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- The U.S. Supreme Court early Thursday upheld the constitutionality of the Consumer Financial Protection Bureau by a 7-2 vote, reversing an October 2022 ruling by a federal appeals court in New Orleans that had held the means by which the bureau is funded violates the U.S. Constitution. The CFPB, created in 2008, receives its funding directly from the Federal Reserve rather than from a budget process controlled by Congress. “Looking at the big picture, the Supreme Court’s decision is a win for the Bureau and may eliminate some future court challenges to rules,” says Ben Jackson, chief operating officer at the Innovative Payments Association. “But it may raise the stakes of the next election for the CFPB, because a change in the control of Congress could lead to a legislative effort to restructure the CFPB in the next Congress.” In a statement, the CFPB lauded the ruling, saying “The Court repudiated the arguments of the payday loan lobby and made it clear the CFPB is here to stay” adding that its funding structure is neither “novel or unusual.”
- VGS, also known as Very Good Security, said its token vault now holds more than 3 billion tokens. Fintechs, banks, and merchants use VGS tokens to mask sensitive payments data.
- Mastercard Inc. announced an integration with Salesforce to help reduce costs arising from chargebacks and other transaction disputes.
- High interest rates haven’t dented consumers’ appetite for credit, as consumers held more than 543 million bank cards as of the first quarter, or 20 million more than a year ago and up 88 million from three years ago, according to the latest Quarterly Credit Industry Insights Report from TransUnion, a credit-reporting bureau.
- Sezzle Inc. has started offering buy now, pay later service at the point of sale through an integration with Celerant Technology, a developer of retail software.
- Conduent Transportation, a provider of fare-payment technology for mass transit, launched a pilot program with the Southeastern Pennsylvania Transportation Authority at a transit station in Philadelphia to detect and stop incidents of fare evasion. Such incidents are said to cost SEPTA $30 million to $40 million annually.
- Processor Fiserv Inc. launched Fiserv University, a training and consulting platform for bank personnel.
- AppTech Payments Corp. announced the commercial launch of its banking-as-a-service platform, following a pilot program. The first product is InstaCash, which uses the platform for virtual accounts, credit and debit cards, and interest-bearing financial products.
- Shell USA Inc. launched an automated clearing house payment method called Shell S Pay to pay for fuel with its Shell mobile app. Users enroll in the app with their names and addresses and approve a third-party link to a banking account using Plaid Inc. Transactions are processed via Buy It Mobility Networks Inc., a pay by bank provider. Consumers paying with Shell S Pay receive a 10 cents per gallon discount with some getting as much as a 15-cent discount.
- Payments platform Usio Inc. said its March-quarter volume totaled 9.8 million transactions, up 14% year-over-year, and $1.5 billion, up 19%. Total revenue fell 5%, to $20.3 million, mainly owing to drops in prepaid card services and output solutions. ACH revenue climbed 16%, while credit card revenue was up 3%.
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