Latest global payments news

January 25, 2023 10:26 AM

Jasper Juinen/Bloomberg

Digital euro starts to take shape

The European Central Bank has released details of how a digital euro would function, including a free app and standards for connecting consumers, banks, businesses and other parties. In a speech, Fabio Panetta, an ECB board member, said the app would offer contactless payments, QR code support and an online payment portal. The ECB would also not set any limitations on who can pay with a digital euro or when and where it can be used, Panetta said. Panetta also said supervised intermediaries would be best placed to manage "conditional" payments and other advanced services, suggesting a role for private payment companies or commercial banks. The ECB also says the digital euro would not be "programmable money," again suggesting private intermediaries would manage blockchain-powered smart contracts that trigger automatic digital payments when certain conditions are met. The ECB also said it would not have access to personal data, though governments would have to set details on how privacy would be governed. The document does not mean there will be a digital euro — Panetta said that decision would be made by the legislators, who would also determine how to handle anti-money laundering, anti-terrorism financing, tax evasion and other risks. Central bank digital currency projects are underway in most countries, though the process involves tests, legislation and work to ensure different CBDCs can work together. —John Adams

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NAB targets summer launch for stablecoin

National Australia Bank plans to mint its own stablecoin, which will be backed by Australian dollars. Called AUDN , it will run on the Ethereum and Algorant blockchain. The stablecoin is scheduled to launch this summer, or winter for Australia. The bank plans to use the stablecoin for carbon credit trades, cross-border transfers and repurchase agreements. NAB is the second of Australia's four major banks to adopt a stablecoin, with ANZ launching its stablecoin in May 2023. Stablecoins are blacked by traditional currency to avoid the volatility of cryptocurrency, and are considered a more likely digital asset for payments. Stablecoins have come under regulatory scrutiny globally, mostly out of concern that some stablecoins are not entirely backed by traditional currency or government treasury bonds, but more risky collateral such as commercial paper. —John Adams

Barclays pushes U.K. tech investment outside of London

The U.K. government has tapped the Barclays Eagle Labs incubator network to manage a national startup program. The program includes an investment from Barclays, which will go toward support for startups in fintech and other industries. More than 80% of these firms are outside of London, the U.K.'s traditional business and technology hub. The government's Digital Growth Grant estimates that the firms could expand the U.K.'s digital industry by about $43 billion and create 678,000 jobs over the next three years. Eagle Labs will provide networking and other support for startups, with a focus on new companies from underserved communities. This year's program will provide training for about 10,000 businesses spread over Barclays Eagle Labs 38 locations in the U.K. —John Adams

BBVA expands open banking in Turkey

Garanti BBVA has debuted a service that allows consumers to use the Garanti BBVA mobile app and website to view information on accounts at other banks and financial institutions. The Turkish division of BBVA is also enabling merchants and corporate clients to access transaction data from outside institutions. The access is through open banking, which uses data sharing to support a range of products. Open banking has its roots in Europe following the implementation of the PSD2 data-sharing guidelines, though it is expanding globally as a migration toward digital finance requires greater and faster access to data from the point of sale and other touchpoints. Garanti BBVA plans to use the technology as the basis to build additional financial services in the coming year. —John Adams

German antitrust regulator probes PayPal

Germany's Federal Cartel Office is investigating PayPal out of concerns that the payment company is illegally restricting competition. PayPal is Germany's largest online payment company, and the country's most expensive, according to the FCO. PayPal sellers in Germany pay at least 2.49% of the transaction amount plus 0.35 euros for each payment. The FCO claims PayPal sellers cannot express a preference for rival payment methods and cannot offer discounts to buyers who choose a cheaper payment company. PayPal did not return a request for comment by deadline. European regulators frequently investigate U.S. companies for violating anti-competition laws due to payment fees, with Apple and Google coming under scrutiny in recent years. —John Adams

Mexican retailer launches mobile wallet

Grupo Coppel, parent company of Mexico's largest department store chain, has teamed with New York-based fintech Alviere to develop a mobile wallet accessible to Mexicans in the U.S., the companies said in a press release. The new Coppel Access wallet, which connects to Coppel's eight-year-old Appriza Pay cross-border service, aims to provide unbanked and underbanked Mexican consumers in the U.S. with payment services, including physical and digital debit cards, FDIC-insured checking and a remittance service for sending funds from the U.S. to Mexico. Alviere recently became a fully licensed U.S. embedded finance provider, according to a press release. —Kate Fitzgerald

Visa prepaid card launch targets unbanked Peruvians

International online payments technology provider AstroPay has teamed with Lima, Peru-based fintech Tebca to launch a prepaid Visa card for unbanked consumers, enabling them to make purchases at any e-commerce site that accepts Visa, according to a press release. The program includes a cash-back rewards program. AstroPay, launched more than a decade ago in the U.K., plans to work with local partners to expand Visa prepaid card access to unbanked consumers in Brazil, Mexico and Argentina. —Kate Fitzgerald

Female-led Spanish fintech raises $12 million

Twinco Capital, a Madrid-based fintech specializing in supply-chain finance for the fashion and retail industries, has raised $12 million in funding to expand to new international markets, according to a press release. The round was led by Quona Capital with participation from Working Capital Innovation Fund along with Mundi Ventures and Finch Capital. Banking industry veterans Sandra Nolasco, CEO, and Carmen Marin, COO, co-founded the firm in 2019 and aim to raise a $100 million debt facility this quarter. Twinco has integrated with more than 100 small- to midsize businesses in 12 different countries, with a concentration in Asia. —Kate Fitzgerald

Puerto Rican bank supports digital assets within cross-border payments

FV Bank, a U.S.-licensed global digital bank based in Puerto Rico, has launched a cross-border foreign exchange payments service enabling businesses and individuals to seamlessly transfer funds to more than 150 countries in seven currencies, according to a press release. The new service, which targets companies managing international payrolls and expenses, also supports digital assets so customers may instantly convert USD Coin (USDC) received in their FV Bank account to U.S. dollars upon deposit. —Kate Fitzgerald