In today’s major stories from Europe, the Middle East and Africa, the European Union is preparing new Buy Now, Pay Later (BNPL) rules that would reduce their transparency requirements.
In addition, the Bank of England distributes a bulletin to lenders on their plans for bank failure, and Moroccan Chari acquires the Diago retail application.
EU Council Amendments to Consumer Credit Bill Favor BNPL Suppliers
The Council of the EU has agreed to revise the Consumer Credit Directive (CDD), with new rules that could reduce transparency requirements for BNPL providers.
The existing CCD, introduced in 2008, covers most consumer loans, ranging from €200 to €75,000 in value.
However, loans below €200 fall outside its scope, which means that most BNPL loans are not covered by the existing rules. The proposed amendment would change this by including BNPL schemes, payday loans, short-term overdrafts, interest-free credits and loans provided by crowdlending platforms.
BOE: UK banks must show they can ‘safely’ fail
Three of the UK’s biggest lenders still have work to do to prove they could fail without harming customers and taxpayers, the Bank of England (BOE) has announced.
The BOE carried out an assessment to determine whether HSBC, Lloyds Banking Group and Standard Chartered had made the right preparations to manage their – theoretical – collapse.
The regulator made it clear that while there were many areas where lenders could improve, they could potentially fail while “staying open and continuing to provide vital banking services to the economy”.
Moroccan Chari buys the Diago application
Moroccan B2B e-commerce platform Chari has purchased Diago, a retail app headquartered in Ivory Coast.
The all-stock deal will retain Diago founders Amidou Diarra and Ali Ouattara as the company’s managing director and CEO, with the founders overseeing the growth of local businesses before branching out into other sub-Saharan African countries. .
“The entire Diago team will benefit from all of Chari’s support functions,” said Cyrille Jacques, Vice President of Chari, who leads the company’s international expansion. “Chari’s back office in Casablanca will help the Diago team in setting up operations, IT tools and customer service.
UK Government Pushes for Crypto Sandbox and Stablecoin Regulation
In a bid to become a global “crypto hub”, the UK is gearing up to start testing crypto-blockchain technology in financial market activities like trading and settlement.
The country’s Department of Finance said the UK is taking a number of steps to promote the use of blockchain and crypto assets, and creating a friendly regulatory environment to attract investors.
Gwyneth Nurse, the department’s chief financial services officer, said the use of distributed ledger technology (DLT), the underlying technology used by crypto assets, is a critical priority for innovation in financial markets. . This is why the UK is set to launch a regulatory sandbox in 2023 to test DLT projects.
CEO of MFS Africa: Prepaid Cards Open a World of Online Payments to Millions in Africa
The ability to make transparent international payments varies from place to place, an imbalance that payment company MFS Africa wants to correct.
Speaking to PYMNTS, Founder and CEO of MFS Africa, Dare Okoudjou, said that one of the ways his company is trying to solve the problem is by acquiring US FinTech Global Technology Partners (GTP) to provide access to global companies like Netflix and Amazon which millions in Africa lack the card credentials to transact online.
The deal will allow consumers and merchants in the region who store money on mobile phones or digital wallets to get a prepaid virtual card to make seamless card payments to these global businesses that have eluded them until now. ‘now.
FLEETCOR acquires British group Global Reach, provider of cross-border payments
Global merchant payments company FLEETCOR Technologies to acquire Global Reach Group, a UK-based cross-border payments provider
FLEETCOR says the deal will help it boost its cross-border payments capabilities, with the sale expected to close in the fourth quarter of the year.
“Global Reach is a fantastic addition to our existing cross-border operations that can be quickly integrated into our global operations,” said Ron Clarke, President and CEO of FLEETCOR. “We expect the deal to be immediately accretive after closing with additional synergies to be added in year two.”