Digital finance is gaining momentum
Google Payment, owned by Alphabet Inc, obtained a license for digital currency in Lithuania. The company has joined a growing number of fintech firms that received permission from the Baltic country to provide financial services throughout the European Union.
The license will allow Google to process payments, publish virtual currency and interact with e-wallets. The license issued by the Lithuanian Central Bank entitles it to operate throughout the EU.
Marius Jurgilas, member of the Board of the Central Bank of Lithuania commented in his interview that for several years they have been working tirelessly on the formation of a favorable fintech ecosystem. According to him, the legal environment and the benefits it provides have been recognized as the leaders of the world-class financial industry.
Currently, Google Pay allows customers to store card data in a digital wallet, which is used to make purchases on the Internet or in the application. It also gives the opportunity to use mobile phones as payment devices in the store.
Although the e-money license allows corporations to store and transfer customer funds digitally, it does not allow them to offer full-fledged banking services such as deposit accounts, loans or mortgages.
By issuing licenses for electronic money for three months, Lithuania positioned itself as one of the most modern countries in the field of EU licensing. The Baltic country has granted a total of 39 e-money licenses, second only to the UK 128.
As of January 2019, the Lithuanian Fintech Association includes more than one hundred licensed companies. The main number of these companies is engaged in payment services and electronic money
It is also worth noting that one of the strategic objectives of the Central Bank of Lithuania for 2017-2020 is to promote an environment conducive to the introduction of technology.
Digital finance attracts the attention of major brands.
Didi Chuxing and digital finance
The Chinese company Didi Chuxing has launched a number of financial products, including crowdfunding and lending. This news came after the reorganization of the entire corporation announced in December 2018, which was aimed at improving the security of the platform and the efficiency of work.
The firm reported that the new services have been tested in 10 cities and implemented across the country. These include capital management, lending, and crowdfunding.
Thus, the new services turn Didi Chuxing into a competitor of Alibaba Group Holding Ltd and Tencent Holdings Ltd.
The company itself is faced with new rules and increased control by the authorities after a series of high-profile security incidents.
By the way, the opening of the financial services department DiDi took place in early 2018. It was then created with the aim of founding a number of products designed for drivers and customers of the service. The corporation said it planed to spend $ 1 billion to promote its own financial programs. In the future, according to experts, Didi may also become a major opponent of the Chinese giants Alipay and WeChat, as well as local banks.