July 2024: Top five payments stories of the month
July has witnessed a number of significant news stories in the payments sector, including notable hires, new partnerships, and rebranding initiatives.
Here, we run through five of the top payment stories of the month, featuring Merrco, Azqore, Paxos, and more.
Merrco Payments rebrands to KORT Payments with new managing team led by Paysafe founders
Merrco Payments to adopt new brand name
Merrco Payments in Canada is preparing to assume a new identity, with the transition to be led by a fresh management team.
The Toronto-headquartered fintech announced this week that it will now be recognised under the KORT Payments brand.
Founded in 2016, Merrco provides e-commerce and point-of-sale (POS) payment solutions for the cannabis industry. It later merged with fellow Canadian fintech Payfirma in 2018 for enhanced payment processing capabilities.
Merrco’s transition to the KORT Payments brand comes after it completed its latest capital raise in June for an undisclosed sum.
The “group of pioneers” who lent their “strategic investment” to the raise are to now be installed amongst a new team managing the rebranding efforts, according to a statement.
Paxos secures Singapore MPI licence and DBS Bank partnership for stablecoin issuance
Blockchain infrastructure platform Paxos is set to begin issuing stablecoins and other digital payment token services in Singapore after receiving a major payment institution (MPI) licence from the Monetary Authority of Singapore (MAS).
Singapore becomes the third market worldwide, after the USA and the UAE, where New York-headquartered Paxos is licenced to issue stablecoins.
Its latest approval comes just less than a year after MAS established a new regulatory framework for stablecoins, mandating key requirements for issuers including the maintenance of minimum base capital and liquid assets, five-day redemption timelines, and the provision of appropriate disclosures to users.
Paxos has selected DBS Bank – Southeast Asia’s largest bank by assets – as its primary banking partner for cash management and custody of stablecoin reserves.
Azqore selects Volante Technologies’ PaaS tech for SEPA instant payments
Azqore selects Volante for SEPA instant payments
Azqore, an IT and banking operations technology provider for private banks and wealth managers, has tapped US payments technology provider Volante Technologies to deliver modern SEPA instant payments and ISO 20022 messaging services for its customers.
The Switzerland-headquartered company is set to integrate Volante’s Payments-as-a-Service (PaaS) tech into its core banking infrastructure to help ensure compliance with the European Commission’s incoming SEPA instant payments mandate.
The cloud-native, API-driven solution allows for real-time payment processing with transaction confirmation in under 10 seconds, while also adhering to the fraud detection and sanctions screening requirements set out by SEPA.
Volante’s PaaS also supports ISO 20022 – a global standard for financial messaging which improves data quality and interoperability between different payment systems – building upon Azqore’s previous selection of Volante’s low-code ISO 20022 service in 2022.
CFPB proposes new rule to include payday advances under Truth in Lending Act
The US Consumer Financial Protection Bureau (CFPB) is proposing a new interpretive rule that would bring payday loan advances into the same scope of the Truth in Lending Act as consumer loans.
The amendment stipulates that the fees workers often pay to access their earned wages early must be accompanied by the appropriate consumer disclosures.
“Clear disclosures help borrowers understand and compare loan options, sharpens price competition, and ultimately benefits companies that offer competitive products,” the regulator says.
CFPB data suggests a significant increase in the number of workers in the US opting for payday loan advances, which are predominantly offered through either an employer-partnered or direct-to-consumer model.
Payments Canada concludes search for new CEO with Susan Hawkins appointment
Susan Hawkins, new Payments Canada president and CEO (Image: LinkedIn)
Payments Canada, which operates the country’s payment clearing and settlement system, has named serving board member and former TD Bank Group exec Susan Hawkins as its new CEO and president, effective 12 August 2024.
Hawkins’ appointment marks the conclusion of the company’s CEO search, initiated after Tracey Black announced her decision to step down from the roles of president and CEO in February after a four-year tenure.
Payments Canada has been co-led by chief financial officer Kristina Logue and chief delivery officer Jude Pinto in the interim. Both are now to return to their original positions upon the installation of Hawkins, who has served as a member of Payments Canada’s board since 2020.
Commenting on the incoming CEO, Garry Foster, chair of the Payments Canada board, states that Hawkins is an “expert in the industry” and that “her experience spans domestic and international retail and commercial payment leadership”.
