Latest global banking news

In global news this week, Spanish banks test a CBDC, RBC offers buy now/pay later in Canada, and Microsoft expands its relationship with a British fintech.

Here's what's happening around the world.

Spanish banks plan digital euro pilot

A group of about 30 banks plan to test a proof-of-concept to measure the potential impact of a digital euro. The banks are working with technology companies Bizum, Iberpay and Redsys to see how a digital currency backed by the European Central Bank will interact with existing payment systems. The proof-of-concept should be completed by the end of 2022 with the testing completed during 2023. The use cases will include remittances in digital euros, e-commerce transactions and other digital currency payments. The European Union is among dozens of jurisdictions that are planning or testing central bank digital currencies.

JPMorgan Chase plans payments lab in Greece

JPMorgan Chase says it will open a new office in Athens that will include a Payments Innovation Lab. The facility will hire a local research and development team that will work with Onyx, a unit at the bank that develops use cases for blockchain and other emerging technology. Chase is in the process of securing real estate for the new Greek office. Chase's Athens operations will also develop products for corporate and investment banking, as well as its asset and wealth management units. Chase is similarly developing new payment technology in Canada, in anticipation of deployment in other markets.

Ripple backs mobile money initiative in Africa

Blockchain firm Ripple has partnered with MFS Africa, a fintech that operates a mobile money product in Africa, to bolster real-time payment processing in about three dozen countries. Ripple is contributing its On Demand Liquidity technology, which provides instant settlement, to remove friction from mobile money apps. Mobile money, which uses phone accounts to perform payments and other financial services, has played a major role in finance inclusion in Africa over the years. That's created a base that is attracting fintechs from outside of Africa to invest in the local payments industry. That includes other blockchain companies such as AZA.

London's Paysafe expands work with Microsoft

London payment technology firm Paysafe is adding new services to its partnership with Microsoft. These additions include paysafecard as a payment option on Micrsoft.com and Xbox.com in eight European countries and the U.S. Microsoft and Paysafe have collaborated on payment projects in more than 30 countries, including financial services for underserved consumers and people who do not want to share credit card information online. The Microsoft/Paysafe combo allows cash purchases on Microsoft and related properties and can also be used on the Xbox game console.

RBC jumps into buy now/pay later lending

Royal Bank of Canada is using technology from Visa to offer its cardholders buy now/pay later loans, furthering the trend of banks expanding BNPL lending as fintechs face regulatory scrutiny and earnings problems. RBC's consumers can convert a purchase that qualifies for the BNPL option into smaller payments over a set period of time at participating merchants. Sensing a growing demand for BNPL from regulated banks, Visa has been expanding its own support for the product. Mastercard has also introduced a similar service.

Nets adds tap to pay for Danish trains

Payment technology firm Nets is working with DSB, the largest Dutch train operator, to deploy "softPOS," or tap to pay, technology for fare payments. The technology allows a NFC-capable smartphone to act as a payment terminal without a dongle or other hardware attachment. The train system is planning to replace the five different options conductors use to collect payments, including a dongle, Bluetooth reader, personal digital assistant, dedicated point of sale terminal and printer, with the single Android-based system. Both Android and Apple have introduced tap-to-pay capabilities, which merchants can use as an alternative to mobile point of sale systems. Once the technology matures, it could reduce reliance on traditional point-of-sale terminals.

New Zealand advances open banking

New Zealand financial regulators have asked banks to share data with other companies under the country's open banking initiative, which is designed to allow consumers to access multiple financial services through a single connection. The project will take about two years to complete, according to Reuters. The government envisions uses such as shopping for better mortgage rates, or a consumer asking their bank to share data with a third party such as a financial advisor. The PSD2 standards provide an open banking framework in Europe, and have helped advance open banking in other countries, such as the U.S., which like New Zealand is also building an open banking regulatory framework.

Barclays offers cash for 'green' U.K. homes

Citing the cost-of-living crisis in the U.K., Barclays is offering £2,000, or about $2,400, to mortgage borrowers as an incentive to adopt energy-efficient households. The cash is disbursed up-front for a set of home improvements, such as solar panels, home insulation, efficient heat pumps and other energy-saving upgrades. The bank is testing the initiative, though it plans a wider rollout in coming months. It's positioning the incentives as a way to offset the higher cost of the upgrades, which the bank believes is making some homeowners reluctant to make investments in improving household energy usage.

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