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Germany: Daimler Announces Rollout Of New In-Car Payments Technology
German car manufacturer Daimler has said from Spring 2002 Mercedes-Benz customers in the UK and Germany will be able to make payments using a fingerprint sensor in their car. Utilising Visa’s security and authentication technology, purchases can be made directly through car’s head unit, or MBUX. As payments are based on biometric fingerprints it will conform to two-factor authentication requirements.
“A luxury customer experience of course includes the aspect of safety, and we fulfil that through native in-car payment. We offer our customers security not only when driving, but also when paying,” read a company press release.
In-car payments are widely regarded as one of the key growth markets for internet-of-things type solutions. It allows drivers to pay seamlessly and securely for a growing range of services, including in-car entertainment and information, as well as potentially paying for petrol, toll-roads and even garage repairs.
According to Daimler: “In the next two years alone, the number of connected cars is estimated to increase to more than 352 million worldwide and the total volume of in-car payments is set to reach approximately $86 billion by 2025.”
Daimler said that it anticipates the solution will be available in other markets globally at a later stage.
United Kingdom: Which? Asks For Ending Reimbursement Lottery
UK consumer association Which? has revealed that banks continue to deny compensation for victims of authorised push payment (APP) fraud despite signing up for a voluntary code of conduct. The organisation is asking for regulation making APP fraud reimbursement mandatory for all firms using Faster Payments.
According to data exclusively obtained by Which?, the UK Financial Ombudsman Service, which manages disputes between financial firms and customers, ruled against banks in 73 percent of APP fraud cases.
This means that the ombudsman has ruled in favour of consumers in nearly three quarters of cases where APP fraud victims did not get a refund from their banks and were forced to file a complaint with the consumer protection body.
The UK has seen a 71 percent increase in APP fraud in the first half of 2021, causing consumers £355m in losses. To reduce this type of scam and accidentally misdirected payment, several European countries have introduced Confirmation of Payee (CoP). Although the UK has seen positive changes after launching the product, CoP is unlikely to be enough to stop APP fraud on its own.
Banks are required to refund consumers for losses to unauthorised fraud such as card fraud, but not APP fraud. In May 2019, several banks signed a voluntary Contingent Reimbursement Model (CRM) Code to help consumers identify APP scams. It also included a commitment to reimburse customers even if both parties have done nothing wrong.
The consumer association names NatWest and the Royal Bank of Scotland as those that “are getting it wrong” the most times (nine out of ten), closely followed by Santander, Bank of Scotland and Starling. All of these banks are signed up to the CRM Code, Which? stresses.
“Clearly the current reimbursement lottery cannot continue, as banks cannot be trusted to deal with reimbursement themselves,” the association says.
Hence, Which? is urging the UK government to “swiftly take the necessary action to enable the Payment Systems Regulator (PSR) to introduce mandatory APP fraud reimbursement for all firms using Faster Payments”.
Austria: Country To Become First EU State To Tax Cryptocurrencies
An Austrian draft tax reform would require cryptocurrency gains to be reported for tax purposes as part of a wider “eco-social” tax reform that aims to reduce CO2 emissions, the finance ministry announced.
The bill would bring cryptocurrencies into the existing tax framework. For capital asset gains, it proposes to make cryptocurrency gains subject to the special tax rate of 27.5 percent.
The tax reform is expected to come into force on March 1, 2022 and will apply to cryptocurrencies purchased after February 28, 2021. Cryptocurrencies that were acquired prior to that are considered "old assets" and are not subject to the new taxation regime.
On November 8, the bill was sent to stakeholders for assessment as part of the Austrian legislative process. If passed, Austria would become the first member state in the EU to impose tax requirements on cryptocurrency gains.
New Zealand and Australia: New BNPL Consultation And End To No Surcharging Rule
The New Zealand government has opened a consultation on buy now, pay later (BNPL) services as part of its efforts to ensure the service delivers long-term benefits for consumers.
The government is concerned that for some consumers the use of BNPL could result in financial hardship.
BNPL is a fast growing but relatively new service in New Zealand. Under current rules, BNPL does not fit within consumer credit regulations in New Zealand.
“Unlike credit cards, or other common credit products, BNPL products do not charge interest or fees (other than missed payment fees) or take a security interest over goods. Because of this, BNPL is not required to comply with the rules under the current consumer credit contract legislation.”
Meanwhile, in neighbouring Australia, which is one of the largest markets for BNPL, the service was dealt a potential blow in October when the Reserve Bank of Australia said that BNPL operators should no longer be allowed to bar retailers from passing on the cost of participating in the schemes to customers.
“BNPL services are often free or inexpensive for consumers to use if payments are made on time, but tend to be expensive for merchants to accept. Despite this, providers of BNPL services typically have ‘no-surcharge’ rules that prevent merchants from passing on these costs to the consumers who benefit from using the BNPL service.”
Egypt: Central Bank Regulates Instant Payments And New Mobile App On Its Way
Egypt’s central bank has introduced regulations that will allow residents to make instant payments between bank accounts using their mobile phone. In addition, a new scheme will be launched by the end of the year allowing customers to manage their bank accounts and initiate payments to other bank accounts through a single app.
Instant payments continue to expand around the world, but to date there are few African markets with instant payments infrastructure. The most notable exceptions include Nigeria, South Africa and Kenya.
The new regulations follow a wave of activity from the central bank to help grow non-cash payments in the country and improve customer protection. These include the approving of licences for contactless payments from mobile phones and a new data protection law, inspired by the UK’s GDPR.
Europe: ECB Announces Manager For Digital Euro Project
The European Central Bank (ECB) has announced that ING’s global director payments, Evelien Witlox, will take up the position of programme manager of the digital euro project at the ECB from January 1, 2022.
Back in October the ECB announced that it was inviting technology experts to take part in online technical talks to explore options for the design of a central bank digital currency.
The latest appointment is further evidence of the EU's intentions to develop a digital euro.
