Regulator rejects request for restructure of Canadian domestic debit scheme
The Canadian Competition Bureau has rejected a request from Interac, Canada’s domestic debit card service, to have a Consent Order removed that would have enabled Interac to become a for-profit entity. The regulator rejected the requested change partially on Interac's current dominant position in the market. Concerns were expressed by the regulator that acting on the requested change would remove safeguards that have proven effective in protecting consumers from potentially anti-competitive activity.
Interac expressed disappointment with the decision but remains optimistic that it could explore other changes to its governance in further discussions with the regulator.
More information can be found on the Competition Bureau and Interac websites.
Interchange fee regulation off agenda for US House Committee in 2010
At the US Credit Union National Association's Governmental Affairs Conference in Washington on 24 February 2010, Representative Barney Frank, Chair of the powerful House Financial Services Committee, announced that interchange fee regulation would not be on the Committee’s agenda for the coming year.
Rep. Frank has been a vocal advocate of the need for greater consumer protection. In the light of recent Government studies raising questions about the benefits of interchange fee regulation (see Federal Reserve and GAO), an interventionist approach to interchange fee regulation in the US appears unlikely in the immediate future.
European Payments Council and GSMA consult on mobile payments in SEPA
The European Payments Council (EPC) and telecommunications standards-body GSMA have released the public consultation paper TSM Service Management Requirements and Specifications. This document describes the different roles and processes involved in the provision and lifecycle management of banks' mobile contactless payment applications integrated into a mobile phone. The paper seeks to establish a European-wide approach to promote the adoption of proximity payments using mobile phones.
Click here for more information.