05 February 2016
Below are our top reads from the last seven days of industry news*. Every Friday we'll publish our picks from industry developments, stories and announcements right here so you can keep you up to date with what's happening in payments here and overseas.
If you'd like to have our top reads emailed to you every Friday, let us know by emailing firstname.lastname@example.org
Stress tests for banks in the US
The Federal Reserve is about to conduct its annual stress tests on 33 large banks, including Bank of America Corp. and JPMorgan Chase & Co. The tests will determine how well the banks would withstand a severe global recession, a doubling of the U.S. unemployment rate to 10 percent and moderate deflation. The central bank will announce the results before the end of June.
In local news…
Paymark have been in the news a few times over the past week with an Eftpos outage, a strategic business review and a call for the RBNZ to acquire the electronic payments processor.
When is your payment actually received?
A lot of people wonder why payments sometimes appear within an hour and sometimes not until the next day. With the help of NZBA, the Reserve Bank and Payments NZ, Fairfax has put together a few insights into where your money goes when it leaves your account (and who is earning the interest off it in the meantime).
Digital currencies for everyone?
The People's Bank of China is among other central banks seriously thinking about issuing digital currency. It seems as though digital currencies would benefit all involved, helping inflation and GDP, while traceable transactions could help inhibit terrorist financing, money laundering, fraud, tax evasion and corruption. But digital legal tender isn't without risk, either.
What’s the latest with Bitcoin?
It has become clear that we aren’t seeing very rapid adoption of Bitcoin as a currency and payment system for end consumers. But one of the world’s leading central banks is working on (early stage) research about a government sponsored digital currency (see above). It’s an exciting time for financial technology innovation. All that said, New Hampshire in the US has turned down a bill to “develop an implementation plan for the state to accept bitcoin as payment for taxes and fees.”
PayPal boosted by mobile payments
PayPal’s acquisition of Zoom and other mobile payments platforms has seen its Q4 performance sky rocket more than 20% as well as the addition of 1.6 million active customer accounts to the PayPal platform. The overall volume of payments carried by PayPal increased dramatically by 29 per cent, year-on year, to $82 billion and adoption of mobile payments has played a significant role in this growth.
*These articles cover a range of topics from broad payments industry news here and overseas. They do not represent the views of Payments NZ and are not endorsements.