This article highlights some of the most significant stories from the fintech world in January 2024.
HSBC launched a competitor to Wise
HSBC kicked off the year with the launch of its global currency conversion app, Zing, which directly competes with market leader Wise. The app, which includes an accompanying card, will initially roll out in the UK and expand to other locations worldwide. Later in the month, Wise renewed its criticism of high street banks for hidden fees in foreign exchange but noted that Zing features no such fees.
Apple offers to open up NFC payments
In response to antitrust charges from the European Commission, Apple has agreed to allow third-party providers access to its NFC payment system. The case, initiated in 2022, could have potentially cost Apple billions in fines. However, the company faces ongoing legal challenges, including a class action lawsuit from card issuers in the United States, along with scrutiny from the Consumer Financial Protection Bureau (CFPB).
Big Tech firms fight back over digital wallets regulation
The Computer & Communications Industry Association (CCIA), representing major tech companies, has opposed CFPB proposals aimed at regulating non-bank financial firms handling over five million transactions annually. The proposed rules, which would require compliance with financial and consumer protection laws for firms like Google, Apple, PayPal, and Block, have been criticized by CCIA for lacking clear identification of specific risks.
X plans to launch peer-to-peer payments
X, formerly known as Twitter, announced plans to introduce peer-to-peer (P2P) payments in 2024. This announcement followed comments from owner Elon Musk, who expressed his vision for X to manage users’ entire financial lives, suggesting that users wouldn’t need traditional bank accounts.
Revolut launched Mobile Wallets for cross-border payments
Revolut has introduced its Mobile Wallets service to facilitate quick and easy international money transfers. Currently available to UK and European customers for sending money to Bangladesh (via bKash) and Kenya (through M-Pesa), this service allows users to remit funds using only recipient IDs, such as names, phone numbers, or email addresses. Plans for expansion are expected in the future.