8 November 2019

8th November 2019
  • Digital & eCommerce
  • Acquiring/Processing
  • Recurring Payments
  • Chinese Pays
  • Digital & Retail Banking
  • Fraud & Cybersecurity
  • Open Banking & PSD2
  • Cross-border
  • Open Banking
  • Blockchain/DLT/ Cryptoassets
  • Payment Report
  • Scheme Development
  • Corporate Activity
  • Regulation

 

DIGITAL & eCOMMERCE

The BRC KPMG Retail Index shows total retail sales increased by 0.6% in October, against an increase of 1.3% in October 2018.

Online sales of Non-Food products grew 5.1% in October, against a growth of 7.6% in October 2018. Non-Food Online penetration rate increased from 29.8% in October 2018 to 31.6%.

 

NatWest is now supporting Apple Pay for its business banking customers.

NatWest has launched the new feature across its full range of VISA debit cards.

 

Rabobank is also introducing Apple Pay for its Dutch customers.

 

Curve has added support for Samsung Pay in the UK.

The move means that card holders will be able to use all the Visa and MasterCard cards supported by Curve through Samsung Pay rather than via their own bank app, getting around the paucity of support in the UK for the Samsung offer.

 

Nets is supporting mobile payments for Finnish Savings Bank OmaSp.

Initially OmaSp will be offering Google Pay for their Visa Credit cardholders and will broaden the offering to debit and electron cards in the future.

 

Buy now pay later schemes are causing over a third of UK millennials to experience financial stress.

Hastee’s annual Workplace Wellbeing Study has found that 56% of millennial workers say buy now pay later schemes encourage them to spend money they may not be able to afford.

 

JPMorgan Chase is reported by Bloomberg as having developed an e-wallet.

The wallet enables e-commerce and gig economy firms such as Amazon and Airbnb to offer their customers virtual bank accounts.

While companies will avoid TPP payment processing fees, JPM will benefit from being the sole payment provider for tech companies that offer the eWallet to their customers.

 

Mastercard and Tappy Technologies have announced a strategic partnership to drive fashion wearables.

The two companies will collaborate to enable contactless payments through fashion wearables by embedding their respective technologies into a range of accessories, starting with analogue watches by Timex Group.

 

ACQUIRING/PROCESSING

Nexi and ACI Worldwide are partnering to offer merchant customers of Nexi’s partner banks VAS at POS.

ACI’s UP Retail Payments solution will be utilized by Nexi to provide new, innovative services for its 1.4m POS terminal estate. The VAS Layer Platform will enable Nexi to centralise onboarding and distribution of all existing and future VAS services, allowing merchants to offer services such as the processing of company meal vouchers, loyalty points, etc.

 

RECURRING PAYMENTS

GoCardless is launching a global network designed specifically for borderless recurring payments.

The new network claims to bring together bank debit systems from around the world for the first time. It will use TransferWise to provide the foreign exchange capability to enable funds settlement in a user’s home currency. The development enables GoCardless customers to collect and payout payments across 30+ countries globally, representing over 70% of global recurring payments volume.

 

CHINESE PAYS

Visa welcomes Tencent’s announcement that it intends to support international card schemes in its mobile wallet.

Visa says Tencent’s announcement is “a great step forward, both for consumers traveling abroad to China and the overall payments industry.” I have been unable to track down an English version of the announcement but see WeChat Pay to allow international cards for mobile payment.

 

Meanwhile Alipay has also announced it is working on a workaround using a prepaid card from Bank of Shanghai.

Non-Chinese visitors can download the Alipay app and use the ‘Tour Pass’ feature to use the pre-paid card they have loaded with yuan to pay using QR codes.

 

Worldline is adding WeChat Pay to its payment solution in Switzerland.

 

UnionPay International on the level of international card issuance and their use by attendees at an Expo in China using local apps.

UnionPay cards issued outside mainland China have reached over 120m, albeit few in Europe, it is now accelerating the issuing of Commercial Cards with 700,000 issued in 13 countries including Portugal (Millenium Bank), Russia and Kenya. Exhibitors at the China International Import Expo are encouraged to take advantage of UnionPay’s mobile payment service using e-wallets based on UnionPay technologies.

 

DIGITAL & RETAIL BANKING

Marqueta has released a survey report examining how consumers are engaging with banking services in 2019.

Only 23% of UK consumers say they would be inconvenienced by all physical bank branches closing, suggesting that approaching three-quarters are happy to conduct their banking remotely. More than half of UK consumers use some form of digital banking service alongside their traditional bank.

 

FRAUD & CYBERSECURITY

Pay.UK has responded to the Treasury Select Committee’s report on Fraud (See 01/11), supporting underpinning legislation for CRM.

 

OPEN BANKING & PSD2

Open Banking Europe has announced the launch of the OBE PSD2 Transparency Directory,

The directory contains information about PSD2 and Open Banking APIs. The transparency directory currently contains information on over 1,500 developer portals of banks; information about other banks and financial institutions will follow in the next six months.

 

Mobey Forum and Aite Group have published the results of an online quantitative survey on Open Banking

The report reveals how interested consumer are in five open banking services: Account Information, Pay by Bank, Product Comparison, Purchase Financing, and Identity Check. The research clearly indicates that when it comes to financial services, trust is extremely important, with those not interested in the services indicating security concerns as the main reason. Consumers strongly prefer their main bank to provide such services over other providers.

 

CROSS-BORDER

SWIFT has started the process of migrating EURO1 to the ISO 20022 standard in partnership with EBA CLEARING.

The migration is planned to be complete before the November 2021 deadline, aiming to minimise market participants’ efforts during the transition and simplifying intra-day switching between both euro payment systems.

 

BLOCKCHAIN/DLT/CRYPTOASSETS

The Council of the EU has published a draft Joint Council and Commission Statement on the recent developments related to Stablecoins.

The statement highlights that global stablecoin projects require a global response and should not come into operation in the EU until the related risks and concerns are properly addressed.

 

PAYMENT REPORT

DeloittePayment trends 2020.

Deloitte expects 2020 to be about the formulation of “big bets” in the payments space and sees five emerging trends driving change, presenting challenges, and creating opportunities. The paper looks at what implications could these trends, collectively, have for payments companies over the next year and what new stakeholder strategies and actions might be taken in response?

 

SCHEME DEVELOPMENT

Reports are surfacing of a Pan European Payment System Initiative (PEPSI).

Twenty European banks are said to be involved with discussion for a European scheme with a decision to be taken soon as to whether to take development to the next stage of a feasibility study.

 

A Deutsche Bundesbank Speech – Curtain up for the future of payments: from Bigtechs and Fintechs to Smartphones and Stablecoins makes a reference to PEPSI, albeit not by name, confirming discussions are taking place.

 

CORPORATE ACTIVITY

GoogleHelping more people with wearables: Google to acquire Fitbit

Google says it has made progress with partners in this space with Wear OS and Google Fit, but sees an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market. The EU has expressed competition concerns about the deal.

 

Santander acquires a majority stake in UK fintech Ebury for £350m.

The investment, which fits Santander’s digital strategy of accelerating growth through new ventures, will strengthen its Global Trade Services offer. The SME focussed provider of foreign exchange and international payments services will continue operating as an independent unit. The new funds will be used primarily to support Ebury’s plans to enter new markets in Latin America and Asia.

 

SIA equity stakes have changed hands as CDP Equity and FSIA Investimenti (Government sponsored investment vehicles) strengthen their holdings.

The very complicated deal, which sees the acquisition of the shareholdings in SIA of F2i, HAT, Intesa Sanpaolo and UniCredit and leaves less than 20% of the company with Banco Bpm, Intesa Sanpaolo, Unicredit, Mediolanum and Deutsche Bank, will support CDP’s desire to develop SIA in the payments environment as a serious Italian and European player

 

Wirecard is investing in a comprehensive license portfolio for digital payments through an acquisition in China.

Wirecard will gradually acquire all shares in the Bejing-based AllScore Payment Services. On completion Wirecard will hold 80% of all shares in AllScore. A call option enables Wirecard to acquire the remaining 20% of shares after two years.

 

REGULATION (EU VAT)

The EC Council has published the General Approach on Transmission and exchange of VAT-relevant payment data.

In response the Financial industry against VAT fraud: has published a joint position paper. The four industry bodies, while supporting the fight against VAT fraud, do not like the proposals as set out in the draft Directive, particularly they see them as disproportionate in terms of scope, volume of data required and cost. The EU is said to have largely dismissed the concerns and recommendations of the industry’s representatives.

 

REGULATION (Brexit)

FCA Policy Statement – Brexit – Regulatory Technical Standards  for SCA.

This policy statement PS19/26 confirms the regulatory technical standards for strong customer authentication and common and secure open standards of communication, which will apply in the UK, in the event of a no-deal exit by the UK from the EU.

Latest News Round-up

8 November 2019

Industry Videos

Dutch cashierless store trial

ING is working with supermarket chain Albert Heijn and US AiFi on a cashierless store trial.

Users gain access by scanning their debit card, with cameras and ‘smart shelves’ tracking purchases and automatic payment on exit. Similar to Amazon Go but does not require an app.

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