18 January 2019

18th January 2019
  • Mobile/Contactless and omni-Commerce
  • Acquiring/Processing
  • Issuing
  • Cash
  • Biometrics
  • Target2
  • Open Banking
  • Fintechs
  • Corporate Activity
  • EPC/SEPA
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

Visa UK Consumer Spending Index – Dec 2018.  http://tinyurl.com/y75qv5z5

Consumer spending: down -1.0%, Face-to-Face expenditure falls -1.6%, eCommerce spending up just +0.5%.

 

A uSwitch survey indicates that 58% of UK shoppers intend or expect to purchase something online using their smartphone in 2019. http://tinyurl.com/y986qpwn

This overtakes for the first time the percentage of people who intend to go to a shopping centre, which stands at 56%. The survey also indicates that £25bn will be spent on goods ordered from smartphones and tablets this year – £10bn up on 2018.

 

Yello has launched the Y7 OmniPOS. http://tinyurl.com/y7sfyj9z Details https://www.yelloco.com/

The 7-inch tablet accepts all card and digital payment methods and offers turnkey bundled solutions for transaction processing and terminal management

 

ABN AMRO is launching contactless payment by wearable for all its retail customers. http://tinyurl.com/y8c7hedq

Claiming a world first  the wearables use Mastercard-certified chips, are linked to the users current account, operate contactlessly and require a PIN for purchases in excess of €25. The global claim relates to the daily €250 that clients can spend.

 

Amazon Dash buttons have been made illegal in Germany. http://tinyurl.com/yawemk5q

In an action brought by the Consumer Association of North Rhine-Westphalia, a higher state court in Munich has ruled the buttons did not provide customers with sufficient information on what they were buying. Needless to say Amazon will appeal.

 

Wirecard has signed a cooperation agreement with Swatch. http://tinyurl.com/yaskmmgb

The deal will enable consumer to install contactless payment solutions as an app in Switzerland and later throughout Europe, giving SwatchPAY! customers mobile payments at POS. Wirecard’s boon users in Switzerland will also be able to add their digital cards to SwatchPAY!

 

Ingenico Group has, launched a payment-enabled chatbot, which uses natural language processing (NLP) from IBM Watson. http://tinyurl.com/y9ewhqvw

The new AI component reduces steps consumers have to take in order to complete purchases. The chatbot incorporates Ingenico’s secure payment API, enabling customers to purchase products and services within a messaging app’s chat function, bringing an end-to-end customer experience to the chat platform and enhancing conversion rates for merchants.

 

Worldline has launched its WL One Commerce Hub – a single global payment solution.  http://tinyurl.com/ya8og56s

WL One Commerce Hub is designed to enable merchants to provide strong, consistent, convenient and customized commerce experiences across all points of interaction and countries. Looks like a beefed up omnichannel offer.

 

Worldline has also launched its take on a smart POS with YUMI. http://tinyurl.com/ycrqd3xg

The Android based multifunctional device has the ability to rotate 360°, providing an intuitively designed omnichannel point of interaction and can be integrated with local POS systems or used as a standalone terminal. Vapour ware not deliverable until ‘late summer 2019’.

 

SWIFT has published a new ‘Pay Later’ API standard. http://tinyurl.com/ybyooawr

Using this single standard, merchants will be able to implement the Pay Later option ensuring they are able to reach multiplebanks around the world and avoid multiple costly implementations. The working group on the Pay Later API standard will continue to work together to evolve the standard API specifications and rulebook with the aim of creating the conditions for a broad ecosystem of the Pay Later platform.

 

MasterCard is introducing rules for merchants that offer free-trials for physical products to avoid consumers unwittingly entering into recurring subscriptions. http://tinyurl.com/yao8jw6u

The rule change will require merchants to gain cardholder approval at the conclusion of the trial before they start billing.  Merchants will be required to send the cardholder – either by email or text – the transaction amount, payment date, merchant name along with explicit instructions on how to cancel a trial.

 

ACQUIRING/PROCESSING

Nets and Savings Banks Group have signed a new six year agreement for card services in Finland. http://tinyurl.com/y9r9a8ld

As part of the agreement Nets will also process Savings Banks’ debit cards and innovate together with Savings Banks Group around new payment methods.

 

Diners Club International has signed an agreement with Nets to expand Discover Global Network acceptance in Norway, Sweden, Denmark and Finland. http://tinyurl.com/y8keycgq

Nets will offer merchants the ability to accept Discover, Diners Club International, PULSE and affiliate network cards across the Nordics.

 

ISSUING

Square has announced the launch of Square Card in the US, a free business debit MasterCard. http://tinyurl.com/ydf2t6jd

Square says the new card offers new flexibility to underserved small businesses when accessing and managing funds by eliminating the time between making a sale and having the funds available to spend.

 

CASH

Israel – Law for the Reduction of Cash Use introduced on 1 January. http://tinyurl.com/y84ujsmz

The Law aims to reduce cash transactions in an effort to fight financial crime and money laundering and foster the use of more modern and efficient payment methods.

 

BIOMETRICS

Sberbank has finished rolling out the collection of biometric data for a Government run identity system. http://tinyurl.com/yb3ccmjz

The Unified Biometric System (UBS) and r the Unified Identification and Authentication System (UIAS) for personal data supports remote identification of Russian citizens. For banks this allows customers to carry out day to day banking activities, such as account opening, fund transfers and loan applications, through their phones and computers. Currently c 170 banks are connected to the system.

 

Meanwhile, Sberbank is supporting supermarket chain Azbuka Vkusa with biometric POS terminals.  http://tinyurl.com/yc5u4t5c

However, it is not a totally biometric system as after placing their finger on the terminal users then have to enter their password to confirm the purchase.

 

TARGET2 RTGS

Deutsche Bundesbank is using SWIFT MyStandards and Readiness Portal to help support the European banking community migrate their high-value payment flows to the new ISO 20022 standard in preparation for the T2/T2S consolidation project in 2021. http://tinyurl.com/ybs9rbbx

 

OPEN BANKING

UK Finance – Open Banking: One year, and counting. http://tinyurl.com/y9bcf2mq

 

FINTECHS

The latest cohort of Accenture’s FinTech Innovation Lab includes four Open Banking start-ups with the covering RegTech, Tech4Tech and InsurTech . http://tinyurl.com/y87bcvm6

The issues being addressed include self-assessment tax returns, cross-border distribution, product and tax-suitability issues of financial institutions and helping individuals take control of their retirement savings.

 

CORPORATE ACTIVITY

AccessPay, a Manchester-based fintech, has raised £9m in a funding round led by US VC Beringea.    http://tinyurl.com/y7gkz9z9

AccessPay is used by more than 500 UK corporates including Barclays, the AA, and ITV and processes over 40m transactions a year. It will use this investment to expand its sales, marketing and engineering teams and further develop its software platform.

 

Atom Bank could be prepping for a full bid from BBVA. http://tinyurl.com/yca6rv38

BBVA holds 40% of the digital bank and has an option to acquire the remainder of the shares.

 

Fiserv is to acquire First Data in a $22bn all-stock deal. http://tinyurl.com/y888562s  FISV – FDC Presentation

The combined entity will be known as Fiserv with the transaction expected to close during H2/19.

$22bn implied equity value for First Data representing a 29% premium to the five-day volume weighted average price as of January 15, 2019, and a premium of approximately 15% to enterprise value.The combined business will still be focussed 85% on North America.

 

EPC/SEPA

UK Finance has applied to remain in SEPA. http://tinyurl.com/y9moq745

UK Finance has formally made an application to maintain participation in SEPA on behalf on the UK financial services and payments industry. Apparently the SEPA community support the UK remaining in the schemes and a final EPC Board decision will be made on 7 March 2019.

 

REGULATION (Competition)

The UK Competition & Markets Authority has published an issues statement that sets out the scope of its inquiry into the PayPal/iZettle deal. http://tinyurl.com/y7nx48rs

The statement outlines initial theories on what might be adversely affecting competition, but it does not set out findings or conclusions.

 

REGULATION (AML)

HM Treasury is working with the financial services industry on a new taskforce to combat economic crime. http://tinyurl.com/ybucsg7p

Money laundering and fraud is estimated to cost the UK £14.4bn each year. The new Economic Crime Strategic Boardwill set priorities, direct resources and scrutinise performance against the economic crime threat, which is set out in the Serious and Organised Crime (SOC) Strategy.

 

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