21 December 2018

21st December 2018
  • Mobile/Contactless and omni-Commerce
  • Acquiring/Processing
  • Issuing
  • Open Banking
  • Cash(less)
  • Fraud/Security
  • Corporate Activity
  • Blockchain/DLT/Cryptocurrencies
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

Visa UK Consumer Spending Index – November 2018. http://tinyurl.com/y8ouxfnt

Consumer spending: declines -0.7%, following -0.2% fall in October; eCommerce expenditure rises +0.4%, while Face-to-Face spend falls again (-0.9%).

 

The IMRG Capgemini e-Retail Sales Index for November indicates UK online retail sales suffered their worst November growth since 2011 at just +8.1% year-on-year. http://tinyurl.com/y9g34j3b

November fell below the three- (+8.3%), six- (+10.5%) and 12-month (+12.2%) sales growth averages.

 

ONS Retail sales, Great Britain: November 2018. http://tinyurl.com/ya7mjqpk

Online sales as a proportion of all retailing exceeded 20% for the first time, with all online retailing accounting for 21.5% of total retailing on a non-seasonally adjusted basis.

 

Elavon is to offer the ‘Pay by Bank app’ to merchants in the UK.  http://tinyurl.com/ybb48sdm

 

GVC has removed PayPal as payment option across its Germany-facing Casino Brands. http://tinyurl.com/y97g4hvd

The Isle of Man-headquartered company has not provided any information on its decision but it is  likely to be connected with the Germany’s complicated online gambling regulatory situation.

 

Save the Children – Make the world better with a (contactless payment) Christmas sweater.  http://tinyurl.com/ya5859ws

 

Gemalto is supplying Intesa Sanpaolo with a biometric contactless payment card. http://tinyurl.com/yajg973y

The pilot will test a MasterCard EMV contactless biometric card for the first time in Europe. Consumers simply tap their card on any POS terminal to pay and authorise the transaction with their fingerprint. The card works without a battery as it is powered by the terminal meaning there is no limit on the number of transactions.

 

Google has added Paysafe Group’s paysafecard as a new payment method in the Google Play Store. http://tinyurl.com/yag3n8pc

After launching in Poland, Czech Republic, Slovakia, Slovenia and Cyprus in June, Google has now added Germany, the UK, France, Spain and Greece.

 

Switzerland’s competition authority has closed an investigation into the launch of Apple Pay. http://tinyurl.com/y9pmysxc

Apple has agreed to take steps to make sure its activation process doesn’t interfere with the TWINT app issued by Swiss banks. It will provide a technical solution that prevents Apple Pay’s automatic launch at POS that disrupts a current QR based payment transaction made with the TWINT App.

 

Sberbank is launching Pay-QR, a new smartphone app for instant contactless payments. http://tinyurl.com/ycdpmdcw

Launched in 42 Russian cities, the app will allow small and individual enterprises that don’t use merchant acquiring to increase client flow without additional expenses on equipment.

 

Mastercard and eService are carrying out a pilot implementation in Poland of the LitePOS solution featuring MYPINPAD technology. http://tinyurl.com/yaonnrz4

LitePOS operates on “PIN on Mobile” technology. The combination of a smartphone and a Secure Card Reader enables card payments for amounts exceeding PLN 50, which requires entering the PIN code. Several hundred eService customers will participate in the pilot, which will last until June 2019.

 

Mastercard and Polish Payment Standard have announced a strategic alliance. http://tinyurl.com/y8z44ukd

The partnership will see BLIK users enabled for contactless payments at all Mastercard branded terminals globally as well as for e-commerce. There are also plans for BLIK expansion into new markets by acquiring consumers in countries outside Poland.

Poles go bonkers for e-banking. http://tinyurl.com/y9g8mk6g

 

ACQUIRING/PROCESSING

EVO Payments has announced a strategic relationship between its subsidiary eService and POSNET in Poland. http://tinyurl.com/ybbanwxa

The eService’s payment application will be installed on POSNET’s “Pospay” device, a mobile all-in-one payment solution incorporating terminal, cash register and printer. Deployment of the Pospay device will begin in early 2019 and will qualify as a leasable POS solution under the Cashless Poland Program.

 

ACI Worldwide survey says Travel Companies risk losing sales due to lack of payment choices. http://tinyurl.com/y7tlrmov

36% of those surveyed in China, France, Germany, UK and US expressed unhappiness regarding payment methods when booking holidays online. 66% also said that a lack of transparent pricing is another large concern.

 

ISSUING

Natixis has acquired La Banque Postale’s 50% stake in their gift card joint venture Titres Cadeaux. http://tinyurl.com/ycas2ezd

Natixis says that the acquisition establishes its position in the French prepaid gift market with the move being part of its strategy to become a major name in prepaid services.

 

OPEN BANKING

The OBIE Implementation Trustee has issued Trustee Directions to the Bank of Ireland, Danske Bank and HSBC Group. http://tinyurl.com/yacsqnp5

All three banks are now under an Enhanced Implementation Monitoring regime due to their inability to meet the 13 March 2019 deadline for implementation of App-to-App authentication functionality for AIS and PIS redirection. The three banks have submitted a proposal to the Implementation Trustee under which it proposed to deliver this functionality in full by 13 September 2019.

 

Open Banking November highlights. http://tinyurl.com/ybfyycbe  PDF http://tinyurl.com/yahzv2ro

96 regulated providers made up of 64 TPPs and 32 AISPs, with 12 TPPs live with customers.

Recent entrants: TSB Bank, Yorkshire Building Society, Xero (UK) Limited, Nordea Bank, Figo, Ipagoo, Skrill Ltd, Alpha FX Ltd, Instantor AB Y Tree Ltd, JPMorgan Chase Bank and APS Financial Ltd.

 

Nordea is launching Instant Reporting, a new Open Banking solution. http://tinyurl.com/ybz6bv3h

The solution enables corporate customers to access their own accounts and integrate real-time data with their own systems and processes. Nordea says it moves beyond legal requirements in PSD2 and turns Open Banking into a commercially viable product.

Instant Reporting is initially being launched in Sweden and Finland.

 

CASH(less)

The Access to Cash Review Interim ‘Is Britain ready to go cashless?’ report says cash is an economic necessity for many people. http://tinyurl.com/y88vaunj  Report http://tinyurl.com/ycqj2eea

The report summarises trends in cash use, draws conclusions about the likely levels of cash use in Britain 15 years’ time, looks at technology’s role and examines the potential risks of an unplanned cashless society. 41% of those surveyed believe it will happen, compared to 38% who believe it won’t.

PSR Response http://tinyurl.com/yaooxtnj

The PSR says the Report reinforces it own view that cash will continue to be important for years to come.

 

FRAUD/SECURITY

The FCA has published new rules allowing victims of Authorised Push Payment fraud to complain to the PSP receiving their payment. http://tinyurl.com/y9y35v3d    Feedback to CP18/16 and final rules http://tinyurl.com/ydx99rjk

Currently, the sending PSP, but not the receiving PSP, must handle any complaints on APP fraud in line with existing complaints handling rules in the FCA Handbook. These obligations have now been extended to the receiving PSP and victims can refer their complaints to the Financial Ombudsman Service if they are unhappy with the outcome. The new rules will come into force on 31 January 2019.

 

EMVCo has announced the publication of the EMV® 3-D Secure Protocol and Core Functions Specification v2.2.0. http://tinyurl.com/y9xc9ma3  Spec http://tinyurl.com/y74jbqn7

The updated specification includes enhancements to promote an optimised consumer experience while supporting new authentication channels when making e-commerce transactions.

 

Shieldpay is partnering with Visa to enable secure use of payment cards on peer-to-peer marketplaces and classified ads. http://tinyurl.com/yagq5zuo

Shieldpay’s instant digital escrow solution mitigates the risk of fraud by verifying the identity of all parties, holding funds securely and only releasing funds when all sides agree they are happy. As part of the partnership, Shieldpay will work with CyberSource to enable access to new verticals.

 

GoCompare has partnered with Featurespace to strengthen its front-end fraud prevention and detection abilities. http://tinyurl.com/ydzxhcjz

GoCompare will use Featurespace’s ARIC Fraud Hub, which uses real-time machine learning to spot anomalies, block new fraud, and recognise genuine customers. GoCompare’s anti-fraud project will evolve over the coming 12 months, with the introduction of third-party data enrichment feeds and new business intelligence partnerships.

 

Deutsche Bank has published a Research article on Card fraud in Germany.  http://tinyurl.com/ybksee28

CNP fraud, as elsewhere, is highest at €2.27 per €1,000 of sales. This compares with 6 €cents for every €1,000 withdrawn in cash at ATMs and 11 €cents for every €1,000 of sales at POS. 99.7% of all card transactions by value were executed securely.

 

CORPORATE ACTIVITY

Santander Group has today announced the acquisition of Albert, an invoicing and expenses app for freelancers and micro-businesses. http://tinyurl.com/ydcoy2lo

The acquisition will allow Santander Group to further support UK small business owners in managing and growing their businesses through a range of financial and non-financial services. The amount of the deal has not been disclosed.

 

BLOCKCHAIN/DLT/CRYPTOCURRENCIES

The Treasury Select Committee has published the Government and FCA responses to its Crypto-assets report. http://tinyurl.com/ya8y8fym

The Government has said it “stands ready” to give the FCA more powers to oversee cryptocurrencies after the Committee warned that the rapidly growing market was the “wild west.” However, the Government also considers that DLT has the potential to deliver significant benefits in financial services and other sectors, albeit the technology is at an early stage of development.

 

REGULATION (€Cross-border payments)

The European Parliament and the Council have reached a political agreement on a Commission proposal that will make cross-border payments in euro cheaper across the entire EU. http://tinyurl.com/ydyseesv  Revised proposal http://tinyurl.com/yaxzlkj9

The agreed rules will also bring full transparency in currency conversion when consumers are paying by card. Banks, merchants or ATM operators offering a transaction in the consumer’s home currency will all have to declare currency conversion charges in the same way, making it easy for consumers to select the best option.

 

REGULATION (PSD2)

Airwallex has been granted an EMI license from the FCA. http://tinyurl.com/ycepkwn3

The EMI license will further boost its growth by allowing operations throughout the EU by passporting through the region.

 

Google Payment Lithuania has been granted an EMI licence by the Bank of Lithuania. http://tinyurl.com/yaxcmhem

 

REGULATION (Consumer credit)

The FCA has announced the next package of measures forming part of its high-cost credit review. http://tinyurl.com/ybhrsrns

It has announced proposals to change how banks charge for overdrafts and has published the results of its review into the retail banking market.

The FCA has also made new rules strengthening the protections for consumers using home-collected credit (doorstep lending), catalogue credit and store cards and it is consulting on further measures on buy now pay later offers including stopping backdated interest for repayments made during the offer period.

BNPL Consultation http://tinyurl.com/yb5bd7b7  .

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