Payments
FedNow advances over hurdles
The Federal Reserve's FedNow instant payment system has made significant progress three years after its launch: the number of settled payments jumped 85% quarter-over-quarter in the second quarter, with 1,800 institutions connected, covering about half of U.S. savings and checking accounts. Although the U.S. still lags behind countries like India and Brazil in real-time payments, industry experts believe it has moved past its lagging phase. However, the system still faces challenges in sender-side participation, cross-bank penetration, and federal agency adoption.
Cash App triggers $45M settlement
On July 8, Block agreed to pay $45 million to settle with 46 states over allegations that Cash App misled consumers about its security and fraud protection. The settlement requires Block to improve customer support processes and ensure availability of phone and online chat services.
Fiserv President Suryadevara Departs, Company Appoints Interim Co-Leaders
Payment processor Fiserv disclosed in a filing with the U.S. Securities and Exchange Commission that President Dhivya Suryadevara resigned on Tuesday but will remain until the end of the month to ensure a smooth transition of responsibilities. The company has appointed Andrew Gelb and Srini Krish to temporarily co-lead the financial solutions business.
Klarna applies for U.S. industrial bank license, accelerating financial expansion
Klarna has submitted an industrial bank (ILC) charter application to the U.S. Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions, planning to internalize its banking operations. The company currently relies on partner institutions like WebBank in the U.S. to provide BNPL services, and this move is seen as a key step in deepening its U.S. market presence.