Monday, April 20, 2020
Each week TAG FinTech Steering Committee member Ali Raza compiles a list of newsworthy events impacting the payments ecosystem. He has graciously agreed to allow us to report his thoughts going forward. Enjoy!
This article is courtesy of Blue Leviathan. The original can be seen at https://www.blueleviathan.com/the-week-in-review-98/
As a precursor to potentially selling financial products via Amazon, BBVA is partnering with Spanish restaurant Celler de Can Roca on the sale of a collection of products from the restaurant’s recycling project, and chocolates from Rocambolesc; BBVA is viewing this initiative as a pilot that will provide experience regarding Amazon’s e-commerce platform.
https://www.finextra.com/newsarticle/35007/bbva-explores-product-sales-via-amazon
According to the Monetary Authority of Singapore (MAS), it has received 21 applications for the five digital bank licenses that are due to be issued mid-2020; MAS will issue two digital full bank licenses (must be Singapore based entities) and three digital wholesale bank licenses (can be controlled by Singaporean or foreign entities).
Goldman’s consumer division generated $256 million or 3% of the company’s pre-tax earnings for the first nine months of 2019; although small, the consumer division which includes Marcus, the credit card business, and United Capital is expected to be a major growth driver over the coming years.
https://www.ft.com/content/7229b53a-3157-11ea-a329-0bcf87a328f2
Mastercard announced a new augmented reality (AR) app that brings card benefits to life; Mastercard cardholders will be able to see, explore and access their card benefits through a photo-realistic AR experience.
https://www.cnbc.com/select/mastercard-launches-augmented-reality-app/
The People’s Bank of China announced that it has accepted American Express’ application to start a bank card clearing business signaling the first step for Amex to enter the Chinese card market; in 2018, Amex became the first foreign company to win permission to start preparing for the business after forming a JV with LianLian, a Chinese fintech-services firm.
Euronet will provide Standard Chartered with dynamic currency conversion (DCC) services at approximately 1,000 ATMs in 14 countries across Asia Pacific and the Middle East using its Digital Integrated Payments Cloud (DIPC); DCC allows international travelers the option to transact in their own currency rather than the local currency.
According to Fed data, US consumer credit grew in November albeit at a slower pace; outstanding consumer credit rose at a 3.61% seasonally adjusted annual rate in November (vs. 5.49% in October) to $4.18 trillion with revolving credit declining modestly, and nonrevolving credit increasing at a seasonally adjusted annual rate of 5.75%.
https://www.morningstar.com/news/dow-jones/202001089190/us-consumer-credit-increased-in-november
InComm is partnering with Taiwanese QR and barcode payments processor JKOPAY allowing Taiwanese residents and tourists to make payments in Japan using a familiar payment option at over 18,000 retailers; JKOPAY is widely used in Taiwan and has 80% share of QR and barcode payment transactions.
California Governor Gavin Newsom is planning to create a state Consumer Financial Protection Bureau with expanded oversight of nonbank financial institutions and added staff to enforce consumer protection laws; as part of a budget proposal, Newsom is expected to call for a restructuring of the current Department of Business Oversight, renaming it the Department of Financial Protection and Innovation (DFPI).
https://www.americanbanker.com/news/california-governor-to-unveil-plan-for-state-cfpb
PayU, the payments and fintech business of Prosus is acquiring a controlling stake in Indian startup PaySense at a valuation of $185 million and plans to merge it with LazyPay; PaySense and LazyPay are both in the consumer credit business.
