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NewsBriefs

This article contains summaries of news stories recently posted under Policymakers hope the digital wallet will reduce the euro
Breaking Industry News on our homepage. For links to these and other zone's reliance on U.S.-based payment networks such as
full news stories, please visit www.greensheet.com/breakingnews.php. Visa and Mastercard by creating a pan-European payment
option built on European technology and infrastructure.
If approved, final regulations could be adopted this year,
followed by a pilot in 2027 and broader rollout in 2029. Eu-
ropean Central Bank officials said the digital euro would
be accepted wherever digital payments are accepted, help-
Interchange settlement gets preliminary ok ing establish a continent-wide payment network while
giving banks and fintechs a common infrastructure for
A federal judge granted preliminary approval to a pro- payment services.
posed $38 billion settlement between Visa, Mastercard and
more than 12 million merchants, moving a decades-long Illinois to regulate BNPL
interchange lawsuit closer to resolution. The agreement JB Pritzker signed legislation establishing regulation of
includes a temporary interchange reduction, five years buy now, pay later lenders in Illinois. The law requires
of rate certainty, greater merchant flexibility in accepting providers to register with the state, comply with a 36 per-
card types, expanded surcharging options and merchant cent interest rate cap, conduct ability-to-repay underwrit-
education programs. Visa and the Electronic Payments ing and provide borrowers with dispute rights similar to
Coalition praised the ruling, calling it meaningful relief those under federal credit card laws. Lenders have until
for businesses. The National Retail Federation and Mer- Jan. 1, 2028, to achieve full compliance. The law also limits
chants Payments Coalition argued the settlement fails to certain fees and prohibits repeated debit attempts after in-
address excessive swipe fees and reiterated support for the sufficient funds. Illinois joins a growing number of states
Credit Card Competition Act, which would require large regulating BNPL as adoption accelerates. Consumer advo-
card issuers to enable transactions over competing pay- cates welcomed the measure, citing rising use of BNPL for
ment networks. everyday expenses and growing delinquency concerns.
Visa opens door wide to OpenAI EMVCo seeks industry input on digital

Visa is working with OpenAI to support AI-driven com- payment credential framework
merce, enabling AI agents to search for products, compare
options and complete purchases on consumers' behalf EMVCo is seeking feedback on a proposed framework
for interoperable Digital Payment Credentials, a type of
within user-defined spending limits and security controls.
Transactions will use tokenized Visa credentials, real-time verifiable digital credential designed to support secure,
privacy-preserving card payment authentication across
authorization and fraud monitoring. Visa and OpenAI
said the collaboration is intended to create a secure foun- wallets, payment networks and verification systems. The
draft specification aims to establish a common structure
dation for agentic commerce. Despite growing industry
interest, consumer and merchant concerns remain signifi- for credential data while reducing fragmentation as digi-
tal identity technologies evolve. The framework could
cant. A recent PYMNTS-Worldpay report found only 45
percent of consumers are comfortable allowing AI agents eventually support payment initiation and address device
binding, credential provisioning, verification and privacy
to complete purchases; merchants expressed concerns
about AI-enabled fraud, liability, chargebacks and privacy. controls. Comments will be accepted through July 23. The
draft specification is available at: https://www.emvco.com/
Researchers said clearer industry safeguards are needed
to encourage broader adoption. knowledge-hub/defining-an-emv-digital-payment-credential.
EU seeks to displace Visa and Mastercard Alibaba, payment processor to pay
$600 million in DOJ settlement
The European Union moved closer to introducing a digital
euro after the European Parliament's economic commit- Alibaba Group and AUS Merchant Services agreed to
tee approved draft legislation supporting the initiative. pay $600 million to resolve U.S. Department of Justice al-
legations that their platforms facilitated illegal imports
of pharmaceuticals, controlled substances and counter-
Also find us on Facebook, feiting equipment into the United States. Under separate
LinkedIn & Twitter for the non-prosecution agreements, Alibaba and AUS admitted
to compliance failures and accepted responsibility for the
most up-to-date stories, actions of employees and agents. The companies agreed
can’t miss events and newest to criminal penalties, forfeitures and enhanced compli-
industry announcements. ance measures. The DOJ said the settlement followed an
investigation that included more than 40 undercover pur-
chases of illegal products and is intended to strengthen
safeguards against unlawful activity on ecommerce and
payment platforms.

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