Welcome to issue 68 of Payments, Payments, Payments, my newsletter centres on getting to grips with the UK’s retail payments landscape with exclusive payment insights, hot topic briefings and fundamentals unpacked.
“A week is a long time in politics”
Attributed to British Prime Minister Harold Wilson in the mid-1960s.
This week’s newsletter also suggests that a week is also a long time in payments.
However, as far as payments are concerned, I’d disagree with the Liberal politician Joseph Chamberlain who is recorded in 1886 as having said:
In politics, there is no use in looking beyond the next fortnight.
If you enjoy Payments, Payments, Payments please spread the word! It really makes a difference when you recommend this newsletter to others.
This week we start with a highly recommended podcast from Bottomline:
Confirmation of Payee: Why it’s as important for your bank as it is for you.
Catch the latest Payments Podcast from Bottomline where Olivia Armstrong unpacks the latest developments within the Confirmation of Payee name checking service.
Does your bank have confirmation of payee in place?
Whether it’s a small tick, or a logo, the fact your bank confirms the sort code and account number match is as important for your payment as it is for them. Authorised push payment (APP) fraud is a scam where the victim is tricked into making large bank transfers to an account posing as a legitimate payee, and the cost of this fraud is usually covered by the banks.
This episode on the Payments Podcast reviews how CoP is impacting not only the top 6 banks, but the challenger banks in the market, and where the future lies for this regulation.
Bottomline Podcast: CoP: Why it’s as important for your bank as it is for you.
Regular giving: Navigating times of crisis
The first wave of Covid-19 shocked and galvanised us.
An unprecedented situation for all, amidst the challenges to fundraising, health, finances, and freedom of movement it presented, it also inspired incredible levels of community action and giving of all kinds.
In this second period of lockdown not for profits will need to work harder and smarter to keep supporters engaged and donations coming in.
So what does this mean for regular giving?
The 2019 CAF UK Giving report showed that people donated £10.1billion in 2018, 33% of whom gave via Direct Debit or Standing Order.
Rapidata’s latest Charity Direct Debit Tracking Report looks at the latest trends in regular giving through the pandemic, how supporters are still giving and what not for profits can do to protect this income stream.
More and to download the Rapidata report visit: Navigating times of crisis.
Safe and free alternative to cash and cheques for the UK’s community of helpers
As we settle into Lockdown 2.0 with people barely recovered from Lockdown 1.0, it’s likely that more people will need to stay at home with suspected Coronavirus symptoms, whilst waiting for test results or having been notified by the government’s test and trace system.
All this is only sustainable if people can keep up with the essentials like booking online grocery shops and with the generosity and good spirit of neighbours and volunteers picking up that extra pint of milk and to fill in gaps between delivery availability.
Ordo’s request for payment service means people can pay each other back, instantly and securely, from a few taps on their phone rather than sharing bank account details.
Ordo is free for consumers to use, and it is the most secure, easy and efficient payment method out there for just such a crisis.
Learn more about Ordo: https://ordohq.com
Try Ordo for free: https://www.myordo.com/landingPage
Request to Pay
What is Request to Pay (RtP)?
RtP is a messaging service that has been created to complement existing payments infrastructure and gives billers the ability to request payment for a bill rather than simply sending an invoice.
For each ‘request’, customers will be able to pay in full, pay in part, ask for more time, communicate with the biller, or decline to pay.
What is Request to Pay: Unpacked?
Request to Pay: Unpacked helps you get to grips with the UK’s new service that provides the ability to request payment for a bill – the newsletter delivers exclusive insights, hot topic briefings and unpacks the fundamentals of the new overlay service.
The Request to Pay: Unpacked newsletter launches soon – pre-register so you don’t miss the first issue:
OBIE launches consultation on recurring payments
The Open Banking Implementation Entity (OBIE) has launched a consultation on variable recurring payments rules.
The organisation, which was established in 2016 by the Competition and Markets Authority (CMA) to implement the infrastructure and Application Programming Interfaces (APIs) necessary for the roll out of Open Banking.
The consultation, which launches today, marks the next step in the development on Open Banking in the UK, the OBIE said.
Variable Recurring Payments (VRPs) allow customers to safely connect authorised payments providers to their bank account so that they can make payments on the customer’s behalf, within agreed parameters that offer more control and transparency than existing alternatives.
Sweeping is the automated movement of funds for a customer between two accounts in their name, usually to help the customer avoid charges or benefit from better interest rates.
The OBIE said that the consultation on the framework will be open to contributions from all interested parties.
The first phase of the consultation process will take place between the November 9th and December 4th 2020.
Developments at Pay.UK, PSR, BoE and HMT
Just as getting to grips with the UK’s retail payments landscape can be a complex and daunting task, keeping up with the developments at Pay.UK, the Payments System Regulator, the Bank of England and HM Treasury can be a difficult and time consuming task.
At the end of last week our premium subscriber edition received a fortnightly round-up of developments at Pay.UK, the Payment Systems Regulator, the Bank of England and HM Treasury.
The latest update included:
Pay.UK: How Request to Pay could change bill paying for consumers, Current Account Switching winners and losers and consumer protection in payments.
Payment Systems Regulator: Access to cash.
Bank of England: ISO 20022.
HM Treasury: Access to cash call for evidence and payments landscape review.
For more: Payments industry developments.
Track the UK’s cash habits with our weekly ATM Tracker.
Five key observations for week ending 8 November:
Sunday’s (1 November) ‘dash for cash’ continued on Monday (2 November) which was the busiest Monday for ATMs since March with £238m dispensed.
The ‘dash’ tailed off after a couple of days and week ending 8 November saw the lowest weekly volume of ATM transactions since early summer – 29.2 million transactions.
The amount of cash being withdrawn per visit is reducing.
ATM volumes remained steady last week but still equate to a 38% reduction compared to 2019.
Cash withdrawn from ATM’s last week has remained at a reduction of 30% compared to 2019.
Cash use for week ending 15 November will be posted early this week - visit: ATM Tracker.
All change at Pay.UK as Paul Horlock, Chief Executive Officer steps down.
Mastercard’s Vocalink has won the contract to build the clearing and settlement infrastructure for Canada’s new real-time payments system.More: VocaLink wins Canadian clearing and settlement system contract.
This month in 1984 the BBC reported that the English pound note was to disappear after more than 150 years. News of the familiar green £1 note’s withdrawal had just been announced by the then Chancellor, Nigel Lawson, when he made his autumn statement in parliament. Mr Lawson said the note – popularly known as a “quid” – would be phased out and replaced by coins which were introduced the previous April. More: Quid notes - pound coins in.
Apple Pay becomes a must-have payment option for banks….
…Half a billion phones activated for ApplePay.
We're all getting bigger! Bulk upload smart requests for payment with Ordo. Tutorial.
Trilo is the simplest way to pay - just select your bank, tap pay and get a Boost every time - product hunt.
To place an advert direct: purchase now.
Longer read: PayPal’s Bitcoin Strategy Is Not About Bitcoin
Grab a coffee and read Dave Birch’s latest Forbes article.
Given that the people who are great supporters of Bitcoin often talk about its key characteristic being that it is person-to-person, uncensorable value transfer you do have to wonder who will be using the new PayPal service that will allow them to pay merchants using the cryptocurrency. My guess, and it is only a guess, is that the answer will be approximately nobody. This is because, broadly speaking, nobody does now.
Longer read: PayPal’s Bitcoin Strategy Is Not About Bitcoin.
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Getting to grips with the UK’s retail payments landscape can seem a complex and daunting task.
The Payments, Payments, Payments newsletter from Mike Chambers at Northey Point explores a wide range of the UK’s payment news including: Open Banking, Request to Pay, Direct Debit, Confirmation of Payee, Bacs, CHAPS, Faster Payments, LINK, cash, cards and cheques and unpacks the eco-system that supports the operation of these systemically important payment systems.
The newsletter is an independent and informed insight into the UK’s payments landscape – exclusive payment insights, hot topic briefings and fundamentals unpacked.
Join the rapidly growing number of subscribers and navigate the UK’s payments landscape with former Bacs CEO Mike Chambers.
It looks like time keeping at the Bank of England in the 1960’s was just as strict as at Barclays in the 1980’s - who else took the walk of shame to the ‘late book’?
Remember cheques? An antiquated relic of a bygone (payment) age given an extra lease of life through the newly introduced image clearing service. Destroying the cheque post imaging still seems very strange: