8 September 2017

8th September 2017
  • Mobile/Contactless and omni-Commerce
  • Instant Payments
  • Banking
  • Cash
  • Acquiring/Processing
  • Issuing
  • Fintech
  • DLT/Blockchain
  • Corporate Activity
  • EPC/SEPA
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

Transport for London has begun a public consultation on plans to make trams in London ‘cashless’.  http://tinyurl.com/yc6xw2n4

TfL wishes to convert all users to Oyster and contactless bank cards.

Meanwhile TfL has issued an Oyster app supported by Cubic that allows users to top up and manage their card on their mobile. http://tinyurl.com/y98ohm3s  TfL page http://tinyurl.com/y9dvvdlp

 

Visa – The contactless revolution ten years on. http://tinyurl.com/y7yt7zd4

 

Square is operating a ‘pop-up’ shop in Birmingham. http://tinyurl.com/ycm3wjxn

The aim is to offer advice to small business owners across the region and coincides with a survey that says West Midlands businesses are missing out on sales by not offering cards.

 

Tesco Bank has announced that PayQwiq, its digital wallet app, is to be re-launched as Tesco Pay+.  http://tinyurl.com/y8zut2bd

More details are to be released later in the month.

 

Global Processing Services (GPS) is now supporting Apple Pay.  http://tinyurl.com/y73db84y

 

The BRC – KPMG Retail Sales Monitor says online sales of Non-Food products grew 11.0% in August, above both the 3-month and 12-month averages. http://tinyurl.com/y9rfvcpo

 

The Barclays Corporate Banking Online Retail Report suggests £3.4bn worth of goods are left in virtual shopping baskets across the UK each year. http://tinyurl.com/y7txxh4m

From browse to buy: the conversion challenge http://tinyurl.com/yahhobdj

The Bank advises that Investment in online sales, through techniques including discounts, mobile optimisation and flexible delivery options, could cut abandonment in half.

 

SumUp has announced it has launched in 15 new markets.  http://tinyurl.com/yau6amkd

This expansion move doubles the number of markets in which SumUp operates to 31. The PSP says it reached profitability last summer, exceeded $100m in annual revenue and currently processes more than 100,000 card transactions daily.

 

KBC Bank Ireland has launched a new mobile app to enable the onboarding of new customers. http://tinyurl.com/yao5ybxs

The app enables new customers to open, activate and use their bank account 24/7 with the operation, which includes taking a selfie and sending a photo of a driving licence, taking about five minutes. On opening, a virtual Debit card is loaded automatically into the phone’s digital wallet for immediate use.

 

Mastercard is launching Android Pay with Maestro in Belgium.  http://tinyurl.com/ybcpngow

The functionality is available to cardholders with a Maestro debit card from KBC/CBC/KBC-Brussels or BNP Paribas Fortis, Hello Bank and Fintro.

 

Vipps and Nets have entered into an agreement making “straksbetaling”, the instant payment solution in Norway, available for P2P payments. http://tinyurl.com/yahtf8ma

The agreement means that customers of all banks in the Vipps partnership and not just DNB will start to be able to receive instant payments by the end of the year.

 

ACI Worldwide global survey indicates mobile wallet adoption is growing.  http://tinyurl.com/ya3d6b3y

UK use is estimated at 14%, well below Spain (25%), Italy (24%) and Sweden (23%).

This is a rehash of data from the Fraud Survey first issued in February

 

INSTANT PAYMENTS

equensWorldline has been selected by three major banks in the Netherlands as their infrastructure provider for Instant Payments. http://tinyurl.com/ycgtcmrp

Despite the fact that the project is well on track with the development of the infrastructure completed, according to the plans of the Dutch banking community the first Instant Payments will not be processed until 2019 when the full roll-out will take place. (See EPC below).

 

BANKING

Nordea is to move its domicile to Finland from Sweden.  http://tinyurl.com/yafag3ru

All operations in the Nordic home markets will remain unchanged and there will be no change in the banks day-to-day operations from a customer perspective. The move is driven by the perceived need to be within the EU banking union and is an important strategic step in positioning Nordea on a par with its European peers.

 

CASH

Article by the ECB’s Yves Mersch – The role of cash: Customer retention and tie to the citizen. http://tinyurl.com/yc4v7k4y

This is essentially a defence of cash and the need for Central and Commercial banks to support it.

 

ACQUIRING/PROCESSING

Secure Trading has announced a strategic partnership with Luxembourg based COMO Global. http://tinyurl.com/yab3l8qw

COMO is described as an ‘intelligent payments marketplace’ with its technology connecting merchants to multiple payment gateways and acquirers, enabling them to access different providers at any time through a single point of contact. https://www.comoglobal.com/

 

BNP Paribas is offering nexo’s acquirer payment acceptance messaging protocol across 14 European countries.  http://tinyurl.com/y79b8lrs

The bank will deploy nexo’s  ISO 20022 based acquirer messaging protocol across Germany, Austria, Belgium, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Poland, Portugal, the United Kingdom, Slovenia, and Switzerland.

 

ISSUING

solarisBank is to use SIA to support the launch of new contactless debit cards in Germany. http://tinyurl.com/y7op8hvv

SIA will also provide solarisBank with support for other products and services including issuance in other countries.

 

FINTECH

The Basle Committee has issued a Consultation paper — Implications of fintech developments for banks and bank supervisors. http://tinyurl.com/y9z9uj4m  Paper http://tinyurl.com/ya2pj788

The paper assesses how fintech may affect the banking industry and the activities of supervisors in the near to medium term. Various future potential scenarios are considered, with their specific risks and opportunities. The Committee has identified 10 key observations and related recommendations on supervisory issues.

 

Meanwhile there are multiple reports that the ECB is working on licensing rules for fintechs. http://tinyurl.com/yahlr9o3

 

DLT/BLOCKCHAIN and DIGITAL CURRENCY

The Bank of Russia has issued a new statement on the risks of cryptocurrencies and initial coin offerings (ICOs).  http://tinyurl.com/ybqe5uwp

This follows a move by the Chinese to ban ICOs.

 

ECB/Bank of Japan Report: Payment systems: liquidity saving mechanisms in a distributed ledger environment.  http://tinyurl.com/yc7uya7c

In December 2016 the Bank of Japan (BOJ) and the European Central Bank (ECB) announced the launch of a joint research project entitled “Stella” to assess the applicability of DLT solutions in the area of financial market infrastructures. This report is the first outcome of the collaboration.

The result is that, while the tests undertaken ‘provide reasons to be optimistic with respect to the capabilities of DLT within payment systems’, given the test environment ‘any assumptions regarding the capacity for DLT to be used in production should not be made from this report’.

 

CORPORATE ACTIVITY

After and FT article suggesting a $5bn bid is on the table from Hellman & Friedman Nets issued a statement regarding the rumours. http://tinyurl.com/ycbjlhcj

‘Further to media speculation, Nets confirms that discussions are still ongoing regarding a potential takeover offer for Nets A/S. There is no certainty at this stage that an agreement will be reached. Nets will revert with further information when appropriate’.

 

Fiserv has announced the completion of its acquisition of Monitise plc. http://tinyurl.com/y7m66bwr

Presumably the additional £5m raising the bid to £75m has enabled acceptance by Monitise shareholders.

 

EPC/SEPA

Agenda and minutes of the 4th meeting of the EPC Scheme End-User Forum.  http://tinyurl.com/ya729xns  Minutes http://tinyurl.com/y9hzendh

Amongst the items discussed was the implementation status of the SCT Inst scheme.  Only PSPs in four countries are expected to adhere to the SCT Inst scheme by the end of November 2017 when the scheme goes live. The EPC says it has never expected a ‘Big Bang’ effect.

 

REGULATION

The FIDO Alliance has entered into the debate about screen scraping with a letter to the EC and European Parliament.  http://tinyurl.com/ya5a6spr  Letter http://tinyurl.com/y9sz4nsy

The detailed letter sets out three main problems with endorsing screen scraping and states ’We do not see any way in which the screen scraping approach requested by the EC can be implemented to the level of enhanced security called for in PSD2’. It says that any dilution of the RTS would send the wrong message and that a policy exemption might be one solution.

 

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