22 June 2018

22nd June 2018
  • Mobile/Contactless and omni-Commerce
  • ATMs
  • Cash and cards
  • Acquiring/Processing
  • Issuing
  • Digital/Retail banking
  • Open Banking/PSD2
  • Blockchain/DLT/Cryptocurrencies
  • Fraud/Security
  • Authentication
  • Corporate Activity
  • EPC/SEPA
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

The Visa UK CSI shows strong uptick for Consumer spending in May. http://tinyurl.com/y85gsjfo  Report http://tinyurl.com/y7te468f

Headline Findings: – Consumer spending: up +0.9% year-on-year, the quickest increase since March 2017 – Face-to-Face spends: up +1.5% on the year, strongest upturn since October 2016. Spending through eCommerce channels rose by +0.8% compared to a year ago in May, to signal the first increase in this category for three months.

 

The latest IMRG Capgemini e-Retail Sales Index for May shows an increase of +19.4% YoY.  http://tinyurl.com/y9mlj6lh

In a month that saw good weather, a royal wedding, the FA Cup Final, and two bank holidays, this was the highest YoY increase for May since 2010.

 

Customers using the latest version of the TfL app can now view their contactless payment cards journey history and check payments. http://tinyurl.com/yb62g7ds

 

Nordea is introducing Apple Pay for its First Card business users in the Nordics. http://tinyurl.com/ya9wahfm

 

Santander Norge has followed Nordea by also making Apple Pay available to its customers. http://tinyurl.com/y8lg226s

 

Etsy has integrated Klarna on its German website and app. http://tinyurl.com/y9jf4mxe

The additional payment option is currently being rolled-out.

 

Worldpay is launching a new authorization solution AuthMax in the US. http://tinyurl.com/y8njujoo

The solution is designed to increase credit and debit card approval rates for US based eCommerce merchants.

 

Nets is working with OP’s Pivo Wallet to pilot mobile payments in Finland. http://tinyurl.com/y8jqhr8a

The move will see Pivo payments being made available at selected brick-and-mortar shops that use Nets terminals and later online. Pivo users will also have access to a new e-receipt functionality within the app. Pivo claims to be the preferred mobile wallet in Finland.

 

Hotelsclick.com, an Italian online hotel booking operator, has integrated Amazon Pay into its payment methods. http://tinyurl.com/y7m835eo

Hotelsclick says it is one of the first OTA in Europe offering this service.

 

Mastercard is to begin rolling out a Smart Mirror with payment function in the UK later this year. http://tinyurl.com/y7dy9op4

Developed by Oak Labs in the US and already in use there, Mastercard says the Smart Mirror will reduce time in the changing room by 40%, eliminates queuing time, as well as personalising the shopping experience for the consumer. Users will pay for purchases by tapping the mirror with a card, payment device or through the app.

 

UnionPay International and Global Blue are extending their existing partnership. http://tinyurl.com/y9b9mlrg

Targeting the Chinese globe shopper market, the companies have created a new tax-free shopping portal hosted on UnionPay International’s mobile and PC websites for Chinese shoppers.

 

ATMs

The FCA’s latest analysis from its Financial Lives survey will no doubt add fuel to the fire over Bank/ATM withdrawals in UK rural areas. http://tinyurl.com/y7r6h2ow

In rural areas, a higher than average proportion of adults (13%) aged 55 and over, or who are younger and have a long-term health condition, have difficulty getting to a bank. This compares to 9% in urban areas. On top of that, of UK adults who never use the internet, 70% (or 3.7 million people) live in rural areas and the take-up of mobile banking in rural areas (23%) is half that in urban areas (45%).

 

Bankomat and EVRY have extended their existing ATM agreement. http://tinyurl.com/yahovga7

EVRY will provide the entire value chain associated with Bankomat’s 1,800 ATMs.

 

CASH and CARDS

UK Finance has published its latest card usage figures showing that the use of debit has overtaken that of cash.  http://tinyurl.com/ybyd3ejm  UK Payment Markets Summary http://tinyurl.com/ybfzd3h6

Data indicates UK consumers made 13.2bn debit card payments compared to 13.1bn cash payments. Meanwhile 63% of people in the UK now use contactless payments.

 

The Bank of England has published its response to the HMT Call for Evidence on Cash and Digital Payments in the new economy. Response  http://tinyurl.com/y8ak3le7

Its primary conclusion is that the usage of cash is evolving, but there is, and is likely to remain for the foreseeable future, a significant public demand for banknotes. It also argues for the retention of the £50 note. It would seem to be unconcerned about the loss of small denomination coins, citing evidence that their withdrawal elsewhere has not had a negative effect on prices.

 

ACQUIRING/PROCESSING

Worldpay is to introduce Sentenial’s Nuapay service to provide its customers with a new solution for recurring payments. http://tinyurl.com/y7gkp3tf

The integration with the Worldpay platform will enable merchants to manage direct debits across Europe to meet demand driven by the expanding subscription-economy.

 

SIX Payment Services has announced it has extended its current agreement with Bancontact in Belgium. http://tinyurl.com/y6w8mj6m

The agreement will see SIX continuing to operate and develop the Bancontact Scheme Switch.

 

Wirecard has announced it is launching a new fleet card program – Wirecard Fleet & Mobility.  http://tinyurl.com/y9tpcqkq

The product has been developed with Visa combines sophisticated fleet management, tracking and reporting tools with the ability to authorise, manage and pay securely for Transport industry services. The solution will be rolled out in countries in the CEE and CEMEA regions first.

 

ISSUING

Barclaycard is partnering with selected companies of the Travis Perkins Group to launch a new range of co-branded business credit cards. http://tinyurl.com/y9vtultu

The rollout of the new cards will start with Travis Perkins and Toolstation this month. The no-fee cards will provide customers with an extended interest-free credit period of up to 116 days for all purchases made at the initial participating companies.

 

 

DIGITAL/RETAIL BANKING

Monzo has launched Monzo Web as an online interface for customers who are unable to use their phone for access. http://tinyurl.com/yd82gjl4

Monzo has also announced its plan to offer cheque imaging for paying in using the new using the Image Clearing System. http://tinyurl.com/y7egxdv2

 

OPEN BANKING/PSD2

The FCA has issued a statement on the EBA’s draft PSD2 Guidelines and Opinion for banks and others involved in open banking. http://tinyurl.com/y82z7pxn

The FCA says it is supportive of the views contained in the EBA Opinion and encourages firms and API initiatives to consider the views. It expects to fully comply with the Guidelines when the final version is published (These will almost certainly not change from the draft). The FCA will consult on changes to its guidance and rules to reflect the RTS, Opinion and draft Guidelines during the summer.

 

The OBIE Trustee has replied to the Emerging Payments Association’s open letter on the status of the open banking project.  http://tinyurl.com/yb5bvbew

 

Experian has obtained FCA licence as a AISP. http://tinyurl.com/ybdwurke

Experian says one bank has already signed up to use its Open Banking platform and that others are at the proof of concept stage.

 

Jyske Bank in Denmark has gone live with account aggregation for its personal banking customers using technology from fintech Spiir. http://tinyurl.com/yc6g9n4d

Spiir’s Nordic API Gateway is a API service that connects with any Nordic bank.

 

BLOCKCHAIN/DLT/CRYPTOCURRENCIES

BIS – Cryptocurrencies: looking beyond the hype. http://tinyurl.com/ycwknbuj  Article http://tinyurl.com/yanl8sur

Conclusion – Overall, the decentralised technology of cryptocurrencies, however sophisticated, is a poor substitute for the solid institutional backing of money.

 

FRAUD/SECURITY

The PSR has published its latest work on authorised push payment scams. http://tinyurl.com/yb8foa78

 

AUTHENTICATION

Signicat has partnered with Belgium Mobile ID to integrate the Belgian itsme digital identity scheme into the Signicat Digital Identity Platform. http://tinyurl.com/ybnzexhw

Primarily the technology enables financial institutions and online retailers to gain frictionless customer on-boarding, ongoing, advanced user authentication and regulatory compliance. The partnership with Signicat allows businesses throughout Europe to accept itsme® as an official mobile ID.

 

Česká spořitelna, the Czech Republic’s largest bank, has deployed Nuance Communications Security Suite’s voice biometrics technology. http://tinyurl.com/yb3r7h5d

The project is part of Česká spořitelna’s recently announced digital banking strategy and will enable customers to authenticate themselves by voice when calling the bank. Nuance’s voice biometrics technology works in the background to measure physical and behavioural characteristics of callers’ voices, matching each legitimate customer with their unique voiceprint to confirm their identity.

 

CORPORATE ACTIVITY

Nets has announced the acquisition of Dotpay/eCard in Poland for €73m.   http://tinyurl.com/ya8awvea

Dotpay/eCard’s primary focus is in eCommerce. The acquisition is subject to approval by the relevant Polish authorities. Closing is expected to be in Q4/2018.

 

Global Processing Services (“GPS”) has raised £44m in a funding round PE investor Dunedin taking a significant stake in the business. http://tinyurl.com/ya7ludbn

The deal is apparently the UK’s 3rd largest fin-tech financing in 2018 and will be used by GPS to facilitate continued growth, strengthen its offering and expand its global footprint.

 

CYBG has agreed terms for the purchase of Virgin Money.   http://tinyurl.com/y87kgs7t  Presentation http://tinyurl.com/y8jmpqc3

The deal value is £1.7bn following completion of the Offer, Virgin Money Shareholders will own approximately 38% of the Combined Group.

 

Brex, a US fintech startup, has successfully completed a $57m funding round.    http://tinyurl.com/ydc7bbsy    https://brex.com/

Brex is a Visa branded Corporate card for start-ups that offers higher than average credit with no personal guarantee or security deposit and is available via online application.

PayPal has agreed to acquire Hyperwallet’s global payout platform for $400m. http://tinyurl.com/ybrwov8e

PayPal says the acquisition enhances its payout capabilities, improving its ability to provide an integrated suite of payment solutions to ecommerce platforms and marketplaces globally. It looks like Hyperwallet will live under the Braintree umbrella.

 

PayPal, following the Hyperwallet purchase, has now spent $120m on Simility.  http://tinyurl.com/ybmo5xab   https://simility.com/

Simility is a fraud prevention and risk management platform. Following the close of the deal, merchants on the PayPal platform will gain access to best-in-class fraud tools that can be customized to reflect the nuances of their businesses through their existing account management dashboard.

 

Adobe has completed its acquisition of Magento Commerce Cloud. http://tinyurl.com/y862whwz

 

EPC/SEPA

House of Commons European Scrutiny Committee has examined the Regulation on cross-border payments in the EU –and has asked the Government a number of questions relating to the UK’s membership of SEPA. See http://tinyurl.com/ycvcs7st Page 61.

 

REGULATION

Following Visa’s system failure, Nicky Morgan MP, Chair of the Treasury Committee, wrote to Charlotte Hogg, CEO (Europe) of Visa, to find out what went wrong, how Visa would ensure that a similar failure didn’t happen again, and whether customers or merchants would be entitled to compensation from Visa.

Letter from Visa regarding service disruption, 15 June 2018 ( PDF 4.79 MB) (

 

 

 

 

Industry Videos

Central 1, a Canadian credit union, is trialling an authenticated Voice Banking Service using Amazon Alexa.

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