Weekly Headlines 31 January 2020

31st January 2020

New York bans cashless stores

WEF global consortium on digital currencies

BIS on fintech regulation

Germans converting to contactless

PSR seeks views on UK payments

WEX makes M&A move

Commonwealth Bank of Australia adds to Klarna investment

 

New York is placing a ban on cashless stores.

The ban is designed to prevent what some see as discrimination against low income shoppers with limited or no access to bank accounts, aimed at tackling “the excesses of the digital economy”.

 

The World Economic Forum has announced a global consortium focused on designing a framework for the governance of digital currencies.

The initiative will bring together leading companies, financial institutions, government representatives, technical experts, academics, international organizations, NGOs and members of the Forum’s communities on a global level and will focus on solutions for a fragmented regulatory system.

 

BISPolicy responses to fintech: a cross-country overview    Paper  Executive Summary

Based on survey responses from around 30 jurisdictions, this paper provides a cross-country overview of policy responses to fintech developments. In addition, the paper proposes a conceptual framework through which to analyse policy responses to fintech, referred to as the “fintech tree”.

 

Deutsche BundesbankContactless payment has become the norm in Germany  Infographic (in German)

A survey indicates that 32% of debit card holders and 39% of credit card holders are now making contactless payments. Uptake is being slowed by the fact that only 49% of debit card have the functionality. Smartphones are being used at POS by 11% of respondents with 5% claiming to use Google Pay and 4% Apple Pay

 

The PSR has issued a Call for Input on competition issues that could arise in the UK’s New Payments Architecture. CP20/2 – Call for input

The regulator is seeking to gather feedback on the likelihood of competition issues materialising in the NPA and how harmful or significant they could prove to be.  The overall aim is to provide greater clarity and more detail on the PSR’s expectations, concerns and regulatory approach.

 

WEX has announced that it has entered into a definitive agreement to purchase eNett and Optal for c$1.7bn.

WEX is acquiring eNett, a provider of B2B payments solutions to the travel industry, from Travelport and its owners and acquiring Optal, a specialist in optimizing B2B transactions, from private shareholders. The two companies, which are already highly integrated, will be fully integrated under WEX’s ownership. The move is seen as strengthening WEX’s position in the global travel marketplace.

 

The Commonwealth Bank of Australia has invested a further US$200m in Klarna as it launches in Australia.

The new investment adds to the $100m CBA invested last year, bringing its shareholding in Klarna Group to 5.5%. CBA and Klarna will jointly fund and have 50:50 ownership rights to Klarna’s Australian and New Zealand business. CBA also retains a right to partner with Klarna in Indonesia.

 

Industry Videos

Pay.UK short video covering the way it is working to develop  common standards for UK payments.

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