News Digest from Monoup: Main Fintech and Gaming Events of the Week
As always, fintech news from Monoup on Friday. In the USA, crypto industry is actively developing: GENIUS law has been signed, and USDT is planning to officially enter the United States market against this backdrop. What to expect next — read on in the article.
Meanwhile, Visa and Mastercard have faced difficulties operating in Turkey. The country's authorities suspect both companies of unfair competition and active actions against payment providers that operate “bypassing” the two international payment systems. We'll tell you more about what happened in below.
We review what happened this week in fintech and iGaming that you wouldn't want to miss.
Israel Faced a Real Payment Boom
Several major companies have entered the Israeli market, obtaining licenses to conduct payments, exchanges, and asset storage. These include:
- Airwallex;
- Revolut;
- Rapyd;
- Mesh Payments.
Israel has long been quite closed and not very interesting to international fintech. Similarly, the state did not promote the idea of cooperation. However, this approach has now changed, and authorities believe that such products will be useful for cross-border payments and as first payment services for children. These are the services that are least represented in Israel and country is in need of quality offerings.
USDT to Officially Enter the USA Market
Tether has officially confirmed plans to introduce USDT to regulated United States market as soon as the GENIUS Act comes into force. The company's CEO was present at the signing of new stablecoin law by President Trump and actively encourages its implementation, hoping for a bright crypto future.
Tether is also considering the option of launching a separate stablecoin for USA. If it is not USDT, it will be another currency, as there are concerns about operating worldwide with the existing token. Since the main client base of USDT is outside the USA, American requirements may be excessive for other markets or may not meet the expectations of users in other countries. To avoid regulatory problems and user dissatisfaction, a different separate stablecoin may be introduced.
For current users, everything remains the same for now, and no restrictions are foreseen.
Additionally, Circle, creator of USDC, believes it has a better chance of success in the regulated US market due to its impeccable reputation and full compliance with laws from the very beginning. However, despite this fact, USDT still remains the stablecoin with the highest capitalization in the world.
Mastercard and Visa Under Probe in Turkey
Both international payment systems have become the subject of an investigation in Turkey. The Antimonopoly Authority suspects that international payment systems are imposing illegal restrictions on Turkish payment providers working with foreign merchants.
Some Turkish payment systems, when servicing international merchants, do not always use the services of Visa and Mastercard. By concluding bilateral agreements between countries, cross-border payment operations can be “localized” and thus carried out without paying fees to Mastercard or Visa for foreign transactions.
Turkey believes that Mastercard and Visa are dissatisfied with this scheme and may be trying to push payment systems that use such bilateral agreements out of the market, as well as hinder their operations. For their part, both international payment systems are confident that such agreements violate the rules of cooperation with them and they have every right to counteract and not encourage this method of operation.
If the investigation reveals that companies hindered the use of their card/POS infrastructure by foreign merchants in attempts to make everyone fully dependent on their services, restrictions and fines may be applied.
Praxis Developed AI Service to Increase Approval Ratio
Praxis payment aggregator and orchestrator has released new functionality based on artificial intelligence. The AI will be able to analyze performance of payment providers for each merchant and suggest ways to improve approval rates.
This new routing is designed to solve the problem of declining first payments, as this is what allows retaining new customers and is most often a problematic thing for merchants. If the first payment is unsuccessful, it is highly unlikely that the customer will make a second attempt. At this stage, a large number of new customers can be lost forever.
To avoid this situation, Praxis offers to implement the new AI routing.
These are the news highlights for this week from Monoup. More publications can be found in our Telegram channel, and articles are available in the MonoTalks section.
