Weekly Headlines 24 January 2020

24th January 2020

ONS Retail Sales December

UPI/PayPal partnership

Visa UK ‘access to cash’

Deutsche Bank on Cash

UK ‘digital-only’ conversion

N26 milestone

BIS digital currency survey

Libra developments

 

 

ONSRetail sales, Great Britain: December 2019.

Internet sales increased by 5.6% in yoy. Online sales as a proportion of all retailing stood at 19.0%.

 

UnionPay International and PayPal have announced a global partnership.

The two parties will work together to accelerate the growth of their networks with PayPal committed to supporting UPI acceptance globally where PayPal is accepted. In the future, UPI will explore opportunities to support PayPal’s merchant and consumer ambitions in China.

 

Visa is launching an industry-wide ‘access to cash’ scheme with its UK partner banks.

The aim is to incentivise retailers to offer cashback in areas of the UK where consumers currently struggle to access cash. The new initiative will incentivise shops and businesses to offer cashback to consumers using their Visa debit cards.

 

Deutsche BankThe Future of Payments – Part I. Cash: the Dinosaur Will Survive … For Now

When people discuss the future of payments they tend to predict the end of cash. Our view is different. Not only do we think cash will be around for a long time, we see the transition to digital payments as having the potential to do no less than rebalance global economic power.

 

YouGov says Tracker data suggests fewer than one in ten in the UK have gone “digital-only” for their banking.

The data indicates only 8% are using mobile-only banks to manage their money, and 35% don’t use mobile banking to interact with their main provider at all. For those that do, 53% use their bank or building society’s app with 48% using online banking services. Only 5% now use telephone banking.

The most popular consumer banks in the UK puts Monzo in 32nd place.

 

N26 has announced it has reached a 5m customer milestone.

The Mobile Bank says it grew its global customer base by more than 2x in 2019.

 

The OBIE has announced that Open Banking adoption has passed one million customers.

The OBIE says the growth in customers of the CMA9 has doubled in six months. OB customers generate over 200M monthly calls, supported by over 200 active service providers.

 

The OBIE has also published the Open Banking 2019 Highlights. Review

There are now 204 regulated providers made up of 134 TPPs and 70 account providers, with 61 regulated entities that have at least one proposition live with customers.

 

BIS PaperImpending arrival – a sequel to the survey on central bank digital currency.

Research and experimentation on central bank digital currencies continue to fuel discussion and debate. This BIS paper updates an earlier survey that asked central banks how their plans in this area are developing. The latest responses show emerging market economies reporting stronger motivations and a higher likelihood that they will issue digital currencies, with central banks representing a fifth of the world’s population reportedly likely to issue very soon.

 

Vodafone Group is no longer a member of Facebook’s Libra Association.

Vodafone says it remains committed to contributing to extending financial inclusion but “feel we can make the most contribution by focusing our efforts on M-Pesa”.

 

UK Supreme Court – The Court is hearing the appeal of Sainsbury’s Supermarkets Ltd v Visa Europe Services LLP & Ors all this week.

The appeal is considering whether the Court of Appeal erred in law in finding that the multilateral interchange fees at issue amounted to a restriction of competition in the acquiring market.

You can watch the proceedings live at

Sainsbury’s Supermarkets Ltd (Respondent) v Visa Europe Services LLC and others (Appellants)

 

Reuters reports that Eurazeo SE, a French private equity firm, is in talks to sell Planet Payment Ireland Limited.

The transaction could be valued at €2bn (US$2.21bn).

 

Industry Videos

Pay.UK short video covering the way it is working to develop  common standards for UK payments.

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