Payments News Digest 25 November 2022

US: TikTok moving to challenge Amazon on its home turf

Social-video platform TikTok took a major step, albeit quietly, towardcapitalising on the engagement of its 87 million users in the United States with the launch this month of an e-commerce feature in its app that will allow users to shop via new tabs in company profiles or while watching live streams. For now, 'TikTok Shop' is only available to certain American businesses, although it has already launched in Britain and some Southeast Asian markets.

According to the findings of an Essence survey last year that is being used in TikTok press releases, four in five survey respondents said they were likely to buy on social media having watched a video stream or taken part in "conversational commerce". The concept has led to parent company's ByteDance's domestic app, Douyin, now producing most of its revenue from in-app e-commerce. TikTok has been reportedly recruiting in the US to bolster its logistical and fulfilment capabilities.

Australia: Tougher BNPL regulations coming, with degree the only question

As noted in this newsletter last month, the Australian government is keen to build up regulation of a Buy-now, pay-later industry whose customer base grew by 40 percent to seven million in the past financial year according to the country's finance ministry. Less than half of providers however are signed up to the voluntary code for the industry. Now the authorities are set to wrap up a brief opinion-canvas window before the Christmas break, before potentially regulating providers under the legislation that governs consumer credit (which previously focused on interest-bearing arrangements) in the new year.

At their weakest, the regulatory intervention would see the existing Code strengthened and an affordability test imposed. A middle-ground option would also add the requirement for providers to have, among other things, an Australian Credit Licence (ACL) to do business. If the most stringent of the three options currently on the table is pursued, pay-later lenders would see "existing responsible-lending obligations in [the law] applied to all BNPL credit, including requirements around reasonable inquiries into a consumer's financial situation".

US: Holiday season spotlights relatively cheaper dine-out options

Happy Thanksgiving to our American readers – many of whom, according to new Wells Fargo research, may have found it more economical to choose a restaurant or delivery service for their traditional gathering rather than undertake the customary market-to-kitchen round. The research is remarkably detailed, even taking into account input costs for staples of the November feast such as potatoes and cranberries. The meatiest finding however may be the 23 percent rise in turkey prices; counting in the cost of the time needed for preparation and clean-up, the authors conclude that eating out this holiday season may be a more reasonable proposition than ever.

Other stories of interest this week...

Global: Digitising govt payments increases financial access and usage
Mexico: Brazil's Nubank rolls out savings account and debit card
S. Korea: Apple Pay service imminent in exclusive deal with Hyundai Card
UAE: Network International collaborates with bank to launch Emirates NBD Pay

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