- Key insights: Square is offering an AI assistant to U.K. merchants.
- What’s at stake: Square is hoping to tap into merchant demand for better technology in an uncertain economy.
- Forward look: Block is also adding bitcoin payments and merchant credit to entice merchants.
Square, Block’s merchant-focused business line, is rolling out a free AI-powered virtual assistant in the U.K. The goal is to give businesses greater insights into their operations by connecting payments, sales and outside data, such as weather and other local trends.
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“U.K. businesses are operating in a tough environment right now, with rising costs, staffing pressure, and little margin for wasted time,” said John O’Beirne, CEO and executive director of Square International. “Where Square AI comes in is backing everyday decisions with clarity and confidence, while giving owners meaningful time back each week to focus on what matters most: their customers and their success. It’s built to feel practical, familiar and trustworthy, because that’s what U.K. businesses need to keep moving forward.”
The AI assistant uses natural language processing so that businesses can query it as they would other AI assistants. For example, a business owner can ask the AI to tell it how many of a particular product they sold during a week, or compare daily sales data on a year-over-year basis.
Block has been building out its merchant-facing business in the U.S. and abroad. Last June, it began
Chris Ratcliffe/Bloomberg
Amazon adds Pay by Bank in the UK
While
The e-commerce firm will enable consumers to set up Prime memberships via direct connections to their bank accounts in the U.K. This way buyers can make payments without entering or storing credit card details.
Consumers can also avoid updating payment details when their cards expire. Amazon’s Pay by Bank covers 99% of U.K. banks. Amazon often partners with third parties to provide an
Large retailers such as Walmart have adopted Pay by Bank in recent years, as well as
NCUA proposes stablecoin licensing framework
The National Credit Union Administration is proposing a rule to license and regulate credit union affiliated stablecoin issuers.
Under the proposed rule, which will be published in the Federal Registrar on Feb. 12 but was available in its unpublished form on Feb. 11, credit unions would not be permitted to issue stablecoins directly. Stablecoin issuance would instead be conducted by NCUA-licensed subsidiaries that would be designated as “permitted payment stablecoin issuers,” or PPSI. The proposed rule would also set governance standards, require background checks for key executives, and set rules around collateralization, capital, reserves, anti-money laundering and cybersecurity.
“This proposed rule is the first step in NCUA’s implementation of the GENIUS Act,” said NCUA Chairman Kyle Hauptman in a release. “We’re on track to meet the Congress’ July 18 deadline. Credit unions should be aware that they won’t be at a disadvantage versus other entities, whether in timing or standards.”
NCUA will accept public comments for 60 days after the proposed rule is published in the Federal Registrar.
Some credit unions already have plans to launch their own stablecoins. Minnesota-based
Chris Ratcliffe/Bloomberg
Financial Conduct Authority set new rules for BNPL
Starting in mid-July,
BNPL providers will be subject to the country’s Consumer Duty, a broad regulatory framework enacted in 2023 that requires financial institutions to act in good faith to deliver positive financial outcomes for consumers.
Under the new framework, BNPL providers will be required to provide clear disclosures about the lending agreement, including payment information, amounts and what happens if a payment is missed. Lenders must also take into consideration the borrower’s ability to repay, as well as offer support for consumers who cannot make a payment. Consumers will also be able to file complaints with the Financial Ombudsman Service, an independent body set up by the country’s Parliament.
“We want the buy now/pay later sector to thrive – it provides an important source of credit to many – and we will continue to support firms who want to develop innovative new products,” Sarah Pritchard, deputy chief executive at the FCA, said in a statement. “But crucially, no one should be lent to if they’re unable to repay, because that could worsen their financial situation. Now Parliament has given us the powers, we’re putting in place proportionate protections for the 11 million people who use it.”
Lenders will need to be authorized by the FCA to provide BNPL lending, according to the FCA.
The added regulation signals that the budding credit product is here to stay in the U.K., Chris Jones, managing director at PSE Consulting said.
“In the past, consumer organizations and players in the traditional banking market have raised concerns about the lack of a level playing field for consumer lending, with BNPL exploiting loopholes in regulation. This announcement should put these concerns to rest, and allow BNPL to flourish in the mainstream of consumer credit,” Jones said. —Joey Pizzolato
SOPA Images/Photographer: Thomas Fuller/SOPA
DLocal pushes real-time payment confirmation in Brazil
Cross-border payment fintech dLocal has partnered with DHL Express Brazil to increase automation for transactions on Pix,
DHL Express Brazil has embedded Pix into its checkout, which cuts manual processing steps such as bank reconciliation and payment receipts requests.
Pix, which supports Brazil’s real-time payments, has become the world’s second largest real-time payment system after India, which also has a government-mandated real-time payments network, UPI. Pix is adding more business payments, and the dLocal partnership enables firms to remove traditionally manual steps such as verification.
By using the Pix integration, payments reconcile within DHL’s clients’ customer relationship management systems, enabling operations to shop parcels in minutes instead of the normal time of a few hours, dLocal said in a release.
“Speed is at the core of our value proposition, and payments need to move at the same pace as our logistics operations,” said Marco Vollmer, chief financial officer at DHL Express Brazil, in a release.—John Adams
Uber ups its global financial services game
Dutch payment processor Adyen has deepened its relationship with ride-sharing app Uber to include more payment alternatives in more countries.
Uber, which has used Adyen as a payment processor for 13 years, has expanded into Hong Kong and United Arab Emirates. Adyen and Uber will also expand merchant acquiring activities in Japan, Mexico, New Zealand and Australia. Additional enhancements include Pix in Brazil, AfterPay in Australia and WeChat Pay — serving travelers who book Uber rides through WeChat’s app. Uber and Adyen will also team up to install Uber kiosks in airports, hotels and other venues — with the first installation at LaGuardia Airport.
The additions will expand Uber and Adyen’s network to more than 70 countries.
“A reliable and innovative payment platform is a fundamental requirement for Uber’s global growth. Continuing and expanding our partnership with Adyen is key to that, enabling us to support our growth and quickly integrate new methods,” said Karl Hébert, vice president of global commerce at Uber, in a release.
Uber, which made a mark in e-commerce with a simple booking and checkout app, has made a
Zelle reports volume boost
The
Zelle also reported 647.6 million small-business transactions, up 23.5%; 7.7 million enrolled small businesses, up 15%; and $357 billion in small-business payments, up 26%. And more than 100 million bank and credit union accounts sent money in December via Zelle, the app’s largest monthly usage.
Zelle has focused on reaching
Early Warning, which operates Zelle, is owned by Bank of America, Capital One, JPMorganChase, PNC Bank, Truist, U.S. Bank and Wells Fargo. Zelle, which has largely focused on the U.S., is planning an international expansion,
David Paul Morris/Bloomberg
U.S. Bank payments subsidiary gets a facelift
Elavon, U.S. Bank’s payment processing subsidiary, is getting a makeover as the Minnesota-based bank looks to refresh the image of the company it acquired 25 years ago.
The rebrand comes with a
“Our rebrand introduces a fresh symbol and dynamic visual identity that evokes connection, partnership and seamless transactions,” said Kim Osborn, chief administrative officer for Elavon, in a statement. “This initiative aims to create a unified, modern Elavon product brand that aligns with U.S. Bank, while effectively telling the story of payments expertise and our commitment to partnership.”
The rebrand comes as banks look to compete with encroaching payment fintechs. Companies such as Square, Block’s merchant acquiring unit, Adyen, Stripe, Global Payments and even Fiserv’s Clover are all vying for retailers’ business. Banks are also facing competition from fintechs in commercial payments, which has spurred at least one