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NewsBriefs

This article contains summaries of news stories recently posted under can be Visa or Mastercard. Supporters said the bill could
Breaking Industry News on our homepage. For links to these and other lower costs for merchants and consumers. The bill is
full news stories, please visit www.greensheet.com/breakingnews.php. backed by major unions and merchant groups who argue
credit card fees worsen affordability issues.

Opponents, including airlines and plane manufacturers,
warned that rewards programs could disappear, harming
consumers. The bill is tied to the controversial GENIUS
Act and awaits a full Senate vote. The Merchant Payments
Coalition supports it, while critics claim it favors big
businesses. The proposal reflects broader tensions between
reducing transaction fees and preserving benefits tied to
major card networks.

The ugly side of BNPL Mastercard, PayPal partner, PayPal goes physical
A new report from the Kansas City Fed revealed troubling PayPal and Mastercard are expanding their partnership
trends in the buy now, pay later (BNPL) market. While with a focus on flexibility and user control. PayPal will
BNPL services are popular among younger consumers, launch a new Mastercard credit card issued by Synchrony
they're especially used by those already financially Bank for in-store and online purchases. It features limited-
overextended. Many BNPL users show multiple indicators time promotional financing and cashback benefits.
of financial constraint—such as difficulty covering Meanwhile, Mastercard's One Credential system will
expenses or having medical debt. Over 15 percent of unify multiple payment options—credit, debit, loyalty
users with late payments have nine or more indicators of and installment—into a single digital identity. Users can
distress. manage preferences through their banking app, allowing
dynamic funding at checkout.
In addition, companies like Affirm and Klarna posted large
losses, raising questions about long-term sustainability, This system enhances security while streamlining
and BNPL's limited protections leave consumers unable transactions. PayPal executives said the offerings meet
to easily dispute charges or return items. Though some growing consumer demand for choice and on-the-go
use BNPL wisely to avoid high-interest credit, the report access. Mastercard emphasized that the integration helps
suggests many overspend and face default risk. Without users build stronger financial habits and creditworthiness.
reforms, BNPL may deepen vulnerability rather than Illinois legislature votes to delay
provide relief. controversial interchange law
Resilience required amid global tariff turbulence
Illinois legislators delayed implementation of the
Global tariff instability is placing unprecedented strain Interchange Fee Prohibition Act (IFPA) to July 1, 2026. The
on financial systems. Trading volumes have more than law would exempt taxes and tips from interchange fees
doubled, and capital markets are hitting infrastructure on card payments. Critics—including banks, credit unions
limits. Solace's Himanshu Gupta stressed the need for and federal regulators—argued it benefits large retailers
real-time, event-driven technology to withstand market like Walmart and Amazon while increasing costs for small
volatility. Invoice rejections surged 273 percent in the businesses. Legal challenges are ongoing.
first quarter of 2025, driven by delayed payments and
compliance chaos. Supporters, including Senator Richard Durbin, D-Ill.,
claimed the bill would reduce consumer costs. A recent
Basware's Jason Kurtz attributed this spike to companies study showed the top 10 retailers would capture over 21
hoarding cash amid uncertainty. Meanwhile, fragmented percent of the law's savings. Small businesses may face
global regulations raised transaction costs and operational added compliance burdens, including the need to replace
risk for cross-border payments. Dima Kats of Clear POS systems. Similar legislation is under consideration in
Junction warned of lasting structural threats. However, as five other states. The delay allows time for legal review
uncertainty grows, automation offers relief—streamlining and further debate about the law's implications.
invoice processing and fraud detection while improving
accuracy. Industry leaders agreed that only agile, resilient
systems will allow firms to position for recovery.
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The Credit Card Competition Act (CCCA) would require
large banks to let merchants choose between two networks can’t miss events and newest
for processing credit card payments—only one of which industry announcements.
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