2 February 2018

2nd February 2018
  • Mobile/Contactless and omni-Commerce
  • ACH/Instant Payments
  • SMEs
  • Fraud/Security
  • Acquiring/Processing
  • ATMs (LINK)
  • GDPR/Data sharing
  • Blockchain/DLT/ Cryptocurrencies
  • Corporate activity
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

Visa Checkout has reached the 1m mark for enrolled accounts in the UK.  http://tinyurl.com/ycljoush

Visa claims some merchants are already seeing as much as a third of payment volumes being made through Visa Checkout. The merchant rosta includes lastminute.com, The Hut Group (whose brands include lookfantastic, Zavvi and Myprotein), AXS, Domino’s, Ebuyer, HMV, Match.com and Mighty Deals, but could still be said to lack some major hitters.

 

Vocalink’s Pay by Bank is partnering with Shieldpay to provide Shieldpay users with a deposit method. http://tinyurl.com/ydbnsmsq

The Shieldpay platform protects both payer and payee in any transaction by verifying the identity (and beneficial ownership) of all parties. Funds are held securely in the Shieldpay Vault, and are only released when both parties agree.

 

Klarna meanwhile is supporting Maplin with its Pay later and Slice It services. http://tinyurl.com/y764qfr2

 

ING has created a ‘digital shoebox’ app branded ‘Receipts & invoices’.  http://tinyurl.com/y9wh6n4s

The app enables small business clients to use their phone’s camera to scan receipts and bills, and then link them directly to transactions. It already has 42,000+ users in the Netherlands.

 

iDEAL says it now holds a 57% market share for online payments in the Netherlands.  http://tinyurl.com/ybwsgmfr

More than half of all iDEAL payments are now made in mobile banking apps. iDEAL is also expecting growth in the use of QR codes.

 

Trustly is partnering with the Latvian national airline airBaltic.  http://tinyurl.com/ybc5qfwz

airBaltic’s customers in the UK, Sweden, Germany, Estonia and Poland will be able to use the Trustly platform with a further six countries coming on stream during H1/18.

 

This is why ABN AMRO bowed out of Payconiq. (Reported last week)  http://tinyurl.com/y75q4ekb

ABN claims Tikkie’s market share is 86% with a weekly average of 440,000 payment requests.

 

The German Cooperative banks are to rollout a new ‘Friends and Family’ mobile payment service in the Summer.  http://tinyurl.com/y8c8xyz8

The launch that will enable users to make smartphone payments at POS using the VR-Banking app follows a successful pilot.

 

Alipay has announced that a group of Chinese travellers have made the first ever cashless journey to Finland, with all transactions throughout their trip made via their Alipay accounts. http://tinyurl.com/y8qycfn2

 

MasterCard and AirPlus International are running a joint promotional campaign for virtual cards. http://tinyurl.com/y8qcrtyg

The campaign’s aim is to get business travel service providers interested in the benefits of payment without a physical card.

 

UnionPay International and Huawei are to partner in launching Huawei Pay in markets outside the Chinese Mainland.  http://tinyurl.com/y877p7xy

The move will allow customers outside mainland China to add their UnionPay cards to their Huawei Pay-enabled smartphones with Russia being the first market to benefit.

 

ACH/INSTANT PAYMENTS

Vocalink has announced that BFC Bank has become the latest direct participant in the FPS through its PayPort platform. http://tinyurl.com/ycbneedw  BFC http://tinyurl.com/ycbneedw

 

SMEs

UK Finance has released new guidelines to simplify the account opening process for SMEs.  http://tinyurl.com/y9op5nxy

18 business bank account providers have agreed the basic set of information that they require customers to provide when opening or switching an account.

 

FRAUD/SECURITY

IBM has released a new study on the ‘Future of Identity’.  http://tinyurl.com/yars3vc8

The study examines consumer perspectives around digital identity and authentication and indicates security is now more important than convenience when users are logging in.

 

ACQUIRING/PROCESSING

eBay is switching primary payment processors with move from PayPal to Adyen.  http://tinyurl.com/yc4efwtd

The switch will not take place until mid-2020 with PayPal remaining as a payments option at checkout until July 2023. It is part of eBay’s move to intermediate payments on its Marketplace platform. eBay says that eBay that payments intermediation is strategically important to improve the buyer and seller experience on its platform (eBay will manage the entire checkout experience) and to support further innovation.

 

Wirecard is providing payment processing services for Advanon’s online factoring marketplace for SMEs as it launches in Germany.  http://tinyurl.com/y9r4e6rw

Advanon, which already operates its invoice financing platform in Switzerland, will also be taking advantage of Wirecard’s German banking licence.

 

ATMs (LINK)

LINK has released details of the measures it is taking regarding the LINK ATM network. http://tinyurl.com/y88rrrj3

The main move is a series of reductions in interchange starting with 5% in July 2018 to achieve an overall reduction of 20%. There will be a shift of incentives for deploying ATMs from city centres to rural and less-affluent communities.  There are a series of linked documents: Detailed LINK Announcement               LINK Board Decision and Impact Assessment

 

The proposals have generated a good deal of comment containing some caveats.

The PSR generally welcomes the additional measures that LINK has said that it will introduce. However the PSR will continue to actively monitor developments based on monthly impact reports from LINK. http://tinyurl.com/y9gtgtaa

Treasury Select Committee says “Any significant reduction in free access to cash would be an unacceptable outcome”. It also places an explicit onus on the PSR to ensure no loss of access. http://tinyurl.com/yd4ktahq

Which? is concerned about LINK’s ability to maintain free access to cash. http://tinyurl.com/y9gtgtaa

 

Meanwhile LINK is seeking ‘Expressions of Interest’ for infrastructure provision for the LINK network.    http://tinyurl.com/y9lkhlq5

Details on the stages of the competition and more information can be found at: http://tinyurl.com/ybx8uef9

A final decision for the whole process is expected in Q1/19.

 

GDPR/Data Sharing

The EC has issued a GDPR guidance paper http://tinyurl.com/y76hgozv   and a new web page http://tinyurl.com/yc2ztgll  to help businesses prepare for 24 May.

The most recent implementation update (November) showed only Germany and Austria had adopted the relevant national legislation.

 

UK Finance’s latest Brexit Briefing covers UK-EU data-sharing.  http://tinyurl.com/y846xh2z

Brexit will require a new relationship between two legal frameworks based on the mutual goal of ensuring a high standard of protection for citizens’ personal data. UKF says agreement over the adequacy of the respective data protection regimes may not be straightforward and work needs to be started now if a cliff-edge is to be avoided.

 

BLOCKCHAIN/DLT/CRYPTOCURRENCIES

The EC has launched the EU Blockchain Observatory and Forum. http://tinyurl.com/ybc4ce2x  Factsheet http://tinyurl.com/ya4n5uno

The new body will highlight key developments of the blockchain technology, promote European actors and reinforce European engagement with multiple stakeholders involved in blockchain activities.

 

Banco Santander has said in its Q4/17 results release that it is partnering with Ripple to roll out DLT-based personal payments in Q1/18. The service will first go live in Spain, Brazil, the UK and Poland.

 

CORPORATE ACTIVITY

ING is purchasing a 75% stake in Payvision.  http://tinyurl.com/yantn9cd

The deal puts a value of €360m on Payvision and is aimed at strengthening ING’s omni-channel capabilities and merchant services in e-Commerce.

 

Alibaba Group has agreed to acquire a 33% holding in Ant Financial.  http://tinyurl.com/yczpsxkg

Alibab says “an equity stake in Ant Financial enables Alibaba and our shareholders to participate in the future growth of the financial technology sector”

 

The RELX Group has announced it is to acquire digital identity platform ThreatMetrix for £580m. http://tinyurl.com/ycwxbrv6

ThreatMetrix will become part of Risk & Business Analytics, under the LexisNexis Risk Solutions brand integrating its capabilities in device, email and social intelligence.

 

American Express has acquired AI-based virtual travel assistant Mezi. http://tinyurl.com/yatsvbdt

Mezi is a personal travel assistant app that helps consumers plan and book trips. Using AI it learns travellers’ preferences and the way customers make requests.  The platform is already powering AskAmex, a personal concierge app for cardholders.

 

MasterCard Q417 and Full year Results.  http://tinyurl.com/ycgfa9be                                                      Regional Data http://tinyurl.com/yd395htb

 

Visa Q1/18 Results. http://tinyurl.com/yahbrwxm  Regional Data http://tinyurl.com/y89wyvgm

 

REGULATION

The PSR has issued information notices to Visa Europe and Mastercard in order to help the PSR to monitor compliance with caps on interchange fees.  http://tinyurl.com/y8q7k2wo

The PSR has asked for reports on the gross amount of interchange fees paid by a subset of acquirers and received by a subset of issuers in the UK from 9 December 2015 to 31 December 2017. This will become an annual event, although not necessarily from the same schemes.

 

 

 

 

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