22 March 2019

22nd March 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • Issuing
  • Retailing
  • Digital/Retail Banking
  • Cross-border payments
  • Open Banking/PSD2
  • UK Payments Infrastructure
  • Fraud/cybersecurity
  • Corporate Activity

DIGITAL and eCOMMERCE

The IMRG Capgemini eRetail Sales Index for February saw the industry recording its strongest growth (+9.4% YoY) in six months. http://tinyurl.com/yxbskm3t

Despite the upturn driven by the unseasonably warm weather, growth remains below the 5-year February average of +10.6%.

 

Samsung has announced a partnership with PFS to launch Samsung Pay for its branded cards. http://tinyurl.com/y6dq4khr

Cardholders on specific programmes issued and managed by PFS in the UK can now enable Samsung Pay and use Contactless wherever the contactless symbol is displayed and Mastercard accepted.

 

Starling Bank is starting a phased rollout of 3D Secure. http://tinyurl.com/y6phkvzs

 

First Data (Telecash) – Consumer Insights Study on German Consumers’ Preferred Payment Methods. http://tinyurl.com/yymoacok  Infographic http://tinyurl.com/y3uenhqw

One finding of the survey is that 52% of consumers prefer card payments against 44% who prefer cash, a reversal of historic trends.

 

Worldline is now supporting Apple Pay and Google Pay at POS in Germany. http://tinyurl.com/y5prld2k

 

Google Pay now has Air France, KLM, EasyJet, Lufthansa and Ryanair enabling it for boarding passes. http://tinyurl.com/y5plzqoq

 

Solaris Bank is to support Alipay in Germany. http://tinyurl.com/y4ehfope

 

Instagram has announced it is trialling a checkout feature on its mobile apps. http://tinyurl.com/y5bxqjaa

The feature allows users to store their payment information with Instagram to make purchases more quickly. Checkout on Instagram is currently in closed beta for businesses and available to people in the US. About Shopping on Instagram http://tinyurl.com/yarkl5pb

 

First Data has announced the launch of Authorization Optimization. http://tinyurl.com/y65xwepv

The new digital commerce solution is aimed at driving efficiency and revenue by optimizing card-on-file transactions with the application of intelligent transaction tools to increase authorization rates.

 

Square has announced the availability of the revamped Square Online Store and Square for Retail in the US. http://tinyurl.com/yxpn379e

The new offerings are the first Square products to be fully integrated with Weebly with the Online Store allowing sellers to grow their business in person and online, with a professional eCommerce website and integrated tools. The Square for Retail POS system has also been completely redesigned with expanded product features that support easier omni-channel order management.

 

eBay is to rollout Google Pay on its Marketplace Platform. http://tinyurl.com/yyeudsl6

Google Pay users will be able to complete purchases on eBay via the app, mobile web and on desktop from sellers participating in managed payments. Customers who have the Google Pay digital wallet will also be able to complete purchases on desktop, regardless of operating system or device.

More detail on developments with Google Pay and Managed payments http://tinyurl.com/y4g6upck that contains news that eBay is currently working on integrating to accept PayPal.

 

ACQUIRING/PROCESSING

Worldpay has announced it is enabling Amazon Pay for its merchants in the US.  http://tinyurl.com/y3b38os4

Claiming a world first, integration is through Worldpay’s API. Merchants can now enable Amazon Pay, with Worldpay as both their gateway provider and acquirer.

 

APEXX, the payments marketplace, is now available in Russia. http://tinyurl.com/y59acnk2

APEXX is now connected to Sberbank, VTB, and Alpha Bank giving it the ability to process payments through the national Mir payment system for the first time.

 

ISSUING

Instarem, after a Series C financing round, has announced a partnership with First Data. http://tinyurl.com/y3ff94t6

The move combines InstaReM’s digital payments and remittance solution with First Data’s debit processing solution enabling InstaReM to issue cards for a number of use cases, such as T&E programs. Launching in Singapore in the next few months with rollout in Europe and Australia planned by the end of 2019 and then globally.

 

RETAILING

McKinsey has published a survey entitled The Future of Shopping: connected, virtual and augmented’.

Covering 2,624 consumers in France, Germany, UK and the US, the results suggest that multi-channel is becoming the new norm with the lines between online and offline channels becoming increasingly blurred.

 

DIGITAL/RETAIL BANKING

RBSG and Tieto are partnering to launch a new virtual account platform for SMEs and corporate customers. http://tinyurl.com/y42f3os5  (Not reported on RBSG or Tieto web sites)

The new platform will allow regulated professional business customers to segregate their clients’ money and is due for launch in October 2019. It will enable users to control all aspects of their clients’ account management activity, eliminating the need to hold multiple bank accounts. RBS says it will also help corporate businesses reduce the number of physical bank accounts they hold.

 

CROSS-BORDER PAYMENTS

IBM is launching Blockchain World Wire that simultaneously clears and settles cross-border payments in near real-time. http://tinyurl.com/y59jkd69  Forbes article http://tinyurl.com/y5z65fma

Based on blockchain technology and the Stellar protocol it integrates with existing payment systems using a stable coin, central bank digital currency or other digital asset as the bridge asset between any two fiat currencies.

 

MoneyNetInt is launching PayTicket, a payment service for drivers requiring to pay fines in another country. http://tinyurl.com/yxwsh2bn

The platform facilitates payment by cards rather than cross-border bank transfers or money transfers.

 

Six Spanish banks have adopted SWIFT gpi for cross-border payments.  http://tinyurl.com/y57of6uq

Banco Sabadell, Banco Santander, Bankinter, BBVA, Caixabank and Grupo Cooperativo Cajamar, are all live on the service and are actively using SWIFT gpi, accounting for 85% of Spain’s cross-border payments. More than 3,500 banks, accounting for 85% of SWIFT’s total payments traffic, have committed to adopting gpi.

It has been suggested that IBM’s launch of its Blockchain World Wire as being intended to offer an alternative to the SWIFT system.

 

OPEN BANKING/PSD2

The EBA has launched its central electronic register under PSD2. http://tinyurl.com/yymfxcbk

The register includes information on (1) the identity of authorised PIs and EMIs, including PISPs and AISPs (2) their country of establishment and the services  provided (3) information on passporting.

 

Sbanken in Norway has selected Nets to support open banking with Nets Access to Account Services (NAAS). http://tinyurl.com/y6gzqvpn

Nets’ single integration solution will give Sbanken access to account information in all banks in Norway and beyond through banks PSD2 APIs.

 

MYPINPAD has launched an authenticator platform to allow FIs to develop PSD2 compliant solutions in a secure sandbox environment.  http://tinyurl.com/y6srfqkn

The MYPINPAD solution combines all three factors mandated by SCA –  the user’s phone (possession), their card PIN (knowledge) and a facial authentication step (inherence) delivered via a collaboration with biometric authentication fintech AimBrain.

 

The Dutch National Bank and the Dutch Data Protection Authority have entered into a cooperation protocol covering PSD2. http://tinyurl.com/y3njwyv4

Although the DNB is the authorized supervisory authority with respect to PSD2, the DPA also has an important supervisory role on privacy related questions.

 

UK Finance Blog – What do firms need to know about eIDAS? –   which confirms that there are no domestic providers of eIDAS certificates within the UK but that the requirement for firms to comply with the regulations will remain in UK law whatever the result of Brexit. http://tinyurl.com/y2gle5l2

 

Tink, a Swedish open banking platform, says that a survey indicates 41% of EU banks missed the PSD2 14 March deadline. http://tinyurl.com/y3snyvsv

The deadline required banks to provide a sandbox environment for TPPs to test their APIs.  Those who miss the deadline are required to provide a fallback mechanism i.e. direct access.  It will be interesting to see how the EBA/NRAs react.

 

UK PAYMENTS INFRASTRUCTURE

Pay.UK has advised that the second phase of a new access model for non-bank PSPs has recently gone live. http://tinyurl.com/y5d5jwcr

The new model allows non-bank PSPs to utilise client funds to support payments made via the Faster Payments system and makes access easier. Bacs is due to go live with this model later this year.

 

FRAUD/CYBERSECURITY

UK Finance has published ‘Fraud the Facts 2019’  http://tinyurl.com/yxz4botr

The report says total fraud in 2018 amounted to £1.20bn but UKF majors on the amount of fraud that was prevented that it puts at £1.66bn i.e. stopping £2 in every £3 of attempted unauthorised fraud. UKF also points to the theft of personal and financial information through social engineering caused by data breaches outside the financial sector as being a major contributor to the fraud losses. No Mea Culpa here then.

PSR Response http://tinyurl.com/yxqtwe66

 

The BRC meanwhile has issued its annual Retail Crime Survey. http://tinyurl.com/y6hyc88t   Survey http://tinyurl.com/y4rfjdap

The survey shows the combined cost of spending on crime prevention and losses from crime to the industry was £1.9bn in 2017/18. CNP fraud gets the highest ranking for Fraud types (See page 22) but violence remains by far the most significant type of crime (See page 7).

 

CORPORATE ACTIVITY

Visa’s offer for Earthport has been extended to 30 April after the MasterCard withdrawal. http://tinyurl.com/y4l2qxk8

Meanwhile Earthport Payment Services UAB has been granted a Payment Institution license by the Bank of Lithuania. http://tinyurl.com/y48d4crd

The license gives Earthport EU passporting rights and gains it access to Central the Bank’s proprietary CENTROlink payment system.

 

FIS and Worldpay have announced they have entered into a definitive merger agreement. http://tinyurl.com/y6ltefp3

The deal values Worldpay at $43bn with an eventual share split of 53%/47% ifo FIS.  The combined company will have pro forma 2018 annual revenue of approximately $12.3bn and will retain the name FIS. The move expands FIS’ capabilities by enhancing its acquiring and payment offerings and significantly increases Worldpay’s distribution footprint.

 

Nexi S.p.A has confirmed it is going ahead with an IPO on Borsa Italiana. http://tinyurl.com/y4u27v9u

The IPO will see new shares issued for an overall expected value of between €600m and €700m.  The proceeds will be used mainly to reduce the financial indebtedness of the Group.

A Bloomberg article http://tinyurl.com/yymogrnw  suggests the target for the IPO is to raise as much as €2.7bn.

 

First Data has announced the acquisition of ayCash in Germany. http://tinyurl.com/yybgjx3v

ayCash operates YesCash and Cash4Less and offers technical solutions (incl POS) for Girocard and credit card acceptance to DACH-based merchants. No financial detail of the deal has been given.

 

Latest News Round-up

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