Wednesday , June 12, 2024

CFPB Notes Payment App Insurance Lacking And Other Digital Transactions News briefs from 6/2/23

  • The payments industry is beginning to react to a report this week from the Consumer Financial Protection Bureau alerting consumers to the lack of federal deposit insurance for funds held in nonbank payment apps. The CFPB’s report appears to be a cautionary note rather than a call for regulation, at least for now. “The CFPB and the industry share a goal of educating consumers to help them use the best financial products and tools to achieve their goals,” Scott Talbott, executive vice president at the Electronic Transactions Association, tells Digital Transactions News. “It is important for consumers to understand the terms of their financial products, including deposit insurance.”
  • J.D. Power, a market research firm, released a report on Paze, the upcoming digital wallet formed by seven big banks, that suggests the banks are not willing to “cede victory to fintechs” and that digital payments are part of the marketplace now.
  • ATM maker Diebold Nixdorf Inc. filed for a Chapter 11 bankruptcy reorganization to reduce its debt. It is asking for a $1.25 billion debtor-in-possession loan credit facility.
  • Payway, an integrated payment processor, said it will support Apple Pay Merchant Tokens, a new feature that enables apps and Web sites to securely complete automatic or recurring payments independent of an Apple device.
  • Payments platform PayNearMe closed on a $45-million Series D funding round led by Queensland Investment Corp.
  • Open-banking network Akoya said it is working with data aggregator Axway to provide an applicaton programming interface intended to ease connections between financial institutions and fintech apps. Both companies have standardized their APIs to the Financial Data Exchange standard.
  • Affirm Inc. has agreed to support buy now, pay later capability for customers of Sharrow Marine, a supplier of propulsion technology for the maritime and aeronautical industries.
  • Global spending on 3D Secure technology for credit and debit card transactions will rise to $1.26 billion this year from $1.12 billion in 2022, a 12.5% increase. 3D Secure refers to an additional layer of user verification in card transactions.

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