Latest global payments news

By John Adams, Kate Fitzgerald, Bloomberg News

February 22, 2023 12:29 PM

CBDC tests in Japan, real-time payments in Singapore and India, and more. Here's what's happening around the world.

Daniel Acker/Bloomberg

Visa launches inclusion program in Africa

Visa is working with Tingo Mobile to improve access to digital payments and other banking services in countries across Africa, with an initial focus on agriculture. The program includes the Tingo Visa Card, TingoPay Super App and a business portal. The card is usable throughout Visa's global merchant network. Consumers can access the Visa card through TingoPay and make payments in local or foreign currencies, set up recurring payments and view financial statements. Foreign exchange, utilities and mobile top ups are also available. The services are similar to MPesa, a mobile money app that has spurred financial inclusion in Africa for years. It also follows a pledge from Visa to invest $1 billion in payment technology in Africa over the next five years. —John Adams

Bank of Japan (BOJ) headquarters in Tokyo

Kiyoshi Ota/Bloomberg

Japan plans test of digital yen

The Bank of Japan plans to test a digital yen following more than two years of study. The pilot will start in April and will study how a central bank digital currency works with consumers and retailers — meaning the BoJ is considering both wholesale CBDCs, which are designed for larger intra-institutional transfers, and retail CBDCs for consumers and merchants. The central bank, which is working with digital identity firm Idemia and the fintech Softspace to execute CBDC payments in stores, will additionally set up a forum for private sector payment companies to share information. The progression to field tests puts Japan ahead of other mature banking markets, such as the U.S. and U.K., which are still conducting feasibility studies ahead of field testing. —John Adams

Brent Lewin/Bloomberg

Payment cards powered Philippines’ 2022 e-commerce surge

The Philippines' e-commerce market saw explosive growth in 2022, increasing 31% over 12 months to reach $9.8 billion, GlobalData said in a press release. More than half of the nation's e-commerce transactions last year were conducted via credit or debit cards, while alternative payment tools including GCash, PayPal and PayMaya accounted for about 25% of all e-commerce transactions. Cash accounted for 15% of online purchases, and bank transfers came in at about 10%, GlobalData said. The research firm predicts the Philippines' e-commerce market will more than double to $19 billion by 2026 at the present growth rate. —Kate Fitzgerald

U.K. challenger bank Zopa acquires buy now/pay later platform

Zopa, a London-based digital bank, has announced plans to acquire buy now/pay later platform DivideBuy. It's the first deal for Zopa, which raised US$90 million earlier this month for an M&A push, the bank said in a press release. U.K.-based DivideBuy offers interest-free BNPL financing spread over two to 12 months on purchases up to US$36,000 through integrations with more than 400 merchants. Financial terms of the deal, expected to close in the first half of this year, were not disclosed. —Kate Fitzgerald

Euronet’s epay Australia partners with Alipay

Euronet Worldwide's epay Australia payments processing unit has formed a partnership with China-based Ant Group's Alipay to roll out the Alipay+ cross-border mobile payments and marketing platform across 8,000 Australian retailers, according to a press release. The integration, set to be completed by the end of next month, will enable merchants in Australia to accept payments from more than 1 billion users of the Alipay+ e-wallet, encompassing Alipay in Hong Kong and China; GCash in the Philippines; South Korea's Kakao Pay, Thailand's TrueMoney and Malaysia's Touch 'n Go eWallet. Euronet, which is based in Leawood, Kansas, said its global payments network covers online and in-store payment acceptance services at more than 350,000 retail locations in 63 countries. —Kate Fitzgerald

Singapore, India real-time payments achieve interoperability

The Monetary Authority of Singapore and Reserve Bank of India have connected Singapore's PayNow digital payment system with India's national United Payments Interface. The link enables consumers of banks in Singapore and India to transfer funds between accounts or digital wallets with instant settlement. The cross-border link is launching with a limited number of banks, with plans to expand in the coming months. The first payment was a transfer between Ravi Menon, MAS' managing director, and Shaktikanta Das, governor of India's central bank. Ensuring cross-border payments can settle in real time is one of the challenges that face real-time payment projects globally, with efforts underway involving banks in different countries that are attempting to integrate real-time payment networks in different jurisdictions. —John Adams

Revolut adds credit card in Ireland

Revolut has rolled out a credit card for consumers in Ireland as part of a strategy at the U.K. fintech to build a financial super app by offering products beyond payments, such as shopping features, stock trading and lending. In Ireland, where Revolut has about 2 million customers, it offers loans and point-of-sale credit, among other payment and digital financial services. London-based Revolut is offering a 0% transfer offer for the first three months, and no interest for the first three months for consumers who make monthly minimum payments. It plans to offer an annual percentage rate of 17.99% thereafter. —John Adams

Commerzbank hires Bain for strategy update as rates drive growth

Commerzbank is working with management consultancy firm Bain on updating its strategy as the German lender seeks to boost revenue while keeping costs in check. The bank has hired Bain as part of efforts to adapt its existing strategy to a rapidly changing economic backdrop, people familiar with the matter said. Potential ideas include winning wealth management mandates from existing business clients, getting more companies to use digital services, and selling more products linked to sustainability considerations, the people said. All asked not to be identified discussing private deliberations. Chief Executive Officer Manfred Knof is halfway through a four-year turnaround plan that's seeking to boost profitability by curbing expenses and growing revenue. —Steven Arons

Deutsche Bank rebuilds Mexico office as others head for exit

Deutsche Bank sees opportunity in Mexico where other investment banks don't. The German lender is expanding its operations in Latin America's second-largest economy, with an eye to tapping into international interest in the country's manufacturing base, according to Christiana Riley, chief executive officer of Deutsche Bank Americas. That means focusing on providing more foreign-exchange and fixed-income derivatives to corporate clients, she said. The expansion stands in sharp contrast to banks including UBS Group AG and Credit Suisse Group AG that have sought to dial back operations in recent years in Mexico as banks look to cut costs and exit non-core markets. —Michael O'Boyle