On solid foundations: building on SEPA’s groundwork
As the SEPA deadline has come and gone, what will be built upon its advances towards digitisation and standardisation?
Payments
Aussie Central Bank Eyes Amex Regulation (Sept. 2, 2015)
Australia’s central bank may begin regulating American Express cards in the country, putting at risk the generous rewards points cardholders earn on so-called “companion cards”— credit card accounts linked to two different credit card networks, thus enabling cardholders to earn the benefits of whichever one they choose to use at the point of purchase.
India Resumes Development of National Prepaid Transit Card (Sept. 2, 2015)
New Delhi’s Urban Development Ministry this week announced it’s reached an agreement for a consortium of agencies to begin developing an interoperable payment card with a prepaid feature for POS purchases and public transportation that eventually could be used with different transit systems across India.
Flipkart Buys Stake in FX Mart, Gains Access to Prepaid License (Sept. 2, 2015)
Flipkart, one of India’s largest e-commerce companies, has acquired a majority stake in payment services platform FX Mart Pvt. Ltd. for Rs. 45.4 crores (roughly US$6.9 million).
PayPal.Me Links Users to New P2P Approach (Sept. 1, 2015)
PayPal more or less invented P2P payments with its core service enabling individuals to pay one another via email through various funding sources. Now it’s introduced a URL-based approach.
Samsung Pay’s Launch in Korea Drives Brisk Business (Sept. 1, 2015)
Samsung Pay is off to a brisk start in Korea after its launch there Aug. 20, about five weeks ahead of the mobile payment service’s pending debut in the U.S. on Sept. 28, but it’s nowhere near Apple Pay levels, which hit 1 million registered cards in the first 72 hours.
Second Federal Agent Pleads to Stealing Bitcoin in Silk Road Case (Sept. 1, 2015)
A former Secret Service agent involved in the investigation against the Silk Road online marketplace has pleaded guilty in federal court to pilfering nearly a million dollars’ worth of bitcoin during the investigation.
Contactless payments set to boom as limit rises to £30
More than £2.5 billion was spent in the UK using contactless cards in the first half of 2015 and this is likely to increase even more as the upper limit for contactless payments increases from £20 to £30 from today.
Company on the Move: Fiserv Inc., Aite Group Award
Fiserv Inc., a global provider of financial services technology solutions, announced that it has received a vendor award for outstanding performance of anti-money laundering (AML) solutions by Aite Group as part of its “2015 Global AML Vendor Evaluation.”
DOE Rebuffs Input from Legislators (Aug. 31, 2015)
U.S. lawmakers keep trying to influence how the U.S. Department of Education handles a proposed rule on campus cards that deliver financial aid dollars. And, the DOE continues to say, “Thanks, but no thanks.”
NAB Readies M-POS Launch at Apple Store; CurrentC Promises National Coupon Deals (Aug. 31, 2015)
Dangling $5,000 in free Apple Pay transaction processing for merchants, North American Bancard will launch a new EMV-ready m-POS card reader next month at the Apple Store, while MCX says CurrentC is on the verge of a public pilot in Ohio that will include redemption of national manufacturer coupons.
Fuel Discounts Turbocharge Loyalty Programs (Aug. 31, 2015)
Fuel savings are considered the most valuable reward by consumers enrolled in loyalty programs, beating out coupons, airline miles and even cash back, a new survey reveals.
Ingenico Reportedly a Bidder for Worldpay (Aug. 31, 2015)
Another company has entered the field of players vying to acquire Worldpay Ltd.
Payments UK sets out four point focus for ‘world’ class services
The UK payments industry and regulators should focus on four main priorities to ensure the country has a ‘world class’ payments framework, according to Payments UK.
Blackhawk Research: Speed, Convenience Drive E-Gifting
Digital gifting continues to make inroads, with more than half of consumers surveyed by Blackhawk Network reporting the purchase of an e-gift over the previous year.
Report: Wirecard Bids $9.4B for Worldpay (Aug. 27, 2015)
Paybefore Award-winning Wirecard, an independent global provider of outsourcing and white-label solutions for electronic payments, reportedly has thrown its hat into the ring to acquire Worldpay Ltd. for £6 billion (US$9.4 billion).
Court Upholds FTC’s Authority to Protect Consumer Data (Aug. 27, 2015)
A U.S. appeals court this week determined that the FTC has authority to regulate corporate cybersecurity and can pursue a lawsuit against hotel operator Wyndham Worldwide Corp. for allegedly failing to properly safeguard consumers’ information.
Execs Need Hands on Approach to Data Security, Says Report (Aug. 27, 2015)
Amid the threat of increasingly sophisticated cybercrime and heightened scrutiny by regulators, a new report urges retail and financial services CEOs and board members to take an active, involved role in improving their firms’ safeguards.
Commercial lending and supply chain finance under pressure from non-bank players
Digitally enabled supplier finance networks and alternative lenders now pose a significant threat to every part of the commercial lending business, with 84% of banks seeing pressure on the pricing of loan products as a challenge.
Texas Merchants Continue to Fight State’s Surcharge Law
Surcharges vs. discounts.
One-Sided Gift Card Arbitration Clause May Be Unconscionable in California
Changing terms of an agreement.
Judge Denies Bid by Citi, First Data to Reconsider Liability Cap in Data Breach Case
Three-party agreements causes problems.
N.Y. and Texas AGs Request RadioShack to Notify Gift Card Holders
Rights of gift card holders.
Dave & Buster’s Faces Class Action over Gift Card Practices
Redeeming for dollars.
Viewpoint: A Regulatory Snapshot for Payment Services and E-Money in Europe
Payment opportunities in the EU come with complex requirements, which is why it’s important to understand the ever-changing legislative issues.
Brazil’s Elo Goes Global with Discover Partnership (Aug. 25, 2015)
Elo, the largest Brazilian credit card brand, is accepted in more than 1.65 million domestic locations.
Rumors Swirl as Countdown to Android Pay, Samsung Pay Launches Near (Aug. 25, 2015)
Google Inc. in May said Android Pay would launch “soon,” and this week notifications surfaced at some McDonald’s stores suggesting the rollout could come as early as this week.
PayPal Kicks off First Post-Spinoff Buy with Modest (Aug. 24, 2015)
PayPal’s purchase last week of Chicago-based Modest—its first acquisition since its spinoff from eBay—could be the beginning of a major shopping spree.
NYDFS: BitLicense Applications Show ‘Substantial Interest’ (Aug. 24, 2015)
Less than three months after New York State’s Department of Financial Services finalized the U.S.’s first state-level framework for licensing digital currency companies, nearly two dozen firms have applied for the so-called BitLicense, the agency said.
The Clearing House Calls for Level Playing Field for Banks, Alternative Payment Providers (Aug. 24, 2015)
The Clearing House (TCH) is calling on regulators to increase data security oversight for alternative payment providers, such as Apple, Google, Square and Venmo, which the bank-owned TCH says are not being held to the same regulatory standards as major banks, according to a new white paper.
Reserve Bank of India Grants Payments Bank Approval to Create Access for Citizens (Aug. 24, 2015)
The Reserve Bank of India has granted approval to 11 companies to set up payments banks in an effort to grant millions of Indian citizens access to basic banking features. Companies receiving approval included telecoms, tech firms and the post office.
A different banking landscape
Historically, the large banks have been Lords of the Manor, between them owning every scrap of land as far as the eye can see. However, times are changing: invaders offering services the banks cannot provide as competitively have begun to disrupt the peace and take small pockets of land for themselves. Likening the march of the fintech new entrants to a land-grab by an invading force, the disruptors began with a neglected allotment here and there, then moved to take a meadow and now some are on the verge of swallowing up villages and small towns …
Viewpoint: Emerging Payments Vs. Legacy—It’s Not Either/Or
We recently surveyed more than 1,000 Americans about their payment preferences. The key trend that emerged: Traditional and emerging payments tools are being used together, not cannibalizing each other.
Viewpoint: Bitcoin: Take Charge of Your Destiny
Like it or not, the bitcoin craze is here to stay. Over time, bitcoin will be a major disruptor in payments—with broad implications for governments, businesses and consumers. Burying your head in the sand is not an option.
Amex’s Serve Introduces Cash-Back Rewards for Everyday Spending on GPR Card (Aug. 19, 2015)
American Express Co. today introduced the option for Serve GPR cardholders to earn 1 percent cash back on all purchases, a move analysts say is likely to intensify competition in the GPR category.
QIWI Integrates payWave into Visa QIWI Wallet (Aug. 19, 2015)
Building on a contactless payments boom in Russia, Visa and Russian payment services provider QIWI have integrated Visa’s payWave contactless technology into the Visa QIWI Wallet, providing millions of users with a new mobile payment option at contactless terminals.
High Price Tag for Mobile Shopping Cart Abandonment (Aug. 19, 2015)
Mobile commerce providers and retailers left a potential $24.5 billion in revenue on the table because of user experience issues, according to a new report from Jumio Inc.
Mobile to take lead in payments over the next five years
Mobile phones will take an increasingly leading role in the payments space over the next five years as a result of technologies that allow safe storage of payment details in smartphones, according to a report prepared by the Consult Hyperion on behalf of Payments UK.
Company on the Move: Rakuten Inc., New Tech Research Centers in Boston, Singapore
Tokyo-based Internet service company Rakuten Inc. has announced the opening of two international branches of the Rakuten Institute of Technology in Singapore and Boston.
Target and Visa Finalize Deal to Settle Data Breach Costs (Aug. 18, 2015)
Target Corp. has reached a deal with Visa Inc. to reimburse credit and debit card issuers for costs incurred following a massive data breach disclosed during the 2013 holiday shopping season that exposed personal data of more than 100 million consumers.
