Welcome to issue 130 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.
In this week’s edition we consider Request to Pay, Lead or Lag with Answer Pay, The Future of Payments with Access PaySuite and we celebrate Ziglu Money’s first birthday.
Request to Pay, Lead or Lag?
Webinar: Tuesday, 22 June 2PM to 3PM (BST)
Time-lined to coincide with the planned June launch of the Single Euro Payments Area Request to Pay (SEPA Request to Pay), this virtual expert panel discussion tackles the big questions that surround Request to Pay adoption including, when financial services companies should look to adopt it, what the technology roadblocks are, and what will the impact be on customers, billers and financial services providers.
Register: Join Mike Chambers and a panel of expert speakers for this invitation only virtual event: https://zoom.us/webinar/register/WN_P1UUGRwBTVqIOvyFnlYC5A
New forms of Digital Money
We live in an increasingly digitalised world where the way we make payments and use money is changing rapidly. The prospect of stablecoins as a means of payment and the emerging propositions of CBDC have generated a host of issues that central banks, governments, and society as a whole, need to carefully consider and address. It is essential that we ask the difficult and pertinent questions when it comes to the future of these new forms of digital money.
Andrew Bailey, Governor, Bank of England
The Bank of England has published a Discussion Paper which aims to broaden the debate around new forms of digital money and are seeking views on the Bank’s emerging thoughts on the subject.
These new forms of digital money could be new forms of digital money or privately provided. Central Bank Digital Currency (CBDC) is the term used to describe the digital form of central bank money. A ‘stablecoin’ describes digital tokens issued by the private sector which aim to maintain a stable value at all times, primarily in relation to existing national currencies. Their stability of value is what distinguishes them from other digital assets using new technologies.
For the purposes of the Discussion Paper, the forms of digital money in the UK that are considered to be systemic are those that have the potential to scale up and become widely used as a trusted form of sterling-based retail payments. For all stablecoins deemed as systemic, the Bank’s expectation is for them to be stable in value at all times and offer 1-to-1 redemption with a robust legal claim.
Getting paid should be simple
Our friends over at Access PaySuite have been very busy over the past few months….
Without the right system, chasing payments and reconciling transactions can be time consuming, and you might be uncertain around if and when you’ll get paid.
That’s why we created Access PaySuite. Our powerful payment solutions eliminate hours of admin so you can get paid easier, faster and with increased accuracy. So, instead of worrying about cashflow, you can focus on growing your business, while we take care of the payments.
Access PaySuite delivers seamless, secure & affordable payment solutions that give businesses of all shapes and sizes the freedom to enhance innovation and accelerate growth.
FICO Consumer Digital Banking Survey 2021 – Top Five Takeaways
Sarah Rutherford at FICO has commissioned a survey of 1,000 adults in each of fourteen countries to canvas them about their attitudes to opening a range of different financial accounts digitally using websites and apps.
Sarah reports that there were some very interesting findings and some results that challenged her pre-conceptions and received wisdom!
Sarah’s top five insights are:
Digital ‘natives’ probably aren’t who you think they are – unless you’re from Australia or New Zealand.
People understand why identity proofing happens but when it causes disruption tolerance is low.
Intuitive but flexible customer journeys are a basic requirement
We may be at an inflexion point for the use of apps to open accounts digitally
Using biometric security to protect accounts is accepted and even expected.
These are Sarah’s my five highlights from the FICO consumer digital banking survey – but they’re just the tip of the iceberg of the insights uncovered.
FICO whitepaper: Identity Proofing and the Changing Face of Digital Banking that looks at the Global results in more detail
FICO Identity Matters podcasts on www.FiCO.fm
Confirmation of Payee
Don’t Forget: The PSR have published a Call For Views, outlining the findings of their analysis of the impact of Phase 1 of CoP and the feedback received on the upcoming roll out of Phase 2 which will enable more Payment Service Providers (PSPs) to join CoP.
Current Account Switch Service
Pay.UK have just released the May current account switching data - for a third month in a row the number of bank account switches is 60,000:
Weekly ATM value and volume figures 30 May 2021
Key observations for the week ending 30 May 2021:
Last week the volume of ATM transactions increased by 10% when compared to the previous week in 2021.
Last week the volume of ATM transactions increased by 23% when compared to the equivalent week in 2020.
Last week the volume of ATM transactions decreased by 38% when compared to the equivalent week in 2019.
More: Northey Point’s ATM Tracker.
Combining payments with crypto - it’s Ziglu’s first birthday today - with commission free trading on the 8 June. Use my link to earn a referral bonus after your first qualifying exchange: https://invite.ziglu.io/619cc8b5
Big increase for Faster Payments volumes with Single Immediate Payment (SIPs) volumes.
Payments shifting from checking in, not checking out with Dave Birch.
Santander pushes back at Which? over APP scam reimbursement rates. Santander says that concentrating on reimbursement rates ignores work done on fraud prevention, "which should be the overriding priority”.
Klarna takes on credit cards with in-app instalment shopping at all UK online retailers.
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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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