Latest Payments News: Cash Mandate Moves Closer To Being Law In New York State, and more

Catch up on some of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

Cash Mandate Moves Closer To Being Law In New York State

Retailers will not be able to refuse cash payments in New York if Governor Kathy Hochul signs off on legislation that has passed both houses of the state legislature.

Legislation sponsored in the Senate by Senator James Sanders Jr. (S4153-A) and in the Assembly by Assembly member Catalina Cruz (A7929-A) would prohibit food retail and retail establishments from refusing cash, and impose civil penalties for breaches.

The bill, which proposes fines of $250 for the first offense and up to $500 for each succeeding breach, aims to prevent discrimination against those who are unbanked or lack financial stability and need to pay with cash because they lack access to a credit card or bank account.

“In an increasingly digital society, we must not forget those who rely on cash as their only means of payment”, said Senator Joseph Addabbo, Jr, co-sponsor of the bill.

“By prohibiting businesses from refusing cash, we ensure that purchasing of goods and services are open and accessible to all – especially the most vulnerable members of our community.”

Payments Firms Fret Over Connecticut Fee Caps On Income Advance Products

Proposed legislation to regulate earned wage access (EWA) in the US state of Connecticut is restrictive and could limit consumers' access to financial products, a payments industry body has warned.

EWA products, sometimes known as on-demand pay, or daily pay, seek to bridge the gap between consumers’ hours worked and the receipt of their paychecks by facilitating advanced access to earned but as yet unpaid wages.

The legislation proposed in Connecticut, SB 1396, imposes strict caps on the fees EWA providers can charge: $5 per transaction, not exceeding $30 per month per user.

The Innovative Payments Association (IPA), whose membership includes a number of EWA providers, said that, if enacted, the bill could limit consumers' access to EWA products and stifle progress in the industry.

In a letter to state senators, Brian Tate, president and CEO of the IPA, argued that SB 1396 would require providers to make large sums available by mandating that 75% of earned wages be made available, place a restrictive $5.00 fee cap on EWA services, and limit innovation by requiring providers to rely on "verified payroll data" to estimate earned, but not yet paid wages.

“These kinds of restrictions do not reflect how the EWA industry works, or the products offered and would undermine the viability of the product in the state of Connecticut,” Tate said.

He added: “As such, the IPA respectfully urges the Connecticut House to oppose SB 1396 in its current form. We encourage you and your colleagues to engage representatives from the payments industry to amend and improve SB 1396 or develop an alternative solution that will protect and empower consumers in Connecticut.”

In January 2024, Public Act 23-126, which classified EWA services as small loans, came into force in Connecticut.

In addition, the Connecticut Department of Banking determined that EWA service fees had to be included in APR calculations, often pushing the APR beyond the state’s legal cap and making it difficult for many EWA providers to operate in the state.

If enacted, SB 1396 would ease some of these restrictions by removing salary advances from some small loan requirements, mandating a zero fee option for consumers, and limiting finance charges.

Suri-Change Loses Dutch Licences Over Governance And Compliance Failures

The Rotterdam-based money services firm, hit by criminal investigation, IT breakdowns and branch closures, has been driven out of the Dutch market.

De Nederlandsche Bank (DNB) has revoked the licences of Suri-Change, a payment and currency exchange provider, after determining the firm could no longer meet its compliance obligations.

The decision followed a series of alarming developments at the company, including a criminal investigation, the resignation of its management board, and the closure of multiple branches.

Founded in 1986 and headquartered in Rotterdam, Suri-Change held licences to provide both currency exchange and payment services, with a particular focus on facilitating payments to and from Suriname, a small country in Latin America with a Dutch colonial past.

At its peak, the company operated multiple branches in Amsterdam, Rotterdam, and The Hague, as well as working with dozens of agents across the Netherlands.

However, in late March 2023, Dutch authorities launched a criminal probe into suspected offences by the firm and individuals associated with it, and this led to a complete board resignation, triggering significant governance concerns.

In its decision document, DNB said the company soon found itself unable to ensure sound and ethical business operations, with escalating operational problems including prolonged IT failures, the termination of lease agreements for several branches, and the closure of its bank accounts.

An audit in late 2022 had already raised red flags, warning that Suri-Change would likely be unable to meet its financial obligations in the foreseeable future.

Although the regulator gave the firm time to stabilise and recover, it ultimately concluded there was “no concrete prospect” of revival.

FCA’s Revocation of Fidelity's Registration Sends ‘Use It Or Lose It’ Warning

The UK’s Financial Conduct Authority (FCA) has cancelled Fidelity Payment Services Limited’s registration as a small payment institution (SPI), citing the firm’s failure to conduct any payment activities since its authorisation in 2016.

The revocation took effect last month, following a Final Notice issued by the FCA, after Fidelity failed to refer the matter to the Upper Tribunal within the required 28-day period following a decision notice served on April 2, 2025.

“The Firm has failed to provide payment services since registration,” the FCA said in its statement.

Fidelity, which was registered as an SPI on August 23, 2016, was required to submit annual regulatory returns.

According to the regulator, the firm submitted returns for each year from 2018 through 2024, consistently reporting that it had not carried out any payment transactions or business activity.

Under the Payment Services Regulations 2017 (PSRs), a firm’s registration may be revoked if it does not begin providing services within 12 months of registration, or if it is no longer carrying on the activity for which it is registered.

Following an investigation, the FCA concluded that Fidelity had not offered any payment services in nearly nine years and no longer met the criteria to remain registered.

Polish Regulator Pushes For Brussels To Drop Payments And Crypto Requirements

Aiming to reduce the compliance burden, Poland’s financial regulator has made a variety of proposals to the EU that would soften elements of key regulations affecting the payments and crypto industries.

The Polish Financial Supervision Authority (PFSA) has presented proposals that it hopes will “contribute to strengthening the competitiveness of the economies of the European Union, including the Polish economy”.

Among the key recommendations are amendments to the second Payment Services Directive (PSD2), the Digital Operational Resilience Act (DORA), the new Markets in Crypto-Assets Regulation (MiCA), and the Payment Accounts Directive (PAD).

One of the headline changes is a move to simplify reporting obligations under PSD2 for branches of credit institutions.

The PFSA is proposing that these branches should report operational and security risk data only to the supervisory authority in their home country, rather than duplicating submissions to host country regulators.

The regulator believes this reform would reduce confusion and administrative burdens, especially for smaller branch offices that often rely on centralised assessments from their parent banks.

“A sufficient obligation will be to report data for branches of credit institutions to home country supervisors,” the PFSA says.

“The current obligation creates a significant burden on supervised entities, which, often in the case of branches, are small entities that do not have the expected data, which, without data from their parent companies, cannot meet the expected requirements.”

The regulator wants to eliminate any doubt as to which supervisor – home or host – supervised entities should report individual PSD2 data to.

“The proposal would require reporting only to the home competent authority, which would have the effect of reducing the regulatory burden on branches of credit institutions.”

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