16 March 2018

16th March 2018
  • Mobile/Contactless and omni-Commerce
  • Cash
  • Issuing
  • ACH (UK Payments)
  • Digital/Retail Banking
  • Open Banking
  • Fraud/Security
  • Schemes
  • Fintechs/Innovation
  • Blockchain/DLT/ Cryptocurrencies
  • GDPR
  • Corporate Activity
  • EPC/SEPA
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

BNP Paribas Fortis and Swedish fintech Tink have signed an agreement to integrate Tink’s Aggregation, PFM and Payment Initiation technology with BNP’s mobile banking app. http://tinyurl.com/ydf3cy65

This partnership is Tink’s first in the Belgian market following earlier partnerships with Nordea, Nordnet,  Klarna, SEB and ABN AMRO.

 

ABN AMRO’s Tikkie Payment app is now available in Germany.  http://tinyurl.com/y8vktbjy

Marketed through its Moneyou subsidiary, http://tinyurl.com/ya64m3aw, customers of German banks can use Tikkie free of charge via their online banking platform rather than paying via iDEAL as in the Netherlands.

 

Nordea has launched a contactless payment solution for Fitbit and Garmin wearable devices. http://tinyurl.com/ybchzyza

The roll-out is part of the upgrade to the Nordea Wallet that offers improved navigation, a new overview page and support for card enrolment for wearable payment services. More enhancements are promised to be in the pipeline.

 

BKM Express is trialling a new solution that supports check-out free payment. http://tinyurl.com/yahpq3zk

Users first scan the barcodes of the items they wish to purchase by using a special POS device. After confirming the payment amount, a QR code is displayed on the POS screen, users then scan the QR code by using BKM Express app on their mobile phone.

 

Adyen’s launch of POS solution in Singapore used to flag growth of in-store footprint and release of Terminal API.   http://tinyurl.com/ybjjkm6m

Recent client gains include ASICS, Schuh, Lush, City Sightseeing, Dunkin Donuts, Hema, Stedelijk Museum Amsterdam, Coolblue and Action.

 

UnionPay International is launching a new Mobile Payment Service platform.  http://tinyurl.com/ybk783cq

Commercial banks, retailers, mobile phone manufacturers and third party institutions outside mainland China are now able to get access to multiple UnionPay mobile payment solutions, including UnionPay mobile QuickPass and UnionPay QR code payment, via the open API of UMPS.

 

Groupe BPCE (Banque Populaire and Caisse d’Epargne) says it will be the first bank in France to offer Samsung Pay when it is launched soon. http://tinyurl.com/y7dqvb5q

 

Mastercard Payment Transaction Services (MPTS) is launching  tokenization using Openway’s WAY4 software.  http://tinyurl.com/yat3xzut

The solution allows Mastercard Issuers to deploy the latest mobile pay schemes and enable mobile payments on wearables.

 

The US National Retail Federation and Forrester have released their annual “The State of Retailing Online” study. http://tinyurl.com/yawaa8po

The report says traditional and online retailing are increasingly closely linked as customers shop across touchpoints and the industry uses both online and bricks and mortar platforms to serve them.

 

PwC has published its 2018 Global Consumer Insights Survey. http://tinyurl.com/yb8gx9wb

The survey covers over 22,000 online shoppers in 27 countries globally who are optimistic about their local economies and plan to spend more or the same for purchases and experiences, mostly at a brick-and-mortar store or online with mobile devices.

 

CASH

BIS Article from BIS Quarterly Review – Payments are a-changin’ but cash still rules.  http://tinyurl.com/yarssh63

Despite increased use of electronic payments there is scant evidence of a shift away from cash. In fact, demand for cash has risen in most advanced economies since 2008. This resurgence appears to be driven by store-of-value motives rather than by payment needs.

 

HM Treasury has launched a consultation – ‘Cash and Digital Payments in the New Economy’ that seeks views on the future of cash, particularly copper coins.  http://tinyurl.com/ycd7psjf                                 Call for Evidence  http://tinyurl.com/y9usbt48

 

Subsequently No10 has dived in saying it has ruled out scrapping 1p and 2p coins. http://tinyurl.com/yautm2us

 

ISSUING

The debit card for Transferwise’s borderless account is to be issued by Wirecard.  http://tinyurl.com/yaw6mfr7

The card is currently being trialled with a full public roll out planned for later in 2018.

 

ACH (UK PAYMENTS)

The PSR has posted its third Access and Governance report. http://tinyurl.com/y7h449fv                         Access and Governance report 2018

The report shows that access to payment systems in the UK is continuing to improve. In 2018 the PSR expects operators to continue to progress work that will result in the first non-bank PSP becoming a direct participant in at least one of the payment systems.    .

 

DIGITAL/RETAIL BANKING

Revolut is introducing Euro Direct Debits. http://tinyurl.com/y9u2p6ye

The move will allow European customers to automate bill payments.

 

OPEN BANKING

The Open Banking Implementation Entity (OBIE) has updated its Guidelines for Read/Write Participants to provide additional guidance to Participants operating within the Open Banking Ecosystem.  http://tinyurl.com/y9nhwj8b   Guidelines http://tinyurl.com/ych75jed

 

HSBC hopes to launch its ‘Connected Money’ app in May. http://tinyurl.com/y9rryzx5

HSBC claims it will be the first major UK bank to offer an aggregation app under PSD2.

 

A Survey for the Emerging Payments Association (EPA) indicates there is a degree of dissatisfaction with banking services. http://tinyurl.com/ya6atn54

53% of UK consumers would like their bank to provide them with more opportunity and better quality services. However, only 20% of those surveyed said they had been informed about Open Banking by their bank.

 

Truelayer has integrated with Starling bank.   http://tinyurl.com/ybhshv3c

This follows similar integrations with Monzo and Zopa.

 

Truelayer has also posted a blog  – Forget the scare stories — Open Banking is the future.  http://tinyurl.com/ybn27wa2

 

FRAUD/SECURITY

UK Finance says the Finance industry prevented £1.4bn in attempted fraud in 2017. http://tinyurl.com/ya2yve9k

Unauthorised fraud losses fell 5% to £731.8m of which £236m (32%) was attributable to push payment scams.

The PSR says it is working hard with the banks and consumer groups to deliver better protection and greater reassurance for those affected.

 

Ethoca has announced the launch of its new Integrated Solution Suite.  http://tinyurl.com/yaebr45g

Ethoca claims that, when adopted at full scale across the industry, its suite of products – Ethoca Eliminator, Ethoca Alerts and Enhanced Representments – can mitigate up to 90% of chargebacks.

 

SCHEMES

The merger of the three Spanish Domestic Systems has been approved by the Spanish National Competition Authority.  http://tinyurl.com/ydhkbecx

 

FINTECH/INNOVATION

See Regulation below.

 

BLOCKCHAIN/DLT/CRYPTOCURRENCIES

BIS (CPMI) has published a Report on Central bank digital currencies. http://tinyurl.com/y9levv94   Report http://tinyurl.com/y9efsarg

The report considers a wholesale CBDC (for use in financial markets), and a general purpose CBDC (for use by the general public) and their implications for payments, monetary policy and financial stability. It concludes that a wholesale CBDC might have some attractions but it is very wary about a general purpose CBDC.

 

Coinbase has obtained an e-money license from the FCA and joined FPS as an indirect member via Barclays.  http://tinyurl.com/yajpfgfj

Coinbase will pilot the service with a small number of institutional users before rolling it out to all UK customers.  Barclays appears to be taking a more positive view of cryptocurrencies than some commentators.

 

IMF Blog by Christine Lagarde – Addressing the Dark Side of the Crypto World. http://tinyurl.com/ya8m8mrm

 

GDPR

Mastercard and IBM have founded an Independent trust – Truata – that supports companies with their GDPR compliance.  http://tinyurl.com/ycnkb8fu   https://truata.com/faqs/

Dublin based Trūata will provide a new standard in data hosting and anonymisation. Using proprietary processes, methodologies and intellectual property, its offerings will make it possible for organisations to analyse their data while complying with the privacy and data protection requirements of the GDPR. Trūata’s base hosting solution will be available in May 2018. Additional value-added tools are scheduled for release in Q3 2018.

 

CORPORATE ACTIVITY

Natixis (Groupe BPCE) has announced that it has agreed to make strategic investments in three independent M&A boutiques. http://tinyurl.com/yd636cql

The three transactions will allow Natixis to accelerate the internationalisation of its businesses, strengthen its M&A advisory offerings in the Financial Services and Technology sectors, and help drive development in Europe and Asia Pacific.

 

Nordic Capital is to acquire a majority holding in Trustly by purchasing Bridgepoint Development Capital’s holding.  http://tinyurl.com/y7dqvb5q

Nordic Capital views Trustly as a highly strategic payment platform with unique capabilities.  Financial details have not been disclosed.

 

Tandem Bank is purchasing fintech account aggregator and money saving app provider Pariti.  http://tinyurl.com/y8fjnc82

Pariti claims 95,000 users.  The financial terms of the deal have not been disclosed.

 

BioCatch, a developer of behavioural biometric solutions, has raised $30m in a funding round. http://tinyurl.com/y9o8ctfm

American Express Ventures was included as one of the investors.

Behavioural biometrics, which BioCatch helped to pioneer, is seen as a route to providing identity assurance throughout the connected economy.

 

EPC/SEPA

The EPC has launched a consultation on the SEPA Credit Transfer and SEPA Direct Debit rulebook. http://tinyurl.com/y9mdmnjb

All documents at http://tinyurl.com/yb3dl2tx

The public consultation documents detail the 43 change requests from stakeholders.

 

The EPC has also posted a Mandate for an ad-hoc multi-stakeholder group on Mobile Initiated SEPA Credit Transfers.    http://tinyurl.com/yc943d59

The EPC is facilitating the setting-up of a new ad-hoc multi-stakeholder group covering the various sectors involved in the mobile payment ecosystem to develop Mobile Initiated SEPA Credit Transfer Interoperability Implementation Guidelines.

 

REGULATION

The final SCA RTS have been published in the Official Journal. There is no change from the previous Commission version. http://tinyurl.com/y95kw3ms

The RTS (the Delegated Act) will apply from 14 September 2019. Paragraphs 3 and 5 of Article 30 (relating to the six month testing period for a dedicated interface) will apply in exactly one year, from 14 March 2019.

 

EBA Chair’s Speech – Designing a Regulatory and Supervisory Roadmap for FinTech.  http://tinyurl.com/ybexolls

The speech introduced the EBA ‘s Roadmap on FinTech (following the one released by the EC last week) and set out the main takeaways of the EBA’s public consultation in 2017. It included the fact that the EBA is yet to be convinced that cryptocurrencies need regulation.

Roadmap http://tinyurl.com/y6unqmqz  FAQ http://tinyurl.com/y9wwc9ur

The Roadmap, which focusses on five priority areas, sets out the EBA’s priorities for 2018/2019 including the establishment of a FinTech Knowledge Hub.

 

A subsequent speech by the ECB’s Benoît Cœuré – Financial regulation and innovation: a two-way street – covers the same issues.  http://tinyurl.com/y83ra4r8

 

The Joint Committee of the European Supervisory Authorities (ESAs) has published its final report on Big Data.  http://tinyurl.com/y76fcnm2   Report http://tinyurl.com/yaffhup7

The report analyses Big Data’s impact on consumers and financial firms and concludes that any legislative intervention at this point would be premature, considering that the existing legislation should mitigate many of the risks identified.

 

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