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Mobile wallets replacing leather
ACI Worldwide’s 2022 Speedway Pulse report has found that consumers of all ages are rapidly adopting mobile wallets such as Apple Pay and Google Wallet for payments of all types. In fact, 45 percent more consumers report using a mobile wallet to make a payment in 2022 compared to last year.
2022 is proving to be a year of rapid change and bill payments are no exception. Providing mobile options, speedier processing and a wide variety of ways to pay at the last minute are critical for billers in all industries to meet the needs of today’s consumer.
Visit: www.aciworldwide.com/acispeedpaypulse for more billing and payment insights.
Request for payment is a powerful instant payments tool
When one party wants to be paid by another party – preferably as soon as possible – the request for payment (RFP) feature of an instant payment can make the process a snap.
By using RFP, a business can present a bill through a customer’s mobile banking app, and the customer can then approve the prefilled information about the payment amount and requestor in a single step. A simple enough example, but RFP is a powerful tool that financial institutions and their customers can use to unlock additional value in a variety of payment use cases.
When the United States FedNowSM Service launches in 2023, RFP will be one of the key features of the new instant payments service. Among other things, it will allow financial institutions and other service providers to build instant bill pay services that can help their consumer and business customers conveniently send e-invoices, receive instant bill payments and better manage cash flow.
More:
Could variable recurring payments end subscription traps?
YouGov and TrueLayer have published a research showing that the majority of people would still use subscriptions if they were easier to cancel and manage.
62% of respondents said they are planning to review their subscription services in the next six months in the context of the cost-of-living crisis and 38% say they have already cancelled a subscription service.
At the same time, 38% of the public have kept paying – accidentally or otherwise – for a subscription service they’ve stopped using entirely. Almost one in ten (9%) people with subscriptions say they spend over GBP 25 per month on services they don’t regularly use, while a quarter (25%) said they didn’t know how much they were currently spending on their little-used subscriptions.
The findings suggest that the difficulty in cancelling subscriptions – many of which are set up as ‘card on file’ payments, which do not show up alongside Direct Debits on a user’s bank account – is a key factor driving this behaviour: 45% of respondents agreed that subscriptions were too difficult to cancel.
However, consumers are willing to continue paying for services by subscription, providing they have more transparency and control: over half (51%) say they would be more willing to use subscription services if they were easier to cancel.
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The Bank of England has published their RTGS and CHAPS Annual Report
RTGS settles over £720bn on an average day. The BoE’s latest report covers highlights from 2021 to 2022 and how RTGS has supported monetary and financial stability against the backdrop of the Covid pandemic and in a fast changing payments context.
The BoE also reports that their transformational RTGS Renewal Programme also continues to progress at pace.
More: Bank of England’s RTGS and CHAPS Annual Report.
A Church Street with a church, a High Street with a town hall, a Market Street with brightly pained shops and a Bank Street without a bank.
Source: The Telegraph, 12th September:
Lutterworth, in Leicestershire, is a typical English market town. There is a Church Street, which leads to the 13th century parish church. A High Street, with a town hall in the neoclassical style. A Market Street, with a thatched roof, timber-framed pub and brightly painted shops. And a Bank Street – even though soon, the community will have no bank.
More: How the botched banking hub rollout left people struggling to get cash.
Are my deposits going to the correct recipients and are they safe?
The payments landscape has evolved and faster, digital payment transactions have become the preferred way. This accelerated behaviour is thanks to more connected devices and the increased demand for new digital channels. This has opened up a world of opportunities and enhanced experiences, which is great for consumers.
Building Societies are taking the necessary steps to ensure payments or deposits made
by their members remain safe, while not negatively impacting on the experience is key.
However, not everyone is participating in CoP.
For those that aren’t, it’s creating consumer confusion during the deposit process with messages of ‘unable to check’, leading to second guessing and reduced confidence. All consumers want to know is, “Are my deposits going to the correct recipients and are they safe?” This is why it’s extremely important that CoP is a must for Building Societies.
SurePay’s CoP solution is easy to implement and can offer you a full range of technical capabilities including API connections or batch-files submissions. SurePay can provide CoP as a ‘Plug and Play’ solution that removes the cost and implementation barriers, ensuring that no matter what CoP solution you decide upon it can be fully integrated, taking you a step closer to a frictionless journey.
More: SurePay: A seamless experience with Confirmation of Payee.
¿Por qué está pasando esto?
It’s official! Social Market Foundation (SMF) recently shared data that UK consumers are more likely to be hit by card fraud and suffer higher losses than their European counterparts. ¿Por qué está pasando esto?
Remember 2019? Those pre pandemic days when someone would cough and you wouldn't run away and almost fall into a bush or walk into a pole? Well, data from then showed that there were 134 card frauds per 1,000 people in the UK at a cost of over £8,800.
To put some seasoning on the data, 84% were the result of card-not-present fraud (CNP). Not quite Tinder swindler, but fraudsters use card details without the physical card in phishing and malware scams. In contrast, Germany's fraud cost was under £2,000 and only 15 per 1,000 people.
More: Vyne have been dreaming of a winter wedding between social commerce and Open Banking.
Identity of a QR Code
QR codes are not new, in fact they existed since 1994, invented by a Japanese automotive company Denso Wave. They also haven’t been developed specifically for web, but this pseudo-lazy technology has proven to be great for customer experience. It reduces friction of user entering a string manually into the phone browser, for example URL of the website you want to visit. COVID-19 forced us more to rely on personal items, so many restaurants opted-out from paper menus and just replaced them with… QR codes that you can scan with your mobile to open the webpage with a menu.
Marcin Zimny suggests that we are so keen to use QR codes but have never thought about how careful we need to be.
More: Identity of a QR code.
UAE’s first paperless Direct Debit Marketplace launches
Direct Debit Marketplace, the UAE’s first paperless direct debit marketplace, has officially launched.
The platform, the region’s first of its kind, offers payers and merchants a simple and convenient all-in-one solution for recurring payments such as school fees, insurance, rent, gym memberships, and any other subscription-based service.
The Direct Debit Marketplace platform, which is available to organizations that take recurring fees in any industry, is bank agnostic, which means it does not affect the merchants’ relationship with their banking services provider. The platform provides users with peace of mind because direct debits enabled by the platform are integrated with and regulated by the UAE Central Bank. Payers benefit from cancellation control as part of their contractual terms.
Ummair Butt, Founder and CEO of Direct Debit System said:
Writing four cheques for rents or three for school fees are common place in UAE. Our Direct Debit Marketplace app provides residents and citizens with a safe, legal alternative to make all their recurring payments in one place, ideally on a monthly basis. Monthly payments and avoiding quarterly or bi annual bulk payments means Direct Debit Marketplace can help over 96% of monthly salaried people to stay in control of their finances and out of debt. This is especially important knowing that rents and school fees account for more than 50% of their salaries. Our mission is to encourage a culture of monthly direct debit payments for all big or small ticket items at very low cost to merchants & free of charge for payers.
UAEPASS, the UAE’s only secure digital identity, is integrated into the platform. One-time Direct Debit payment setup is only available through UAEPASS, making the entire process paperless. This also means that users will need to download the UAEPASS app on their smartphones and have “signature qualified status” in order to sign a Direct Debit mandate, providing an added layer of security.
More:
Payments Tomorrow
Mike Chambers is heading to Madrid this October for The Payments Association EU‘s Payments Tomorrow annual conference. Mike will be joining Jose Manuel Campa, David Birch and Wolfgang Gaertner for a great conference.
ICYMI
Card Industry Professionals chosen to be part of Fintech 5.0.
Round the corner by the grocery store stood Darling Doris thirty years or more.
In brief:
Visa, Mastercard and American Express say they will implement a new merchant category code for American gun merchants, meaning firearm store transactions are identified.
Partners
Covering Request to Pay, Confirmation of Payee, card payments, Direct Debit, payments and A2A payments Payments:Unpacked is pleased to work with the following partners:
Request to Pay: Join the secure payment revolution with Answer Pay.
Card Payments: Card Industry Professionals supporting Businesses to Accept Payments In-Store, Online or Over The Phone!
Payment Solutions: Seamless, secure & affordable payment solutions that enable organisations of all sizes to accelerate growth & innovation from Access PaySuite.
Payments: ACI Worldwide - New Payments Architecture, ways ACI can help you today, to support your migration to NPA.
A2A: Payments perfected. The full-stack account-to-account payment solution for merchants. Seamless, faster, fairer payments from Vyne.
If you’d like to join support Payments:Unpacked in helping unpack the UK’s payments landscape contact: collaboration@northeypoint.co.uk
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And finally…
There are two types of cashless
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