12 July 2019

12th July 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • Issuing
  • Digital & Retail banking
  • Instant payments
  • Open Banking & PSD2
  • KYC
  • SMEs
  • Supply Chain Finance
  • Fintechs
  • Fraud & Cybersecurity
  • Blockchain/DLT/Cryptoassets
  • Corporate Activity
  • EU Payment Scheme
  • Regulation

DIGITAL and eCOMMERCE

The BRC-KPMG Sales index shows a 1.3% drop in June

Online sales of Non-Food products grew 4.0% in June, against a growth of 8.5% in June 2018 with Non-Food Online penetration rate increasing from 28.5% in June 2018 to 30.7% last month

 

Lidl is being reported as conducting trials in Spain for its own payment solution.

The supermarket is apparently evaluating how customer payments might be integrated into its existing mobile app Lidl Plus. The Lidl Plus app is currently available in Austria, Denmark, Spain, Poland and certain regions in Germany. It includes a digital loyalty card and provides easy access to discounts and promotions.

 

The European Court of Justice has issued a Judgement that absolves ecommerce merchants from having to provide a contact phone number

The decision comes with the proviso that customers are offered other ways to contact the merchant. Although instigated by a German Federal Court of Justice request for clarification of EU regulations in the context of German law requiring a phone number is shown, the ruling has implications for the whole of the EU and online retailers generally. Online chat services or call-back functions are deemed adequate by the ECJ.

 

The Iceland frozen food chain in the UK claims to have driven £500,000 of in-store sales from mobile discount vouchers.

Customers have used their smartphones to scan the coupons, which were found in national newspapers, as Iceland ran a trial to see whether technology provided by The Mobile Wallet Company would drive customers in store.

 

Laybuy is supporting  Alexa Chung with its deferred payment option in the UK.

Laybuy is New Zealand’s largest buy now, pay later service and launched in the UK in March to take on Klarna, et al. Retailers receive full payment up-front while Laybuy takes all of the credit risk

 

Equifax research suggests British consumers care far more about online payment security than speed, simplicity and convenience.

66% of respondents rate safe and secure payments as most important in the online checkout process, with only 10% being most concerned about speed or simplicity. Security ranked highest across all age groups, and was a particular concern for over 55s (75%) compared to just over half of 18-24 and 25-34 year olds (52% and 53% respectively).

 

Retail Economics  has prepared a report ‘The Digital Tipping Point’Report

The report posits that online shopping will account for more than 50% of retail sales (up from 19% currently) in the next ten years.

This growth will be powered by three primary factors: the changing demographic of the UK adult population, the development of faster, cheaper, in-home deliveries and fewer physical stores. Data security, however, is an existential threat.

 

ACQUIRING/PROCESSING

MasterCard, working with Herz, is updating its policy regarding the use of debit cards when paying for car hire in Europe

The new, easy payment option gives customers with a Debit Mastercard or other recognised debit cards access to standard car and van rentals at key Herz European locations, opening up the rental market for new users. The updated policy applies to locations in Belgium, Czech Republic, France, Germany, Italy, Luxembourg, The Netherlands, Slovakia, mainland Spain and the UK.

 

Working with VersaPay, Mastercard is launching a Virtual Card Receivables Service

The Service will aggregate information from Mastercard Issuers related to Virtual Card payments by their corporate customers and compile it into one comprehensive file, available in a digital format that is preferred by suppliers, including Microsoft Excel and CSV.

This will enable companies to eliminate the manual process of reconciling incoming payment information.

 

MasterCard’s Brighterion is to integrate its advanced AI platform into Elavon’s network to minimize fraud and manage risk.

With the ability to analyse nearly 100bn transactions annually, Brighterion will enable Elavon to find and identify transaction anomalies, which helps mitigate risk and maintain the integrity of Elavon’s global systems.

 

RiverPay is supporting Alipay and WeChat Pay payments at Harrods.

Canadian based RiverPay is an integrated payments and marketing platform that connects Chinese consumers with overseas merchants and currently serves over 12,000 merchants across North America and Europe.

 

CITCON, a California based PSP, has announced its European expansion.

The PSP specialises in supporting acceptance of Alipay, WeChat Pay, and China UnionPay. https://www.citcon.com/

 

Credorax has announced a partnership with Small World.

Small World will integrate Credorax’s smart payments solution, including its Insights platform, providing real-time data and payment acceptance, helping Small World to streamline its European activity. The overall package includes NMI ‘s front-end gateway and terminal technology.

 

GoCardless has announced that DocuSign will deploy its SaaS-based payments platform in Europe.

Customers of the global subscription business will now be able to subscribe using GoCardless, as an alternative to credit/debit cards and PayPal. DocuSign will access GoCardless through Zuora, fully-automating their billing, collections, quoting, revenue recognition, and subscription metrics.

 

UnionPay is to launch a SRC Solution Based on EMV® SRC v1.0.

UnionPay, as one of the six EMVCo members, has been actively participating in the formulation of the EMV SRC Specification since the beginning and will continue to facilitate its evolvement by working closely with industry participants.

 

The PSR has published a Consultation on its proposed approach to assessing the profitability of card-acquiring services.

 

ISSUING

SIA has opened a new specialised issuing payment cards centre in Verona.

The new centre can manage every stage of issuing and is capable of producing an average of 10m cards per year.

 

WEX is to expand issuance of Visa Commercial Virtual Cards in North American and Europe.

WEX is now issuing the Visa cards in the US and UK in USD, GBP and EUR currencies, with more in the pipeline.

 

DIGITAL & RETAIL BANKING

Neo has been granted a PI licence by the Bank of Spain.

The licence will enable neo- bank to offer a multi-currency account for corporates giving an account holder the ability to receive, store and pay in around 30 currencies. The account will include an IBAN in the client’s name and rely on a proprietary Core Banking System. It will be available at the start of 2020 in Spain, France, UK and Poland.

 

fire.com has been authorised as an e-money institution in the UK.

Already regulated by the Central Bank of Ireland, the new licence means all fire.com customers can continue to access all their payment services irrespective of the final outcome from Brexit.

 

INSTANT PAYMENTS

SafeCharge is partnering with Visa to provide Setoo with faster insurance payouts.

Safecharge is using Visa Direct’s real-time push payments platform provide faster payouts for the insurance-as-a-service company.

 

OPEN BANKING & PSD2

The EPSM (The European Association of PSPs for Merchants) is calling for an 18 month harmonised migration on PSD2-SCA.

In addition to the suggested timeframe of 18 months for standard applications, it says up to 36 months should be allowed for challenging applications, such as those in the travel and hospitality sector.

It has also published a paper covering ‘Current Overview and Considerations for further discussion’.

 

Konsentus has launched an  eIDAS checking service.

Designed for ASPSPs in the UK using the UK Open Banking Standard, the new service enables them to comply with the FCA requirement of being able to check eIDAS certificates of any TPP who is not registered, or does not intend to register, on the Open Banking Directory.

 

PRETA has confirmed that MyBank is compliant with SCA.

PRETA states that the network of over 250 banks offering MyBank has already integrated identification methods in their online banking systems to effectively meet the MyBank specifications and to be compliant with PSD2 requirements regarding strong customer authentication.

 

SpareBank 1 has announced it has selected Nets to provide its open banking infrastructure.

The group of 14 savings banks will implement Nets Access to Account Services (NAAS) – a single platform that enables access to banks across the Nordics and Europe.

 

KYC

Nordic Banks have formed a JV to develop a platform for handling KYC data.

The six banks involved – Danske Bank, DNB, Nordea, Skandinaviska Enskilda Banken, Svenska Handelsbanken and Swedbank – plan to have their first commercial launch in 2020 aimed initially at large and medium-sized companies based in the Nordic region. The move has EC approval.

 

SMEs

The Institute for Fiscal Studies has published a report examining the business investment and employment environment.

Report – Who are business owners and what are they doing?

The report finds that investment and employment rates are low with a fifth of the businesses started by Britain’s growing army of sole traders closing within a year, highlighting the precarious financial states of those who opt for self-employment.

 

Monzo has announced that users of its Monzo Business Account will be able to integrate with Xero or FreeAgent.

Integration with tools for payroll and point of sale are promised for the future.

 

Lloyds Bank is working with Blue Motor Finance to develop instant delivery of loan funds.

The companies are partnering on an innovative Faster Payments and Direct Debit API to ensure individual motor traders and dealerships receive instant loan payments.

 

Mastercard is expanding its partnership with Zoho.

The move will enable small business owners globally to access the Zoho platform that offers a suite of marketing, accounting and CRM tools to automate and digitise time-intensive, paper-based processes.   It means the existing partnership in India will be rolled out to the rest of the world.

 

SUPPLY CHAIN FINANCE

MasterCard is also partnering with OpenText to help companies increase financial efficiencies across global supply chains.

The Canadian based provider of Enterprise Information Management (EIM) will see OpenText Business Network customers having access to spot financing through the Mastercard Track B2B global trade enablement platform. The new solution aims to increase the speed, compliance and security for business information, payments and financing in the automotive supply chain.

 

FINTECHS

The EBA has published a thematic Report on the impact of FinTech on PIs and EMIs business models.     Report

This Report points out the EBA’s key observations on PIs’ and EMIs’ strategies and business model changes, in particular focusing on the current trends and drivers, the different approaches to FinTech, including their interaction with BigTech firms, and the level of implementation of innovative technologies.

 

FRAUD & CYBERSECURITY

A new Economic Crime Plan has been agreed between the Treasury, Home Office and other stakeholders including heads of law enforcement, major financial institutions and legal, accountancy and property organisations.

The joint plan will see closer co-operation to tackle fraud, money laundering, bribery and corruption with an Asset Recovery Action Plan to help claw back the proceeds of crime, action on cryptoasset use and a reformed Suspicious Activity Reporting regime.

 

Lloyds Banking Group has partnered with cyber security start-up Callsign to improve digital identification process and combat frauds.

The collaboration will see the bank roll out the Callsign platform across its core brands. The implementation will enable Lloyds to enhance digital identification and authentication of online payments, as required by PSD2.

 

BLOCKCHAIN/DLT/CRYPTOASSETS

The Association of German Banks has issued a paper- Facebook’s cryptocurrency Libra – questions and answers

 

Donald Trump says he’s not a fan of Facebook’s Libra, and demands digital coin companies seek a banking charter.

 

CORPORATE ACTIVITY

Soldo Financial Services has raised $61m in a Series B  funding round.

The UK-based business banking fintech that provides a dedicated spending account for companies, will use the funds to consolidate Soldo’s position in the UK, Italy and Ireland, where it holds a second e-money licence to provide a Brexit fall-back and to expand into other European markets. Soldo has already been migrating its European customers’ accounts from London to Dublin.

 

MasterCard has confirmed completion of its acquisition of Transfast.

The deal strengthens Mastercard’s wide range of payment solutions and its global network, with Transfast reaching 90% of the population and over 90% of the world’s bank accounts.

 

Remitly has raised $135m in a Series E funding round plus $85m in debt.

The funds will be used to expand remitaly’s remittance business but primarily to invest in the development of new services. The debt will be used to drive the growth of its “express” fast-send option that requires an element of pre-funding. Remitly’s valuation is now approaching the $1bn mark.

 

EU PAYMENTS SCHEME

The Banque de France is now joining the call for a pan-European payments system.

François Villeroy de Galhau – “I call for the creation of pan-European payment solutions, building on a common brand and on the technical success of TIPS managed by the Eurosystem. We don’t have much time left, but regulators – starting with the Banque de France – and market players should work hand in hand to create a momentum”.

 

REGULATION (UK)

The FCA has issued an assessment of how well non-bank PSPs meet the requirements for safeguarding service users’ funds in the PSRs and EMRs.

It has also issued a Dear CEO Letter requiring all PIs and EMIs to review their safeguarding arrangements.

The review into a sample of authorised firms identified both positive and negative practices in the ways in which these institutions sought to comply. As a result the FCA is encouraging firms to consider its findings and how they apply to their own organisations.

 

 

 

 

 

 

 

 

Industry Videos

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

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