1 March 2019

1st March 2019
  • MWC19 announcements
  • Mobile/Contactless and omni-Commerce
  • Digital/Mobile Banking
  • Acquiring/Processing
  • Instant Payments
  • Fintechs
  • PSD2/Open Banking
  • Fraud/Security
  • Blockchain/DLT/Cryptocurrencies
  • Corporate Activity
  • SEPA

MWC19 announcements

Mastercard and Doconomy have announced a new initiative to combat climate change. http://tinyurl.com/y39hf5c4

DO is a free mobile banking service that lets users track, understand and reduce their CO2 footprints through carbon offsetting. The launch of DO sets a new standard for purpose-driven payment services and is a major step in Mastercard’s commitment to drive innovation for a sustainable future.

 

MasterCard has published its Sixth Digital Payments Study. http://tinyurl.com/y4w8bfed                Infographic http://tinyurl.com/y4gt8puh

Mobile payments represented more the 27% of the total social media conversation around payments, with total mentions increasing 20% over the previous year. Mentions of mobile wallets specifically have more than doubled since 2017.

 

Mastercard and Russian telco MegaFon have signed a memorandum of cooperation on the development of financial services. http://tinyurl.com/y4lb4bmo

The partnership has launched the Credit via Mobile service – a mobile financial marketplace for subscribers that gives direct access to a range of banking services. MegaFon has 15m subscribers making purchases via smartphones and over 2m using the MegaFon Bank mobile application based on their Mastercard account.

 

Mastercard and the Cardsmobile Russian technology company are working on a universal tokenization platform powered by the Mastercard MDES. http://tinyurl.com/y5q6co9f

The new platform provides issuers worldwide with a service for adding existing Mastercard cards and issuing new ones to smartphones and wearables that support contactless payment technology. Agreements have been reached for connecting a number of Russian banks to the service.

 

Visa and Planeta Informatica have announced the launch of new technology that makes the implementation of contactless payments in the public transit environment faster, easier and cheaper. http://tinyurl.com/yyp6mech

The Visa Secure Access Module (SAM) enables transit organizations and operators to offer travellers the ability to pay with a contactless card, phone or wearable device, without the expense and technical requirements of replacing current turnstiles or terminal hardware.

 

Visa and Stanford University have published a major global transportation study covering 19,000+ commuters in 19 countries. http://tinyurl.com/y6royvog

Examining the Big Picture: Visa, Mobility and the Cities of Tomorrow. http://tinyurl.com/y5cfl2cu             Report http://tinyurl.com/yxndxb99

 

Ingenico Group has announced it is exploring voice commerce and the integration of secure payment acceptance into vocal bots. http://tinyurl.com/y2l2lfbp

Ingenico Labs has designed a voice-based shopping experience that includes secure payment with two prototypes to be unveiled at MWC this week. Both prototypes allow users to select specific products or services with their voice through a connected speaker and finalise their purchase smoothly by confirming their transaction on their mobile.

 

Ingenico has also announced that it will demonstrate a Tap on Phone (ToP) proof of concept that enables secure NFC payments on consumer-off-the-shelf devices with a dedicated app.   http://tinyurl.com/y6424jka

ToP relies on a kernel, a payment app and on back-end monitoring to ensure the device is as secure as traditional payment terminals. This protocol is still in early stages of development as the PCI council has not yet released their certification specifications.

 

MOBILE/CONTACTLESS and omni-COMMERCE

GSMA ‘State of the Industry Report on Mobile Money’. http://tinyurl.com/yy9x6v3f                                  Report http://tinyurl.com/yyn2zvg6   Exec Summary http://tinyurl.com/y3wdfcpt

Now processing over $1.3bn a day, the mobile money industry added a record 143m registered customers in 2018. The progress, challenges and most ground-breaking industry trends are explored in this year’s State of the Industry Report on Mobile Money.

 

AmazonGo type stores are not welcome everywhere in the US.  http://tinyurl.com/yxv94spw

The New Jersey Legislature and the Philadelphia City Council have passed measures this year that would ban cashless stores. New York City, Washington, San Francisco and Chicago are considering similar moves.

The strategic sales director at Worldpay has a different view point. http://tinyurl.com/y33lmfyx

 

DIGITAL/RETAIL BANKING

UK Finance, in partnership with Linklaters, has launched a new online guide to Ethics in Banking and Finance.

The Guidelines provide firms and individuals operating in the sector with key reference points for governance, strategy and decision-making informed by ethical principles.

 

ACQUIRING/PROCESSING

DNB has extended its partnership with Nets.  http://tinyurl.com/y2fjnb7k

The agreement increases Nets’ scope beyond card processing and payment services to include joint innovation and a variety of value-added payment and card services.

A similar deal has been struck with Eika Gruppen, an alliance of 69 Norwegian banks that will also see the delivery of new solutions.

 

Ethiopian Airlines has expanded its partnership with Paysafe into eleven additional countries across Europe. http://tinyurl.com/yag3n8pc

The development will cover customers in Austria, Belgium France, Germany, Ireland, Italy, the Netherlands, Norway, Spain, Sweden and the UK, who will have the option to pay for flights using Skrill, NETELLER and Rapid Transfer.

 

JCB International and JCC have announced the signing of a joint licencing agreement. http://tinyurl.com/yxeg3maw

The agreement will enable JCB cards to be used at all JCC POS systems, ATMs and online touch points across Cyprus and Greece.

 

Sage is partnering with UK payments fintech, Modulr, to automate management of accounts payable and payroll. http://tinyurl.com/y6ceyfd4

The Sage Salary and Supplier Payments solution will enable business owners, payroll managers, accounts payable administrators, payroll bureau and accountants to manage and process payments from directly within the Sage Accounts and Payroll products.

 

INSTANT PAYMENTS

EBA CLEARING has announced RT1 has now reached a critical mass of PSPs in Germany.  http://tinyurl.com/yxg3ykur

Deutsche Bank, DZ BANK and Commerzbank have joined UniCredit AG, Hanseatic Bank and the two Landesbanken Helaba and LBBW, increasing the number of PSPs in Germany that are addressable via RT1 to more than 1,700 with more scheduled to connect to RT1 in the next few months.

 

Tinkoff Bank has become an early adopter of the Bank of Russia’s Faster Payments System. http://tinyurl.com/yy92xlhf

Customers can now make and accept instant payments to and from accounts at any FPS member bank using just a mobile phone number. The FPS system, introduced earlier this year, will be expanded to allow individuals to pay companies for goods and services in H2/19. 12 banks and payment systems are taking part in the pilot phase with a further 98 banks applying to join.

 

FINTECHs

Another push by the EC  on Fintechs and payments this time via a speech by Vice-President Valdis Dombrovskis. http://tinyurl.com/y3or8dsq

“And it has become clear that for certain strategic technologies, the capacity to drive cutting-edge innovation will determine our sovereignty as a continent. Payments is one of those strategic technologies.”  The speech pushes the development of common standards, PSD2 and particularly the adoption of TIPS for instant payments.

 

And more from the ECB’s Yves Mersch, this time on Fintechs – Lending and payment systems in upheaval: the fintech challenge. http://tinyurl.com/y4x4za4p

Takes the view that lending platforms are currently unlikely to threaten banks’ market position in lending but that  payment Fintechs are having a more pronounced impact.  Interestingly he would appear to have slightly altered his stance re ICS with the statement that ‘although it is desirable to have strong domestic European payment providers, not the least to be less exposed to extraterritorial jurisdiction, we should not use protectionist measures to shield incumbents from market pressures’. However he then goes on to say that ‘the industry should address the obstacles hampering the emergence of European players’ versus global competitors.

 

PSD2/OPEN BANKING

Press reports suggest that NatWest has developed a bank account aggregator service that will enable users to access current account balances and transactions from 15 other banks alongside their NatWest accounts without leaving the app. Another source says NWB will be rolling out on iOS shortly followed by an Android version.

 

M&S Bank is leveraging open banking for mortgage applications. http://tinyurl.com/yy6pcgpc

In future customers will no longer need to source and supply copies of bank statements to support their mortgage application.

 

FRAUD/SECURITY

The APP Scams Steering Group has agreed a voluntary Code of good practice. http://tinyurl.com/y525rsge   Contingent Reimbursement Model Code http://tinyurl.com/y4bg7brl

Consultation response http://tinyurl.com/y26ypyr3

The Code will become effective on 28 May 2019 and customers of those PSP that are signatories will be protected under the Code from that date.  The Steering Group has concluded that in the minority of cases where both the consumer and PSPs involved in a transaction have met their expected level of care (the so-called ‘no blame’ scenario), the consumer will be reimbursed.

N.B. The Code as it stands does not (yet) cover PISPs.

 

The PSR has issued a statement welcoming the Code. http://tinyurl.com/y39uo5ce

It includes the fact that the PSR recognises that an implementation date of 1 April 2019 for Confirmation of Payee will not be achievable. However it says that it still wants to see CoP brought in as soon as possible and also to make sure that when it is introduced, it is an effective way to stop this type of crime taking place.

 

BLOCKCHAIN/DLT/CRYPTOCURRENCIES

The Basel Committee on Banking Supervision met in Basel on 27-28 February to discuss a range of policy and supervisory issues and agreed to publish high-level supervisory expectations related to crypto-assets in light of the high degree of risks associated with such exposures. These expectations will be published in March.

 

CORPORATE ACTIVITY

Heidelpay Group has acquired PoS specialist Alpha-Cash Payment. http://tinyurl.com/y3w5z7r5

Heidelpay says the purchase of Alpha-Cash strengthens its position in the extremely fragmented area of PoS and expands its presence at the PoS in the east and north-east of Germany. https://www.alpha-cash.de/

 

Nets has consolidated its position in Poland through a strategic alliance with Przelewy24.  http://tinyurl.com/y5jk63wc

Nets will gain a majority stake of 51% in the consolidated Polish group that will include Przelewy24 and the recently acquired Dotpay/eCard.

 

SEPA

The ECB has published a SEPA Migration Impact Assessment. http://tinyurl.com/yyua67hq

Not surprisingly the ECB considers that SEPA migration may be considered a success in terms both of completion and of the quantitative and qualitative impact on European payments users. However, it says there is still work to do, particularly in the area of card payments where SEPA has not been achieved. With national card schemes attaining pan-European reach only by making use of ICS, the vision of being able to pay with a domestic European card at any payment terminal across Europe needs to be brought to fruition.

 

The Principality of Andorra and the Vatican City State / the Holy See are now part of the geographical scope of SEPA. http://tinyurl.com/y43le8wf

This brings the total of countries in the Scheme to 36.

 

 

Latest News Round-up

17 May 2019

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New technology in banking

The latest ING International Survey indicates Europeans are wary of new technology in banking, despite a high demand.

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