Rundown #34: Klarna's Crypto Shift, US AI Debate Heats Up, TikTok's US Comeback, Real-Time Payments Surge, and South Korea’s Face Pay Revolution
Andrew Christodoulou
Speaker ??| Financial Services Expert ??| Runner ??| BTW I like talking about Fintech??
Welcome back to this week’s Five Point Friday roundup! Let’s dive into the latest in payments, tech, and digital finance.
Klarna is jumping into crypto, following fintech peers like Robinhood and Revolut . CEO Sebastian Siemiatkowski confirmed the move, although details remain scarce. This shift signals a bigger change in fintech adoption.
At the AI Action Summit, US Vice President JD Vance rejected calls for global AI regulation, highlighting growing geopolitical tensions. Meanwhile, Elon Musk’s $100 billion bid for OpenAI ’s nonprofit arm stirred up more AI drama.
TikTok is back on US app stores after Trump’s intervention, though national security concerns remain a major hurdle. The app’s future depends on addressing these issues, including possibly selling US operations.
Real-time payments in the US are set for a big year in 2025 as more banks begin originating payments. As demand grows, fraud risks will challenge banks to secure faster transactions.
South Korea’s convenience stores are rolling out Face Pay, allowing customers to pay by facial scan. With secure, fast payments, this service will expand in 2025, making facial recognition payments a norm.
These updates are shaping the future of payments, tech, and finance. Let’s run through it! ??
?? Klarna to Embrace Crypto, CEO Confirms on X
?? Global AI Summit Highlights Rising Tensions
1. US Rejects AI Regulation Push: At the AI Action Summit in Paris, US Vice President JD Vance pushed back against global AI regulations, urging innovation over restrictions and warning against partnerships with China. His stance underscored growing geopolitical divides, especially as China’s DeepSeek AI model gained attention.
2. UK & US Refuse AI Agreement: The US and UK declined to sign a global AI governance declaration, signaling a shift toward national interests. French President Emmanuel Macron positioned France as a leader in AI, emphasizing its nuclear-powered infrastructure as an edge in the AI race.
3. AI Progress Outpacing Safety Measures: While AI advancements accelerated, experts like Yoshua Bengio warned of risks from AI surpassing human intelligence. Meanwhile, Elon Musk’s near-$100 billion bid for OpenAI’s nonprofit arm added intrigue, with CEO Sam Altman dismissing it as a competitive maneuver.
?? TikTok Back on US App Stores After Trump’s Intervention
1. App Restored After Trump's Assurance: TikTok has made a comeback on 苹果 and 谷歌 's US app stores after President Donald Trump intervened, reassuring that no fines would be imposed on the tech giants if they reactivated the app. This followed a January 19 law requiring TikTok's Chinese owner, 字节跳动 , to sell the app or face a potential ban over national security concerns.
2. National Security Concerns Still Loom: The app, with almost half of Americans as users, briefly went dark due to fears that Beijing could use it for spying. Despite this, TikTok remains under scrutiny, needing to prove that it doesn't pose a national security threat, potentially by finding a US owner for its operations, which could be valued at up to $100 billion.
3. TikTok's Future Uncertain: TikTok's ability to continue operating in the US is linked to its ability to address these security concerns. While Trump’s executive order delays enforcement of the ban for 75 days, TikTok’s future hinges on finding a long-term solution, potentially involving the sale of its US operations.
?? Real-Time Payments Surge Expected in 2025
1. Shift Towards Sending Payments: 2025 is predicted to be a major year for real-time payments in the U.S., as banks that have previously only received payments will begin sending them. According to John Byl from Mercantile Bank , this year marks a key shift in adoption, with his bank planning to start originating payments on TCH and FedNow networks. The move comes after The Clearing House (TCH) processed more than one billion payments by January 2024, setting new records for both transaction volume and value.
2. FedNow and RTP Networks Differ in Reach: The FedNow network, launched by the Federal Reserve a year ago, now boasts over 1,000 participants, while TCH’s RTP network continues to be the dominant player, covering 70% of U.S. demand deposits. While FedNow offers a $100,000 credit transfer limit by default, RTP recently raised its limit to $10 million, allowing for larger transactions. Despite the growing number of banks on FedNow, RTP remains the preferred network for the largest financial institutions.
3. Growing Demand and Risk Concerns: As real-time payments gain momentum, customer demand will likely push more banks to adopt the ability to send payments. The move to originate payments presents challenges, particularly with the risk of fraud due to the immediate nature of transactions. Banks, like Mercantile Bank, are actively working to build systems to mitigate fraud risks and meet the growing demand for faster, more efficient payment processing. As user expectations increase, the need for technical advances and secure platforms will drive further growth in the real-time payments space.
?? South Korea's Convenience Stores Introduce Face Pay
1. New Face Pay System: South Korea's major convenience store chains, including CU, GS25, and 7-Eleven, will soon launch Face Pay, a face biometrics payment system. The service, developed by Toss, allows customers to make payments by simply scanning their face, eliminating the need for cards or phones.
2. Fast and Secure: Face Pay ensures fast payments with 99.99% accuracy and takes just 1 second for authentication. Once registered on the Toss app, users can select payment methods such as credit or check cards.
3. Broad Expansion Ahead: Currently being tested at select stores, the system will go live in March 2025 at CU and GS25, with 7-Eleven following later in the year. Other locations, including movie theaters and cafes, will join soon, aiming to make facial recognition payments a daily norm.
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