Welcome to Innovating Payments Top 3 News Headlines for the Week of Jan. 22, 2023. In this issue, we dive into the announcement that Early Warning Services will be launching a digital wallet. Also in this issue, CFPB proposes a rule to crack down on "take it or leave it" form contracts by nonbank providers. In addition, new survey results show businesses are looking for more fraud protections around incoming payments.
Read on to learn more.
- Big Banks to Launch Apple Pay Competitor in 2023 H2 (PYMNTS)
America's biggest banks are reportedly launching a digital wallet to take on Apple and PayPal.
The banks are developing a product that will let consumers make online purchases with a wallet tied to their Visa or Mastercard debit or credit cards, The Wall Street Journal reported Monday (Jan. 30).
The still-unnamed wallet will be managed by Early Warning Services (EWS), which also runs the money-transfer service Zelle, the report said. EWS tells the WSJ that the new wallet - due to arrive in the second half of the year - will function separately from Zelle.
Sources familiar with the matter told the WSJ one of the goals of the new wallet is to compete with third-party wallets like Apple's Apple Pay and PayPal as banks worry about losing their grip on customer relationships. Read more.
- CFPB Proposes Rule to Establish Public Registry of Terms and Conditions in Form Contracts That Claim to Waive or Limit Consumer Rights and Protections (CFPB)
The Consumer Financial Protection Bureau (CFPB) proposed a rule to establish a public registry of supervised nonbanks' terms and conditions in "take it or leave it" form contracts that claim to waive or limit consumer rights and protections, like bankruptcy rights, liability amounts, or complaint rights. In some cases, terms and conditions in non-negotiable form contracts mislead consumers into believing the terms or conditions are legally enforceable. Under the proposed rule, nonbanks subject to the CFPB's supervisory jurisdiction would need to submit information on terms and conditions in form contracts they use that seek to waive or limit individuals' rights and other legal protections. That information would be posted in a registry that will be open to the public, including to other consumer financial protection enforcers. Read more.
- 85% of CFOs Are Prioritizing Fraud Controls for Incoming Payments (PYMNTS)
New PYMNTS data shows that businesses' accounts receivable operations have been underfunded for fraud prevention.
Compared to their accounts payable counterparts, the investment deficit has created a gap - and risk - that needs to be closed.
This, according to findings in "The Overlooked Importance Of Securing Incoming Payments," a PYMNTS and nsKnox collaboration that is part of the B2B Payments Fraud Tracker® Series, which highlighted the need for action. Read more.
What impact will a big-bank-centric digital wallet have? How does it factor into your digital strategy? And how will fraud mitigation be prioritized for businesses in 2023? It's a lot to consider in this dynamic landscape.
Check back soon for our next issue, highlighting the industry's most pressing and 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.