Italian Account Information Service and Click and Collect Cash in Stoke-on-Trent

Issue 99 | 22 February 2021

Welcome to issue 99 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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Account Information Service as a consolidation factor for an Open Ecosystem in Italy

This week our blog (www.northeypoint.com) features a guest article by Marco Folcia, Sara Marcozzi, Valentina Grilli, Fabrizia Capillo from PWC Italy.

The European payments sector is in the midst of a transformation driven by technological innovation and evolving regulation, redefining its very potential and protagonists.

Marco and team conclude their blog by stating that are three areas to focus on to promote the success of the Account Information service:

  • Customer education: only 6% of traditional Customers and 13% of digital Customers say they are aware of the Account Information service[8]. The market in its various forms should undertake targeted informational, educational, and promotional initiatives aimed at customers to create greater awareness of the service and its value;

  • Value proposition consolidation: evidence shows that only 20% of players can create VAS revenue streams linked to Account Information[9]. The market will need to scale multibanking technology, along with the use and analysis of the underlying data, to enable and adopt new use cases;

  • Ecosystem stabilization: analysis of the main system providers revealed a low level of standardization of data and processes, enhancing the ecosystem’s overall complexity and fragmentation. It’s crucial to design technological infrastructures capable of guaranteeing full interoperability among different systems in order to improve service continuity and reduce the time-to-market of new use cases.

The market presents several possibilities to further develop the offering in terms of loyalty and new lead generation. Players who intend to benefit from these opportunities will, therefore, need to balance different dimensions (e.g. time-to-market, risk outsourcing) to the detriment of the centrality of data management, which does not in itself represent the differentiating value. Efforts should therefore be concentrated on the development of new services able to meet the needs of customers, starting from the reading of new information assets.

Read the full article: Account Information Service as a consolidation factor for an Open Ecosystem in Italy.

Consultation on the delivery and regulation of the UK's New Payments Architecture (NPA).

Genevieve Marjoribanks, Head of Policy at the PSR has written an article to accompany the publication of the latest consultation on the delivery and regulation of the UK's New Payments Architecture (NPA).

‘Click and collect’ cash initiative coming to Burslem, Stoke-on-Trent

Consumers will be able to use a “click and collect” service to access cash directly from shops under a scheme being piloted.

The Cash in Shop service is coming to the UK after previously being trialled in Switzerland.

The pilot scheme will launch in Burslem, Stoke-on-Trent, Staffordshire, in March, and those behind it described it as the first stage in a national rollout.

Customers will be able to use an app to see which shops have cash available to pre-order for collection in minutes, free of charge. There will be no requirement to make a purchase in the shop.

The app could also allow customers to have cash delivered to their doorsteps along with their food orders.

Cash in Shop is part of a wider initiative called the Community Access to Cash Pilots (CACP) scheme, which is working across the UK to trial and test various ways to help keep cash sustainable.

More: ‘Click and collect’ cash.

Saudi Central Bank (SAMA) launches an instant payment system 'sarie' 

On Saturday the Saudi Central Bank (SAMA) launched an instant payment system 'sarie' . It comes as part of a series of SAMA-led initiatives to promote the national payments' ecosystem and to enhance its infrastructure, aiming to achieve financial inclusion.

  • Customers can send and receive low-value local transactions around the clock and for a low fee, not exceeding one riyal.

  • The system provides beneficiaries with other services and transfer options, including using the mobile number as an identifier instead of the IBAN for transactions between banks and the ability to verify the validity of the recipient's bank account before completing the transaction.

  • The system also offers the quick transfer service, which allows the banking sector's clients to send payments of amounts less than SR2,500 without adding and activating the beneficiary upon activation by the account holder. 

  • Initially launched in 1997, the Saudi Arabian Riyal Interbank Express (SARIE) system is the RTGS system that underpins the Saudi payments environment. It is now upgraded to the ISO 20022 standard. 

More: Saudi Payments.

Payments Tracker

The payments volume and value data for the twelve months to January 2021 has just been published. The tracker tracks the fortunes of Bacs Direct Debit and Direct Credit, CHAPS, Faster Payments, Cheques, LINK ATM transactions, Debit / Credit Cards, and the Current Account Switching Service.

The Bacs Direct Debit and Direct Credit data for January is:

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

  • Bacs Direct Credit volumes have decreased by 6% (12 months to December 4%)

  • Bacs Direct Debit volumes have decreased by 1% (12 months to December  increased 1%)

  • Total Bacs volumes have decreased by 2% (12 months to December 1%)

  • Bacs Direct Credit values have decreased by 1% (12 months to December 1%)

  • Bacs Direct Debit values have decreased by 13% (12 months to December 11%)

  • Total Bacs values have decreased by 4% (12 months to December 4%)

Volumes for Bacs Direct Credits had seen some recovery following the ending of the second national lockdown with the percentage reduction year on year falling from 6% to 4% in December.

Bacs Direct Credit volumes were greater in December 2020 than in December 2019 recording an increase of 14% for the month.

However with Lockdown 3.0 commencing at the beginning 2021, volumes have fallen back again by 14% in January with the year on year reduction now back to 6%.

The small growth in Direct Debit volumes year on year has also come to an end with the reduction of 1% recorded for the year to January 2021. In recent months we had seen year on year increases for each month – however again this was brought to a halt in January with a fall of 10% for the month.

Overall Bacs volumes and values remain on a downward trend for the 12 month period – and with Lockdown 3.0 now commencing a further fall to 2% has occurred. However, although is still likely to be some weeks away, we would expect that a recovery in both volumes and values would be seen when restrictions are lifted.

More: Payments Tracker.

More: Lockdown feel to latest account switching figures.

Emerging Payments Awards 2021

I have joined the judging panel for the 2021 Emerging Payments Awards.

In launching the awards the EPA said:

2020 was undoubtedly a year of transformational change. Not just in how people work, but also in how people pay and get paid. Payments are the lifeblood that fuels our society, and as an industry, we have come together in our response to the COVID-19 pandemic to ensure that blood keeps pumping.

That is why for this year, there is no fee for submitting an entry to win a coveted EP Award...

We want to give those companies who have created some truly innovative and revolutionary products and solutions to the challenges 2020 threw at us the recognition they deserve. 

There's no limit to the number of categories you can enter and 20 categories to choose from, including 2 NEW ones

Entries for the 2021 awards opened today.

For more information and to submit an entry visit: EPA Awards 2021.

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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