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Most UK consumers still want the option to pay in cash
The majority of UK adults value being given the option to pay in cash, according to latest research by LINK, the UK’s cash access and ATM network.
Whilst contactless card and mobile phone payments represent the most the popular ways to pay (42% of adults stated a preference for contactless card payments, and 24% for digital wallets such as Apple or Google Pay), 81% of adults think that being given the choice to pay in cash remains important.
APP Scam Protection Review and Consultation
Today (4 September 2024) the Payment Systems Regulator (PSR) announced a review of high value scams - and held firm on the 7 October 2024 implementation date.
When the PSR published its requirements for payment firms to reimburse APP scams victims in December 2023, it committed to consider high value APP fraud claims and publish the findings.
The PSR’s review found that – out of over 250,000 cases - there were 18 instances in 2023 of people being scammed for more than £415,000, and 411 instances of more than £85,000.
The analysis also highlighted that almost all high value scams are made up of multiple smaller transactions, reducing the effectiveness of transaction limits as a tool to manage exposure.
The PSR state that they have considered additional evidence from the industry and FCA about the maximum liability amount.
Having considered the findings and evidence provided, the PSR is now consulting on a new cap. If confirmed, this would bring the cap in line with the Financial Services Compensation Scheme (FSCS) limit which is currently £85,000 and well understood by consumers.
This would still ensure enhanced consumer protections against APP scams, with clear incentives on financial firms to continue doing all they can from preventing fraud from happening in the first instance. The previous maximum reimbursement value had been set at £415,000, in line with the Financial Ombudsman maximum reimbursement limit at that time.
The PSR state that the proposed new cap will still see over 99% of claims (by volume) covered. The PSR’s measures to protect people against APP fraud and make sure victims get their money back remain stronger than anywhere else in the world.
The regulator has also committed to keeping this under consideration through its post-implementation review.
The PSR state that it fully expects all firms to meet their obligations as responsible providers and will continue to follow up with all firms to support this.
We listened to concerns about the reimbursement limit and committed to collecting more evidence to inform our approach. As a result, we are now consulting on a limit that still covers the vast majority of authorised push payment scams and strikes the right balance. Under our proposals, consumers in the UK will still receive world-leading protection, payment providers will still be heavily incentivised to improve anti-fraud protections and we maintain effective market competition and innovation.
David Geale, Managing Director, PSR
According to the PSR, Pay.UK, which operates Faster Payments, the payment system to which the protections apply and through which most APP fraud flows, has confirmed it will be ready for 7 October.
The consultation on a reduced reimbursement cap closes on 18 September. The PSR will consider the responses carefully and confirm its final approach before the end of September.
Nearly £60 million stolen in card fraud in past 3 years
Almost £60 million has been reported stolen through card fraud over the past three years in the UK according to new research from Trustly, the global leader in open banking payments. The figures were obtained by Trustly via a freedom of information request sent to the National Fraud Intelligence Bureau run by City of London Police.
£58.9 million of credit, store and debit card fraud reported to the police in the UK between 2021 and 2023 – equivalent to £1.7 million per month
Almost 11,000 victims of card fraud in the past three years, including 3,543 in 2023 - this equates to almost 300 victims per month last year.
More: Trustly: Nearly £60 million stolen in card fraud in past 3 years.
Women in Alliances Annual Summit: Helping women in Partnerships, Channel, and Alliances build their careers
Payments:Unpacked are pleased to be a sponsor of the 2024 Women in Alliances Annual Summit. Whether you currently work in an Alliance/Partnership role or aspire to do so, this dynamic online event is tailored just for you.
📅 15th October 2024, 🕑 3pm BST / 10am EST / 10pm SGT
National Payments Vision and Strategy
This exclusive event Payment Leaders Summit brings together top payments executives for thought-provoking discussions and valuable networking.
Expect in-depth sessions on pressing industry issues and real-world challenges, as well as having the opportunity to participate in intimate roundtable discussions with peers from leading companies, at the stunning Landmark Hotel.
I’m excited to announce that I’ll be speaking at the Payments Leaders’ Summit UK, this October at the Landmark Hotel in London!
Join me on the 15th and 16th October by registering for a complimentary spot today! https://invt.io/1lxbks7zgle
ISO20022: Going Native
In brief
Mastercard and Visa to face multi-billion pound lawsuits over interchange fees on UK businesses.
Revolut is rolling out dedicated crypto payment cards for spending on everyday items.
Federal Reserve governor Christopher Waller has cautioned against the clamour to interlink national fast payment systems, insisting that the US is focused on building up its FedNow network domestically.