21 June 2019

21st June 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • ACH – ATMs
  • Instant Payments
  • Digital & Retail Banking
  • Biometrics
  • Fraud & AI
  • Open Banking & PSD2
  • Blockchain/DLT/Cryptoassets
  • Corporate Activity
  • EPC/SEPA
  • UK Financial System
  • Regulation

DIGITAL and eCOMMERCE

Visa’s UK Consumer Spending Index for May 

The Index signalled that overall expenditure fell modestly in May, down -1.4% on an annual basis.

 

The IMRG Capgemini eRetail Sales Index for May indicates online retail sales were up just +1.9%.

This is the worst recorded growth since the e-Retail Sales Index started. Monthly growth continues below the 3-month, 6-month, and 12-month rolling average.

 

Viseca Card Services in Switzerland has introduced support for Samsung Pay.

 

KLM is making Apple Pay available to Dutch users of its iOS app.

The wallet will be available to users with a Maestro debit card issued by a bank that supports Apple Pay.

 

BBVA and duty-free travel retailer Dufry are partnering to accept WeChat Pay at Madrid airport.

 

MasterCard has made announcements about

A partnership with ING Turkey has seen the implementation of the ING SoftPos app that enables SMEs to use their Android phones to take payments.

Implementation for Coca-Cola Icecek of the Masterpass  B2B commercial solution in Turkey that enables sales representatives and other vendors to take payments at the time of order.

 

Mastercard has also announced it’s first-ever voice skill for smart speakers: the Priceless Experiences skill.

The skill, which will be available this summer, will allow users to hear about a wide variety of experiences available in US cities. Content for cities outside the U.S. is expected in 2020.

 

Shopify has announced a series of enhancements to its offer.

Shopify’s innovations include a newly updated Shopify Plus platform for enterprise brands, more global capabilities, the launch of a fulfilment network that will allow merchants to deliver their products fast and at a low cost and a new Shopify POS.

 

Xero has announced a partnership with Stripe to develop new innovations to support SMEs.

The first two innovations announced are a new Stripe feed, designed to bring comprehensive transaction data for all Stripe payments into Xero, and Auto pay, allowing SMEs to set up and receive recurring payments for repeat billing customers directly through Xero. The Stripe feed will be available in the next few months.  Auto-pay will be available soon to businesses in the United States before rolling out globally.

 

ACQUIRING/PROCESSING

The PSR has published responses to its consultation on the proposed pass-through analysis for the card-acquiring market review.

Responses from Barclays, British Retail Consortium, Global Payments, iZettle, Lloyds Banking Group, MasterCard, Riskskill, UK Finance, Visa Europe, Worldpay. Only a few redactions.

 

Crédit Agricole Payment Services (CAPS) and Wirecard are increasing the scope of their digital payment partnership.

The collaboration will see the introduction of cross-channel acceptance and pan-European acquiring services via Wirecard’s Financial Commerce Platform with CAPS gaining access to Wirecard’s UnifiedCommerce e-commerce shop extension tool. The two parties have also agreed on joint commercial business routes for tier 1 merchants.

 

Nexi has signed an agreement with China UnionPay to increase the acceptance of UnionPay cards by March 2021.

Within the next two years Nexi will provide support for ecommerce merchants and ensure full acceptance of UnionPay cards by its current acceptance base of 890,000 merchants.

 

Visa has announced global adoption of its sensory branding suite in 25 countries via more than a dozen new partnerships.

The suite consists of sound, animation and haptic brand cues that occur when a Visa payment transaction takes place.

 

ACH – ATMs

ABN Amro, ING and Rabobank have started transferring their ATMs to the Geldmaat network in the Netherlands to address the decline of cash use among its customers.

The three banks will now gradually transfer their ATMs to Geldmaat.  Geldmaat, previously Geldservice Nederland, has been in charge of the management and maintenance of the banks’ ATMs since 2011.

EVO Payments International was awarded a 5 year service agreement for acquiring by Geldmaat in April.

 

INSTANT PAYMENTS

Starling Bank has partnered with Bottomline Technologies to support its real-time payments.

Starling is powering Bottomline’s SAAS-based Real Time Payments Express Service that provides an API-driven real-time payment and settlement service. In addition, it provides all the core benefits of the historical access methods to Faster Payments

 

Volante Technologies is launching end-to-end SEPA instant payments processing as an on-demand managed service on Microsoft Azure.

The VolPay powered solution will give access to RT1 and TIPS, using SIAnet for connectivity.

 

SIA meanwhile has announced that, in partnership with Colt Technology Services, it will provide all European financial institutions with connectivity services  to TARGET2, TIPS, TARGET2-Securities and to the ECMS.

Connectivity will be via the Eurosystem Single Market Infrastructure Gateway (ESMIG) and is planned to start in November 2021.

 

equensWorldline is supporting seven Dutch banks with its CSM system for instant payments.

Due to this large-scale launch of real-time payments in the Netherlands, equensWorldline has become the biggest processor of instant payments in the Eurozone.

 

ECB SpeechTransformation of the retail and wholesale payments landscape in Europe

Another reprise for the ’we need a standardised EU wide payment system’ message that is largely based on leveraging instant payments.

 

BIOMETRICS

Crédit Agricole has launched a trial of biometric payment cards with sensors provided by Fingerprints.

Fingerprints has confirmed 20 contactless card trials across the world now utilise its fingerprint technology. The Crédit Agricole trial is expected to continue for six months, following which, a commercial roll-out is planned next year.

 

Wirecard has announced it is introducing a smart payment terminal that incorporates a palm scanner.

The Smart Biometrics solution enables registered customers to place their palms on the biometric scanner for identification, triggering a real-time payment via the Wirecard Platform.

 

FRAUD and AI

Visa says it has prevented c$25bn of fraud using AI.

The Visa Advanced Authorization (VAA) system is a comprehensive risk management tool that monitors and evaluates transaction authorizations on the Visa global payment network in real time.

 

Cifas has published its 2019 Fraudscape

The Cifas National Fraud Database reported almost 324,000 cases of fraudulent conduct in 2018, up 6%. For cards there was an overall 29% increase driven by a huge surge in identity fraud (up 41%) with  decreases in Facility takeovers (-21%), Application fraud (-25%), and Misuse of facility (-19%).

 

NatWest has announced customers can now open an account using a photo for verification.

The ‘selfie’ ID verification process will enable customers to save time on the authentication process. Using AI and real-time biometric checks, NatWest will confirm that a customers’ selfie matches the image in their photographic ID. NatWest follows other high street banks such as HSBC and Lloyds, who enabled this capability in 2016.

 

The Euro Banking Association’s Open Banking Working Group has delivered a new report on the potential of AI for collective use cases in data analytics. (Available to members only).

The report focusses on the collective benefits that could be generated by jointly developed AI systems in the era of open banking rather than at the individual institutional level.

 

OPEN BANKING & PSD2

EBA CLEARING has announced that 24 PSPs from 11 countries have confirmed their intention to support the delivery of a pan-European Request to Pay (R2P) infrastructure solution.

The underlying blueprint sets out a thin-layer infrastructure solution that will be based on real-time messaging and separated both from the services solutions and payment infrastructure layers. It is planned to deliver the solution before the end of 2020.

 

Lloyds Bank Group is enabling Open Banking within apps to give customers access to savings accounts and credit cards details.

Currently only LBG accounts are available but as other banks and PSPs join the service the choice will widen. Lloyds is also introducing a 24/7 secure messaging service that links customers to an adviser from a virtual assistant.

 

Token has raised $16.5m in a funding round.

Token will use the capital to build on the success of TokenOSTM open banking platform and accelerate new ways of innovating payments with digital money and ID solutions.

 

BLOCKCHAIN/DLT/CRYPTOASSETS

Monerium has announced it has been granted the first e-money license for blockchains issued under EC e-money regulations.

The e-money platform of the Icelandic fintech is based on open standards and designed to support decentralized financial applications on any blockchain.

 

Facebook has confirmed that its new cryptocurrency will launch in 2020.  Libra White Paper

Calibra is the newly formed Facebook subsidiary that will provide services giving access to the Libra network. The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology. The wallet will be available in Messenger, WhatsApp and as a standalone app and is expected to launch in 2020.

There has been a huge amount of comment regarding the announcement.

 

MoneyGram and Ripple have announced a partnership together with an equity investment from Ripple of $30m.

Moneygram will use Ripple’s xRapid product, leveraging XRP in foreign exchange settlement as part of MoneyGram’s cross-border payment process. The initial investment of $30m may be increased by a further $20m through a stock option.

 

CORPORATE ACTIVITY

EVRY has announced a merger agreement with Tieto to create a digital services and software company in the Nordics.

The new company will have its headquarters in Espoo, Finland with a combined revenue of €3bn.. The corporate and management functions will be distributed across Oslo, Stockholm and Espoo. Presentation

 

Mastercard and Treezor have announced their commercial and technological partnership in France and Europe.

Essentially this is about Treezor using MasterCard’s MPTS platform.

 

PayPal has indicated it will make more strategic deals similar to the recent $500m investment in Uber Technologies.

 

EPC/SEPA

Public consultation: draft Mobile Initiated SCT Interoperability Implementation Guidelines (including SCT Inst)

 

UK FINANCIAL SYSTEM

Bank of EnglandThe future of finance report   Report.

Associated Speech by Mark Carney.

UK Finance Response.

A review on the outlook for the UK Financial System and What it means for the Bank of England. No 1 recommendation is to ’Shape tomorrow’s payment system’. ‘As our payment habits shift, we need a national payments strategy to improve our payments infrastructure and regulation — which doesn’t leave anyone behind’.

 

REGULATION (Fintechs)

The FCA has published its first annual perimeter reportBackgrounder.

The FCA perimeter determines which firms require authorisation and what level of protection consumers can expect for the financial services and products they purchase. Points towards how the FCA may tackle the way in which technology and the use of data are increasing the speed of change in financial services markets.

 

See also UK FINANCIAL SYSTEM above. Mark Carney’s speech has relevance for the Regulation of Libra and other crypto currencies, fintechs, etc.

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