14 September 2018

14th September 2018
  • Mobile/Contactless and omni-Commerce
  • Acquiring/Processing
  • Remittances
  • Digital/Retail Banking
  • Fraud/Security
  • Cash(less)
  • Cash (LINK)
  • Open Banking
  • UK Payments Infrastructure
  • Corporate Activity
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

The Royal Mail’s Delivery Matters Report says UK online shoppers make 87% cent of their retail purchases online. http://tinyurl.com/yale7j4x

The figure, that excludes groceries, is up from 80% in 2017. On average, UK online shoppers spend £34 on each online transaction.

 

PPRO Group research indicates 67% of UK consumers have abandoned an online retail transaction due to the payment process.  http://tinyurl.com/yd5gobu8

PayPal remains the most popular method of online payment quoted by 50% of responders.

 

PayPal has announced the launch of Funds Now .   http://tinyurl.com/yctacvve

Funds Now gives select businesses across the US, UK and Australia access to their completed sales within seconds. It has already been extended to 1m businesses with more markets to follow soon.

 

Mastercard is introducing a B2B platform Mastercard Track™ in collaboration with Microsoft.  http://tinyurl.com/ydxe8rfu

Track is a global trade platform built on Microsoft Azure that will simplify and enhance how companies do business with each other globally by streamlining and automating the procure-to-pay-process. It will be delivered via partnerships with B2B networks and procure-to-pay solution providers.

 

ACQUIRING/PROCESSING

Acquiring.com (trading name of SecureTrading Financial Services) has announced a strategic partnership with Danish fintech company TrendPay. http://tinyurl.com/y92zcfpq

 

US PSP FreedomPay is working with Elavon to expand into Europe. http://tinyurl.com/ycsg9k4z

FreedomPay will process both ecommerce and card present transactions within the European market.

 

REMITTANCES

Remitly has announced an expansion in Europe supported by Stripe. http://tinyurl.com/yarjyoh9

After launching in the UK in 2017, Remitly has now expanded to cover 11 countries in Europe with Stripe processing transactions in various European currencies.

 

DIGITAL/RETAIL BANKING

Nationwide has announced it is to invest a total of £4.1bn on technology transformation over next five years.  http://tinyurl.com/y8tzkezx

The Core focus of the Bank’s strategy is to drive UK service leadership through digitisation and multi-channel technology integration across the high street and its mobile channels.

 

FRAUD/SECURITY

Barclays has released information on the locations and people most vulnerable to scams.  http://tinyurl.com/y8lqpngk

Young people are identified as the biggest victims of scams. Nearly two thirds of high value shopping scams are from London, East and South East England, whilst Plymouth, Sheffield and Southampton are also identified as scam hotspots.

 

ThreatMetrix research indicates that mobile fraud saw 150m Global attacks in H1/2018. http://tinyurl.com/ychkbqh4

Attack rates have risen 24% yoy with 58% of digital transactions now originating from mobile devices.

 

CASH(less)

The BRC’s latest annual Payments Survey indicates card payments now account for 76% of Retail payments.  http://tinyurl.com/ybehffkf  Infographic http://tinyurl.com/ycozu6s

The BRC says its research showed that increasing costs have been driven entirely by card scheme fees, which jumped by 39% in 2017. Needless to say the BRC is calling on the Government to do something through Regulatory action.

 

CASH (LINK)

LINK has published its first Financial Inclusion Monthly Report as mandated by the PSR. http://tinyurl.com/yd22n6r2

The report reveals that the number of free-to-use ATMs reduced by 2% from 54,500 to 53,200 in H1/18 and the number of pay-to-use ATMs fell by 11% from 13,400 to 11,900. 21 ATMs in remote and rural areas have been lost and these are being investigated by LINK.

 

The PSR response http://tinyurl.com/y9jq2kxv focusses on the loss of the ‘protected’ machines and is developing and setting out the direction with which LINK would be required to comply in ensuring access to cash through free-to-use ATMs.

And, inevitably, Which? http://tinyurl.com/ydgmaldc

 

OPEN BANKING

The OBIE has published Open Banking Standards version 3.0. http://tinyurl.com/y7jk3mdn  Standards at http://tinyurl.com/y9ujxnl5

This third iteration gives account providers who implement them in full, a solution that complies with PSD2. While earlier versions covered business and personal current accounts, Version 3 covers all products with payment capabilities e.g. credit cards, pre-paid and e-wallets) in any currency.

 

It has also published the final version of the Customer Experience Guidelines. http://tinyurl.com/y9a2sov3  Guidelines http://tinyurl.com/y7vzajac

 

Barclays has released a new version of its Mobile Banking app that leverages Open Banking API technology.  http://tinyurl.com/yb9wn6bf

Barclays claims it is first UK bank to enable customers to view their current accounts from a range of other UK banks that covers Lloyds, Halifax, Bank of Scotland, RBS, NatWest, Nationwide and Santander. More banks will be added over the coming months with more features also promised.

 

Nordea has extended access to its Open Banking platform to developers in Sweden. http://tinyurl.com/yb5va4mo

Extending Open Banking into Sweden gives developers the possibility of building applications designed for both Finnish and Swedish customers. Future extensions to Denmark and Norway are being worked on.

 

Xero has launched an open banking API for accounting.  http://tinyurl.com/y7hyn84f

The API will allow banks and fintechs to integrate with Xero with minimal development. As a result, data can be imported via direct bank feeds, allowing for near real-time reconciliation in Xero.

 

UK PAYMENTS INFRASTRUCTURE

The NPSO has started recruiting for people to join specialist advisory groups for the New Payments Architecture.  http://tinyurl.com/y8ng9f7t

The first groups to be set up are for NPA participants, procurement, legal, the Request to Pay service and transactional data analytics.

 

CORPORATE ACTIVITY

Klarna Bank has announced that it is acquiring Close Brothers Retail Finance. http://tinyurl.com/yd87y6jl

The acquisition will significantly strengthen Klarna’s position in the UK market for retail financing and will enable accelerated growth and expansion of its consumer offering. CBRF provides omnichannel retail finance to over 600 active UK merchants.

 

Nordea is selling 60% of its holding in the Luminor JV formed with DNB to Blackstone. http://tinyurl.com/yca9kbjq

The sale supports Nordea’s strategy to focus its operations on its Nordic core markets. The deal leaves Nordea and DNB with a 20% holding, which Blackstone have flagged it may purchase the remaining holding over the near to medium term and puts a total value on the Baltic bank of €1.7bn.

 

REGULATION

The EC is proposing to strengthen AML supervision and enforcement across the EU. http://tinyurl.com/yb7xyq8m Q & As http://tinyurl.com/yd6ltj6d

As part of its overall strategy and to address recently identified shortcomings in National supervision the EC is seeking to amend the Regulation establishing the European Banking Authority in order to reinforce its role in anti-money laundering supervision of the financial sector.

 

The European Parliament’s Civil Liberties Committee has published a proposal for a Directive regarding ‘Combating fraud and counterfeiting of non-cash means of payment’. http://tinyurl.com/y7y72avh   Proposal http://tinyurl.com/y7wsdd86

The Committee published a Report in March 2018 that was a precursor to what is now the amended proposal.

The proposal seeks to address significant gaps and differences in Member States’ laws in the area of fraud and counterfeiting of non-cash means of payment through legislation ‘to include further provisions on offences, in particular relating to computer-related fraud, penalties, prevention and assistance to victims and cross-border cooperation’.

Industry Videos

Central 1, a Canadian credit union, is trialling an authenticated Voice Banking Service using Amazon Alexa.

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