E-commerce and trade

AI driving transformation in financial services

At YourStory’s Tech Leaders’ Conclave, Ankur Pal, Chief Data Scientist at Aplazo, discussed how AI is transforming the financial services industry. Aplazo aims to address financial inclusion, especially in developing countries with low credit card penetration, by providing fair and transparent solutions like their Buy Now Pay Later (BNPL) platform. Pal highlighted AI’s potential to revolutionise fintech by creating personalised financial products and improving operational efficiency, ultimately reducing friction for consumers and institutions.

Pal emphasised AI’s role in enhancing decision-making processes, reducing fraud, and improving customer service. AI-driven solutions enable real-time data processing, which helps financial institutions detect and prevent fraud more effectively.

Additionally, AI can automate routine tasks, allowing financial professionals to focus on strategic initiatives. The real-time decision-making is becoming increasingly important as financial institutions invest in event streaming infrastructure and machine learning operations (MLOps) stacks to manage high transaction volumes with low latency.

Overcoming financial inclusion barriers was a key topic, with Pal noting that many developing countries still have a large unbanked or underbanked population despite high bank account ownership. AI can bridge this gap by offering tailored financial solutions for underserved communities.

Pal also discussed the importance of leadership and the skill sets required for building successful AI teams. He stressed the need for adaptability, continuous learning, and a deep understanding of both technology and business to create valuable AI solutions. While AI will transform job roles, it will also create new opportunities, making it crucial for leaders to foster a culture of innovation.

Alipay launches tap-and-pay feature in China

Alipay, China’s leading mobile payment service, has introduced a new tap-and-pay feature to simplify the checkout process for merchants and enhance user experience on Android and iPhone devices.

The Ant Group-operated service, recognised for popularising QR code payments, launched the Tap! function, allowing users to complete transactions by tapping their smartphones on a merchant’s USB device at the register. The new tap-and-pay service, now being introduced in major cities in China and available to over 2,300 brands and merchants in major cities like Shanghai, Chengdu, Wuhan, and Hangzhou, aims to speed up in-store mobile payments.

That move indicates Alipay’s ongoing efforts to advance contactless payment methods, following similar features by Samsung, Google, and Apple worldwide. Usually, tap-and-pay functions use Near-Field Communication (NFC) technology to enable secure transactions and data exchanges with a simple tap of a smart device within a 4-centimeter range.

However, Alipay stated that its Tap! feature differs from the NFC payment methods of Apple Pay, Samsung Pay, and Google Pay, which use card emulation. Instead, Alipay’s service turns a smartphone into an NFC tag reader, simplifying the QR code payment process with a single tap.

Why does this matter?

Tech companies’ increasing foray into contactless payments shapes the future of money transactions at point-of-sale (POS) purchases, highlighting the ongoing shift towards contactless payments on mobile devices such as smartphones and wearables. That evolution grants tech companies significant influence over consumer payment options, making it an important area to monitor.

Chip boom propels TSMC into top tech giants

The recent surge of Taiwanese chip giant TSMC into the ranks of the world’s most valuable companies underscores the significant impact of the generative AI revolution on Wall Street. TSMC briefly surpassed the $1 trillion market capitalisation mark, surpassing Tesla to become the seventh most valuable tech giant. The milestone occurred on a day when Alphabet, Apple, and Meta all reached record highs.

Microsoft and Apple dominate the top echelon of the world’s most valuable companies, followed closely by AI chip designer Nvidia. These companies boast global stock market valuations exceeding $3 trillion. Alphabet and Amazon, both exceeding $2 trillion, also feature prominently in the ranking, while Saudi oil giant Aramco, Meta, TSMC, and Tesla complete the top ten.

The semiconductor industry, now the leading sector in the S&P 500, is experiencing unprecedented growth due to the rising demand for chips driven by generative AI. That boom attracts significant investment and government subsidies, such as the Biden administration’s multi-billion-dollar support for US chip factories. Worldwide semiconductor sales are projected to reach a record $611.2 billion in 2024, with further growth expected in subsequent years.

Nvidia, a key player in AI chip design, has seen its market capitalisation increase eightfold since the launch of ChatGPT in November 2022. Nvidia’s GPUs are essential for building generative AI, propelling the company to briefly become the world’s most valuable publicly traded company. Analysts at Wedbush Securities highlight Nvidia’s GPU chips as the new “gold or oil” of the tech sector, with Nvidia, Apple, and Microsoft racing toward a $4 trillion market valuation. TSMC, which manufactures the bulk of Nvidia’s products, is poised to benefit significantly from this booming demand.

Thousands of event tickets leaked because of Ticketmaster hack

In an ongoing extortion scheme targeting Ticketmaster, nearly 39,000 print-at-home tickets for 150 upcoming concerts and events featuring artists like Pearl Jam, Phish, Tate McCrae, and Foo Fighters have been leaked by threat actors. The person responsible, known as ‘Sp1derHunters,’ is the same individual who sold data stolen from recent data breaches targeting Snowflake, a third-party cloud database provider.

The chain of events began in April when threat actors initiated the download of Snowflake databases from over 165 organisations using stolen credentials acquired through information-stealing malware. Subsequently, in May, a prominent threat actor named ShinyHunters started to sell the data of 560 million Ticketmaster customers, allegedly extracted from Ticketmaster’s Snowflake account. Ticketmaster later verified that their data had indeed been compromised through their Snowflake account.

Initially, the threat actors demanded a ransom of $500,000 from Ticketmaster to prevent the dissemination or sale of the data to other malicious actors. However, a recent development saw the same threat actors leaking 166,000 Taylor Swift ticket barcodes and increasing their demand to $2 million.
In response to the situation, Ticketmaster asserted that the leaked data was ineffective due to their anti-fraud measures with a system that continuously generates unique mobile barcodes. According to Ticketmaster, their SafeTix technology safeguards tickets by automatically refreshing barcodes every few seconds, making them impervious to theft or replication.

Contrary to Ticketmaster’s claims, Sp1d3rHunters refuted the assertion, stating that numerous print-at-home tickets with unalterable barcodes had been stolen. The threat actor emphasised that Ticketmaster’s ticket database has online and physical ticket types, such as Ticketfast, e-ticket, and mail, which are printed and cannot be automatically refreshed. Instead, they suggested that Ticketmaster must invalidate and reissue the tickets to affected customers.

The threat actors shared a link to a CSV file containing the barcode data for 38,745 TicketFast tickets, revealing ticket information for various events and concerts, including those featuring Aerosmith, Alanis Morissette, Billy Joel & Sting, Bruce Springsteen, Carrie Underwood, Cirque du Soleil, Dave Matthews Band, Foo Fighters, Metallica, Pearl Jam, Phish, P!NK, Red Hot Chili Peppers, Stevie Nicks, STING, Tate McRae, and $uicideboy$.

Talen defends Amazon agreement against utility claims

Talen Energy has urged US regulators to dismiss a challenge to its recent agreement with Amazon for a data centre, which has faced opposition from electric utilities like American Electric Power and Exelon. These utilities argue that the deal could lead to higher power bills for the public. Talen countered this claim, stating that the interconnection agreement for the Amazon data centre would not result in increased costs for utility customers or impact grid reliability.

In its filing with the Federal Energy Regulatory Commission (FERC), Talen criticised the challenge as an unlawful attempt to derail a straightforward interconnection service agreement amendment. They argued it was being turned into a national debate on the future of data centre energy consumption, which was unwarranted. The decision by FERC on this matter could set a precedent for future deals where data centres are co-located with power plants, enabling quicker power supply without long interconnection delays.

Talen’s agreement, announced in March, involves selling electricity and a data centre campus at its Pennsylvania nuclear power plant to Amazon Web Services. However, this deal would provide Amazon’s data centres with up to 960 megawatts of electric capacity, sufficient to power around a million homes. Utilities like American Electric Power and Exelon have raised concerns that the agreement could impose a $140 million annual cost shift to regular ratepayers and potentially disrupt the grid during unexpected power plant interruptions.

Talen warned that if FERC allowed the challenge to proceed or rejected the agreement, it could stifle data centre expansion and deter the construction of new power plants amidst rising US electricity demand. Conversely, AEP and Exelon argue that the deal, if approved, could unfairly burden everyday ratepayers with costs associated with power infrastructure that doesn’t benefit them. The timing of FERC’s decision on the case remains uncertain.

Why does it matter?

The IATSE’s tentative agreement represents a significant step forward in securing fair wages and job protections for Hollywood’s behind-the-scenes workers, ensuring that the rapid technological advancements do not come at the expense of human employment.

Russia considers cryptocurrencies for international payments amid Western sanctions

Russia’s central bank has advised businesses to adopt ‘multiple choice solutions,’ including cryptocurrencies and other digital assets, to manage payments with foreign partners amidst Western sanctions related to Ukraine conflict. The sanctions have severely impacted Russia’s trade with non-sanctioning countries like China, India, the UAE, and Turkey. Key financial institutions, such as the Moscow Stock Exchange and Russia’s SWIFT alternative, have been targeted, exacerbating the challenges for the Russian economy.

Elvira Nabiullina, the central bank governor, highlighted at a financial conference in St Petersburg that the main economic hurdle is the disruption in payment systems. She noted that new financial technologies offer unprecedented opportunities, prompting the central bank to relax its stance on cryptocurrencies for international payments. Businesses have become innovative and discreet in finding solutions, often not disclosing their methods even to the authorities.

Nabiullina also discussed ongoing efforts to establish a new global payment system independent of Western institutions, noting that countries like Russia and its BRICS partners are feeling increasingly vulnerable relying on a single international payment framework. The proposed BRICS Bridge payments system aims to integrate the financial systems of member nations, though progress has been slow and complex.

Adding to the discussion, Andrei Kostin, head of Russia’s second-largest lender VTB, emphasised the sensitivity of international payment mechanisms. He suggested that such information should be classified as a state secret to prevent quick countermeasures from Western entities, implying that Western diplomats closely monitor Russian financial strategies.

EU considers imposing tariffs on cheap Chinese online goods

The EU plans to impose customs duties on inexpensive goods purchased from online Chinese retailers such as Temu, Shein, and AliExpress. Under EU regulations, items bought online from non-EU countries are exempt from customs duties if their value is under €150. However, the European Commission is considering eliminating this threshold due to the overwhelming volume of e-commerce, with two billion parcels valued under €150 arriving in the EU from outside countries in 2023 alone.

Initially part of a broader customs overhaul introduced in May 2023, the proposed reform may now be accelerated to address the influx of low-cost imports. Critics, particularly in the United States, argue that companies like Shein and Temu exploit tax exemptions to offer products at significantly low prices, such as dresses for $8 and smartwatches for $25, undercutting local competitors.

Why does it matter?

Germany is one of the EU countries that supports an overhaul of the EU import taxes that could remove the duty-free exemption for parcels under €150. Germany’s leading retail association, Handelsverband Deutschland (HDE), has urged the government to act, claiming the exemption has caused a surge in small parcels from online platforms entering the EU. However, not everyone agrees. Ecommerce Europe, representing companies like Amazon and eBay, cautions that removing the duty-free limit could heighten trade tensions and provoke retaliatory actions from key partners such as the US.

AI shaping the future of UBS banking

According to Sabine Keller-Busse, head of the Swiss bank’s domestic business, UBS is experiencing a significant shift in AI-driven client interactions. She compared this change to patients visiting doctors with pre-formed ideas about their ailments, noting that clients now use AI to generate proposals for the bank.

Speaking at the Point Zero Forum in Zurich, Keller-Busse highlighted the impact of tools like ChatGPT in making more data available, emphasising that UBS must adapt to this new client behaviour.

The bank has been integrating AI into its services and products, launching a pilot programme last year for instant credit aimed at small and mid-sized businesses with urgent liquidity needs. However, this service allows the process to bypass credit officers, expediting the approval for standard credit products. Keller-Busse described this as the beginning of AI’s transformative potential in the banking industry.

As AI continues to evolve, UBS is keenly aware of its growing role in shaping client interactions and service delivery. The bank’s early adoption of AI-driven solutions demonstrates its commitment to leveraging technology to meet its clients’ changing needs, promising future innovations.

Meta responds to photo tagging issues with new AI labels

Meta has announced a significant update regarding using AI labels across its platforms, replacing the ‘Made with AI’ tag with ‘AI info’. This change comes after widespread complaints about the incorrect tagging of photos. For instance, a historical photograph captured on film four decades ago was mistakenly labelled AI-generated when uploaded with basic editing tools like Adobe’s cropping feature.

Kate McLaughlin, a spokesperson for Meta, emphasised that the company is continuously refining its AI products and collaborating closely with industry partners on AI labelling standards. The new ‘AI info’ label aims to clarify that content may have been modified with AI tools rather than solely created by AI.

The issue primarily stems from how metadata tools like Adobe Photoshop apply information to images, which platforms interpret. Following the expansion of its AI content labelling policies, daily photos shared on Meta’s platforms, such as Instagram and Facebook, were erroneously tagged as ‘Made with AI’.

Initially, the updated labelling will roll out on mobile apps before extending to web platforms. Clicking on the ‘AI info’ tag will display a message similar to the previous label, explaining why it was applied and acknowledging the use of AI-powered editing tools like Generative Fill. Despite advancements in metadata tagging technology like C2PA, distinguishing between AI-generated and authentic images remains a work in progress.

ICO whale moves Ethereum to Kraken

Despite a significant upswing in Ethereum’s price today, an ICO whale has moved a large amount of its holdings to a centralised exchange. Specifically, 7,000 ETH, valued at $24.28 million, were transferred to the Kraken exchange after 209 days of dormancy. The move has raised concerns among Ethereum investors, especially as it comes amid substantial weekly outflows.

Ethereum has seen the largest outflows since August 2022, with $60.7 million in weekly outflows reported by CoinShares. Over the past two weeks, the total outflows amass $119 million, making Ethereum the worst-performing asset in year-to-date net flows. The year-to-date outflows amount to $25 million, further exacerbating investor worries about the asset’s future performance.

Additionally, the US SEC’s recent postponement of the spot ETH ETF launch process has added to Ethereum’s uncertainty. The SEC’s decision to return the S-1 amendment forms for refiling has fuelled speculation about Ethereum’s future in the market.

Despite these concerns, Ethereum’s price has surged today, reflecting a broader positive movement in the crypto market. However, the ongoing outflows and regulatory delays continue to cast a shadow over the asset’s prospects.