16 November 2018

16th November 2018
  • Mobile/Contactless and omni-Commerce
  • Bill Payment
  • Digital/Retail Banking
  • Payment Report
  • Issuing
  • Acquiring/Processing
  • UK Payments infrastructure
  • ATMs (LINK)
  • Open Banking
  • Fraud/Security
  • Blockchain/DLT/Cryptocurrencies
  • Litigation
  • Corporate Activity
  • EBA/’SEPA
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

Visa UK Consumer Spending Index – October 2018. http://tinyurl.com/y7rohrsp

eCommerce expenditure up by +2.6%, but Face-to-Face spend declines by -2.0%.

 

Klarna’s ‘Slice it in 3’ product is being rolled out across all Arcadia Group brands.  http://tinyurl.com/y9b9vyo6

Klarna’s Slice it in 3 enables shoppers to pay in three equal instalments. The first payment is taken via debit or credit card at the time of purchase, with two subsequent payments being deducted from the shopper’s chosen payment card automatically 30 and 60 days after that.

 

Jaja Finance has launched Jaja Pay as a white-label consumer credit facility. http://tinyurl.com/yd4d6r2q

ASDA has been announced as the launch partner, offering the service under the brand of ASDA Flexible Payments to customers shopping on George.com. The initial application with pre-approval takes less than a minute. https://flexiblepayments.asda.com/

 

Fintonic is partnering with Amazon in Spain to fund interest-free purchases. http://tinyurl.com/ycrahljh

App users will be able to buy from Amazon.es, deferring payments ranging from €200 to €1,000 at 0% interest rate.

 

Nets is partnering with Mash to provide an omni-channel “pay later” solution to Merchants across the Nordics. http://tinyurl.com/yb5o75u9

Consumers select the Mash option from a Nets enabled terminal for instant on-boarding and credit approval.  An invoice to pay the balance in full or choose to convert the payment into a monthly instalment plan follows within 14 days.

 

BILL PAYMENT

The Swiss Financial Center has reported on the results of an earlier consultation regarding a QR-bill and published updated implementation guidelines.    http://tinyurl.com/ycd8a2lp

The QR-bill combines the digital and paper-based worlds, and represents a stepping stone from the payment slips in use today to electronic billing. The new system is scheduled for implementation on 30 June 2010.

 

DIGITAL/RETAIL BANKING

Starling Bank is partnering with the Post Office to offer everyday banking services. http://tinyurl.com/y85rvol7

Moving away from a mobile only offer the partnership provides the additional physical infrastructure to enable the withdrawal and deposit of cash.

 

Monzo, almost immediately after Starling Bank announced its deal with the Post Office, announced a similar deal with PayPoint. http://tinyurl.com/ydh7l7rv

The cash deposit service will be available from Wednesday 21 November.

 

Transferwise is (re)introducing TransferWise for Business for its business customers.  http://tinyurl.com/y8offdsk

The upgraded offer now includes integration with Xero, an open API http://tinyurl.com/y866ettv and a business MasterCard.   Multi-user access is in course of development.

 

Tandem Bank is working with Stripe to offer an ‘Auto Savings’ feature. http://tinyurl.com/y9exkqrr

Originally announced in September, the feature will enable customers to put together rules that automatically move small amounts from their current account with other providers to a savings account with Tandem.

 

N26 moves into the Nordics and Poland. http://tinyurl.com/y8dhlw3t

The mobile banks is now available in Denmark, Norway, Poland, and Sweden with Liechtenstein and Iceland planned to follow later this year.

 

PAYMENT REPORT

Deutsche Bank has issued a wide ranging White paper – “Piecing together the payments puzzle”. http://tinyurl.com/ybelykyn  Paper http://tinyurl.com/yb9j7ujs

The paper assesses how the current pieces stack up against the core needs of end users and summarises the main changes being driven by regulatory and governmental bodies, industry players and infrastructure providers, and non-bank competitors; what they do; whether they are doing enough; and what further pieces could – or should – be added to complete the picture.

 

ISSUING

Wirecard and MasterCard have signed a strategic agreement to migrate their global issuing business. http://tinyurl.com/y85ahey4

Wirecard will support Mastercard Prepaid Management Services with its capabilities in global issuing services.

 

ACQUIRING/PROCESSING

Worldpay and CYBG have agreed a new five-year referral partnership. http://tinyurl.com/yd5whnfz

The extended agreement gives business customers of CYBG access to a full suite of Worldpay’s payments products including the Worldpay Business Dashboard.

 

Ingenico Group has announced a strategic partnership with Sberbank. http://tinyurl.com/yc2jo8z8

The partnership will enable international online merchants to accept MIR cards for the first time. Plans to expand the partnership include additional features such as support for Sberbank Online and participation in the loyalty program Spasibo.

 

American Express has been granted preparatory approval for a clearing and settlement license in mainland China by the People’s Bank of China. http://tinyurl.com/ycjhw6y4

American Express has formed a joint-venture with Chinese fintech services company LianLian to build a network business that will enable charges on American Express branded cards to be cleared and settled domestically by the joint-venture.

 

UK PAYMENTS INFRASTRUCTURE

Pay.UK is seeking contributions to a project to develop an ‘Enhanced Data’ capability. http://tinyurl.com/y83x73fn

Types of additional information made possible by Enhanced Data can include the purpose of the payment, tax and benefit information, a personalised message or underlying business transaction details.

 

ATMs (LINK)

The PSR remains concerned about LINK’s latest figures that show that in September a number of free-to-use ATMs in more remote areas (‘protected’ ATMs) were withdrawn from service by the companies providing them. http://tinyurl.com/ybkekuhb

LINK has now developed and published its policies as previously demanded by the PSR, including details of how it seeks to ensure both the continued operation of protected ATMs that are at risk of closure and the replacement of those that have closed.

 

OPEN BANKING

Xero says it is now registered with the FCA as an AISP. http://tinyurl.com/ya8v4t27

Licensing as an AISP enables Xero to take advantage of the UK open banking regime and round out its bank feed coverage with the UK’s ‘CMA 9’ big banks.

 

FRAUD/SECURITY

BBVA has been working with MIT to improve card fraud detection rates. http://tinyurl.com/yd22sbel

Using an automated Deep Feature Synthesis model developed by MIT, false positive detection has been improved significantly in tests.

 

The US National Retail Federation says that fraud is still retailers’ top payment issue despite EMV. http://tinyurl.com/y7xv6bzz

A study released by the NRF and Forrester says payment card fraud is still a top concern for large U.S. retailers as criminals move their activities online.

 

BLOCKCHAIN/DLT/CRYPTOCURRENCIES

Riksbank Speech pushing the idea of the e-krona – ‘The e-krona and the payments of the future’. http://tinyurl.com/y95shapt

“It is important to update the money the Riksbank issues to a format that suits the modern economy. We will therefore develop a pilot version of a central bank digital currency – an e-krona. Once we have tested the pilot version we can choose to issue, or not to issue, a digital krona to the general public.”

 

ECB Speech – ‘The new frontier of payments and market infrastructure: on cryptos, cyber and CCPs’. http://tinyurl.com/y8z5nfuo

“Rapidly growing digitalisation means both challenges and opportunities for payments. New technologies will reshape the way financial services are provided in the future. And they will pose new and virulent risks to the financial system. More interdisciplinary research, bringing together macroeconomists, payment experts and IT developers, is needed to reap the benefits that new technologies promise, to help central banks, regulators and standard-setting bodies keep our financial system safe, and to forestall and prevent misuse and deception.”

 

LITIGATION

The Court of Appeal is to decide whether a £14bn consumer antitrust suit against MasterCard can proceed as a class action, rejecting an attempt to limit the challenge to a procedural review.  http://tinyurl.com/ycj8fp2a

 

CORPORATE ACTIVITY

Poynt has completed a $100m Series C funding round. http://tinyurl.com/y7rbydez

Investors include strategic partners Elavon and National Australia Bank.  The company will use the funds to expand into new markets across Asia, Europe and South America. Poynt has signed partnerships with leading global players including Elavon, Evertec, Worldpay, J.P. Morgan Chase, Itau Unibanco, Alipay, Nexi, EVO, and Mashreq Bank.

 

EPC/SEPA

EBA CLEARING has announced the formation of a Request to Pay Task Force to support the development of a pan-European Request to Pay (R2P) solution. http://tinyurl.com/yar6bpa2

The task force is composed of representatives from 28 financial institutions from 14 countries with its first objective being to work on a planning framework for the implementation of an R2P solution that is expected to be delivered in H1/19.

 

The EPC has published a White paper covering non-NFC based Mobile SEPA Card Proximity Payments for public consultation. http://tinyurl.com/yctss6tn  Paper http://tinyurl.com/ycwaadvf

The MSG MCP has developed the white paper to create awareness on the use by mobile card payment solutions of non- proximity technologies that it is using as a vehicle for consultation.

 

REGULATION

Switzerland’s Competition Commission has raided the offices of five banks. http://tinyurl.com/y6wzsvw8

The banks – Aduno Holding, Credit Suisse, PostFinance, Swisscard and UBS –   are suspected agreeing to boycott phone payment systems offered by companies such as Apple Pay and Samsung Pay in favour of local system Twint.

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