16 August 2019

16th August 2019

• Digital & eCommerce

• Acquiring/Processing

• Cross-Border Payments

• Digital & Retail Banking

• Open Banking & PSD2

• Fraud & Cybersecurity

• Corporate Activity

DIGITAL and eCOMMERCE

The Visa UK Consumer Spending Index shows a further fall in overall household spending during July.

At -1.2% year-on-year this extends the current period of declining spend to ten months, to mark the longest sequence of falling expenditure since 2011/12.Expenditure via eCommerce channels grew +1.1% year-on-year, which was the quickest rate of increase since October 2018.

 

ONS Retail sales, Great Britain: July 2019.

Retail sales increased by 0.2% in July with on-line sales up by 5.5% with non-store retailing reporting the strongest growth of 9.5%, apparently driven by Amazon Prime Day. Online retailing accounted for 19.9% of total retailing compared with 18.9% in June 2019, with an overall growth of 12.7% when compared with the same month a year earlier.

 

The ONS has also published new data on Internet access – households and individuals, Great Britain: 2019

The survey results indicate7% of all adults used the internet daily or almost every day in 2019; 61% of households without the internet did not feel that they needed the internet; 54% of those aged 65 years and over shopped online.

 

NatWest is running a trial of voice banking with Google Home.

The three month trial will give 500 customers the ability to use Google Home to ask for basic account information.

 

Klarna survey indicates SMEs are open to new technologies and innovation.  Full Report Small size Big ambition.

Over the next 12 months UK independent e-fashion retailers plan to prioritise investing in flexible payment options (49%) and e-commerce capabilities (48%) to meet consumer demand for a frictionless shopping experience, but cost, market uncertainty and unclear ROI are barriers to adoption.

 

Wirecard has announced its prototype of an unmanned store.

The Grab & Go Store concept offers shoppers a convenient, seamless purchasing experience through AI: consumers enter the store via smartphone, pick products which are scanned automatically, then the payment is triggered when leaving with the payment process taking place in the background.

  

ACQUIRING/PROCESSING

Digital River has transitioned to a “headless” approach, building out its suite of APIs and microservices.

The development sees Digital River moving to an API-first and microservices-based architecture, enabling brands to combine best-of-breed solutions from multiple providers to create a flexible ecommerce offering designed to meet increasingly complex shopper demands globally.

 

CROSS-BORDER PAYMENTS

Robert Dyas is to offer customers global money transfers through Western Union.

Customers will be able to make fund transfers from more than 90 Robert Dyas stores in the UK. They can either start the transaction on the Western Union mobile app and make the payment in-store or complete the entire payment in-person at the retail outlets.

 

DIGITAL & RETAIL BANKING

Revolut for Business has launched a new Expense Management tool.

The new feature enables Business owners to monitor expenses in real-time, approve or reject them and sync them with their Xero accounts to automate reconciliation. Categories that businesses create in Xero will be used in expense management, resulting in a seamless interaction between the two platforms. Businesses not using Xero can create their own categories within the Expense Management tool and export expenses as a CSV file.

 

The BCR has awarded a further £10m in grants from its Capability and Innovation Fund Pool C.

The four recipients benefitting are Atom Bank, iwoca, Modulr Finance and The Currency Cloud Group.

 

The CMA has released its summer results on overall banking customer satisfaction.

Metro Bank and first direct have topped the survey with RBS at the bottom.

 

Monzo has extended its loan offer with short-term loans.

Account holders can now borrow between £200 and £15,000 Monzo for up to 60 months. Rates range from 3.7% APR on loans of £7,500 to £15,000, to 20.4% APR on loans up to £7,500.

 

OPEN BANKING & PSD2

The FCA has set out details of a plan for a phased implementation of SCA.

The FCA has agreed an 18-month plan to implement SCA with the e-commerce industry of card issuers, payments firm and online retailers, reflecting the position of the EBA.  The FCA will not take enforcement action against firms if they do not meet the relevant requirements for SCA from 14 September 2019 in areas covered by the agreed plan, where there is evidence that they have taken the necessary steps to comply with the plan. At the end of the 18-month period, the FCA expects all firms to have made the necessary changes and undertaken the required testing to apply SCA.

UK Finance Response.

Information for consumers on Strong Customer Authentication.

 

The Central Bank of Ireland is also easing SCA compliance requirements.

A limited migration period will be put in place with the Central Bank continuing to engage with the EBA and other EU NCAs to develop a harmonised approach.

 

The OBIE has published the Open Banking July Highlights.

There are now 151 regulated providers made up of 95 TPPs and 56 AIS, with 3 regulated entities that have at least one proposition live with customers.

 

The EBA has published clarifications to a fifth set of issues on APIs under PSD2.

The clarifications respond to issues raised on the measurement of response times of the dedicated interface, the machine-readability of the EBA register, reliance on eIDAS certificates and various issues related to the contingency measures, including the identification of third party providers through ‘guest books’, the data that can be accessed and documentation.

 

SIBS has gone fully live with its API Market.

First announced in February the platform brings together 24 financial institutions and gives TPPs access to 95% of bank accounts in Portugal.

 

FRAUD and CYBERSECURITY

Visa blog re commissioned Forrester Report – Understanding The Evolving Payments Landscape

The report evaluates how banks, financial technology companies, and merchants are protecting themselves and their customers from fraud amid the rapid expansion of new payment technologies.

 

CORPORATE ACTIVITY

Nuvei has completed its acquisition of SafeCharge International Group.

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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