Now that the “One Big Beautiful Bill Act” is the law of the land, is there anything in there that fintechs and financial services companies need to be ready for?
There are two little-discussed items in the 900+ page statute may be of interest to the fintech and financial services industries One is a bit of a bankshot, the other represents a potential new hurdle for fintechs involved in payments, including cross-border transactions and micropayments.
Let’s start with the bankshot. The OBBBA includes a requirement that the Federal Communications Commission (FCC) and the National Telecommunications and Information Administration (NTIA) auction 600 MHz of spectrum behind 1.3-10 GHz by the year 2034. Why is this important? For one, the government stands to earn as much as $88 billion from the proceeds. At the same time, telecoms like T-Mobile and AT&T stand to gain bigly from greater access to a mid-band spectrum that represents the foundation of not just 5G but also future 6G networks, as well.
“Wireless spectrum acts as the invisible backbone for our digital economy,” Shane Tews, Nonresident Senior Fellow at the American Enterprise Institute, wrote last month. “Every smartphone call, streaming service, autonomous vehicle communication, and Internet of Things (IoT) device depends on this limited resource. As we approach widespread deployment of 5G and look ahead to 6G, the availability of commercial spectrum becomes increasingly vital to maintaining America’s competitive edge in the global technology race.”
While the biggest and most direct winners will be the telecoms who are able to buy the additional bandwidth, faster, low-latency connectivity will be a boon to fintechs and financial services companies when it comes to delivering current solutions faster, as well as offering new products and services that can take advantage of modern networks. Everything from account updating to more sophisticated anti-fraud technology to high-definition video banking could be positively affected by more robust 5G/6G connectivity. The broader network coverage could also support financial inclusion by making it easier for financial institutions, including regional and community-based financial institutions, to reach un- and underbanked communities in their vicinities.
The other aspect of the OBBBA that relates to fintech and financial services is the repeal of the de minimis tariff exemption. The de minimis tariff exemption allowed packages valued at less than $800 to enter the US duty-free and with less restrictive customs screening. The exemption came under fire from critics who feared a wave of low-value shipments from China and Hong Kong that would take advantage of the exemption.
Unlike much of what happens in Congress, there was actually bipartisan support for repealing the exemption; repeal also helped sync Senate and House versions of the legislation. The repeal is slated to take full effect by July 1, 2027—though partial implementation for Chinese imports has already begun.
How might this little-discussed feature of the OBBBA impact fintechs and financial services companies? Greater complexity in payments and cross-border transactions is one potential outcome as previously exempt transactions become subject to new tariff calculations. Along with this there are likely to be additional—and often more complex—compliance steps that firms will need to take including more extensive documentation, enhanced duty calculation functionality, and more. Companies will also have to explain and deal with the impact of higher prices on customers, who have become increasingly cost-conscious in recent years.
That said, there may be opportunity in this development for fintechs in the regtech space in particular. Firms with talent and technology in trade compliance, logistics, as well as tools to help automate new and complex regulatory requirements, will be ideal partners for fintechs, banks, and other companies as they navigate a world with far more dynamic trade and tariff policies than we’ve experienced in a long time.
Photo by Sebastian Pichler on Unsplash
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