8 December 2017

8th December 2017
  • Mobile/Contactless and omni-Commerce
  • Digital/Retail Banking
  • Fintechs/Innovation
  • Cybersecurity
  • RTGS
  • Corporate Activity
  • EPC/SEPA
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

BRC – KPMG Retails Sales Monitor for November (ignore the headline saying October) say Online sales of Non-Food products grew 6.5%, down on recent longer term averages.    http://tinyurl.com/y8kamtc2

Online penetration as a percentage of total sales increased to 27.4% from 23.7% in October reflecting a Black Friday move away from the High Street.

 

Worldpay is integrating with Klarna in six European countries. http://tinyurl.com/y9mklbb9

Worldpay has announced customers trading in Austria, Finland, Germany, the Netherlands, Norway, Sweden and the United Kingdom, and wishing to accept payments on invoice or instalments, will be able to use Klarna’s invoice and credit based payments.

 

Worldline has announced its participation in Visa’s new Visa Ready for Transit programme.  http://tinyurl.com/y9z3kqvs

The Worldline solution, WL Tap 2 Use, enables contactless cards, mobile devices and wearable technology to be used for entry and exit of transit systems.

 

Adyen has followed an earlier announcement in November with one saying that WeChatPay is now available at POS globally.   http://tinyurl.com/y9ztvspr

Adyen merchants can now accept payments from China’s three largest payment providers, including Alibaba’s Alipay and China UnionPay (UPI).

 

nexo-FAST terminal specifications have been successfully used in a trial conducted by Ingenico, American Express and Crédit Mutuel-CM11 Group. http://tinyurl.com/yb9jpxu9

The project demonstrates the capability of nexo standards to support all major card schemes on the same payment application.

 

VAT on e-Commerce: The EC has adopted new rules making it easier for online businesses to comply with VAT obligations.  http://tinyurl.com/y82ng8ew

 

A new Dutch smart wallet branded OK is readying for a launch in 2018.  http://tinyurl.com/yck9fpsq

One of those behind the design of new venture is Chiel Liezenberg who was involved with the original development of iDEAL. The app’s technology is QR based with a 5-digit PIN.

 

Apple Pay has gone live in the US. http://tinyurl.com/y7cobvuk

Apple Pay enables P2P payments on iPhone, iPad and Apple Watch using cards already loaded into the wallet.

 

Visa is trialling an ‘Interactive Shopping Experience’ for the Winter Olympics.  http://tinyurl.com/y7d5g4tt

NBC will direct viewers to a newly launched platform where they can browse and buy gear from the Team USA Shop. NBC will integrate the platform into on-air prompts and digital channels, directing fans to a new shopping experience that features similar products to what they are seeing on athletes.

 

In a related move Visa has also released details of a suite of sensory branding elements – sound, animation and haptic (vibration) – to signify completed transactions in digital and physical retail environments. http://tinyurl.com/ycq4g6u9

 

EMVCo says 58.9% of card-present contact and contactless transactions globally were EMV®-enabled between July 2016 and June 2017. http://tinyurl.com/yb5twv6l

This represents an increase over the prior year, when 42.4% of transactions were EMV-enabled. In Europe Zone 1 usage was 98.2%; Europe Zone 2, 89.1%.

 

DIGITAL/RETAIL BANKING

Starling Bank has received permission from the FCA to add Financial Services products to its Marketplace.  http://tinyurl.com/y9mvmads

The marketplace will enable users to access other financial services apps including ISAs, insurances, loans, mortgages, and other investment products, from within the Starling app. This is all being facilitated by Starling using “PSD2-ready APIs”.

 

Starling Bank has joined the Railsbank Platform as a partner to issue UK bank accounts and give access to UK Faster Payments through the Railsbank Open Banking API.  http://tinyurl.com/yc7oozd5

 

Travelex has published a Report: The Race to Re-bundle the Bank. http://tinyurl.com/yblr279q     Report. http://tinyurl.com/ya9lar3n

The Report says UK consumers have increased the total number of money-related accounts they hold, with more fintech and challenger bank accounts added than those from traditional banks over the last 10 years.

 

FINTECH/INNOVATION

The FCA has posted the list of firms in Cohort 3 of its regulatory sandbox. http://tinyurl.com/ydyj5ylb

There are 18 participants in the new Cohort including Barclays, first direct and Nationwide. The proposition from first direct has a marketplace flavour similar to Starling Bank but using in-house products

 

CYBERSECURITY

PayPal has announced that TIO’s network has identified a potential security breach that affects approximately 1.6m customers. http://tinyurl.com/yampd95j

The problem does not have any impact on the PayPal platform, which is separate to that of Tio Networks.

 

RTGS

The Bank of England, as part of the RTGS Renewal Programme, will develop and implement the new ISO 20022 messaging standards in the High Value Payment System and has established two Working Groups.  http://tinyurl.com/y9ue4o4z

 

CORPORATE ACTIVITY

Worldpay has posted a large number of items relating to the Vantiv deal. http://tinyurl.com/ybu5hver

Much of what has been posted is either historic documents or current legal documents. They include a Transaction Update presentation http://tinyurl.com/yakss6rg  and Update Statement  http://tinyurl.com/y7lt5bxu

 

Mastercard, in its Q3/17 Dividend announcement, has said that a new share repurchase program, authorizing the company to repurchase up to $4 billion of its Class A common stock is to go ahead. http://tinyurl.com/y82g38q8

 

WorldRemit has raised $40m in a Series C funding round that brings the total amount raised to $220m. http://tinyurl.com/y9kyjpbz

The funds will be used to drive the company’s next phase of growth. It currently supports remittances from over 50 countries to 148 destinations.

 

EPC/SEPA

The EPC has published its 2017 Payment Threats and Fraud Trends Report.  http://tinyurl.com/yd9jrzgy

The report reflects the recent developments concerning security threats and fraud in the payments landscape over the past year.

 

The EPC has published the Membership of the Steering Committee of the Mobile Proxy Forum (MPF).  http://tinyurl.com/yc3o9u6j

 

REGULATION

The UK Department for Business, Energy and Industrial Strategy has published guidance on The Consumer Rights (Payment Surcharges) Regulations 2012. http://tinyurl.com/yc8khqso                 Guidance Document http://tinyurl.com/yav3tj47

The guidance seeks to clarify the requirements of the amended 2012 Regulations, which come into effect from 13 January 2018 and prohibit traders from levelling a surcharge in relation to a wide variety of transactions.

 

The House of Commons Committee of Public Accounts has published a report on the growing threat of online fraud.  http://tinyurl.com/yan3hpk5

The Report concludes that banks do not accept enough responsibility for preventing and reducing online fraud and there will be little progress on tackling fraud unless banks start collaborating and making better use of technology.

 

Visa Open Letter to Merchants re Interchange. http://tinyurl.com/ybdvku4q

 

The European Banking Authority has welcomed the agreement reached on the finalisation of the Basel III framework.  http://tinyurl.com/y9s499ln

The EBA has also published a summary setting out the impact of the agreed reforms on the EU banking sector.  http://tinyurl.com/yavyw7bb

 

The ECB has announced that it has approved the consolidation of TARGET2 and the securities settlement platform TARGET2-Securities (T2S). http://tinyurl.com/ycqtq325

The consolidated system is expected to be launched in November 2021.

 

Statement by the Euro Retail Payments Board covering the status of past ERPB recommendations. http://tinyurl.com/ycqmb4ws

Main issues covered

  • P2P mobile payments
  • Instant payments in euro
  • Pan-European integration of payment initiation services (PIS)
  • Electronic invoice presentment and payment (EIPP) solutions
  • Development of open specifications for card and mobile contactless applications

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