Page 10 - GS240301

NewsBriefs

This article contains excerpts from news stories recently posted under poised to revolutionize the credit card industry through
Breaking Industry News on our homepage. For links to these and other a $35.3 billion all-stock deal. Capital One plans to acquire
full news stories, please visit www.greensheet.com/breakingnews. a 60 percent stake in Discover. Retaining the Discover
php. brand, Capital One intends to transition some cardholders
to Discover cards.

The merger creates synergies in payment processing, le-
veraging Discover's network and Capital One's techno-
logical prowess, creating a powerhouse that could rival
Visa and Mastercard. Discover's CEO anticipates acceler-
ated growth through the partnership. The deal, subject to
regulatory approval, offers Discover shareholders a pre-
mium. Expectations are for the deal to finalize in late 2024
Durbin summons Visa, MC CEOs to Capitol Hill or early 2025, with three Discover board members joining
Capital One's board.
Senator Richard Durbin, D-Ill., demanded that the CEOs
of Mastercard and Visa testify on April 9, 2024, before New studies highlight fraud-fighting
the Senate Judiciary Committee about competition in costs, strategies
the credit card industry. Durbin questions the card com-
panies' claims that passage of the Credit Card Competi- New studies by NexisLexis Risk Solutions and SonicWall
tion Act, co-authored with Sen. Roger Marshall, R-Kan., reveal a surge in cyberattacks employing AI and advanced
would harm rewards programs and dismisses arguments technologies and targeting financial institutions, enter-
from the Electronic Payments Coalition (EPC) that the Act prises and individuals. SonicWall's CEO emphasized the
would disproportionately benefit big businesses—the EPC inadequacy of traditional security measures and urged
cited a study estimating it would cause $12 billion in lost collaboration to combat the escalating threatscape. Lex-
rewards for small retailers. isNexis Risk Solutions reported soaring financial crime
compliance costs, reaching $61 billion in the United States
The Act, Durbin maintained, aims to introduce more op- and Canada.
tions for merchants in processing card payments. He ac-
cuses Visa, Mastercard and airlines like American and Recommendations include outsourcing security needs
United of resisting competition and spreading false claims to managed service providers and leveraging AI-driven
about the Act. compliance solutions. SonicWall predicted intensified
attacks on small to midsize businesses and government
IFR study highlights human, bot collaboration agencies in 2024, with malware, ransomware, IoT exploits,
A new study by the International Federation of Robotics and encrypted threats on the rise. Researchers recom-
(IFR) and Fraunhofer IPA found 3.9 million robots were mended a balanced approach to compliance and customer
deployed across 40 countries, indicating growing demand experience, embracing AI and advanced analytics to coun-
for robotic technology. ter evolving cyber threats effectively.
OCC aims to simplify MSB national
The study identifies five key robotic trends: AI and ma- licensing requirements
chine learning: innovations like ChatGPT enable natural
language programming, simplifying robot control; expan- Obtaining individual money service business (MSB) li-
sion of cobots: advancements in sensors and grippers en- censes across all 50 states is a significant challenge, even
hance human-robot collaborations, improving workplace for technology giants like X (formerly Twitter), which has
safety; mobile manipulators: mobile platforms with arms secured licenses in several states. Acting Comptroller of
support human workers, addressing staffing shortages; the Currency Michael J. Hsu is advocating for a federal
digital twins: virtual models enable safe testing and mod- framework for payments regulation, echoing recommen-
ification of robots before physical implementation; and dations from the U.S. Treasury's 2022 report on the future
humanoid robots: expected mass production by China by of finance. Hsu's proposed federal licensing aims to en-
2025 may revolutionize various sectors. hance efficiency, protect users and improve cross-border
payments.
Researchers stressed collaborative robots' role in comple-
menting human labor, enhancing productivity, and miti- The Electronic Transactions Association supports a na-
gating economic challenges. tional licensing system, anticipating streamlined opera-

Cap One, Discover join forces tions and a better consumer experience. Payments attor-
ney Adam Atlas, understanding the current complexity
to rival Visa, Mastercard and costliness of the current licensing process, created
Discover, established in 1986 and now part of Discover MSBStatus.com, which offers a centralized resource on
Financial Services, and Capital One, formed in 1994, are MSB registrations.

10