FCA plans social media crackdown, Swift completes real-time payments test

July 19, 2023 10:21 AM

The Financial Conduct Authority is developing new rules that tighten how financial firms can use social media, Swift and a group of banks have successfully piloted instant payments between different countries and currencies, and more.

Here's what's happening around the world.

Chris Ratcliffe/Bloomberg

U.K. bank regulator plans crackdown on social media marketing

The Financial Conduct Authority is developing new rules that tighten how financial firms can use social media, particularly in terms of how messages are used to sell products. The regulator is concerned that existing guidance is not adequate to prevent risk to consumers. It is taking aim at "finfluencers" that tout investment products and cryptocurrencies on social media. Effective October 8, the FCA will bar incentives tied to crypto investments, including referral bonuses, and will enforce a 24-hour waiting period between the viewing of a social media message and an initial investment for first-time buyers. The FCA has additionally entered a partnership with the U.K.'s advertising regulator to educate consumers on investment risks and the rules investment companies must follow. —John Adams

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Swift finishes international real-time payment test

Swift and a group of banks have successfully piloted instant payments between different countries and currencies. The banks include BBVA, Caixa and Santander in Spain, National Australia Bank, Lloyds and Itau Unibanco in Brazil. The project integrated Spain's instant processing network with Swift's GPI, which creates a central source to initiate and track digital payments. The test comes as real-time settlement projects accelerate globally, creating a necessity to fast-track projects that enable interoperability for real-time payments in different currencies. —John Adams

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Standard Chartered, tech accelerator recruit UAE women entrepreneurs

Standard Chartered and the DIFC Innovation hub have launched a new installment of Women in Tech, an accelerator program in the United Arab Emirates that aims to increase participation from women in the UAE's technology sector. The program is taking applications through the end of July, and will then pick 10 startups to participate in a program that includes training, mentorships and access to development space. Three winners will be chosen in October following a Demo Day, and will receive $100,000 in seed funding. In four previous Women in Tech Programs, Standard Chartered chose more than 20 startups, which have collectively raised more than $5 million. Part of the funding is meant for the startups to use to expand outside of the UAE. —John Adams

Mastercard plugs into UAE travel

Mastercard has partnered with Nirvana Travel and Tourism, a United Arab Emirates-based company, to extend the card network's reach in the region. Travelers who book in the UAE, Saudi Arabia, Egypt and Jordan can use Nirvana's platform, which will be integrated with Mastercard, to schedule and pay for flights, hotels and travel-adjacent services. There will also be an expense management feature for corporate clients. Nirvana has more than 70 locations globally and provides travel services for most UAE government agencies, counting Emirates and Etihad airlines among its clients. Travel volume has surpassed pre-pandemic levels in most of the world, drawing attention from financial institutions as a way to extend payment relationships. —John Adams

Flywire, WeChat partner for tuition payments

Payment fintech Flywire and WeChat Pay are collaborating on education payments as China reopens following the pandemic. By adding Flywire, WeChat Pay could help Chinese students avoid the complex process required when making tuition payments at universities outside of China. The Flywire integration will also enable Chinese students to pay tuition and other education expenses in their own currency. Flywire cited internal research that found 66% of Chinese students are motivated to study outside of China, as well as a CNBC report stating outbound travel from China has reached 66% of 2019 levels, which is behind most other countries but still far higher than the past three years. "This partnership ensures that for Chinese students studying internationally at institutions that use Flywire, we essentially become their 'pay' button by offering localized and seamless payment capabilities, which benefit students, families and institutions alike," said Mohit Kansal, senior vice president of global payments and payer services at Flywire, in a release. —John Adams

Tourists visiting France from India may soon pay in rupees via UPI

Tourists from India visiting France will soon be able to make payments at French tourism sites in their local currency using India's QR code-based mobile payment approach, Unified Payments Interface (UPI), Skift reports. Through a collaboration between India and France, India's UPI-based digital payments will go live in France before the end of this year at certain tourist attractions including the Eiffel Tower. India already has similar agreements in place with the UAE, Bhutan and Nepal, where local merchants support UPI. —Kate Fitzgerald

National Australia Bank plans to block ‘high risk’ crypto transactions

Melbourne, Australia-based National Australia Bank said it is restricting payments to cryptocurrency exchanges it deems "high risk" following a surge of crypto-related scams that began in March, according to a press release. NAB, one of Australia's four largest banks, didn't list specific crypto exchanges involved in any scams. The bank said it has intervened in transactions that amounted to about $180 million (U.S.) worth of customer payments that raised red flags about possible scams in the last five months. New controls the bank said it's introduced to block scams include blocking the use of links in texts from unfamiliar senders, among other actions. —Kate Fitzgerald