In today’s top payments news, JPMorgan blocks FinTechs from accessing customers’ passwords, and Ant Financial and Razer throw their hats into the ring for one of Singapore’s five available digital banking licenses. Plus, Indonesia is planning to implement flat-rate fees for certain digital wallet transactions.
JPMorgan Chase blocked FinTech apps from accessing customers’ passwords, in order to enhance consumer privacy and protection, and increase consumer awareness of what data is being used. JPMorgan CEO Jamie Dimon voiced his fears of the risks from data sharing back in a 2016 shareholder letter.
Both Ant Financial and gaming company Razer recently applied for digital banking licenses in Singapore, where five such licenses are currently up for bid, to be awarded in mid-2020. Southeast Asia’s digital lending market is anticipated to top $110 billion by 2025 — over four times what it is worth now.
Indonesia is planning to implement flat-rate fees for certain digital wallet transactions, which would end up costing smaller merchants more than they currently pay. Currently, fees are adjusted according to type of vendor, with larger merchants paying more to offset costs for small shops, and eWallet companies don’t have to share any portion of the transaction fees with lenders.
Regular increases to hourly wage are helping small business employees see fatter weekly paychecks, up 4.1 percent year over year. The earnings growth is the highest since the Paychex/IHS Markit Small Business Employment Watch report launched in 2011.
In most countries, FinTechs view PSD2 as an opportunity to better compete with legacy banks. That’s not exactly the case in Turkey, where banks have had ample time to prepare for the rule. In the latest PSD2 Tracker, CEO Soner Canko of Turkish banking consortium Bankalararasi Kart Merkezi (BKM) discusses Turkey’s unique position as PSD2 launches Jan. 1, 2020.
With about one-third of Alibaba’s buyer base stemming from the U.S., North America is a critical market for the B2B eCommerce platform. Now, the company is expanding its international reach to enable North American B2B vendors onto the portal as well. Kivanc Onan, head of B2B North American financial products at Alibaba Group, tells Karen Webster how payments and financial technology will be key Alibaba’s global ambitions, and to fostering trust between cross-border buyers and suppliers.