In today’s top news, Wirecard files for insolvency, and New York proposes easing regulations for cryptocurrency licenses. Plus, California seeks a court order to make Uber and Lyft classify drivers as employees.
Wirecard, the embattled Germany payment services company, said Thursday (June 25) it was filing for insolvency. The decision comes less than a week after auditors disclosed $2.1 billion of supposed deposits were missing from two Philippines banks.
The New York State Department of Financial Services (DFS) has proposed a conditional licensing framework that promises to make it easier for cryptocurrency startups. Under the proposal, emerging companies that participate in the program can apply for a conditional license from DFS if they partner with an existing firm authorized by DFS to engage in virtual currency business activity.
In what could be the start of a protracted court fight, attorneys for the state of California plan to ask a judge to order Uber and Lyft to classify their ride-hailing drivers as employees rather than contractors. In response, Uber has said more than 158,000 Uber drivers in California would lose work if the reclassification happens.
Samsung Electronics Co. plans to offer a Samsung Pay Card that will operate like a digital wall for customers. For the launch, Samsung is linking up with Mastercard and FinTech Curve.
More than 10,000 financial institutions worldwide currently participate in open banking initiatives, but some 49 percent of customers don’t trust firms to keep their personal data secure. In the latest Preventing Financial Crimes Playbook, John Elliott, head of open banking at wealth management group Investec, discusses how FIs can protect customer data by ensuring information stays in the bank’s hands rather than going to less secure third-party providers.
Business continuity conversations are beginning to shift from business continuity to business resiliency — and treasurers need to have a strong voice at the table. Jennifer Barker, head of wholesale payments product delivery at J.P. Morgan Chase, tells Karen Webster what those conversations might look like as organizations establish liquidity and cash-flow management strategies to not only survive, but thrive.
As consumers seek out digital means of purchasing amid the COVID-19 pandemic, it appears likely that voice-assisted commerce will grow in popularity. Many consumers believe that buying things online is faster and more convenient, and they find it safer than going to a physical store and risking COVID-19 exposure.