What The FinTech #163 - 8 Jan 2024
HONG KONG
Hong Kong proposes rules to license Stablecoin issuers
The authorities in Hong Kong are exploring regulating stablecoins, as the latest consultation paper proposed the regulation of fiat-referenced stablecoins (FRS). If the proposed rules are implemented, stablecoin issuers in Hong Kong must obtain a local license. The authorities will accept feedback on the proposed regulations until 29 February 2024. The paper elaborated that the necessity for such regulations arrived after the collapse of TerraUSD, an algorithmic stablecoin, last year. Hong Kong’s proposed rules will not license the stablecoins. With the implementation of the licensing regime for VA trading platforms from June this year, the legislative proposal to regulate FRS is another important measure facilitating Web3 ecosystem development in Hong Kong.
Read Article : Hong Kong Proposes Rules to License Stablecoin Issuers (financemagnates.com)
MTR &Visa bring ePayment service to Hong Kong’s railway stations
MTR Corporation has announced the launch of contactless bank card payment for MTR rides in phases starting on December 23, 2023. Passengers will be able to use this new service initially with Visa at designated gates, while additional bank cards will be accepted for payment in the third quarter of 2024. The new e-payment option will bring greater convenience to local passengers and travellers. Starting December 23, passengers can tap their contactless credit card or debit card or devices such as smartphones and smartwatches with payment enabled at the credit card readers on the light blue gates. The number of entry and exit gates providing the new payment function will also be gradually increased.
Read Article: MTR & Visa bring ePayment service to Hong Kong’s railway stations (ibsintelligence.com)
Mox redefines savings by becoming the first Hong Kong Bank to offer instant Asia miles with time deposit
Mox Bank Limited (“Mox”) announced that customers can now earn Asia Miles instantly upon placing a Time Deposit without waiting until maturity. Mox is the first and only bank in Hong Kong to offer such a reward, allowing customers to use Asia Miles immediately to redeem their flights and lifestyle rewards. With the industry’s first instant Asia Miles rewards, when Mox customers place a 24-month Time Deposit with Mox, they can earn 375,000 Asia Miles instantly for every HKD500,000, which is eligible for redeeming 5 business class round-trip tickets to Tokyo or 2 business class round-trip tickets to London. Customers can also place up to 5 Time Deposits³ to earn Asia Miles instantly. With the instant Asia Miles earned upon placing a Time Deposit, customers can also enjoy the below benefits: Flexibility – Customers can place a Time Deposit and instantly earn the exact amount of Asia Miles they are still missing for their next trip; Doubling rewards generally earned from Time Deposits – For example, they can receive 25,000 Asia Miles instantly for placing a 6-month Time Deposit of HKD125,000 New Funds. This is equivalent to the amount of Asia Miles required to redeem a round-trip economy class ticket to Tokyo⁴, which is close to doubled the value⁵ as compared to the interest of a 6-month Time Deposit at 4.5% p.a.
Read Article: Mox Redefines Savings by Becoming the First Hong Kong Bank to Offer Instant Asia Miles with Time Deposit - Fintech Finance (ffnews.com)
SINGAPORE
Singapore’s Farro unviels regional headquarters in DIFC to drive global expansion
Farro Ventures, the parent company of Singapore-headquartered multi-family office Farro Capital and international mobility solutions provider Farro & Co., is expanding its footprint into the Middle East. Leveraging Dubai’s regional strength as a financial hub, this builds on the firm’s commitment to enhancing its cross-border advisory platform capabilities to serve the unique needs of ultra-high-net-worth (UHNW) families. Farro Capital’s new office, located in Dubai International Financial Centre (DIFC), will offer access to a comprehensive range of wealth management solutions spanning investment management, philanthropy advisory, estate planning, family governance & succession, and more.
Read Article: Singapore’s Farro unviels regional headquarters in Dubai (ibsintelligence.com)
Union Gas signs MOU to develop EV charging infrastructure in Singapore, Japan and Southeast Asia
Fuel products provider Union Gas Holdings 1F2 has announced a memorandum of understanding (MOU) with Deltrix Limited to accelerate and strengthen the development of electric vehicle (EV) charging infrastructure across Singapore, Japan and the Southeast Asia region. The MOU expresses the intention of Union Gas and Deltrix to co-operate on areas including EV charging infrastructure and systems development in the target markets. The partnership will enhance knowledge sharing and enable both companies to tap on each other’s capabilities, resources and networks to capture the market for EV charging solutions. Deltrix will bring to the table its expertise in developing such infrastructure while Union Gas will contribute its extensive customer base and network that have been established through more than 40 years of supplying energy products.
Read Article: Union Gas signs MOU to develop EV charging infrastructure in Singapore, Japan and Southeast Asia (theedgesingapore.com)
CHINA
Zil Money allows Chinese business owners to make US payments easily
Zil Money, a leading SaaS payment platform, has announced that its cloud banking service enables Chinese entrepreneurs to make cross-border transactions with US vendors, businesses, employees, and partners without geographical barriers. Chinese entrepreneurs can open US payment accounts without being physically present in the United States. This feature helps Chinese businesses overcome traditional banking limitations, making global business growth and opportunities more efficient and affordable. Zil Money’s cloud banking service simplifies managing multiple business accounts, ensuring a smooth financial experience. Users can easily transfer funds between ZilBank accounts, and the platform provides additional features like virtual cards, international payments, bulk payments, get paid early, physical cards, and more.
Read Article: Zil Money Allows Chinese Business Owners to make US Payments Easily - Technology Today - EIN Presswire (einnews.com)
Baidu says its ChatGPT rival Ernie bot now has more than 100 million users
Chinese tech company Baidu said its ChatGPT-like artificial intelligence product, Ernie bot, has surpassed 100 million users. Baidu shares closed 3% higher in U.S. trading, keeping the stock mildly higher for 2023. The company did not specify whether the Ernie bot user numbers were active or for a specific time period. Ernie bot, which can be used in English in addition to its primary language of Chinese, requires a China mobile number for user registration. The app is called ―Wenxinyiyan‖ in Mandarin Chinese.
Read more: Baidu says its ChatGPT rival Ernie bot has more than 100 million users (cnbc.com)
AI boom fails to propel China’s cloud market growth
Training AI models on the cloud, following a surge of interest in the potential of ChatGPT-like services, has been expected to drive the industry‘s growth. Alibaba‘s cloud business, with the country‘s largest market share at 39%, reported just 2% year-onyear revenue growth in the quarter ended Sept. 30. The tech giant in November also scrapped plans to publicly list its cloud operations. Huawei, which isn‘t publicly traded and is the second largest cloud player, didn‘t separately state its cloud revenue for the third quarter, nor did Hong Kong-listed Tencent The three largest cloud players in China held the same market share in the third quarter as they did in the prior one, while the segment‘s overall growth slowed to 10% in 2022 and is expected to be at 12% in 2023 — sharply lower than the 45% surge in 2021. Domestic spending on cloud services grew by 18% year-on-year in the third quarter to $9.2 billion. However, it slowed drastically to 5.7% from 13% in the second quarter. The mainland Chinese cloud market accounted for 12% of the global cloud spend in the third quarter. Third-quarter global cloud spending rose 1.5% from the previous quarter.
Read more: AI boom fails to propel China's cloud market growth (cnbc.com)
ASIA
7 major credit card launches in December 2023 in APAC
FIRST SWYP Credit Card for GenZ by IDFC FIRST Bank & Mastercard: IDFC FIRST Bank has expanded its credit card offering for the youth, or Gen Z, with the introduction of the FIRST SWYP Credit Card. This launch extends IDFC FIRST Bank’s offering coverage across Millennials and Gen Zs, intensifying their focus on addressing the demands of new-age customers and blending benefits across their preferred categories of spending and talk-worthy offers and propositions. HDBank JCB Ultimate Credit Card by HDBank & JCB: Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), a commercial bank in Vietnam, and JCB International (JCB) have announced the launch of the HDBank JCB Ultimate Credit Card and the acceptance of JCB Cards in Vietnam. The partnership with HDBank will further enhance the acceptance of JCB cards at merchants across Vietnam, benefiting JCB cardmembers visiting the region as well as local JCB cardmembers. Biometric Metal card by Eastern Bank PLC and IDEX Biometrics: Eastern Bank PLC. (EBL) of Bangladesh, offering corporate, retail, and SME banking solutions, has launched a biometric metal card powered by the IDEX Biometrics Mastercard certified technology, IDEX Pay. The biometric metal card offers a level of security and a seamless payment experience for customers seeking distinctive and exclusive payment solutions that align with their dynamic and tech-savvy lifestyles. This solution is expected to increase card usage among their existing premium customer base. Ocean Plastic Card by Trust Bank & Thales: Trust Bank Singapore (Trust) has partnered with Thales to offer its customers sustainable credit and debit cards made from recycled ocean plastic. Trust supports sustainable innovations in the banking sector by offering an environmentally friendly alternative to traditional plastic cards. To minimise its impact on the environment, Trust is collaborating with Thales to offer the first Ocean Plastic payment card in Singapore to its customers. ‘eSvarna’, a Corporate Credit Card by Induslnd Bank: IndusInd Bank has announced the launch of ‘IndusInd Bank eSvarna’, India’s corporate credit card on the RuPay network. The card facilitates smooth transactions at merchant outlets and allows users the flexibility to make UPI payments by linking the card with UPI-enabled apps. The IndusInd Bank eSvarna credit card on the RuPay network comes with an array of exclusive perks and rewards. Privilege Credit Card by Axis Bank and American Express: Axis Bank has announced its strategic partnership with American Express with the launch of the Axis Bank Privilege Credit Card on the American Express network. With this partnership, Axis Bank customers can enjoy the local and global benefits of the American Express network. The Axis Bank Privilege Credit Card on the American Express network is packed with a host of benefits, such as an activation benefit worth INR 5,000 and two complimentary domestic lounges per calendar quarter. One Nation Corporate Card by PayCraft, NSDL Payments Bank and NPCI: PayCraft has launched the One Nation Corporate Card in partnership with NSDL Payments Bank and the National Payments Corporation of India (NPCI). This card, built on an indigenously developed multi-wallet platform with transit issuance and processing capability, serves as an employee tax benefit instrument. It also comes with a corporate expense management platform for the employer to manage their expenses digitally.
Read Article: 7 Major Credit Card launches in December 2023 in APAC (ibsintelligence.com)
Vietnam banks adjust SMS banking fees, encourage switch to apps for notifications
Some banks have announced adjustments to SMS banking fees starting from the beginning of 2024 and encouraged customers to switch to digital banking apps to get notifications for free. Starting from 2024, the Bank for Foreign Trade of Vietnam (Vietcombank) is charging 10,000 VND per phone number for less than 20 messages per month instead of a fixed monthly fee of 10,000 VND. The Cooperative Bank of Vietnam (Co-opBank) increases SME Banking fees to 16,500 VND per month (including VAT) and stops sending SMEs for transactions below 20,000 VND. Many banks said that they did not earn profits from SMS banking services because of high charges from telecommunications service providers.
Read Article: Banks adjust SMS banking fees, encourage switch to apps for notifications | Business | Vietnam+ (VietnamPlus)
Maybank’s Ong raises target price for ComfortDelGro following recent moves to boost taxi revenue
Following a counter-market trend move to increase its taxi booking commission rate, plus a move to beef up its presence in Australia, Maybank Securities analyst Eric Ong has kept his “buy” call on ComfortDelGro. Given higher EBIT of 2-3% seen for this year and next from its taxi businesses, Ong has raised his target price to $1.60 from $1.55. In another recent development, ComfortDeGro announced on Dec 22 that it is acquiring shares it didn’t already own in taxi network operator A2B Australia for A$165.1 million, or A$1.45 per share. ComfortDelGro now holds 9.3% in the Australia-listed company. As described by ComfortDeGro, A2B has over 8,000 vehicles in its national network and is also a major technology and payment solutions provider for the personal transport industry. A2B runs taxis under brands such as 13cabs and Silver Service, a taxi and booking dispatch platform, MTI, and the Cabcharge payment solution.
Read Article : Maybank's Ong raises target price for ComfortDelGro following recent moves to boost taxi revenue (theedgesingapore.com)
Vietnamese travelers can now connect their Visa cards with China’s digital wallets to bolster payment experience
Visa partners with Tencent and Alipay to empower Vietnam cardholders to link their Visa cards to digital wallets in China, including Weixin Pay (also known as China’s local wallet of WeChat Pay) and Alipay, leading digital wallets in China, and enjoy multiple payment methods including QR codes, presenting payment codes and in-app payments. Visa supports Vietnamese travelers visiting China to add their Visa cards to digital wallets, including Weixin Pay (also known as China’s local wallet of WeChat Pay) and Alipay, through partnerships with Tencent and Alipay, two of the leading internet and technology companies in China. International tourists can link their Visa cards to accounts in WeChat Pay and Alipay wallets to pay for purchases at millions of stores for dining, transportation, shopping, daily spending, and more in mainland China. Consumers can enjoy multiple payment methods such as scanning QR codes, presenting payment codes, and in-app payments, enhancing the consumer payment experience of Vietnameses in China both online and offline. Furthermore, international Visa cards are now accepted at merchant locations in over 400 cities in Mainland China, and at China’s leading online merchants and on mobile apps, including Taobao, Ctrip, Didi, China Railway, 12306, etc.
Read Article: Vietnamese travelers can now connect their Visa cards with China’s digital wallets to bolster payment experience (ffnews.com)
NPCI brings UPI for secondary market to diversify its offerings
The National Payments Corporation of India (NPCI) has introduced a new facility for trading in the stock market. This facility is like the Application Supported by Blocked Amount (ASBA) but is designed specifically for the secondary market.It is based on a block mechanism approved by the Securities and Exchange Board of India (SEBI). The concept is inspired by the Reserve Bank of India (RBI)-approved facilities of single-block and multiple-debit used in UPI transactions. Starting January 1, 2024, investors can use this facility to trade in the stock market. It involves blocking a certain amount of funds for trading, ensuring that the investor has sufficient funds available. This helps streamline and secure the trading process, making it more efficient and in line with regulatory standards. The launch of ‗UPI for Secondary Market‘ is set to commence next week in its beta phase for the equity cash segment, with the collaborative support of key stakeholders including clearing corporations, stock exchanges, depositories, stockbrokers, banks, and UPI app providers. Initially, this functionality will be available for a limited set of pilot customers.
Read Article: NPCI brings UPI for Secondary Market to diversify its offerings (ibsintelligence.com)'
UnionBank and Samp&R launch co-branded credit card in Philippines
Union Bank of the Philippines (UnionBank) has teamed up with S&R, the membership-only grocery chain in the country, for a cobranded credit card that will make grocery shopping, dining, and lifestyle spending more rewarding. To elevate your S&R shopping with the new UnionBank S&R credit card designed for wise shoppers, the following are the benefits: 3% in unlimited rebates when you shop at any S&R store nationwide; 1% unlimited rebates on your dining and shopping spend, and 0.5% unlimited rebates on everything else; There are no annual credit card fees forever. The S&R membership fee will be automatically charged to the card on the month of your membership anniversary; A free 18-piece Whole S&R Cheese Pizza for every P30,000 spent outside of S&R, capped at 4 every year; P1,500 S&R voucher as a welcome gift upon your first P10,000 spent anywhere using your UnionBank S&R credit card.
Read Article: UnionBank and S&R launch co-branded credit card in Philippines (ibsintelligence.com)
-
And that's it for this week's What The Fintech 🎉 We hope you've found our selection of Asia's fintech trends, innovations, and insights both informative and valuable. Your feedback and suggestions are important to us, so please share your thoughts to help us curate content that matters most to you. 🌟
Interested in sponsoring our newsletter? Don't hesitate to reach out – we'd love to discuss partnership opportunities! 💼
Stay connected and engaged by following me on LinkedIn, Instagram, Twitter, YouTube, and Telegram. Catch the annotated edition of this newsletter on Monday or Tuesday, and don't miss my daily tweets @medhy_souidi for the latest fintech updates! 🚀🔥💸
Until next week, keep exploring the future of finance together! ✨
Your Fintech Navigator,
Medhy