13 September 2019

13th September 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • Issuing
  • Instant Payments
  • Remittances
  • B2B Payments
  • Innovation
  • Digital & Retail Banking
  • ATMs (LINK)
  • UK Payments Infrastructure
  • Open Banking & PSD2
  • Blockchain/DLT/Cryptoassets
  • Corporate Activity
  • EPC/SEPA
  • Brexit

DIGITAL and eCOMMERCE.

Sainsbury’s has closed its trial cashierless store in London.

The trial that was announced in April has been halted at its Holborn store with Sainbury’s saying “not all our customers are ready for totally till-free” shopping. The Supermarket has now installed one manned till and two self-service checkouts in the store. Till-free shopping is still available in the Holborn Circus store, as well as eight other convenience stores across London.

 

Apple Pay is now being supported by ING, bunq, Monese, N26, and Revolut in the Netherlands. ING is the latest to make it available.

 

Samsung, supported by Fiserv and Visa, has developed a new Software Point of Sale (SoftPOS) solution.

Using embedded NFC functionality, SoftPOS enables contactless payments of any amount via a smartphone or tablet, emulating traditional payment terminal functions but with no additional equipment. A SoftPOS pilot will take place in Poland by the end of 2019. The pilot program will expand thereafter, initially in the EMEA and APAC regions.

 

Stripe has issued a number of blog announcements including launch of a Visa badged Corporate card.

Introducing the Stripe Corporate Card

Instant Payouts now available for US businesses

Introducing global payouts—US platforms can now send mass payouts to recipients in 45 countries in local currencies.

Express accounts are now supported in 28 new countries

Introducing Connect Onboarding for Custom accounts

 

Ecommerce Europe and EMOTA are merging.

The two associations will be unified under the umbrella and brand of Ecommerce Europe, from 1 January 2020. The unified association will have more than 25 national e-commerce association members, representing more than 100,000 digital shops across Europe.

 

ACQUIRING/PROCESSING

Big Issue sellers are to accept contactless payments using iZettle provided card readers.

Vendors involved in a trial scheme in five UK cities saw 80% of sales become cashless. iZettle is making card readers available to Big Issue vendors for the reduced price of £9 and says they will benefit from a per-transaction fee “significantly lower” than its standard rate of 1.75%.

 

Stripe is launching in eight more European countries: Poland, Estonia, Latvia, Lithuania, Slovakia, Slovenia, and Portugal.

 

Viva Wallet has entered a strategic partnership with Bancontact Payconiq for the acceptance of Bancontact across Europe.

The move enables Bancontact debit card holders to pay at over 100,000 merchant locations serviced by Viva Wallet in 17 European countries.

 

ECOMMPAY is partnering  with Trustly to expand its online payment offering.

The new partnership will allow consumers who shop with ECOMMPAY’s merchants to make online transactions directly from their bank account.

 

Lunar Way has chosen Nets to deliver all its payment requirements.

The Danish neo-bank offers basic banking services through an app and plans to export its recently acquired banking license to Sweden and Norway. In addition to basic payment support, Nets will also provide electronic signature services and assist with card fraud management.

 

ISSUING

Mastercard is introducing a new cashback initiative in the UK.

Merchants offering cashback in conjunction with a purchase will, from April 2020, earn a fee every time they dispense cash to a shopper paying with a Mastercard debit card. MasterCard says the fee will offer a new income stream to the High Street and incentivise local shops to offer the service. The 12p fee will flow to the merchant’s payment acquirer.

 

INSTANT PAYMENTS

Volante Technologies has announced the launch of free RTP/instant payments processing on the cloud as a service.

The free offering is for US TCH RTP and European SEPA RT1 or TIPS instant payments. Free implementation and onboarding are provided alongside, and there are no service or per transaction fees. Certain limits will apply.

 

JPMorgan Chase’s WePay has announced the launch of Same-Day Deposits to Chase bank accounts at no additional cost.

The move, aimed at the likes of Stripe and Square, includes a new product suite of integrated payments capabilities for software platforms – Link; Clear; and Core.

 

REMITTANCES

MoneyGram has announced the launch of a new debit card deposit service in partnership with Visa via Visa Direct.

The P2P money transfer option allows customers in the U.S. to send money domestically through the MoneyGram app or via the MoneyGram website to other U.S. recipients’ eligible debit cards. Pricing for the debit card deposit service starts at $1.99. Although currently available in the U.S. only, the service is planned to expand soon to other markets.

 

B2B PAYMENTS

Mastercard is enhancing its Mastercard Track platform in a move to modernise the B2B payment ecosystem.

MasterCard says the Mastercard Track Business Payment Service is the first global open-loop commercial service built to simplify and automate payments between suppliers and buyers. Track will now cover all current and future B2B payment products in addition to the original platform and trade directory launched in 2018. The service will be rolled out globally, with the US market in H1/20.

 

INNOVATION

ACI Worldwide and Ovum have launched the Culture of Innovation Index.

The index is a global cross value chain view of the factors that drive success across the banking, intermediary, merchant and corporate sectors.  The research indicates that retail banking and fintechs are the leading sectors for payments innovation, with regulation playing a key part in forcing industry change. Real-time payments drive innovation among FIs, while merchants and corporates are focused on new payment options, especially mobile, with payment security a continuing concern.

 

DIGITAL & RETAIL BANKING

Fiserv has announced the launch of its Interactive Branch Kiosk.

The kiosk provides self-service options for account holders, giving them the ability to conduct transactions within the branch lobby, drive-thru and other physical touchpoints. The kiosk integrates with the Verifast palm vein identification solution to provide the ease and security of biometric authentication.

 

Allica has been granted a banking licence by the PRA and will be dually regulated by the PRA and the FCA.

The bespoke bank for SMEs is now planning for a full UK launch and will ultimately offer working capital solutions and cash management, including loans, savings, payment services and asset finance.

 

Northmill has been granted a banking licence by the Swedish FSA.

The neo-Bank will commence its banking operations in the near future by adding saving accounts, cards, and payment transfers to its existing credit and insurance offers. Northmill claims 200,000 users.

 

The European Banking Federation has published Banking in Europe; the 2019 Facts & Figures.

The annual publication shows that the European banking sector, both as measured in terms of staff numbers and branches, continued to contract as the industry continued to improve efficiency while attempting to bolster its profitability.

 

ATMs (LINK)

The PSR has published responses to its discussion paper on the LINK interchange fee structure and a summary of the subsequent roundtable discussion. Responses paper.

There are 20 responses from a range of stakeholders.

 

UK PAYMENTS INFRASTRUCTURE

The PSR has posted a number of papers on Data in the payments industry.

A Response to its June discussion paper on the role of data in the payments industry.

The responses to its discussion paper.

A statement on working with Pay.UK to explore the viability of opening up access to data in the UK’s new payments architecture (NPA).

The PSR has highlighted several areas where industry needs to manage issues in payments data and saying it is important to open up data in ways that respect the confidentiality of individuals’ data. A first step could be the creation of ‘synthetic’ data (dummy data) to help in the development of these services.

 

OPEN BANKING & PSD2

The Joint PSD2 Task Force has written to the EC with an update.

Amongst a number of actions, ETPPA and FDATA have written to all NCAs and explained what is in their view required to avoid customer detriment. They believe that those NCAs waiting for an overall EU approach are doing so unnecessarily.

 

EPIF has headed up a further joint industry letter to the EBA on SCA Implementation.

The signatories ask the EBA to actively encourage all NCAs to make clear announcements to industry that SCA requirements will not be enforced as of 14 September 2019 until further clarity is provided at EBA level. It suggests a deadline for operational application of SCA should be in 18 months EU wide.

 

Worldline has announced its Acquiring and e-Commerce platforms are now supporting 3D Secure 2.0 and are SCA compliant.

Worldline claims it is the first PSP and acquirer in Europe to implement 3DS 2.0 within both its Acquiring platform and its e-commerce acceptance platform.

 

equensWorldline has launched a browser-based SCA solution that covers all user devices.

The WL Trusted Authentication solution is available for mobile applications and web browsers and enables banks to provide SCA without the need for external hardware, smartphones, or software installed on the user’s computer.

 

TSYS has announced a new authentication product that provides real-time verification of customer identities.

The TSYS Authentication Platform relies on customer experience data collected from direct cardholder touchpoints and integrates into TSYS clients’ existing authentication systems and is now available in Europe. The platform has been developed alongside Featurespace, Emailage, InAuth and Payfone and supports TSYS customers with their compliance needs for PSD2/SCA.

 

BLOCKCHAIN/DLT/CRYPTOASSETS

The Swiss Financial Market Supervisory Authority FINMA has published updated its ICO guidelines outlining how it treats ‘stable coins’.

The Regulator has confirmed that it has received a request from the Libra Association for an assessment of its Libra project under Swiss supervisory law and has published a Supplement indicating how it will assess such ‘stable coins’ within its supervisory remit

The Libra Association has posted an associated announcement.

Bloomberg Report re the initial basket of currencies.

 

However, The French Finance Ministerhas indicated France plans to block Facebook’s digital currency.

The Minister said that the eventual privatisation of money contains risks of abuse of dominant position, risks to sovereignty and risks for consumers and for companies.  He did not say how this might be done but did put forward the idea of a “public digital currency”.

 

Speech by the Chairman of the Governing Board, Swiss National Bank – Currencies, money and digital tokens

Covers cryptocurrencies, stable coins and central banks’ position.

 

Speech by Dr Johannes Beermann,  Deutsche Bundesbank, at the International Cash Conference – Heads and tails – cash in the age of digitalisation.

 

Mastercard and R3 have announced a strategic partnership to develop and pilot a new blockchain-enabled cross-border payments solution.

The partners will initially focus on connecting global faster payments infrastructures, schemes and banks supported by a clearing and settlement network operated by Mastercard. The move, alongside the recent Transfast acquisition, complements existing capabilities by providing access to R3’s Corda ecosystem, which includes more than 300 of the world’s leading financial services firms, technology companies, central banks, regulators and trade associations.

 

CORPORATE ACTIVITY

Naspers is floating its internet assets on Euronext Amsterdam under the Prosus brand.   Detailed Investor presentation

Prosus is being billed as a global top 10 consumer internet company with operations and investments valued in excess of US$100bn, making it Europe’s largest listed such company. The group is both a strategic investor and an operator of fast-growing consumer internet businesses, particularly focused on online classifieds (Olex), payments (PayU) and fintechs and food delivery in markets including India, Russia and Brazil. It also has meaningful investments in Tencent and Mail.ru.

 

Visa has now completed its acquisition of Verifi,

Visa says the acquisition extends its dispute resolution capabilities to support a broad range of payments brands and partners across the ecosystem.

 

EVO Payments has acquired Delego Software, a provider of integrated payment solutions SAP’s ERP solutions.

The acquisition expands EVO’s existing portfolio of ERP integrations to include SAP enterprise application software and builds on the existing co-marketing strategic partnership. The Terms of the acquisition were not disclosed.

 

Shopify has announced that it has reached an agreement to acquire 6 River Systems.

6 River is a provider of collaborative warehouse fulfilment solutions with the acquisition helping to drive the growth of the Shopify Fulfilment Network launched in June. Meanwhile 6 River Systems will continue to build and sell their solution for warehouses.

 

Meanwhile Shopify is projected as overtaking eBay to become the second largest platform in the world in terms of sales volume behind Amazon.

 

EPC/SEPA

The SEPA Scheme Management Board is to amend the maximum amount per Instant Credit Transfer transaction to €100,000, effective as of 1 July 2020, up from the current, up from the current €15,000.

 

BREXIT

The FCA is stepping up preparations for a no-deal Brexit.

The Regulator will be running a series of digital adverts signposting to the FCA Brexit webpages and has set up a dedicated telephone line.

 

The Joint Committee of the European Supervisory Authorities (ESAs) in its Autumn Report encourages continued ‘No-Deal’ preparation.

Quoting “Brexit fatigue”, the Regulators say the need to prepare for the impact of a no-deal Brexit on financial activities continues to require attention from the public and private sector in light of the postponement of the Brexit date.Financial institutions and supervisors should continue their work on contingency planning and assurance of business continuity in the case of a no-deal Brexit.

 

PrePay Solutions has obtained an e-Money Licence from the National Bank of Belgium.

The licence will enable the company to continue supporting fintech companies residing in the EU regardless of the outcome of the UK Brexit negotiations.

Latest News Round-up

18 October 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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