26 July 2019

26th July 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • Issuing
  • Cash(less)
  • Digital & Retail Banking
  • Open Banking & PSD2
  • Corporate Activity
  • Payment Statistics
  • GDPR
  • AML
  • Litigation
  • EPC/SEPA
  • Regulation

DIGITAL and eCOMMERCE

ING and MasterCard are launching a ‘Tap on Phone’ application in Turkey.

First announced as a trial at Money 20/20 (see Daily News 18/06) ING is now rolling out the app on a wider basis post an initial success with the original trial. The Bank says it plans to launch the pilot in other ING markets with similar needs.

 

Klarna research indicates that retailers are struggling to retain their customers as consumers today increasingly have zero tolerance for a poor retail experience. Experience is the new loyalty.

40% of those surveyed say just one bad experience would stop them returning to a brand. A bad returns process (30%), and a drawn out online checkout without payment options (21%) rank much higher for shoppers than retailers perceive them to be.

 

Ingenico’s European online division has released ecommerce transaction data insights.

An analysis of Black Friday and other peak sales days data shows a growing number of consumers who are using online peak sales days to find the best deals and right products across borders.

 

LG Pay has gone live in the US but on only one phone.

The payment systems app can now be downloaded from the Google Play store but only works on the G8 ThinQ phone at the moment. It will be supported on further ThinQ phones in the coming months.

 

WeChat has reportedly developed functionality that enables in-flight mobile payment.

Payment without an internet connection has been made possible by post-landing settlement.

 

Amazon has announced three new Amazon Go stores in Seattle and Chicago.

They have already opened probably more than you think.

 

ACQUIRING/PROCESSING

Mastercard and SumUp are partnering to increase the number of electronic payment acceptance locations across 27 European countries.

Over the next five years, Mastercard and SumUp will bring card acceptance to several million MSMEs across Europe via SumUp mPOS card readers.

 

La Banque Postale has signed an agreement with Discover Global Network.

This partnership allows Discover, Diners Club International and alliance network cardholders to make purchases at La Banque Postale’s merchant clients and to withdraw cash from its ATM network.

 

Preoday and Lloyds Bank Cardnet partner to offer integrated digital ordering technology and payments.

The new offering will enable merchants to provide a seamless pre-ordering customer experience – whether ordering for collection or delivery, online or on the move. The technology is currently being introduced across the UK. A similar partnership was recently announced with Paymentsense.

 

The PSR has posted an update on publication of the card-acquiring market review interim report.

The PSR now plans to publish its interim report for consultation in Q1 2020, rather than by the end of 2019 as originally set out in the ToR.  The final report is promised for Q3/20.

 

ISSUING

Mastercard is partnering with Nationwide to support the launch of a new business banking service.

Targeting the UK SME market, the launch planned for 2020 will see Nationwide issuing MasterCard debit cards.

 

ininal has entered into a partnership to issue prepaid Visa cards.

The existing 3m customers of the Turkish payment platform can convert their prepaid cards to Visa prepaid cards. Initially, ininal card users can procure their new Visa prepaid cards through more than 10,000 sales points in Turkey.

 

CASH(less)

The PSR has published its latest paper on Access to Cash.

The paper summarises the answers to a survey of consumers and small business relating to their cash use and, for small business, acceptance. The PSR is now consulting to seek input on the implications based on this research.

Insights from research into cash access, use and acceptance

Full research report.  Appendices to full research report

83% of people in the UK make cash payments on a weekly basis. 28% of those surveyed actually prefer to use cash than any other payment method as against 69% who prefer to use cards.

 

LINK has published new data highlighting the regional disparities in ATM uses.

The data comes from a new Report – Preserving access to cash.

The report highlights the growing changes in banking and cash use among UK consumers including the continued decline of ATMs for both cash withdrawals and balance enquiries.

 

DIGITAL & RETAIL BANKING

Starling Bank is launching a multi-owner version of its business account.

The new account supports businesses with multiple PSCs (Person of significant control) who are also directors of the company and require access to the account e.g. husband and wife and civil partnership teams. Businesses are able to open a Starling multi-owner account within minutes via the app and there are no monthly account fees.

 

Revolut for Business has announced changes to the pricing structure of its plans with the introduction of a customisable model designed to provide more control and better value pricing regardless of a business’s size.

Revolut is also launching two free business accounts with no monthly subscription fees. The new accounts will be available to all existing and new customers immediately and are available to freelancers and corporates.

 

Banco Santander says in its H1/19 Results announcement that it has now consolidated all its digital services onto its Santander Global Platform.

Digital adoption continued to accelerate over the first six months of the year, with 34.8 million customers now using digital services. On average, 240 customers now access one of Santander’s mobile or digital platforms every second – an increase of 28% over the past 12 months.

 

Nationwide, alongside the MasterCard announcement re debit issuance (See above), has also announced a partnership with ClearBank.

The partnership will provide access to real time payments services for its new business banking proposition.

 

The Current Account Switch Service has published its Q2/19 Dashboard reporting the latest switching figures and trends.

Business bank account switching has more than doubled in comparison to the same period last year. HSBC heads the overall gains column with Halifax the losses. Monzo and Starling, although gaining accounts, remain dwarfed by the incumbents. Dashboard

 

OPEN BANKING & PSD2

OBIE – Nesta Challenges has launched the Open Up Challenge 2020.

The Challenge is a £1.5m prize fund to encourage fintech innovators to create open banking enabled solutions which help consumers across the UK make more of their money.

 

ForgeRock has announced the availability of Open Banking Accelerators

The US based provider of digital identity management solutions says its new offer contains a variety of features to help deploy Open APIs to support compliance with UK and related Open Banking standards. The Accelerators reduce time, cost, complexity and risk of implementation errors in making APIs secure and building a fit for purpose, robust and scalable Open Banking infrastructure.

 

The ECSAs and TPPs have agreed a joint approach regarding the transition to SCA.

The parties have agreed a series of seven actions/commitments to facilitate as smooth a transition as possible. These include calling on NCAs to use the possibilities given to them within the law to the maximum extent possible to help avoid unintended customer detriment.

 

CORPORATE ACTIVITY

Payconiq International has raised €20m in a funding round led by its existing shareholders.

The Luxembourg-based mobile payments platform has built a sustainable ecosystem through an open-API approach and flexible microservices, focusing on consumers, merchants, and banks. The platform now claims 60,000+ merchants in the BeNeLux.

 

Finix Payments has raised $17.5m in Series A funding round.

The B2B payments platform provider will use the funds to grow its payments infrastructure and expand its global footprint.

Investors included Bain Capital Ventures, which led the round, and Visa.   Finix, which has been built by former executives from First Data, PayPal, and Worldpay, enables companies to build their own payfac capability without having to develop a proprietary payments system in-house.

 

Ingenico H1/19 Results.

The Group reports growth of 31% due to a 13% organic performance and the benefit from the Paymark and BS Payone contributions.  Retail has launched the Bambora Connect solution and Global Online has accelerated within the Travel vertical through the launch of LinkPlus and the roll-out of Travel Hub.

 

Atom Bank has raised £50m in a new fundraising round.

Having not taken the opportunity to take a bigger stake earlier in the year, BBVA is included in the investors. The new capital will be used to fund further growth and to continue the bank’s investment in technology.

 

PAYMENT STATISTICS

The ECB has published the 2018 statistics on non-cash payments.

The full set of payment statistics can be downloaded from the Statistical Data Warehouse (SDW). The “Reports” section of the SDW also contains pre-formatted tables with payment statistics for the last five years. In addition to annual payments statistics for 2018, this press release incorporates minor revisions to data for previous periods.

 

GDPR

The EC has published a report looking at the impact of the EU data protection rules, and how implementation can be improved further. Communication.

The report concludes that most Member States have set up the necessary legal framework, and that the new system strengthening the enforcement of the data protection rules is falling into place.

 

AML

The EBA has published an Opinion on the link between money laundering and terrorist financing concerns and prudential objectives.  Opinion.

With this Opinion, the EBA invites prudential supervisors to send a common message to institutions that prudential supervisors factor AML/CFT issues into the prudential supervisory process and cooperate closely with AML/CFT supervisors for this purpose.

This release is contemporaneous with the EC adopting a Communication to the European Parliament and the Council towards better implementation of the EU’s AML and financing of terrorism framework.

Commission assesses risks and calls for better implementation of the rules.   Q&A

 

LITIGATION

The UK Supreme Court has agreed to hear Mastercard’s appeal relating to Walter Merricks’ £14bn class action.

The Court of Appeal granted permission for Merrick to appeal the original CAT ruling throwing out the claim in April.

 

EPC/SEPA

Results of the EPC poll on electronic identification (eID).

32% believe that eID already plays a critical role in customer identification and authentication for payments in Europe with a further 28% saying that will be the case within 2 years.

 

REGULATION (Fintechs)

The EBA has published the findings of its analysis on the regulatory framework applicable to FinTech firms when accessing the market. Report.

The Report illustrates the developments on the regulatory perimeter across the EU, the regulatory status of FinTech firms, and the approaches followed by competent authorities when granting authorisation for banking and payment services.

 

REGULATION (UK)

HM Treasury has launched the first phase of the Financial Services Future Regulatory Framework review.

Announced in the Spring Statement, the first phase is a Call for evidence that will look at how coordination between the regulatory authorities could be improved. Future phases will look at how the framework needs to adapt to UK leaving the EU.

 

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