26 April 2019

26th April 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • Issuing
  • Fraud & Cybersecurity
  • Digital/Retail Banking
  • SME Finance
  • Cross-Border payments
  • Open Banking & PSD2
  • Corporate Activity
  • UK Payments Infrastructure
  • Regulation

DIGITAL and eCOMMERCE

The IMRG Capgemini eRetail Sales Index for March indicates the online retail industry recorded growth of 5% yoy.  http://tinyurl.com/y2wp8ft2

Online-only retailers saw marginally better results – growing +8.9% versus multichannel retailers’ +5%.

 

BS PAYONE and Retail Pro International (RPI) are equipping the Benetton Group’s London flagship store with a mobile POS and payments system.  http://tinyurl.com/y3mnzx2d

The solution enables consultants to take payments throughout the store, in addition to calling up inventory, search availability of articles or possible deliveries from the branch network. The receipt is printed on a receipt printer and, if desired, sent to the consumer by e-mail.

 

Apple Pay now being supported by Erste Bank in Austria.  http://tinyurl.com/yy34z7rl

 

Payworks and Lightspeed have added integrated payments in Belgium via Payworks’ Pulse platform. http://tinyurl.com/y553rxgp

The all-in-one POS solution is distributed through BNP Paribas Fortis giving Belgian merchants access to integrated payments. As part of the agreement, Lightspeed will also procure terminal hardware directly from Payworks.

 

Adyen’s “Unified Commerce Index” indicates omnichannel shoppers spend 15% more per purchase than those using a single channel.  http://tinyurl.com/y33t6xtb

Using its 2017 and 2018 global data Adyen provides three insights:

  • Omnichannel shoppers spend more.
  • Convenience is fuelling mobile shopping,
  • Loyalty travels with tourists.

80% of single channel purchases globally are made in-store, with 20% completed online. For omnichannel shopping, 60% of purchases are made in-store and 40% online.

 

NCR has released details of an all-in-one POS solution branded Silver One. http://tinyurl.com/y6psqcjt

The solution integrates payment processing with Samsung designed Quantum tablets, provides payments processing through JetPay, which NCR acquired last year, and includes a comprehensive digital commerce suite.

 

Shopify is also launching a new all-in-one POS offer. http://tinyurl.com/y38tg3g6

A standard offer that includes three devices: The Shopify Tap & Chip Reader, Dock and Retail Stand. The Tap & Chip Reader integrates with the Shopify POS software package which gives multi-channel inventory management, secure payments, and a consolidated backend that connects directly with a merchant’s online store. It looks as if it may be only available in US at present.

 

ACQUIRING/PROCESSING

BlueSnap has announced the launch of a new Integrated Payments for Platforms product.  http://tinyurl.com/y39djsfq

The solution provides embedded payments for ISVs giving them the ability to scale and monetize their business with a single payments provider and offering the tools to manage their entire program end-to-end.

 

MeaWallet has launched a new payment tokenization solution.  http://tinyurl.com/y42cgo2l

The solution delivers Mastercard, Visa and American Express tokenisation services through a single connection and is delivered as a fully hosted service.

 

ISSUING

Marqeta has signed up its first three European customers.  http://tinyurl.com/y229dzv6

The US-based open API card issuing and processing platform, has signed up by French digital bank Morning, Swiss digital bank Yapeal, and Spanish POS lender Aplazame.

 

Visa is introducing a new platform for building and beta testing new payment products.  http://tinyurl.com/y2a2omz3

What appears to be a partial sandbox, has a set of beta APIs, specifications and development tools for use by issuers and issuer processors. The platform will be available to clients and partners via Visa Next, a new web site for accessing new solutions in Visa’s product pipeline.  It will enable access for Banks and digital wallets to Visa’s current and future real-time API services in combination with instant-issuance capabilities and digital-ready processing from a network of participating global partners.

 

FRAUD & CYBERSECURITY

The Director of GCHQ has given a speech at the CyberUK conference in Glasgow.  http://tinyurl.com/y37d2qyt

The speech covered, amongst a range of topics, how intelligence officers are working with the private sector in the fight against credit card fraud. Stolen credit card details posted on the dark web are now being detected by government surveillance systems and shared automatically with banks so that they can block the affected accounts and halt fraud. GCHQ will continue to “scale this capability” in the coming year, as well as using automated tools to block fake email addresses that purport to be from a real institution such as HMRC.

 

DIGITAL/RETAIL BANKING

A Mastercard-Sponsored Study by Harvard Business Review looks at the interaction between FIs and Fintechs. http://tinyurl.com/y33noysv

“In the Game: Traditional Financial Institutions Embrace Fintech Disruption” surveyed 300 senior executives at financial services companies to gauge their views on the opportunities and threats posed by fintechs. FIs are generally positive with nearly 80% not feeling an immediate threat from the disrupters, but meanwhile are learning from their efforts.

 

Facebook/Accenture – Understanding How Mobile-First Millennials Are Reshaping Expectations in the Retail Banking Industry.  http://tinyurl.com/y3qxfv5y    Infographic http://tinyurl.com/y2o3xunv

The article explores how mobile and other digital banking services are redefining and shifting the way UK banking consumers manage their money. 56% of people ages 18–34, compared with 25% of those over 35, are using digital or fintech services like Revolut, Monzo or Pockit, primarily as add-ons to their traditional regulated bank account.

 

Unisys has launched a new version of its Elevate Omnichannel Banking Platform.  https://preview.tinyurl.com/y4bglvn7

The new software enables banks to integrate third party apps and services to facilitate the shift to Open Banking.

 

SME FINANCE

Resolve has formally spun out of Affirm to launch an automated payments platform offering extended net terms.  http://tinyurl.com/y39stlj4

Resolve is a US based B2B automated platform for net 30, 60 and 90-day payment terms. Buyers complete an application customised for their business type and size. Resolve then analyses applications in combination with non-traditional commercial underwriting data to approve extended payment terms.

 

CROSS-BORDER PAYMENTS

Visa is integrating with FIS to provide FIS’ commercial FI clients with access to the Visa B2B Connect platform. http://tinyurl.com/yyv9a57z

Visa B2B Connect, a DLT based, non-card platform, will be available to FIS’ customers requiring to process high-value corporate, cross-border payments. FIS has created a custom integration module, significantly reducing the need for clients to perform technology updates to their existing systems.

 

WorldRemit has launched digital money transfers to China UnionPay cards.  http://tinyurl.com/y6ljkwtz

The Chinese diaspora living in over 50 countries, including the UK, can now send money to any China UnionPay debit card in China using the WorldRemit app or website. The solution is underpinned by a new strategic partnership with money services business, Merchantrade, which significantly increases WorldRemit’s footprint in Asia-Pacific.

 

Ixaris is partnering with Banking Circle to integrate the latter’s Virtual IBAN technology to Ixaris’ payment products.  http://tinyurl.com/y5q2j9wk

The solution claims to result in more efficient global payments for the travel industry by creating a seamless cross border transaction process across more than 25 currencies in 60 countries and enables Ixaris to give customers their own virtual IBAN’s.

 

OPEN BANKING & PSD2

Stripe is launching new features for Stripe Billing in Europe.  http://tinyurl.com/y25ord46

The aim is to help recurring revenue businesses in Europe expand internationally and minimise the impact of SCA. The new features take advantage of Stripe’s new Payment Intents API, which allows it to automatically apply any SCA exemptions available for a given payment.

See also re SCA Readiness http://tinyurl.com/y25ord46

 

Mash is partnering with Tink to use the latter’s account aggregation capabilities.  http://tinyurl.com/y32n96lh

Mash will use its fellow Finnish fintech’s technology to deliver a better experience to its 150,000 users by providing smoother on-boarding process and much deeper control, visibility and insight about their financials. The integration will be rolled out later this year in Finland and can be extended to Mash’s operations in Sweden, Poland and Spain.

 

CORPORATE ACTIVITY

SoftBank is looking to invest €900m in Wirecard.  http://tinyurl.com/yyequqyf

The deal involves the purchase of convertible bonds that will allow an affiliate of SoftBank to acquire a 5.6% holding.  Wirecard and SoftBank have also agreed on a strategic partnership for digital payments with SoftBank supporting Wirecard’s launch into the Japanese and South Korean markets.

 

UK PAYMENT INFRASTRUCTURE

The BoE has published the Minutes of the RTGS Renewal Programme – External Advisory Body meeting on 9 April.  http://tinyurl.com/y3s4yump

An update on the Programme was provided on the two core elements of the current phase: Procurement and Transition State One / Enablers. Pay.UK provided on update on the NPA Programme. There was also an update on ISO 20022.

 

The PSR has granted a request from Bacs to extend the date for compliance with the implementation of competitive procurement for any central infrastructure contract.  http://tinyurl.com/yyqs537b  Specific Direction http://tinyurl.com/yyxdgk2t

Originally set for 2 December 2020 to enable transitional arrangements in relation to the NPA, the date has now been extended for a further three years to 2 December 2023.

 

REGULATION (UK)

FCA – The future of financial conduct regulation. A Speech given by Andrew Bailey.  http://tinyurl.com/y4xyvwb2

The speech gives a strong steer that, post-Brexit, things will change with a reassessment of how the current financial conduct regulation regime should develop, particularly regarding more emphasis on principles and outcomes rather than straight rules.

 

In parallel the FCA has published a Feedback Statement summarising the responses received to its Discussion Paper – ‘A duty of care and potential alternative approaches’ – published in July 2018, and setting out next steps.

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