8.8.19 Your morning briefing
The information you need to start your day, from PaymentsSource and around the Web:
Not so strong
PSD2's strong authentication compliance has been weak thus far, hampered by delays and lobbying for extensions.
Given that many firms will not hit the September deadline for stricter ID controls, the U.K.'s Financial Conduct Authority is recommending an 18-month delay after receiving input from industry groups that up to 25% of payments would be impossible to complete, reports the Financial Times, adding the FCA is recommending additional time for travel and hospitality payments.
The European Banking Authority earlier this year said it would grand limited extra time for strong authentication compliance on a case by case basis, provided the petitioner had a detailed roadmap for compliance.
Visa won't halt gun payments
Visa will support gun sale payments as long as it's legal, CEO Al Kelly said in a television interview.
Kelly told CNBC it is up to legislatures to "do their job" and Visa's position on gun purchases has not changed in the wake of recent mass shootings. PayPal and Square do not process gun sales, while Mastercard CEO Ajay Banga has said it's not his firm's role to tell people what they cannot buy.
Payment companies often face political pressure to curtail payments for certain groups, such as gun sales or political groups that espouse bigotry or violence, an effort that in the case of political groups is complicated by tracking challenges.
Amid an almost endless series of data breaches, there is a ray of good news in a report that payment fraud is on the decline in Australia.
Good news on payment fraud is relatively rare, though there are signs of decline in Australia.
The rate of fraud for 2018 was 78 Australian cents for every 1,000 Australian dollars spent, or down 75 Austrlian cents per 1,000 Australian dollars in 2017, according to the Australian Payments Network, a self-regulating payments industry group. It's the first such decline since 2006.
Card-not-present fraud is still growing in Australia, though not as quickly. CNP fraud in Australia increased 2.8% in 2018, compared to a 13.9% jump in 2017.
Bitcoin tax cut
A bill that would reduce cryptocurrency taxes has been reintroduced. Rep. Ted Budd (R, N.C.) introduced the the Virtual Value Tax Fix, a bill that did not advance when Budd first introduced it in 2018.
The bill would change the Internal Revenue Code to make crypto transactions eligible for like-kind deferral, reports CoinDesk. That means a removal of a tax on the disposal of one asset and the acquisition of a replacement asset. Budd has argued this subjects cryptocurrency transactions to "double taxation."
Another bill, the Token Taxonomy Act, would also reform cryptocurrency transactions by excluding some cryptocurrency tokens from regulation as securities. Both of these bills, according to supporters, would remove either compliance or tax revenue.
The payment company estimates there are 500 million internet users in Latin America, creating an e-commerce consumer base to fuel Stripe's quest to reach merchants in the region.
It is currently working with several technology partners to build its base in Latin America, including Platzi, Rappi, Cornershop and Parafuzo.
From the Web
SWIFT sets up wholly-owned enterprise in Beijing
China Daily | Wed Aug 7, 2019 - The Belgium-based financial messaging services provider SWIFT set up a wholly-owned enterprise in Beijing Tuesday amid China's further opening of its financial market. The move marks the company's foray into the world's second-largest economy, making RMB the third international currency accepted by the organization after the dollar and the euro, according to Alain Raes, chief executive of SWIFT Europe, Middle East and Africa.
FTC asks Equifax data breach victims to opt for credit monitoring instead of cash
Fox News | Wed Aug 7, 2019 - You’ve probably seen news reports about the $700 million settlement in the Equifax data breach case from 2017. Affected consumers are eligible for free credit monitoring, payments for time spent battling identity theft or $125 if they already have monitored credit. But after an overwhelming response, FOX consumer reporter Steve Noviello says the Federal Trade Commission issued a nation-wide alert to consumers that essentially asks people to stop taking the cash option.
Comex to distribute Poni Cash Cards in Mexico
Verdict | Wed Aug 7, 2019 - Comex, a PPG brand, has signed an agreement to distribute Poni Cash Cards throughout Mexico. The collaboration is a result of the expanding remittances market between US and Mexico. Under the agreement, Comex will make Poni Cash Cards available across its network of more than 4,500 stores and concessionaires. The card will give existing and potential customers of Comex the convenience of zero-fee ATM remittance payout.
More from PaymentsSource
What happened to an early pioneer in faster payments
Three years ago, payments technology provider Dwolla submitted a 164-page proposal to the Federal Reserve's Faster Payments Task Force. This week, the Fed unveiled a plan for its own faster payments system, but Dwolla had already moved on to other projects.
Alexa, what's the latest on voice payments?
Virtual assistants, whether on our smartphones such as Apple's Siri or in our smart home speakers such as Amazon's Alexa, have made a full-scale invasion of consumers’ lives with the hope that they will improve them.
Shinhan Card pilots face payments in Korea with BGF Retail
Shinhan Card has begun piloting facial recognition payments with its employees at its headquarters’ retail facilities in partnership with South Korea’s largest convenience store operator BGF Retail.
International payments are getting lost in a vocabulary ocean
Credit card, direct deposit, check, cash, e-pay… making domestic payments is a breeze these days, with enough flexibility to offer optimization based on your vendor’s payment preferences.