3 May 2019

3rd May 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • Cash(less)/ATMs
  • Biometrics
  • Fraud & Cybersecurity
  • Digital/Retail Banking
  • Innovation
  • Cross-Border payments
  • Open Banking & PSD2
  • Corporate Activity

Regulation

DIGITAL and eCOMMERCE

Sainsbury’s is launching the UK’s first till-free grocery store at its Holborn Circus convenience store in London. http://tinyurl.com/y6ywh7g2

The 3 month trial will test SmartShop Scan and Pay & Go technology in a bespoke food-to-go store, with feedback helping   Sainsbury’s develop the technology further before rolling it out more widely. Shoppers use an app to scan their groceries as they go round the store, pay in the app and scan a QR code before leaving, which confirms they have paid. The store has been refurbished to remove the checkout area and tills with a helpdesk to support anyone who wishes to pay with cash or cards.

 

Meanwhile Argos has also opened its first self-service digital store in Dulwich.  http://tinyurl.com/y534x2q9

Customers pay at the same tablet they use to browse the catalogue’s 20,000 products – removing the need to visit a separate checkout area to pay – before picking up their order at new collection pods. The Pay@Browse areas will also include tills to support anyone who wishes to pay with cash or cards.

 

Smart ticketing is being rolled out at major UK stations. http://tinyurl.com/yxv3osz9

Following recent upgrades, passengers travelling from all major stations across Britain are now able to go paperless, buying smart tickets online or via their smartphones to store on their handset or a smartcard. After further installation of readers at stations around the country and upcoming software updates, the RDG says it expects 90% of tickets to be available for sale to customers as smart tickets.

 

Aer Lingus has announced that its customers will be able to pay for flights on the carrier`s mobile app using Apple Pay. http://tinyurl.com/y2pa4uy9

The Apple Pay solution was delivered as part of Aer Lingus’ new Payments Hub platform in partnership with technology partner Voyego.

 

Aer Lingus is also partnering with Fexco to provide a Travel Money service. http://tinyurl.com/y2cauzbu

Users order their required currency online with home delivery in what is described as a first to market in Ireland.

 

Google Pay is now being supported by Wirecard’s boon in Switzerland and Slovakia. http://tinyurl.com/yxzypx23

 

PFS is now supporting Garmin Pay in the UK. http://tinyurl.com/y4tyus2j

 

Monese has announced that Apple Pay is now available for personal UK and European Monese cards in 11 European countries. http://tinyurl.com/yyrc63lb

The roll-out has been supported by PrePay Solutions.

 

Facebook has announced a series of developments focussing on its payment capabilities. http://tinyurl.com/y5846q6q

On Facebook – Shipping on Marketplace (US only) with users able to pay for their purchases directly on Facebook

On Whats App – A Business Catalog(ue) will be introduced that users will be able to see when chatting with a business..

On Instagram – The Ability to Shop from Creators with users  tapping to see exactly what their favourite creators are wearing and buy it on the spot.

 

ACQUIRING/PROCESSING

NatWest has announced the launch of NatWest Tyl, a new merchant acquiring offer. http://tinyurl.com/y4ccen6a

Alongside straightforward customer on-boarding, simple pricing and next working day settlement, Tyl will provide smart data-led insights to help customers make informed business decisions. NatWest Tyl was developed in partnership with Pollinate International, and First Data as payments processor. It will be available to all merchant acquiring customers later this year.

 

Klarna has announced that all its UK payment options are now available in-store as well as online.  http://tinyurl.com/y6lxplx8

Customers will be able to pay via their smartphones at the till by either scanning a QR code on a retailer’s screen or by being sent an SMS or email with a payment link. The in-store offer will be rolled out “gradually” throughout 2019. Be smooth in store page http://tinyurl.com/y4t4vf59

 

UnionPay International has announced further collaboration with Worldline. http://tinyurl.com/y69ozx3l

The move will enable 46,000 merchant locations in the Netherlands, Belgium and Luxembourg to accept UnionPay cards, increasing UnionPay’s overall acceptance rate in these three countries to 90%.

 

3C Payment is to support UnionPay card acceptance in Europe. http://tinyurl.com/y5uep5oa

 

CASH(less)/ATMs

Cardtronics and NoteMachine are beginning to convert FTU ATMs to a charging model. http://tinyurl.com/yxb7kkj4  Which? http://tinyurl.com/y48axt8m  NoteMachine http://tinyurl.com/y225zvcb

Which? is sounding alarm bells about the speed of conversion and NoteMachine is calling for the reversal of the LINK reductions in interchange.

 

This has been followed by HMT promising to safeguard the future of the 1p and 2p coins. http://tinyurl.com/yyu6o866

A new group (Joint Authorities Cash Strategy Group (JACS)), chaired by the Treasury, is being formed that will bring together regulators and the Bank of England to set strategy, coordinate work to support nationwide access to cash and help safeguard cash for those who need it.

 

Simultaneously HMT has published the government’s response to its Call for Evidence on Cash and Digital Payments in the New Economy.     Responses summary http://tinyurl.com/y49eb76u

 

BIOMETRICS

Santander plans to offer telephone banking customers’ biometric authentication options. http://tinyurl.com/y2oww7mq

The Bank in the UK will give customers the option to verify their identity through a combination of ‘Phone ID’ and biometric ‘Voice ID’ technology. Phone ID technology enables Santander to identify an individual customer through the phone number from which they are calling.  It is also introducing ‘Natural Language’ to routed calls directly through to the relevant team.

 

Nitecrest Group is joining those developing fingerprint activated payment cards. http://tinyurl.com/yxksfhej

The Lancashire based card manufacturer is introducing Biometrics technology into a product offering from its TagNitecrest operation.

 

FRAUD & CYBERSECURITY

Worldpay has released its new FraudSight, its ‘next generation omnichannel fraud solution’. http://tinyurl.com/y24hbnny

Leveraging machine learning, the solution analyses billions of transactions and makes transaction validity decisions for merchants based on a matrix of data points and strategies. Initially this appears to be available only in the US.

 

DIGITAL/RETAIL BANKING

Triodos Bank UK has been granted a UK banking licence. http://tinyurl.com/y6gvtw9m

Triodos Bank has operated in the UK under the EU ‘passporting’ regime and this is a pre-Brexit move to enable continuity for the UK operations. Personal customers and eligible organisations will move from the Dutch Deposit Guarantee Scheme (DGS) to cover under the UK’s FSCS.

 

INNOVATION

Two Speeches from Regulators

Mark Carney – A Platform for Innovation. http://tinyurl.com/y5oybd5m

Christopher Woolard  – Deeds not words: the next stage of the FCA’s innovation journey. http://tinyurl.com/yxqf7bh5

Related PR setting out FCA progress and next steps in promoting innovation in financial services. http://tinyurl.com/y536bjen

 

CROSS-BORDER PAYMENTS

Ria Money Transfer, a subsidiary of Euronet Worldwide, has joined RippleNet. http://tinyurl.com/y2qvlh6a

The move gives Ria access to Ripples blockchain-powered global payments network, providing faster settlement for cross-border transfers.  It will also provide new end-to-end tracking together with improved fee transparency, estimated delivery time and status information.

 

OPEN BANKING & PSD2

The OBIE has published Version 3.1.2 of the Open Banking Standard. http://tinyurl.com/yyy7zmp7

The revised Standard enables enhanced features and functionality, extending beyond basic compliance with PSD2 and RTS regulation and includes updates to the Customer Experience Guidelines (CEGs) and the Operational Guidelines (OGs).

 

The BRC is warning that the SCA process could cost the industry £60bn in retail sales. http://tinyurl.com/yxvwknjk

The BRC are concerned that not enough businesses are aware of its upcoming implementation and has met the FCA, along with the FSB and the Institute of Directors, to discuss a strategy moving forward.

 

The EBA has published two sets of further clarifications to issues raised by its Working Group on APIs under PSD2. Set 2 http://tinyurl.com/y4fckpra  Set 3 http://tinyurl.com/y5m7cote

 

ING in France is opening up its retail payments accounts to external providers via three APIs. http://tinyurl.com/y35oewkf

By 14 September 2019, customers in all 17 ING countries that fall under PSD2 will benefit from this open access. ING’s Developer Portal.

 

CORPORATE ACTIVITY

PayPal is to invest c$500m in the Uber IPO.   http://tinyurl.com/y28sxrpn

The two companies have said the deal would help them work on “future commercial payment collaborations, including the development of Uber’s digital wallet.”  A commentator sees it as “a way for PayPal to build its network beyond what it can build on its own steam, by catching a ride on other high-growth companies to pick up some of their network effects”.

 

Bankable has announced a strategic partnership with Visa that also includes a financial investment in Bankable. http://tinyurl.com/y6pyqgmh

The partnership will allow Visa members to obtain access to Bankable’s Banking-as-a-Service platform to help them deploy digital banking and real-time payment services. No details of the investment have been given.

 

Nationwide Building Society has invested in Ordo, a payment request service. http://tinyurl.com/yydg4tsm

Launching later this year, the platform connects billers to payers using apps and secure messaging; enabling businesses send ‘smart requests’ for payment directly to their customers via the Ordo app. The investment has been made via NBS’s a £50m Venturing Fund. No details have been given.

 

Checkout.com has raised $230m in Series A funding round. http://tinyurl.com/y3wq2747

In what is claimed to be Europe’s largest fintech round so far, and globally the third largest fintech Series A round, the funding will be used to continue the growth of Checkout’s proprietary technology in Europe, the US and the Middle East, with further expansion into Asia and Latin America.

 

REGULATION (Interchange)

The EC has accepted commitments by Mastercard and Visa to cut inter-regional interchange fees. http://tinyurl.com/yxd35b98

The companies will significantly reduce (on average by around 40%) their MIFs for payments in the EEA with consumer cards issued elsewhere. The EC says it is the first competition authority in the world to intervene on inter-regional MIFs.

 

REGULATION (RegTech)

The FCA has announced that 29 businesses have been accepted into cohort 5 of the regulatory sandbox to test innovative products, services, business models and delivery mechanisms.

The OBIE is one of those chosen, enabling it to test Variable Recurring Payments and endure that a VRP model works well for all open banking participants in the ecosystem.  Details http://tinyurl.com/y4b2nycs

 

REGULATION (Competition)

The CMA has provisionally cleared PayPal’s acquisition of iZettle. Summary of provisional findings – has details of the further analysis carried out by the CMA Inquiry Group (some redacted) Press release: CMA provisionally clears PayPal/iZettle takeover

“As a result of this detailed investigation, the CMA has provisionally found that the merger does not raise competition concerns”. Comments are now requested by the Inquiry Group before a final decision is made.

Latest News Round-up

17 May 2019

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The latest ING International Survey indicates Europeans are wary of new technology in banking, despite a high demand.

New technology, such as facial and voice recognition, is giving more options than ever before, but despite these advances, acceptance is far from complete with 65% of Europeans having never used fingerprint or voice recognition to log into their banks’ app.

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