Daily Dash: Spain Comes Out Above Average For Instant Payments

• Half Of Spanish Payments Are Instant, Way Above EU Average
• PayPal Axes Thousands Of Jobs
• Contactless Payment Rules Eased In Bangladesh
• Paying By Card Just Got Easier For Mongolians Who Visit South Korea
• New UK Payments Watchdog Chair Confirmed
• DDoS Attacks Against European Financial Firms Surge
• Indian Reserve Bank's Digital Payments Index Rises Steadily Through 2021-22
• MEPs Express Concern About Crypto Political Funding
• Australia’s Westpac Bank Fined $4m In Hong Kong Over AML Failures
• Touch ‘N Go Ordered To Expand Product Disclosures, Consider Name Change
• Barclays Launches Semi-Permanent Banking Pods
• US Big Banks Taking On PayPal, Apple With New Digital Wallet
• More UK Communities Getting Shared Banking Hubs
• Universal Digital Payments Network For CBDCs, Stablecoins Launches At Davos
• Singapore, Malaysia Sign Data And Digital Economy Agreements
• Plaid Sends CFPB Data Wishlist
• 87 NatWest Branches Slated For Closure This Year
• Samsung Wallet Launches In Eight New Markets

Half Of Spanish Payments Are Instant, Way Above EU Average

Instant payments accounted for almost half of the total number of transactions processed on Spanish national payment system Iberpay, the operator of the central infrastructure, announced.

The processor claims that this ranks Spain first in Europe in terms of instant payments usage. Across the EU as a whole, instant payments on average account for just under 14 percent of SEPA credit transfers, according to the European Payments Council.

There were 823m instant payments made in Spain in 2022, with a value of €98.3bn. This represents a 44.6 percent increase in terms of volume and a 16.9 percent in value compared with the previous year.

Meanwhile, overall transactions made on the national infrastructure also reached a record 2.8bn in terms of number of transactions and €2.5bn in value, up 9.9 percent and 12.5 percent respectively during the year.

PayPal Axes Thousands Of Jobs

PayPal has cut 2,000 jobs, or 7 percent of its workforce, as it becomes the latest technology giant to cut costs.

The online payments company joins peers such as Alphabet and Microsoft that confirmed earlier this month that they were also making lay-offs. 

These reductions will occur over the coming weeks, with some organisations affected more than others, PayPal chief executive Dan Schulman said in a statement.

“Change can be difficult, particularly when it includes valued colleagues and friends departing,” said Schulman, who took over PayPal in 2014. “We will face this head-on together, drawing on the unparalleled scale of our global platform, the strategic investments we have made to strengthen our core capabilities and the trust and loyalty of our customers.”

Contactless Payment Rules Eased In Bangladesh

Bangladesh Bank has increased the cap allowed for transactions that are made via contactless card. 

Although the central bank first allowed contactless payments in 2018, the new circular says that transactions up to TK5,000 ($47) will no longer need a PIN or two-factor authentication. 

Users can operate contactless transactions by using near-field communication technology in debit, credit and prepaid cards, which are EMVCo compliant, the central bank’s circular said. 

Bangladesh rolled out contactless payments beyond its original base of credit cardholders to debit and prepaid cardholders last year, whereby the limit was set at TK3,000 ($35).

Paying By Card Just Got Easier For Mongolians Who Visit South Korea

A new partnership between South Korea’s BC Card and the Bank of Mongolia will allow Mongolians to pay by card at BC Card ATMs and payment terminals in South Korea.

The move is an expansion of an existing partnership between KT Group, a South Korean technology conglomerate and owner of BC Card, and the Mongolian central bank, aimed at creating payment linkages between the two countries.

T-Card is used by about 70 percent of Mongolians (a country of 3.3m people), and about 100,000 Mongolians visit South Korea every year.

At the same time, BC Card is conducting consultations with the Bank of Mongolia to improve the country’s payment system and reduce costs for merchants and banks.

New UK Payments Watchdog Chair Confirmed

The Payment Systems Regulator (PSR) has confirmed the appointment of Aidene Walsh as its new chair for a three-year term.

Effective immediately, this is the first time the PSR has had its own dedicated chair, with previous incumbents being joint chair of the Financial Conduct Authority and the PSR. 

“The next couple of years will see delivery of vital developments in payments as well as new innovations,” said Walsh.

“The PSR will continue to work with payment operators and firms, consumer and business groups and other regulators to ensure that the UK’s payment systems are fit for the future and that the wider ecosystem delivers competition and innovation.”

Meanwhile, Chris Hemsley, who serves as chief executive of the PSR, said that he welcomed the announcement and looked forward to working with Walsh. 

Walsh, who has served as interim chair since last April, has a background in banking and finance. 

She previously headed up the commercial cards department at Lloyds, transaction services at Royal Bank of Scotland, and was a payments consultant at Starling Bank.

DDoS Attacks Against European Financial Firms Surge

Distributed denial-of-service (DDoS) attacks targeting financial firms increased by 73 percent in Europe, a new report by FS-ISAC and Akamai has found.

In a DDoS attack, a website is targeted by multiple connected online devices to overwhelm it with traffic, slowing or even disabling it altogether.

According to the report, half of overall DDoS assaults were targeted at European financial institutions.

The increase in attacks against European firms was largely driven by political motivations, the report says, including the Russia-Ukraine war and other geopolitical conflicts, such as between China and Taiwan, as well as between the US, Israel and Iran.

DDoS attacks targeting financial firms globally also grew by 22 percent last year.

“Though DDoS attacks have been around for some time, we are seeing that they are evolving in new, innovative and aggressive ways,” said Steve Winterfeld, advisory CISO at Akamai. 

The report aims to “better educate the financial community about the threats of DDoS and to offer some threat trends and best practices for the sector to better combat these attacks”, he added.

Indian Reserve Bank's Digital Payments Index Rises Steadily Through 2021-22

The Reserve Bank of India (RBI) has published new data showing that its Digital Payments Index (DPI) rose almost 25 percent between September 2021 and September 2022.

In a statement, the bank said the DPI has increased across all parameters, driven by significant growth in payment infrastructure and payment performance throughout the country.

The bank has been publishing the DPI since January 2021, with the baseline reading backdated to March 2018.

The index comprises five parameters that enable measurement of “deepening and penetration” of digital payments over time.

The parameters include payment enablers, infrastructure, performance, demand- and supply-side factors and consumer centricity.

MEPs Express Concern About Crypto Political Funding

Parliamentarians in Brussels have said that they are worried about the funding of political parties by suspect crypto companies in a question to the European Commission. 

“Given that interest in the use of cryptocurrencies as political donations and the involvement of cryptocurrency companies in political campaigns are growing daily,” said Ilhan Kyuchyuk, Iskra Mihaylova and Atidzhe Alieva-Veli, who all sit with the centrist Renew wing, “several countries have begun establishing their own sets of laws and regulations governing cryptocurrency use”. 

The approaches taken at national level often consist of a complete ban on the introduction or use of cryptocurrencies or cryptocurrency companies. However, the MEPs pointed out that in a number of countries, laws are being circumvented when individual employees or managers of these companies make personal donations to a specific political party.

The parliamentarians have asked whether the commission plans to set up a regulatory framework to prevent the funding of political parties and entities by “dubious” crypto companies.

They have also asked how the commission intends to protect European democracy when “representatives of political entities, through the receipt of money from criminal organisations, are being elected to leadership positions”.

Australia’s Westpac Bank Fined $4m In Hong Kong Over AML Failures

The Hong Kong Monetary Authority (HKMA) has announced that it has issued a HK$4m ($510,000) fine to Australia’s Westpac Bank for anti-money laundering and counter-terrorist financing (AML/CTF) failures.

In a statement, the HKMA said that between June 2016 and May 2017, Westpac’s local subsidiary failed to complete periodic reviews of certain customers on time, as required by law.

In deciding the penalty fee, the HKMA said it considered that Westpac has no previous record of AML failures in Hong Kong, had cooperated with investigators and has rectified the deficiencies identified.

“Timely periodic reviews for customers is a vital part of an effective framework for banks to help combat money laundering,” said Carmen Chu, executive director of enforcement and AML at the HKMA.

“Banks should maintain up-to-date understanding of risks and deploy adequate resources to detect and deter abuse of accounts.”

Touch ‘N Go Ordered To Expand Product Disclosures, Consider Name Change

Malaysia’s Touch ‘N Go has been ordered by regulators to expand its card sales and support centres in areas beyond Kuala Lumpur, and add new disclosures to its products.

Following a hearing with the Ministry of Domestic Trade and Cost of Living (KPDN), Touch ‘N Go was ordered to do more to inform its customers that the Touch ‘N Go Visa Card, for example, cannot be used at government toll booths.

Regulators said they have received complaints from customers who assumed that the Visa card, as with other Touch ‘N Go cards, could be used to make contactless payments at toll booths.

Touch ‘N Go was asked to consider changing the name of the Visa card to avoid confusion and has been given one week to submit an action plan to regulators.

Barclays Launches Semi-Permanent Banking Pods

Barclays has announced the launch of new banking pods, semi-permanent structures to be placed in UK shopping centres and retail parks, and the expansion of its Barclays Local initiative.

According to the bank, the semi-permanent banking pods provide a dedicated, private space in locations such as shopping centres and retail parks and can be moved depending on demand. The bank is planning to roll out at least ten of these structures across the UK by Ssummer 2023.

Additionally, the bank will expand the Barclays Local service by more than 70 sites throughout the year. Currently, Barclays works with local councils and communities at 200 sites, including town halls and libraries, to offer face-to-face assistance to customers.

In addition, six electric vehicle (EV) banking vans will be added to the existing fleet of ten, to allow bank employees to reach customers in remote locations.

“As visits to branches continue to fall, we need to reimagine where and how we show up to provide the best service for customers now and in the future,” Jo Mayer, head of everyday banking at Barclays UK, commented.

“Our new banking pods and community pop-ups help us to tailor our in-person support for each location, including support with digital skills. In areas where we close a branch, we will maintain our presence in that community offering an alternative face-to-face solution,” she added.

US Big Banks Taking On PayPal, Apple With New Digital Wallet

Early Warning Services (EWS), a fintech company owned by seven of the largest US banks and operator of the popular Zelle network, has confirmed plans to launch a new card-funded e-wallet later this year, which it hopes will “uniquely address longstanding payment problems in e-commerce”.

EWS said the wallet will initially connect to Visa and Mastercard credit and debit cards, but it plans to add further networks in the future.

“The wallet aims to provide an easy and secure way for consumers to pay online — no need to manually add card details, instead, a tokenised number is provided to the merchant,” the company said. 

By simplifying the checkout process, merchants will also benefit from lower cart abandonment rates, the company said. 

The announcement came one day after the Wall Street Journal first reported the new initiative and claimed the wallet is being built by the banks to compete with third-party wallet operators such as PayPal and Apple Pay.

More UK Communities Getting Shared Banking Hubs

A further nine new banking hubs and six new deposit services have been recommended by LINK, the UK’s Cash Access and ATM network, as a result of a commitment from the banking industry to protect access to cash.

This will take the total number of new cash services recommended by LINK to 76; 38 banking hubs and 38 deposit services.

New communities benefiting from a shared banking hub include Shoreham By Sea in West Sussex, and Heywood in Greater Manchester. 

Meanwhile, some hubs are in response to requests from the local community, such as Clay Cross in Derbyshire, and Earlestown in Merseyside. 

“Access to cash and face-to-face banking services continues to be important for millions of people across the UK,” said John Howells, chief executive of LINK. “Not everyone can or is able to go digital yet, so we’re pleased to announce new cash services to support these communities.”

The new hubs come at the same time as more bank branches are due to close, as announced recently by Lloyds and NatWest (see below).

Universal Digital Payments Network For CBDCs, Stablecoins Launches At Davos

The Universal Digital Payments Network (UDPN) was launched during an event at Davos at the annual meeting of the World Economic Forum (WEF), ahead of a new proof of concept that starts this month.

The UDPN is a blockchain-based messaging backbone focused on providing interoperability between regulated stablecoins and central bank digital currencies (CBDCs), and connectivity between business IT systems.

Representatives from Deutsche Bank, HSBC, Standard Chartered, The Bank of East Asia, and Akbank attended the launch event.

The UDPN was developed with contributions from global IT engineering and solutions provider GFT, decentralised cloud infrastructure company Red Date Technology, and TOKO, the digital asset creation engine delivered in collaboration with DLA Piper.

Singapore, Malaysia Sign Data And Digital Economy Agreements

Singapore and Malaysia have signed a memorandum of understanding (MoU) designed to enhance cooperation in data sharing, data protection and associated cybersecurity.

The MoU was signed by Malaysia’s Ministry of Communications and Digital (KKD) and Singapore’s Ministry of Communications and Information (MCI), and was witnessed by the prime ministers of both countries.

Additionally, the two countries signed two separate agreements to establish joint frameworks for cooperation on digital economy and green economy issues.

The digital economy agreement included references to cooperation on frictionless cross-border trade, payments and commercial data flows.

Plaid Sends CFPB Data Wishlist

Plaid, one of the US’ leading fintechs, has sent the Consumer Financial Protection Bureau (CFPB) a list of proposals regarding the Personal Financial Data Rights.

The CFPB issued two consultations to collect information related to personal financial data rights earlier this month. 

Plaid states that it believes the proposal is a positive step, and lists recommendations including ensuring consumers have equivalent direct and third-party access to the data they need to manage their finances, supports the ecosystem’s shift away from credential sharing and ensures sufficient disclosures and controls across all consumer finance service providers.

The regulator has also been warned to protect against anti-competitive conduct designed to interfere with a consumer’s right to share their own data and to supervise third-party providers to ensure they act responsibly.

87 NatWest Branches Slated For Closure This Year

NatWest, one of the UK’s largest retail banks, has announced that a further 23 bank branches will be closed this year, taking the number of those due to shutter to 87. 

The bank defended its decision, stating that, as with many industries, most customers had shifted to mobile and online banking, while stating that no one will be left behind by its decision. 

This comes a week after its competitor Lloyds said that it would be closing 40 of its branches in England and Wales. 

However, the bank also defended this decision, stating that the number of customers visiting the branches it has penned to close had dropped by an average of 60 percent over the last five years.

Samsung Wallet Launches In Eight New Markets

Samsung has announced that Samsung Wallet will be available in eight new markets as of January 30, including Australia, Brazil, Canada, Hong Kong, India, Malaysia, Singapore and Taiwan.

Samsung Wallet can store a range of digital cards and passes that can be used both online and offline, including payment cards, memberships, gift cards, coupons, digital keys, boarding passes and digital assets.

Last year, Samsung launched the Samsung Wallet in 21 countries, including China, Germany, Italy, France, Spain, Switzerland, Vietnam and the UAE.

In South Korea, the wallet replaced Samsung Pay in June 2022. The same replacement of Samsung Pay will take place in India this month.