No time to stop, the Revolution is here to stay

Issue 112 | 12 April 2021

Welcome to issue 112 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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Did Covid-19 kill cash? A look at cash use in 2020

Covid-19 has had an unprecedented effect on people’s lives. Analysing this through the lense of consumer payments, the lockdown measures have had a colossal impact on the majority of businesses as they were forced to shut and people remained indoors in an effort to fight the virus.

These measures suppressed normal behaviour and, as a result, suppressed normal spending patterns: people made fewer payments as there were significantly fewer opportunities to buy clothes, a coffee or sandwich, visit the cinema or pub, or socialise with friends and family.

This meant that in 2020 significantly less payments were made than usual. Combined with negative press raising hygiene concerns about cash and the virus, as well as shops and supermarkets encouraging people to use cards instead of cash, 2020 represented a turning point in cash use in the UK.

Enryo are holding a webinar on the 15 April to explore this question.

Enryo are an independent consultancy designed to support the financial services industry as it navigates times of change. They offer support and guidance by providing agile and innovative solutions to:

  • Research & education

  • Stakeholder & political engagement 

  • Risk & resilience planning

The background for the webinar is based on the results of four quarterly surveys conducted across 2020, Enryo’s research provides some essential insights into the future of UK payments. 

I’m pleased to join the panel for this webinar with Enryo co-founders David Fagleman and David Hensley.

Hear more about this research in this free to attend webinar.

Time: April 15, 2021 10:00 AM in London

RegisterWebinar: Did Covid-19 kill cash? A look at cash use in 2020.

Latest cash use figures for the UK

Latest cash use figures just released by LINK Scheme Limited. What difference will today’s relaxation of COVID restrictions have on our use of cash?

More: Northey Point’s weekly ATM Tracker.

One Billion Additional Touch-free Visa Payments Made as Consumers Embrace Contactless Commerce

Visa report that:

  • Less than a year since contactless limits increased across Europe, Visa has hit one billion additional touch-free transactions, 400 million of which took place in the UK.

  • Consumers and merchants are increasingly turning to contactless payments as a secure and seamless way to shop - two thirds (65%) of consumers say they would prefer to use contactless payments as much as, or more than, they do currently.

  • Contactless remains one of the most secure and convenient ways to shop with Visa following the limit increasing in some countries by as much as 50% last year, and the announcement that the UK contactless limit will increase to £100.

More: One Billion Additional Touch-free Visa Payments.

Benefits of Real Time Payments

Akhil Rao has shared some insights on the adoption benefits of Real Time Payments (RTP).

The ability to make payments in real-time comes with a number of capabilities and benefits. The most appealing of these to organizations is immediate access to receiving funds, transaction status, and control of cash flow. These assets created by RTP all serve to increase visibility into the financial wellbeing of the company and decrease confusion around the payment lifecycle. 

They are also the most obvious upsides to RTP; the other capabilities and benefits that ranked lower among respondents require more education and familiarity with RTP to be fully recognized.

Akil Rao

No time to stop, the Revolution is here to stay

Mark O’Keefe at Optima Consultancy has published a German Mobile Banking App review.

Three take aways from Mark’s report:

  • The challenger banks continue to raise the bar when it comes to what can be done in a mobile banking app. New entrant C24 have launched with a proposition stronger than most in the market and challengers continue to release features at a rapid pace. A lack of progress with incumbents in the last six months has widened the feature gap. More than half of accounts can now be opened ‘in-app’ via store download. Digital-first and contactless is just expected!

  • Apple Pay support has now become a ‘table-stake’ feature and it is likely card controls will soon follow.

  • COVID-19 is having permanent behavioural changes with the consumer. With more branch closures and remote working, will this further accelerate changes needed in the banking app? Where are the development priorities? Will the long-term Covid-19 restrictions increase pressure for supporting relevant features such as the Pays, virtual cards, subscription management and chat?

More: Optima Consultancy German Mobile Banking APP Review.

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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Mike