In today’s top Europe, Middle East and Africa news, loan providers that do not charge penalty fees risk losing revenue, while MiCA, the European Union’s Markets in Crypto Assets legislation, is set for a vote next week.
In other news, Walmart is collaborating with British retailer Space NK to bring its beauty products to its website and 250 of its stores. Plus, buy now, pay later startup Tabby raised $54 million in a Series B funding round, and the U.K.’s Financial Conduct Authority said it will not block an attempt by Amigo Loan to start issuing loans again.
Alma CEO Says Zero Late Fee Policy Risky for BNPL
Late fees can be an important source of revenue for traditional lenders. For some credit card companies, it can represent up to 20% of their revenues.
As a result, loan providers that choose not to charge these penalty fees, such as Paris-based buy now, pay later (BNPL) firm Alma, risk losing a considerable amount of money each year. With this zero late fee policy, lending to customers who can reimburse funds becomes crucial to minimize Alma’s revenue loss risks.
EU Crypto Law MiCA Set for Vote March 14
A vote on the European Union’s Markets in Crypto Assets (MiCA) legislation is set for March 14, following a debate over language that would have banned bitcoin.
While the parliament had been expected to approve the legislation last month, that vote was delayed over complaints from crypto advocates who objected to phrasing in the proposal that threatened to ban crypto companies from relying on energy-intensive proof-of-work mining.
FCA Won’t Fight High-Interest Lender’s Resuming Operations
The United Kingdom’s Financial Conduct Authority (FCA) banned Amigo Holdings PLC from issuing loans in the U.K. last year, but the tide seems to be turning.
On Monday (March 7), the FCA announced that it would not block an attempt by the company that operates Amigo Loan to start issuing loans again.
Visa, Mastercard Pullout in Russia Underscores Importance of Traditional Networks to Crypto
With Visa and Mastercard pulling out of Russia, the two easiest and most convenient ways to make payments with bitcoin has vanished.
This makes it is harder to use crypto as anything other than an investment in Russia, as its economy implodes under the weight of both public and private sanctions.
Walmart to Import British Cosmetic Kiosk Concept ‘Beauty Space’ to US Stores
Walmart has joined forces with British retailer Space NK to bring “prestige beauty products” to its website and nearly 250 of its stores this summer.
The collaboration leverages Walmart’s size and scale with the iconic British personal care and beauty company’s assortment of high-quality beauty brands and products, Walmart said.
UAE BNPL Tabby Raises $54M in Series B Funding Round
Tabby, a buy now, pay later (BNPL) startup for Saudi Arabia and the United Arab Emirates, raised $54 million in a Series B funding round led by Sequoia Capital India and Saudi venture capital firm STV.
The startup, who has raised $180 million in debt and equity funding, will use the fresh capital to expand its products and grow across several new verticals.
