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FSS Expands in EU to Set Up a Transaction Processing Centre in US

FSS is looking at two strategies for the US market

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FSS has recently bagged an order from QRails Inc for its 3DS 2.0 solution enabling frictionless payment. Pixabay

Targeting 50 per cent of its turnover from overseas operations, payments technology and transaction processing major Financial Software and Systems (FSS) is expanding its European operations by venturing into Netherlands, a top company official said.

FSS Managing Director (MD) Nagaraj Mylandla told IANS here that the company is also planning to set up a transaction processing centre in the US.

“In the last fiscal our revenue was Rs 1,100 crore with a split of 80 per cent domestic and 20 per cent overseas. In the next two years we expect the domestic:overseas ratio to be 60:40,” he said.

According to Mylandla, FSS is looking at two strategies for the US market – either buy into an existing transaction processing player or set up its own infrastructure ground up.

FSS, EU, Transaction Processing Centre
Payments technology and transaction processing major Financial Software and Systems (FSS) is expanding its European operations. Flickr

“Talks are on and nothing has been finalised. The investment outlay will be about $20 million,” he said.

The FSS has set up its own processing centre in Dubai a month ago at an outlay of $5 million and a similar amount will be invested there soon, he added.

According to executives, the company is replicating its India business model in the overseas markets.

“The FSS has two revenue streams. The first one is from managing and running the automatic teller machines (ATM) for several banks in India. The second revenue stream is the retail software business wherein we sell people process and the software at customer side,” FSS Global Business Head Ram Chari told IANS.

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Queried about the expansion in Europe, Chari said: “We are trying to push our software and solutions capability with a two pronged approach – one, work with large tier-1 banks and processors to help them modernise legacy technology. Two, partner with new age fintech companies and payment processors who are entering the market to offer financial products.”

They pointed to the demand for new age banking with European banks raising the bar and experimenting with artificial intelligence (AI) enabled functionality such as chat bots and predictive learning.

According to Chari, there is demand for enhanced security with the Second Payment Services Directive (PSD2) as part of the European Commission’s efforts to create a safer, more innovative payments environment in Europe.

Chari said FSS has recently bagged an order from QRails Inc for its 3DS 2.0 solution enabling frictionless payments and four more customers have been added in Europe.

FSS, EU, Transaction Processing Centre
The company is also planning to set up a transaction processing centre in the US. Pixabay

“We see Europe as a market for some interesting opportunities in the fintech adoption front. Digitisation, shifting consumer preferences and regulatory reforms continue to fuel Europe’s importance as an influencer in the development of payments,” Chari noted.

Speaking about FSS’ operations in Africa where the company has acquired 46 per cent stake in the Standard Bank subsidiary Ecentric Payment Systems, Chari said: “We are also seeing much engagement with the Standard Bank there after this investment.”

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“In Congo, we are at the advanced stage of implementing a faster payment hub which enables both Peer-to-Peer (P2P) and national level connectivity within banks to do multiple payments.”

There is a huge interest in payment gateways in the Middle East and some new sets of customers in Saudi Arabia, Chari added. (IANS)

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Facebook Raises Questions Over EU Ruling on Removing Content

In a public Q&A, Facebook CEO Mark Zuckerberg had said that the ruling sets a "very troubling precedent"

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Corporate, America, Climate Change
FILE - In this April 30, 2019, file photo, Facebook stickers are laid out on a table at F8, Facebook's developer conference in San Jose, Calif. The Boston-based renewable energy developer Longroad Energy announced in May that Facebook is building a… VOA

Facebook has raised objections over the European Union (EU) ruling that the bloc’s member countries can not only order the removal of content in their own jurisdiction, but all over the world.

According to the social networking giant, the ruling opens the door for courts to order the removal of content that is similar to the illegal speech, “meaning that something you posted might be removed even if you knew nothing about the earlier post that a European country had deemed illegal”.

“Imagine something you wrote and shared on Facebook was taken down, not because it violated our rules, and not because it broke the law in your country, but because someone was able to use different laws in another country to have it removed,” Monika Bickert, VP, Global Policy Management at Facebook, said in a statement on Monday.

“Imagine as well that your speech was deemed illegal not by a judge who carefully weighed the facts, but by automated tools and technology,” she added.

The European Court of Justice has ruled that Facebook can be forced to remove content internationally.

The ruling arose from a personal defamation case brought by an Austrian politician.

The post in question shared a news article in which the Austrian politician had outlined her and her party’s views on immigration, together with a comment from a Facebook user strongly critiquing the Austrian politician.

facebook, WhatsApp, stories, feature
An iPhone displays the app for Facebook in New Orleans, Aug. 11, 2019. VOA

The court’s ruling raises critical questions for freedom of expression, in two key respects, said Bickert.

First, it undermines the long-standing principle that one country does not have the right to impose its laws on another country.

“This is especially important with laws governing speech, because what is legally acceptable varies considerably in different parts of the world and even within the EU. The ruling also opens the door for other countries around the world, including non-democratic countries who severely limit speech, to demand the same power,” said Facebook.

Second, the ruling might lead to a situation in which private internet companies could be forced to rely on automated technologies to police and remove “equivalent” illegal speech.

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In a public Q&A, Facebook CEO Mark Zuckerberg had said that the ruling sets a “very troubling precedent”.

“We have had precedents but we have successfully fought them. This is one where a lot of the details of exactly how this gets implemented are going to depend on national courts across Europe, and what they define as the same content versus roughly equivalent content.

“This is something we and other services will be litigating and getting clarity on what this means. I know we talk about free expression as a value and I thought this was a fairly troubling development,” Zuckerberg added. (IANS)