Weekly Headlines 21 August 2020

21st August 2020

EC approves Nets/Mastercard deal with conditions

ECB issues Card Fraud Report

EBA AML response to EC

Samsung launches Samsung Pay card

Transferwise extends issuing capability

Square on pandemic impact in UK

Amex to acquire Kabbage

Railsbank discussing WCS acquisition

 

The EC has approved the proposed acquisition of Nets’ account-to-account payment business by Mastercard subject to conditions.

The decision is conditional on the transfer of a license for Nets’ “Realtime 24/7” technology for account-to-account core infrastructure services to a suitable purchaser, as well as of the relevant personnel and other assets. The condition has been imposed as the EC investigation deemed the merger, as originally notified, would have significantly reduced competition in the market for A2A CIS services and undermined the development of new real-time payment solutions.

 

ECB Sixth Card Fraud Report    Report

The sixth report analyses developments in card payment fraud with a particular focus on 2018 data in the context of a five-year period from 2014 to 2018. It is based on data reported by the card payment schemes in the euro area with a breakdown per SEPA country.  The total value of fraudulent transactions using cards issued within SEPA and acquired worldwide amounted to €1.80 billion in 2018. As a share of the total value of card transactions, fraud increased by 0.002% points to 0.037%.

 

The European Banking Authority has published its response to the EC’s Action Plan for AML and CFT.

In its response, the EBA sets out technical points that policymakers should consider when deciding on the scope and powers of an EU-level AML supervisor. These include harmonising the EU’s legal framework, building a hub and spoke approach and leveraging the EU’s existing AML/CFT infrastructure.

 

Samsung Pay is issuing the Mastercard branded Samsung Pay card.

By utilising Curve’s technology, Samsung Pay Card users will be able to amalgamate all their UK Visa and Mastercard cards to gain a single view of all their transactions via the Curve App on their Samsung smartphone or smartwatch.

 

TransferWise is expanding its partnership with Mastercard to grow its global card issuance.

The new expansion will enable the issuance of cards in any market around the world where Mastercard is accepted and TransferWise is licensed, adding to the 1 million cards already issued. Transferwise is also leveraging Mastercard Send in Europe and Russia.

 

SquareCash and the Pandemic

Square has analysed its merchant data from the UK to determine how the pandemic has affected payments preferences. A large rise in CNP up to April is now seeing a steady decline but there has been a large increase in the percentage of business that are now cashless (8% pre-Covid to 31% in July) with only 23% of payments now in cash (down from 45%).

 

American Express has announced that it has entered into an agreement to acquire substantially all of Kabbage.

Amex says the transaction represents an important step toward its goal of being an essential partner to small businesses through a broad range of payment, cash flow and financial management tools. Under the deal Amex will acquire Kabbage’s team and its full suite of financial technology products, data platform and IP but not Kabbage’s pre-existing loan portfolio.

 

Railsbank reported as lined up to acquire WCS business.

Sifted is reporting that Railsbank is to acquire WCS’ remaining assets, clients and a number of employees with a November completion.  Wirecard has confirmed in a statement that the company was in “discussions” with Railsbank but added “no final transaction documents have yet been agreed”.

 

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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