11 October 2019

11th October 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • Instant Payments
  • Open Banking &PSD2
  • Blockchain, DLT and Cryptoassets
  • Fraud &Cybersecurity
  • Digital & Retail Banking
  • Cash(less)
  • Corporate Activity
  • Regulation (EBA)
  • Brexit

DIGITAL & eCOMMERCE

The BRC-KPMG Retail Sales Index for September shows online sales of Non-Food products grew 0.7%, the worst ever recorded.

Non-Food Online penetration rate increased from 28.0% in September 2018 to 29.9% last month. Normal retail sales fell by 1.3 per cent on a total basis.

 

UK Finance has published the monthly card data for July.

35% of credit card transactions and 50% of debit card transactions were made using contactless cards.

 

NatWest is starting a trial of a biometric credit card.

Claiming a UK bank first the three-month national trial is piloting biometric fingerprint technology with 150 customers, in partnership with Mastercard and Gemalto. The biometric credit cards will offer contactless payments using fingerprint verification for transactions up to £100, an increase on the current £30 limit. Once a digital fingerprint is locked onto a card, it cannot be changed. The user’s biometric data never leaves the card, is never shared with the merchant or bank, and no fingerprints are stored in a cloud.

 

Wirecard and SES-imagotag are partnering to offer a “pay to tag” solution for in-store mobile payment.

The solution connects Wirecard’s mobile payment platform with all SES-imagotag cloud-connected IoT labels, providing shoppers with seamless in-store shopping together with e-coupons instant redemption and cash-back.

 

Wirecard is also launching a new instalment payment plan for online shops in Germany.

The new offering, which is available via the Wirecard digital financial commerce platform, is to be extended across Europe with Wirecard expecting initial transaction volumes of over €3bn using the new solution.

 

ACQUIRING/PROCESSING

Ingenico Group is introducing a suite of Chinese payment methods.

Ingenico is moving to support all use cases for WeChat Pay, including the capability to integrate into WeChat Official Accounts and Mini-Programs, together with Alipay and UnionPay’s (UPI) SecurePay and ExpressPay solutions.

 

INSTANT PAYMENTS

Revolut has selected Bottomline Technologies’ Universal Aggregator solution to deliver real-time payment services.

Revolut’s UK retail and business customers will soon be able to access FPS for instant payments.

 

The 6 Nordic banks owning the P27 Nordic Payments Platform have signed a shareholders’ agreement to fund its development.

The banks have agreed a business plan and committed to cover all costs up until the company is financially sustainable, expected by the time it launches in 2021. The platform will initially allow instant payments to flow between people and businesses within Denmark, Finland and Sweden with further expansion planned across the Nordics.

 

OPEN BANKING & PSD2

The FCA has said PSPs and online merchants must not “kick the can down the road” in preparing for the implementation of SCA.

The industry should not to misinterpret the decision to grant an 18 month extension and should be ready to implement them by the deadline. “You must be aware this is a onetime extension, the deadline will not be extended again.”

 

DNB is launching a new version of its mobile banking app .

DNB is looking to the new aggregation service in the app, powered by part owned Nordic API Gateway, to make it the favoured interface in Norway.

 

BLOCKCHAIN/DLT/CRYPTOASSETS

PayPal has withdrawn from Facebook’s Libra Association.

 

Bank of England – Financial Policy Summary and Record – October 2019

The section ‘Ensuring that payment systems support financial stability’ contains a heavily reported statement regarding Libra’s potential to become a systemically important payment system and the need for regulation.

 

The EC’s Joint Research Centre has published a report – Blockchain now and tomorrow: assessing the impact of distributed ledger technologies.  Report   Exec Summary.

The report offers an in-depth and practical understanding of blockchain and its possible applications. It identifies ongoing and upcoming transformations and sets out an anticipatory approach for applying blockchain technology in finance, industry, trade and public sectors.

 

FRAUD & CYBERSECURITY

Pay.UK has responded to Which? comments on scams reimbursement. Original Which? response.

Apparently a plan for the banks to pay a small fee on some transfers to collectively fund reimbursements has been agreed.

 

DIGITAL & RETAIL BANKING

Metro Bank is partnering with Funding Options, Conance and DueDil to boost its support for the SME sector.

The partnerships give SME customers access to Funding Options’ business lending marketplace, Conance’s specialist trade advice and finance solutions and DueDil’s predictive company intelligence platform.

 

Yolt is integrating with the Raisin platform to offer access to deposit products.

Yolt users in the UK, France and Italy can apply for a Raisin account accessing a wide range of deposit products, select from competitive Raisin offers and see their deposits, directly within the app.

 

ABN AMRO has announced an extension of its account aggregation feature.

Personal customers who also have a current account with ING, ASN and Regiobank will now be able to view their payment details in ABN AMRO’s app and via internet banking. This extends the service already available to clients of Rabobank, SNS and Bunq.

 

CASH(less) – Access to Cash

Barclays has made a number of commitments to support customers and communities with access to banking services.

However, its withdrawal from the Post Office free cash withdrawal programme has produced a storm of protest.

While customers and businesses can still pay in cash, cheques and check their balance at POs, Barclays’ launch of its own ‘cash back’ scheme is not seen as adequate.

 

The PSR has responded  by saying it is concerned about the development and is also considering whether LINK’s current policies on the Post Office are still appropriate.

Subsequently it has launched a review of its LINK Specific Direction 8.The Direction directed Link to make sure it does all it can to fulfil its commitment to maintain the broad geographic spread of free-to-use ATMs. The PRC is now consulting as part of its annual review.

 

CORPORATE ACTIVITY

The CMA has concerns regarding Bottomline Technologies’ purchase of Experian Payments Gateway (EPG).  Inquiry page.

After completing its initial Phase 1 investigation, the CMA is concerned that the new, merged company may increase prices, reduce product availability, or reduce its investment in innovation and thus may reduce competition. Bottomline has until 14 October to offer solutions to resolve the CMA’s concerns, otherwise the merger will be referred for an in-depth Phase 2 investigation.

 

Tide has raised £44.4m in a first-round of Series B funding.

The funds will be used for work to increase Tide’s share of the UK business banking market and expand internationally. Tide is targeting a UK market share of at least 8% by 2023. The challenger bank claims 100,000 customers and a current market share of 1.75%.

 

REGULATION (EBA)

The EBA has published its detailed annual work programme for 2020.

The programme outlines the specific activities and tasks of the Authority for the coming year, highlighting the key strategic areas of work for 2020. The work will on six strategic areas that includes making AML a real priority for the EU (Activity 21) and contributing to the sound development of financial innovation and sustainability. Activity 18 covers Innovation and Fintech and Activity 20 Payment Services.

 

BREXIT

The EBA has published a communication on the remaining issues related to the preparation by financial institutions for Brexit.

The EBA urges continued progress on contingency planning to ensure that assets, appropriate staff and data are in place to support relevant authorisations and to ensure that adequate customer communications are made.

Latest News Round-up

8 November 2019

Industry Videos

Dutch cashierless store trial

ING is working with supermarket chain Albert Heijn and US AiFi on a cashierless store trial.

Users gain access by scanning their debit card, with cameras and ‘smart shelves’ tracking purchases and automatic payment on exit. Similar to Amazon Go but does not require an app.

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