29 June 2018

29th June 2018
  • Mobile/Contactless and omni-Commerce
  • ATMs
  • UK Payments Infrastructure
  • Acquiring/Processing
  • Issuing
  • Digital/Retail banking
  • Remittances
  • Open Banking/PSD2
  • Blockchain/DLT/Cryptocurrencies
  • Fraud/Security
  • Authentication
  • Corporate Activity
  • EPC/SEPA
  • Regulation

 

MOBILE/CONTACTLESS and omni-COMMERCE

Barclaycard says that retailers are seeing shopper returns of £7bn a year. http://tinyurl.com/y74fq5us

Clothes shopping online is fuelling the rise of the ‘serial returner’, as almost half of the amount consumers spend ends up being refunded.

As a consequence, three in ten retailers are increasing the price of items to cover the cost of managing and processing returns.

 

Tesco is using staff at its Welwyn Garden City headquarters to trial new “shop and go” technology. http://tinyurl.com/ycgolnmt

The technology allows customers to scan and pay for their groceries on their smartphone and then walk out of the store without visiting a till.

 

As Google Pay launches in Germany, Commerzbank says it is the first major bank in Germany to offer it.  http://tinyurl.com/y8zp57z2

 

Meanwhile Wirecard have announced that boon is now available for all Android users in Germany via the Google Play Store. http://tinyurl.com/y8ezfjbu

 

Apple has started supporting the iDEAL payment method in its App Store for customers in the Netherlands. http://tinyurl.com/ydcxeedh

 

German fashion retailer Breuninger has introduced Alipay and WeChat Pay supported by Wirecard. http://tinyurl.com/ya24ssqh

 

PayPal has announced its new PayPal Checkout with Smart Payment Buttons™. http://tinyurl.com/yb6j3mrr

The new PayPal Checkout will enable a personalized checkout experience and dynamically present the most relevant payment methods at checkout — including PayPal, Venmo, PayPal Credit and to come local alternative payment methods.  The latter will include iDEAL, Bancontact, MyBank, Giropay & EPS.

 

phyre, a Bulgarian start-up, has announced the launch of its MDES wallet. http://tinyurl.com/y78negon  Web site http://tinyurl.com/yafxmg8c

phyre is a Mastercard certified mobile app backed by licensed Bulgarian e-money institution Paynetics. The new app developed in collaboration with Global Processing Services allows cardholders to pay and get their loyalty rewards with a single app.

 

ATMs

Which? says ATMs are disappearing – with rural communities worst hit. http://tinyurl.com/ybdn8nne

According to Which? 1,500 machines closed during the period 11/17 to 04/18 – marking a near six-fold increase from a steady rate of fewer than 50 closures a month since 2015.

However, the FT is reporting that LINK says this analysis is not the case and in fact FTU machine numbers have increased. http://tinyurl.com/y873xlko

 

CashFlows is to support IN2Retail, an ATM deployer/operator, with BIN sponsorship for its ATM estate in the Netherlands and Ireland. http://tinyurl.com/ycxzc8dk

CashFlows’ BIN sponsorship allows IN2Retail to process card payments on behalf of its ATM customers without the requirement to join multiple card schemes.

Cashflows meanwhile continues its relationship with CardTronics. http://tinyurl.com/yav5btaj

 

UK PAYMENTS INFRASTRUCTURE

Bank of England – The journey to best in class payments – speech by David Bailey. http://tinyurl.com/yb3wgtyn

The speech sets out what the BoE is doing to make sure systemically important payment systems are robust and resilient, their underlying infrastructure is best in class, and its regulatory toolkit remains fit for purpose and future-proof. Covers off NPSO and New Payments Architecture in some detail.

 

ACQUIRING/PROCESSING

eCOMM Merchant Solutions, an Irish based PSP, has announced it is now operating in the UK and Greece as well as Ireland. http://tinyurl.com/y7uewcc8   https://www.ecomm365.com/

eCOMM says it is a payment gateway, acquirer, underwriter and processor. It is currently preparing to launch operations in Hungary and Cyprus.

 

Deutsche Bahn Connect has fully migrated to the Concardis Payengine multichannel platform. http://tinyurl.com/y9q9asu3

All the company’s online and mobile transactions for the Connect mobility services offered by the Flinkster car-sharing network and Call a Bike now go through one channel.

 

ISSUING

Venmo is making a “limited release” launch of a MasterCard badged debit card in the US. http://tinyurl.com/ycgmqeqb

The card will enable holders to use their Venmo balance in most places in the MasterCard network and to withdraw cash at ATMs.

 

DIGITAL/RETAIL BANKING

Starling Bank is launching joint accounts that can be opened online. http://tinyurl.com/y8ulw7nq

Using Google Nearby technology by tapping ‘find your other half’ within the app., customers will simply have to sit next to one another to apply for an account.

 

Monzo has tied the knot with TransferWise to provide international money transfers from within the Monzo app. http://tinyurl.com/ya8qhv3k

 

FairFX is moving into the international business account market with a new subsidiary Fair Everywhere. http://tinyurl.com/yc9fhler

This is FairFX’s first step into the SME banking sector since its acquisition of CardOne earlier this year. The new business current accounts will be made available to customers in early 2018. http://www.faireverywhere.com

 

REMITTANCES

AlipayHK and GCash are launching a cross-border remittance service through their e-wallet platforms between HK and the Philippines. http://tinyurl.com/ycjt5ceo

The service uses blockchain technology developed by Alipay and claims to be the first blockchain-based cross-border digital wallet remittance service globally. Standard Chartered Bank is the first and core partner bank supporting the initiative. Clearly this is only a start and commentators (and Jack Ma) are seeing it as a beginning of a challenge to Western Union and other remittance incumbents with a fast, secure and low cost service.

 

SWIFT’s global payments innovation service (gpi) is to be rolled out to all banks in the SWIFT network by 2020.  http://tinyurl.com/y9ycpq73

Take up of gpi has been rapid and already accounts for 25% of SWIFT cross-border payment traffic and is being used by 49 of the top 50 banks globally. The platform enables banks to offer same day end-to-end delivery with full tracking and transparency, throughout the payment chain.

 

OPEN BANKING/PSD2

The EBA has opened its Q&A tool to PSD2: http://tinyurl.com/ycqeb7fu

“Users will now be able to review on the EBA website all the EBA’s final Technical Standards and Guidelines associated with the PSD2 by navigating through the Directive on an article by article basis. The inclusion of the PSD2 into the Q&A tool will also allow users to submit any questions they may have on the application of this Directive and the EBA’s work related to it”.

 

BLOCKCHAIN/DLT/CRYPTOCURRENCIES

Mark Carney in his Mansion House speech said that the BoE work to rebuild the RTGS system will include the ability to interface with other platforms created on blockchain technology. http://tinyurl.com/ydeo8zy5

“RTGS is being rebuilt so that new private payment systems, including those using distributed ledger, can simply plug into our system. Our new, hard infrastructure will be future-proofed to your imaginations, opening up a range of potential innovations in wholesale markets and corporate banking and retail services.”

 

The Bank of England has written a letter to CEOs of banks, insurance companies and designated investment firms to remind them of the relevant obligations under PRA rules, and to communicate the PRA’s expectations regarding firms’ exposure to crypto-assets. http://tinyurl.com/ya2fparq

 

As part of Monetary Dialogue being held in July the ECON Committee of the European Parliament has published a number of papers for debate. http://tinyurl.com/yavdpwpb

These papers will be presented as a catalyst for debate at the Monetary Dialogue on 9 July. Who’s to say what the outcome will be.

 

FRAUD/SECURITY

Ticketmaster has suffered a major data breach first flagged by Monzo but initially ignored. http://tinyurl.com/y94gcqqm

 

AUTHENTICATION

BBVA is trialling facial recognition technology with employees at BBVA’s headquarters in Madrid. http://tinyurl.com/y7slddlc

Developed by fintech startup Veridas – a JV of BBVA and Das-Nano – customers in the bank’s restaurants simply present themselves at a camera booth next to the cash registers, and provided they have registered, the system identifies them and automatically bills the customer for the purchase.

 

CORPORATE ACTIVITY

The EC has cleared the acquisition of VeriFone Systems by Francisco Partners Management.

The Commission concluded that the proposed transaction would raise no competition concerns given the minor horizontal overlaps and the lack of vertical relationships between the companies’ activities. The transaction was examined under the simplified merger review procedure.

 

EPC/SEPA

Minutes of the thirteenth meeting of the ad-hoc multi-stakeholder group on mobile contactless SEPA card payments (May 2018). http://tinyurl.com/y7l3b5jh

 

EPC has published a “Recirculation paper”: improving the efficiency of the handling of cash. http://tinyurl.com/yddekxtq

The objective of the “Recirculation paper” is to delineate the position of the EPC with respect to the recirculation of euro banknotes, in order to promote this position within national banking communities and other relevant stakeholders, with the ultimate goal of increasing cash efficiency by means of recirculation.

 

REGULATION

The FCA is proposing changes to its complaint handling rules to support push payment fraud redress. http://tinyurl.com/y7x8aalr

Where their own PSP is not at fault, victims of APP fraud cannot at present complain to the PSP receiving their payment. The FCA is consulting to require firms to handle these complaints in line with complaints handling rules in the FCA Handbook.  It is also proposing to allow eligible complainants to refer these complaints to the Financial Ombudsman Service.

 

The FCA has also published an update on its Strategic Review of Retail Banking Business Models. http://tinyurl.com/y9qb4osd  Update Report http://tinyurl.com/yaoavo79

This review looks at the sources of competitive advantage that have helped the major banks to retain their market shares in the recent past, with a view to evaluating the potential for change and the impact of that change on business models.

 

HMT has issued a paper that sets out the government’s approach to bringing EU financial services legislation into domestic law under the EU (Withdrawal) Act. http://tinyurl.com/y7k5ffg5

 

The PSR has also published its approach. http://tinyurl.com/y8we8zob

The PSR states  “In leaving the EU without a deal, many functions currently carried out at an EU level would need to be allocated to the appropriate UK bodies. As part of this on shoring process, the Treasury intends, subject to parliamentary approval, to task the PSR and other financial regulators with amending EU binding technical standards (BTS) and with maintaining those BTS going forward. For the PSR, this relates to the BTS made under the Interchange Fee Regulation. These powers are linked to our role as the main competent authority for the Interchange Fee Regulation in the UK”.

 

The FCA  http://tinyurl.com/yanbyngv and

The Bank of England http://tinyurl.com/y9qmn23u have separately set out the details of their approach.

 

The Treasury Select Committee has published Correspondence and evidence relating to the IT problems at TSB. http://tinyurl.com/yakz6jse

 

The European Banking Authority has launched a public consultation on its draft Guidelines on outsourcing. http://tinyurl.com/ydz687r4  Consultation paper http://tinyurl.com/y9tblvvf

The Guidelines, aim to establish a more harmonised framework for outsourcing arrangements of all financial institutions in the scope of the EBA’s action. The revised Guidelines cover payment institutions subject to PSD2 and electronic money institutions subject to the e-money Directive.

 

Nordea Holding Abp has been granted a banking licence by the European Central Bank. http://tinyurl.com/yd2a3w8f

The banking licence is part of the preparation for Nordea’s move into the banking union, the merger of Nordea Bank AB (publ) into Nordea Holding Abp and its re-domiciliation to Finland.

 

The U.S. Supreme Court has held American Express did not violate federal antitrust law by preventing merchants from steering customers to other credit cards.  http://tinyurl.com/yb8wzyev  Reuters http://tinyurl.com/y8dgtqk3

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