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RIP Paym. We hardly knew you
Source: Finextra.
The shutters have come down on Pay.UK's Paym mobile payment service.
Pay.UK research suggests that 96% of Paym users would not be inconvenienced using a different service if Paym was not available.
Paym, the mobile payment service launched by fifteen of the UK's biggest banks and building societies, is shutting down after an eight year battle to keep abreast of changing consumer trends and technology.
Launched in April 2014, Paym enable users to transfer payments through their banking app to any other account via the recipient's mobile phone number.
Paym currently has around 5.8m registered users, of whom around 500,000 use it regularly.
However, new registrations have fallen in recent years by 10% in 2021 and 14% in 2022. Monthly transactions have also dropped from 867,000 in 2020 to 668,000 in 2022.
Pay.UK says the decision to go offline on 7 March 2023 reflects a shift by UK consumers towards newer forms of mobile payment and access to Faster Payments through online banking.
The emergence of new products and services, driven by the UK’s world-leading payments sector, means it is time to make the move to faster, and better systems for consumers and businesses.
Dougie Belmore, chief payments officer of Pay.UK
Strong Customer Authentication leads to drop in online card fraud
Three SCA research findings from Barclaycard:
200 days on from the mandatory introduction of Strong Customer Authentication (SCA) in the UK, 73 per cent of retailers have seen online payment fraud decline as online shopping becomes safer.
Consumers welcome the additional security, with 80 per cent happy to spend extra time at the checkout if it helps protect their security.
28 per cent of merchants still aren’t fully compliant, leading to over £2.07m in sales being declined every day.
More: Barclaycard: Strong Customer Authentication leads to drop in online card fraud.
Using open banking to reduce Bacs risks: Improving the Direct Debit process to reduce errors and save time
Finastra have been thinking about how leveraging Direct Debit gives payers a hands-off approach to process their regular payments, while giving corporates an affordable and effective way to control their collection cycle.
However, the Direct Debit scheme isn’t without its shortcomings. How can open banking reduce Bacs risk and improve the Direct Debit process?
Download Finastra’s market commentary on how open banking benefits Bacs customers by reducing common issues encountered when setting up new Direct Debit payers.
APP fraud victims to get mandatory reimbursement rights under new PSR rules
Victim of authorised push payment fraud will soon be entitled to full reimbursement under new proposals drawn up the Payment Systems Regulator (PSR).
Currently, over three quarters of bank customers have failed to win reimbursements from banks after falling victim to APP fraud, despite a voluntary code of practice that promises refunds in 'no blame' cases.
The latest proposals from the PSR would put mandatory reimbursement "in all but excetional circumstances" in place for all online and mobile payments. The watchdog also wants banks to improve the level of protection for APP scam victims and incentivise banks and building societies to prevent APP scams.
The PSR says it wants to see the requirements for mandatory reimbursement in place for consumers "as soon as possible", although this awaits the p[assing of legislative changes under the Government's Financial Services and Markets Bill.
Fraudsters have continued to devastate the lives of innocent victims through APP scams. We want to see all banks, building societies and other payment providers doing more to prevent APP scams from occurring in the first place. These proposals will mean everyone has more protection from scams. Our proposed rules will see everyone benefitting from strong protections, regardless of who they bank with. Chris Hemsley, managing director at the PSR
More: APP fraud victims to get mandatory reimbursement rights under new PSR rules.
Building experience, trust and protection
Last week Richard Koldewijn from SurePay attended MoneyLIVE for Building Society in Birmingham:
It was great to see so many familiar faces from Building Societies and partners. In the conversation that I had, Confirmation of Payee (CoP) is on the agenda with more Building Societies, it was good to talk about possible solutions. The Members of Building Societies would like to see a CoP response when making a deposit into their Savings account.
SurePay is able to help building society members as quickly as possible and to deal well with specific characteristics such as roll numbers. For banks a special SRD API is available to make payments to Building Societies even simpler.
SurePay is a specialist CoP vendor in the UK. Due to SurePay’s best in class algorithm, tweaked and improved over the years, they offer the highest percentage of matches, the lowest no match percentage and the least false CoP alerts, which means:
less fraud
more flowing deposits
higher consumer trust
less complaints
lower help desk workload.
If you want to know how SurePay can make a CoP implementation as simple as possible book a meeting via: https://lnkd.in/eHpfG6Fd
LINK Annual Report
LINK Scheme Ltd has published its 2021-22 Annual Report. Click below to download a copy and read messages from LINK’s Chairman and CEO, how the Covid19 affected cash use, LINK’s governance and what LINK is doing to support consumers’ access to cash.
LINK Annual Report: https://lnkd.in/eQyP-rVm.
Fighting fraudsters: How can the payments industry stay ahead?
Let's look at the statistics. In the last 12 months, scams accounted for 44% of total fraud losses in the U.K. That's £583 million of losses. That includes impersonation scams (£214 million) and investment scams (£171 million).
These statistics demonstrate that fraud is growing, scams are the biggest element of fraud, and we, collectively as an industry, need to do a better job to regain control.
Mark McMurtrie set the scene on fraud and scams in the U.K. before the panelists move onto the key challenges financial insitutions and regulators face when combatting scams in the Payments Association’s latest podcast “Fighting fraudsters: How can the payments industry stay ahead?”
The assembled expert panel discusses the current landscape of scams, the key friction points in our industry’s efforts to combat scams, and the actions regulators are taking to combat scams:
Angela Yore – Managing Director, Sky Parlour (Moderator)
Phil Creed – Director of Financial Crime, fscom
Erik Vasaasen – Chief Technology Officer, Okay
Nick Fleetwood – Head of Data Services, FORM3
Mark McMurtrie – Director, Payments Consultancy Limited
Listen to the podcast here: https://okt.to/hepkdu
In brief
Ofgem tells energy suppliers to improve help for struggling customers - step in Request to Pay?
Rees-Mogg hints government will merge financial services regulators.
Highway Code mobile phone exception for drivers making contactless payments.
Digital euro will not be available until 2026, at the earliest.
Central banks explore CBDC for international retail payments.
ICYMI
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.
Financial Crime 360
Be sure to secure your place for Financial Crime 360, where the industry will come together to tackle fraud and money laundering head.
Register here: https://thepaymentsassociation.org/event/financial-crime-360/ Use the Payments:Unpacked code “amb100” to receive a £100 on your ticket and join The Payments Association on the 22nd November at The Royal Lancaster Hotel, London.
Parterships
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.
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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