Payments News Update – July 17, 2026
Legal and Regulatory Developments
SPOTLIGHT: New York Regulator Proposes Licensing Rules for BNPL Lenders
PYMNTS – July 15, 2026
The New York State Department of Financial Services (DFS) posted a notice of proposed rule making regarding buy now, pay later (BNPL) lenders together with the text of the proposed regulation Wednesday (July 15) and will accept public comment on the proposed regulation until Sept. 14, according to the department’s regulatory activity page.
“Today DFS formally proposed regulations to establish a licensing and supervision framework for buy now, pay later (BNPL) providers operating in New York,” the department said in a Wednesday post on X.
“The proposal opens a 60-day comment period.”. . .
Penny’s End Poses Rounding Challenge
Payments Dive – July 16, 2026
Businesses would gain new guidelines for rounding transactions if the government gradually phases out the U.S. penny under legislation Congress is considering.
The Common Cents Act, which passed the House of Representatives on Tuesday, enacts formal guidelines for businesses to round tabs to the nearest 5 cents as the U.S. gradually retires the penny.
A Senate version of the bill remains in the Committee on Banking, Housing and Urban Affairs, according to Congress’ legislative website. . . .
Credit Unions Ask Fed to Freeze Debit Interchange Plan Until Courts Rule
PYMNTS – July 14, 2026
America’s Credit Unions has called on the Federal Reserve to withdraw its 2023 proposed Regulation II changes to debit interchange until legal challenges have been resolved.
The organization shared this and other credit union priorities in a letter submitted to the House Financial Services Committee ahead of Federal Reserve Chair Kevin Warsh’s Tuesday (July 14) appearance before the committee in a hearing, according to a Tuesday press release.
In its letter, America’s Credit Unions said that while the Fed has indicated that it doesn’t plan to finalize the proposed amendments to Regulation II was litigation is still active, it has not withdrawn the proposal. . . .
Europe’s Payment Power Struggle: Can Visa and Mastercard Be Displaced?
International Banker – July 13, 2026
Europe’s payment system is entering a new phase in which pertinent questions about market structure, competition and efficiency are increasingly being reframed as questions of financial sovereignty.
What was once a discussion about interchange fees and merchant costs has expanded into a broader assessment of how much control Europe retains over the infrastructure that underpins everyday commerce. And at the centre of this system sit Visa and Mastercard.
Together, the two US-based payment networks process the majority of card transactions across the eurozone, with estimates placing their combined share at around two-thirds of total card-payment value. In the United Kingdom, that concentration is even higher, with industry data suggesting that up to 95 percent of card transactions rely on Visa and Mastercard. . . .
BNPL Set to Come Under Supervision of UK’s FCA
PYMNTS – July 13, 2026
This week marks a new era for buy now, pay later (BNPL) products in the U.K.
Beginning Wednesday (July 15), these interest-free installment products will be governed by the country’s Financial Conduct Authority (FCA) for the first time, putting a payment option used by roughly 11 million British consumers into the regulatory framework governing mainstream credit.
With the new rules, BNPL must secure FCA authorization or temporary permission, carry out proportionate affordability checks before extending credit, clearly disclose repayment terms and support borrowers dealing with financial difficulties. . . .
Industry Developments
SPOTLIGHT: A New QR Code Standard Could Boost Instant Payments, X9 Committee Says
Digital Transactions News – July 14, 2026
A newly released standard for QR code payments could make it easier for consumers and merchants to use instant payments, says the Accredited Standards Committee X9 Inc.
X9 is a nonprofit organization that develops and maintains national and international standards for the financial-services industry.
The new standard, officially called X9.150, Merchant-Presented QR Codes for Secure Payment, will allow every bank or merchant app with a QR code reader or generator to be used for secure payments with anyone, anywhere in the United States, X9 says. It could be especially helpful in making account-to-account payments. . . .
Mastercard Examines Sale of UK Payments Subsidiary Vocalink
Financial Times – July 13, 2026 (subscription may be required)
Mastercard is exploring the sale of a majority stake in the company that runs much of the UK retail payments system back to British banks, as it responds to concerns about a strategically critical asset being under US ownership.
The discussions come at a crucial time for Vocalink, which runs the systems behind critical parts of the UK’s financial infrastructure, as it gears up to compete for a contract to develop a new payments platform for the country.
Talks about a potential stake sale are at a very preliminary stage within Mastercard and no firm offers have been made, according to two people briefed on the talks. . . .
FedNow Advances Over Hurdles
Payments Dive – July 13, 2026
The Federal Reserve’s instant payments system has been connecting to more financial institutions and reaching more accounts, resulting in an 85% jump in the number of settled payments for the second quarter of this year, compared to the first quarter.
A Fed update last week said 1,800 banks and credit unions have now adopted the FedNow service since it launched in mid 2023, including seven of the top ten U.S. banks.
That means about half of U.S. savings and checking accounts have access, according to June 30 statements from Chief FedNow Executive Nick Stanescu. . . .