Global news roundup

March 23, 2022 11:29 AM

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In global news this week, Apple may bring its card to the U.K. but faces backlash in the Netherlands; Japan's JCB is launching a travel card in India; banks drop from the European Payments Initiative; and more.

Here's what's happening around the world.

Bloomberg

Apple reportedly buys data tech firm Credit Kudos...

Apple this week closed on a $150 million acquisition of Credit Kudos, according to TheBlockCrypto and several other technology news sites.The U.K.-based Credit Kudos uses broader data sourcing on consumers' credit and payment histories to inform decisions on lending, technology that could enable Apple Card to reach a wider audience. Apple Card, a partnership between Apple and Goldman Sachs, is a key part of the technology company's financial services strategy, using enrolled credentials for Apple's digital wallet to expedite card issuance and cross-selling financial and non-financial services. Apple did not return a request for comment by deadline, though Credit Kudos' website's terms of use directs to an Apple page. —John Adams

Bloomberg

...but faces backlash in the Netherlands over payment policies

The Authority for Consumers and Markets in the Netherlands has penalized Apple a total of about $50 million spread over nine fines since January, citing claims that the technology company is violating antitrust laws. The regulators' order requires Apple to allow local apps to use third party payment options rather than lock them to Apple's in-app payment system. Apple, which has claimed it is in compliance, this week issued a new proposal for payment processing, which the regulator is considering, according to TechCrunch. Apple has been in similar disputes globally, normally involving Apple's requirement that developers use Apple's internal payment rail, often for a fee of up to 30%. —John Adams

Bloomberg

Banks bail on potential European rival to Visa, Mastercard

Almost two dozen participants in the European Payments Initiative — or about two-thirds of the partners driving the project — have left, reports Finextra. The departures include Spanish banks and Germany's Commerzbank, among others, and follow earlier concerns from banks about the cost of the project. EPI did not return a request for comment. In a statement on its website, EPI said the remaining 13 shareholders "remain convinced of the strategic value of a unified payment solution ready for commerce leveraging especially instant payments and want to go ahead." The EPI project launched in 2020, partly out of calls from government officials to reduce Europe's dependence on non-European payment companies. —John Adams

U.K. warns Barclays, Lloyds on open banking violations

The Competition and Markets Authority has issued letters to Barclays and Lloyds, saying the financial institutions have not properly shared data under open banking regulations, or rules passed in 2017 that require banks to share information with third parties such as fintech apps. The CMA alleges Barclays published inaccurate information 13 times, including overstating ATM availability and posting incorrect debit interest rates, with some mistakes lasting more than a year. Lloyds violated open banking rules 10 times, mostly by publishing inaccurate information, according to the CMA. The banks' responses to the letters addressed staff training and improved controls. —John Adams

Servus Credit Union launches programs for Ukrainian aid

Servus Credit Union in Edmonton, Alberta, is building upon its $50,000 donation to the Canada-Ukraine Foundation last month by offering tailored services for incoming refugees who open an account with the institution and reside in Alberta. Initiatives offered to new Ukrainian members include a checking account that waives fees for two years, a fixed-rate personal loan and a credit card that waives the first six months of minimum payments. The credit union established a committee to work with its existing Ukrainian Community Council and better understand how Servus could provide financial aid. —Frank Gargano

Japan’s JCB launches global travel rewards card in India

JCB International has teamed with the National Payments Corporation of India to launch India’s first cobranded travel rewards credit card leveraging the Tokyo-based international credit card network. The RuPay JCB Yatra SBI Card targets Indian travelers and rewards users with points for all dining, grocery, entertainment and travel purchases. The card, issued by State Bank of India, also operates on India’s domestic card network, RuPay. Users may access the JCB Plaza Lounges located in travel hubs around the world, and points are redeemable for travel vouchers through booking site Yatra.com. —Kate Fitzgerald

Bank for International Settlements urges CBDC collaboration

BIS and a group of central banks hope to address the challenge of interoperability for the dozens of central bank digital currency projects, which will need to conduct transactions across borders. The Reserve Bank of Australia, the Monetary Authority of Singapore and the South African Reserve Bank have completed prototypes for a single platform that would enable international settlements using multiple CBDCs. The BIS' Singapore innovation hub is looking for ways central banks can exchange digital currencies without requiring intermediaries, which increases processing time and cost. Using blockchain technology from Corda and Partior, the project is attempting to determine issues such as what parties should be allowed to hold CBDCs, how the flow of transactions can be simplified while maintaining compliance and how governments can comfortably share infrastructure. —John Adams

Thailand bans use of cryptocurrencies for payment

Thailand will bar the use of cryptocurrencies as a means of payments for goods and services, saying the wider use of digital assets threatens the nation’s financial system and economy. Business operators — including crypto exchanges — must not provide such payment services, and are barred from acting in a manner that promotes the use of digital assets to pay for goods or services, the Securities and Exchange Commission said in a statement on Wednesday. However, the new regulation won’t affect trading or investments in digital assets, the agency said. Thailand’s crackdown on digital assets comes as individuals boost their crypto trading in search of better returns amid the country’s economic slowdown. —Suttinee Yuvejwattana and Thomas Kutty Abraham, Bloomberg News