20 April 2018

20th April 2018
  • Mobile/Contactless and omni-Commerce
  • UK Payments System
  • Cash
  • Issuing
  • Digital/Retail Banking
  • Fraud/Security
  • Blockchain/DLT/Cryptocurrencies
  • Open Banking
  • Corporate Activity
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

The Sun in the UK says it has successfully cloned a Contactless card in someone’s pocket using an easily obtainable app.  http://tinyurl.com/y83bubnd

The app allegedly captures the PAN and expiry date but not the CCV, presumably via the mag stripe.

 

iZettle has launched a new e-Commerce platform. http://tinyurl.com/y8hlw55b

The platform offers merchants an omni-channel capability and gives a full overview of in-store and online sales in one place. Inventory gets automatically updated after every sale and merchants get actionable data to maximise sales.

 

Sella is to support Alipay in Italy via Gestpay.  http://tinyurl.com/ya3x4774

 

SPAR Netherlands has introduced a QR based cashless payment solution, Skippen, at its store in Utrecht University.  http://tinyurl.com/yb4apopx

Using the payment feature in the SPAR university app, customers can checkout via Tikkie without using a POS.

 

Mastercard Labs is looking to recruit 175 more staff for its Dublin operation.  http://tinyurl.com/ybzuuw37

The new staff will be focused on driving yet more innovation.

 

Sage has announced a partnership with Stripe that will provide SMEs with digital invoicing capabilities.  http://tinyurl.com/yb49lc28

Users of Sage Business Cloud Accounting now have full invoice capabilities enabling the digitisation of all invoicing and payment through credit and debit cards in real-time.

 

Amazon has launched a new ‘International Shopping’ functionality within the Amazon Shopping App. http://tinyurl.com/yd6o5t3j

The app enables international customers to browse and shop over 45m eligible items that can be shipped to their country from the United States.

 

UK PAYMENT SYSTEM

Transferwise has become the first non-bank PSP to be a direct participant in FPS and gain access to RTGS.  http://tinyurl.com/y6urt8al

 

CASH

G4S has published its Cash Report for 2018.  http://tinyurl.com/ybgukv3k                                                         Report http://tinyurl.com/y97kl4oe

The 2018 World Cash Report brings together data from 47 countries across six continents. The report includes relevant data on cash and non-cash payments from the past five years. It has been analysed to look at the past, present, and future of cash in our society and the way we organise its distribution throughout the cash cycle.

 

ISSUING

Avantcard is to acquire Tesco’s Irish credit card portfolio. http://tinyurl.com/ybtywmem

Avantcard is a fully owned subsidiary of EVO Banco, a PE held Spanish retail bank. The portfolio has some 27,000 customer accounts, which will be migrated to the Avantcard platform by this autumn.  Avantcard previously acquired the MBNA portfolio in 2012 and is regulated by the Bank of Ireland. Tesco is withdrawing from Ireland to avoid the need to apply for a full banking licence post-Brexit.

 

EMVCo says that by the end of 2017, 54.6% of all cards issued globally were EMV-enabled. http://tinyurl.com/y8wrga7v

The number of EMV payment cards in worldwide circulation increased by 1bn over the previous 12 months to a total of 7.1bn. 63.7% of all card-present transactions conducted globally in 2017 used EMV chip technology. 98.6% of Europe Zone 1 card-present transactions used EMV.

 

DIGITAL/RETAIL BANKING

PrePay Solutions has partnered with challenger bank Countingup to provide a business accounting and banking package. http://tinyurl.com/ybnpc3l4

PPS is providing Countingup with the banking infrastructure to support the service that includes a UK sort code and account number and a MasterCard together with an app that provides an overall look at the financial health of the business.

 

FRAUD/SECURITY

Stripe has upped its fraud offer with the launch of Radar 2.0. http://tinyurl.com/ox4so8p

Stripe says it has upgraded almost every component of its fraud detection platform including the introduction of AI.  In early testing, the upgraded models helped reduce fraud by over 25% compared to previous ones, without increasing the false positive rate.

 

FICO has also upgraded its anti-fraud solutions with a number of new products including an enhanced FICO Falcon Platform.  http://tinyurl.com/y87ptq5v

 

FIDO Alliance and W3C have announced a major Standards Milestone towards Simpler, Stronger Authentication on the Web. http://tinyurl.com/ya86sx3c

A collaborative effort, WebAuthn defines a standard web API that can be incorporated into browsers and related web platform infrastructure which gives users new methods to securely authenticate on the web, in the browser and across sites and devices. Google, Microsoft, and Mozilla have committed to supporting the WebAuthn standard in their browsers and have started implementation for Windows, Mac, Linux, Chrome OS and Android platforms.

 

Visa and Mastercard are to support the EMVCo Secure Remote Commerce (SRC) Technical Framework.http://tinyurl.com/ydays735

MA http://tinyurl.com/yamtdsaj Visa http://tinyurl.com/y9r2ualx

The framework seeks to define, among other things, a consistent payment payload for processing and integration across networks and integrated cardholder security by replacing the sensitive account information stored in PANs with EMV Payment Tokens. The Visa Digital Commerce Program based on the framework will start migration to the new program beginning in late 2018.

 

Kount has released its “State of Payment Processing & Fraud: 2018” report.  http://tinyurl.com/ya72yvyf

The report surveyed approximately 15% of the worldwide payment processor community to gain a clear understanding of their strategic priorities over the next year, as well as the value processors place on using qualitative and quantitative analysis within their organizations.

 

Cifas has published its 2018 Fraudscape report. http://tinyurl.com/y6vdnpdk  Report http://tinyurl.com/yctljelf

The report identifies and details the fraud trends from over 300,000 cases of fraudulent conduct recorded in 2017, mainly concentrating on the likes of identity, application and takeover fraud. There is a section on cards that indicates there has been a reduction in card fraud other than in takeovers of card accounts, which increased by 40%.

 

BLOCKCHAIN/DLT/CRYPTOCURRENCIES

Banco Santander has launched an international payments service using blockchain-based technology from Ripple.  http://tinyurl.com/yaax78wx

The service is available to retail customers in Spain, UK, Brazil and Poland with more countries to follow. The ‘Santander One Pay FX’services enables customers to complete international transfers on the same day or by the next day. The service also shows them the exact amount that will be received in the destination currency before they make the transfer.

 

OPEN BANKING

The OBIE has announced that regulated companies are now able to offer new Open Banking services to consumers and businesses, ending the Managed Roll out phase.  http://tinyurl.com/y7ammv43

As regulated companies have focused on the Data capabilities of Open Banking (AIS), it has not been possible to test the Payments functionality (PIS) to the same degree and, therefore, new payments-focused services will still be put through extensive proving as they engage with the system.

 

CORPORATE ACTIVITY

Concardis Payment Group formed. http://tinyurl.com/y8bhjfgd

Advent and Bain owned Concardis has been amalgamated with RatePAY, Mercury Processing Services International, Cardtech and PCS/Simplepay to form a new group focusing on the DACH region. The new group says it will invest significantly in developing its customer proposition for merchants, digitising its processes and further expanding its direct go-to-market capabilities.

 

Verifone Systems is to be acquired by an investor group led by Francisco Partners for c$3.4bn billion, including Verifone’s net debt. http://tinyurl.com/y8268nqq

The Verifone Board of Directors has unanimously approved the deal, which is subject to a “go-shop” period, which will see Verifone return to private ownership. The Company says the transaction reflects the progress made executing its transformation from a terminal sales company to a payments and commerce solutions provider.

 

Adyen has announced that it generated $1.14bn in annual revenue for 2017(+ $400m) with a processing volume of $122bn (+61%). http://tinyurl.com/ycyd6bvp

No other significant details given.

 

Paysafe has agreed to acquire iPayment Holdings, a U.S. based PSP in the SME market. http://tinyurl.com/y8nry8gg

The acquisition, which follows an earlier move on Merchant Choice Payment Solutions, will establish Paysafe as a top 5 non-bank payment processor in the U.S. iPayment comes with more than 137,000 merchant customers as well as annual processing volumes of over $28bn in 2017.

 

REGULATION

FCA Speech: Payments after PSD2: evolution or revolution.  http://tinyurl.com/y9ysrwld

The FCA has so far received applications from 59 firms for AIS and PIS licences. Some of these are for re-authorisation but the FCA is seeing firms which already operate extensively in other countries and are seeking to move into the UK market with payment initiation services. The HMT/FCA are clear in their wish for the market to proceed down the API route.

 

The Competition Appeal Tribunal has agreed to stay a claim brought by BT and other telcos against Mastercard over interchange fees, as it waits for appeal decisions in similar litigation cases. http://tinyurl.com/y9sg3bhf

It looks as if this long running saga may be heading towards some kind of end-game.

 

The CMA has launched a Consultation that seeks views on improving competition in consumer-facing markets.   http://tinyurl.com/y7en7yfw  Paper http://tinyurl.com/y7axfshm

One of the areas covered is ‘helping consumers benefit from their data and remain protected when they buy and sell online’.

The paper is somewhat partial in its references to previous Government policies. There is quite a strong focus on utilities and data usage/protection.

 

The European Parliament has adopted the 5th Anti-Money Laundering Directive. http://tinyurl.com/ycnsyyoa

 

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