12 April 2019

15th April 2019
  • Digital & eCommerce
  • Instant Payments
  • Fraud & Cybersecurity
  • Cash(less)
  • Issuing/Loyalty
  • Cross-Border Payments
  • Big Tech
  • Digital & Retail Banking
  • Open Banking & PSD2
  • Corporate Activity
  • Brexit

DIGITAL & eCOMMERCE

BRC-KPMG Retail Sales Report for March continues to show decreasing sales but distorted by Brexit/late Easter.  http://tinyurl.com/y5drjsnu

Online sales of Non-Food products grew 3.0%, against a growth of 7.9% in March 2018. .Online penetration rate increased from 28.5% in March 2018 to 29.9%.

 

Square has announced the availability of Square Online Store for sellers in the UK. http://tinyurl.com/yxz3dh9l

The Store provides SMEs with one cohesive solution for their omnichannel or online-only business and is fully integrated with Weebly, Square’s website building platform. Square Online Store

 

Google Pay has been launched in  ten more countries including Belgium, Czech Republic, Ireland,  Norway, Russia, Slovakia, Spain, and Sweden. http://tinyurl.com/y6xrlzct

 

Eika Group in Norway has entered into a long-term partnership with fintech EedenBull. http://tinyurl.com/y2bhzvp9

The partnership will see the development and launch of new innovative payment programmes for the 66 participating banks of Eika. The first development to be delivered will be a system for the automation of payments, spend management, accounting and control.

 

MasterCard EU now posting merchant PRs in its newsroom. This one is about coffee vending machines in a corporate environment. http://tinyurl.com/yy6lfn5a  Google translate

 

Worldline is launching a dedicated payment solution for online marketplaces. http://tinyurl.com/y53jx9b2

The solution ensures smooth payment processes between all parties in the ecosystem and is capable of managing ‘mixed’ shopping baskets consisting of products from various sellers and for different delivery dates.  All automated payments, including variable commission models, are processed via a unified API. From a contractual perspective, only the marketplace operator holds a relationship with Worldline.

 

American Express and SAP Ariba have entered into a strategic multi-phased partnership.  http://tinyurl.com/y39e2a56

The partnership is designed to offer buyers and suppliers new payment and financing options on Ariba® Network, extending its value for joint large and global customers. American Express will leverage Ariba Network APIs to enable its virtual Card capabilities within the SAP Ariba process and platform to facilitate seamless commerce, secure payments, and easy reconciliation between businesses on a single platform.

 

Amazon has announced that its Go stores are to start accepting cash payments. http://tinyurl.com/yy23u3se

The move comes as a growing number of cities and states in the US are bringing in legislation that require stores to accept cash.

 

INSTANT PAYMENTS

J.P. Morgan is  launching SEPA Instant in Europe.  http://tinyurl.com/y2weotgs

J P Morgan’s Treasury Services are adding the Euro service to the US instant payment offer launched in 2018 with the intention to eventual build a global capability.

 

CASH(less)

BoE Speech – Less-cash, but not cashless. http://tinyurl.com/y2kqca56

“The Bank of England is committed to supporting cash as a viable means of payment for as long as the public still wants to use it”.

 

FRAUD & CYBERSECURITY

SWIFT has published a new cyber report – ‘Three years on from Bangladesh: tackling the adversaries’.  http://tinyurl.com/y5ye2fpj

The report provides new insights into the evolving nature of the cyber threats facing the global financial community, the key finding being that four out of five fraudulent transactions were issued to Beneficiary accounts in South East Asia.

 

The EBA has published advice from ESAs on ICT risk management and cybersecurity. http://tinyurl.com/y6gtak9n

The ICT proposals aim at promoting stronger operational resilience and harmonisation in the EU financial sector by applying changes to their respective sectoral legislation.

Regarding the costs and benefits of a coherent cyber resilience testing framework the advice is to focus on achieving a minimum level of cyber-resilience across the sectors, proportionate to the needs and characteristics of the relevant entities.

 

The European Association for Secure Transactions (EAST) has reported that physical attacks on ATMs have risen for the fourth consecutive year. http://tinyurl.com/y3tuvmzc

Payment terminal related fraud attacks fell 36% when compared with 2017.

 

DIGITAL & RETAIL BANKING

N26 – Press Statement: Current media coverage on BaFin audit.  http://tinyurl.com/y3gyn77o

N26, is being investigated for reported fraudulent transactions and issues with the bank’s staff. The investigation has been reported by Handelsblatt which says that a special audit had led to the regulator ordering changes at the bank.

 

The Basel Committee on Banking Supervision has launched a new section of its website that sets out a consolidated version of its global standards for the regulation and supervision of banks. http://tinyurl.com/y5ww8vx5

The consolidated framework aims to improve the accessibility of the Basel Committee’s standards and to promote consistent global interpretation and implementation.

 

BIG TECH

BIS Working Paper – BigTech and the changing structure of financial intermediation.  http://tinyurl.com/y3qjczfk  Report https://www.bis.org/publ/work779.pdf

The paper investigates the entry of big technology companies (BigTech) into financial services. It seeks to address three questions: What economic forces are driving this development? Do BigTech lenders have an information advantage compared with traditional data or processing methods, particularly when gauging creditworthiness? Do firms receiving BigTech credit perform differently from competitors?

It focusses, although not exclusively, on an empirical analysis of Bigtech credit that is heavily mathematical. Read the short summary starting page 20.

 

OPEN BANKING & PSD2

The OBIE has published example answers for FCA forms A and B for banks seeking an exemption from the contingency mechanism.  http://tinyurl.com/yy5bafep                          Illustrative examples  http://tinyurl.com/yyr9twc3

For firms using the OBIE Standards, the examples are intended to support ASPSPs in the articulation of how their implementation of the OBIE Standard may meet PSD2 requirements.

 

Open Banking March Highlights. http://tinyurl.com/yxzo684l   PDF http://tinyurl.com/yxzaquja

There are now 118 regulated providers made up of 78 TPPs and 40 account providers, with 23 regulated entities that have at least one proposition live with customers.

 

CMA9 banks respond to Open Banking mobile app delays. http://tinyurl.com/y4os9cco

 

Standard Chartered is moving forward with new Open Banking initiatives.  http://tinyurl.com/y3tv4455

It is opening its aXess platform to developers giving access to the Bank’s open source code for banking products and its APIs, applications, and libraries. It is also offering sandbox facilities and technical training through its aXess Labs and aXess Academy.

 

Raisin UK has announced a new partnership with ClearScore. http://tinyurl.com/y44sygyr

The integration with ClearScore’s website and mobile apps will enable UK users of the online credit check service access to the Raisin UK marketplace of savings products.

 

ISSUING/LOYALTY

Miles & More is launching a new loyalty initiative in the UK.  http://tinyurl.com/yyfbtufc

In cooperation with Affiniture Cards and Cornèrcard UK, Miles & More is introducing the Global Traveller Cards, bringing together the benefits of both Diners Club and Mastercard. The new cards provide worldwide contactless and mobile payment acceptance, with full control of card management online.

 

CROSS-BORDER PAYMENTS

SWIFT has been admitted to the next phase of the tender process to provide connectivity services to all Eurosystem market infrastructures (TARGET).  http://tinyurl.com/y4q2j8ly

If successful it will enable SWIFT its services to process all of a bank’s euro payment messages – high-value payments, SEPA payments, instant payments and cross-border payments.

 

CORPORATE ACTIVITY

Network International’s IPO got off to a successful start raising £1.1bn. http://tinyurl.com/yygsztyk

The IPO price gave the company a market value of £2.18bn.  Of the 249.95m shares on offer  Mastercard Inc. bought 49.95m as a cornerstone investor. Emirates now owns 25.5% of the company  and Warburg and General Atlantic 24.5%.

 

Nexi has successfully concluded its IPO, raising €2bn. http://tinyurl.com/y2dxlvlp

This puts an Enterprise Value of €7.3bn on the Company. The net proceeds of the capital increase, amounting to €684.1m, will be used by the Company, together with the funds deriving from a new loan agreement, to reduce the Group’s financial debt and refinance part of the debt itself through partial repayment of issued bonds.

 

Nordic Capital has announced the acquisition of digital identity solution provider Signicat. http://tinyurl.com/y4jp6oq9

Nordic Capital will accelerate Signicat’s international expansion and strengthen its position as a leading digital identity hub.

 

BREXIT

PFS has been granted an eMoney licence by the Central Bank of Ireland. http://tinyurl.com/y5qujyww

Azimo meanwhile has gained a  licence to operate from the Dutch Central Bank.

 

Google has moved its online payment service operations for its Pay app from the UK to Ireland. http://tinyurl.com/y54j3vjx

All Google Pay users in the EEA – with the exception of the UK – will now be serviced through the Irish entity, Google Ireland Limited.

UK-based users will still be processed in the UK. Previously, UK-incorporated Google Payment Limited handled payment processing for all of the EEA.

 

A Speech by Governor of the Bank of France – How to develop a “financial Eurosystem” post-Brexit  – has a small section on retail payments and market infrastructure. http://tinyurl.com/y2oohkl5

As usual it suggests promoting unified European-based solutions.

Industry Videos

Pay.UK short video covering the way it is working to develop  common standards for UK payments.

Contact Us