Global news roundup

May 4, 2022 9:46 AM

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In global news this week, Grab gets approval to offer digital banking in Malaysia; Italy's post office invests $27 million in a a buy now/pay later lender; Apple struggles to appease Dutch regulators; and more.

Here's what's happening around the world.

Grab's digital banking venture gets regulatory approval

The ride sharing and financial services provider Grab has received a banking license in Malaysia, allowing the Singapore-based company to move forward. Grab is teaming with Singtel on the venture, a Singapore-based telco which Grab says represents 97% of all businesses in Malaysia. Grab and Singtel, which have been developing a digital bank for the past two years, also have a banking license in Singapore.

Citi begins real-time payments in Europe

Citigroup is expanding its instant payment coverage, launching Single Euro Payments Area (SEPA) instant transactions in 36 countries. The move allows the bank to support transfers that can settle within seconds with immediate funding to recipients. Citigroup has supported real-time payments in the U.S. through The Clearing House's RTP rail, including the request for pay (RfP) service for instant billing. Europe's EBA Clearing, which operates a real-time payments rail in the SEPA zone, is working with TCH to test cross-border payments that can settle in seconds.

Apple's payment concessions don't sway Dutch regulators

The Authority for Consumers and Markets in the Netherlands has rejected a proposal from Apple to loosen its payment policies, which are under fire in the EU and elsewhere over requirements to use Apple's in-house system and pay a fee of up to 30%. Apple proposed allowing developers to use an external payment rail or Apple's, but not both — and pay a commission of 27% for alternative payment processing. Dutch regulators said that proposal is an improvement, but would not comply with the country's or European antitrust regulations, reports 9to5Mac. The Dutch government has fined Apple more than $50 million altogether, spread over a series of penalties this year based on its payment practices.

Italy's postal service invests in installment lender

Poste Italiane has invested $27 million in Scalapay, a three-year old Italian buy now/pay later provider that recently passed the $1 billion plateau in valuation. Poste Italiane operates Italy's post offices, and also provides financial services, insurance, payment processing and telco products. The postal service has nearly 30 million payment cards in circulation and 9 million users for its mobile wallet. It recently teamed with BNY Mellon to invest in Volante Technologies, which provides cloud payments and financial messaging. Scalapay serves merchants in Italy, France, Germany, Spain, Portugal, Finland, Belgium, the Netherlands and Australia.

Western Union, U.K. Post Office add digital options

Citing a decline in bank branches in the U.K., Western Union and the country's postal service are adding a retail cross-border transfer option. The service is scheduled to launch in late 2022 in about 4,000 Post Office locations, and will also be accessible through the Post Office's app, website and in person. Consumers can have funds paid in cash, onto a card, mobile wallet or into a bank account. Western Union said the collaboration is part of a broader omnichannel transformation, and it would seek similar partnerships in other markets. The U.K. Post Office has also been attempting to broaden its offerings as the cost of its cash-management operation increases.

Biometric card partnership launches in India

Digital payment company Mswipe and biometric company Fingerprints plan to offer biometric debit and credit cards in India, targeting what they say is an addressable market of more than 100,000 merchants and 940 million consumers. The two companies cited the fast growth of digital and contactless payments in India as an opportunity for biometrics for touch-free transactions. Digital payments in India in 2021 totaled more than $690 million, up from about $270 million the prior year, according to Statista. India also has the United Payments Interface, a national rail that encourages uptake of digital payments.