Payments, Payments, Payments

Newsletter 28 | 22 June 2020

This week, Open Banking account to account payments seek to disintermediate card transactions, cash ATM withdrawal numbers remain at a 50% reduction on last year, The Inclusion Foundation plan to put an end to financial exclusion, get to grips with the UK’s complex payments landscape and we explore IBAN’s and why you might need one.

Worldpay rolls out Open Banking Hub for account-to-account payments

Worldpay is rolling out a new Open Banking Hub to merchants, enabling users to pay for purchases direct from their bank account, circumventing the need to enter card or account information into a third party site.

The Worldpay Hub provides a single API integration to all UK banking providers. When consumers make a purchase via a mobile device they are automatically redirected to their banking provider’s app to complete their order, while also able to view their bank account balance in during the checkout process - Link: Worldpay Open Banking Hub.

ATM Cash Withdrawals

Earlier today LINK published the latest ATM withdrawal data.

As the UK slowly emerges from ‘lockdown’ the week on week numbers of ATM transactions have currently settled at circa 26/27 million, about half of the equivalent week(s) last year.

Putting an end to financial exclusion

1 in 4 adults will experience financial exclusion at least once in their life. With today's technology, The Inclusion Foundation believe this just isn't good enough - which is why they have brought fintechs together to help improve this widespread issue. Find out more about how they plan to put an end to financial exclusion here - The Inclusion Foundation.

The Retail Payments Landscape

Getting to grips with the UK’s retail payments landscape can seem a complex and daunting task.

The new ‘Retail Payments Landscape’ briefing from Northey Point covers a wide range of the UK’s payment instruments, including Bacs, CHAPS, Faster Payments, LINK and cheques, and unpacks the eco-system that supports the operation of these systemically important payment systems.

Find out more: Payments Briefing - The Retail Payments Landscape.

What is an IBAN?

… and why would I need one?

Standardisation is generally a good thing, at least that’s what ISO – the International Organisation for Standardisation – believes, and this applies to financial transactions more than most. The International Bank Account Number – pronounced “eye-ban” in the UK and US and “ee-ban” pretty much everywhere else – has big shoes to fill: it’s a standard (ISO13616) which aims be the only bank account format you’ll ever need. It’s used in Europe and internationally and is the common format to represent any account in any country, and it does a pretty good job in almost all cases.

Link: What is an IBAN? … and why would I need one?

If You Feel Like You’re Regressing, You’re Not Alone

This Harvard Business Review article starts:

“I hate to say this right now, but I haven’t felt this energized in years,” one CEO I advise admitted to me during the first week of Covid-19 stay-at-home orders. When I asked about the source of this energy, the CEO noted that the crisis allowed an unusual freedom of movement — strategically and as a leader — that he had forgotten about. The relief from budget constraints, the suspension of market expectations, and the welcome escape from the conformity of the daily routine all contributed to his unexpected reaction to working during the pandemic”.

But then “the adrenaline-fueled pace of the initial crisis response began sputtering. Problems became more complex and exhausting. The varnish started to crack. The glory faded. Fuses were short.”

Check out this Harvard Business Review article by Merete Wedell-Wedellsborg - link: If you feel like you’re regressing, you’re not alone.

In Brief:

  • Just a week to go until Confirmation of Payee’s implementation date - check out this link for all you need to know - Confirmation of Payee 101.

  • “Direct Debit 101, An Anthology” by Don Hollingum, a free download from Northey Point - DD101 An Anthology.

  • This week, I am writing a piece on Central Bank Digital Currency (CBDC). There are a number of initiatives looking at a CBDC. The Bank of Thailand are to launch a prototype that uses a central bank digital currency, or CBDC.

  • With the number of Bank / FinTech partnership deals increasing where will mutual value be found? Link: Mutual value through partnerships.

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Thanks

Mike