NatWest adds generative AI, American Express expands pay-by-bank

November 8, 2023 9:23 AM

NatWest is updating its chatbot, Cora, to make engagement more conversational, and Amex is working with the Canadian fintech Nuvei to promote bank-transfer payments to U.K. merchants.

Here's what's happening around the world this week:

Chris Ratcliffe/Bloomberg

NatWest using AI to make its bot more 'human'

NatWest is updating its chatbot, Cora, embedding generative AI into the program to make engagement more conversational. The bank has partnered with IBM, using AI and watsonX, IBM's data platform. Called Cora+, the bot will access data from more sources to answer questions about bank services, information about the bank and job postings. "Building on Cora's success over the last five years, we're working with companies like IBM to leverage the latest generative AI innovations that will help make Cora feel even more 'human' and, most importantly, a trusted, safe and reliable digital partner for our customers," said Wendy Redshaw, chief digital information officer of the NatWest Group's Retail Bank, in a release. The deployment follows one by Commonwealth Bank of Australia, which recently announced it will experiment with generativeAI to test products by simulating human behavior. —John Adams

Jason Alden/Bloomberg

Amex, Nuvei power pay-by-bank service the U.K.

American Express has chosen Canadian fintech Nuvei Corp. to promote adoption of Amex's Pay with Bank transfer (PwBt) product to U.K. merchants, according to a press release. Merchants that already accept payments through Nuvei's platform may add PwBt to their online checkout pages, enabling customers to make payments directly from any bank account covered by open banking technology. PwBt transactions are reconciled instantly. More than 7 million U.K. consumers are using open banking to pay recurring bills and certain one-time payments for travel and other high-value purchases, the release said. Montreal-based Nuvei paid $1.3 billion this year to acquire Atlanta-based payments provider Paya. —Kate Fitzgerald

Payments Canada picks European firm for core system security

Toronto-based Payments Canada, which operates Canada's payment clearing and settlement system, has selected Italy-based Nexi to fortify security for Lynx, Canada's payments rail for high-value transactions, according to a press release. Under Nexi's RTGS Extreme Contingency Solution, Canada's central bank may access a backup site that will remain available for activation in case of a natural or accidental disaster, network failure or malicious attack. In 2020, Nexi, based in Milan, rolled up three major European payments technology firms via acquisition in order to serve payments system operators in numerous countries. —Kate Fitzgerald

ACI, Interswitch launch payment project in Africa

ACI Worldwide and Interswitch have formed a collaboration to modernize payments in sub-Saharan Africa. The two payment firms will enable banks and other financial institutions to add digital processing using the Miami-based ACI's Enterprise Payments Platform and the Lagos, Nigeria-based Interswitch's payment rails, which connect to businesses and consumers in the region. The two firms hope to extend access to payment systems for both local and cross-border transactions, as well as provide a way to make quick updates to respond to business or regulatory conditions. Other U.S.-based firms are putting money into payments in Africa, including Visa, which has committed to investing $1 billion in Africa between 2022 and 2027. Visa also recently partnered with Direct Transact to provide payment processing in the region. —John Adams

Ripple expands its international CBDC work

Ripple is supplying technology to the National Bank of Georgia's Digital Lari pilot. The test will use Ripple's central bank digital currency tools to determine how a digital currency can be used and whether it is a viable option. Georgia's central bank ran a search for a technology partner and chose Ripple based on the firms' experience in CBDCs and other digital assets. Ripple has worked on several CBDC and stablecoin projects, including a digital currency in Montenegro. Ripple recently released CBDC Platform, a product that enables central banks, governments and financial institutions to issue their own central bank digital currencies and stablecoins that are interoperable with other CBDCs. Ripple for years has used the blockchain technology that powers the XRP token to support cross-border payments. —John Adams

Stripe expands utility payments in the U.K.

U.K.-based gas and energy provider EDF has added Stripe to contribute to an overhaul of how the company bills and collects payments from residential and small-business users. Stripe will enable EDF to collect payments on its website, an app or via a phone call. "The energy sector in the U.K. has been underserved by legacy technology for too long," said Max Roberts, EMEA revenue and growth lead at Stripe, in a release. "EDF is a great example of a provider modernizing its payments infrastructure to serve customers better." Stripe has added several products over the past year as it attempts to diversify beyond its core business of supplying a digital payment layer for small businesses. Stripe's rivals for the new utility product include PayPal, which offers a similar service in the U.K. —John Adams

Airwallex offers Australian businesses local access to U.S. dollar accounts

Airwallex is offering Australian businesses the ability to earn returns on U.S. dollar balances without opening an overseas bank account. The cross-border payments fintech, which is headquartered in Singapore but was founded in Melbourne, is partnering with JPMorgan to enable businesses to deposit and invest their U.S. and Australian dollars. Airwallex is positioning the product as a way to reduce friction for local Australian businesses that want to invest U.S. dollars. Called Yield, the product will be offered to customers with a minimum investment threshold immediately, with a plan for wider rollout in 2024. Airwallex plans to add more currencies and countries in the new year. Airwallex's backers included Mastercard and ANZ. It also partners with Visa to offer a multicurrency cross-border payments product. —John Adams

Mastercard and European fintech team on cross-border payments

Mastercard and Malta-based payment and financial services firm FinXP have collaborated on an international payment product called FinXP Plus. FinXP will access Mastercard's cross-border service to reach Mastercard's network to provide scale. The system will support more than 100 countries and handle transactions in U.S. dollars, euros, U.K. pounds and more than a dozen other currencies. Merchants can make payouts to bank accounts, cards, mobile wallets and cash-out locations. The service integrates with FinXP's Euro international bank account service, which supports corporate accounts that can receive and make payments, and use the funds through a plastic debit card. Mastercard has entered or expanded dozens of partnerships over the past several years to enhance its cross-border payments business. —John Adams

HSBC tokenizes gold

HSBC has developed a platform that can tokenize the gold that clients hold in the bank's vault in London. The bank does this by forming a digital twin of the physical gold. This twin can be bought, sold or traded like any other asset through the bank's single dealer platform, called Evolve. The platform's digital dashboard enables clients to track their gold holdings, trades and other positions. Each gold token is equal to 0.001 ounces of gold in the London vault. Each tangible gold bar in the vault is 400 ounces. The concept is not entirely new. The U.K.'s Royal Mint, which manufactures British coins, created a blockchain system that enables buying, selling and holding digitized gold. —John Adams