Regal brings on-chain payments to the movies

December 27, 2024 2:42 PM

In this week's banking news roundup: Regal theaters are accepting on-chain U.S. digital currency payments in a collaboration with Coinbase and Flexa; the Bank of Nova Scotia has completed its second investment in KeyCorp; Fiserv entered into an agreement to acquire Canadian-based payments fintech Payfare; and more.

Inside A Regal Entertainment Group Live Stadium Cinema Location Ahead Of Earnings Figures

Patrick T. Fallon/Bloomberg

Movie theater chain Regal to accept USDC payments

Regal Cinemas is accepting on-chain U.S. digital currency payments for movie tickets and concessions. It's the latest company to show how digital currencies can be used for ordinary purchases.

The additional payment method is being offered through a collaboration with digital currency exchange Coinbase and digital currency payment fintech Flexa. Customers will receive a 10% discount on purchases made through Jan. 6, according to Coinbase.

"We're thrilled to bring on-chain payments to a classic American pastime," said Ashlyn Turner, marketing and sales manager at Regal. "For those already familiar with crypto, this is a chance to use digital dollars for a discounted night out. And for newcomers, the discount at Regal offers a glimpse into the benefits of on-chain payments." —Joey Pizzolato

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Scotiabank completes minority investment in KeyCorp

The Bank of Nova Scotia has completed its second investment in KeyCorp, the two companies said Friday in press releases. Scotiabank, one of Canada's largest banks, now owns approximately 14.9% of Cleveland-based Key, the parent company of KeyBank. The latest $2 billion investment comes two weeks after the Federal Reserve approved Scotiabank's request to increase its ownership stake to as much as 14.9%.

Toronto-based Scotiabank first acquired Key common stock in August when it paid about $800 million for a 4.9% equity stake in the company. The investment is part of Scotiabank's growth strategy in the United States, which involves shifting capital from developing markets to already-developed markets in North America.

"Our investment in KeyCorp represents a cost-effective, low-risk approach to deploying capital into the U.S. while boosting returns for our shareholders," Scott Thomson, president and CEO, said in a release. —Allissa Kline

Mary de Wet / American Banker

Fiserv to acquire Canadian payments fintech Payfare

Fiserv entered into a definitive agreement to acquire Canadian-based payments fintech Payfare for an undisclosed amount in a move to bolster its embedded finance offering.

Payfare provides digital banking and payments services to gig workers and counts Doordash, Lyft and Uber as some of its clients.

The acquisition is subject to customary closing conditions and is expected to finalize in the first half of 2025, Fiserv said Monday.

"Payfare has built a reputation as an innovator in workforce payments for gig-economy companies," Fiserv Chairman and CEO Frank Bisignano said in a statement. "Together, we can accelerate the delivery of embedded finance solutions for all of our clients, empowering their next chapter of success. We look forward to welcoming the talented Payfare team to Fiserv." —Joey Pizzolato

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New Zealand proposes cap on interchange fees

Last week, New Zealand's Commerce Commission issued a draft proposal that would put a cap on interchange fees for Visa and Mastercard payment methods.

The draft proposal would lower interchange fees for previously regulated payment methods and add new controls to payment methods that didn't have a cap, according to the.

The Commerce Commission is looking to reduce fees payment processing giants charge merchants, which then get passed onto the consumer. In July the Commission said consumers spend about 95 billion New Zealand dollars ($53.6 million) each year using Visa and Mastercard products, and that New Zealand businesses incur about $1 billion in fees to process those payments.

In-person and online commercial credit and foreign-issued card transactions would have new caps imposed, and domestic debit and credit card transactions' caps would be lowered under the proposal. —Joey Pizzolato

Nigeria's Dying ATMs Leave a Cash-Shaped Hole Filled by Agents

Damilola Onafumwa/Bloomberg

Nigerian digital wallet partners with e-commerce platform Jumia

PalmPay, a Nigerian digital payments fintech, and African e-commerce giant Jumia have partnered to help drive adoption for the cashless economy on the continent.

PalmPay's digital wallet will be integrated as a payment option on Jumia's platform that will allow customers to pay directly from their bank account, TechCabal reported.

"Having started my career in Africa with Jumia Group, which helped to pioneer the growth of the digital economy on the continent, this partnership with PalmPay — where we've worked to embed cashless payment habits into daily life — truly feels like coming full circle," PalmPay Chief Marketing Officer Sofia Zab said in a LinkedIn post.

The payments landscape has been undergoing "significant" changes with noncash transactions "surging," according to the central bank of Nigeria. As of June 30, 2024, internet payments accounted for 51.9% of all electronic payments. Electronic payments transacted at the point of sale accounted for 28.5%, and mobile payments accounted for 15.6%. —Joey Pizzolato

Orange County Bancorp logo on June 1, 2024.

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Orange Bank declares 2-for-1 stock split

Orange County Bancorp, the parent company for Orange Bank & Trust and Hudson Valley Investment Advisors, declared a 2-for-1 split of its common stock.

Orange Bank investors will receive one share for every share they owned on Jan. 9. The stock will trade on a split-adjusted basis on Jan. 13. The company expects its outstanding shares will increase to 11.4 million from 5.7 million after the split.

The stock closed Thursday on the Nasdaq exchange at $56.17, down about 6.8% for the year.

Orange County Bancorp President and CEO Michael Gilfeather recently told American Banker about his expansion plans and that he believes the Bronx "could be our biggest market within five years." —Mary de Wet

First Hawaiian’s COO to depart in March

Christopher Dods, First Hawaiian's vice chairman and chief operating officer since May 2021, has announced plans to leave the $23.8 billion-asset company in March 2025.

As COO, Dods had a wide remit, covering digital banking, consumer products, enterprise technology management, data and analytics and strategy and transformation.

"Chris has been a key member of our management team and has made significant contributions to FHB during his time at the bank," First Hawaiian Chairman, President and CEO Bob Harrison said in a press release.

Dods joined the Honolulu-based First Hawaiian in 2007 in the card services division. He managed credit and debit card product development, operations and compliance.

"My career here will always be a source of pride, and my love for the people and the organization can never be overstated," Dods said in the release.

Founded in 1858 as Bishop and Company, First Hawaiian is Hawaii's oldest and largest bank.

The bank announced Dods' resignation Thursday. He will work with the management team through the first quarter of 2025 to ensure a smooth transition of his responsibilities. —John Reosti

Toru Hanai/Bloomberg

Ex-comedian joins ex-Goldman analyst to advise Japan stock fund

A former comedian and an ex-Goldman Sachs Group analyst will offer investment advice for a Japanese equity fund that's set to launch in January.

The fund will be run by Tokyo-based asset management firm Fundnote, and will invest in stocks with limited downside by looking at their price-earnings ratio and price-to-cash flow ratio, among other measures, and it seeks to capture so-called alpha, according to its website.

Former Goldman analyst Keizo Takeiri and retail investor Toshiya Imura, an ex-comedian with more than 334,000 followers on X whose disclosed holdings have moved shares in the past, will provide investment advice. The size of the fund will initially be limited to ¥10 billion ($63.5 million).

The fund may not be able to fully capture demand from retail investors as it doesn't qualify for a tax-free investment scheme for individuals, according to its registration statement. —Yasutaka Tamura, Bloomberg News

Bloomberg News

JPMorgan hires BofA’s Shimada to lead Japan mergers

JPMorgan Chase hired Satoshi Shimada from Bank of America to head its Japan mergers and acquisitions team in Tokyo, as deal-making activity in the country booms.

Shimada recently joined JPMorgan as managing director to lead the bank's M&A business in Japan, according to a company spokesperson. His predecessor at JPMorgan, Koichiro Doi, will become vice chairman of Japan M&A and focus on relationship building with key clients, the bank said.

Deal activity has been surging in Japan, fueled by a government push for companies to boost shareholder value, a weak yen and low borrowing costs. That's led to more take-private deals involving private equity firms, domestic consolidation and both outbound and inbound mergers and acquisitions. —Lisa Du, Bloomberg News