Top Payments News 2024: Technology, Fees, and Mega-Merger

The payments industry is changing fast! With new technologies like instant payment schemes, digital wallets, and virtual cards on the rise, money is moving quicker than ever before. The big players are making moves too: Fiserv is gunning for a bank charter, Capital One eyes a major acquisition of Discover, and Visa is in a tug of war with the Department of Justice over its debit-card-processing empire. Fraud and regulatory changes are also big concerns for this evolving industry. Curious to know which stories caught the eye of American Banker readers in 2024? Let’s dive in.

Capital One has set its sights on acquiring Discover in a whopping $35.3 billion deal that could reshape the credit card landscape. This potential merger would birth a credit card giant with its very own payment network, posing a challenge to industry titans like Visa and Mastercard. Although the deal is in its early stages, facing regulatory hurdles and investigations, it’s bound to shake things up if it goes through.

Fiserv, a key player in the payments game, applied for a special purpose bank charter in Georgia to level up its payment processing capabilities. This move, greenlit by the Georgia Department of Banking and Finance, would give Fiserv more control over card transactions from start to finish, a big deal in a rapidly changing market.

Lawmakers are turning up the heat on Visa and Mastercard over swipe fees, with Republicans especially vocal about the impact on small businesses and consumers. Legislation on the table could force big banks to offer retailers a choice between card networks, excluding the two giants. With potential shifts in government leadership, the outcome of this legislation and other antitrust battles remains uncertain.

Bank of America finds itself under the microscope for its anti-money laundering and sanction compliance efforts. Talks with regulators are ongoing, and the bank might face enforcement actions as a result. While it’s working on beefing up its oversight systems, the bank doesn’t expect these issues to cause major financial harm.

Visa is rolling out new digital features to blend the lines between credit and debit cards. With advancements like instant digital card provisioning and facial recognition for payments, users are in for a smoother and more secure checkout experience. These upgrades mark a significant step in Visa’s efforts to combat card fraud and enhance digital payments. Exciting times in the world of fintech!

2024 has been a year of change and innovation in the payments sector, and it’s clear that the industry won’t be slowing down anytime soon. Stay tuned for more updates as the payments landscape continues to evolve!