November 16, 2022 FinTech Monitor

BFC FinTech Monitor (October – November 2022)

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Stay up-to-date on all the latest FinTech news and information from around the world in the BFC FinTech Monitor.

Around the World

#Reports and Studies

  • Juniper Research is predicting that the number of users of contactless mobile payment solutions will exceed 1 billion people in 2024, the result of increased consumer demand and a growth in infrastructure capable of accepting contactless payments.
  • According to a McKinsey report, the revenue of the global payments industry grew 11% in 2021, reaching USD 2.1 trillion.
  • Polish BaaS provider Vodeno has found that 68% of European SMEs are planning to implement real-time payment processing in 2023.
  • A Yole Group report indicates that the global market for consumer biometrics is expected to reach USD 11 billion by 2027.

#Innovations

  • The European Union intends to launch a digital identity wallet that will incorporate information on national identity cards, driver licenses, qualifications and bank accounts.
  • American financial holding JPMorgan Chase, together with Mastercard, is testing a new service based on open banking that will allow consumers to make payments using only their basic bank account information instead of card payment details.
  • WeChat Pay users in China can now confirm payments using the palms of their hands thanks to the Palm Payment Biometric Authentication System.
  • Mastercard has approved the first prototype of contactless cards resistant to quantum attacks.
  • The Commonwealth Bank of Australia has launched the Smart Giving app, which allows charities to accept digital contactless donations.
  • Polish retail chain Komputronik is implementing a biometric payment system for goods based on PayEye technology. Buyers just need to look at a special eyePOS terminal to complete a transaction.
  • The European Central Bank (ECB) has postponed the launch of a new real-time gross settlement system and a centralized liquidity management model until March 2023. The regulator’s Market Infrastructure Board felt it necessary to give users more time to complete testing.

#Cryptocurrencies, Blockchain and Non-Fungible Tokens (NFTs)

  • The head of the FTX crypto exchange, Sam Bankman-Fried, lost 94% of his fortune a day after its merger with Binance. Earlier, FTX had announced the launch of its own Visa cryptocurrency debit cards in 40 countries around the world.
  • American financial holding JPMorgan has successfully completed its first cross-border transaction in the framework of decentralized finance (DeFi).
  • CoinDesk is estimating that more than 24,000 people have lost their jobs in the crypto industry over the past six months.
  • The Crypto Asset Regulation Proposal (also known as the Crypto Asset Markets Regulation (MiCA)) will not be adopted until February 2023 at the earliest.
  • According to CoinATMradar, the number of ATM devices for transactions with crypto assets has reached a record level, with 1,459 crypto ATMs operating in Europe.
  • The MoneyGram money transfer system has added cryptocurrency trading tools to its mobile application.
  • Mastercard has developed the AI-based Crypto Secure anti-crypto fraud solution. The company also introduced the Crypto Source program, which allows banks to trade cryptocurrencies.
  • Former Revolut employees have raised USD 3.5 million to create a crypto investment app.
  • The Organization for Economic Co-operation and Development (OECD) has published the Tax Reporting Framework for Crypto Assets (CARF).
  • Google will now accept payments for cloud services in ten cryptocurrencies.
  • Visa and Mastercard plan to launch a CrossFi acquiring service, which will allow consumers to work with USDT, BTC, ETH and TRON tokens. Visa also intends to create its own cryptocurrency wallet.
  • Crypto exchange Blockchain.com has announced the release of a Visa debit card with 1% cryptocurrency cashback for each purchase.
  • Seven more cryptocurrency and blockchain companies will take part in the global Mastercard Start Path program.

#Central Bank Digital Currencies (CBDCs)

  • Christine Lagarde, head of ECB, has announced that the European Commission will soon submit a bill on the digital euro.
  • The Bank for International Settlements (BIS) and regulators in France, Singapore, and Switzerland are exploring cross-border trading and CBDC settlements using DeFi protocols.
  • The SWIFT interbank system for transferring information and making payments has completed the development of methods for using CBDCs in international payment transactions.
  • Japan Credit Bureau (the Japanese analogue of Visa and Mastercard) will test plastic cards for use with CBDCs.
  • The Central Bank of the United Arab Emirates (CBUAE) has completed the world’s largest CBDC regulator transaction pilot project.
  • US Federal Reserve Board member Christopher Waller has said that a US CBDC will not improve the qualities of the fiat dollar that are valued by foreign companies.

#Miscellaneous

  • New Twitter owner Elon Musk has said that the company will consider launching money transfers between users.
  • The European Banking Association has developed a taxonomy of fraud that is expected to provide a simplified and understandable framework for describing fraud scenarios associated with all types of payments, including card transactions.
  • Apple is working with Goldman Sachs to launch high-yield savings accounts for Apple Card holders. The company also entered into an agreement with PayPal to start accepting each other’s payment products within separate ecosystems.
  • Revolut is offering a new account type for freelancers that has a built-in Shops marketplace.
  • JP Morgan has invested in the Tilia payment platform, which was originally created to support the Second Life online virtual world economy.

Ukraine

  • The FinTech Ukraine 2022 conference will be held in Kyiv on November 18, 2022. The conference is thematically divided into three sections: (1) regulatory novelties, (2) recent research and (3) trends in Ukrainian and global fintechs.
  • Fintech Insider describes how constant power outages and interruptions in the internet affect the work of Ukrainian banks and fintech companies.
  • The largest crypto-exchange Binance and the Ministry of Digital Development are integrating cryptocurrency payments into the Diya application. Additionally, the Binance Pay payment method is now accepted when purchasing fuel across the country.
  • Dealroom.co, in collaboration with Google for Startups and Atomico, conducted a study of the startup and venture capital market in Central and Eastern Europe in 2022. The value of all Ukrainian startups was estimated at USD 23.3 billion in 2022, which is almost USD 3.8 billion lower than a year earlier.
  • Ukrainian companies, researchers and government agencies can receive financial assistance for the implementation of their own projects within the framework of the Digital Europe Program, including in areas related to high-performance computing, data, AI, digital skills and public sector digitalization.
  • Israeli company Nemesysco VAS (Voice Analysis Solutions) has announced the opening of its first office in Ukraine. The company specializes in the creation of intelligent services that can determine levels of risk when processing financial products based on the voice of customers.
  • A system of cashless contactless payments for public transportation has been launched in Kyiv.
  • Ukrainian fintech company SDK.finance won second place at the CBDC international hackathon.
  • Entrepreneurs will now be able to pay taxes using the Privatbank mobile app.

Kazakhstan

  • The National Bank of Kazakhstan has begun testing the digital tenge with financial institutions.
  • Kazakhstan has became the first country in Central Asia to launch an accelerator jointly with Google – the Silkway Accelerator Project.
  • The largest crypto exchange Binance intends to test the integration of the digital tenge into the chain of the European BNB Chain Incubator Program.
  • A bill on the legalization of mining was approved in its first reading. This comes following comments by the head of the state (Kassym-Jomart Tokayev) that the cryptocurrency should receive full legal recognition.

Kyrgyzstan

  • AI Fusion, a resident of the Hi-Tech Park, presented a system for transferring routine work in financial institutions to smart robots at the Fintech without Borders.Digital Eurasia forum.

Tajikistan

  • Gulanor Atobek, the new chairman of Alif Bank, discusses how the bank plans to continue to use innovative technologies and digital tools to develop customer services.

Uzbekistan

  • Residents of Uzbekistan will be able to purchase crypto assets using soums.
  • Anton Martynenko, director of big data analytics at Humans, speaks about how big data analysis helps companies attract customers, build a business strategy more efficiently and find new growth points.
  • Dmitry Kharitonov, CEO of Innotech Group, discusses how fintech can change the economy of Uzbekistan, particularly how Uzbekistan is poised to digitalize much faster than other countries and transition from plastic to biometrics.
  • Uzcard has introduced a new application for contactless payments that can work without access to the internet.
  • Uzbekistan has introduced monthly commissions for the activities of cryptocurrency companies.
  • Uzbekistan climbed another four positions in the Global Innovation Index (GII), reaching 82nd place (out of 132).
  • Neobank has integrated its services with Uzum Group, meaning that consumers can now use QR-code payments solutions via Uzum Pay.
  • New services available in Uzbekistan:
    – Transfers between cards without commissions in the Beepul app
    – Transfers to China and other countries from UnionPay, Visa, Mastercard cards in the Ipak Yuli bank app
    – Remote identification in the InfinBANK app
    – Payments for international services using the Payme payment gateway for owners national cards

Azerbaijan

  • Representatives of the Azerbaijani banking sector are studying the experience of Turkish payment systems.
  • Ruslan Talibov, chairman of the board of the Azerbaijan FinTech Association, has stated that local fintech companies need direct access to payment systems.

Armenia

  • The FINTECH360 international conference was held in Yerevan, with more than 200 representatives of leading banks, IT and telecommunications companies, payment systems and specialized associations participating in it.
  • Armen Harutyunyan, a research fellow at the Singapore University of Social Sciences and a member of the Academic Council of the Global Fintech Institute, discusses what Armenia needs to develop its crypto industry.
  • According to Izvestia, the Central Bank of the Russian Federation may launch a fast payment system in Armenia and Kazakhstan.

Georgia

  • The largest European cryptocurrency exchange of Ukrainian origin, WhiteBIT, has taken over Unicard, Georgia’s first and largest non-banking institution and the local market leader in loyalty programs and e-wallets.
  • Residents of Georgia can now pay with select cryptocurrencies (Bitcoin, Bitcoin Cash, Bitcoin Gold, Zcash, Litecoin) in Fresco supermarkets.
  • Bank of Georgia has been recognized as the world’s best digital bank for private clients by the international edition of Global Finance.
  • Coinbase intends to sue traders from Georgia who bought cryptocurrencies at 100 times below market prices due to an exchange error.

Moldova

  • Stefan Nistor, the founder and coordinator of the Fintech Moldova platform, discusses how fintech is developing in Moldova.
  • The Fintech Moldova Conference 2022 brought together over 270 participants, including representatives from Moldova, Portugal, Romania, the United Kingdom and the United States.

Prepared by BFC