7 December 2018

7th December 2018
  • Mobile/Contactless and omni-Commerce
  • Cash(less)
  • Cross-Border payments
  • Acquiring/Processing
  • Issuing
  • Instant Payments
  • Digital/Retail Banking
  • Identity
  • Open Banking
  • UK Payments Infrastructure
  • Blockchain/DLT/Cryptocurrencies
  • Corporate Activity
  • Big Data
  • Litigation
  • Regulation

MOBILE/CONTACTLESS and omni-COMMERCE

MasterCard research indicates m-Commerce now accounts for one quarter of spending in Europe. http://tinyurl.com/yaznxega

In the UK only 43% of all money spent (volume) is done physically in stores (the lowest percentage in Europe), while all online commerce accounts for more than half. The UK is followed closely by Germany and Hungary at 44% with the Netherlands highest, apart from Russia 59%, with 57%.

 

Google Pay is now available to UniCredit’s customers in Italy. http://tinyurl.com/y7yop32t

UniCredit claims it is the only bank in Italy to provide its clients with all four major mobile payment services.

 

Danske Bank has also announced that it is supporting Google Pay in Ireland. http://tinyurl.com/ycja2xa6

Danske claims it is the first of the big four Northern Ireland banks to support the main contactless payment services currently available.

 

El Corte Inglés has entered an agreement with Alibaba Group that will explore new business opportunities within a “digital retail” and omnichannel common framework. http://tinyurl.com/ycdvt2hj

The two companies have agreed to explore a number of cooperation initiatives in order to progress their respective omnichannel plans by combining and getting the best of both physical and online worlds including the possible expansion of the existing agreement with Alipay.

 

MediaMarktSaturn is launching MishiPay Scan, Pay, Leave service in Hamburg. http://tinyurl.com/y7tm9v5k

The deployment follows an initial trial in Innsbruck and enables shoppers to choose from more than 100,000 products, scan the barcode and pay with their phone.  https://mishipay.com/

 

Mastercard and Next Retail Concepts along with Fred Segal are trialling a new digital virtual environment that lets shoppers browse and buy as if they are in a physical store, across any browser. http://tinyurl.com/y79b7ns6

 

CASH(less)

Travelex research indicates there are an “immovable 24%” of consumers that refuse to go cashless. http://tinyurl.com/y7x5rmn7

The study, which covers the UK, Australia, Brazil, and South Africa, says that in the UK c80% of people are comfortable using cash. Overall the findings suggest that cashless technologies will not replace cash completely; instead people are happier with an equilibrium between the two.

 

CROSS-BORDER PAYMENTS

SWIFT is to begin piloting an integrated pre-validation gpi payments service with 14 major banks. http://tinyurl.com/ycde4u99

A real-time API-based mechanism will enable sending banks to send and receive API calls over SWIFT to check beneficiary account information with the ultimate receiving banks.

 

Metro Bank has enhanced its mobile app by adding international payments. http://tinyurl.com/ybejlfcv

The new service enables customers to make same day SWIFT and next day SEPA payments in Euros, US dollars and Sterling to more than 38 countries.

 

ACQUIRING/PROCESSING

PPRO Group is integrating the Zapp developed  Mastercard Pay by Bank app solution into its payment platform for UK merchants. http://tinyurl.com/y8c43tjg

The partnership will be marketed to PPRO’s and Mastercard’s individual customer bases and will offer fast, easy and secure online payments via consumers’ preferred mobile banking apps. Barclays Pingit remains the only app to have it available.

 

It is also partnering with Nexi in Italy to integrate Alipay and WeChat Pay into its e-commerce payment gateway XPay. http://tinyurl.com/y8htpehd

 

Wirecard is expanding its collaboration with Wizz Air by offering payment processing services in addition to acquiring services. http://tinyurl.com/yaeh7lou

The services will be delivered via the IT platform of Navitaire, an Amadeus enabling a seamless booking experience and access to the Amadeus Xchange Payment Platform.

 

ISSUING

UnionPay International has signed a card-issuing agreement with Portugal’s Millennium Bank. http://tinyurl.com/y9kv9ckm

Portugal will become the 50th market to issue UnionPay cards and the first European local institution that has issued them. Previously only Chinese banks had is issued cards in Europe.

 

INSTANT PAYMENTS

The ECB has gone live with pan-European instant payments – TIPS. http://tinyurl.com/yd5ko4j6

TIPS went live on Friday, 30 November 2018. The first transaction took place immediately, when a client of the Spanish bank, CaixaBank, used TIPS to make an instant payment to a client of the French bank, Natixis. Together with other, primarily Spanish, banks they are the first banks to join TIPS.

 

Yves Mersch speech – TIPS and the future of innovative retail payment solutions in Europe. http://tinyurl.com/y9klrgq4

Another push for the development of a European payments infrastructure and scheme.

 

The Riksbank has announced that it is looking at the possibility of joining TIPS. http://tinyurl.com/ya9kc7je

The results of a consultation has made the central bank conclude that TIPS could be an interesting solution for the Swedish market. If taken forward it would make Sweden the first non-euro country to join the instant payment system. What it might mean for the future of SWISH is unclear.

 

DIGITAL/RETAIL BANKING

Zopa has announced that it has received its banking licence albeit with restrictions. http://tinyurl.com/yblcjm24

Zopa now has to meet conditions set by the regulators, including testing its new products that will include savings accounts and credit cards. All products, including existing personal loans and P2P investment products, will be brought together in a Zopa app.

 

Thought Machine is in the news again with the announcement that IBM Services will be the global preferred implementation partner for Thought Machine’s Vault cloud-native banking platform.  http://tinyurl.com/y9nxtbc7

 

IDENTITY

Mastercard and Microsoft have announced a strategic collaboration to improve how people manage and use their digital identity.  http://tinyurl.com/yc5wdwp4

Mastercard and Microsoft aim to give people a secure, instant way to verify their digital identity with whomever they want, whenever they want via a service that would allow individuals to enter, control and share their identity data on the devices they use every day.

This initiative will serve as the foundation for new Mastercard services powered by Microsoft Azure and built in collaboration with leaders in the banking, mobile network operator and government communities.

 

OPEN BANKING

Open Banking has released Version 3.1 of the Open Banking Standard. http://tinyurl.com/yacwrfz9

This is a minor update to version 3.0 based on feedback from the payments community and provides some enhanced functionality and features to enable PSD2 compliance. Read/Write API Specification v3.1  Dynamic Client Registration Specification v3.1  Customer Experience Guidelines v1.1

 

UK PAYMENTS INFRASTRUCTURE

Pay.UK – New Payments Architecture procurement questionnaire to be made available on 10 December.

The PQQ will set out what is required from potential partners, including response times.

 

BLOCKCHAIN/DLT/CRYPTOCURRENCIES

The French Autorité des marchés financiers (AMF), the Banque de France, and the Autorité de contrôle prudentiel et de resolution (ACPR), have issued a joint press release about the risks involved with cryptoasset investments.

This follows recent reports that cryptocurrency provider KEPLERK had partnered with the French federation of tobacconists, the Fédération des Buralistes, to sell bitcoin. Not only is the market unregulated but KEPLERK “does not have any authorisation or approval by a French or foreign authority”.

 

CORPORATE ACTIVITY

Worldline has completed the acquisition of SIX Payment Services with the attendant changes in SIX’s equity stake.

Worldline http://tinyurl.com/ybyar8zg   SIX http://tinyurl.com/yc6ndwod

As a result of the transaction SIX now holds a 27% equity stake in Worldline and will take two seats in the Worldline Board of Directors. Worldline will continue to operate under the “SIX Payment Services” trade name until further notice.

SIX and Worldline have agreed a long-term processing partnership for Swiss debit and ATM transactions, an IT partnership and a joint-facility in west Zurich.

 

BIG DATA

Speech by Mr Agustín Carstens, BIS General Manager – Big tech in finance and new challenges for public policy. http://tinyurl.com/y85qd8al

Carstens says big data giants such as Amazon and Alipay pose an “existential” threat to traditional banks through the volumes of data which tech companies gather on customers.

 

LITIGATION

Mastercard has apparently reached an agreement with Deutsche Bahn AG to settle its interchange claims before the case got underway in the High Court after consent was given for an appeal to proceed.

 

REGULATION (Interchange)

EC Antitrust: Commission seeks feedback on commitments offered by Visa and Mastercard on inter-regional interchange fees. http://tinyurl.com/y8nabrvd  MasterCard statement expecting $650m hit. http://tinyurl.com/yauo3z33

To address the Commission’s competition concerns, Mastercard and Visa have, each separately, decided to offer commitments that would reduce the inter-regional MIFs by at least 40%. The commitments would apply for a period of five years and six months. A trustee would be in charge of monitoring the implementation of the commitments by the two companies.

The Commission invites all stakeholders to submit their views on the commitments within one month of their publication in the EU’s Official Journal.

 

REGULATION (PSD2)

The EBA has published final Guidelines on the exemption from the fall back mechanism under the RTS on SCA and CSC. There has been no give on the September 2019 deadline. http://tinyurl.com/y9f4mouj Final Report http://tinyurl.com/y93nbwxd

The Guidelines aim at providing clarity to ASPSPs and national competent authorities (CAs) regarding the elements that should be considered for the purpose of an exemption. The EBA has amended the draft Guidelines in a number of areas. In particular, as regards the involvement of TPPs in the exemption process, the EBA clarified that, for the purpose of the exemption, ASPSPs will need to show TPPs’ involvement in the design and testing of their dedicated interfaces and provide the CA with the feedback they received from TPPs that have participated in the testing, together with an explanation of how the ASPSP has addressed any issues identified during the testing.

 

The PSR has signed a MoU that sets out how it will work with other EU authorities to monitor the IFR and RTS Regulation. http://tinyurl.com/y9db4dlk  MoU http://tinyurl.com/ya2ne66u

The MoU may be signed by all National Competent Authorities of the European Union but there is no obligation on any eligible CA to join. Currently there are 8 signatories including the UK (first to sign) the Netherlands, Denmark, Finland, Czech Republic, Belgium, Lithuania and Italy. The PSR will be monitoring its involvement in the MoU in light of ongoing EU withdrawal negotiations.

 

REGULATION (Competition)

The CMA is to launch an in-depth Phase 2 merger investigation into the PayPal/iZettle deal.  http://tinyurl.com/y8rzcro7

The referral results from PayPal choosing not to offer proposals to address the CMA’s previously expressed concerns.

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