The Short Report: Weekly Tech Digest

Financial Conduct Authority Proposes Removing £100 Contactless Payment Cap

The UK's Financial Conduct Authority (FCA) is considering eliminating the current £100 limit on contactless payments. Proponents argue that this move could stimulate economic activity and offer businesses greater flexibility. However, experts caution that higher limits may lead to increased theft and fraud, as stolen cards become more valuable targets. Data indicates that crimes like robberies and thefts have doubled, suggesting the recent limit increase may have contributed to rising crime rates. Critics argue that removing the limit would make debit and credit cards more attractive to criminals and could result in a significant crime wave. Despite security concerns, contactless payments have proven popular, providing convenience and aiding high street shops. Research shows broad usage across all age groups, with 93% of in-store transactions up to £100 being contactless. Advocates argue that continued limits hinder consumer choice, technological innovation, and economic growth. They claim the amount lost to fraud is minimal compared to total contactless spending. In conclusion, while security remains a concern, proponents believe that the benefits of lifting the contactless payment cap, such as enhanced consumer freedom and economic progress, outweigh the potential risks.

The Times & The Sunday Times

HSBC Shuts Down Payments App Zing After One Year

HSBC has decided to close its payments app Zing, just a year after its launch, and integrate its technology into the main HSBC platform. Zing aimed at young customers such as international students and expatriates, and had planned to expand globally by 2024 but remained confined to the UK. This move is part of HSBC's broader strategy to simplify its operations and focus on areas with clear competitive advantages. The closure signals another unsuccessful attempt by traditional banks, such as NatWest and Barclays, to establish fintech ventures. The decision follows the leadership change with Georges Elhedery becoming CEO after Noel Quinn's departure. HSBC's previous head of wealth and personal banking, Nuno Matos, who spearheaded Zing's launch, left the bank after failing to secure the top job. HSBC had also invested $35 million in Monese, a UK-based fintech, which was later acquired by Pockit after significant financial losses.

Financial Times