Welcome to NEACH's Innovating Payments Top 3 News Headlines. In this issue, we learn that a major retailer may be venturing into the cryptocurrency and nonfungible tokens (NFTs) market. According to CNBC, Walmart filed a slew of new trademark applications at the end of last year, including one for "providing a digital currency and a digital token of value for use by members on an online community via a global computer network." In total, Walmart filed seven applications.
In other news, the Federal Deposit Insurance Corporation (FDIC) and the Financial Crimes Enforcement Network (FinCEN) announced a Tech Sprint to help financial institutions and regulators measure the effectiveness of digital identify proofing to increase security and reduce identity-related crime. We conclude with PYMNTs.com's take on how COVID has changed our payments needs and why real-time payments is one of the key trends defining the consumer payments landscape.
Read on to learn more.
1. Walmart is quietly preparing to enter the metaverse (CNBC)
Walmart appears to be venturing into the metaverse with plans to create its own cryptocurrency and collection of nonfungible tokens, or NFTs. Last month, the big-box retailer filed several new trademarks that indicate its intent to make and sell virtual goods, including electronics, home decorations, toys, sporting goods, and personal care products. In a separate filing, the company said it would offer users a virtual currency, as well as NFTs. Read more.
2. FDIC and FinCEN Launch Digital Identity Tech Sprint (FinCEN)
The Federal Deposit Insurance Corporation (FDIC) and the Financial Crimes Enforcement Network (FinCEN) today announced a Tech Sprint to develop solutions for financial institutions and regulators to help measure the effectiveness of digital identity proofing-the process used to collect, validate, and verify information about a person. Through the Tech Sprint, FDIC's tech lab (FDITECH) and FinCEN seek to increase efficiency and account security; reduce fraud and other forms of identity-related crime, money laundering, and terrorist financing; and foster customer confidence in the digital banking environment. Read more.
3. Sea Change: How COVID Has Changed Our Payment Needs (PYMNTS.com)
Consumers' payment needs have experienced a sea change in the past two years, with many people realizing access to real-time payments is something they didn't know they needed. Homeowners want their mortgage payments to clear as soon as they click "send," while workers like not having to wait for their paychecks to become available in their bank accounts. Real-time payment options mean consumers' money is available for spending as soon as funds are sent to them and have become one of the key trends defining the consumer payments landscape. Read more.
What do you know about cryptocurrencies and their potential impact on your financial institution and its customers? With the need for digital identity proofing growing, what steps are your financial institution taking to secure your process? COVID has reshaped our payments needs, and interest in real-time payments is at an all-time high. How is your FI planning to meet shifting customer needs?
Check back soon for our next issue, which will highlight the industry's most need-to-know developments. Until then, visit us online at Innovating Payments.
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.