Kenya to Introduce Digital Tax, Germany Launches COVID-19 App, and WhatsApp Rolls Out WhatsApp Payments in Brazil

Africa

Kenya introduces digital tax

Kenya will charge tech giants a 1.4% tax on earnings in a bid to cash in on the growing popularity of online firms, it has been reported. The tax will be charged on earnings made in the country by the tech companies and will come into effect on July 1, 2020. Some of the companies likely to be affected include American tech giants Amazon, Facebook, and Netflix. America is against any digital tax regime as it feels it unfairly targets American firms.

Chipper Cash raises $13.8m funding

Chipper Cash has closed a $13.8m Series A funding round led by Deciens Capital, a TechCrunch report as said. Raptor Group, Liquid 2 Ventures and up to 500 other start-ups took part in the funding round. The start-up will use the cash to hire more staff for its offices in London, New York, Nairobi, San Francisco and Lagos. Chipper Cash is a cross-border African fintech start up that offers a no-fee-based P2P payment services to companies in Ghana, Uganda, Kenya, Nigeria, Tanzania, South Africa, and Rwanda.

Europe

Apple to face anti-competition probes in EU

Apple will be facing two separate anti-competition probes in the EU over its actions that allegedly limit competition, the BBC has reported. One investigation focuses on whether Apple broke competition rules by limiting what apps are installed on the iPad and iPhones. In the second case, EU’s investigative body wishes to understand if the company was right in not making Apple Pay’s tap-and-go feature available in other services. Apple considers the grounds for investigation as baseless and accused complainants of looking for free rides. “Our goal is simple: for our customers to have access to the best app or service of their choice, in a safe and secure environment,” the company said.

Germany launches coronavirus app

Germany has joined Italy and Poland to launch a coronavirus app in a move aimed at halting transmissions while setting the stage for safe travel within the EU, it has been reported. The Corona-Warn-App uses standard Bluetooth radio to send anonymous notifications if one has come into contact with an infected person. This new app stores logged data on smartphones, a departure from initial plans to store information on central servers. The EU has agreed on technical standards that would allow coronavirus apps to send notifications to each other. “As we approach the travel season, it is important to ensure that Europeans can use the app from their own country wherever they are travelling in the EU,” Commissioner Thierry Breton said.

The Americas

WhatsApp introduces payment system in Brazil

WhatsApp has rolled out a payment system in Brazil that would allow users to send money via chat, Reuters has reported. The company is working with local partner, Cielo, Brazil’s largest debit and credit card operator. This is the first nationwide rollout after tests were conducted in India in 2018. “We think we can help grow digital payments, help grow the digital economy with small businesses, and help support financial inclusion,” WhatsApp Brazil COO Matt Idema said. The payment system is built on Facebook Pay, and will be free for individuals; businesses will pay a 3.9% processing fee to receive payments.

Facebook to let users turn off political ads

Facebook will give users the option to turn off political ads as the 2020 election approaches, a report on BBC has said. “For those of you who’ve already made up your minds and just want the election to be over, we hear you — so we’re also introducing the ability to turn off seeing political ads,” Mark Zuckerberg said in a USA Today newspaper post. The option will be available to Instagram users as well. Users across platforms will have the option to block ads by any organisation that has the ‘paid for’ disclaimer. As part of efforts to promote voter registration, Facebook and Instagram feeds will come with a Voting Information Center banner at the top.

Asia

Saudi government to invest $1.49b in Jio

News has emerged that the Saudi Public Investment Fund (PIF) will purchase a 2.32% stake in digital unit, Jio Platforms. The revelation was made by Reliance Industries, Jio Platform’s parent company, and was published by Reuters. “We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth,” PIF Governor Yasir Al-Rumayyan said about the purchase. This would mean that Reliance Industries has sold up to 24.7% of Jio Platforms for a reputed $15 billion.

Thai central bank to develop infrastructure for digital currency

The Thai central bank has announced plans to build a payment system for businesses doing transactions with the Central Bank Digital Currency (CBDC), Reuters has reported. CBDC is traditional money in the form of digital currency that is issued by central banks around the world. “The project marks an important step in broadening CBDC’s scope and adoption to wider audiences, starting with large corporates,” the central bank said. Unlike traditional cryptocurrencies, CBDC can only be issued by a centralised authority that regulates its usage in the economy.