27 July 2018

27th July 2018
  • Mobile/Contactless and omni-Commerce
  • ATMs (LINK)
  • UK Payments Infrastructure/Open Banking
  • PSD2/Open Banking
  • Issuing
  • Acquiring/Processing
  • Remittances
  • Digital/Retail Banking
  • Blockchain/DLT/Cryptocurrencies
  • Corporate Activity
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

The IMRG Capgemini e-Retail Sales Index for June shows a 16.9% year-on-year growth. http://tinyurl.com/yd7dq5d6

 

The BRC KPMG Retail Sales Monitor for June indicates online sales of Non-Food products grew 8.5%. http://tinyurl.com/y9n6zbks

 

Worldpay has entered an agreement with MasterCard to offer the MasterCard ‘Pay by Bank’ solution. http://tinyurl.com/y7x2rmqv

The mobile and online payment application will be made available to Worldpay’s UK merchants in early 2019. Worldpay will also enable Mastercard MoneySend and support EMVCo’s Secure Remote Commerce (SRC) framework.

 

Worldpay has posted a piece on its Drone Pay proof-of-concept. http://tinyurl.com/y8qu5qkx

The proof-of-concept uses EMV contactless payment card technology to verify the identity of the recipient, ensuring a parcel is delivered to the right person at the right address. This technology is embedded into a drone landing pad, which is issued to the customer in the form of a doormat.

 

Visa has published payment statistics during the World Cup. http://tinyurl.com/y7ll95tn

Visa claims 50% of payments were via contactless.

 

Apple Pay is now available to BBVA’s customers in Spain. http://tinyurl.com/y8crd8ql

 

The Paris metro is to go contactless.  http://tinyurl.com/y7buxnqz

Modernisation of the region’s transport system is to see the phasing out of metro and bus tickets in favour of a “smart Navigo” smartphone solution.

 

Wirecard and Mastercard are to expand their existing strategic cooperation. http://tinyurl.com/y7txaowd

The move will seek to make contactless payments via wearables more accessible via cooperation with Garmin Pay to make boon available in Germany.

 

Wirecard is launching a new Payment Page Designer for online retailers. http://tinyurl.com/ybwcxjho

The new Payment Page Designer – an intuitive web interface – allows all visual elements to be adapted allowing retailers to match their payment pages to reflect their visual brand identity, thereby optimizing the customer experience.

 

Wirecard, is also expanding its partnership with SAP to launch Wirecard Extension for SAP Commerce. http://tinyurl.com/ybev9w2g

SAP Customer Experience customers will be able to benefit from payment and acquiring solutions provided on one digital platform.

 

The ING International Survey Mobile Banking 2018 has been published. http://tinyurl.com/ydewaj5m

The Survey covered nearly 15,000 people in Europe, the USA and Australia asking how they prefer to pay – and which services they avoid.

 

MYPINPAD has announces the launch of Open mPOS. http://tinyurl.com/yab7chl5

Open mPOS is a complete mPOS authentication platform that enables merchants, Acquirers and PSPs to deploy PIN on Mobile technologies without the need to undergo their own Software PIN on COTS (SPoC) PCI certification.

 

eBay is to roll-out Apple Pay Acceptance on its Marketplace Platform later this year in the US. http://tinyurl.com/y78quhbg

The move is a “first step” in offering more payment options on the site post the Adyen takeover from PayPal.

 

ATMs (LINK)

LINK has cancelled the third ATM interchange reduction, due in January 2020, and put on hold the fourth reduction, due in January 2021. http://tinyurl.com/y92xfljh

The decision has been driven by a 6% yoy fall in the volume of ATM transactions (and of course has nothing to do with recent political and media pressure on its proposals)

 

PSR response  http://tinyurl.com/yabbf8ee

The PSR will continue to monitor the outcome of LINK’s decisions closely and make sure that it keeps its commitment to maintain the current geographic spread of ATMs.

 

 

UK PAYMENTS INFRASTRUCTURE/OPEN BANKING

The NPSO is seeking industry views on its initial Confirmation of Payee API specification. http://tinyurl.com/ycgyv3b9

Towards the end of the summer the NPSO intends to publish the final technical specification to enable prospective participants in CoP to develop and offer CoP services to customers.

 

Meanwhile the OBIE has published several refinements to its plan for developing the UK’s Open Banking standards. http://tinyurl.com/y9wyxdm6  Roadmap v2.5 http://tinyurl.com/ycw2dhgn

The new ‘roadmap’ adds measures to improve the customer experience when using Open Banking services, in particular services accessed through mobile apps. It also includes some minor changes to the delivery schedules of some items. This reflects a desire on behalf of the OBIE and its partners to focus first on the functionality that matters most to customers – particularly in integrating Open Banking with existing mobile services.

 

Bacs has also announced that Nigerian owned The Access Bank UK is the third FI this year to join, making a total of six new participants added to Bacs in just over the last 12 months. http://tinyurl.com/y8zvpsne

 

PSD2/OPEN BANKING

The EBA has published its final Guidelines on fraud reporting under PSD2. http://tinyurl.com/yagqlknv  Guidelines http://tinyurl.com/yabqwboy

The Guidelines, developed in close cooperation with the ECB are aimed at contributing to the objective of PSD2 of enhancing the security of retail payments in the EU.

 

Worldline has obtained two PISP and AISP licenses from the National Bank of Belgium. http://tinyurl.com/y87vlav7

 

Israeli based Nayax has gained Payment Institution status in Lithuania. http://tinyurl.com/y8vx637s

The provider of cashless payment solutions and management platform for unattended retail will now open an office to attack the European market. Nayax’s open platform and APIs allows integration with other companies’ solutions and ERP software.

 

 

ISSUING

ACI Worldwide has announced that Rabobank is to use ACI Issuer to modernise the management of its card portfolio business. http://tinyurl.com/y9lwmzrz

The solution will allow Rabobank to issue new payment products more quickly, including all card types and new tokenized payment products.

 

Russian Agricultural Bank, Panasonic Russia and JCB International have launched a co-branded card. http://tinyurl.com/yc89w7vg

The new co-branded card is unique for Russia in that it complements and expands the existing Panasonic loyalty program.

 

Stripe has announced a new issuing platform – Stripe Issuing. http://tinyurl.com/ycu2m8pg

The new platform creates, distributes, and manages both physical and virtual cards using the Stripe Issuing API and is certified directly with all major card networks as an issuing processor.

 

ACQUIRING/PROCESSING

equensWorldline has announced a strategic partnership with Commerzbank. http://tinyurl.com/y83ksg7y

The partnership will see equensWorldline process all SEPA, instant, multi-currency, and domestic payments for Commerzbank, for a period of ten years. Commerzbank will also outsource its Financial Messaging SWIFT Infrastructure.

 

ACI Worldwide is introducing new self-integration capabilities to its UP eCommerce Payments solution. http://tinyurl.com/y9bcdutb

The enhancement provides a way for local card acquirers and alternative payment methods to integrate with ACI’s global network of payment endpoints and connect to ACI’s eCommerce payments API.

 

UnionPay International is partnering with La Banque Postale for the acceptance of  UnionPay cards in France. http://tinyurl.com/y7elzvh7

Cardholders will get access to 37,000 merchants and 7,600 ATMs of the bank within the next 12 months. At present, about 70% of ATMs and more than 200,000 merchants in France accept UnionPay cards.

 

REMITTANCES

Visa and MoneyGram have announced a strategic agreement to digitize the process of cross-border payments in the US. http://tinyurl.com/y7y8ryy6

Utilizing Visa Direct, the agreement will enable secure cross border remittances; once live, MoneyGram’s service will enable its users to choose their preferred method of sending and receiving funds. The new service is currently available in the UK, Spain, France, Italy, Netherlands and Australia, and will be expanded over the next three months.

 

DIGITAL/RETAIL BANKING

Starling Bank is developing a debit card that functions on a vertical axis. http://tinyurl.com/y882ftqr

The cards will eliminate embossed numbering with all card details printed on the back and will reflect the way people use them at ATMs and POS. (Not well received by some who see it as a publicity stunt.)

 

BLOCKCHAIN/DLT/CRYPTOCURRENCIES

The BoE has completed a Proof of Concept (PoC) to understand how a renewed RTGS service could be capable of supporting settlement in systems operating on innovative payment technologies, particularly DLT. http://tinyurl.com/y7ccgzxz

 

Coinbase has announced it is to issue e-gift cards that can be used for purchases in major retailers. http://tinyurl.com/y725cmap

Coinbase customers will be able to spend their cryptocurrency balances using the e-gift cards at the likes of Nike, Tesco, Uber, Google Play, Ticketmaster, Zalando, and others.

 

Skrill meanwhile is enabling the purchase and sale of cryptocurrencies via the Skrill wallet. http://tinyurl.com/y7vl3abw

Crytocurrencies, including Bitcoin, Bitcoin Cash, Ether and Litecoin, can be transacted using any one of the 40+ fiat currencies available in the Skrill wallet.

 

TransferTo is integrating with Stellar, a distributed and open-source blockchain platform. http://tinyurl.com/ycv2uuxa

The partnership will combine the two networks and enhance the choice of how financial institutions and partners can make cross-border payments.

 

Several reports have appeared indicating Mastercard has won a U.S. patent for a method of speeding up cryptocurrency payments. http://tinyurl.com/y79m89ry

 

CORPORATE ACTIVITY

The CMA has decided the Experian/ClearScore merger should be subject to a Phase 2 Investigation unless the two parties offer solutions to resolve the CMA’s concerns. http://tinyurl.com/y7e3m2y2

The Regulator is concerned that the deal, which would see the first and second-largest providers of free credit score checking in the UK combining, could result in a substantial lessening of competition.

 

EQT, in partnership with Saxo Payments Banking Circle’s founders and other co-investors, is to acquire Saxo Payments Banking Circle from Saxo Bank. http://tinyurl.com/y9mm2knh

EQT will support the continued acceleration of Banking Circle’s growth strategy, in current and new geographies, as well as the expansion of its product portfolio. Techcrunch backgrounder says consideration is $300m. http://tinyurl.com/yc5j6nzw

 

PayPal has led a funding round of $50m in PPRO Group. http://tinyurl.com/ydh9fp4x

Other investors include Citi Ventures and HPE Growth Capital.  PPRO will use the funds to PPRO to accelerate the expansion of its payments platform and international presence. PayPal recently signed a commercial agreement with PPRO to provide a wide range of payment options for its merchants as part of its new PayPal Checkout with Smart Payment Buttons development.

 

REGULATION

The BoE, the FCA, the PRA and the PSR have signed a Memorandum of Understanding that sets out the high-level framework the Authorities use to cooperate with one another, in relation to payment systems in the UK.  http://tinyurl.com/ydbzma72

 

The PSR has announced a market review into card-acquiring services. http://tinyurl.com/ybuycwys  The draft terms of reference for the market review is open for consultation until 14 September 2018.

Stakeholders have raised concerns that indicate the supply of card-acquiring services may not be working well for merchants and the PSR’s objective is to ensure that the supply of the acquiring services is competitive and works in the interests of merchants, and ultimately consumers.

BRC Comment http://tinyurl.com/ya6l75ld

 

The PSR has published its Annual Report and Accounts for 2017/18. http://tinyurl.com/yb9w82un Report http://tinyurl.com/y8yj6mbg  .

 

FCA Speech: How can we ensure that Big Data does not make us prisoners of technology? http://tinyurl.com/yc4y9bxe

There is a need to anticipate the fundamental questions which Big Data, artificial intelligence and behavioural science present, and make sure that we innovate ethically to shape the answers.

 

The FCA has published the outcome of testing behavioural remedies to address under repayment of credit card debt. http://tinyurl.com/ybp9ld22  Research note http://tinyurl.com/y8vn3uh3

One of the key findings is that the majority of credit card repayments are made manually and not by direct debit. The FCA is now going to take forward consultations on the issues around changing its rules and guidance to mandate the removal of the minimum repayment anchor.

 

The CMA has published its Annual Report 2017/18. http://tinyurl.com/y76aqsrb

 

Speech by Stefan Ingres Governor of the Sveriges Riksbank – Money and payments – where are we heading? http://tinyurl.com/y7aqjtpv

A long speech that essentially defends the central bank’s position of guardian of money and the payments system while recognising the need to move forward as the environment changes.

 

 

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