20 September 2019

20th September 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • Issuing
  • Instant Payments
  • Remittances
  • Fraud &Cybersecurity
  • Payment Reports
  • Digital & Retail Banking
  • ATMs – Access to cash
  • Cash(less)
  • UK Payments Infrastructure
  • Open Banking & PSD2
  • Blockchain/DLT/Cryptoassets
  • Corporate Activity
  • EPC/SEPA
  • Brexit

DIGITAL and eCOMMERCE.

ONS Retail sales, Great Britain: August 2019

Internet sales increased by 11.6% year-on-year but fell on the month by 0.8% when compared with July 2019. Online sales as a proportion of all retailing fell to 19.7% in August 2019, from the 19.9% reported in July 2019.

 

Visa UK Consumer Spending Index August 2019

After returning to growth in the previous month, eCommerce spending saw a renewed contraction in expenditure in August (-0.5% year-on-year) albeit the decline in online spending was softer than that seen in F2F transactions (-1.3% year-on-year).

 

Revolut is now supporting Apple Pay.

 

Monese is now supporting Google Pay in 12 countries.

The wallet is now available in Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Norway, Poland, Sweden, Spain and the UK.

 

Adyen Retail report: The checkout experience.

The report estimates that difficulties at the checkout cost online businesses £257bn in 2019 with 7 out of 10 shoppers cancelling purchases due to difficulties at the checkout. Adyen attributes this to two key issues – A lack of support for mobile devices and Billing forms without an autofill function.

 

Square has launched its Square Terminal in the UK.

The all-in-one device has been available in the US since last year and has now reached the UK.

 

Visa is working with Clients and Partners through Visa Direct to digitise insurance claim payouts.

The effort is primarily in the US but also elsewhere.

 

ACQUIRING/PROCESSING

Tribe Payments has secured Visa certification.

After gaining MasterCard certification in June, Tribe can now offer issuer and acquirer processor services across Europe for both schemes.

 

Payrexx is integrating with Clearhaus for processing Visa, Mastercard, Google Pay and Apple Pay payments online.

The partnership will bring the DACH region payment provider together with the merchant acquirer to drive expansion of their combined customer-base of over 27,000 e-Commerce businesses.

 

SIA is enabling passengers in Rome to pay for their tickets in Atac’s subway and railway network.

Passengers can now pay at barriers using contactless cards, wallets and wearable devices.

 

eBay has begun to offer Managed Payments in Germany.

eBay has begun managing the end-to-end payments process on its Marketplace platform in Germany, which it says will drive significant efficiencies and benefits for both buyers, who will have more choice and flexibility in payment options, and sellers, who will have a central place to manage their business.

 

Santander has launched JCB merchant acquiring operations in Spain.

Following a license agreement with JCB International, Santander can now facilitate JCB acceptance at its-acquired Spanish merchants.

 

Wirecard has signed an MoU with UnionPay to form a global strategic partnership.

The agreement will support UnionPay’s international expansion and Wirecard’s growth in China and with Chinese businesses. The initially the partnership will focus on launching additional projects in Asia-Pacific, Europe and the US, particularly POS and issuing solutions.

 

ISSUING

Société Générale and Mastercard have partnered to launch a special edition card for gamers.

The League of Legends Card is the first payment card in France designed for gaming fans, offering them several exclusive advantages. MasterCard is putting a ‘leading sponsor in the areas of sports and events’ tag on the initiative as a first mover in supporting eSport.

 

INSTANT PAYMENTS

FIS report indicates 54 countries now have active real-time payment programsFlavors of Fast report

The number of programs is up from 40 in 2018 and nearly four times as many as 2014. Leading contributors to this increase were new programs launched in Asia and the expansion of Europe’s SCT Inst scheme. India remains the global leader in real-time payments usage with a 10-fold increase in value and eight-fold increase in transaction volumes.

 

REMITTANCES/FOREX

Travelex has announced the launch of a new B2B platform, Travelex Business.

Travelex Business allows the company’s partners including banks, credit unions, retailers and digital technology companies, to access a broad range of payments and foreign exchange services in one place. The platform supports cash management, cross border payments and retail currency conversion via APIs and addresses a wide range of enterprise and consumer needs with omni-channel, multi-currency capabilities.

 

FRAUD & CYBERSECURITY

Nets and KPMG are partnering to launch an AI-Powered payment fraud prevention solution.

The Nets Fraud Ensemble uses machine learning to reduce fraudulent transactions by up to 40% in the longer term. The ‘brain’ of Nets Fraud Ensemble consists of multiple models working together to analyse each individual transaction within ten milliseconds. The solution learns from the results of this analysis and adjusts accordingly.

 

Elavon has announced a partnership with Featurespace to tackle fraud attacks in real-time.

With the use of Featurespace’s ARIC Platform, Elavon is developing a fraud network to detect fraudulent activity using adaptive behavioural analytics. Combining the machine learning driven ARIC platform and Elavon’s 3DS service enables merchants to use an advanced, layered approach to fraud prevention.

 

PAYMENT REPORTS

Accenture Report – Payments Pulse Survey: Two ways to win in paymentsFull Report

The report suggests that as much as 15% of banks’ global payments revenue, or US$280bn (£8bn for UK), is likely be displaced by the growth of digital payments and competition from non-banks, as payments become more instant, invisible and free. Only banks that change their business models to adopt the latest technologies and focus on providing value-added services to customers will capture a share of increases in revenue growth.

 

AiteThe Payments Transformation Race: Criteria for Success

This report takes a deep dive into the current state of payments transformation at top global banks and provides a guide for self-assessment.

 

Vocalink report – UK state of pay.

Asking the question ‘How can UK organisations leverage the opportunity to drive a frictionless future of payments?’, the report explores the rise of digital-only banks and the advent of Open Banking.   More than one in ten new bank accounts opened are with digital banks such as Monzo or Starling.

 

SWIFT has published a new paper on the evolution of the European payments landscape and the preparations that need to be made by the region’s financial institutions.

The paper, Brave new world: be ready for Europe’s new payments architecture, looks at the changes underway in Europe, the global context in which these are taking place and the challenging implementation timeline. It also sets out how SWIFT is supporting the industry through these changes.

 

Capgemini World Payments Report 2019   Report

This 15th edition analyses the digital transformation across the global payments market as new market participants like BigTechs, emerging technologies, and changing customer expectation spur disruption.

 

DIGITAL & RETAIL BANKING

Monzo has announced it has reached a figure of 3m users.

Meanwhile it has ended its cash incentivised referral system as the digital bank continues to grow users at a rapid pace.

 

Lloyds Banking Group has added new features within its mobile banking apps.

Lloyds Bank, Halifax and Bank of Scotland customers can now share confirmation of payments made to friends or family through WhatsApp, SMS or email, using automatic payment receipts. New transaction search tools have also been added.

 

Santander’s Openbank is launching in Germany.

Germany is the first country in an international expansion that will see the bank launch in the Netherlands and Portugal later this year. The bank offers German customers a state-of-the-art platform and mobile app, featuring AI and machine learning technology, cloud-based systems and the highest security standards for usability and optimal customer experience. Germany is now the second country to introduce the new experience.

 

ATMs – Access to cash.

Which? has published analysis of LINK data that indicatesthat deprived areas are losing FTU ATMs faster than affluent ones .

The consumer lobby organisation says 9% free ATMs closed or switched to fee-paying in a 17-month period after major changes to how the network is funded. It is calling on the government to take action to guarantee people’s ability to access and pay with cash.

PSR response.

 

CASHless

The BRC has published the results of its latest Payment SurveyInfographic

The survey indicates that credit card spending (21.5%) overtook cash spending (20.4%) in 2018. Debit cards remain the most popular method of payment, accounting for 56.8% of all transactions.  The BRC are calling for action to improve regulation of card payment fees as it claims costs from card fees rose by over 50% in 2018.

 

UK PAYMENTS INFRASTRUCTURE

The Pay.UK Standards Authority is beginning a series of bi-lateral meetings regarding the New Payments Architecture.

The aim is to gather stakeholders’ perspectives and ideas to inform the design and development of standards for the NPA. Pay.UK will use the outputs to develop the draft NPA Standards ahead of more extensive consultation in 2020.

 

OPEN BANKING & PSD2

EC – EU consumers set to benefit from safer online shopping and a wider range of payment services.  FAQs

 

The EBF says the card payments ecosystem requires 18 extra months for SCA.

Post a workshop on the implementation of PSD2, the EBF has reiterated its call on the EBA to grant an 18-month extension that applies to the entire EU system for remote card payments. The EBF takes the view that a successful implementation of SCA can only happen effectively once the entire payments ecosystem, including service providers, banks as well as retailers and merchants, is ready.

 

Barclaycard says that merchants have not been negatively impacted following the introduction of SCA.

Analysis of its transaction data from 14 and 15 September indicate merchants have not seen an increase in abandoned transactions or declined payments. Barclaycard’s dynamic fraud protection solution, Barclaycard Transact, also went live over the weekend, enabling businesses to benefit from SCA exemptions.

 

l’Observatoire des moyens de paiement has announced the completion of its migration plan for online electronic payment authentication systems.

Document – Migration plan.

 

Revolut has implemented a SCA system that enables customers to ‘reset’ the €150 contactless limit.

Customers can use their mobile app to authenticate their contactless card as they get close to the new limit. A notification sent by Revolut when the customer is approaching the limit can then be tapped to reset the limit for a further €150 spend.

 

BLOCKCHAIN/DLT/CRYPTOASSETS

European Parliament Briefing paper – What if Libra disrupted the financial system?

Concludes that ‘To set the legal status of the Libra coin/token and its classification, an international agreement is needed on harmonising existing rules for crypto tokens’.

Libra – another speech from a Regulator, this time the ECB’s Benoît Cœuré – Digital challenges to the international monetary and financial system.

 

Germany has joined France in warning on Libra.

Both country’s finance ministers have warned that Libra poses risks to the financial sector that could block its authorisation in Europe.

 

BISConference on global stablecoins.

The conference included presentations by Fnality International, the Libra Association and JP Morgan.

 

CORPORATE ACTIVITY

The EC has cleared the $21.5bn merger between Global Payments and TSY saying the deal will not raise antitrust issues in the European market.

 

Deutsche Bank  is making a substantial investment in open-banking start-up Deposit Solutions.

The transaction that values the Hamburg-based start-up at more than €1bn gives DB a 4.9% stake. Deposit Solutions operates two interest rate platforms, Zinspilot and Savedo,, that enable banks to collect deposits from people across Europe who are not their direct customers. Although the parties have not disclosed the amount of the deal the FT reports a figure of €50m.

 

Wirecard and SoftBank have formalised their strategic cooperation agreement.

Wirecard and a SoftBank subsidiary have now signed the final documents for the issue and subscription of the Wirecard convertible bond and the strategic cooperation agreement, which will allow both companies to pursue global growth opportunities and synergy effects. The bond purchase agreement gives Softbank conversion rights on shares in Wirecard that would give it c5.6 % of Wirecard’s current share capital.

 

Nets has introduced a new two business unit operating model.

The new business units consist of Merchant Services that brings together all merchant facing businesses including Concardis, RatePAY, Dotpay/eCard and Przelewy 24 and Issuer & eSecurity Services that will include Croatian based MPSI. The two core business units will be supported by more focused group functions (Technology, HR & CFO area).

 

Mastercard and Visa have made strategic investments in Plaid as part of its Series C $250m funding round last December.

Plaid has not disclosed the two networks’ specific investments.

 

Stripe is raising $250m in additional funding—at a new pre-money valuation of $35bn.

Stripe will use the capital to accelerate its growth in three key areas: accelerating international expansion; growing its product suite; and extending its enterprise capabilities. Stripe’s planned expansion will bring the total of countries where it has launched to 40 in the coming months, covering 70% of the global economy, with more launches planned for 2020.

 

Trulioo  has closed a $60 million Series C funding round

Investors in the global identity verification include Goldman Sachs, Citi Ventures, Santander InnoVentures and existing investor American Express Ventures. Trulioo intends to use the funding to scale up operations in new markets and grow its employee numbers.

 

TouchBistro has announced it has raised CDN$158m in Series E funding.

Investors in the round (US $118.8m) included Barclays Bank, RBC Ventures and JPMorgan Chase. The funds will be used by TouchBistro to acquire complementary products that broaden the company’s capabilities, support the development of technology advancements, expand its presence in international markets, and increase the size of its team over the next year.

 

EPC/SEPA

EBA CLEARING has begun the development of a pan-European request to pay infrastructure solution.

The delivery of the solution is supported and funded by 26 financial institutions from 11 countries for a go-live in 2020.

A white paperR2P: the missing piece of the puzzle – details why a pan-European request to pay approach is the missing piece of the puzzle for leveraging instant payments. Scheme-related work on the request to pay functionality is ongoing at the level of the EPC.

 

The ECJ has published a decision in a case involving Deutsche Bahn and SDD acceptance and SDD acceptance.

The Judgement means that companies cannot limit SDD acceptance to their home country.  If they do offer them as a payment method, then they must not differentiate between customers with different residences, but must, in principle, allow all customers in the EU to pay by SDD.

Opinion of Advocate General..

 

BREXIT

FCA Speech by Andrew Bailey – Preparing for Brexit in financial services: the state of play.

 

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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