25 May 2018

25th May 2018
  • Mobile/Contactless and omni-Commerce
  • Acquiring/Processing
  • Digital/Retail banking
  • Instant Payments
  • Fraud/Security
  • Open Banking/PSD2
  • Fintech
  • Corporate Activity
  • GDPR
  • EPC/SEPA
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

Square has launched its Square Stand in the UK. http://tinyurl.com/y7ebtk6c

The Square Stand connects with the Square Reader to allow businesses to accept card payments and run their entire operation from one device. There is a 50% off sales offer at £64 + VAT.

 

Sage is integrating PayPal with its Sage 50cloud solution.  http://tinyurl.com/y92esuwg

Once a PayPal account has been set up, Sage 50cloud customers can start taking payments on invoices immediately. In Europe the solution is also available in Germany.

 

Ingenico and the House of Marketing spin-off BotBakery are launching Belgium’s first chatbot that processes payments.  http://tinyurl.com/ydx4gp9w

The chatbot will enable Het Laatste Nieuws to complete new subscriptions, including payment, through their Facebook and website channels.

Ingenico working with Joinedapp, a US start-up, have developed a fully integrated payment solution compliant with all major messaging apps including Facebook Messenger, Line, Telegram, Kik, Skype, Slack and WeChat.

 

PayPal and Google are moving to a much more extensive level of integration. http://tinyurl.com/y9e4mbta

Users in the US who add PayPal to any one of Google’s services will be able to pay across the Google ecosystem, anywhere that PayPal is offered as a payment method, with only minimal setup. No mention of deeper integration outside the US.

 

The WSJ has reported that representatives of large retailers have met with federal regulators over Visa and Mastercard’s plan to combine their individual payment buttons on merchants’ online checkout pages.  http://tinyurl.com/ya7c8lgp

Retailers are concerned that the move could prevent them from routing their debit card transactions to lower-cost networks.

 

EMVCo has created a QR Payment Mark to promote global interoperability across EMV QR code payments.  http://tinyurl.com/ya34pm7s

EMVCo has published the QR Code Specifications at http://tinyurl.com/y96rtfst  to address two purchase scenarios where QR is present

 

ACQUIRING/PROCESSING

ABTA is encouraging Members to lobby MPs on cost of taking cards. http://tinyurl.com/yapjp974

The campaign is linked to the Treasury’s consultation on Cash and digital payments in the new economy, which ABTA says it will use to highlight the impact of regulatory changes like PSD2 and high acquirer and scheme fees.

 

Contis has integrated Google Pay into its payments platform. http://tinyurl.com/y84fzsbf

Google Pay will be offered across Contis’ entire suite of offers.

 

Wirecard is now offering loans via its platform to existing B2B customers. http://tinyurl.com/y92ust2v

The credit assessment and decision system is directly integrated into Wirecard’s digital payment infrastructure linked to an AI based data analysis system, which uses data from long-term business relationships to provide real-time decisions.

 

DIGITAL/RETAIL BANKING

UK Finance has published the latest edition of ‘The way we Bank now’. http://tinyurl.com/y83j7etj    Report http://tinyurl.com/ydchqocr

The report reveals that the popularity of services such as Twitter, Facebook messenger and WhatsApp, is encouraging banks to invest in similarly fast and convenient webchat services. Major banks had over 5.5m webchats with customers in 2017.

 

Crédit Mutuel has announced it is partnering with IBM to devise new ways of delivering customer services. http://tinyurl.com/y9weh7z2

The Bank has selected IBM Cloud, Watson and advanced cybersecurity technologies to fundamentally change how its customer relationships for all parts of its business are developed and maintained.

 

ING has opened a Developer Portal to accelerate innovation by working more closely with external developers.  http://tinyurl.com/y7er3fu3

The portal opens up ING API’s to developers to help corporate clients and fintechs to partner with the bank. https://developer.ing.com/openbanking/

 

Monzo has published a long list of areas in which it will seek to deliver improvements over the next three months. http://tinyurl.com/y7xktvhr

 

INSTANT PAYMENTS

Faster Payments celebrates its 10th Birthday. http://tinyurl.com/yd63csdo  Report http://tinyurl.com/y7ubswvo

More than 230,000 Faster Payments are now sent every hour compared with fewer than 3,000 per hour when it started.

 

FRAUD/SECURITY

Tandem Bank is introducing a new “Fraud Conversation” feature in its app.  http://tinyurl.com/yazbrq25

The feature allows users to confirm whether they are spending overseas or engaging in other potentially fraudulent activity thus avoiding getting their card blocked.

 

OPEN BANKING/PSD2

The Smart Payments Association has published an analysis of the final text of the RTS on SCA together with contextual commentary on the market challenges the standards were developed to address.  http://tinyurl.com/ycrmbxha

Given the work that has been going in the UK and across the EU it looks to be a bit behind the curb.

 

The OBIE has chosen NorthRow, a RegTech and compliance solutions provider, to verify its users in the EU and globally. http://tinyurl.com/y72quemu

The company will handle the identity proofing and verification processes for on boarding FinTech firms and other financial organisations.

 

The Emerging Payments Association (EPA) has written to the OBIE calling for it to amend the terms of the CMA’s framework so that emerging payments organisations can realise the potential of Open Banking.   http://tinyurl.com/yd8mzbfc Letter http://tinyurl.com/ybspnrqn

The letter identifies a good number of deemed shortfalls in meeting the CMA requirements.  There are clearly a number of fed up TPPs.

 

EU bankers step up warnings on threat from big tech. http://tinyurl.com/y9rv6epj

At a Conference a number of Senior bankers highlighted what they see as a lopsided regulatory balance resulting from the introduction of Open banking/PSD2.

 

FINTECH

Mastercard has announced the launch of Accelerate, a new initiative to drive growth in the European FinTech industry. http://tinyurl.com/yc82a8k7

The initiative will provide tailored support for innovation including access to insight, tools, technology and investment and will sit alongside the Start Path programme.

 

EC – How digital is your country? 2018 Digital Economy and Society Index shows Europe’s slow progress. http://tinyurl.com/yby5jg69

The Index shows that the EU is getting more digital but progress remains insufficient for Europe to catch up with global leaders and to reduce differences across Member States. This calls for a quick completion of the Digital Single Market and increased investments in digital economy and society.

Q&A  Country profiles  Factsheet: Digital Single Market for benefits of all Europeans  Factsheet: Data Economy for all Europeans

 

UK Finance and Parker Fitzgerald have issued a Report – Sustainable Financial Services in the Digital Age. http://tinyurl.com/yamj9j2z Report http://tinyurl.com/yc9zynbp

The Report considers that the safeguarding of data is a core requirement,  consideration of risk, particularly non-financial risks, needs to be part of the financial services technological revolution and it is essential that new technologies are integrated safely within existing operating models. Covers AI/Machine learning, migration to Cloud and DLT and calls for collaboration between stakeholders/regulators to create a robust risk framework.

 

CORPORATE ACTIVITY

Adyen has confirmed it plans to list on the Euronext stock market in June.  Offer Prospectus https://www.adyen.com/itf

The IPO will see 15% of Adyen’s stock being made available valuing the company at between €6bn and €9bn.

 

Adobe is to acquire Magento Commerce for $1.68bn.  http://tinyurl.com/yceff2ub    Magento CEO Blog    http://tinyurl.com/y8w9zhd2

Adobe will integrate Magento Commerce Cloud into the Adobe Experience Cloud, delivering a single platform that serves both B2B and B2C customers globally.

 

SIA is acquiring First Data’s card processing businesses in Central and South Eastern Europe for €375m.  http://tinyurl.com/y9m33qkg

The acquisition includes card processing, card production, call centre and back-office services, including 13.3m payment cards, 1.4bn transactions, in addition to the management of POS terminals and ATMs. 1,400 First Data employees will join SIA.

In another statement the Company says the acquisition is “crucial for our leadership in European payments”. http://tinyurl.com/y9x82mqx

 

Klarna has acquired a small German startup that offers a free ‘Universal Cart’ browser extension. http://tinyurl.com/y8xnymev

Apparently Klarna says it is only acquiring IP and taking over 8 Shop.co employees and will be closing down the extension.

 

GDPR.

The Information Commissioner’s Office (ICO) has launched a consultation to gather the views of stakeholders and the public on the way it plans to regulate new data protection laws. http://tinyurl.com/y8u3vk25  Consultation Documents http://tinyurl.com/yav2wetd

 

EPC/SEPA

The EPC has announced the formation of a new ad hoc multi-stakeholder group for the update of the Mobile Contactless SEPA Card Payments Interoperability Implementation Guidelines. http://tinyurl.com/yboftxrp

 

REGULATION

HMRC has updated its guidance on the card transaction disclosure programme, which extended the credit card sales campaign, launched in 2014, to include businesses accepting payment by cash, online or telephone, as well as by debit and credit cards.

 

The Council of the EU has adopted the directive amending the Fourth Money Laundering Directive. http://tinyurl.com/yahllah3

The next step is for it to be published in the Official Journal of the EU. One of the main changes relates to risks relating to prepaid cards and virtual currencies. On prepaid cards the threshold for identifying the holders is lowered from €250 to €150, and customer verification requirements are extended.

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