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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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April 1, 2022
On the wires
TD Auto Finance Rolls Out Real-Time Payments for Dealers
“TD Bank, America’s Most Convenient Bank® , today announced that TD Auto Finance has launched real-time payments for its network of dealers, becoming the first indirect auto lender to roll out the ability to send real-time payments nationwide. With real-time payments, TD Auto Finance can fund dealers as contracts are booked throughout the day, rather than sending batch payments overnight via ACH. This provides dealers with improved cash flow management and greater visibility into their financial position.”
March 31, 2022
On the web
Visa and Mastercard caught in legal storm over card fees
The Telegraph
“More than 100,000 British companies are to sue Mastercard and Visa over claims they charge fees on corporate credit cards at up to six times the maximum level. A class action claim will be filed on Thursday with the Competition Appeal Tribunal (CAT) by boutique law firm Harcus Parker, on behalf of travel and hospitality businesses. Lawyers claim that Mastercard and Visa are exploiting their dominant position in the market through a loophole that allows them to charge up to 1.8pc per transaction on corporate credit cards.”
Visa Launches Program for NFT-focused Entrepreneurs – Blockworks
Blockworks
“Visa has launched a program to help content creators grow their businesses through NFTs. The payment company is looking to select entrepreneurs working in art, music, fashion and film who currently, or plan to, incorporate NFTs (non-fungible tokens) into their business models.”
On the wires
The Digital Dollar Project Applauds President Biden’s Executive Order on Central Bank Digital Currency; Gains Support of Leading Financial and Nonprofit Partners
“The Digital Dollar Project (DDP) , a nonprofit leading the exploration of central bank digital currency (CBDC) in the United States (U.S.), today applauded President Joseph R. Biden’s recent Executive Order directing a whole-of-government effort to understand and evaluate the benefits and risks of a U.S. CBDC for individuals and businesses alike.”
March 30, 2022
On the web
Low Smartphone Penetration Will Hinder CBDC Adoption, Kenya Central Banks Says
CoinGeek
“Low smartphone penetration could be the biggest hindrance to digital shilling, the Central Bank of Kenya (CBK) has claimed. With less than half the population having access to 4G smartphones, the central bank digital currency (CBDC) could further isolate those that lack access to banking services currently, the regulator says.”
Pix Beats Cards in Transactions for First Time
valorinternational
“The number of transactions through Pix surpassed those with credit or debit cards in the fourth quarter. It was the first time that the Central Bank’s instant-payment system took the first position among the most used payment methods.”
Kraken Hits Key Milestone in Quest to Gain Fed Account, Equal Treatment With Traditional Banks
CoinDesk
“The American Bankers Association (ABA) recently granted Kraken a routing number, bringing it one step closer to receiving one of the highly coveted Federal Reserve master accounts, which would allow it to deposit funds with the Fed and access the global payments system. Custodia Bank (formerly Avanti) was given a routing number last month.”
March 29, 2022
On the web
Terra Adds $135 Million in Bitcoin Purchases to Back Stablecoin
Bloomberg
“Terra’s purchases are partly in response to criticism around UST. The stablecoin is not backed by a fiat currency like centralized stablecoins such as Tether. It has been able to maintain its peg to the dollar by issuing and destroying Luna tokens, Terra’s native cryptocurrency. For every new UST created, $1 worth of Luna is burned on the Terra blockchain.”
On the wires
KPMG and Volante Technologies Launch Strategic Alliance for Real-Time Payments and ISO 20022 Modernization
“Volante Technologies , the global leader in cloud payments and financial messaging, and KPMG are joining forces to offer financial institutions comprehensive ISO 20022 and real-time payments (RTP) readiness diagnostics. The strategic alliance will offer banks a winning combination of cloud-native payment solutions and related advisory, enabling banks to modernize their payments processes and operations faster than ever.”
March 28, 2022
On the web
US Lawmakers Introduce ‘ECASH’ Bill in New Push to Create a Digital Dollar
CoinDesk
“A group of U.S. lawmakers says the U.S. Treasury Department may be the right government entity to create a digital dollar – not the Federal Reserve. A new bill introduced Monday would authorize just that…The electronic dollar, as defined in the bill, would be a bearer instrument that people could hold on their phone or a card. The system would be token-based, not account-based, meaning if someone were to lose their phone or card, they would lose the funds. In other words, it would be like losing a wallet with dollar bills in it.”
New Wells Fargo Credit Card Gives Customers Rewards for Rent Payments
Bloomberg
“Wells Fargo & Co. will start letting customers earn points and miles on their rent payments as the banking giant deepens its push into credit cards. The San Francisco-based lender is partnered with Bilt Rewards on a new card that will operate on Mastercard Inc. ’s network, the companies said in a statement Monday.”
On the wires
Bank of England and Massachusetts Institute of Technology Joint Central Bank Digital Currency Collaboration
“In February 2022, the Bank of England and the Massachusetts Institute of Technology (MIT) agreed to collaborate on a twelve-month research project on Central Bank Digital Currency (CBDC). The Bank will partner with the MIT Media Lab’s Digital Currency Initiative (DCI) team to explore potential technical challenges, trade-offs, opportunities and risks involved in designing a CBDC system. The collaboration forms part of the Bank’s wider ‘research and exploration’ into CBDC , and will be focused on exploration and experimentation of potential technology approaches.”
March 24, 2022
On the web
U.S. Consensus Forming on Stablecoin Oversight, Treasury’s Liang Says
Bloomberg
“A top U.S. Treasury official said the Biden administration and members of Congress are making progress toward crafting guardrails for fast-growing stablecoins, which U.S. officials have warned could pose systemic dangers.”
ANZ Becomes First Australian Bank to Mint Stablecoin
Reuters
“Australia and New Zealand Banking Group (ANZ.AX) said on Thursday it carried out an Australian dollar stablecoin payment, in a landmark transaction to become the first Australian lender to mint a digital asset linked to the country’s currency. A stablecoin is a kind of digital asset that is devised to keep its value stable in relation to another asset, and are frequently used as a portal to other cryptocurrencies or to generate income in decentralised financial systems.”
On the wires
Bank of America Announces New Secured Credit Offerings and Digital Resources to Help Entrepreneurs Start and Grow Their Businesses
“Bank of America today announced the launch of the Business Advantage Unlimited Cash Rewards Secured credit card , Business Advantage Secured Credit Line and the Start a Business Center – its latest products and resources for entrepreneurs looking to start a small business or build their business’ credit history.”
U.S. Bank, Driveway Deliver Payments Instantly to Online Car Sellers
“U.S. Bank and Driveway have collaborated to pay car sellers immediately with real-time payments, making Driveway the first online car dealership to pay customers over the RTP® network. Customers selling a car on Driveway.com can now have the payment deposited instantly into their bank account after a sale is complete and before the vehicle even leaves their driveway.”
Cross River Expands Its Cryptocurrency Services; Selects Chainalysis As Partner for Best-In-Class Compliance
“Chainalysis , the blockchain data platform, today announced a partnership with Cross River , a technology-driven financial services organization that provides core infrastructure and embedded financial solutions. Cross River is known for providing financial services to the fintech and crypto sectors and will utilize Chainalysis tools to compliantly expand its offerings to additional cryptocurrency businesses.”
March 23, 2022
On the web
Brazil’s Pix ‘much Cheaper’ Than Card Payments, Paper by Central Bank Economists Shows
Reuters
“Brazil’s Pix retail instant payment system is “much cheaper” than card payments for merchants, according to a paper published Wednesday by the umbrella body of the world’s central banks, highlighting its growth potential for businesses after its vertiginous rise among individuals. The paper, which was co-authored by economists at the Brazilian central bank for the Bank of International Settlements (BIS), says Pix costs an average of 0.22% of a transaction’s value for merchants, whereas debit cards cost slightly above 1% and credit cards reach 2.2% in Brazil.”
Do Advanced In Real-Time Payments Make Crypto Less Interesting?
Forbes
“Real-time payment systems which are appearing in major economies around the world, undercut a claim for crypto as a fast, low-cost payments innovation. Instead, it is slow, has limited capacity, and is unregulated, which means users are not protected. “Electronic payments have been increasing for a while,” said Elena Whisler, senior vice president at The Clearing House, which launched real-time payments in November 2017.”
Winklevoss Twins Secure Irish E-money Licence for Gemini Payments
The Irish Times
“Gemini Payments, a popular cryptocurrency exchange established by the Winklevoss brothers, has secured an e-money licence from the Central Bank . It is the first fintech to become authorised for such a licence in the Republic since October 2020. Other well-known companies to receive such authorisation include Stripe , Facebook and Google .”
March 22, 2022
On the web
Central Banks Develop Prototypes for Cross-border CBDC Interoperability
Finextra Research
“The Bank for International Settlements and the central banks of Australia, Malaysia, Singapore and South Africa have developed two prototypes for a shared platform that could enable international settlements using digital currencies issued by multiple central banks. Led by the BIS Innovation Hub’s Singapore Centre, Project Dunbar proved that financial institutions could use CBDCs issued by participating central banks to transact directly with each other on a shared platform. The platform has the potential to reduce reliance on intermediaries and, correspondingly, the costs and time taken to process cross-border transactions.”
On the wires
FTX Invests $100M in Banking App Dave, Forms Partnership for Crypto Payments
coindesk
“Dave (DAVE), a publicly traded banking app, has made a strategic partnership with FTX US, the stateside arm of cryptocurrency exchange giant FTX. The company also received a $100 million investment from FTX Ventures, the exchange’s $2 billion venture capital fund.”
March 21, 2022
On the web
Euroclear Joins Bank-backed Blockchain Payment System
U.S.
“Securities settlement house Euroclear said on Monday it had joined a consortium of banks building a payment system for tokenised assets in the latest sign of established institutions teaming up with newcomers in crypto tech.Securities settlement house Euroclear said on Monday it had joined a consortium of banks building a payment system for tokenised assets in the latest sign of established institutions teaming up with newcomers in crypto tech.”
RegTech Firm Tintra PLC Announces World’s First Web 3.0 Bank to Power Metaverse
Fintech Finance
“Today, the fast-growth RegTech firm Tintra PLC ( www.tintra.com ) announces the development of what is believed to be the world’s first built-for-purpose Web 3.0 banking platform. This platform will expand Tintra’s already-extensive technological capabilities with the eventual launch of an equally innovative, fully functional metaverse bank. While incumbent and legacy banks are currently opening lounges and branches in the metaverse via third-party platforms, Tintra intends to create the first bank capable of functioning operationally within the digital realm of the metaverse.”
Binance Shuts Down Ontario Users From Its Platform – Will It Restrict Other Canadian Provinces?
Reuters
“The dispute between cryptocurrency exchange Binance and Ontario’s financial regulator has concluded, with the company formally agreeing to cease operations in the Canadian province. The conflict between Binance, the world’s largest cryptocurrency exchange (by trading volume), and the Ontario Securities Commission began in June 2021, when the exchange announced its intention to withdraw from the province following a regulatory clampdown on crypto exchanges for allegedly violating securities laws.”
On the wires
GrePay and Alchemy Pay Partner to Expand Crypto Payments
“The fiat-crypto payment solutions provider, Alchemy Pay (ACH), and GrePay, global acquirer and payments provider, announce their partnership. Grepay has over 100 local payment channels that process over 200k transactions per day. Alchemy Pay will now leverage these channels to connect crypto service providers to their global key markets such as United Arab Emirates, India, Mexico, Brazil, Colombia, Chile, and Pakistan.”
March 18, 2022
On the web
Bank of Canada collaborating with MIT on CBDC research
Cointelegraph
“The Bank of Canada has partnered with the Massachusetts Institute of Technology (MIT) to work on a 12-month research project focused on the design of a Central Bank Digital Currency. According to a Wednesday announcement, the bank will work alongside the MIT Media Labs’ Digital Currency Initiative (DCI) team to examine how “advanced technologies could affect the potential design of a CBDC.””
NACHA Expands Same-Day ACH Limit to $1M
ABA Banking Journal
“NACHA today increased the dollar limit for same-day ACH transactions from $100,000 to $1 million. The change was executed in collaboration with the Federal Reserve and The Clearing House, the network’s two ACH operators.”
March 17, 2022
On the web
Verto Announces Expansion of Currencies Offering for Instant Cross-border Payments Worldwide
IBS Intelligence
“Verto , the leading B2B cross-border foreign exchange (FX) and payments enabler, announced the increase in the number of supported currencies that customers can convert between and make payments in. Verto’s customers can now accept and send payments instantly in 12 new currencies, all from one single and easy to use platform, further eliminating the barriers to cross-border payments.”
Crypto Order Pushes Biden’s Consumer Watchdogs to More Oversight
bloomberglaw
“President Joe Biden’s cryptocurrency executive order put the nation’s two federal consumer protection regulators front and center in regulating digital money. The Federal Trade Commission and the Consumer Financial Protection Bureau have largely taken a back seat to other financial regulators when it comes to crypto. But Biden’s March 9 order directed the CFPB and FTC to study how they can police crypto transactions for fraud and abuse, a mission both agencies are equipped to do.”
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