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Yahoo
14-05-2025
- Business
- Yahoo
Nevada bill would charter new payment banks
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. A bill in the Nevada Assembly would offer a special charter for new payment banks, aiming to allow financial technology companies and others to access federal payment rails and help merchants bypass many of the expenses associated with traditional card payments. The new licensing system would allow retailers, payment processors, remittance companies and others to apply as banks for direct access to U.S. payment systems like ACH, FedWire and FedNow. As a result, Nevada retailers – and potentially consumers – would benefit from lower transaction costs for credit and debit cards, say supporters of the proposal. Card payments carry interchange fees that U.S. merchants have decried for years as both excessive and onerous. The goal would be to eliminate the 'middlemen' that add costs and delays to payment settlements, its sponsor, Assembly Speaker Steve Yeager, a Democrat, said last month at a committee hearing on the bill. The Retail Association of Nevada, which represents about 2,000 mostly small retailers, is lobbying heavily for the proposal in Carson City, said Bryan Wachter, a senior vice president at the retail association. The bill would allow Nevada to become 'the first state in the nation to offer a charter built for the digital economy,' Yeager said. The bill would prohibit the new payment banks from lending and 'lending-related' activities and impose a 0.0025% fee per transaction on merchant-acquiring activity. Merchants have had little choice but to use 'the monopolies' that govern payment rails and the bill is an effort to empower new types of banks to offer lower-cost transactions, said Wachter, who testified with Yeager at the April hearing. Payment banks would not be required to be insured by the Federal Deposit Insurance Corp. Regulators at the Nevada Financial Institutions Division would determine whether companies have sufficient protections on funds to grant a license, Wachter told the committee. Smaller businesses 'have had no choice but to go through layers of intermediaries just to process everyday transactions,' Yeager told his colleagues on the Assembly Committee on Commerce and Labor. The legislation would put Nevada 'at the cutting edge of financial innovation,' and create new financial jobs and a steady revenue stream for the state, he said. Supporters are confident they have sufficient support to pass the bill before Nevada's legislative session ends June 2, Wachter said Wednesday in an interview. If passed, 'I do think that there might be a payments processing company, an internet company, some other companies that exist in this space that comes in and says we can create a better product,' he said. The Nevada Bankers Association was concerned that the new banks could increase state assessments on its banking members to fund new regulators and oversight, Connor Cain, with the NBA's lobbying firm, Carrara Nevada, told lawmakers at the same hearing. The banks are 'encouraged' by dialogue on an amendment to the bill to ensure that current Nevada banks do not bear new financial costs to implement the legislation, Cain said. The Electronic Transactions Association, which counts banks among its members, has not taken a position on the bill, a spokesman said Tuesday. Other states have previously enacted special banking charters, including Connecticut, Georgia and Wyoming, although the Nevada legislation, if it passes, would make the state the first to license and regulate payment banks without the FDIC insurance requirement, Wachter said. In recent years, Connecticut has revived its 1990s-era uninsured bank charter, created to allow companies to offer some financial services without taking deposits, as a way to lure startup fintechs to the state. In March, Stripe applied with Georgia regulators for a merchant acquirer limited purpose banking charter so it could access card networks directly, without a bank partner. Last year, Georgia granted payment processor Fiserv a bank charter. Smaller merchants in Nevada typically pay fees of 2% to 3% per transaction, which cost about 0.25% for traditional acquiring banks to facilitate, Wachter told the committee. The narrower scope of a payment bank – without lending and other full-service bank offerings – would mean lower operating costs for a license holder and less overhead to fund via its charges to merchants, Wachter said. 'Because you aren't having to be a full-fledged, full-service bank, we're hoping that it will actually be cheaper to operate those licenses and that cost savings would then also be passed along to those merchants,' he said at the hearing. At a typical supermarket, banks and card issuers enjoy higher profit margins on a card payment than the grocer selling the shopper a cart full of food, Wachter said, offering legislators an example of how the bill could help retailers and consumers. With new payment tools, many merchants would ultimately be able to avoid including their payment expenses in the price of the goods they sell, Wachter said. The legislation would allow Nevada to emulate payment-processing systems common in Europe, where payment specialists have lowered transaction costs for businesses and consumers, Paul Dwyer, co-founder and CEO of money transmitter Viamericas, told the committee. Routing consumer transactions via full-service banks to access payment rails 'is a fount of inefficiency,' he said. Recommended Reading Swipe fee foes find legislative support in almost a dozen states Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
AppTech enters digital banking space with CoreBanking solution
AppTech Payments has rolled out its new CoreBanking solution, which is integrated with the FINZEO Platform, marking the company's foray into the digital banking sector. The introduction of this solution comes alongside the onboarding of its first banking client, indicating a strategic move into retail financial services. The CoreBanking solution is designed to enhance operational efficiency for banks, facilitate market entry, and reduce dependence on outdated technologies. This offering includes features such as digital onboarding, FedWire, FedACH, compliance, virtual bank accounts, risk management, ledger, FedNow, and both physical and virtual Cards. By utilising the FINZEO client offering, banks can expedite the implementation of these solutions, benefiting from AppTech's established client base for transaction fees and deposits. The company anticipates sustained revenue growth through 2025, tapping into previously unavailable revenue sources. In terms of financial projections, AppTech expects to generate $40,000 in revenue within the first week of the CoreBanking solution's launch, with monthly revenue anticipated to exceed $500,000 by the end of 2025. The current pipeline of banks integrating the FINZEO platform positions the CoreBanking solution for rapid adoption, particularly among community banking clients, believes AppTech. AppTech CEO Thomas DeRosa said: 'Our CoreBanking solution is more than a product—it changes how banks can operate and grow. 'By integrating our technology with unmatched client acquisition capabilities, we eliminate inefficiencies and drive revenue at scale.' AppTech is preparing for growth with new partnerships and product launches in April, potentially leading to millions of transactions. To facilitate this expansion, the company has restructured its management team and enhanced its technology infrastructure. In May 2024, AppTech Payments launched its Banking-as-a-Service (BaaS) platform after a successful pilot programme. The company leveraged this BaaS solution to introduce InstaCash, which offers virtual accounts, debit and credit cards, and high-yield financial products. "AppTech enters digital banking space with CoreBanking solution" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
22-04-2025
- Business
- Yahoo
AppTech Unveils Revolutionary CoreBanking Solution, Projecting Explosive Growth with Innovative Client Offerings
CARLSBAD, Calif., April 22, 2025 (GLOBE NEWSWIRE) -- AppTech Payments Corp. (NASDAQ: APCX) has launched its groundbreaking CoreBanking solution, seamlessly integrated with the FINZEO Platform, alongside its first banking client. This milestone signals AppTech's entry into digital banking and retail financial services, with the company bringing both cutting-edge products and customers directly to financial institutions. Transforming Banking Efficiency and Revenue PotentialThe CoreBanking solution will help banks achieve operational efficiency, enter new markets, eliminate reliance on antiquated technologies, and remove the entry barriers of entry. CoreBanking delivers Digital Onboarding, FedWire, FedACH, Compliance, Virtual Bank Accounts, Risk Management, Ledger, FedNow, and Physical and Virtual Cards. Coupled with the tightly integrated FINZEO client offering, banks can realize the benefits of these innovative solutions faster by leveraging AppTech's existing client base for transaction fees and deposits ready for bank launch. AppTech expects sustained revenue growth through 2025 and beyond through sources not previously available. 'Our CoreBanking solution is more than a product—it changes how banks can operate and grow,' said Thomas DeRosa, CEO of AppTech. 'By integrating our technology with unmatched client acquisition capabilities, we eliminate inefficiencies and drive revenue at scale.' Projected Growth and ScalabilityAppTech's CoreBanking launch is expected to generate $40,000 in revenue in its first week, with monthly revenue projected to scale beyond $500,000 by the end of 2025. With our current pipeline of banks integrating the FINZEO platform, the CoreBanking solution is primed for rapid adoption, including expansion to community banking clients in the FINZEO pipeline. As additional partnerships and product launches roll out in April, AppTech is poised for transformational growth, increasing to millions of transactions. AppTech has restructured its management team and upgraded its technology to drive revenue through the final three quarters of 2025. With a visionary strategy, enhanced staffing, and a growing base of larger clients, the company intends to redefine digital banking and payment solutions. About AppTech Payments Corp. AppTech Payments Corp. (NASDAQ: APCX) provides digital financial services for financial institutions, corporations, small and midsized enterprises ('SMEs'), and consumers through the Company's scalable cloud-based platform architecture and infrastructure. For more information, please visit Forward-Looking Statements This press release may contain forward-looking statements that are inherently subject to risks and uncertainties. Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as 'anticipate, believe, estimate, expect, forecast, intend, may, plan, project, predict, should, will' and similar expressions as they relate to AppTech are intended to identify such forward-looking statements. These risks and uncertainties include but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in methods of marketing, delays in manufacturing or distribution, changes in customer order patterns, changes in customer offering mix, and various other factors beyond the Company's control. Actual events or results may differ materially from those described in this press release due to any of these factors. AppTech is under no obligation to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. AppTech Payments Corp. 760-707-5959 info@ in to access your portfolio
