Weekly Headlines 5 February 2021

5th February 2021

BIS on Fintech regulation

BaFin President resignation

FCA to regulate BNPL

PSR consults on NPA delivery

OBIE consults on CoP and CRM Code

Visa preparing for crypto trading

NatWest to switch debit to Mastercard

BBVA gives up on Holvi

Payoneer gets $3.3 billion valuation

Payfuture  ‘Customer Conversion Recovery Tool’.

 

BISFintech regulation: how to achieve a level playing fieldPaper

The paper suggests that the regulatory framework should incorporate entity-based requirements for big techs in areas such as competition and operational resilience that would address the risks stemming from the different activities they perform.

 

BaFin President has resigned in the wake of Wirecard.  (Reuters)

“The Wirecard scandal has revealed that Germany’s financial supervision needs a reorganization,” the finance ministry has said in a statement.

BaFin earlier filed a criminal complaint against an employee on suspicion of insider trading in Wirecard.

 

HMTBuy-now-pay-later products are to be regulatedReview document  Klarna Comment

The FCA is to be given powers to regulate BNPL in line with the recommendations of the Woolard Review that has been published simultaneously with the announcement.  Lenders will be required to carry out affordability checks on customers and ensure the vulnerable are treated fairly. However, while legislation will be brought forward as soon as parliamentary time allows, the government will first consult with stakeholders to ensure the approach to regulating BNPL is proportionate.

The FCA says that it will build the Woolard Review’s recommendations into its business planning and will give further details of its response to the Review when its next Business Plan is published in April 2021.

 

The PSR has published a consultation regarding ways to reduce risks to the successful renewal of the UK’s interbank payment systems.   Consultation on delivery and regulation of the New Payments Architecture

In the context of their being unacceptably high risks that the current NPA programme will not provide value for money and could stifle competition, the Regulator is seeking views on limiting the initial central infrastructure contract to only those services that are most important to its successful launch in an effort to lower the risks.

 

The OBIE has published a consultation on CoP and the CRM Code and its implications for open banking payment journeys.

Stakeholder views on the Consultation paper can be given via an online Consultation Survey.

Main papers:   Consultation paper Proposition paper; Implications for OBIE R/W API Standards

A further Preliminary Analysis paper has also been published, which sets out in more detail the preliminary findings from the consumer research commissioned exploring the effectiveness of warnings.

 

Visa CEO says it is preparing to introduce Cryptocurrency Trading.

In its Results earnings call the CEO said that Visa wants to make cryptos “more useful and applicable for payments”. It will do this by dividing the crypto market into two segments – cryptocurrencies (“digital gold”) and digital currencies (“fiat-backed stablecoins and CBDCs”). The strategy will be to work with wallets and exchanges to enable users to purchase crypto using their Visa credentials or to cash out onto a Visa credential to make a fiat purchase at any of the 70 million merchants where Visa is accepted.

 

NatWest Group is to switch all its Debit portfolios to MasterCard.

Mastercard and NatWest Group are expanding their existing payments partnership with NatWest converting all the Group’s retail and business debit cards to Mastercard. The agreement includes all NatWest Group brands: NatWest, Royal Bank of Scotland, Ulster Bank and Coutts, totalling 16 million cards. The move will see MasterCard’s market share for debit increase approximately one in three of all consumer debit cards in circulation by banks in the UK. A timeline has not been given.

 

BBVA is selling Holvi to Keru Fintech Investments.

The digital banking service for self-employed and freelancers has effectively been purchased by its founder, who has set up Keru Fintechs for the purpose.  It will continue Holvi’s business in Finland, Germany and other European markets.

 

Payoneer and a SPAC have announced an agreed plan of reorganization.

The reorganization will create a new holding company that will be renamed Payoneer Global Inc. with the combined company operating as Payoneer, a U.S. publicly listed entity. The Company is expected to have an implied estimated enterprise value of approximately $3.3 billion at closing, based on current assumptions.  Payoneer’s management team will continue to lead the Company.

 

Payfuture has launched an AI-driven ‘Customer Conversion Recovery Tool’.

PayFuture’s conversion recovery tool will offer the customer an alternative local payment method if a transaction has declined for any reason with the aim of increasing approval rates whilst improving customer retention statistics.  Using Payfuture’s AI technology that anticipates when an online client is about to abandon a transaction, the solution will localise language, currency and most used local payment as standard to give the best by country user payment experience.

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