Digital payments in a land of penguins, Monet laundering and the concept of "Moneyness"

Issue 106 | 22 March 2021

Welcome to issue 106 of Payments:Unpacked, get to grips with the UK’s retail payments landscape with Mike Chambers - exclusive payment insights, hot topic briefings and fundamentals unpacked.

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Payments Tracker

The March round up of retail payments has just been published on the Northey Point blog, we continue to see the impact of Lockdown 3.0 on the volume and value of payments processed in the UK.

The tracker covers Bacs (Direct Debit and Direct Credit), CHAPS, Faster payments, LINK ATM, Debit and Credit Cards and Current Account Switching.

The March summary for Faster Payments is:

In the 12 months to the end of February 2021 we see that:

  • Single Immediate Payment volumes have increased by 22% (12 months to January 22%)

  • Total Faster Payment volumes have increased by 15% (12 months to January 15%)

  • Single Immediate Payment values have increased by 13% (12 months to January 12%)

  • Total Faster Payment values have increased by 8% (12 months to January 7%)

The trend has remained steady in February with total payments processed ahead of 2020 pre-Covid levels – the total number processed in February 2021 was 237,811,000 compared with 208,756,000 in February 2020.

The increased use of Faster Payments is definitely a digital payment habit that has continued to stick, reinforced throughout each lockdown over the last 12 months.

Oh, and cheque and credit clearing volumes decreased by 34%!

More: March Payments Tracker.

Connecting the Falkland Islands

The Falkland Islands are among the most remote places on earth: an untamed expanse of boundless landscapes and wild ocean, where penguins outnumber people one hundred to one.

But they’re also a place of inspiring and resilient local businesses, run by enterprising locals. And now, the Falkland Islanders are running and growing their businesses with the latest technology from Square and Mastercard.

With only one bank and one cash machine on the island, businesses often went to great lengths to never miss a sale, including accepting nearly any international physical currency.

Read: Mastercard and Square connecting the Falkland Islands.

Monet laundering and a new kind of market

Check out the latest Forbes piece written by Dave Birch:

You’ve probably read something about the latest crypto-craze. My good friend Lawrence Wintermeyer wrote a great piece about it here, describing how an anonymous guild of “art digitalists” bought an original Bansky and then set fire to it after digitizing the piece into a non-fungible token (NFT) they sold for $400,000.

Dave Birch, Monet laundering and a new kind of market

Read Dave’s blog on 15Mb: Monet laundering and a new kind of market

One year on: How Covid-19 changed the UK’s relationship with cash

Almost 12 months since the UK Government announced the first national Covid-19 lockdown, LINK, the UK’s main ATM cash machine network, has published data showing how our use and relationship with cash has changed through the pandemic.

The research also shows that some people are much more comfortable using contactless payments and shopping online. However, we know that over five million adults that continue to rely on cash. For them ATMs and post offices are vital. It’s conceivable that while some people may only use an ATM very rarely, there are still millions of transactions a week and we need to protect the people who use cash and can’t yet go digital.

Graham Mott, LINK

More: One year on: How Covid-19 changed the UK’s relationship with cash.

ISO 20022 migration first-hand

With the ISO 20022 migration deadlines fast approaching Deutsche Bank have launched a knowledge repository, which offers educational material and first-hand insights on ISO 20022 migration in high-value payments

Whether your interest is in the ISO 20022 standard itself, its adoption in the correspondent banking (SWIFT) and one-to-many space (Market Infrastructures), or the implications for corporates – get started here to learn and stay up-to-date with exclusive content:

  • Tutorials: watch bite-sized videos that explain complex concepts in a simple way.

  • Blogs: catch experts' insights on the impact ISO 20022 is having on their particular area of expertise.

  • FAQs: learn more from a section on frequently asked questions about ISO 20022.

  • Media: explore the latest news releases, insights and webinars on ISO 20022 in a media gallery.

More: Deutsche Bank ISO 20022 Migration knowledge repository.

Payment Facts - “Moneyness”

Each day at 11am I post a payment fact on Twitter - here’s today’s #paymenstfact:

Catch each days #paymentsfact by following me on Twitter at: @_mike_chambers_

In brief

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The Payments:Unpacked 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, cheques and Central Bank Digital Currencies (CBDCs) 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.

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Thanks

Mike