XRP rules could push Ripple out of U.S.; Nets acquires Swiss POS company

Register now

The information you need to start your day, from PaymentsSource and around the web:

Security risk

Ripple may leave San Francisco because of a dispute over how the XRP token may be regulated in the U.S.

The blockchain company may wind up in London, where it expects XRP would not be regulated as a security, a classification that entails stricter rules, report CNBC, which interviewed CEO Brad Garlinghouse. Garlinghouse said the U.K.'s FCA has "made it clear" that XRP is not a security.

The SEC has not ruled on XRP, though it has suggested XRP should be regulated as a security, causing a battle with Garlinghouse that has raged for several years. Garlinghouse has said XRP and Ripple are separate entities.

Brad Garlinghouse, chief executive officer of Ripple Labs

Outsourced

Alliance Data Systems Corp. is moving its card processing services to Fiserv after years of handling it in-house for its private-label, co-branded and commercial card portfolio.

Alliance, based in Columbus, Mo., expects the move to improve operational efficiencies while adding new digital capabilities and enhancements, ADS said in a press release.

This month, Alliance Data added tools enabling merchants to send offers to customers in real time with the ability to apply for credit directly from its merchant partners’ websites.

Playing hardball

A proposed law in China would ban all yuan-based stablecoins except for China's own pending central bank digital currency.

The government is positioning the move as a way to prevent virtual currency risk, but it would hurt crypto businesses in China which use stablecoins to trade, reports Coindesk.

China has made several moves over the years to curtail cryptocurrency, including outright bans. The digital yuan is in part an effort to stem the influence of cryptocurrency in China, as well as large western technology and data companies.

Nets' deal

European payments technology company Nets has acquired CCV Schweiz, a Swiss point of sale terminal seller.

The purchase will expand Nets' markets in Germany, Austria and Switzerland. CCV Schweiz's portfolio includes 34,000 payment terminals. Terms of the deal, which is expected to close in the next few weeks, weren't disclosed.

Nets is also the subject of a potential acquisition, as Nets' private equity ownershave invited bids from potential buyers in recent weeks.

From the web

African money transfer firms thrive as pandemic spurs online remittances
REUTERS | Monday, October 26, 2020
Having fled an economic implosion in his native Zimbabwe, Brighton Takawira was able to support his mother back home with modest earnings from a small perfume business he set up in South Africa.

India's Future Retail says examining order against Reliance deal
REUTERS | Monday, October 26, 2020
Future Retail said on Monday it was examining an order by an arbitration panel to put on hold its $3.38 billion asset sale to Reliance Industries, and would take steps in enforcement proceedings to close the deal without delay.

PayPal drops domain registrar Epik over its 'alternative' digital currency
ENGADGET | Sunday, October 25, 2020
PayPal may be friendlier to digital currencies, but that doesn’t mean it’s giving everyone a free pass.

More from PaymentsSource

Real-time payments are changing gig-economy, real estate payments at small banks
Two smaller banks with strikingly different roots — a startup financial institution in Irvine, Calif., and a century-old Missouri-based bank — are seeing similar trends emerge around demand for real-time payments.

SCOTUS' rightward shift puts fintech's destiny in states' hands
A limited federal government constrained by the Constitution and conservative courts can’t easily exercise broad authority over digital finance, says DailyPay's Matt Kopko.

Amex's recipe for small-business lending: Heavy on the Kabbage
With the COVID-19 pandemic creating unprecedented challenges for small businesses, American Express has increasingly targeted its investments in that niche.

Skipify to offer instant purchasing through Gmail
Skipify, a Cupertino, Calif.-based AI payments and commerce provider, will power its 1-Touch payment technology through a new Shoppable Email program that also provides real-time product information and a shopping cart inside of the e-mail.

A Biden win could boost long-stalled efforts to help the unbanked
Financial stability was a central priority during Barack Obama’s presidency. As soon as Donald Trump took office, deregulation became a key focus. If Joe Biden gets elected, the issue of financial inclusion may finally gain prominence in the banking policy realm.

PayPal in talks to buy crypto firms including BitGo
PayPal Holdings Inc. is exploring acquisitions of cryptocurrency companies including Bitcoin custodian BitGo Inc., according to people familiar with the matter, a move that would expand its embrace of digital coins.

Big tech's the big player in real-time payments
The past few years have seen big tech becoming involved in a number of financial products that span deposits, loans and credit cards and that trend will come to the world of real-time payments.

Ant’s IPO lures Fidelity, T. Rowe Price, UBS Asset
T. Rowe Price Group Inc., UBS Asset Management and FMR LLC, the parent of Fidelity Investments, are among the money managers angling for a piece of Ant Group Co.’s blockbuster initial public offering, a person familiar with the matter said.

Brick-and-mortar shops use new payments tech to grow sales during lockdown
Small and midsize merchants in North America continue to struggle with the effects of COVID-19 on their bottom lines, but those who have developed an online presence and made changes to in-store payments have found the process to be a vital step.

PCI compliance is complicated, but it can be conquered
As fraud continues to rise, there are a series of steps merchants can take to bring themselves into PCI compliance, says Qualpay's Penny Townsend.

A debit account that rewards users for shopping at Black businesses
The media company Urban One has launched a new digital bank account geared toward Black consumers that rewards users for shopping at Black-owned businesses.

For reprint and licensing requests for this article, click here.
MORE FROM PAYMENTSSOURCE