22 February 2019

26th February 2019
  • Mobile/Contactless and omni-Commerce
  • Cash
  • Loyalty
  • Gaming/Gambling
  • Acquiring/Processing
  • PSD2/Open Banking
  • Fraud/Security
  • ACH
  • GDPR
  • Corporate Activity
  • EBA
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

Beware –  MWC19 (rebranded Mobile World Congress) is on next week so expect a deluge of announcements.

 

The IMRG Capgemini eRetail Sales Index for January recorded its worst January sales growth (+7% YoY) in three years. http://tinyurl.com/y2q4pwrd

 

Barclays has announced it will be rolling out the Pay by Bank app, currently on its Pingit app, on its Barclays Mobile Banking App in 2020. http://tinyurl.com/y5yw29zu

Meanwhile, with immediate effect, Barclaycard merchants can accept mobile payments through the Pay by Bank app.

 

Worldline and Rambus Inc have announced more developments to deliver innovation into UK rail.  http://tinyurl.com/yxqhv2to

By integrating Rambus remote ticket download (RTD) software, Worldline can now deliver ITSO-based smart tickets to customer smartcards with their @Station and Mobile Ticket Issuing Service.  The solution will allow passengers to collect pre-booked tickets using smart cards, and provides support for contactless cards. The first deployment is at Southeastern, with Govia Thameslink to follow.

 

ACI Worldwide is launching new cloud-based, omni-channel in-store payments capabilities within its UP Merchant Payments solution. http://tinyurl.com/y3spbs9p

The broadened UP Merchant Payments solution is the result of ACI’s acquisition of technology assets from providers RevChip and TranSend, that will help deliver a next-generation, mobile-first digital payment experience in-store. Financial details of the deals were not disclosed.

 

Riksbank – The payment behaviour of the Swedish population. http://tinyurl.com/y46wf2u8

Swedish households are increasingly using electronic means of payment such as bank cards and Swish, at the same time as the use of cash is declining. Parallel to the increase in popularity of Swish, the percentage of households stating that they used cash during the past month has continued to decline. Debit cards are still dominant among electronic means of payment. Payments patterns in Sweden 2018.pdf

 

CASH

Which? has said that there is a need for a Regulator to protect access to cash. http://tinyurl.com/y6fkyw3k

Which? is running a new campaign that calls for the Government to appoint a regulator with sole responsibility for the cash infrastructure to ensure consumers and businesses can continue accessing cash.

 

Meanwhile the Treasury Select Committee has also urged the Government to guarantee consumers’ ability to access their cash. http://tinyurl.com/yxqxxpht  See also http://tinyurl.com/y59yunef

In an evidence session with the PSR its Chair said that the whole system of access to cash needs to be looked at afresh, and that the PSR board is to look at the entire infrastructure of cash provision. While recognising that there is a need to guarantee access to free-to-use ATMs, the PSR says a debate is needed about whether access to cash should be a universal service, rather than a commercial one.

 

Lloyds Banking Group has to launch a pilot scheme with Visa to enable retailers to offer cashback to customers. http://tinyurl.com/yyrh5h3r

The cashback incentive will target areas of the UK where access to cash is difficult, particularly in rural areas. Lloyds will pay a fee to retailers for processing cashback transactions with the aim of increasing the number of places where customers can withdraw cash.

Initially customers will still be required to make a purchase in line with current cashback rules but the intention is that retailers will in future be able to offer cashback without the need for a purchase.

 

LOYALTY

Monese  is partnering with Avios to link the reward program with a user’s Monese account. http://tinyurl.com/y4ffdgv3

British Airways Executive Club members will be able to track and manage their Avios balance via the Monese app.  Exclusive Avios benefits will also be made available within the Monese app.

 

GAMING/GAMBLING

The Gambling Commission is consulting on the issue of gambling online with credit cards. http://tinyurl.com/y522yfdr  Call for evidence: gambling on credit cards http://tinyurl.com/y2rxdl2x

The commission is seeking meaningful input to help determine if restrictions, including an outright ban, are necessary to limit risks to consumers.

 

ACQUIRING/PROCESSING

The PSR has defended its decision not to examine whether scheme fees are excessive in its market review of card acquiring services. http://tinyurl.com/y59yunef (These are the full minutes of the Oral evidence given to the Treasury Select Committee on 12/02/2019)

The PSR Managing Director said that, while some scheme fees have risen, the focus pf the review is primarily on the interchange fee, because that is where the PSR sees the greatest potential for harm for merchants. However, if a problem is identified with scheme fees the issue will be followed up.

 

Worldpay and Sage Pay have announced a partnership that broadens the range of card payment solutions available to businesses in the UK and Ireland. http://tinyurl.com/y24sxfnp

The partnership will provide support for businesses to deliver cost effective, simple and transparent card payments solutions.

 

Barclaycard Commercial Payments has announced a strategic partnership with SAP UK to integrate its B2B virtual cards solution, Precisionpay, into SAP Ariba marketplace solutions. http://tinyurl.com/yyxm47m9

The move will bring procurement and payment together in Ariba Network, giving users an end-to-end procurement experience.

 

Barclaycard has also announced a similar partnership with Amadeus to integrate Precisionpay into Amadeus’ B2B Wallet payment solution. http://tinyurl.com/y2fjmak9

The Amadeus B2B Wallet is a one-stop-shop solution for travel agencies to pay their suppliers, giving travel agencies access to multiple payment options.

 

UATP and Conferma Pay have announced a partnership to bring virtual card payment technology to airlines and agencies. http://tinyurl.com/y3wtdwmu

The joint solution is designed to make airline payments more secure and offers reconciliation benefits. UATP’s customers now have the option to use virtual payments through its global corporate travel ecosystem.

 

Secure Trading / acquiring.com has announced it is to develop a high-risk portfolio with PurePay. http://tinyurl.com/y2u5pmnm

PurePay will act as an introducer for merchants from sectors such as tobacco, CBD oils and nutraceuticals.

 

PSD2/OPEN BANKING

Yolt has launched an Open Banking product for businesses.  http://tinyurl.com/y5x4oqrb

Yolt for Business will allow businesses, particularly SMEs, to carry out aggregation and PI services via its app by giving access to its API technology stack.

 

FRAUD/SECURITY

The Dedicated Card and Payment Crime Unit in the UK prevented an estimated £94.5m of fraud in 2018. http://tinyurl.com/yyod25g4

During 2018 the unit secured 48 convictions and disrupted 11 organised crime groups as well as recovering over 32,000 compromised card numbers.

 

ACH

FairFX has become a Direct Participant in FPS via its subsidiary, Spectrum Payment Services (SPS). http://tinyurl.com/y4lczgtt

With access to RTGS accounts, FairFX is now eligible to join BACS and CHAPS. It will also have its ownsort code, which, in conjunction with its SWIFT membership, means it can now create IBANs for customers. FairFX is the fourth non-Bank to become a directly connected and directly settling member of FPS.

 

GDPR

European Data Protection Board: No-deal Brexit requires data protection action. http://tinyurl.com/y5eunytr

The note provides information to commercial and public organisations covering transfer instruments under the GDPR for the transfer of personal data to the UK in the event of a no-deal Brexit.

 

CORPORATE ACTIVITY

Ant Financial has agreed to buy WorldFirst for $700m. http://tinyurl.com/yy3bxh3u  Techcrunch http://tinyurl.com/yxn2balu

The company “will continue to operate as a UK-headquartered and regulated business with global operations”.

 

GoCardless has announced a new Series E investment round of $75m.  http://tinyurl.com/y47wpkmj

The funds will be used to expand GoCardless’s existing network that by the end of 2019 will cover 35 countries and nine bank direct debit schemes, across the UK, North America, Australia and Europe. Claimed merchant numbers now stand at 40,000.

 

Starling Bank has raised £60m in a Series C funding round plus a further £15m from its existing investor, bringing the total to £75m. http://tinyurl.com/y33tqjrm

The funding will support increased investment in Starling’s rosta of retail and SME financial products and banking services in the UK. It will also enable acceleration of its global expansion plans. Starling claims a customer base of 460,000 personal current accounts and 30,000 SME accounts.

 

Starling has also been awarded £100m of the RBS CIF funds that it will use to build a better SME banking offer. http://tinyurl.com/y56umsmg

 

Tide and its partner ClearBank have also been granted £60m from RBS Alternatives Remedies Package. http://tinyurl.com/y4wa43jp

The grant will be used to challenge existing Bank incumbents by providing SMEs in the UK with the option of a dedicated and focused banking partner. Tide provides the customer facing proposition with ClearBank acting as the only UK market-neutral clearing bank.

 

BaFin has issued a General Administrative Act prohibiting the establishment of net short positions in shares of Wirecard. http://tinyurl.com/y5fxw7eo  Order/decree http://tinyurl.com/y4k4wb3n

This follows the recent FT accusations concerning Wirecard.

 

EBA

The EBA has published its Consumer Trends Report for 2018 and 2019. http://tinyurl.com/y2hvrhkf  Report http://tinyurl.com/y2atdgcf

The Report covers the trends and issues related to retail banking products and services that fall within the EBA’s consumer protection mandate, such as mortgages, consumer credit, deposits, payment accounts, payment services and electronic money. The Report also provides an overview of the topical issues identified in 2018/19 that impact or may impact consumers.

 

REGULATION (Cross-border payments)

The European Parliament has adopted the regulation regarding cross-border payments in the Union and currency conversion charges. http://tinyurl.com/y28oj9zh  Text http://tinyurl.com/y4gbmqqo

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Latest News Round-up

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