The state of CBDCs outside of the US; UK pressures Apple

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While U.S. politics have turned sharply away from central bank digital currencies, projects are inching along elsewhere, though no major country besides China is close to launch. (The Bahamas, Jamaica and Nigeria each have one and China has been piloting a digital yuan.)

The European Central Bank released its third progress report on a potential digital euro, noting more than 70 organizations have tested features such as conditional payments and use cases for integrating a digital euro into the mainstream payment system.

The ECB, which launched its CBDC project in late 2023, has also worked with small businesses and consumers in underrepresented regions through focus groups, interviews and meetings with consumer groups. The EU has not decided to issue a CBDC, with the current tests informing a final report that will be submitted to regulators and legislators during the third quarter.

Governments use distributed ledgers, the technology underpinning cryptocurrencies, to power CBDCs. By creating a digital version of their currency, central banks can theoretically extend access to financial services to more users while improving transaction processing. Active CBDCs thus far have been largely limited to smaller countries with less mature financial systems. China is the largest country to have a CBDC, though less than 20% of the population have used it, according to the Foreign Policy Research Institute.

The ECB's work on a possible CBDC takes place as progress on a digital dollar in the U.S. has stalled as the package of crypto-associated legislation includes a ban on CBDCs. Opposition to a U.S. CBDC has grown out of bank concerns that a digital dollar would drain deposits, along with far-right claims that a CBDC would be used for surveillance. The ECB referenced political uncertainty as a reason to continue work on a CBDC. 

"In light of today's geopolitical and economic challenges, we welcome an ambitious pace for the legislative work," said Piero Cipollone, an ECB executive board member who chairs the High-Level Task Force on a digital euro.

Elsewhere, the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre recently chose a group of banks and other companies for a joint initiative to test digital payments, tokenized deposits and CBDCs. Progress is less certain in the U.K., where the Bank of England may shelve the country's digital pound project if it determines enough progress on payment technology and financial inclusion are coming from the private sector, according to Bloomberg. And South Korea in June halted its CBDC project as stablecoin regulations advance.

"The swift ascent of stablecoins, which have reached over $260 billion in market cap, may be viewed by some as undercutting the traditional case for retail CBDCs. There are limited, clear market needs that a retail CBDC would solve in a system where digital payments are already becoming widespread, fast, and efficient," Mark Aruliah, head of EMEA policy and regulatory affairs at Elliptic, said in a research note.  —John Adams 

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UK's competition regulator targets Apple over mobile wallets

The United Kingdom's Competition and Markets Authority is proposing a new designation for Apple that will enable it to regulate Apple's third-party restrictions on mobile wallet development. 

The CMA is proposing to designate Apple with "strategic market status" that will allow it to regulate the company to increase competition and promote U.K.-based fintech innovation. The designation would also allow it to direct other areas of Apple's marketplace, such as interoperability, developer access to "key Apple functionality" and rules in the app store. 

The proposal follows a January 2025 investigation into Apple and Google that was designed to assess impact on people who use mobile devices and the businesses developing services or content for these devices. Apple and Google hold a duopoly in the U.K., with more than 90% of U.K. mobile devices running on Apple or Google's mobile platform, according to the CMA. 

Apple's regulatory woes have already opened up opportunities for payment rivals to get their foot in the door of Apple's platform. The tech giant in July 2024 agreed to open up its near-field communication technology to outside developers. 

The CMA is accepting comments from stakeholders. A final decision on both SMS designations will be made by October 22 2025. —Joey Pizzolato

Orum

Stripe acquires payment tech firm Orum

Stripe will gain real-time processing technology by acquiring Orum, a firm that enables businesses to access RTP, FedNow, same-day ACH, Visa direct and other methods.Terms of the deal were not disclosed. 

Fintech veteran Stephany Kirkpatrick founded Orum in 2019 after working as a financial planner and at LearnVest, a financial planning company.

Orum uses an application programming interface to make it easier for underserved businesses to connect to digital payment systems. Orum has raised about $82 million from Accel, Canapi, Bain Capital Ventures and American Express Ventures.

Stripe is in the midst of a series of product deployments, covering areas such as artificial intelligence, faster payments and blockchain. "After thoughtful consideration, it became clear that we have a rare opportunity to accelerate Orum's mission and greatly increase our impact by becoming part of Stripe, which processed more than $1.4 trillion in total payment volume in 2024 — the equivalent of 1.3% of global GDP," Kirkpatrick said on Orum's site. —John Adams 

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Australia pushes to reduce payment surcharges

The Reserve Bank of Australia has proposed eliminating surcharging for electronic funds transfers at point of sale (eftpos), Visa and Mastercard payments, saying a reduction would be in the public interest.

Surcharging, which normally involves a fee for using a credit card, has expanded in recent years. The RBA contends this increase has corresponded with the growth in digital payments and less cash usage, noting Australian consumers pay about $1.4 billion in surcharges each year.

The RBA is also proposing lowering the cap on interchange fees, which it estimates would save businesses about $1.4 billion each year. In another move, the RBA is pushing for regulations that would require card networks and merchant acquirers to publish payment fees.

The RBA will connect public input until August 26 and issue a formal recommendation by the end of the year.

Visa and Mastercard have battled with merchants over card fees for years through a series of legal disputes. The U.K. Competition Appeal Tribunal recently said card fees violate European competition rules as part of a broader class action U.K. suit. Visa and Mastercard are also involved in a similar U.S. legal case over card fees, with a court hearing likely in early 2026.  —John Adams 

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Brazil's national payment scheme reaches shoppers in the U.S.

Brazilian fintech PagBrazil has partnered with Verifone to support Pix payments for Brazilian shoppers in the U.S.

These consumers will be able to pay in Brazilian currency with a real-time conversion, a similar model to Alipay's international merchant network that enables Chinese consumers to pay in their own currency while outside China.

Verifone recently signed a deal with PagBrasil to gain exclusive rights to offer PagBrasil's international Pix payments in the U.S. via Verifone's application programming interface, which connects to the payment company's point of sale products. 

Pix is Brazil's national real-time processing rail, which has become Brazil's primary payment method in the five years since its launch. 

"This is a game-changer for U.S. merchants in high-tourism markets like Florida and New York," said Madhu Vasu, senior vice president of global product management at Verfione, in a release. —John Adams  

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Airwallex secures payment license in Israel

Global payments company Airwallex has secured a payment service license in Israel as the fintech looks to expand in the EMEA region. 

The license will allow Airwallex to court businesses in Israel and offer multicurrency accounts to collect, hold and pay out in Israeli shekels, make cross-border payments, issue virtual and physical cards and use its embedded finance services.  

"This license lays a strong regulatory foundation for our continued expansion across the Middle East and Europe," said Or Liban, Airwallex's vice president of Middle East and EU Enterprise. "Israel's dynamic and globally connected business environment aligns perfectly with our mission to empower businesses to operate without borders." —Joey Pizzolato

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Coinbase rebrands wallet app in a play to create super app

Coinbase is looking to enter into the super app race with a rebrand of its mobile wallet app that will incorporate payments, social, chat, trading and support for mini apps, the company said. 

The Coinbase Wallet app has been renamed Base App, and runs on Coinbase's public blockchain, Base, which is built on the ethereum blockchain. Payments on the Base App are made using Circle's USDC. 

The announcement came at Coinbase's "New Day One" event, and was predicated on attracting new users outside of those interested in trading cryptocurrency on Coinbase's exchange. 

"We believe the next chapter of the internet won't come from big platforms. It'll come from creators. That's why we rebuilt the Base app from the ground up, not just as a wallet, but as a new kind of open social network," Coinbase said in a blog post. 

Super apps are an ideal platform for companies because they increase user retention by providing a one-stop shop for all users' needs. Super apps are especially popular in China, where market conditions have created fertile ground for their development. In other regions, including the U.S., super apps have struggled to take off, largely because of disparate peer-to-peer payments systems, competing social media platforms and a slew of messaging apps. 

Coinbase has been aggressively trying to expand its product offering to attract more diverse users. The crypto company has been urging U.S. regulators to lift barriers on crypto banking services and has teamed up with American Express to offer a credit card with crypto rewards and with PNC for its crypto-as-a-service that will allow PNC customers to buy, hold and sell cryptocurrencies directly through the bank. —Joey Pizzolato

Drew Angerer/Photographer: Drew Angerer/Getty

Block joins S&P 500, replacing Hess

Block joined the S&P 500 on Wednesday, replacing Hess Corporation, an energy company known for its toy trucks that was acquired by Chevron last week. 

Block called its addition to the highly coveted index a "milestone that reflects the strength of our business and the work of thousands of people building tools to increase access to the economy," according to a company release.

KBW said in a research note to analysts that while the addition should yield a short-term boost for Block, it continues to recommend the fintech because of its potential for gross profit acceleration in the second half of the year. —Joey Pizzolato