Latest news with #paymentsystem
Malay Mail
12 hours ago
- Business
- Malay Mail
Africa pioneers low-cost, non-dollar payment systems, defying Trump's de-dollarisation threats
PAPSS payment system allows trade settlement in local currencies Experts says move aims of lowering trade costs South Africa using G20 presidency to advance local payments US President Trump warns against de-dollarisation efforts NAIROBI, June 20 — Africa's push for local currency payments systems — once little more than an aspiration — is finally making concrete gains, bringing the promise of less costly trade to a continent long hobbled by resource-sapping dollar transactions. But efforts to move away from the dollar face strong opposition and the threat of retaliation from US President Donald Trump, who is determined to preserve it as the dominant currency for global trade. The move by Africa to create payments systems that do not rely on the greenback mirrors a push by China to develop financial systems independent of Western institutions. Countries like Russia, which face economic sanctions, are also keen for an alternative to the dollar. But while that movement has gained a sense of urgency due to shifting trade patterns and geopolitical realignments following President Trump's return to the White House, African advocates for payment alternatives are making their case based on costs. 'Our goal, contrary to what people might think, is not de-dollarisation,' said Mike Ogbalu, chief executive of the Pan-African Payments and Settlements System, which allows parties to transact directly in local currencies, bypassing the dollar. 'If you look at African economies, you'll find that they struggle with availability for third-party global currencies to settle transactions,' he said. Africa's commercial banks typically rely on overseas counterparts, through so-called correspondent banking relationships, to facilitate settlements of international payments. That includes payments between African neighbours. That adds significantly to transaction costs that, along with other factors like poor transport infrastructure, have made trade in Africa 50 per cent more expensive than the global average, according to the UN Trade and Development agency. It is also among the reasons so much of Africa's trade — 84 per cent, according to a report by Mauritius-based MCB Group — is with external partners rather than between African nations. 'The existing financial network that is largely dollar-based has essentially become less effective for Africa, and costlier,' said Daniel McDowell, a professor at Syracuse University in New York specialising in international finance. A man counts Nigerian naira notes in a market place as people struggle with the economic hardship and cashflow problems ahead of Nigeria's Presidential elections, in Yola, Nigeria, February 22, 2023. — Reuters pic Homegrown systems According to data compiled by PAPSS, under the existing system of correspondent banks, a US$200 million (RM851 million) trade between two parties in different African countries is estimated to cost 10 per cent to 30 per cent of the value of the deal. The shift to homegrown payments systems could cut the cost of that transaction to just 1 per cent. Systems like PAPSS allow a business in one country, Zambia for example, to pay for goods from another like Kenya, with both buyer and seller receiving payment in their respective currencies rather than converting them into dollars to complete the transaction. Using currencies like the Nigerian naira, Ghanaian cedi or South Africa's rand for intra-Africa trade payments could save the continent US$5 billion a year in hard currency, Ogbalu told Reuters. Launched in January 2022 with just 10 participating commercial banks, PAPSS is today operational in 15 countries including Zambia, Malawi, Kenya and Tunisia, and now has 150 commercial banks in its network. 'We have also seen very significant growth in our transactions,' Ogbalu said, without providing usage data. The International Finance Corporation, the World Bank's private sector lending arm, has, meanwhile, started issuing loans to African businesses in local currencies. It views the switch as imperative for their growth, relieving them from the currency risks of borrowing in dollars, said Ethiopis Tafara, IFC's vice-president for Africa. 'If they are not generating hard currency, a hard-currency loan imposes a burden that makes it difficult for them to succeed,' he said. Africa's push for local currency payments systems is finally making concrete gains, bringing the promise of less costly trade to a continent long hobbled by resource-sapping dollar transactions. — Picture By Choo Choy May Geopolitics and the Trump factor Africa's campaign to boost regional payments systems has found a platform at the Group of 20 major economies, with South Africa leading the charge as holder of the G20's rotating presidency. It held at least one session on boosting regional payments systems when South Africa hosted a meeting of G20 finance ministers and central bank governors. And South Africa wants it to follow up the talk with concrete actions. The next meeting of G20 finance officials is scheduled for mid-July. 'Some of the most expensive corridors for cross-border payments are actually found on the African continent,' Lesetja Kganyago, South Africa's central bank governor, told Reuters during a G20 meeting in Cape Town in February. 'For us to function as a continent, it's important that we start trading and settling in our own currencies.' Talk of moving away from the dollar — either for trade or as a reserve currency — has drawn aggressive reactions from President Trump, however. After Brics — a grouping of nations including Russia, China, India and Brazil along with Africans like South Africa, Egypt and Ethiopia — weighed reducing dollar dependence and creating a common currency, Trump responded with threats of 100 per cent tariffs. 'There is no chance that Brics will replace the US Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!,' he wrote on Truth Social in January. In the months since, Trump has demonstrated his willingness to use tariffs to pressure and punish allies and foes alike, a strategy that has upended global trade and geopolitics. No matter its intentions in moving to more local currency transactions, Syracuse University's McDowell said Africa will struggle to distance itself from more politically motivated de-dollarisation efforts, like those led by China and Russia. 'The perception is likely to be that this is about geopolitics,' he said. — Reuters
Daily Mail
04-06-2025
- Business
- Daily Mail
H&M systems are down in the UK
By Customers at H&M stores across the UK have been unable to purchase products for several hours today, following an apparent failure in the company's payments system. A worker at one store in London told MailOnline that their location had been unable sell items for around two hours. It is not currently known if online customers have been affected by the issue, and the cause of the outage has not yet been revealed. A spokesperson for H&M told MailOnline: 'We are aware of the problem and are looking into resolving it as quickly as possible. 'We apologise to our customers for the inconvenience.' The incident comes after British retail institutions like M&S and Co-op were hit with severe cyber attacks that crippled them. In late April, Co-op was forced to shut down parts of its IT systems after hackers tried to illegally access them, and that it only had a 'small impact' on its operations. The firm later admitted that despite this, hackers 'accessed data relating to a significant number of our current and past members. Meanwhile, M&S stores up and down the country were left with empty shelves after it faced an Easter weekend cyber attack. The company admitted that personal information of customers, which could include telephone numbers, home addresses and dates of birth, were taken. M&S said that the data thieves did not take usable payment or card information from their servers. Luxury jewelry firm Cartier and outdoor retailer The North Face then became the latest retailers to report customer data being stolen in cyber attacks . Watchmaker Cartier told customers in an email that 'an unauthorised party gained temporary access' to its system and 'obtained limited client information'. The firm - whose items have been worn by Taylor Swift , Angelina Jolie and Michelle Obama - revealed names, email addresses and countries had been obtained. But Cartier, which is owned by Swiss-based Richemont, said the 'affected information did not include any passwords, credit card details or other banking information'. The company said it further enhanced the protection of its systems and data, told the relevant authorities and was working with 'leading external cyber security experts'. Separately, fashion brand The North Face, owned by VF Corporation, emailed some of its customers to tell them it discovered a 'small scale' attack in April this year. The brand said names and email addresses were taken, but financial details were not - with the company revealing hackers used 'credential stuffing', reported BBC News. This involves trying usernames and passwords stolen from another data breach in the hope customers have reused the credentials across multiple accounts. North Face said attackers may have got hold of some customers' postal addresses and purchase histories. A North Face spokeswoman told MailOnline: 'The cyber incident you are referring to is a small-scale cyber incident occurred on April 23, 2025, affecting our The North Face e-commerce website in the US only. 'The incident was contained very quickly on the same day it occurred. There was no impact on our systems and/or our consumer data in Europe whatsoever, including in the UK.' Cyber security expert Julius Cerniauskas, chief executive of web intelligence firm Oxylabs, told MailOnline that the latest breaches 'send a clear message that no brand is safe from cybercrime, not even the biggest names with the deepest pockets'. He added: 'Attackers are becoming more opportunistic and sophisticated, targeting brands that hold valuable customer data, not just credit card numbers. 'In the case of The North Face, credential stuffing shows how recycled passwords from past breaches continue to fuel new attacks. 'Cartier's incident demonstrates how even well-defended systems can be compromised. Whether it's luxury retail or everyday consumer brands, hackers are finding weak spots and exploiting them fast.' Mr Cerniauskas urged retailers to 'respond with more than apologies', encouraging them to enforce multi-factor authentication, tighten access controls and constantly monitor for threats. Speaking further about 'credential stuffing', Joe Jones, chief executive and founder of Pistachio, a cybersecurity attack simulation company, said consumers reusing passwords across multiple sites were a 'sitting duck' for breaches of this type. He told MailOnline: 'Credential stuffing, the method used here, only works because people reuse the same login details. 'If you've been caught in this breach, change your passwords immediately - especially if they match accounts like email or banking. 'Enable app-based two-factor authentication, not SMS, and remain hyper alert to scam emails, texts or even fake calls.'
Daily Mail
04-06-2025
- Business
- Daily Mail
BREAKING NEWS H&M systems are DOWN: Company battles to resolve 'problems with payments'
Customers at H&M stores across the UK have been unable to purchase any products for several hours today, following an apparent failure in the company's payments system. A worker at one store in London told MailOnline that their location had been unable sell any items for around two hours. It is not currently known if online customers have been affected by the issue, and the cause of the outage has not yet been revealed. A spokesperson for H&M told MailOnline: 'We are aware of the problem and are looking into resolving it as quickly as possible. We apologise to our customers for the inconvenience.' The incident comes after British retail institutions like M&S and Co-op were hit with severe cyber attacks that crippled them. In late April, Co-op was forced to shut down parts of its IT systems after hackers tried to illegally access them, and that it only had a 'small impact' on its operations The firm later admitted that despite this, hackers 'accessed data relating to a significant number of our current and past members. Meanwhile, M&S stores up and down the country were left with empty shelves after it faced an Easter weekend cyber attack. The company admitted that personal information of customers, which could include telephone numbers, home addresses and dates of birth, were taken. M&S said that the data thieves did not take usable payment or card information from their servers. Luxury jewellery firm Cartier and outdoor retailer The North Face yesterday became the latest retailers to report customer data being stolen in cyber attacks. What is 'credential stuffing' and how can you protect yourself against it online? The North Face confirmed hackers used the 'credential stuffing' method during a cyber attack on the company. This is where criminals take advantage of people who use the same username and password on multiple accounts. If one set of credentials is stolen during a hack, the attackers may then try using those details again in a new attack - with the hope customers have reused them on different accounts. By fraudulently gaining valid credentials on one site, and using them successfully on other sites, an attacker can then access more accounts. The primary motivation is financial, but it can also lead to identity theft. Anyone caught up in such an attack is urged to change their passwords immediately - especially if they match vital accounts like email or banking. They should be on alert for scam emails, texts or even fake calls. Experts also advise people to avoid using the same password on different sites, to become better protected. Watchmaker Cartier told customers in an email that 'an unauthorised party gained temporary access' to its system and 'obtained limited client information'. The firm - whose items have been worn by Taylor Swift, Angelina Jolie and Michelle Obama - revealed names, email addresses and countries had been obtained. But Cartier, which is owned by Swiss-based Richemont, said the 'affected information did not include any passwords, credit card details or other banking information'. The company said it further enhanced the protection of its systems and data, told the relevant authorities and was working with 'leading external cyber security experts'. Separately, fashion brand The North Face, owned by VF Corporation, emailed some of its customers to tell them it discovered a 'small scale' attack in April this year. The brand said names and email addresses were taken, but financial details were not - with the company revealing hackers used 'credential stuffing', reported BBC News. This involves trying usernames and passwords stolen from another data breach in the hope customers have reused the credentials across multiple accounts. North Face said attackers may have got hold of some customers' postal addresses and purchase histories. A North Face spokeswoman told MailOnline: 'The cyber incident you are referring to is a small-scale cyber incident occurred on April 23, 2025, affecting our The North Face e-commerce website in the US only. 'The incident was contained very quickly on the same day it occurred. There was no impact on our systems and/or our consumer data in Europe whatsoever, including in the UK.' Cyber security expert Julius Cerniauskas, chief executive of web intelligence firm Oxylabs, told MailOnline that the latest breaches 'send a clear message that no brand is safe from cybercrime, not even the biggest names with the deepest pockets'. He added: 'Attackers are becoming more opportunistic and sophisticated, targeting brands that hold valuable customer data, not just credit card numbers. 'In the case of The North Face, credential stuffing shows how recycled passwords from past breaches continue to fuel new attacks. 'Cartier's incident demonstrates how even well-defended systems can be compromised. Whether it's luxury retail or everyday consumer brands, hackers are finding weak spots and exploiting them fast.' Mr Cerniauskas urged retailers to 'respond with more than apologies', encouraging them to enforce multi-factor authentication, tighten access controls and constantly monitor for threats. Speaking further about 'credential stuffing', Joe Jones, chief executive and founder of Pistachio, a cybersecurity attack simulation company, said consumers reusing passwords across multiple sites were a 'sitting duck' for breaches of this type. He told MailOnline: 'Credential stuffing, the method used here, only works because people reuse the same login details. 'If you've been caught in this breach, change your passwords immediately - especially if they match accounts like email or banking. 'Enable app-based two-factor authentication, not SMS, and remain hyper alert to scam emails, texts or even fake calls.' Mr Jones added: 'Hackers don't need your card details to do damage. With access to your name, email and order history, they can craft realistic phishing attempts that look and sound legitimate. This is how trust is weaponised.' Separately, lingerie retailer Victoria's Secret confirmed that a security incident relating to its information technology systems led it to temporarily shut down its website for a few days last week. The company said it shut down corporate systems and e-commerce website on May 26 and immediately enacted response protocols to contain and prevent unauthorised network access. Its website was restored on May 29. Victoria's Secret said the breach did not impact its financial results for the first quarter or cause a material disruption to its operations, but the second quarter could be hit by the additional expenses incurred following the incident. Meanwhile Marks and Spencer has faced heavy disruption since the Easter weekend after being struck by a major cyber attack which is expected to cost it about £300million in reduced profits. M&S, which runs 565 stores across the UK, halted orders on its website and saw empty shelves after being targeted by hackers. Customer personal data, which could have included names, email addresses, postal addresses and dates of birth, was also taken by hackers in the attack. M&S is still unable to process any online orders, although it is understood the retailer is hoping to partly restore this within two to three weeks. The firm is also now holding in-store recruitment open days to fill vacant positions at some stores in England because its online portal cannot take applications, reported The Grocer. An M&S branch in Peterborogh said in a social media post: 'There is no need to book - just turn up in between the timeframe and head to the top floor till points to get signed in and then a member of staff will help you.' Another store in Bristol asked potential applicants to drop off their CV in person for one of the 'part-time and full-time vacancies available in our food department'.
CNA
04-06-2025
- Business
- CNA
Japan must pursue payment innovation as society becomes cash-less, BOJ official says
TOKYO :Japan currently has no plan to issue a central bank digital currency (CBDC) but must continue innovating its payment and settlement system in an increasingly cash-less society, a senior central bank official said on Wednesday. Although banknote issuance remains high in Japan, usage of notes could fall significantly in the future amid rapid digitalisation, said Bank of Japan (BOJ) Executive Director Kazushige Kamiyama. "As such, Japan must consider what steps it can take now to ensure its retail settlement system is convenient, efficient, accessible universally, while being safe and resilient," he said in a speech. While the BOJ currently has no plan to issue a CBDC, it must keep up efforts to enhance the safety and efficiency of Japan's payment and settlement system, Kamiyama said in a meeting with private firms on a pilot programme for developing a digital yen. The BOJ has said no decision has been made yet on whether Japan will actually issue a CBDC, which must be made by the government and parliament. But the central bank has been conducting experiments and exchanging views with private firms on a digital yen, to be ready in case Japan decides to issue a CBDC.
Reuters
04-06-2025
- Business
- Reuters
Japan must pursue payment innovation as society becomes cash-less, BOJ official says
TOKYO, June 4 (Reuters) - Japan currently has no plan to issue a central bank digital currency (CBDC) but must continue innovating its payment and settlement system in an increasingly cash-less society, a senior central bank official said on Wednesday. Although banknote issuance remains high in Japan, usage of notes could fall significantly in the future amid rapid digitalisation, said Bank of Japan (BOJ) Executive Director Kazushige Kamiyama. "As such, Japan must consider what steps it can take now to ensure its retail settlement system is convenient, efficient, accessible universally, while being safe and resilient," he said in a speech. While the BOJ currently has no plan to issue a CBDC, it must keep up efforts to enhance the safety and efficiency of Japan's payment and settlement system, Kamiyama said in a meeting with private firms on a pilot programme for developing a digital yen. The BOJ has said no decision has been made yet on whether Japan will actually issue a CBDC, which must be made by the government and parliament. But the central bank has been conducting experiments and exchanging views with private firms on a digital yen, to be ready in case Japan decides to issue a CBDC. CBDCs are back in the spotlight after U.S. President Donald Trump banned work on a digital dollar in one of his first moves after regaining power in January.
