EMEA Daily: UK Could Revamp 50-Year-Old Credit Law

In today’s top stories from Europe, the Middle East and Africa, the U.K. looks at overhauling its decades-old Consumer Credit Act to reduce costs for businesses.

Also, TikTok’s live-shopping service loses a number of influencers in Britain, while rewards company Ascenda forms a partnership with Saudi bank BSF.

UK Pledges to Change 50-Year-Old Consumer Credit Law

The government of the United Kingdom has announced plans to overhaul the Consumer Credit Act, which regulates credit card purchases and personal loans.

“The Consumer Credit Act has been in place for almost 50 years — and it needs to be reformed to keep pace with the modern world,” Economic Secretary to the Treasury John Glen said in a statement. The proposed reforms would focus on reducing costs for businesses and simplifying consumer rules.

The government made the announcement just days after it launched a number of proposals designed to underpin its digital strategy. This week also saw the Bank of England raise interest rates to control high inflation.

TikTok Sees Exodus of Influencers From UK Shopping Service

British influencers have begun leaving TikTok’s live shopping service, saying they have put in too many hours for not enough pay.

Their departure is the latest sign that the video-streaming giant’s live shopping idea — which launched in the U.K last year — still hasn’t quite taken root across the globe.

“We are promised the world as creators and then told [we’re] not going to be getting that much,” Carolina Are, one of the influencers, told the Financial Times.

Ascenda, BSF Team to Offer Banking Rewards in Middle East

Payments and banking rewards provider Ascenda has teamed with Saudi Arabia’s Banque Saudi Fransi (BSF).

The collaboration will tap BSF’s JANA Rewards Program and is fueled by Ascenda’s TransferConnect network, which the two firms say is the world’s largest points exchange network. The partnership brings more than 50 live currency rewards partners to BSF’s JANA Rewards Program portfolio.

“The only global hub connecting banks and major merchants, TransferConnect is facilitating seamless rewards currency conversion for all of BSF’s retail customers,” the release said. “BSF is also leveraging Ascenda’s best-in-class customer engagement capabilities to deliver personalized financial solutions for its customers both at home and abroad.”

eGrocer Rohlik Raises $230M for Technology Innovation, Expansion

Czech grocery delivery startup Rohlik has raised 220 million euros (about $230 million) in a Series D funding round to bolster its improvements in technology.

The company says the funds will go toward such innovations as the automation of fulfillment centers and electric mobility. In addition, Rohlik says it will use the capital to further its expansion in its existing countries.

The funding round follows the startup’s 100-million-euro (about $105 million) Series C last July.

EBAs Report Includes Crypto, Payments and AML as 2022 Priorities

The European Banking Authority (EBA) has issued its Annual Report, detailing its activities and achievements in 2021 along with an overview of the chief priorities for this year.

Those priorities for 2022 include purely banking topics such as the review of the stress-testing framework for banks, but it also includes tackling recent EU legislation designed to fortify the resilience of IT systems in the financial sector.

In addition, the EBA wants to prepare itself for the regulatory and potential supervisory mandates of crypto assets, and also wants to assess the current legal framework for the digitalization of payment services and electronic money.

Africa’s Digital Future Beyond Mobile Money

It’s an exciting time for payments technology in Africa, with central banks and regulators working with the private sector to create a more streamlined, increasingly digitized payment ecosystem to meet consumer demand for faster and easier electronic payment options.

In an interview with PYMNTS, PayU South Africa CEO Karen Nadasen spoke about the growth potential of emerging markets in Africa, which she says ties to her company’s goal of bringing millions of Africans excluded from traditional banking into the financial fold. To do this effectively, Nadasen said proper partnerships are key.

“We do a lot of due diligence on the organizations that we partner with because the responsibility in payments lies with all the stakeholders in the national payment system,” she said.

Klarna’s Valuation Slashed by Two-Thirds

Klarna will attempt to raise funds at a substantially lower value than what it received last year, a sign of the bleak environment for tech funds.

The Swedish buy now, pay later (BNPL) firm’s new talks could lead to a deal that values the company at about $15 billion, down from its target last month of $1 billion at a $30 billion range valuation.

As The Wall Street Journal notes, economic conditions have been harsh for tech shares, with the companies that had flourished in spite of unprofitability now seeing investors prizing profit instead of growth.