EMEA Daily: EU Consumer Advocates Seek Rights to Sue Big Tech; Flywire, Adapt IT Digitize Education Payments

In today’s top Europe, Middle East, and Africa news, a coalition has asked EU lawmakers for changes in the Digital Markets Act to allow consumers to sue tech giants for law violations, while global payments platform Flywire Corporation has collaborated with Adapt IT Education to digitize cross-border education payments for South African students.

Plus, Nigerian B2B marketplace TradeDepot acquired Ghana-based competitor Green Lion, Revolut has launched a feature for its travel product that lets customers book their stay and pay when they arrive, and Berlin FinTech Forget Finance raised 3.5 million euros ($3.96 million) in seed funding.

EU Consumer Advocates Seek Expansion of Legal Rights to Sue Big Tech

A coalition of 31 groups and academics have asked EU lawmakers for changes in the Digital Markets Act (DMA) to allow individual users to sue U.S. tech giants for violations of EU law.

The DMA is a law that establishes a list of activities that digital platforms exceeding certain revenue and user thresholds must comply with, or that they must restrain from doing.

Flywire, Adapt IT Digitize International Education Payments in South Africa

Global payments platform Flywire Corporation on Wednesday (Feb. 23) integrated with Adapt IT Education, a division of Adapt IT Holdings Limited, to digitize cross-border education payments for students in South Africa, according to a joint announcement.

More than 45,000 international students study in South Africa each academic year across its 26 public universities and 50 TVET colleges, according to study abroad consulting firm StudyLink.

TradeDepot Targets Growth in Ghana with Green Lion Acquisition

Nigerian B2B marketplace TradeDepot acquired Ghana-based competitor Green Lion for an undisclosed amount as part of a plan to expand into that neighboring African nation, according to a Wednesday (Feb. 23) Yahoo Finance report.

Green Lion develops FinTech solutions that allow traders to access financing and stock monitoring through its digital ledger, Wysr. The company has made almost 30,000 transactions with 4,404 customers in four cities across Ghana.

Revolut Lets Users Book Trips Now, Pay Later

Financial super app Revolut has launched a new tool for its travel product Stays that lets customers book their stay and pay when they arrive, the company announced.

Revolut Stays lets customers in the United Kingdom and the European Economic Area make a reservation with the app and choose to pay when they arrive for their stay with their Revolut card or pay upfront using the app at the time of booking.

IMF Warns Nigeria’s CBDC Poses Money Laundering Risks

The organization founded to foster monetary cooperation worldwide has warned Nigeria that its central bank digital currency (CBDC) is a money laundering risk.

The caution, issued by the International Monetary Fund (IMF) to the Central Bank of Nigeria about Naira, the government- issued CBDC, comes after saying it was safer than bitcoin and other cryptocurrencies.

In a statement published this month, the IMF said using the eNaira for cross-border payments carries the risk of financing terrorism and money laundering.

Berlin FinTech Forget Finance Raises 3.5M Euros

Berlin personal finance FinTech Forget Finance raised 3.5 million euros ($3.96 million) in seed funding led by venture capital firms btov Partners and UVC Partners, the startup announced.

Launched two years ago by Jurek Herwig and Konradin Breyer, Forget Finance is striving to become the first finance app that taps artificial intelligence (AI) bots and in-real-life financial experts to encourage younger generations to save and invest.

EU Official: Apple Choosing Fines Over Compliance

Big Tech companies like Apple are choosing to pay fines in lieu of complying with regulations they don’t agree with, the European Union’s lead antitrust official said Tuesday (Feb. 22).

“Some gatekeepers may be tempted to play for time or try to circumvent the rules,” said Margrethe Vestager, the European Commission’s vice president and digital chief, speaking at a U.S. awards ceremony. “Apple’s conduct in the Netherlands these days may be an example.”

Nigeria Seeks $1.7B From JP Morgan Over ‘Gross Negligence’

Nigeria said JPMorgan was “grossly negligent” in transferring funds to the country’s disgraced former oil minister and is suing the firm for $1.7 billion.

The claim stems from a 2011 oil deal. The trial is the result of a suit filed in 2017, which relates to Shell and Eni’s purchase of the OPL 245 oilfield in Nigeria. The country is seeking damages of $875 million, as well as interest, which brings the total to $1.7 billion.

UK Digital Bank Zopa Introduces Hybrid Savings

Digital bank Zopa is introducing a hybrid savings account with multiple stash “pots” and the opportunity for boosted interest rates based on length of deposit time and withdrawal notice.

The Zopa Smart Saver account offers a rate of return of 0.72% for immediate access to savings, the London-based challenger bank said. Customers can earn higher interest rates by opting to “boost” their rate up to 1.05%

German Virtual Bank Penta Aims for $500M Valuation

German digital business banking platform Penta is speaking with potential investors as it seeks a valuation of between $453 million and $567 million (400 million to 500 million euros).

Sources said Penta, which provides small businesses with bank accounts and other financial services, has begun its third funding round with the goal of making it halfway to the $1 billion mark.

EU Looks to Give AML Watchdog Crypto Oversight

A member of the European Parliament from Spain says the cryptocurrency sector is vulnerable to money laundering and must be monitored, CryptoBriefing.com reported.

Luis Garicano, a member of the Alliance of Liberals and Democrats for Europe party, said it is essential the European Union’s new watchdog monitor digital assets because crypto “is one of the fields more prone to money laundering activities.”

Portugal’s Securities Regulator Vows Crypto Rules

Portugal’s securities and financial instruments regulator said it’s time to adopt rules for crypto assets, according to BrytfmOnline.com.

Gabriel Bernardino, chairman of the Securities Market Commission (CMVM), told reporters Monday (Feb. 21) that cryptocurrency is not regulated in Portugal. As a result, he said, not much can be done to supervise the growing currency. “It’s important” that this changes, he added.

API Firm Empowers African FinTechs to Scale

Open banking initiatives have given consumers in many countries access to new financial products and services. But across African nations, a lack of data sharing and open banking limit the ability for innovative FinTechs to bring their services to more people across borders.

Kiaan Pillay, CEO and co-founder of South Africa-based API FinTech startup Stitch, saw many of the challenges FinTechs dealt with firsthand when it came to navigating outdated financial infrastructure across the continent. That led to the creation of Stitch in February 2021 to make it easier for businesses to build and scale innovative FinTech products.