As February rolled by, the fintech realm witnessed significant developments that might have flown under your radar. Here’s a roundup of the top 5 payment stories that made waves last month:
- Google Pay Makes Way for Google Wallet in the US: In a strategic move, Google announced the discontinuation of Google Pay in the US, effective June 4th. Instead, users will transition to Google Wallet, retaining the tap-to-pay feature. This shift marks a consolidation of Google’s payment services in the US, following the global rollout of Google Wallet in 2022.
- EU Adopts Instant Payments Rules: The European Council passed new instant payment regulations, enabling swift 10-second transactions in euros for consumers and businesses across EU and EEA countries. This move, agreed upon by the Council and European Parliament last year, signifies a significant step towards fostering seamless payment experiences within the European market.
- Capital One’s Bold Bid for Discover: Capital One made headlines with its staggering $35 billion bid to acquire Discover Financial Services, signaling a potential shake-up in the card industry. The proposed merger aims to bolster the competitive stance of both platforms, positioning them to rival established payments giants such as Mastercard and Visa. However, the deal faces scrutiny from lawmakers, including Elizabeth Warren, raising concerns about its impact on financial stability.
- American Express Introduces ‘Plan It’ BNPL Offering: American Express launched its innovative ‘Plan It’ feature in the UK market, allowing credit cardholders to convert purchases into instalment plans in a buy now, pay later (BNPL) fashion. This flexible payment option enables users to spread payments over 3, 6, or 12 months without incurring interest, albeit with a fixed monthly fee. The introduction of ‘Plan It’ underscores American Express’s commitment to catering to evolving consumer preferences and enhancing payment flexibility.
- TCS Emerges as Potential Operator for UK’s Faster Payments: Tata Consultancy Services (TCS) emerged as a frontrunner to take over the operation of the UK’s Faster Payments Service, as part of the country’s New Payments Architecture initiative. The transition, overseen by Pay.UK, aims to streamline payment processes by replacing the existing infrastructure with a centralized system for clearing and settlement. Currently operated by Vocalink, owned by Mastercard, the potential handover to TCS heralds a new era in the UK’s payment ecosystem.
As fintech continues to evolve at a rapid pace, staying abreast of such developments remains crucial for industry stakeholders and consumers alike. Keep an eye on these transformative trends shaping the future of payments in the months ahead.