channels.

Discover® Global Network Launches Transit Solution Internationally

Businesswire

Discover® Global Network, the payments brand of Discover®, has launched Tap and Pay solutions with transit agencies and local acquiring partners such as EMT Madrid, Metro de Seville and GetNet in Spain, Mennica in Poland and New Taipei Metro in Taiwan. Riders may now use their Discover, Diners Club International® and network alliance partner cards to make contactless payments at these transit agencies in top international destinations.

January 17, 2023

On the web

Money and Payments: The U.S. Dollar in the Age of Digital Transformation

Federal Reserve

The Federal Reserve, as the nation’s central bank, works to maintain the public’s confidence by fostering monetary stability, financial stability, and a safe and efficient payment system. This paper is the first step in a public discussion between the Federal Reserve and stakeholders about central bank digital currencies (CBDCs). For the purpose of this paper, a CBDC is defined as a digital liability of a central bank that is widely available to the general public.

PayPal’s Evolving Strategy in a Crowded BNPL Market

Tearsheet

Buy Now, Pay Later (BNPL) gained ground in recent years as an alternative form of credit for online retail purchases. As more and more big players continue to enter the BNPL industry, competition in the space is intensifying. PayPal entered the sector by launching its first BNPL offering – ‘Pay in 4’ – in 2020, and expanded its suite of products by rolling out another BNPL product, ‘Pay Monthly’, in 2022.

The US is Now Klarna’s Biggest Market

AltFi

Klarna seems to be kicking off the year on a high note as the US overtakes Germany as its largest market by revenue. The Swedish ‘buy now, pay later’ (BNPL) had a bit of a rocky 2022, to say the least, with losses tripling in the first half of the year, valuation cuts and layoffs. It ended the year on more of an uptick though, forecasting that in the second half of 2023, it would see itself back into the monthly profits it saw in 2019.

French Security Giant Joins EU Identity Wallet Pilot

Mobile ID World

The France-based security giant IDEMIA has announced that it will be part of a consortium that will pilot EU Digital Identity Wallet prototypes. IDEMIA is joining the so-called “POTENTIAL Consortium”, which will comprise 148 participants from 19 European Union states as well as Ukraine. IDEMIA’s official announcement offered few details about POTENTIAL, but explained that its pilot would be focused on six use cases for the EUIDW: “Electronic Government services”, “Account opening”, “SIM registration”, “Mobile Driving Licence”, “Remote Qualified Electronic Signature”, and “Electronic Prescription”.