Hey FinTech Fanatic!
Apple has agreed to let third-party mobile wallet and payment services in Europe use the technology behind its Apple Pay app, a move aimed at addressing competition concerns raised by European regulators.
The U.S. tech giant announced on Friday that it would permit other companies' apps to make contactless payments on iPhones and other devices running its iOS operating system, free of charge, without the necessity of using Apple Pay or Apple Wallet.
This decision follows an investigation by the European Commission into whether Apple's restrictions on access to NFC technology - essential for mobile devices to interact with payment terminals - violated competition rules. Apple stated that this concession comes after discussions with the Commission and emphasized that Apple Pay, currently supported by over 3,000 issuing banks in Europe, would remain widely available.
Under the new proposal, European consumers using their mobile devices for payments will have the choice between Apple Pay or an iOS-enabled app. Users will also have the flexibility to change their default payment method at any time.
Apple has offered the following concessions:
- Only banks and finance companies in the EEA* get access
- Though once an EAA card is registered, it will work worldwide
- iPhone owners can choose to register a card for Apple Pay or a bank’s own app
- The same security and authentication processes will apply
- The access lasts for 10 years
*European Economic Area: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
It will be interesting to watch how this evolves in various areas around the world.
Enjoy more FinTech Industry updates I listed for you below👇, and have a great start to the week!
Rasha Katabi, Founder & CEO of Brim Financial, Tom Warsop, President & CEO of ACI Worldwide, and John Caplan, CEO of Payoneer, join Jill Malandrino on Nasdaq TradeTalks to discuss the modernization of payments and what it means for the global economy.
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Onafriq and Alviere partner to launch embedded remittances and other payment services from the US to Africa. Onafriq connects various payment schemes with more than 500 million mobile wallets, over 200 million bank accounts, and 400 thousand SMBs in its network across Africa’s fast-growing yet fragmented payments ecosystem.
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Apple offers to open mobile payments to third parties amid EU antitrust case. Under Apple’s proposal, consumers in Europe will be able to decide between Apple Pay or an app enabled by iOS, addressing concerns about blocking access to the technology behind Apple Pay.
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DIGITAL BANKING NEWS
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GoTyme Bank gains 2.3-M customers in just 14 months, having an average of 250,000 customers per month over the past three months. The company said GoTyme’s first 14 months were ahead of Tyme group’s South Africa operation on a like-for-like basis. It acquired 1.6 million customers within the same timeframe.
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🇬🇧 Wise accuses high street banks of hidden exchange rate fees. For GBP to EUR, Wise reports that HSBC has the highest fee for exchange rates (3.7%), followed by Lloyds at 3.6%, Barclays at 2.75%, and NatWest, TSB and Santander all at 2.5%. Read more
DONEDEAL FUNDING NEWS
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🇬🇧 Vertice gains $25 million in Series B. The company has now raised a total of $51 million since January 2022, upping its valuation into the hundreds of millions. Vertice will use the capital to further fuel its pace of product innovation and accelerate its worldwide expansion.
Goldman Sachs-backed ZestMoney, once valued at $450M, sold to DMI in fire sale. The two firms didn’t disclose the terms of the deals, but a person familiar with the situation said the acquisition is largely a way for DMI to poach and retain talent and that every investor in ZestMoney lost money.
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