Payments News Update – July 2, 2026
Legal and Regulatory Developments
SPOTLIGHT: Illinois Enacts BNPL Law
Payments Dive – June 25, 2026
llinois Gov. JB Pritzker on Thursday signed a bill mandating regulatory oversight of buy now, pay later companies, enacting rules to oversee the industry.
The Buy-Now-Pay-Later Loan Consumer Protection Act requires BNPL providers to register with the state and to create processes for dispute resolution and refunds to consumers.
The law takes effect immediately, but BNPL providers have until Jan. 1, 2028, to comply, according to a Thursday press release from Pritzker’s office. . . .
Political Pressure Builds to Cut $2B in Credit Card Fees
Australian Financial Review – June 30, 2026 (subscription may be required)
A Labor-led parliamentary inquiry into the nation’s payments system is recommending Treasurer Jim Chalmers direct the competition watchdog to investigate the $2 billion of fees being charged by credit card giants, chiefly Visa and Mastercard.
The market power of digital wallet Apple Pay should also be investigated by the Australian Competition and Consumer Commission, Labor MP and chair of the House of Representatives economics committee Ed Husic said in a new 146-page report.
The fresh political scrutiny on payment fees charged by American companies comes after the Reserve Bank of Australia in March announced it would ban separate card surcharges levied by businesses such as restaurants, pubs and cafes to recover payments to banks and other payment providers. . . .
UK Regulator Considers Opening Apple, Google App Stores to Rival Payments
Reuters – June 30, 2026
Britain’s competition regulator on Tuesday proposed allowing app developers to steer users to alternative payment options outside Apple and Alphabet’s Google app stores to cut fees and boost competition.
The Competition and Markets Authority said the proposals would remove restrictions that currently prevent UK developers from directing users to off-platform payment options, which are banned by Apple and restricted by Google.
The watchdog said any fees charged by two of the world’s largest technology companies for allowing such “steering” would need to be fair and reasonable, and should be lower than current app store commissions, with savings passed on to consumers or reinvested in innovation. . . .
Stripe, Banks Tell Congress Payment Rules No Longer Fit Modern Commerce
PYMNTS – June 25, 2026
Lawmakers spent much of Wednesday wrestling with a question that reaches well beyond faster payments: whether a regulatory framework built for deposit-taking banks can continue to govern a financial system in which software platforms, digital assets and artificial intelligence are reshaping how money moves.
The hearing, titled “Future of Payments: Promoting Innovation and Fair Markets,” examined whether Congress should create a new regulatory lane for payments companies that neither accept deposits nor make loans but have become central to commerce.
Throughout the hearing, members of the House Financial Services Committee returned to the same question from different angles: Can innovation move faster without weakening consumer protections, bank supervision or financial stability? . . .
Boston Fed Forms Payments Council
Payments Dive – June 24, 2026
The Federal Reserve Bank of Boston has launched the payments advisory council for its First District region, according to a Monday press release.
The Boston Fed has assembled executives from financial institutions and payments firms to serve on the council. Those members include executives from Toast, Wex, State Street and Fintech Sandbox, according to the press release.
The council members, from the district’s New England area, will convene to share industry insights and data in an effort to help the Boston Fed understand current payment issues and guide the agency’s policy decisions, the release said. . . .
Industry Developments
SPOTLIGHT: Fraud Costs $5.13 for Every $1 in Loss, LexisNexis Risk Solutions Finds
Digital Transactions News – June 26, 2026
Merchants wrestle with fraud every day, lamenting how much is lost in each bad transaction. LexisNexis Risk Solutions, as it’s done for a number of years, has quantified the actual cost beyond the item’s value.
In 2026, the total cost of every $1 in fraud is $5.13 in the United States and $5.23 in Canada for retailers and e-commerce merchants. That is up from $4.61 and $4.52, respectively, from 2025. This marks the first time the $5 threshold has been crossed in both markets, the company says.
What’s changed is that new attack vectors are having an impact. . . .
Amex and Apple Pay Enable Users to Pay With Points
PYMNTS – June 30, 2026
American Express U.S. card members can now use their Membership Rewards points on everyday purchases by redeeming the points directly within Apple Pay’s checkout experience.
This capability is enabled by American Express’ new “Use Pay with Points with Apple Pay” feature, the company said in a Tuesday (June 30) press release.
Eligible card members can pay with points by shopping online or in apps on iPhone or iPad, selecting Apple Pay at checkout, choosing an eligible American Express Membership Rewards card, selecting “Use Rewards,” entering the amount to apply toward the eligible purchase, and completing the Apple Pay transaction, according to the release. . . .
Stripe, Visa and Over 140 Other Businesses to Launch Stablecoin to Rival Tether and Circle
Fortune – June 30, 2026 (subscription may be required)
A consortium of financial giants are taking aim at the top two stablecoin issuers.
On Tuesday, Open Standard, a company that says it’s partnered with Stripe, Visa, BlackRock and over 140 other businesses, announced that it will launch a new stablecoin called Open USD, or OUSD. The two largest stablecoin issuers, Tether and Circle, are notably not part of the new consortium.
OUSD will launch later this year and is structured to return most reserve revenue, or interest earned on the assets backing it, minus a small management fee, to participants. . . .
Visa Expands the Smart Phone’s Role in Payment Acceptance
Digital Transactions News – June 30, 2026
Visa Inc. has taken steps to make smart phones a more readily available way for merchants, especially micro-size ones, to digitally accept payments with updates to Visa Pay, Visa Accept, and Visa Direct.
With Visa Accept, announced in April 2025, Visa makes it easier for these small sellers to get paid to their eligible Visa debit cards from any NFC-capable smart phone. Visa Pay connects any participating wallet to any Visa-accepting merchant, local or international, in-store or online. Visa Direct is the brand’s near real-time payment service to cards.
Now, businesses can send payouts, such as compensation for contractors and staff, and consumer refunds, using their phones. . . .
Musk Starts Expanding X Payments to More Users After Delay
Bloomberg – June 25, 2026 (subscription may be required)
Elon Musk is expanding access to digital payment venture X Money to a subset of premium users on social network X, part of his bid to turn the platform into an “everything app.”
The company on Thursday released the banking tool built inside X to more US users, according to a post by Dhruv Batura, who now leads X Money.
X, formerly Twitter, will “collect feedback and iron out issues ahead of a broader launch,” he wrote. . . .