Information and Analytics about Embedded Finance, BaaS and Open Banking

As vehicles become increasingly connected, drivers are beginning to expect in-car payment systems as a standard feature — and they’re willing to pay for the convenience. That’s the key takeaway from the newly released 2025 In-Car Payments User Experience Report by Drive Research, which highlights a strong connection between seamless payment technology, brand perception, and consumer loyalty, as stated in Motor Trade News. The study, which surveyed drivers in the United States and Germany, revealed that most consumers now prioritize simple and integrated payment functionality for services such as parking, EV charging, fuelling, and tolls. Usability emerged as a critical factor, with poor user experiences negatively affecting how drivers view automotive brands. Among U.S. respondents, 100% agreed that an easy in-car payment experience would enhance their overall driving experience. In Germany, that figure was nearly as high at 93%. Overall, 97% of participants across both countries said they would use in-car payments for common transactions — but only if the system was easy to navigate. The research compared a current, anonymized OEM in-car payment platform to an enhanced version developed collaboratively by Parkopedia and Valtech Mobility. Participants were asked to complete the same tasks using both systems, then provide feedback on their experiences. The findings were clear: a smoother user experience translates directly into higher engagement and future usage. Over 90% of U.S. drivers said they preferred the upgraded version, correlating with a stronger willingness to adopt the technology long-term. However, a clunky registration process remains a major barrier, with 70% of American and 77% of German participants reporting frustration. Adam Calland, global marketing director at Parkopedia, emphasized the growing importance of this technology.“The demand for connected car services continues to rise rapidly around the world, and this research shows that in-car payment functionality in particular is now becoming a must-have feature for motorists who highly value convenience and are willing to pay for this,” Calland said. He also pointed to the global shift towards electric vehicles as a driver of this trend:“Motorists not only value having in-car data directing them to suitable charge points, but also integrating payments within the same platform, to facilitate the full public charging experience within the vehicle.” Consumers also expressed a strong desire for intelligent integration. Around 93% of German drivers and 87% of U.S. drivers said they appreciated receiving notifications when in-car payments were available. Conversely, 80% of U.S. participants said they would be annoyed if they missed payment opportunities due to a lack of alerts. More than two-thirds of all respondents said they’d be willing to pay extra — either through a higher vehicle price or a subscription model — for access to these features. Perhaps most significant for automakers is the impact on brand perception. In the U.S., 97% of drivers said a well-integrated payment system would improve their view of a brand, and 87% said it would make them more likely to choose that brand again. The study concludes that automakers who fail to prioritize user experience in payment technology risk losing future customers — while those who deliver a seamless, integrated solution can gain a lasting edge in a competitive market.

As digital payments become deeply embedded in the fabric of global commerce, digital wallets are no longer just digital versions of your leather billfold. They are fast becoming an essential infrastructure for personal and business finance — and their ambitions go far beyond storing virtual cards, as stated in PYMNTS. According to new research from PYMNTS Intelligence, in collaboration with TerraPay, digital wallets are now at the forefront of global money movement thanks to three core drivers: speed, security, and transparency. The latest report, Global Money Movement: U.S. Edition, explores how these features are transforming not only how we pay, but how we expect to interact with financial technology as a whole. Speed Is No Longer a Luxury — It’s a Baseline In today’s economy of instant gratification, delays are more than inconvenient — they’re potentially damaging. For small and medium-sized businesses (SMBs) trying to manage cash flow across borders, or consumers sending funds to family abroad, time is quite literally money. Legacy systems like bank wires or traditional remittance services can take days to process, burdened by compliance checks and hidden intermediary fees. Digital wallets, by contrast, offer near-instant transfers, often bypassing traditional banking systems entirely. The data supports this trend. PYMNTS found that 53% of U.S. consumers not yet using digital wallets for cross-border payments cite speed as the primary factor that would convince them to adopt. Similarly, 40% of SMBs who haven’t made the switch say faster payments are their top motivator. Security Is the Deal-Sealer While speed may attract users, security is what keeps them coming back. «Over one-third (36%) of U.S. consumers not using digital wallets would adopt them if they were perceived as more secure,» the report notes. And for businesses, the concern is just as prominent — 25% of SMBs not using wallets cite security as the biggest barrier to entry. But this perceived insecurity often stems not from fraud data, but from a lack of transparency and trust in the system. Consumers and businesses want more than just encryption — they want answers: Who holds my money? Is it insured? What happens if something goes wrong? Digital wallets that invest in building trust — through verified user identities, dispute resolution mechanisms, and visible compliance — are positioning themselves for long-term loyalty. This is not just about security; it’s about confidence in the entire transaction process. Transparency Is the Silent Superpower While speed and security get most of the attention, transparency is emerging as a critical — and often overlooked — factor in digital wallet adoption. «In an era when an Amazon package can be tracked from warehouse to doorstep, ‘I don’t know where your payment is’ no longer cuts it,» the report points out. The ability to track payments is becoming essential. Nearly one-third (33%) of SMBs and 32.9% of consumers planning to adopt digital wallets in the coming year say tracking features are a primary reason for doing so. And for good reason. International payments can travel through multiple banks, jurisdictions, and currency conversions. Without transparency, this complexity can lead to delays, unexpected fees, and customer frustration. Transparent digital wallets simplify the journey. They offer real-time updates, transaction histories, and instant confirmations, giving users visibility and peace of mind. This isn’t just a “nice to have” — it’s a fundamental need for businesses operating globally or freelancers relying on international clients. As the digital wallet space evolves, it’s becoming clear that this technology isn’t just a better payment method — it’s a platform competing to become the next generation of financial apps.

As the UK Government reviews the national curriculum, new research from Yorkshire Building Society highlights an overwhelming call from parents to make financial education a core subject in schools, as stated in FF News. According to the study, 95% of parents of children aged 5 to 17 believe financial literacy is essential, and 89% think it should be formally taught in classrooms. Despite this strong support, only 24% of parents talk to their children about money weekly or more often, while 10% admit they never discuss the topic. In contrast, parents report more frequent conversations about other important issues such as mental health, diet, substance use, road and water safety, online risks, and relationships. The disconnect may partly stem from a lack of confidence in discussing financial topics. While 91% of parents feel somewhat confident in teaching their children about money, comfort levels vary significantly by topic. Most feel able to discuss saving (80%), but fewer feel confident talking about budgeting (68%), distinguishing needs versus wants (62%), avoiding debt (56%), or explaining credit (43%). Chris Irwin, Director of Savings at Yorkshire Building Society, noted: “This research shows that parents recognise that financial education is incredibly important, but they are juggling many different priorities when it comes to talking to their children about life skills. Although most recognise that children should start learning about money during primary school, many may not realise that attitudes and behaviours start developing at a very early age, and habits can form by the age of seven.” Most parents (70%) rely on personal experience when teaching their children about money, with far fewer turning to financial apps (29%), YouTube and online videos (27%), books (26%), professional advice (20%), or social media influencers (13%). Irwin pointed out the potential pitfalls of this approach: “We can see that most parents lean on personal experience to teach their children about money, meaning that those from less financially-savvy families could be at a disadvantage.” To address this gap, Yorkshire Building Society has called for mandatory financial education in schools, starting in primary years. In 2024, the organisation submitted official recommendations to the Government’s Curriculum and Assessment Review, pushing for these changes. Final decisions are expected this autumn. Since 2015, the Society has helped educators deliver financial lessons through its Money Minds programme, which reached over 16,000 children and young people in the UK last year. The programme includes free online resources for students aged 11–19, as well as tools for teachers and parents covering essential financial topics like budgeting, borrowing, and fraud prevention. For parents of younger children, the Money and Pensions Service also provides guidance on initiating conversations about money. Irwin concluded: “We hope that the Government will increase the focus on financial education in schools – and make it mandatory for all pupils across the country so no child misses out on developing important life skills relating to money.”

As the digital economy grows, so does the volume—and complexity—of digital payments. With billions of transactions now flowing daily through networks, banks, and FinTech platforms, the financial world is facing increasingly sophisticated fraud threats, according to PYMNTS. But at the same time, it is also discovering powerful new tools to combat them. Among the most promising of these innovations are Large Transaction Models (LTMs)—AI-powered systems designed to secure payment flows and enhance financial operations. A New Layer of AI-Driven Protection LTMs are built on transformer-based AI architectures, the same technology behind large language models like GPT-4. Just as LLMs understand and generate human language, LTMs are trained to comprehend the «language» of financial transactions. Wolfgang Berner, co-founder and CPO of Hawk, explained the concept in a conversation with PYMNTS: “The core idea is we treat transactions as sentences, teaching the transformer model the language and grammar of transactions, similar to how large language models like GPT-4 are trained on the text of the web. And by doing that, it develops a very good understanding of the transactions, how transactions relate to each other, and what is genuine or possibly suspicious with them.” These models process billions of historical transaction records to learn behavioral patterns, recognize anomalies, and make real-time predictions—often detecting fraud attempts that traditional machine learning (ML) models would miss. The Evolution Beyond Traditional Machine Learning Conventional ML models have long been used to combat payment fraud, relying on defined features such as BIN numbers or ZIP codes. While effective to an extent, these models are limited—they often require separate, task-specific algorithms for fraud detection, authorization, and dispute resolution. LTMs, by contrast, can tackle multiple problems within a single architecture. Their ability to «embed» transactions in a vector space allows for deep semantic analysis. Transactions from the same issuer or those sharing characteristics—like an email address—are naturally grouped, making fraud patterns more visible and precise. Staying Ahead in the Cyber Arms Race Crucially, LTMs adapt over time. As fraud tactics evolve, so too do the models, making them increasingly effective. “It’s become harder to monitor all the various ways that fraudsters attack businesses,” said Eric Frankovic, general manager of business payments at WEX. This sentiment is echoed across the industry, as payment providers seek to balance tight fraud detection with a smooth customer experience. “It is essentially an adversarial game; criminals are out to make money, and the [business] community needs to curtail that activity,” said Michael Shearer, Chief Solutions Officer at Hawk: “What’s different now is that both sides are armed with some really impressive technology.” More Than Just Fraud Prevention While LTMs are making major strides in fraud detection, their potential goes much further. These models are starting to streamline operations in areas like compliance, risk management, and customer experience. By automating large parts of financial workflows, LTMs help banks and institutions handle growing volumes of data without sacrificing accuracy or responsiveness. From credit scoring and strategic planning to customer service automation, the applications for LTMs are expanding rapidly. A recent PYMNTS Intelligence report, “Leveraging AI and ML to Thwart Scammers,” produced in collaboration with Hawk, highlights how businesses can use AI not only to secure their systems but also to gain strategic advantages in a highly competitive financial landscape. As digital payments continue to accelerate, tools like Large Transaction Models represent a critical shift—transforming AI from a back-office experiment into a frontline defense system. In the words of Hawk’s Wolfgang Berner, these models are teaching systems to “understand” transactions like language—and that understanding may be the key to outsmarting financial crime.

A Historic Surge in Gen AI for Financial Services Exactly one year ago, Google Cloud shared a list of 101 enterprise-grade generative AI use cases. In 2025, that number has exploded to 601, many of them transforming how financial services are delivered, personalized, and embedded into everyday life. From neobanks in Mexico like Albo to global institutions like Citi and Deutsche Bank, financial players are reimagining operations and customer experience through AI. But beneath this rapid evolution lies another structural shift: the rise of embedded financial services, supercharged by generative AI. As generative AI automates, predicts, and personalizes at scale, embedded finance is no longer just a SaaS buzzword. It’s becoming the default delivery model — deeply woven into ecosystems via APIs, Banking-as-a-Service (BaaS), and embedded finance enablers. As Nitin Mittal, Global AI Leader at Deloitte, noted in the State of Generative AI in the Enterprise report: “We’re at a tipping point where generative AI will define competitive advantage — not just in how financial products are built, but how they learn, evolve, and serve end users contextually.” This article explores the convergence of generative AI and embedded finance, unpacking how it’s reshaping fintech infrastructure, powering real-time decision-making, and enabling seamless financial interactions in non-financial platforms. From Monolithic Banks to Modular Money: Embedded Finance 2.0 Embedded finance was already gaining ground with the rise of digital wallets, contextual lending, and invisible payments. But what the 601 generative AI use cases make clear is this: AI is not just an add-on; it is the new operating system for embedded finance. Take Fundwell, for example — an AI-powered lending platform that connects businesses to ideal funding solutions. What used to take weeks in traditional bank pipelines now takes minutes, thanks to AI analyzing financial health and matching loan options in real time. This is embedded finance in action: finance delivered at the point of need, invisible yet intelligent. Similarly, Banco Rendimento has enabled 24/7 international money transfers via WhatsApp using generative AI. No human agent required. This isn’t just automation — it’s AI-mediated financial embedding into everyday communication platforms. These are not isolated examples. They reflect a broader trend: AI is making embedded finance context-aware, conversational, and proactive. AI + BaaS = A New Embedded Finance Stack At the core of this evolution lies a powerful stack: Embedded finance software solutions offer plug-and-play APIs for payments, lending, and KYC. Banking-as-a-Service (BaaS) providers deliver the regulatory and compliance plumbing. Generative AI agents now sit on top — interpreting user intent, generating documents, offering advice, and orchestrating transactions. Let’s break this down: 1. Embedded Finance Enablers Get Smarter Companies like Discover Financial, Scotiabank, and Safe Rate are layering AI assistants on top of existing banking APIs. These assistants do everything from generating mortgage quotes in seconds to guiding customers through onboarding and approval processes. By doing so, they turn generic embedded finance offerings into hyper-personalized financial experiences — a massive leap in customer stickiness and LTV (lifetime value). As Wolters Kluwer points out “GenAI specializes in making repetitive processes like data exploration and analysis almost instantaneous. Finance teams can reclaim their time on data exploration, driver-based analysis, creating charts, and crafting commentary for reports and instead focus on driving the business.” Ankur Patel, CEO of Multimodal, put it in a conversation with Illuminate Financial: “Generative AI is quickly becoming a necessity in finance — not just enhancing workflows, but opening entirely new revenue streams.” 2. Digital Wallets & Payments Go Proactive Embedded finance software that powers digital wallets is also evolving. Dojo, for instance, is combining Google Cloud’s Vertex AI with embedded payment rails to offer real-time, conversational analytics — transforming raw transaction data into customer insights. For merchants, this means intelligent payments with embedded insights. For customers, it means faster checkouts, personalized offers, and intuitive interfaces. 3. BaaS Platforms Gain AI-Powered Decisioning A new generation of BaaS platforms is integrating AI into backend services like fraud detection, underwriting, and compliance. Cloudwalk, a Brazilian fintech unicorn, used generative AI to power fraud analysis and credit scoring models — helping it grow its customer base by 200% while turning a profit. This is a prime example of how AI doesn’t just make BaaS smarter — it makes it scalable, secure, and profitable. Use Case Deep Dive: Where AI and Embedded Finance Intersect Let’s explore some specific real-world examples from the report that illustrate how AI and embedded finance converge: 💡 Case 1: Figure & Real-Time LendingFigure, a fintech offering home equity lines of credit, uses Gemini’s multimodal models to power lending chatbots. These bots interact with customers, guide them through form submissions, and issue approvals — often in real time.→ Embedded finance outcome: Customers access credit within other platforms, like real estate portals or banking superapps, without ever stepping into a branch. 💡 Case 2: Banco Covalto’s Instant CreditMexico’s Banco Covalto reduced credit approval response times by over 90% with generative AI. Embedded within its mobile banking experience, AI evaluates creditworthiness and issues decisions in seconds.→ Embedded finance outcome: Instant loans offered where users need them — directly inside mobile channels. 💡 Case 3: Apex Fintech & Frictionless InvestingApex Fintech Solutions is deploying Google Cloud tools to enable embedded investing capabilities — think Robinhood-like features, but white-labeled and AI-optimized for partner platforms.→ Embedded finance outcome: Investing made available across consumer apps, from budgeting tools to e-commerce platforms. The Strategic Opportunity: What This Means for Fintech Founders & SaaS Leaders Whether you’re building a neobank, a B2B SaaS platform, or an e-commerce app, this AI-embedded finance convergence is rewriting the competitive landscape. ✅ For FintechsYou can now differentiate on intelligence. Not just speed or fees. Embedding AI agents into your financial workflows allows for context-aware product offerings — think real-time underwriting, conversational tax filing, or predictive savings nudges. ✅ For SaaS PlatformsWant to offer embedded payroll advances or invoice factoring? AI-powered finance enablers now let you do that without hiring a compliance team or becoming a bank. Using platforms like Synapse, Unit, or Treasury Prime (and soon their AI-enhanced versions), you can integrate embedded finance features with full explainability and KYC guardrails. ✅ For Traditional BanksThe AI-BaaS combo presents both a threat and an opportunity. Banks like ING, Citi, and Commerzbank are leaning in — deploying internal AI agents to support underwriting, call summaries, and risk analysis. The forward-thinking ones are now acting as embedded finance providers themselves, opening up their infrastructure as APIs and enriching them with AI tools to support partners across ecosystems.

The rivalry between retail giants Amazon and Walmart has moved beyond price wars and fast deliveries into cutting-edge technologies like artificial intelligence (AI), robotics, and omnichannel ecosystems, according to PYMNTS. Their innovations are redefining retail, making shopping faster, more efficient, and increasingly personalized. Robotics Revolutionizing Retail Operations Amazon continues to lead in warehouse automation with its latest robot, Vulcan, introduced on May 7. This is Amazon’s first tactile robot, capable of handling 75% of warehouse items, including fragile and irregularly shaped products. Vulcan can work up to 20-hour shifts, assisting human workers by retrieving items from high or low shelves, reducing physical strain. This follows Amazon’s February announcement about AI-driven cost savings through robotics. The company has deployed over 750,000 robots across its fulfillment centers, including autonomous mobile robots like Proteus and robotic arms such as Robin and Cardinal, all integrated with AI for enhanced efficiency. Meanwhile, Walmart is innovating in robotic construction. Partnering with Alquist 3D, Walmart built a 5,000-square-foot warehouse extension in Huntsville, Alabama, using 3D printing technology. The project was completed in just seven days with a five-person crew, showcasing how automation can address labor shortages and speed up construction. Expanding Physical and Digital Retail Footprints Both companies are aggressively expanding their physical and digital infrastructure. Walmart recently opened its first «Store of the Future» in Cypress, Texas, a 170,000-square-foot Supercenter blending in-store shopping with digital enhancements. This is part of Walmart’s plan to build or convert over 150 stores and remodel 650 more, featuring expanded departments, private pharmacy rooms, and improved online pickup services. The retailer is also investing $350 billion in U.S.-made products by 2030 through initiatives like «Grow with US,» supporting small businesses and strengthening domestic supply chains. On the global front, Amazon Web Services (AWS) announced a $4 billion investment to establish its first data centers in Chile, marking its third cloud region in Latin America. The expansion supports generative AI services while emphasizing sustainability through renewable energy and advanced cooling technologies. Omnichannel Innovation and AI-Powered Personalization Consumers now expect seamless, hyper-personalized shopping experiences—and both Amazon and Walmart are delivering. Amazon’s Alexa+ voice assistant has reached 100,000 users, integrating AI deeper into daily life. The company is even extending services to pets, offering prescription deliveries for pets through a new partnership. Sam’s Club (Walmart’s subsidiary) is enhancing its Member Access Platform (MAP) with AI-driven tools like Brand Lift, Customer Lifetime Value measurement, and Propensity Modeling, enabling highly targeted omnichannel marketing. The Future of Retail: A Blend of Physical and Digital The competition between Amazon and Walmart is no longer about stores vs. online shopping—it’s about who can merge both into a single, intelligent system. Both companies are racing toward a future where: Retail is channel-agnostic (no distinction between online and offline). Delivery is near-instantaneous. Shopping experiences are fully personalized. As PYMNTS reports, this rivalry is pushing both retailers to innovate faster, ultimately benefiting consumers with smarter, faster, and more convenient shopping experiences.

The European Central Bank (ECB) has launched a cutting-edge innovation platform to explore next-generation payment solutions, with a particular focus on the development of the digital euro, as outlined in Fintech Global News. Following a call for interest issued in late 2024, nearly 70 organizations—including traditional banks, FinTech companies, start-ups, and merchants—have joined the initiative. These participants have been divided into two distinct workstreams to pursue parallel goals. The first group, dubbed the “pioneers,” is tasked with testing key technical components of the digital euro ecosystem. Their focus includes features such as conditional payments and seamless platform integration. Meanwhile, the second group, known as the “visionaries,” is exploring creative concepts to boost digital financial inclusion. One proposal under review involves offering digital euro wallets through post offices to reach individuals without access to bank accounts or digital devices. To support the initiative, the ECB is providing a suite of technical tools, including APIs, enabling participants to conduct independent testing and experimentation. Visionary group workshops are scheduled to continue throughout May 2025. Insights and findings from both groups will be compiled into a comprehensive report expected later this year. “We welcome the huge amount of interest that market participants have shown in this exciting initiative,” said ECB Executive Board member Piero Cipollone. “The breadth and creativity of the proposals highlights the digital euro’s potential as a catalyst for financial innovation in Europe, including the development of new solutions that further enhance the payment experience for Europeans and create market opportunities.” The initiative marks a significant step forward in the ECB’s efforts to shape a more inclusive and innovative digital financial landscape across the Eurozone.

The global automotive industry is undergoing a dramatic transformation. After a decade of relative stability, technological advances, environmental pressure, and changing consumer behaviors are disrupting every corner of the market, as highlighted by Josh Howarth, Exploding Topics. Between 2025 and 2027, these ten trends will play a defining role in the future of mobility. 1. Electric Vehicle Adoption Surges Electric vehicles (EVs) have moved from niche to mainstream faster than many anticipated. Searches for “electric vehicles” have risen by 110% over the past five years, and global sales skyrocketed from 3 million in 2020 to an estimated 17 million in 2024. China and Europe are at the forefront, with Europe overtaking China as the largest plug-in EV market. EV sales in Europe grew by 137% in 2020, even while the overall auto market shrank. BloombergNEF forecasts that EVs will make up 10% of all new car sales by 2025 and an astonishing 58% by 2040. However, EVs are still projected to represent just 8% of cars on the road by 2030, indicating the full shift will unfold in the 2030s. Crucially, falling battery costs and regulatory mandates are accelerating adoption. Lithium-ion battery prices have dropped 89% in a decade, and many countries aim to ban new internal combustion engine vehicles by 2050 in pursuit of net-zero emissions. «To meet many net-zero goals, EVs will have to climb to at least half of all new car sales by 2050,» notes the report. 2. Autonomous Vehicles Gain Momentum Autonomous vehicles (AVs) are on the rise, although mass adoption remains years away. Interest in “autonomous driving” has soared over 1,000% in a decade, and the number of AVs on U.S. roads is projected to grow from 17,000 today to 33 million by 2040. Tech giants and automakers alike are racing into this space. Alphabet’s Waymo operates in Phoenix, San Francisco, and LA, while Ford and Volkswagen jointly back Argo AI. Tesla continues pushing forward with its Full Self-Driving (FSD) system. Still, the industry faces regulatory hurdles and consumer skepticism. Many are more comfortable with autonomous trucking than robotaxis. «Two-thirds of people say they would rather drive than ride in an autonomous car,» the article notes, highlighting the cautious mindset. Companies like TuSimple, already operating 50 Level 4 autonomous trucks, plan to sell them commercially starting in 2024. 3. The Rise of the Connected Car The integration of 5G and IoT is transforming cars into connected ecosystems. As of 2020, 47.5 million connected vehicles were sold, with the market projected to reach $191.8 billion by 2028. Tech partnerships are reshaping car interiors. Google and Ford’s Team Upshift equips vehicles with Android OS and integrates AI to enhance in-vehicle experiences. Apple is also reportedly investing $3.6 billion into Kia to co-develop an autonomous electric car. 4. Online Car Buying Becomes Mainstream The car buying journey has shifted online. Over 90% of buyers now research vehicles online, and more are completing purchases digitally. Before the pandemic, just 4.2% of car sales occurred online. But in 2020, online-first sellers like Carvana saw massive growth, delivering 244,111 vehicles—a 37% YoY increase. By 2022, they sold over 412,000 cars. Tesla embraced this trend early, closing physical showrooms in 2019 to focus on online sales. In 2024, Tesla held a 48.2% share of the EV market and drew 374 million site visits from nearly 169 million unique users. «Even before COVID-19, 43% of shoppers said they wished they could complete the entire car buying process online.» 5. Auto Parts Market Continues to Expand The global auto parts market reached $723 billion in sales in 2021 and continues to grow, fueled by ecommerce and the increasing average age of vehicles. Online aftermarket parts sales are estimated at $85.3 billion, with 94% of consumers researching parts online before purchasing. Light trucks and SUVs, which dominate new vehicle sales, drive much of this demand due to their customization and maintenance needs. 6. Chip Shortages Still Disrupt Production Semiconductor shortages continue to impact global car production, delaying shipments and driving up costs. Despite industry efforts to diversify supply chains, the issue remains a significant bottleneck. 7. Low Inventory and High Prices Hit Auto Sales New car inventories remain tight, pushing buyers toward used vehicles and inflating prices across the board. Consumers are holding onto vehicles longer, which supports the parts market but suppresses new sales volumes. 8. Micromobility Gains Ground E-scooters, bikes, and compact EVs are gaining popularity in urban areas. As consumers seek flexible, low-emission alternatives for short trips, micromobility may reshape last-mile transportation and reduce reliance on personal vehicles. 9. Hydrogen Emerges as a Future Fuel Source Hydrogen-powered vehicles remain a niche, but interest is growing. Advocates see hydrogen as a complement to EVs, especially for long-haul transport and industrial use. Further investment and infrastructure will determine its role in the energy mix. 10. Luxury Brands Thrive Despite Volatility Luxury automakers are outperforming expectations. As wealth concentration and demand for high-end tech features increase, brands like Mercedes-Benz, BMW, and Tesla’s premium models are seeing strong sales even amid market uncertainty. From EVs to online sales and connected technologies, the automotive industry is entering a phase of rapid reinvention. With shifting regulations, changing consumer preferences, and a wave of innovation, automakers and suppliers must adapt—or risk being left behind.

Apple may be preparing to make a significant change to its Safari web browser by incorporating artificial intelligence (AI)-driven search capabilities — a move that could eventually end its long-standing partnership with Google, as stated in PYMNTS. The development emerged during a high-profile U.S. Justice Department antitrust trial against Alphabet, Google’s parent company. Apple’s Senior Vice President of Services, Eddy Cue, testified that the tech giant is “actively looking at” reimagining Safari with a focus on AI search engines, Bloomberg reported Wednesday (May 7). At the heart of the case is Apple’s estimated $20 billion-a-year agreement with Google, which makes Google the default search engine on Apple devices. That agreement has been in place since the iPhone’s launch in 2007 and has shaped the mobile search ecosystem ever since. However, the Justice Department’s legal challenge could compel Apple and Google to dissolve the deal. Cue’s testimony revealed that Apple is considering integrating AI-based search tools from companies like OpenAI, Perplexity AI, and Anthropic. He noted that Apple has already held discussions with Perplexity about implementing its search capabilities into Safari. He also acknowledged a decline in Safari search usage, attributing it to growing consumer interest in AI tools. “There’s much greater potential because there are new entrants attacking the problem in a different way,” Cue said, contrasting the current landscape with earlier years when he believed alternative search engines weren’t “valid choices.” Cue further suggested that AI search engines are on track to surpass traditional platforms like Google, stating, “I believe that will change. I believe that it will change because there are new entrants that are attacking the problem in a different way.” Despite acknowledging the financial importance of Apple’s deal with Google, Cue emphasized that technological shifts such as AI bring new opportunities for competition. “Technology shifts like AI create opportunities for new entrants and true competition,” he said. Currently, Apple integrates OpenAI’s ChatGPT into Siri and has plans to add Google’s Gemini later this year. The company is also exploring offerings from Anthropic, DeepSeek, and xAI’s Grok. Cue recounted a “bake-off” between ChatGPT and Google’s AI assistant before ultimately selecting ChatGPT for Apple Intelligence in iOS 18. The news of Apple’s potential shift away from Google led to a dip in the stock prices of both Alphabet and Apple on Wednesday. As AI continues to reshape the tech landscape, Apple’s exploration of alternative search solutions signals a turning point in the company’s strategic direction — one that could have profound implications for the future of search on billions of devices worldwide.

The Consumer Financial Protection Bureau (CFPB) is preparing to reopen its recently finalized open banking rule, marking yet another reversal under the Trump administration, Bloomberg Law reports, as stated in Finextra News. Originally finalized in October, the Personal Financial Data Rights rule was intended to empower American consumers by giving them the legal right to instruct their banks to share financial data with third-party providers. The initiative aimed to support innovation in financial services and increase consumer choice. However, citing unnamed sources, Bloomberg Law reveals that the CFPB is now considering walking back or potentially even vacating the rule altogether. This shift appears to be a response to mounting pressure from banks, which have raised concerns about liability in the event of data breaches, the lack of clarity around monetizing access to consumer data, and their inability to block bad actors from exploiting the system. “It is not known whether the rule will be amended or eliminated,” the report adds, leaving stakeholders in a state of uncertainty. The proposed rollback has sparked criticism from open banking advocates. Steve Boms, CEO of FDATA North America, commented: “Reopening this rulemaking means stalling financial innovation and prolonging uncertainty for both businesses and consumers in America.” The rule has been under legal fire since its inception. Just days after its finalization, the Bank Policy Institute and the Kentucky Bankers Association filed a lawsuit against the CFPB. The plaintiffs argue that the bureau overstepped its authority, imposing a framework that unfairly places the burden of data protection solely on banks while absolving the CFPB from responsibility for supervising third-party data recipients. This development is part of a broader trend at the CFPB under the Trump administration and acting Director Russell Vought, who has overseen a series of deregulatory moves. In March, the agency rescinded an interpretive rule that classified Buy Now, Pay Later (BNPL) providers under credit card regulations. In the weeks that followed, it also dropped multiple lawsuits, including high-profile cases against JPMorgan Chase, Bank of America, and Wells Fargo, all related to fraud on the Zelle peer-to-peer payments network. Additionally, a separate rule that would have expanded CFPB oversight to cover digital payment platforms operated by Apple, Google, and X (formerly Twitter) was recently struck down by both chambers of Congress. As the financial industry and regulators brace for potential changes, the future of the open banking landscape in the U.S. remains uncertain—caught between innovation, security concerns, and a shifting political tide.