Payments News Update – July 10, 2026
Legal and Regulatory Developments
SPOTLIGHT: JPMorgan, Bank of America and Other Banks Explore a Deal to Shake Up Payments World
The Wall Street Journal – July 6, 2026 (subscription may be required)
Some of the largest banks in the country have been exploring an acquisition that could allow them to get around one of the laws they hate most: the limits on fees they earn on debit-card transactions.
When Capital One Financial bought Discover Financial in a $50.6 billion deal, it got a network that cut out the need for a middleman in card transactions and allowed it to deal more directly with merchants.
Now, big banks are looking on with envy because owning a network can mean exemption from a federal law that caps debit-card fees. . . .
Fiserv Debit Network Sale Skepticism Abounds
Payments Dive – July 8, 2026
News reports that Fiserv has hawked a debit network to a handful of U.S. banks whipped up speculation of a sale Tuesday, but there was serious skepticism about such a transaction.
The payments processor was said to be talking to banks interested in potentially buying Fiserv’s Star or Accel debit network to increase their interchange fee revenue, according to The Wall Street Journal and a Reuters piece that followed, citing unnamed sources, prompting reports from other news outlets.
Banks could use a debit network to boost interchange fee revenue, arguing that they wouldn’t be subject to the Durbin Amendment in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act that caps debit fees. . . .
Klarna Seeks U.S. Bank Charter in Latest Push Beyond Buy Now, Pay Later
CNBC – July 6, 2026
Klarna, the Swedish fintech firm best known for its buy now, pay later offerings, said Monday it applied to federal and state regulators to establish a U.S. bank subsidiary.
The firm said that, if approved, Klarna Bank USA would be a Federal Deposit Insurance Corp.-backed institution chartered in Utah.
The proposed bank would be led by Gary Harding, former CEO of Milestone Bank and Prime Alliance Bank, according to Klarna. . . .
PayPal Gains Role in Europe’s Payments Standards Push
PYMNTS – July 2, 2026
PayPal said Thursday (July 2) that it has secured a seat at the table to influence the future of payments in Europe by joining the European Payments Council (EPC).
EPC brings together organizations that are involved with the rules, standards and infrastructure underpinning European payments.
The council manages the rules for payment systems used across the Single Euro Payments Area (SEPA) that spans 41 European countries, PayPal said in a Thursday press release. . . .
Industry Developments
SPOTLIGHT: Digital ID and Payments Turn to Your Face
Payments Dive – July 6, 2026
Smile – your face is becoming a path for payments.
Apple and Android digital wallets are common tools for consumer payments, but they’re also increasingly intertwined with identification in an era where identities are digital and tied to biometric data.
“Essentially, your face becomes your wallet,” said Prashant Sharma, JPMorgan Chase’s global head of product, overseeing biometric payments and digital identity. “The best checkout is where the consumers don’t have to think about payment, and that’s what biometrics actually enables.” . . .
Credit Card Payments Outpace Debit for First Time Since 2000
PYMNTS – July 1, 2026
Cards continued to account for the greatest number of noncash payments in the United States in 2024, while ACH payments continued to account for the highest value of noncash payments.
Both of those trends were true by a wider margin than three years earlier, according to the latest Federal Reserve Payments Study (FRPS).
The FRPS is conducted every three years, quantifies aggregate payment volumes, and includes payments from U.S. domiciled accounts, both consumer and non-consumer. . . .