Latest global payments news

UAE to launch a central bank digital currency this year

The central bank of the United Arab Emirates plans to launch a central bank digital currency this year and build a domestic card payments network, as the nation works to become a hub of digital financial development. Plans call for developing a CBDC for domestic and cross-border payments and a domestic instant-payments platform to modernize the country's cash-based economy and expand financial inclusion. Eventually the central bank plans to add cloud-based systems supporting open finance, with an eye toward reaching full integration of the new systems by 2026. —Kate Fitzgerald

Argentina to issue a 2,000-peso bill

Argentina's central bank has announced the issuance of a new 2,000-peso banknote to simplify cash payments as inflation continues to dilute the value of the cash-heavy country's currency, Bitcoin News reports. The new bill, valued at just under US$6, doubles the value of the current highest-value bill, and may provide relief for cash users and ATM operators while the government works to expand use of digital payment rails. The date of the new bill's release has not been announced; its design will showcase scientific and medical advancements in Argentina. —Kate Fitzgerald

Adyen tweaks travel services to lure business clients

The Dutch payment processor Adyen has expanded its partnership with the European mobility platform Free Now to include Visa corporate travel cards. The cards will support public transportation, trains, ferries and other options, covering employer transit benefits. Employees can use the cards for longer trips, including international travel. Adyen is also adding card controls and other tools that provide corporate clients with more insight into employee spending and general trends that can affect budgeting. Adyen recently added tools designed to expand merchant services, including accounts that enable users to store and access funds. Another product, Capital, uses an application programming interface to power credit for small businesses, a move to compete with Square, Stripe, PayPal and other fintechs in Europe and North America. —John Adams

Standard Chartered Bank deploys cross-border real-time payments

Standard Chartered Bank has partnered with Singapore-based fintech Allinpay to support instant cross-border payments into and outside of Hong Hong. Merchants in Hong Kong will be able to accept transactions involving banks that use PayNow, which supports instant payments in Singapore. Merchants in Hong Kong that sign up for the service will not have to upgrade their systems or pay currency exchange rates or cross-border fees. Standard Chartered plans to extend the technology to other markets. As real-time payment networks advance in multiple countries, banks are starting initiatives to allow international transactions to work with different real-time networks. —John Adams

HSBC develops small-business digital payment package

Also in Hong Kong, HSBC has introduced a set of merchant services for small and midsize businesses in the city. The HSBC Merchant Box is designed for local merchants that sell both in stores inside Hong Kong and internationally via e-commerce. The bank is hoping to capitalize on the reopening of China's economy from COVID lockdown, which it anticipates will result in more travel between Hong Kong and mainland China or other markets. Merchants that access the Merchant Box can accept Australian dollars, Canadian dollars, U.S. dollars, euros, British pounds and Singapore dollars with real-time exchange rates. —John Adams

PayU speeds crypto purchases in South Africa

The South African company Luno — which sells cryptocurrency through an app — has partnered with the Netherlands-based payments firm PayU to enable direct crypto purchases in the rand currency. Consumers previously had to deposit rands into their Luno wallets and wait for a period of time before purchasing crypto. The PayU partnership allows users to pay with bank cards. Consumers can load two cards for instant crypto-purchase options. By eliminating the waiting period, PayU and Luno hope to avoid crypto's volatility, thus bringing more people into the crypto market. The quick purchases and links to payment cards could increase the use of crypto for payments at merchants, though in most cases a conversion back to traditional currency would still be required. —John Adams

Argentina-based Ualá launches credit cards in Mexico

Argentina's Ualá, a fintech company backed by George Soros, Steve Cohen and Tencent Holdings, will begin offering credit cards in Mexico through its alliance with ABC Capital. Since the card is issued through the alliance with Mexican bank ABC, it will allow users to build a credit history that is recognized by the country's credit bureau, something that's not possible through cards issued by fintech firms that don't have a banking license, according to Pierpaolo Barbieri, Ualá's chief executive. Ualá announced the purchase of ABC in November 2021. The acquisition is still pending regulatory approval. —Carolina Millan, Bloomberg News

U.K. fintech investment plummeted by almost 60% in 2022, KPMG says

The U.K.'s fintech sector saw investment drop $22 billion, to $17 billion, in 2022, as higher interest rates, inflation, and declines in valuations hit investor appetite. A total of 593 U.K. fintech deals were completed in the U.K. in 2022, down from 724 in 2021, according to KPMG's Pulse of Fintech report published Wednesday. The dataset includes mergers and acquisitions, private equity, and venture capital. Funding for the sector in 2022 was a tale of two halves according to Karim Haji, a partner at accountancy firm KPMG. The first half of the year saw significantly more investment and deals than the second half. "The variance highlights the shift in investor sentiment in the face of increasing geopolitical challenges leading to the lack of IPO exits, the downward pressure on valuations, and market turbulence," he said. —Aisha S Gani, Bloomberg News

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