Fintech Digest

JPMorgan Strengthens Its Presence in the iGaming Sector

Fintech Weekly | 24.10-30.10

Here’s what you might’ve missed during the last week of the month: JPMorgan strengthens its presence in the gaming sector, Europe and North America are not okay with new payment methods, PayPal ditches passwords, and FCA expands its authority.


  • JPMorgan strengthens its presence in the gaming sector
  • Europe and North America are not okay with new payment methods
  • Learning fraud is becoming more scientific 
  • Portugal's fintech sector demonstrates surprising results
  • Swift and MonetaGo collaborate to combat trade finance fraud
  • Investigation into Visa and Mastercard drags on
  • PayPal ditches passwords
  • FCA expands its authority
  • Musk's purchase of Twitter is paying off
  • JP Morgan rolled out a new payment method
  • Amazon introduced a new payment option
  • Singapore tightens grip on cryptocurrency
  • CFPB stands for open banking

JPMorgan Strengthens Its Presence in the iGaming Sector

JPMorgan Chase has invested in Sightline Payments, which provides payments services to the regulated gambling sector, according to a news statement issued by the two firms on Thursday. The investment was made by JP Morgan, the largest bank in the United States, through its payments division.

According to a news statement from the firms, Sightline and J.P. Morgan Payments will work together to create an integrated and multi-channel solution for resort and online igaming enterprises within the hospitality ecosystem. And this investment is part of JP Morgan's strategy, which will be implemented in the coming months.

It is still being determined how much money JPMorgan put into Sightline or the value of the bank's interest in the company.

Europe and North America Are Not Okay With New Payment Methods

Finextra spoke with Carl Slabicki, BNY Mellon's co-head of global payments, ahead of AFP 2022, about the newly issued research, 'What The Data Say', in collaboration with Aite-Novarica. It offers several intriguing findings, including why no single payment mechanism is capturing the market, and we shall now discuss it.

While newer developing electronic payment mechanisms are expanding, older payment instruments such as cheques and even cash remain reliable. This is due to several reasons:

#1 The rate of introduction of new channels in specific markets varies (Europe and North America markets are considered). For example, all commercial banks have historically utilized a combination of payment methods to transact with their partners and suppliers, and integrating a new form of payment cannot be done as successfully as the method itself.

#2 Older legacy payment solutions often provide a high degree of functionality, have high acceptance rates, and are already linked into payment workflows and payables procedures.

There will be no payment mechanism that will sweep the market

#1 Regulator pressure rises. Many risk mitigation and anti-fraud tools are applied to the old payment methods, while precautions for the new methods are just evolving, and regulatory pressure is rising.

#2 Competition rises. Competition is what drives innovation. We are seeing more and more players joining the competitive landscape. We also see retailers and merchants focus on a particular region because they have a well-known brand or a robust infrastructure that can reach a large number of the companies that they serve. This also implies that there will be greater prospects for collaboration. Actually, there is so much going on in this sector that the actual problem is prioritizing.

#3 Inventors outdo themselves. There’s a lot happening within instant schemes, digital wallets and card rails that continue to reinvent themselves. The key is to have specialists on the ground who know the business well and out, have a pulse on what's going on in the sector, and can prioritize what you want to achieve. If you're going to accomplish anything, you should go all in and do it properly.

#4 Checks are still popular (at least in North America). Outdated payment methods, such as checks, are still widely used in some markets. It's like a market-driven part of the culture, which means we’ll have to support those traditional payment methods  until the value proposition becomes compelling enough for businesses or consumers to shift their behavior.

Learning Fraud Is Becoming More Scientific

The Euro Banking Association (EBA) has made available their payment fraud taxonomy in order to tackle the mounting dangers to the European payments system.

The taxonomy was created by an expert committee of the European Banking Authority. It is intended to give a simplified and easy framework to define fraud situations relating to all types of payments, including card transactions.

The objective is that banks would utilize the taxonomy to build some standard nomenclature around payment fraud, making it easier for them to exchange data and insight. This information may then be utilized to educate customers and, eventually, prevent fraud in Europe's payments sector.

Background info: The taxonomy was published a few days after the European Commission declared that it would make rapid payments available to all EU and EEA nations in order to improve customer convenience, enhance cash flow, and challenge Visa and Mastercard's dominance in the payments sector.

Portugal’s Fintech Sector Demonstrates Surprising Results

Funding for Portuguese fintechs has crossed the €1bn threshold for the first time. To date, fintechs have raised a total of €1.08 billion.

Blockchain and cryptocurrency-based companies have dominated fundraising, accounting for 76% of total capital raised.

Uphold, a digital asset trading startup, raised €30.6 million in the previous year, by far the largest deal.

The fintech sector is similarly centered in Lisbon, Portugal's capital city, where 55% of enterprises are located, followed by Porto with 16%.

According to the research, multinational investors supply nearly half of the capital (48%).

Swift and MonetaGo Collaborate to Combat Trade Finance Fraud

Swift has partnered with vendor MonetaGo to create a service that validates trade financing for its 11,000+ users.

The solution Secure Funding from MonetaGo claims to avoid duplication of funding in near real-time. The system works as follows: first, a hashing algorithm is used to create digital fingerprints of documents used in trade finance. These fingerprints are then registered in a global hash registry that serves as a secure unified repository.

If one lender registers a document, the system will flag all subsequent files as duplicates.

Twenty institutions from four continents have tested the project. The technology is already available to banks throughout the Swift network via an API channel.

Investigation Into Visa and Mastercard Drags On

Businesses may have to wait another two years before the issue regarding Mastercard and Visa card fees is closed, according to the Payment Systems Regulator. The watchdog has initiated two market investigations into card fees and post-Brexit interchange charges imposed by card systems on UK merchants.

An earlier audit of card-acquiring services revealed that between 2014 and 2018, scheme and processing fees had skyrocketed. The regulator is presently conducting a more thorough investigation of the levels, structure, and types of schemes and processing fees.

A report with interim findings will be published in the Q4 of 2023, and the ultimate report, which includes remedial actions, will be published in the Q2 of 2024.

PayPal Ditches Passwords

PayPal is phasing out passwords. The largest electronic debit payment system has allowed Apple users to log into their accounts using a new industry standard passkey.

The passkey replaces passwords with cryptographic keys: a public key stored in the cloud and a private key stored on the user’s device. It was created by the Fido Alliance and the World Wide Web Consortium. 

To create a key, PayPal clients must sign in to their account with a browser on desktop or mobile web. After that, clients will also need to authenticate using Apple Face ID or Touch ID. When both of these procedures are successfully completed, a password will be generated automatically. The next time the customer signs in, they will not need to use or manage the password.

Passkeys are much simpler and more secure than passwords, PayPal says.

When the feature will be rolled out on Android devices is unknown.

FCA Expands Its Authority

The Financial Conduct Authority (FCA) has said it will also crack down on "green fraud," among other things. The financial services regulator revealed a slew of new measures that regulate the labeling of investment products as sustainable and prohibit the use of terms such as "ESG," "green", or "sustainable”.

Thus, the FCA wants to ensure that products meet the sustainability characteristics they claim and won't be misleading to consumers.

Three categories of certified "sustainability" labels for investment products and one general anti-greenwashing rule were introduced. According to them, British funds and portfolio managers are expected to apply first for advice on these proposals; admissions are open until January 25, 2023. The final guidelines will be released by the end of the first half of 2023, and are expected to apply to overseas products as well.

Musk’s Purchase of Twitter Is Paying Off

The Dogecoin cryptocurrency went up 35% on the back of Ilon Musk's deal to buy Twitter. This surge was recorded on the 5th day after the news of the deal's completion started circulating on the Internet.

The token's value frequently fluctuates after Tesla CEO Elon Musk makes contentious public remarks. For example, Dodge surged 10% in 24 hours right after SpaceX CEO changed his Twitter bio to Chief of Twit. 

Similarly, when Musk originally proposed introducing Dogecoin as a means to pay for a Twitter membership in April, the token's value skyrocketed. In June, there was also a sell-off when Musk attempted to back out of buying the social network.

The growth of Doge may also be related to the rumors about the creation of Twitter's own cryptocurrency wallet.

JP Morgan Rolled Out a New Payment Method

JP Morgan is now offering a Meta Pay checkout option. All retailers in its payment network will now be able to offer the Meta Pay payment option to their customers.

According to a Meta spokeswoman, the firm has ambitious aspirations for payments and financial services due to the bank's extensive merchant network. And as a result of the Web 3.0. expansion, many more individuals will be able to use Meta Pay to shop on their favorite websites seamlessly.

Among other things, JP Morgan promises easy setup, high security, and fast checkout — all of this with no additional cost to the business.

Amazon Introduced a New Payment Option

Amazon is adding Venmo as a payment option. This payment method is available to U.S. customers starting Oct. 26.

PayPal's Venmo will be offered as a payment option for checkout on Amazon's website and in the app. So Venmo is getting into e-commerce working with companies like Shopify, moving beyond its core P2P payments business.

To make a payment from Venmo, users need to register an account in the service of the payment system and link it to a personal account on the trading platform.

For those who are not aware: what is Venmo? 

It is a simple and compact mobile wallet, launched back in 2009. The app quickly grew into a full-fledged payment system, whose partners include such companies as Uber and CVS.

Singapore Tightens Grip on Cryptocurrency 

MAS has issued two consultation papers recommending stringent regulatory measures to mitigate the danger of cryptocurrency trading for consumers while also encouraging the development of stablecoins as a genuine medium of exchange.

The Central Bank of Singapore describes cryptocurrency trading as high-risk and not suitable for the general public. At the same time, it admits that cryptocurrencies are only a part of a broader ecosystem of digital assets, and it is simply impossible to ban them.

To prevent "accidental use of cryptocurrencies by consumers", the Bank proposes the following requirements for digital payment token (DPT) service providers:

  • Testing customers for knowledge of cryptocurrency risks; 
  • Prohibit retail customers to borrow money or accept credit card payments in order to purchase crypto;
  • Prohibit the use of incentives such as free tokens, gifts, or celebrity endorsements.

Firms will also be required to segregate consumer funds from their own assets, implement explicit risk management measures, and publish their token selection and listing rules and processes.

CFPB Stands for Open Banking

The CFPB's Rohit Chopra disclosed when the updated guidelines aimed to make it simpler for consumers to break up with their banks would go into effect.

The "open banking" and "open finance" rules will move forward this week. They are anticipated to boost competition in the financial industry by compelling financial companies to supply consumers with their own data.

The main advantage of these changes for customers of financial institutions is that when they change their card operator or bank, they no longer have to make a new record of their financial history. In addition, this will make it easier to pay taxes and disputes with merchants or insurers.

The CFPB will release a discussion guide for businesses to weigh in on this proposed rule. The bureau will hear from small financial institutions, as well as data brokers later this year.