Key developments of interest over the last month include: the UK Chancellor of the Exchequer makes her first Mansion House speech and HM Treasury publishes the National Payments Vision, indicating a focus on economic growth and the streamlining of regulation; the Bank of Italy has published a paper on PSD2 revisions and the interaction with MiCA; and the Monetary Authority of Singapore has published reports on tokenisation as part of Project Guardian, a collaborative international tokenisation initiative.
In this Newsletter:
- Regulatory Developments: Payments
- Regulatory Developments: Digital Assets
- Market Developments
- Surveys and Reports
For previous editions of the Payments Newsletters, please visit our Financial Services practice page.
Payments Conference 2024: On Wednesday 20 November, we welcomed professionals from banks, payments firms, FinTechs, regulators, and policymakers to our Payments Conference 2024. The discussions were insightful, covering the challenges and opportunities shaping the payments, data, and technology landscape. Key takeaways include the evolution of instant payments, CBDCs and other digital currencies, AI, and financial inclusion—common themes driving change across jurisdictions. A critical focus was the dual challenge of fostering innovation and competition while protecting consumers, especially in the fight against fraud. We also explored the growing importance of data sharing, AI's potential in fraud prevention, and the promise of super apps and digital identity in empowering users. Keep an eye out for video recordings and session summaries, which will be available shortly under ‘Our thinking’ on hoganlovells.com and LinkedIn.
Implementation of the Markets in Crypto-assets Regulation (MiCA): A Jurisdictional Comparison: With MiCA becoming fully applicable by the end of this year, crypto-asset service providers seeking to offer their services across the EU now need to consider which jurisdiction is most suitable for them to file their CASP authorisation applications and the extent to which they can avail of national transition regimes. With this in mind, our global Digital Assets and Blockchain (DAB) team has put together a comparative guide across France, Italy, Ireland, Germany, the Netherlands, and Spain.
Chapter 1: Regulatory Developments: Payments
United Kingdom: Mansion House speech and National Payments Vision published
On 14 November 2024 the Chancellor of the Exchequer, Rachel Reeves, delivered her first Mansion House speech. Reeves underscored the significance of the financial services sector, noting it accounts for 9% of the UK’s economic output. However, she stated that the UK has been regulating for risk, not growth, resulting in regulatory congestion. Therefore, whilst maintaining consumer protections, the government’s reforms will now seek to drive growth and streamline regulation. Key actions include the FCA’s Handbook Review which is currently taking place and the Financial Ombudsman Service and the FCA working on an agreement with clearer expectations regarding cooperation.
Additionally, the Chancellor announced plans to publish a Financial Services Growth and Competitiveness Strategy focusing on five priority areas: fintech, sustainable finance, asset management, insurance, and capital markets. This strategy aims to remove barriers to growth while ensuring that investments are directed toward high-potential sectors.
Alongside the speech, HM Treasury published the National Payments Vision. This outlines the government’s ambitions for the UK’s payments sector. The publication notes that recent years have seen huge changes in how we pay. In light of further technological developments, the government now needs to develop a suitable payments ecosystem that is grounded in three key pillars: innovation, competition and security.
Key action points include:
- Easing regulatory congestion. For example, the FCA will lead work on managing existing overlaps between itself and the PSR.
- Developing the regulatory sphere for Open Banking.This involves transitioning from current arrangements to the FCA acting as the UK’s Open Banking regulator in the future.
- Further exploration of a Central Bank Digital Currency, although no decision on whether to launch one has yet been taken.
To deliver this vision, the Payments Vision Delivery Committee is being established. This will be supported by an engagement group comprised of various representatives from both the public and private sector.
For our thoughts on what the UK Mansion House speech and the National Payments Vision mean for digital assets and tokenization, take a look at this article.
United Kingdom: Data (Use and Access) Bill introduced to Parliament
Having been introduced in October, the Data (Use and Access) Billhad its second reading in the House of Lords on 19 November 2024. The Bill allows broader use of and access to customer and business data which, according to the government, will boost the economy by £10 billion.
The Bill will allow the development of “smart data” schemes that allow customers and businesses to securely share information with third parties to continue the open banking scheme and extend its benefits in an open finance scheme.
Italy: Bank of Italy publishes paper on PSD2 revisions and interaction with MiCA
On 29 October 2024, the Bank of Italy published a paper addressing revisions to PSD2 and its interaction with the Markets in Crypto-Assets Regulation (MiCA).
The paper highlights, among other things, the challenges associated with applying PSD2 to payment transactions involving electronic money tokens (EMTs). It proposes modifications to the scope of the PSD2 review process, drawing from the proposals for a new directive (PSD3) and Payment Services Regulation put forward by the European Commission on 28 June 2023. Additionally, it explores various policy options available to EU legislators for expanding PSD3/PSR to include new entities, such as technical service providers and emerging services like cash-in-shop transactions.
It also underscores the necessity for coordination between the PSD2 review and other EU regulations, particularly in relation to MiCA. The analysis emphasises the importance of differentiating among various types of instruments—such as e-money tokens, asset-referenced tokens, and other crypto-assets—and assessing their suitability for performing different payment functions. The paper advocates for a coordination between the payment services framework and MiCA not only in the context of the PSD2 review, but also in the immediate term with reference to the period in which MiCA will be applicable alongside PSD2.
United Kingdom: Inquiry into acceptance of cash
On 4 November 2024 the House of Commons Treasury Committee announced the launch of an inquiry into the acceptance of cash.
The call for evidence states that the inquiry will focus on whether there is a need to regulate or mandate the acceptance of physical cash (notes and coins). The inquiry will not examine wider questions of access to cash or tax implications of maintaining physical cash as a form of payment.
The call for evidence welcomes evidence on a variety of related topics including:
- Current trends and forecasts on the future state of cash acceptance in the UK.
- Groups in society that disproportionately rely on businesses and public services accepting cash.
- Whether there are parts of the economy that should always accept cash and how a requirement for cash acceptance affects financial services firms.
Evidence can be submitted until 2 December 2024.
United Kingdom: PSR feedback from industry on impact of card-acquiring remedies
On 21 October 2024, the Payment Systems Regulator (PSR) announced that it is seeking feedback from businesses on its card-acquiring remedies, which came into force in 2023. The PSR is looking in particular at:
- whether businesses found it easy to locate the online quotation tool (OQT) and the summary box under Specific Direction 14, and how accurate they found the OQT and summary box when compared to the actual prices they paid for their acquiring services;
- whether businesses have seen the trigger messages provided under Specific Direction 15 and if they have ever acted on them;
- whether businesses have had any issues with hiring, or terminating the hire of, point-of-sale (POS) terminals since the 18-month contract limit set out in Specific Direction 16 was imposed.
The PSR will continue to monitor compliance in this area and is planning to run engagement sessions with industry in the next few months. Feedback gathered will help inform the PSR's remedies progress report, which it plans to publish in 2025
Global: BIS research into cross-border transaction protocol embedding regulatory compliance
On 28 October 2024, the Bank for International Settlements (BS) and its central bank partners announced that they have successfully demonstrated with Project Mandala that jurisdiction-specific policy and regulatory requirements can be embedded into unified cross-border transaction protocols.
The differing regulatory frameworks across jurisdictions create significant challenges for efficient cross-border payments, leading to increased compliance burdens, longer transaction times, and uncertainties for stakeholders. To overcome these issues, Project Mandala developed a decentralised, compliance-by-design system that could help streamline cross-border payments by embedding regulatory compliance. The system uses three essential components: a peer-to-peer messaging system, a rules engine, and a proof engine. The system ensures that all necessary compliance checks have been completed before the payment instruction is initiated.
Whilst this system is envisaged to enable more efficient cross-border transfer of digital assets such as CBDCs and tokenised deposits, it could serve as the foundational compliance layer for all old, new, wholesale and retail payment systems.
Singapore: Protection from Scams Bill introduced to Parliament
On 11 November 2024, the Protection from Scams Bill was introduced to the Parliament of Singapore. This comes after a consultation on the draft Bill was conducted between 30 August 2024 and 30 September 2024, as well as focus group discussions with representatives from various age groups.
The Bill will give the Police powers to issue Restriction Orders (RO) to banks to restrict transactions - including money transfers, ATM withdrawals, credit card transactions, and access to personal loan facilities - of an individual if there is reasonable belief that the individual will transfer money to a scammer. The RO will be in effect for a maximum of 30 days at a time, but this can be extended for an equivalent period for a maximum of five extensions.
The Ministry of Home Affairs noted in a press release that the Bill seeks to address the proliferation of scams in recent years. From 2019 to 2023, the number of scam cases increased almost five times, and approximately $650 million was lost to scams. Despite the Government’s introduction of safeguards and extensive public education efforts, the number of scams remains high, with 86% of reported scams being the result of self-effected transfers.
The Bill comes after the UK’s recent APP fraud reimbursement rules came into effect on 7 October 2024.
United Kingdom: PSR publishes Dear CEO letter to tech firms on APP fraud enabler data
On 8 November 2024, the Payment Systems Regulator (PSR) published a Dear CEO letter to tech firms which explains its proposals to publish data on the firms that are most commonly reported as enabling contact between fraudsters and victims.
In the letter, the PSR explains that in 2024 it required the 14 largest banking groups in the UK to provide data reported by victims on fraud committed in 2023, including the frequency of fraudulent activity reported as being enabled via certain tech firms' platforms or services, as well as through other providers. The PSR plans to publish this data in the week beginning 9 December 2024. It proposes to publish fraud enabler data every year.
The PSR invites firms to meet with it or to comment by email on its plans by 5.00pm on 4 December 2024.
China: Revised anti-money laundering law passed
On 1 November 2024, a revised anti-money laundering (AML) law was passed by the National People’s Congress Standing Committee. The revised law seeks to improve China’s capabilities in monitoring and stopping money laundering activity and terrorist financing, particularly those linked to emerging technologies and currencies, livestreaming platforms and online game currencies.
Changes include:
- expanding the definition of money laundering to include proceeds from any criminal activity;
- extending compliance obligations to non-financial institutions such as real estate firms and law firms; and
- significant increases in fines for AML violations.
The new law will take effect from 1 January 2025.
European Union: ECB announces initiatives to improve cross-border payments by interlinking fast payment systems
On 21 October 2024, the European Central Bank (ECB) announced that it has launched two initiatives to improve cross-border payments by interlinking fast payment systems. Building on the Eurosystem's TARGET Instant Payment Settlement (TIPS) service, the work will include:
- The implementation of a cross-currency settlement service in TIPS (explained further in this document).
- Exploratory work on linking TIPS with other fast payment systems, including developing links with partners outside the EU to improve cross-border payments globally (see this document for further information).
The ECB's work supports the G20 roadmap for enhancing cross-border payments and the Eurosystem's retail payments strategy.
Global: FSB publishes 2024 progress reports on G20 roadmap for enhancing cross-border payments
On 21 October 2024, the Financial Stability Board (FSB) published a consolidated progress report for 2024on actions being progressed as part of the G20 roadmap for enhancing cross-border payments, a progress report on implementing the legal entity identifier (LEI), and an annual progress report on meeting the targets for cross-border payments.
The FSB calls for full implementation of its 2022 recommendations on LEI adoption. Recommendations on addressing frictions arising from requirements for managing payments data and access to becoming a payment services provider are due to be published in December 2024. Depending on the outcome of discussions with stakeholders, actions taken under the roadmap may be further refined and targeted over time to sharpen focus on meeting the targets.
United Kingdom: FCA portfolio letters highlight retail banking supervisory priorities for 2025
On 23 October 2024, the FCA published a series of portfolio letters focusing on its 2025 supervisory priorities for retail banks, building societies, non-bank mortgage lenders (NBMLs) and mortgage third party administrators (MTPAs), and lifetime mortgage providers (LMPs).
Cross-cutting areas of focus for all four sectors are Consumer Duty, operational resilience, financial crime and fraud, and sustainable finance.
For retail banks and building societies, treatment of customers in financial difficulty and access to banking services/payment accounts (both in the context of increased digitalisation and regarding the risk of “de-banking”) are additional focus areas.
More generally, the FCA emphasises that given the combined challenges of, among other things, regulatory change, ongoing compliance, acting to deliver good customer outcomes, and evolving business models and technology, it is very important that firms have effective culture and controls applicable to both financial and non-financial conduct. The FCA plans to engage with firms on their cultures and controls during its work with them in 2025 on the priority areas outlined above.
For more on this development, see our article.
Chapter 2 - Regulatory Developments: Digital Assets
Malta: Markets in Crypto-Assets Act
On 5 November 2024, Malta enacted the Markets in Crypto-Assets Act, 2024 (Act No. XXXVI of 2024) (the Act). This implements relevant provisions of the EU Regulation on markets in cryptoassets ((EU) 2023/1114) (MiCA). The Act regulates the issue of crypto-assets and the authorisation of crypto-asset service providers. In line with MiCA’s timeline, parts of the Act relating to electronic money tokens (EMTs) and asset-referenced tokens (ARTs) are deemed to have come into force on 30 June 2024, with the remainder of the Act coming into force on 30 December 2024.
Alongside the Act, the Markets in Crypto-Assets Act (Fees) Regulations (the MiCA Regulations) have also been published. These set out the fees for various classes of crypto-asset services which are due to the Malta Financial Services Authority (MFSA) in its capacity as the competent authority to regulate activities under MiCA.
European Union: Commission Implementing Regulation on public disclosure of inside information under MiCA published
On 13 November 2024,Commission Implementing Regulation (EU) 2024/2861 (Implementing Regulation) was published in the Official Journal of the European Union. The Regulation lays down implementing technical standards relating to the appropriate public disclosure of inside information and the delaying of public disclosure of that information. It reflects a mandate in Article 88(4) of the Regulation on markets in cryptoassets ((EU) 2023/1114) (MiCA). It will come into force on 3 December 2024.
European Union: European Commission adopts six MiCA Delegated Regulations
On 31 October 2024, the European Commission adopted the following Delegated Regulations to supplement the Regulation on markets in cryptoassets ((EU) 2023/1114) (MiCA):
- Commission Delegated Regulation regarding Regulatory Technical Standards (RTS) specifying the procedure for the approval of a cryptoasset white paper (C(2024)6914). This reflects a mandate in Article 17(8) of MiCA.
- Commission Delegated Regulation regarding RTS specifying the methodology to estimate the number and value of transactions related to uses of asset-referenced tokens and e-money tokens denominated in a currency that is not an official currency of a member state as a means of exchange (C(2024)6910). This reflects a mandate in Article 22(6) of MiCA.
- Commission Delegated Regulation specifying the information to be included by certain financial entities in the notification of intention to provide cryptoasset services (C(2024)6903). This reflects a mandate in Article 60(13) of MiCA.
- Commission Delegated Regulation specifying information to be included in an application for authorisation as a cryptoasset service provider (CASP) (C(2024)6904). This reflects a mandate in Article 62(5) of MiCA.
- Commission Delegated Regulation relating to continuity and regularity in the performance of cryptoasset services (C(2024)7523). This reflects a mandate in Article 68(10) of MiCA.
- Commission Delegated Regulation specifying the conditions for the establishment and functioning of consultative supervisory colleges (C(2024)6911). Thisreflects a mandate in Article 119(8) of MiCA.
The European Parliament and the Council of the EU will now scrutinise the Delegated Regulations. If neither objects, they will be published in the Official Journal of the European Union and will then enter into force 20 days after publication.
European Union: EBA clarifies procedures for assessment of digital assets
On 22 October 2024, the European Banking Authority (EBA) published a Decisionoutlining procedures related to the significance assessment of asset-referenced tokens (ARTs) and e-money tokens (EMTs), and the transfer of supervisory responsibilities to the EBA under Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA). The guidance lays down a structured approach to understanding how different types of tokens will be regulated within the EU. By clarifying these classifications, the EBA aims to foster a more secure and transparent environment for innovation in financial markets.
Key procedural changes detailed in the Decision include:
- A standardised reporting calendar for national competent authorities (NCAs) and specification of the relevant reference periods and remittance dates.
- Clarified reporting requirements for issuers of significant ARTs (s-ARTs) and significant EMTs (s-EMTs), as well as the data necessary for establishing supervisory colleges.
- Procedural arrangements and a timeline for consultation procedures with relevant parties when notifying draft and final decisions on significance assessments to the issuer's home NCA, the issuer, the ECB, and, where applicable, the national central bank.
- Procedural steps and information needed to ensure a smooth transition of supervisory responsibilities between the EBA and NCAs concerning issuers of s-ARTs and s-EMTs.
- Various templates to aid in implementing these procedures, including one for NCAs to notify voluntary classification requests from ART and EMT issuers, along with a template for stakeholders—including issuers, their home Member State’s competent authority, the ECB, and relevant central banks—to submit written comments on the EBA’s draft decision regarding significant classifications.
The EBA emphasises its commitment to monitoring developments in the crypto-assets sector and may update its guidelines as necessary to reflect changes in technology and market practices.
United Kingdom: FCA publishes cryptoasset blog
On 21 October 2024, the FCA published a blogby FCA Head of Payments and Digital Assets, Authorisations Division, Val Smith. The blog focuses on cryptoasset businesses registering under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Key points include:
- It is often said that the FCA’s approach could stunt innovation and call into question the UK’s position as a global financial leader. However, the FCA treats the risk of firms being used for money laundering extremely seriously.
- Relaxing standards is not a solution as it would not ensure people and markets are protected or even work well.
- The FCA wants to work with partners across government, industry and other jurisdictions to develop a reliable crypto sector built on sturdy foundations.
- The FCA will support prospective firms to meet the required standards and only register firms that do.
UAE: New regulatory regime for DAOs
On 25 October 2024, the Ras Al Khaimah Digital Assets Oasis (RAKDAO), a free economic zone in northern UAE, introduced the DAO Association Regime (DARe), a new regulatory regime for decentralised autonomous organisations (DAOs).
RAKDAO is the world’s first free economic zone specifically designed for digital and virtual asset businesses. The DARe framework seeks to integrate DAOs into the traditional legal and business environment, addressing issues such as legal recognition, liability protection, and regulatory compliance. This aims to foster innovation in the blockchain sector and attract talent. International founders can register their DAO associations without being physically present, with the help of a UAE agent.
Australia: Reserve Bank calls for wholesale CBDC project participation
On 8 November 2024, the Reserve Bank of Australia (RBA) and Digital Finance Cooperative Research Centre jointly published a consultation paper calling on industry players to give feedback on the wholesale CBDC and tokenised bank deposit project dubbed ‘Project Acacia’. The consultation paper also seeks expressions of interest from industry in participating in the experimental research phase and joining an Industry Advisory Group for the project.
The developments come after the RBA published a report earlier this year concluding that whilst there is no clear public interest case for issuing a retail CBDC, it would investigate wholesale CBDC and other forms of digital money and infrastructure upgrades.
Responses must be submitted by 11 December 2024.
European Union: ECB call for expressions of interest in innovation partnerships for the digital euro
On 31 October 2024, the European Central Bank (ECB) issued a call for interest to explore the role of conditional payments within its digital euro initiative. The ECB aims to gather insights from stakeholders on how these payments could function and their potential benefits in enhancing the digital euro's effectiveness. This initiative reflects the ECB's commitment to innovation in payment systems and seeks to better understand how conditional payments can improve user experience and facilitate various transactions within the digital economy.
Global: MAS publishes Project Guardian reports on tokenisation
On 4 November 2024, two Project Guardian reports were published aiming to utilise the potential of tokenisation in debt capital markets and asset management respectively. Project Guardian is a collaborative international tokenisation initiative involving industry and regulators headed by the Monetary Authority of Singapore (MAS).
The first report, Guardian Fixed Income Framework (GFIF), is an industry guide on implementing tokenisation in debt capital markets. The report introduces a framework which aims to facilitate a more predictable and secure environment to promote trust of tokenised financial products. The framework integrates ICMA Capital Market Association’s Bond Data Taxonomy, Capital Markets and Technology Association’s Token Standards, and the GFMA’s Design Principles for Tokenised Securities.
Guardian Funds Framework (GFF) is a report on implementing tokenisation in the asset management sector. It introduces an initial set of non-prescriptive standards and industry best practices for tokenised funds to enable the adoption of asset tokenisation for the fund industry. It also proposes the “Guardian Composable Token Taxonomy”, an architecture whereby multiple asset classes could be combined into composable modules to give fund managers the ability to provide investors with more customised investment options.
The FCA has also published a short statement on the GFF report, noting its participation in this workstream and that it is expected to collaborate with the MAS in 2025 to explore the regulatory considerations for tokenisation within the asset and wealth management sector.
Global: FSB publishes reports on implications of tokenisation on financial stability and G20 crypto-asset policy implementation roadmap
On 22 October 2024, the Financial Stability Board (FSB) published a letter from its Chair, Klaas Knot, to G20 Finance Ministers and Central Bank Governors outlining the work that the FSB has undertaken on financial innovation, payments, and operational resilience. The letter introduces reports that the FSB is submitting to the G20 regarding these issues. These include ‘The Financial Stability Implications of Tokenisation’ and ‘G20 Crypto-asset Policy Implementation Roadmap: Status report’.
‘The Financial Stability Implications of Tokenisation’ report examines tokenisation initiatives using distributed ledger technology (DLT), specifically the tokenisation of financial assets like tokenised money, excluding central bank digital currencies and crypto-assets. The report notes that while adoption is currently low, it is growing and does not pose a significant risk to financial stability at this stage. However, vulnerabilities such as liquidity mismatches, leverage issues, and operational fragilities are identified. The potential for risks increases if tokenisation scales up or becomes more complex, necessitating effective oversight and regulation. The report outlines considerations for the FSB and standard-setting bodies to address these vulnerabilities.
‘The G20 Crypto-asset Policy Implementation Roadmap: Status report’ outlines the progress on the International Monetary Fund (IMF) and FSB crypto-asset policy implementation roadmap. The status report notes that most FSB member jurisdictions are developing or revising their regulatory frameworks for crypto-assets and stablecoins, supported by workshops and capacity-building initiatives organized by the IMF, FSB, and other bodies. However, challenges persist, including inconsistent implementation. Additionally, the report states that specific regulations for stablecoins are necessary due to their susceptibility to confidence loss. The IMF and FSB will continue promoting a coordinated global approach to crypto-asset regulation, with a review of the FSB Framework's implementation planned by the end of 2025.
Global: BIS and CPMI report on implications of tokenisation on central banks
On 21 October 2024, the Bank for International Settlements (BIS) and the Committee on Payments and Market Infrastructures (CPMI) jointly published a report on the implications of tokenisation for central banks, prepared for the G20.
Key points include:
- Tokenisation could address existing frictions in financial markets.
- Tokenisation presents both opportunities and risks. It can reduce transaction costs, enhance resource allocation, and support innovative use cases through features like conditionality and automation. However, it also inherits existing risks related to credit, liquidity, custody, operations, and cyber threats, which may manifest differently due to changes in market structures.
- Tokenisation’s effect on the future financial system remains uncertain. It could be widely adopted for a variety of use cases and some cases could become systemically important. On the other hand, tokenisation could be applied to specific use cases with limited effects on financial markets more broadly.
- In future, tokenisation may affect the roles of central banks in payments, financial stability and monetary policy. Key considerations for central banks could include fostering interoperability in fragmented markets, balancing settlement assets in token arrangements, identifying regulatory needs for certain tokens, and promoting cooperation among authorities across jurisdictions.
United Kingdom: Second reading of Property (Digital Assets etc) Bill
On 13 November 2024, the Property (Digital Assets etc) Bill had its second reading in the House of Lords.
The Bill makes provision about the types of thing capable of being objects of personal property rights. It states that a thing (including a thing that is digital or electronic) can attract property rights despite not falling within the traditionally recognised categories of personal property, namely a thing in possession (tangible things), and a thing in action (that is, personal property that can only be claimed or enforced through a court action such as debts or contract rights).
The government also published a factsheet on the Bill on 6 November 2024. This explains the benefits of the Bill including certainty and protection for digital asset owners by giving them rights and remedies under the law if their digital assets are stolen. Additionally, digital assets being personal property mean they can be part of a person’s estate for inheritance purposes, available to creditors on bankruptcy, or used as security for a loan.
Chapter 3 Market Developments
Singapore: VISA and Tencent to launch palm recognition payment technology
On 6 November 2024, in a press release, it was announced that Tencent would bring together its palm recognition technology with Visa’s payments technology to introduce pay-by-palm technology to the region.
Visa cardholders from the participating banks, including DBS, OCBC and UOB, will be part of the pilot programme. Participants will carry out an enrolment at the merchant point of sale, where they will be invited to tap their Visa card, scan their palm and complete authentication. Once enrolled, a Visa payment token will be bound to their palm biometric template, allowing them to use solely their palm to make future payments at participating merchants. Singaporean café, Alchemist, is the first participating merchant with others to be announced in the near future.
France and Singapore: Quantum cryptography trial completed
On 5 November 2024, it was reported that the Banque de France and the Monetary Authority of Singapore had successfully completed a groundbreaking joint experiment using post-quantum cryptography algorithms. The technology aims to strengthen security measures for internet communications and data transfers across continents. It is said that the integration of this technology into payment networks could help financial institutions to future-proof security measures against the threat of quantum computing.
Global: Launch of the Global Dollar Network to facilitate stablecoin adoption
On 4 November 2024, the introduction of the Global Dollar Network was announced. The Global Dollar Network is an open network designed to accelerate and reward global stablecoin adoption and usage worldwide. The network uses the Global Dollar (USDG), a joint stablecoin issued out of Singapore by Paxos, that is substantively compliant with the Monetary Authority of Singapore’s upcoming stablecoin framework. It was set up by a consortium of financial technology and cryptocurrency companies. The initial partners are Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood. The network is open (by invite-only) to leaders from the industry including custodians, exchanges, payment fintechs, merchants, protocols, card networks, banks and investment platforms.
Thailand: Siam Commercial Bank launches stablecoin
In October 2024, Siam Commercial Bank, Thailand’s oldest commercial bank, revealed that it will begin offering stablecoin cross-border payments and remittances. This is a first in Thailand. This fully commercialised offering has graduated from the Bank of Thailand’s regulatory sandbox. Adding stablecoin service support will allow customers to send or accept cross-border transactions 24 hours a day, seven days a week, whilst reducing transaction costs. This makes stablecoins an attractive option for those receiving remittances from higher-value currencies.
United States: Bitcoin price reaches all-time high
On 12 November 2024, it was reported that the price of Bitcoin had climbed 40% since the election of Donald Trump in the U.S. Presidential Election to reach close to $90,000. Trump has pledged to transform the U.S. into the “crypto capital of the planet”, a strategy aimed at leveraging the economic and political potential of the crypto industry. Additionally, it has been reported that the president-elect has promised to replace current Securities and Exchange (SEC) Chair Gary Gensler with a more crypto-sympathetic regulator, leading to speculation that the SEC could take a more hands-off stance.
Europe: Revolut expands crypto exchange to 30 European countries
On 13 November 2024, it was reported that UK based fintech Revolut would be expanding its cryptocurrency trading platform, Revolut X, to all 30 European Economic Area (EEA) countries. Revolut reports that since it went live in the UK in May 2024, tens of thousands of traders have used the exchange and gained access to 200 digital tokens.
Global: Mastercard aims to eliminate manual card entry by 2030
On 13 November 2024, it was reported that Mastercard plans to phase out the need to enter card numbers, passwords, and one-time codes when making online purchases by 2030. These processes will be replaced by a process enabled by tokenisation and biometric authentication that will make online checkout faster and more secure. This reduces fraud and improves approval rates for transactions. The company will make this change globally. Mastercard is already using this technology in 30% of transactions worldwide with positive results.
United States: VISA launches card letting shoppers toggle between payment types
On 13 November 2024, it was reported that VISA had partnered with Affirm to offer a card utilising ‘flexible credential’ technology to U.S. consumers. The Affirm card can toggle between debit and buy-now pay-later (BNPL) payment options, allowing users to pay using debit anywhere that Visa is accepted or to request to fund their purchase using BNPL in the company’s app.
Brazil: Nubank reaches 100 million customers
On 12 November 2024, it was reported that Brazilian digital banking company Nubank had reached 100 million users in Brazil alone. This captures 57% of the Brazilian adult population. Growth is expected to accelerate as Nubank begins to expand its product range from credit cards and savings to investments, payroll products and higher credit lines.
On 6 November 2024, in a press release, it was announced that Tencent would bring together its palm recognition technology with Visa’s payments technology to introduce pay-by-palm technology to the region.
Visa cardholders from the participating banks, including DBS, OCBC and UOB, will be part of the pilot programme. Participants will carry out an enrolment at the merchant point of sale, where they will be invited to tap their Visa card, scan their palm and complete authentication. Once enrolled, a Visa payment token will be bound to their palm biometric template, allowing them to use solely their palm to make future payments at participating merchants. Singaporean café, Alchemist, is the first participating merchant with others to be announced in the near future.
France and Singapore: Quantum cryptography trial completed
On 5 November 2024, it was reported that the Banque de France and the Monetary Authority of Singapore had successfully completed a groundbreaking joint experiment using post-quantum cryptography algorithms. The technology aims to strengthen security measures for internet communications and data transfers across continents. It is said that the integration of this technology into payment networks could help financial institutions to future-proof security measures against the threat of quantum computing.
Global: Launch of the Global Dollar Network to facilitate stablecoin adoption
On 4 November 2024, the introduction of the Global Dollar Network was announced. The Global Dollar Network is an open network designed to accelerate and reward global stablecoin adoption and usage worldwide. The network uses the Global Dollar (USDG), a joint stablecoin issued out of Singapore by Paxos, that is substantively compliant with the Monetary Authority of Singapore’s upcoming stablecoin framework. It was set up by a consortium of financial technology and cryptocurrency companies. The initial partners are Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood. The network is open (by invite-only) to leaders from the industry including custodians, exchanges, payment fintechs, merchants, protocols, card networks, banks and investment platforms.
Thailand: Siam Commercial Bank launches stablecoin
In October 2024, Siam Commercial Bank, Thailand’s oldest commercial bank, revealed that it will begin offering stablecoin cross-border payments and remittances. This is a first in Thailand. This fully commercialised offering has graduated from the Bank of Thailand’s regulatory sandbox. Adding stablecoin service support will allow customers to send or accept cross-border transactions 24 hours a day, seven days a week, whilst reducing transaction costs. This makes stablecoins an attractive option for those receiving remittances from higher-value currencies.
United States: Bitcoin price reaches all-time high
On 12 November 2024, it was reported that the price of Bitcoin had climbed 40% since the election of Donald Trump in the U.S. Presidential Election to reach close to $90,000. Trump has pledged to transform the U.S. into the “crypto capital of the planet”, a strategy aimed at leveraging the economic and political potential of the crypto industry. Additionally, it has been reported that the president-elect has promised to replace current Securities and Exchange (SEC) Chair Gary Gensler with a more crypto-sympathetic regulator, leading to speculation that the SEC could take a more hands-off stance.
Europe: Revolut expands crypto exchange to 30 European countries
On 13 November 2024, it was reported that UK based fintech Revolut would be expanding its cryptocurrency trading platform, Revolut X, to all 30 European Economic Area (EEA) countries. Revolut reports that since it went live in the UK in May 2024, tens of thousands of traders have used the exchange and gained access to 200 digital tokens.
Global: Mastercard aims to eliminate manual card entry by 2030
On 13 November 2024, it was reported that Mastercard plans to phase out the need to enter card numbers, passwords, and one-time codes when making online purchases by 2030. These processes will be replaced by a process enabled by tokenisation and biometric authentication that will make online checkout faster and more secure. This reduces fraud and improves approval rates for transactions. The company will make this change globally. Mastercard is already using this technology in 30% of transactions worldwide with positive results.
United States: VISA launches card letting shoppers toggle between payment types
On 13 November 2024, it was reported that VISA had partnered with Affirm to offer a card utilising ‘flexible credential’ technology to U.S. consumers. The Affirm card can toggle between debit and buy-now pay-later (BNPL) payment options, allowing users to pay using debit anywhere that Visa is accepted or to request to fund their purchase using BNPL in the company’s app.
Brazil: Nubank reaches 100 million customers
On 12 November 2024, it was reported that Brazilian digital banking company Nubank had reached 100 million users in Brazil alone. This captures 57% of the Brazilian adult population. Growth is expected to accelerate as Nubank begins to expand its product range from credit cards and savings to investments, payroll products and higher credit lines.
Chapter 4 Surveys and Reports
United States: PYMNTS report highlights fraud-related uncertainty
In November 2024, PYMNTS Intelligence published ‘Fraud Risk Management Delays Innovation as Fraud-Related Uncertainty Rises’ which draws on insights from surveys, conducted from 5 September to 17 September, of 60 heads of payments in United States mid-market firms with revenues between $100 million and $1 billion. The report highlights the importance of effective fraud risk management to maintain operational stability and support innovation.
Key findings include:
- Despite an overall decline in uncertainty among middle-market firms, fraud-related uncertainty is increasing. In September, 28% of heads of payment reported that fraud and risk management uncertainties impacted their operations, up from 17% in March, suggesting fraud is playing a growing role in disrupting business processes.
- Heightened fraud concerns are causing significant disruptions. About 62% of firms experiencing high uncertainty have delayed or cancelled innovation projects to manage fraud risk.
- Fraud incidents are forcing companies to reallocate resources and adjust contracts, highlighting the broad operational influence of fraud-related uncertainty.
- A notable 27% of heads of payment reported direct losses from fraud exceeding $500,000 in the past year. This figure rises to 85% in high-uncertainty environments.
Global: Juniper Research publishes report on Global eCommerce Payments Markets 2024-2029
On 11 November 2024, Juniper Research published a report entitled ‘Global eCommerce Payments Markets 2024-2029’.
Some key points from the report include:
- The growth of e-commerce payments in emerging markets, such as India and Brazil, is the main contributing factor to global growth as infrastructural investments increase users’ access to e-commerce platforms.
- The extension of high-speed internet to rural areas in emerging markets will accelerate the available user base for services such as video streaming, and purchasing digital goods will become more accessible through the growth in use of mobile money solutions like the pan-African mobile wallet M-Pesa.
- There is a prediction that payments for digital subscription services will grow the fastest in the Indian Subcontinent over the next five years.
Hogan Lovells (Luxembourg) LLP is registered with the Luxembourg bar.
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