UK Imposed €132.7 Million of GDPR Fines, more than Germany and Italy Combined
The General Data Protection Regulation (GDPR) continues causing hefty fines and penalties for businesses and organizations across European countries even two years after coming into force.
According to data presented by Buy Shares, the United Kingdom tops the list of the most expensive data breach penalties with €132.7 million in total value of GDPR fines, more than German and Italy combined.
Cumulative Value of GDPR Fines Hit €344 Million, a €119 Million Increase in 2020
The primary reason for such a high cumulative value of GDPR fines in the United Kingdom is the data breach penalty imposed by the UK’s data protection authority, ICO, to Marriott International. In November 2018, the American multinational company was fined with €110.4 million after reporting a cyber incident that exposed nearly 340 million guest records.
Last week, the ICO fined British Airways €22 million for failing to protect the personal and financial details of more than 400,000 of its customers, the second-largest GDPR fine in the United Kingdom. The penalty is considerably smaller than the €204.6 million that the ICO initially said it intended to issue back in 2019 after the Magecart group used card skimming to collect the personal and payment information of British Airways` customers.
Far below the United Kingdom, Germany ranked as the second-leading country in Europe with €61.6 million in the cumulative value of GDPR fines, revealed the GDPR Enforcement Tracker data. On October 1st, 2020, H&M Hennes & Mauritz Online Shop was fined with €35.2 million for the insufficient legal basis for data processing, the severest GDPR penalty in the country.
Italian data protection authority (Garante) imposed €57.3 million worth of GDPR fines so far, ranking in third place among European countries. On January 15th, 2020, telecommunications operator TIM was fined €27.8 million for unlawful data processing, non-compliant aggressive marketing strategy, and invalid collection of consents, the steepest penalty in Italy.
France ranked fourth among the European countries with €51.3 million worth of GDPR fines. Austria, Sweden, and Spain follow, with, €18 million, €7million, and €3.9 million, respectively.
Statistics indicate the cumulative value of GDPR fines and penalties hit over €344 million in October, with almost €119 million worth of new fines imposed in 2020.
Top Five GDPR Penalties Account for 70% of Cumulative Fine Value
Behind Marriott’s €110.4 million worth GDPR fine, Google holds second place on the list of the highest data breach penalties. The US tech giant was fined €50 million by France’s data protection regulator, CNIL, for not providing enough information to users about its data consent policies and control in using their data.
H&M Hennes & Mauritz Online Shop ranked third on this list with €35.2 million worth GDPR fine. Italian telecommunications operator TIM and British Airways round the top five list with €27.8 million and €22 million, respectively.
Statistics show the five biggest data breach penalties cost more than €245 million, or 70% of cumulative GDPR fine value.
Pan African Payments Company Cellulant Acquires PSP License in Ghana as it Rolls Out a Digital Payments Solution For Businesses
Digital payments have seen tremendous growth in the past couple of years. As of January 2021, 38.9 percent of the population aged 15 years and older had a mobile money account in Ghana. The share of mobile money users has increased over the previous three years as Ghanaians have gradually adopted a robust digital payment infrastructure.
However, cash remains a dominant preference for payments. One of the contributing factors for the preference of cash over digital payments is the high costs of digital payments that are often passed on to users, a lack of trust in, or familiarity with digital payments.
To curb these inefficiencies in digital payments, Cellulant has successfully rolled out Tingg, a digital payments platform enabling businesses and their consumers to accept and make payments seamlessly.
This announcement comes after the Central Bank of Ghana issued Cellulant a Payment Services Provider (PSP) License. The PSP License allows Cellulant to aggregate merchant services, process financial services, acquire merchants; deploy POS systems, and aggregate payments for banks, institutions, and the general public. The license is a requirement under the Payment Services Act 2019 which mandates that all Financial Technology or digital payments companies be licensed by the Bank of Ghana before they can operate in the country.
With a view to maintaining a sound financial system, promoting financial inclusion and innovation, and ensuring the safety, security, and stability of Ghana’s financial sector, The Bank of Ghana redefined the categories and permissible activities for financial technology companies with PSP enhanced licenses. Allowed services include mobile payments, bulk payments, and mobile banking. This license also allows for the provision of 3rd party payment gateways, a marketplace for duly regulated financial service providers, merchant acquisition and aggregation, the printing, and presentation of EMV cards, inward international remittance services, as well as limited use of closed-loop virtual cards.
Cellulant is launching Tingg in Ghana to provide the best customer experience for all persons and businesses looking to digitize their payments, collect, and disburse to customers today.
Cellulant Ghana Country Manager, Eric Kortey, expressed delight over the product launch and license acquisition, sharing his optimism about the future of payments and the Fintech ecosystem in the country. In his words, “We believe that Ghana is fast becoming a hub for fintech in Africa. Being licensed by the Bank of Ghana means a lot to the growth of our industry and opens doors to increased security and confidence in digital payments systems. Cellulant’s digital payments platform is allowing every Ghanaian to pay for their goods and services through any payment channel of their choice.”
Speaking on the rollout of Tingg he adds, “Cellulant is addressing the fragmentation of payments for both businesses and their consumers. The digital platform, which recently also launched in Zambia, offers simplified payment tools and processes for a merchant to manage their payments. As a result, businesses can allow their customers to make payments for goods and services using locally relevant payment options.”
Hundreds of businesses have already begun using Tingg to collect digitally from their customers across Ghana.
Fintech CEO: Fed Governor Brainard Points to CBDCs as Sustainable Monetary Policy
Late last week, Federal Reserve Governor Lael Brainard laid out the case for an American CBDC. In her time speaking with the Aspen Institute, she called for “urgency” around the matter, including noting that China is far ahead in the race for a central bank digital currency. Additionally, she suggested that a CBDC would shorten international intermediation chains, keep citizens utilizing government-backed currency rather than moving toward stablecoins, and getting government payments to the unbanked population with greater ease.
“Leaders of the Fed have been moving cautiously towards acknowledging that an American CBDC will exist in the future, but Governor Brainard’s commentary is really the first that lays out the strategic benefits while dismissing a future without a CBDC as impractical. The faster central bank bureaucrats adopt her thinking, the better positioned the country will be strategical,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.
“The dollar is very dominant in international payments, and if you have the other major jurisdictions in the world with a digital currency, a CBDC offering, and the U.S. doesn’t have one, I just, I can’t wrap my head around that… That just doesn’t sound like a sustainable future to me,” Brainard is quoted as saying.
“We’ve been talking recently about the pressure that China’s leadership on CBDC development puts on regional players like Vietnam, but every major power should see the warning signs here. The race to a functional, widely adopted CBDC is this generation’s Race to Space. The United States shouldn’t rest on its laurels to take a wait-and-see approach here. This is the time to be bold and show leadership. Governor Brainard is correct. A monetary policy without employing a CBDC simply is not sustainable,” said Gardner.
Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list that includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.
“When history looks back at the emergence of CBDCs, I think we’re going to, only then, truly understand what a strategic advantage early mover status is. The world is still grappling with attempting to wrap their arms around pandemic-related issues, but that isn’t stopping technology’s ever-progressing march forward. China is taking innovation seriously, and, if for no other reason than that alone, it would seem that other global leaders should be investing heavily. Countries will need to adapt, or they will get left behind,” said Gardner.
Kudi and Onepipe’s Partners To Provide Financial Access To Underserved Customers in Nigeria
Fintech infrastructure startup, OnePipe has partnered with Kudi, a payments service company to provide more inclusive financial services to millions of underserved customers across Nigeria via Kudi Benefits Account.
Founded in 2018, OnePipe, leveraging its API-driven partnerships, is focused on working with organisations to embed and launch financial services like accounts, improved payments and credit within their products.
OnePipe’s CEO, Ope Adeoye reiterated the need for incumbent financial services stakeholders to combine resources with innovators to ensure that underserved Nigerians are included in the digital financial ecosystem. In his words “the collaboration of Polaris Bank, Migo, Zitra investments, Kudi and of course OnePipe has birthed the value proposition driving the Kudi Benefits Account.”
Polaris via its digital banking platform, Vulte, facilitates the provisioning of full-fledged, regulatory compliant accounts, Migo and Zitra Investments provide the lending resources and all of these are stitched together via OnePipe’s versatile API gateway resulting in Kudi Benefits Account – “A NUBAN enabled account that provides services and benefits for Kudi’s unique customer base”
This collaboration with Kudi is set to deepen the financial access to millions of users who already rely on Kudi’s payment service to withdraw cash, send cash and pay their bills through its fast-growing network of over 50,000 Mobile Money Agents across Nigeria.
Speaking on this partnership, Kudi’s CEO, Yinka Adewale said that; “it is important to us to continue to explore various channels to drive financial access to every Nigerian regardless of who they are or where they live. Leveraging OnePipe’s infrastructure, partnership with Polaris Bank and others, we can now provide full utility, NUBAN bank accounts laced with a no-friction credit proposition via kudibenefits.chat and very soon we will be issuing debit cards to millions of users and expand our service offerings to them”
According to a recent EFInA report, over 38 Million Nigerian adults still do not have access to digitized financial services. This highlights the need for improved efforts and more innovative solutions like the Kudi Benefits Account to drive financial inclusion in Nigeria.
Kudi is a leading provider of cash collection, payment and other banking solutions in underserved markets in Nigeria. With a vision to make financial services accessible and affordable for all Africans, Kudi provides millions of users access to services such as cash withdrawal, cash transfer, bill payments, wallet top-ups and more through its fast-growing network of over 50,000 Agents.
Business4 weeks ago
How to Redeem Gift Cards, Gift Card Rates in Nigeria
Government2 weeks ago
Security Operatives Arrest Sunday Igboho in Cotonou, Benin Republic
Government3 weeks ago
National Intelligence Agency Receives N4.87 Budget to Track Conversations
Finance4 weeks ago
African Development Fund Extends $83.6 Million in Grants to Boost Ethiopia-Djibouti Electricity Trade
Government3 weeks ago
South Africa Deploys Army to Quell Unrest Linked to Zuma Imprisonment
News3 weeks ago
FG Awards Federal Road Contract Worth N309B To Dangote Group
Banking Sector3 weeks ago
Guaranty Trust Bank Completes Corporate Re-organisation, Rebrands to Guaranty Trust Holding Company Plc
Business3 weeks ago
Three Entrepreneurs in Botswana, Zambia, and Malawi Beat over 1,000 Applicants to Win Prestigious SEED Award