Your Friday fix for global fintech and payments news
Rounding up the news this week, we are talking about the digital global roll out of UnionPay, remittances hitting records heights in Mexico, and the effect that the COVID-19 pandemic has had on consumer safety in relation to payment fraud.
Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- China’s UnionPay rolls out digital bankcard
- Remittances to Mexico hit third highest level on record in July
- Credit card fraud is on the rise – are your customers safe?
In partnership with commercial banks, mobile phone manufacturers and major merchants and payment institutions, UnionPay has rolled out its digital bankcard to the global audience. Aiming to streamline the processes of application and collection through complete digitalisation, the application will offer many payment services including purchases, cash deposits and withdrawals, bank transfers, mobile QuickPass payments and QR code payments.
The digital/virtual card offered by UnionPay is said to hold other exclusive benefits and will use tokenisation and real-time risk monitoring throughout each process, consistent with data protection. This latest offering from UnionPay is a response to market demand and acts as the most recent attempt to drive payment service digitalisation.
Data from the Central Bank shows that remittances to Mexico are holding up as the highest on record in 2020, continuing their rise in July by more than 7% in comparison to the same month last year.
During the second quarter of 2020, Mexico suffered a low it has not seen since the Great Depression. Remittances are a pillar of support for the Latin American community and tend to be sent back to families by the high amount of Mexicans living and working in the US.
“Generous wage/income support fiscal transfers in the U.S., a very competitive MXN/USD level, and a deep contraction of activity and employment in Mexico may have acted as both push and pull drivers of dollar remittances from the U.S. to Mexico,” said Alberto Ramos, economist at Goldman Sachs.
The COVID-19 pandemic has caused a huge uptake in online shopping and this in turn has caused a big spike in fraud according to Greg Mahnken, a Credit Industry Analyst for Credit Card Insider. Scams, phishing emails, fraudulent websites and unsecured public Wi-Fi networks have all contributed to a lot of data breaches.
The old saying of "If a deal seems too good to be true, it probably is,” makes the majority of us double-check a phishing email claiming that we’re owed money or offering us huge discounts on items. But that’s not the case for everyone. Phishing emails have become increasingly legitimate-looking and very deceiving. Consumers need to know how to recognise and verify these types of emails.
Both merchants and customers should take responsibility in knowing the signs of both digital fraud and physical card fraud. Each should be better equipped at checking the hardware they are either providing, or using, and addressing the issue head on if it is to occur.