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It is now a biggest question now in Australia on how the New Payments Platform – its transformation has impact on regular chores of Australians and its businesses. As time and tide waits for none, the realty of exchange of money and transactions amongst the people has evolved the invention of this new system. The way people and businesses spend and receive money has changed rapidly. Australians are increasingly used to fast, online and mobile experiences and it’s important that the payments system supports this evolution. This New Payment Platform is going to be agile and enables customers of different banks to make and receive real-time payments, 24/7 without any hassle under the guidance of Reserve Bank of Australia. 

 

Financial experts say that this New Payments Platform (NPP) has the prospective to do so much more than enable near real-time payments. The digitization of back offices of businesses enables rich data services for consumers, delivered digitally reaching the customers expectation. 

 

The New Payments Platform evolved from the industry’s response to these objectives, and provides the infrastructure needed to support the digital economy of the future. The Reserve Bank of Australia’s Strategic Review of Innovation in the Payments System set four key challenges for the industry: Speed – making the funds availability nearly instant, 24/7 availability – no wait for bank hours and make payments any time, Data Enriched – send a complete remittance information along within the payment and Simple Addressing – making it more simple, now the new system called PayID enables consumers to more easily address payments to any recipient using an identifier like a phone number, email address, ABN or an organisational identifier.

 

This new platform is enabling a secure set of process amongst participating financial institutions enabling them to send payment messages in real-time, with real-time line by line settlement supported by the Reserve Bank of Australia and also enables faster or instant transaction. Adding a chance to share more data that can travel with these messages, like longer descriptions or attachments such as invoices or receipts, payments can be directed to accounts via an identifier called a PayID, which can be as simple as a mobile phone number or email address and innovative organisations can use the Platform’s features and reach to create and offer new and competitive payments products or services. 

 

For any instance or transaction to be in place, one need not share their bank details or security information, just a PayID is enough or an ABN that you can securely link to your bank credit union or building society account. 

The other fascinated thing is one need not do any changes to their existing accounts all they need is create a PayID and link it to the accounts and they can easily transact amongst the various accounts they have. This means that payments linked to your PayID will move to your new account automatically. 

A transaction cost would be applied ofr wholesale units by NPP Australia that are participating in the financial institutions and expected to be in implementation from mid of 2018. 

As a coin have two sides. It is expected to have frauds in terms of data security and we hope to see a standard and sophisticated system that ensures all Austrailians have hassle free transactions.

13 May 2018
Market Insights | Financial Services

To diminish the fraud, unfair and predatory practices and increase the more secured way of credit offerings, Australian parliament has passed a new bill that would crack down credit card providers’ unlawful practices and increase competition in the banking sector.

The key reforms introduced by the draft Bill are - narrowing responsible lending obligations for credit card contracts; banning unsolicited credit limit offers for credit card contracts; simplifying interest charge calculations; and requiring online methods for reducing credit limits and terminating credit card contracts.

It has been made mandatory that from July this year, all the banking and non-banking financial services providers in the country will be required to analyze affordability of a credit card based on consumer’s capability to repay the limit within a reasonable duration.

According to the Treasurer, these reforms are to “protect vulnerable Australians from predatory behavior which seeks to make a quick buck from people’s misfortune, and compound their financial hardship.”

Now for all the financial sectors to be prepared for the changes, all the credit card contract terms and conditions, responsible lending credit assessment processes, marketing processes, websites and IT systems must be revised by the credit card providers.

Sustainable hardship is going to play major role in deciding the right credit limits to the customers who can repay the amount within the agreed period. ASIC will work on this before issuing the credit limits to the customers. They undergo the protocol to verify the background of the consumer and issue the credit limit with time limit within which the customer has to repay the amount else the contract will be unsuitable.

ASIC will be empowered to set periods of time for this purpose and will be able to decide on various parameters which includes time periods, different classes of credit card contracts, different credit limits, and different rates of interest. It is now the responsibility of ASIC to ensure the right balance in achieving a reasonable balance between preventing consumers from being in unsuitable credit card contracts, and not preventing consumers from accessing credit.

The additional new reforms are being called by the new laws from January 2019, containing ban on unsolicited invites from banks to increase credit limit, and simplified credit card interest calculation. Added, the banks will be mandated to offer an option for cancelling cards or reducing their limit online.

A press statement from the office of Commonwealth of Australia Treasurer, Hon Scott Morrison read: “This legislation will protect vulnerable Australians from predatory behavior which seeks to make a quick buck from people’s misfortune, and compound their financial hardship.

“This is the first phase of reforms outlined in the Government’s response to the Senate Inquiry into the credit card market, which seeks to put more power in the hands of consumers.”

The new bill is also expected to rise competition in the country’s banking sector as it will allow even small lenders, which operate bricks and mortar branches or exclusively online, to call themselves banks.

13 May 2018
Market Insights | Financial Services

Singapore is now stepping forward with a new adventure of launching Account-Based Ticketing (ABT) system in collaboration with the Land Transport Authority (LTA) and Mastercard for its public transport by allowing contactless credit and/or debit card cards usage for fare payments. Now, there is no long que waiting for Singapore public for buying tickets before boarding a bus, they can directly but a ticket with this cashless method just by using their debit card or credit using contact less method as soon as they get into the transport system. With this implementation, Singapore will be the first Asian country in implementing this strategy.  All the system and process is highly sophisticated and secured to provide a strong implementation and success of this alliance. 


The pilot was launched in the month of March 2017, and is being applicable across all public bus and train rides. It is now that all interested travelers holding Singapore-issued Mastercard contactless credit or debit cards can register themselves on the TransitLink ABT Portal, if they have not been pre- registered by their In all, LTA and Mastercard has succeeded in attracting 100,000 commuters to participate in the pilot.


The tap & go experience is the best on this contactless payment method which just takes fraction of seconds to complete a transaction on the bus or MRT fare readers using their MasterCard credit card or debit card. Now, the whole process is hassle-free and safe with cashless and also have an opportunity to top-up a separate fare card as when they need it and instead will be conveniently charged for their public transport rides in their credit or debit card Via this TransitLink ABT Portal or Mobile Services app, they will be able to track their journey and fare payment history.


Mr Ngien Hoon Ping, Chief Executive of LTA, said, “We are pleased to partner Mastercard in this pilot. Singapore is one of the first few cities in the world to test this fare payment system for public transport. LTA is committed to leveraging technology advancements to provide more convenience to Account-Based Ticketing using contactless credit or debit cards will add another option to how commuters can pay for their public transport rides.


Ms Deborah Heng, Country Manager of Mastercard Singapore, said, “Apart from use on public transport, Mastercard contactless payments are already available in many popular retail and F&B merchants, as well as a large number of taxis. The introduction of Account- Based Ticketing in Singapore’s public transportation system is the latest in Mastercard’s commitment to deliver smart city solutions to Singapore. In the near future, we expect to broaden contactless access by enabling mobile and wearable devices for cashless use.

13 May 2018
Market Insights | Financial Services

For the integration of national digital payment networks, the central banks of Singapore and Thailand have signed a contract. It has the opportunity to increase the role of digital quickly in Thailand, while offering Singaporean consumers with improved utility. 

Singapore and Thailand are in discussions about connecting their national digital payment systems to counterfeit an extraordinary regional alliance, as officials step up efforts to limit the use of cash.

The link would bring together Southeast Asia’s first national digital-payment platforms, Singapore’s PayNow and Thailand’s PromptPay, said Naphongthawat Phothikit, director of payment systems policy at the Bank of Thailand.

At the Singapore Fintech Festival, Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), indicated that the plan was to link up Singapore’s PayNow and Thailand’s PromptPay, which are both P2P fund transfer platforms in their respective markets.

This ladder allows citizens of both countries to have a hassle free transaction between them to send and receive money both domestically and internationally with just using their mobile number for the transactions. This collaboration brings abundant advantages, easing payments between the countries and likely encouraging bilateral trade, investment, and tourism. “The Monetary Authority of Singapore and the Bank of Thailand are exploring the possibility" of a link between the two networks, said the officials.

"Initiatives to enable faster and more efficient cross-border financial services within Asean are a positive development for the industry," the spokesperson said. "MAS encourage more of such cross-border engagements, premised on common standards, to create a seamless and inter-operable digital experience for the Asean community."

Singapore, while it has a most developed digital payment infrastructure upon its peers in the region, dearth the scale that its bigger neighbors possess, which holds back domestic players such as PayNow.

This tie-up enables a huge opportunity to PayNow for greater stretch, efficacy, and possibly volume if it encourages cross-border payments using the service to and from Thailand.

Even now in Thailand 96.3% of cash payments took place of overall transaction made in 2017 cash according to GlobalData’s Payment Instrument Analytics, this make an emerging needs to increase the use of digital payments. Such a drop would drive revenue for electronic payments players and reduce the costs associated with a cash-heavy economy.

Lack of network benefits makes the country struggle in implementing these digital channels, worthwhile for consumers and SMEs. By potentially expanding the payment network to a host of digitally-savvy Singaporeans at a stroke, the deal has the potential to potentially lift PromptPay use.

“The Bank of Thailand oversaw the January roll out of the PromptPay service by the nation’s banks. It now has 24 million registrations via national identity cards, equivalent to about a third of the Thai population”, Naphongthawat said.

Both networks allow peer-to-peer transfers via banks and enable payments to be made using recipients’ mobile phone or national identity card numbers.

Possibly a regional ASEAN mobile P2P network might form in the medium or long term, which would have stimulating allegations for remittance and potentially even for consumer-to-business payments in the region.

13 May 2018
Market Insights | Financial Services

It’s a big success of Visa Australia new payment security roadmap mainly launched for the more benefits and security of the Australians. In launching the Visa Future of Security Roadmap (‘the Roadmap’), Visa’s Group Country Manager for Australia, New Zealand and South Pacific, Stephen Karpin, said securing the commerce ecosystem is a shared responsibility: “Everyone has a role to play in protecting Australian consumers and businesses from breaches of any kind. Technology has enabled truly seamless commerce, but it has also brought unique risks. To stay ahead of fraud, we need to work together and give security the same attention and investment as we give to new products.”


Visa is widely used by the industry stakeholders which includes both financial and non-financial institutions, consumers, merchants, all policy makers, every individual account holder and law enforcement for processing a secured transaction/ payment. The Visa Future of Security Roadmap is the product of broad consultations and collaboration, making it a firm document on Australian payments security. Now, Visa Australia is delivering roadmaps across the globe to support and ensure the security of the global e-commerce ecosystem and working with Australian industry bodies to align security initiatives.


Sam Gianniotis, Visa’s Chief Risk Officer for Australia, New Zealand & South Pacific, said: “Decades of hard work by Australia’s financial institutions, merchants and the international payments networks, including Visa, has led to ingrained trust in digital payments, trust that is well-deserved. Our collective responsibility is to continue protecting and delivering on this trust, as we enable new and exciting ways to pay.”


Visa’s Roadmap concentrations on a various number of initiatives which ensures the security being enabled to go forward at the same pace as the technologies altering the way we pay. These include:


Introduction to a token system: It is basic that most of the account details being stored at various places such as online merchants exclusively e-commerce websites, Visa is calling on financial institutions and merchants to diminish or ‘tokenize’ this data – a process whereby payments information is substituted with unique ‘tokens’ that are useless if stolen.

Introduction of 3-D secure version 2.0 (3DS): This is a tool that helps merchants to have unified verification of consumers while shopping online, and improved fraud recognition for all parties in an e-commerce transaction.

Making it more sophisticated and new standardization for biometrics: Smartphones, now omnipresent, now became more sophisticated allowing the users to verify their identity through biometrics on their device, just like a fingerprint or facial recognition. Visa’s standards, as well as Visa’s certification of third party devices and software, will make confirm the suitability and security of future biometric solutions as a means of payments validation.

Universal standards for Software-Based PIN Entry (PIN on Mobile): Mobile point of sale (mPOS) technology is enabling micro-merchants to agree digital payments using low-cost infrastructure. With some solutions, mPOS requires PIN entry into smartphones or tablets. After publishing standards and establishing a pilot to monitor the security of this technology, Visa is now sharing the learnings from this ongoing pilot with the Payments Card Industry Security Standards Council (PCI SSC) to assist in its development of global standards for Software-Based PIN Entry.

A new EMV chip: With the success of usage of contactless payments, they are accounting for 92% of Visa face-to-face transactions in Australia, now it’s a challenge for Visa Australia to make it 100% EMV chip acceptance, which means every consumer and merchant will benefit from these security layers provided by EMV chip technology.


Joe Cunningham, Visa Asia Pacific Head of Risk, said, “Visa has a principle of responsible innovation. We need to balance security with customer experience, ensuring no innovation compromises the integrity of the ecosystem. The Visa Future of Security Roadmap sets the groundwork for achieving this and will continue to be updated as the commerce landscape evolves.”


13 May 2018
Market Insights | Financial Services

Google Pay, Apple Pay and Samsung Pay are the most popular mobile wallets available. To know on which mobile wallet rules, every one of these mobile wallets has advantages and limitations.

Google Pay: 

In January 2018, Google declared a rebrand of its consumer payment products and merged both the Android Pay and Google Wallet into a single, unified service known as Google Pay or, informally, GPay. More, Google Pay integrates Google Chrome's auto-fill feature. 

With Google Pay, it'll be easier for you to use the payment information saved to your Google Account so you can speed through checkout with peace of mind. Over the coming weeks, you'll see Google Pay online, in-store and across Google products as well as when you're paying friends," said Pali Bhat, Google vice president of product management and CEO of Google Payment Corp. 

No limitation in adding additional credit cards, debit cards, loyalty cards and gift card to this mobile wallet application which is a good opportunity for all the consumers. There is no need to add them again on Google Pay once there were on Google wallet; the only change is the automatic device update to reflect the Google Pay name. 

Within the store, Google Pay uses near field communication technology (NFC) which allows consumers to transmit their credit card information between their mobile phone and the card reader. If the store has a compatible card reader and accepts Google Pay, you simply hold your phone to the card reader while the phone is open. Also, it has the features of fingerprint authentication required as security verification for the application along a security code sent by Google Pay.

Google Pay (like predecessor Android Pay) is expected to use a virtual account number that ensures your personal information is secure on your phone for the sake of security of data in not revealing the original card details of the consumers. 

The best part is that if your phone is lost or stolen, you can easily lock the phone, create a new password or completely wipe all financial information until the phone is recovered. 

Apple Pay

Apple Pay is offering a hassle-free, secured, and private electronic payment service using iPhone, iPad, Apple Watch, and Mac. Along with an Apple device, all that's needed is the latest version of iOs, watchOS or MacOS, Apple's Wallet app, and an Apple ID signed in to iCloud. 

You can start using Apple Pay as soon as you add your credit, debit or prepaid card to Wallet on any device that you want to use with Apple Pay.  In-store, you use Apple Pay on your iPhone or Apple Watch at merchants with a companionable checkout card reader. On the web in Safari, you use your iPhone, iPad or Mac. Loyalty points, rewards and benefits from your cards continue to accrue when you use Apple Pay. 

Receipts are more likely a benefit in Apple pay as and when you make a purchase using Apple Pay, all your receipts are kept in your Wallet app, but the transaction information is not stored elsewhere for the security reasons. Every transaction made on your iPhone, iPad or Mac requires authentication with Face ID, Touch ID or your passcode. Your Apple Watch is protected by its unique passcode.  

If your Apple device is lost or stolen, you can suspend or permanently remove the ability to pay from that device. No crucial information is store in any instore devices and also not shared with the merchants. For online purchases, merchants only receive information like your name, email address, and billing and shipping addresses. Apps that use Apple Pay must have a privacy policy that you can view, which keeps you in control of your data. 

You can also send or receive money from your iPhone, iPad, or Apple Watch. You send money in Messages or ask Siri to pay someone using the credit and debit cards you already have in Wallet. 

Devices capable of using Apple Pay within iOS apps or on the web include iPhone 6, iPhone 6s, iPhone 6 Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus, iPhone SE, iPhone X, iPad Air 2, iPad mini 3, iPad mini 4 and iPad Pro models. 

Samsung Pay

Samsung Pay is much more limited than Google Pay and Apple Pay. This electronic wallet is companionable with selected Samsung Android mobile devices, including Gear S2 Sport and Gear S2 Classic watches plus Samsung phones updated to Android 5.0 or higher with the latest version of Samsung Gear installed. Visit Samsung online for the latest list of compatible phones. 

In this wallet, you can add any Visa, MasterCard or American Express credit cards. Additionally, more than hundreds of banks and credit unions support Samsung Pay. One can add gift cards and loyalty cards. 

Just place the mobile near the card reader and make a purchase through this app. Also, you can pay for online purchases by using Samsung Pay and then verifying the purchase with your fingerprint. 

One best advantage of Samsung Pay is it works with most card readers. It uses both NFC technology and magnetic secure transmission (MST) technology. 

Ion terms of security, one must verify every purchase with their fingerprint or by entering a PIN. Additionally, your credit card number is never used for transactions. Instead, a random set of numbers is transmitted. 

Samsung says all account information is encrypted and stored in a data vault.

13 May 2018
Market Insights | Financial Services

Mastercard, which is a technology company in the payment industry of the world is a leading one in the industry and has made an announcement about the launch of the new 'World Mastercard for Business' corporate card in Bahrain. This is a card which addresses the commercial needs of both small and medium-scale enterprises of CrediMax and also large businesses such as corporate clients.

As such a premium commercial card solution has never been introduced till now, it would definitely help the businesses of the kingdom to manage expenses monitor the costs in a better way and to improve the efficiency by taking advantage of the benefits that they are going to get with the introduction of such a platform which includes an enhanced buying power and better employee controls.

The Chief Executive of CreditMax, Mr. Yousif Ali Mirza said that this premium corporate card is going to allow their customers and clients to make swift payments with guarantee and keep a track of the expenses which would help them while they make decisions. It also gives their customers a wonderful solution in managing their expenses which will in turn assist them in the growth of their business. He added that by this alliance with Mastercard, they are now enabling corporate companies which are a huge majority in the private sector of the kingdom and that these are the most important organizations in the development of their economic growth. He further added that they are supporting and doing their part in helping the government in improving the ease in the businesses and to make the country digitalized.

With the Mastercard Smart Data in place, the corporate card will allow the customers of CreditMax to make the digital payments much faster and in a more secure way. In addition, the customers would enjoy extended payment period and also reduction in the cost of processing as it will be cashless. While the companies offer better convenience and flexibility to their employees, the companies can also have better control over the expenses. Apart from that, as this solution captures the data spent and automatically generates comprehensive reports, the companies can now use this data for a better internal and external reporting for any sort of increase in the cost control and policy compliance.

Cluster Head, Saudi Arabia and Bahrain, Mastercard, Mr. J.K Khalil said that to meet the variety of needs of different companies and increase their business growth, Mastercard has always taken the position of prominence. He further said that this new solution allows both small and large scale companies in Bahrain to automate their expense related business processes and thus leading to a better expense management and also that it would cut down the risk of accidental errors as well as fraud and increase the efficiency in the businesses. 

13 May 2018
Market Insights | Financial Services

Hosted payment pages and ticket pre-sales for the Dominican Republic based startup airline will now be supported by the Velocity payment platform of CellPoint Mobile. An announcement has been made by CellPoint Mobile saying that it is to give the payment processing abilities for AVA Airways. AVS Airways will be allowed to accept card-based payments for ticket pre-sales, ancillary purchases and fares by the PCI-DSS complaint payment platform of CellPoint, Velocity. Velocity ties up with the existing passenger services system of AVA Airways and gives the startup regional airline optimized hosted payment pages merged perfectly into the booking flow.

James Schildknecht, the Business Development Manager at CellPoint Mobile said that they were interested in providing AVA Airways with a payment platform which they require to thrive and that they looked forward to growing together with AVA as they expand their in a Caribbean airline market.

Now that the new platform Velocity of CellPoint Mobile has come into place, it is expected that the AVA Airways will now be in a position of quickly increase its transactions based on debit and credit card and that it will now be able to take payment for ticket pre-sales well before the official launch of the upcoming plans of the airline. Velocity will now be helping AVA support mobile booking which are very important to the LATAM and Caribbean markets with the help of hosted payment pages which are optimized for desktop or laptop as well as mobile device form factors.

It is expected that, by 2020 there would be a drastic increase in the number of smartphone users in the area by the end of this decade and that the mobile adoption rate of the LATAM and Caribbean area will be around 71% which will be well ahead of the global average which is 66%. If we go by these statistics, then for any airline that is competing in this region, one thing that would be of paramount importance is meeting passenger expectations in terms of mobile bookings and payments. And for AVA Airways, the ability to handle this has been given by CellPoint Mobile.

Olivier Arrindell, the CEO of AVA Airways said that they are expecting this alliance to increase their income in the digital and mobile channels as they shift into their pre-sale phase and he added that for them to grow in this particular region, CellPoint Mobile will be the ideal partner with its mobile-first approach to the payments.

AVA Airways, which happens to be a startup airline is based in the Dominican Republic and will start offering its services to various nations in the Caribbean, Europe, Latin America and North America as the first flights would start in late 2018.

About CellPoint Mobile

CellPoint Mobile offers airlines, travelers and travel companies across the world such with the fintech and travel-tech solutions like payments, bookings and so on.


13 May 2018
Market Insights | Financial Services

Digitalization has taken the new evolution of new digital banks establishment in the banking sector of the United Kingdom. Now it’s a huge question on how these digital-only banks succeed in overcoming the challenges. As the technology grow, the new software and upgrade being evolving these new system. The new and existing digital-only banks in the United Kingdom are Atom Bank, Starling Bank, Monzo, Tandem Bank and many more. 

Atom Bank: This digital bank has started its operations in October 2016. It has created a heavy technology set-up in its run up to the launch: FIS’s Profile core banking system; FIS/Sungard’s Ambit Quantum and Ambit Focus for treasury and risk management; Iress’ Mortgage Sales & Origination (MSO) suite for mortgage business, front-to-back office; Wolters Kluwer’s OneSumX for regulatory reporting; Intelligent Environments (IE) for front office capabilities; CSC’s ConfidentID system for security; Phoebus Software for secured business lending and account servicing for residential lending; and WDS Virtual Agent for customer queries supplied by WDS (a subsidiary of Xerox).

Starling Bank: This is mostly user-friendly for the mobile user lovers. This is a mobile-only bank targeting “millions of users who live their lives on their phones”. Starling bank offers a personal current account, a business account and a Marketplace, which provides its customers with in-app access to a range of third-party financial services providers, such as insurers, pension providers, investment platforms and mortgage brokers. It also provides payment solutions to other banks, fintechs and payment services providers.

Starling received £48 million ($70 million) of investment in 2016 from Harald McPike, an American quantitative trader, and gained its banking license in summer 2016. It is now looking for £40 million of investment to fund its overseas expansion. It announced its first international location – Ireland – in summer 2017. The bank has developed its core banking platform and mobile apps from scratch in-house. It says its systems are entirely cloud-based running in Amazon Web Services (AWS) and Google Cloud Platform (GCP).

It provides direct access to BACS, Faster Payments Scheme (FPS), STEP2 and Target2 payments schemes and Mastercard debit cards using GPS for card processing and Bottomline Technologies for payments operations.

Monzo (formerly Mondo): Monzo has received its full banking license in early April 2017. It is the mobile first bank and offers a current account with a contactless debit card and a mobile banking app. The mobile app’s is highly sophisticated with high-end features offering intelligent notifications, instant balance updates and financial management.

It has partnered with Thames Card Technology for debit card production and personalization. It has built its own technology which it used is mainly open source: Linux, Apache Cassandra distributed database (used by the likes of Apple and Twitter), Google’s Go (golang) programming language at the back-end and PostgreSQL relational database. The system is hosted at two data centres in the UK on Mondo’s own hardware. There is a team of 16 people working on this. GPS is the processor for Monzo.

Tandem Bank: Started its operations as a digital banking in November 2015. Tandem’s focus is on helping people manage their money rather than on direct product sales, according to its founders. It plans offer current accounts, credit cards, plus savings and loans. Tandem will have a “brick and mortar” call center to deal with customer queries and more complex transactions. In November 2016, it started inviting its community of 10,000 “co-founders” to be its first customers.

For its technology, the bank has turned to Fiserv and its Agiliti platform. Banking Technology understands that Temenos’ T24 and FIS’s Profile were also in the running for this deal. Agiliti is a shared Software-as-a-Service (SaaS) offering, hosted by Blue Chip. It has around 18 Fiserv and partner applications, including Fiserv’s Signature core banking system. In August 2017, Tandem announced the acquisition of Harrods Bank, which is expected to bring £80 million of capital from Harrods’ current owners and a banking license. The acquisition was completed in early 2018.

13 May 2018
Market Insights | Financial Services

In order to give global solutions for Secure Digital Identification, Giesecke+Devrient and IDnow have joined hands and have combined their worldwide market presence and biometric, artificial intelligence.

For digital identification both G+D mobile security and IDnow GmbH have made alliance and are planning to develop and market biometric and AI-based products with superior performance. A completely automatic remote identification solution for the international markets is the first success of this cooperation.

The Corporate Venture Unit of Geisecke+Devrient (G+D Ventures) has taken a small share in IDnow becoming a part of a multi-million Euro investment to support the research and development in order to increase the financing of Munich-based company.

The extent of the global market of the digital identities for its onboarding and management is expected to be approximately over 10 billion Euro. To build confidence in the digital economy of the developments of market in the coming days like regulating the finances, adopting digitization in business and e-government processes, Digital identities a very important. Continuously growing needs with regard to data privacy and the experiences of the customers will further support the necessity for the global solutions to make sure that the management of digital identities will be secure, simple and reliable.

Rupert Spiegelberg, the CEO at IDnow said that they were happy for the trust that Giesecke+Devrient has shown in them and that for digital identification, they would together give biometric and AI-based products. He added that G+D is their ideal partner as G+D is present globally and has expertise.

The CEO of G+D Mobile Security, Carsten Ahrens said that the key in Creating customer confidence is the safe management of identities in their focus market payment and connectivity. He added that they were delighted to make alliance with IDnow to fulfill their aim of giving secure remote identification. Secure and easy onboarding is the beginning of a prominent digital customer journey. He further added that their first combined projects have already started and that together they joining the global expertise of G+D and the major identity platform of IDnow and that they are going forward a fast pace towards their aim.

About Giesecke+Devrient

Giesecke+Devrient is a German-based company which was founded in 1852 and is a global security technology group. With over 11,000 employees it has joint ventures in 32 countries which make sure customer proximity across the world and it is in a good competitive position.

About IDnow GmbH

World’s most advanced machine-learning technology for its identity-as-a-service platform which has the ability to verify billions of people from hundreds of countries is provided by IDnow. It was founded in 2014 and is now one of the swift growing fintechs in Europe. In 2017, IDnow was awarded “Most Successful Fintech” for its success.

13 May 2018
Market Insights | Financial Services

With big giants like Apple, Samsung and Google have been allowing its customers to use mobile payments and do instant transactions in the United States of America. Since many years, these payments pundits have declared it to be the “year of mobile payments.” Apple, Samsung and Google have successfully learned in getting consumers and merchants to buy via mobile payments haven’t always been easy.

Since years, there is confusion between mobile payments and payment via mobile. Many Tech and payment companies have struggled to define this confusion precisely what mobile payments are. Were the payments made using a mobile device as the payment mechanism, or were the payments made from a mobile device? The difference fragmented the industry. Now in 2018, this confusion has been solved: It doesn’t matter how mobile payments are defined as much as it matters that mobile payments, as a whole, will determine the future of retail.

With digitization, the Apps are taking a new step in making its customer access and transact a payment in minutes and government is encouraging these giants in implementing these Apps and citizens to access them. This is also a way of making the things paper-less and ecofriendly. Apple has all but given up on promoting Apple Pay as it goes all in on its P2P Apple Cash app. Zelle has united banking networks and made it possible for consumers and businesses with different banks to pay each other. PayPal continues to gain ground with merchants and consumers and remains a staple at checkout. Google has finally figured out its mobile wallet plans and merged Google Wallet with Android Pay to create Google Pay. It took years and many failed innovations to get here, but the time is finally right for the mass adoption of mobile payments.

Now it’s a debate in 2018 that which mobile payments player would win out — and which solution would vanish. The reality is that there is still plenty of room for a multitude of mobile payments services now. The main task is attracting merchants and influencing them in making their customer use these apps in making payments. The free bees and promotions are also a point of attraction for new customers. The top most important criteria are creating a trust and secured payment mode. It’s up to merchants to equip themselves with the right software and hardware that allows them to accept their customers preferred payment methods. Now all the payments like However, payment ubiquity, solution convergence and the ability to process payments on any device will ultimately become essential. The evolution of the POS over the last few years shows why now the time is.

Goodbye Legacy Systems, Hello Mobile-Point-Of-Sale

Perhaps consumers aren’t rushing to pay at the physical POS with mobile payment apps, but mobile has finally ignited in a way that’s changing how merchants think about their checkout solutions. Customers expect more from their merchants, and today’s mobile payments solutions have paved the way for the future of how consumers interact with business.

This is where mPOS systems come into the mix. Not only are legacy systems sometimes clunky to use and hard to upgrade, they are out-of-date with what the market demands. More than ever, customers expect solutions to be flexible, mobile and reduce friction points at checkout. The rise in popularity and ease of use of mPOS systems has paved the way for mobile payments apps to gain traction in the merchant ecosystem.

The exact mix of technology, security, and API integration methods have lastly created an easier path for merchants looking to stay ahead of mobile payments innovation curve. Now, its revolutionary that these mobile payments become widespread, mobile will continue changing how companies conduct businesses with their customers. In 2018, the statistics say that mobile will shape the retail industry and e-commerce marketplaces faster than Security, speed, and flexibility are consumer desires that will continue to grow, and mobile payments are the answer.

13 May 2018
Market Insights | Financial Services

Loyalzoo, a digital loyalty service has made alliance in the US with Vantiv, a major operator in payments industry. Vantiv is now Worldpay. Worldpay has made the SmartPay available for the first time by making use of the Aevi open platform. Featuring loyalty software bundled on each terminal, SmartPay is a latest line of smart terminal point-of-sale systems.

Bringing together various services and applications into open payments acceptance ecosystem, SmartPay allows merchants to do trade using their smart POS terminal. A wide range of services can be included into the open system like inventory management as well as loyalty programs. By the loyalty points provided, it is possible for the businesses to reach out to their customers, and also helps in understanding purchasing habits and behavior in a better way.

When the announcement of the alliance was made, Jon Pollock, SVP of Product Management at Worldpay said that the demand for smart POS systems was increasing at a noticeable rate and that they have an intention to provide the SMB merchants with business apps with a desirable quality as well as payment services to support and propel growth and make their processes more efficient. He added that the inclusion of Loyalzoo in their application bundle gives significant value because effective loyalty programs are very important for merchants.

Talking about the importance of the partnership, Loyalzoo CEO, Massimo Sirolla said that they were more than happy when they were approached by Aevi and Worldpay to make an alliance on their new project. He further added that what made Loyalzoo the right fit for the ambitions of Avei and Worldpay was Loyalzoo’s knowledge in cardless loyalty and their commitment in making the merchants’ as well as customers’ experience as easy as possible.

A wide range of application bundles designed to make the best of the needs of the business to all the merchants across the US will be offered by Worldpay and in each of the bundles Loyalzoo will be made available. This allows the merchants using new SmartPay terminals of Worldpay to run their own loyalty program without a need to pay anything extra for the service.

Using Loyalzoo merchants can enhance the retention ratio of their customers as they can host their own loyalty program. Since its launch, Loyalzoo has been giving merchants and customers the smoothest experience as the merchants can give loyalty points from their already in place POS set-up.

Loyalzoo is committed to take its model to a far-ranging market with the increasing demand for smart POS terminals which are capable of integrating g payments acceptance with different business services.

About Loyalzoo

Helping small and medium sized businesses in competing with larger ones by allowing them to setup their own loyalty program in an easy way is the aim of Loyalzoo which is based in London.

About Worldpay

Worldpay is the one that gives electronic payment processing services in the US to merchants as well as financial institutions.

13 May 2018
Market Insights | Financial Services

As it is known that the payments industry is undergoing a drastic change over the last few years, it is expected that the change is going to continue even in the future. Currency is being quickly replaced digital payments as a main instrument for payment transactions. As it is becoming easy to access and the technology is becoming affordable and reliable it is likely that in the near future the society is going to be a cash-less one.

As the digital payments are giving confidence winning the trust by the transacting parties as they are easily available, safe and reliable and as the digital payments are very easy and can be used quickly it is considered more convenient than cash transactions.

Taking the above points into account, the Reserve Bank of Australia has taken up an initiative which it named as the New Payments Platform (NPP). The NPP is expected to direct the Australian market into a cash-less one. In order to build the New Payment Platform, thirteen financial institutions among which there were four leading banks of Australia have signed up.

The main features that the basic payment infrastructure provided by the NPP offers to the consumers in Australia are that the consumers can make the payments almost instantaneously in less than a minute making the transferred funds available for payee to use. This infrastructure will be available any time and any day of the year. There would not be any data loss in case of during any outage for the transactions and it is estimated that the maximum down-time per month would be two minutes. Making it easier, is the simple addressing where one need not use complex account codes and branch codes of the payee. Phone number or an email ID would be enough.

NPP is like the operating system on a mobile phone and similar to apps built on the os here we have overlay services which are capable of offering additional features to both retail as well as business customers so that the specific needs of their clients can be addressed.

Many small financial institutions haven’t signed up for the New Payment Platform as they were not able to invest and the expectation is that in order to enjoy the benefits offered by NPP, they are now going to tie up with others. With this approach the NPP is expected to meet the changing needs of a continuous digital economy in Australia as the customers, businesses, and government departments are provided with the capability to do quick and instant transactions between two parties with ease.

The NPP is expected to completely change the behavior of customer as some estimates say that Australia will become a cash-free society by October 2022, while some other estimates say that it may happen by 2027.

13 May 2018
Market Insights | Financial Services

Planet Payment, Inc., is one of the leading providers of international payment processing and multi-currency payment processing services. It has now announced that JCB merchants in Hong Kong are now being provided authorization services by Planet Payment supporting both authorization and settlement services.

Announcing the extension of alliance with Planet Payment, Executive Vice President at JCB, Toru Yamaguchi said that they were pleased to get high security authorization and also reliable settlement services and that they had been in partnership for many years now and that they are delighted.

Tommy Chau, the Managing Director, Asia Pacific at Planet Payment said that they were looking forward to working with them in the coming years and that Planet Payment is more than happy for the expansion of their relationship with JCB and to add authorization for the merchants in Hong Kong.

About JCB

In Japan, JCB is a leading payment brand and payment card issuer. Since the launch of its business in Japan back down in 1961, it has begun to quickly expand its business across the world. JCB has tie-ups with many banks and financial institutions worldwide in order to expand their merchant coverage and the member base of cards as a strategy to grow internationally. JCB is committed and provides high-quality service and quality products to its customers all across the world.

About Planet Payment

Completely owned by Fintrax Group, Planet Payment is one of the leading international payment and multi-currency processing services providers with over three decades of experience in the same. Planet Payment caters its services to hundreds of partner banks and thousands of merchants and processes in billions in transactions. It has its offices in five continents and 55 countries with 30 offices and over 1,000 employees. Planet Payment is like a helping hand to merchants and assist them to sell mote goods to their customers. Planet Payment allows their customers and merchants to shop, transact, make easy payments in multiple currencies.

13 May 2018
Market Insights | Financial Services

This move of investing is an indication of the ongoing support of Visa to the fast growing fintech community in the area.

An announcement has been made about the strategic investment in YellowPepper by Visa. YellowPepper is one of those first ones to start mobile payments in Latin America in order to increase the pace of development and innovation in the digital payment technology. After Visa and YellowPepper have started an alliance in 2017, this new strategic investment of Visa which happens to be the first of its type is going to make the shared vision strong across Latin America and the Caribbean in terms of increasing the usage of mobile payments.

Increasing the opportunities for tokenized payments, access to visa API’s and the expansion of the usage of push payments via Visa Direct will be the initial focus of this investment.

Eduardo Coello, the regional president for Visa Latin America and the Caribbean said that by this investment in YellowPepper, they would like to bring out the best of the technology of Visa and the abilities covering a large number of partners and clients in the particular region. He added that Visa has always been searching for new investments that give them the opportunity to accelerate innovation by finding creative methods to support for the technology of their clients. He further added that the experience of YellowPepper in the region and their existing client base are the reasons which made them an ideal partner in building the future of payments.

Co-founder and CEO at YellowPepper, Serge Elkiner said that for many years they had been a go-to service for leading financial institutions and that they were expanding their invulnerable and effective technology in building a strong and healthy ecosystem in Latin America and the Caribbean to make cashless payment easy.

On a regular basis, Visa evaluates different kinds of platforms in order to understand which of those have the ability to improve digital payments for their customers.

About Visa Inc.

Being the world leader as far as the digital payments is concerned, its mission is to connect the world with the help of a creative and secure payment network which allows both individuals and businesses to make easy payments. Different places of the world are being provided with safe and reliable payments by VisaNet and it can easily handle thousands of transaction messages every second.

About YellowPepper

YellowPepper , a Miami based company was founded in 2004 and in Latin America it is the fintech pioneer. YellowPepper has its own technology and has alliances with major financial institutions and startups in the region. In order to change the face of purchasing experience, YellowPepper provides a digital platform to its consumers, processors as well as merchants in six Latin American countries.

13 May 2018
Market Insights | Financial Services

Open banking will be an opportunity for both financial service providers and consumers if the consumers agree the terms on their data sharing. It is possible when banks can influence its customers for data sharing benefits which helps them make higher quality decisions, in return an excellent customer service can be offered to the customers.

The United Kingdom’s leading nine banks are progressively going to share their customer’s financial data especially the earnings, spending’s and bills etc., with third parties, when consumers give them permission to them. For the financial service providers, there is this opportunity to use the data volunteered to progress the products they offer and to supply better, further enhanced services to their customers. They are ‘banking’ on being able to offer differentiated services that will impress and even attract new customers – which are great news for the public who will benefit from the competition.

According to Vitesse media research, the points to different levels of understanding about how consumer data is used by organizations. The study – conducted over 12,000 hours with 2,000 people – identified four distinct groups: ‘The Unaware’, ‘The Accepting’, ‘The Cautious’ and ‘The Incognito’ – revealing that there are varying levels of trust and engagement throughout the data exchange process.

They also said that the unaware make up 22% of the population and have little engagement or understanding of how their data is used. They are often excited to access the product or service they desire and they click ‘accept’ without truly understanding the implications of what they are doing. In terms of open banking, these customers are most likely to consent to using the service, but banks will need to explain its meaning concisely.

The Accepting (41%) will consent to their data being shared, but they are not enthusiastic about it. They simply see the exchange of information for products and services as an inevitable trade-off. Financial service providers will have the best chance of engaging them in open banking if they are guided on the benefits of doing so.

Considering altogether, it is very important for the financial banking institutes to highly understand the customer and their mindset. This would help them to convince many of their customers to give access and permission to share their data and hence furthermore sophisticated service could be offered from the third parties as well which suits their requirement. It is usually a win-win basis to the banks as well as its customers as both will get their highly satisfied outcome.

It is now that open banking should be encourages and be an opportunity should be an opportunity for both financial service providers and consumers. If banks can persuade people of data sharing benefits then they can make higher quality decisions, while in return their customers can expect a better service.

13 May 2018
Market Insights | Financial Services

With rest of the world encouraging card-less payments and mobile wallets US is still back in making the successful implementation of this to their customers.  For couple of years, card issuers and payment companies operating in the US have so much time on EMV updates to their infrastructure. Few banks have adopted a quasi-contactless strategy by getting into the mobile wallet game.

During this EMV liability shift, the US payments ecosystem is taking time to settle in. While EMV adoption has seen a steady rise in the US, mobile wallets struggled in coping the challenging and succeeding in the US market to gain much traction due to clunky user experiences and a lack of general awareness among end users. Also, US payment companies have had a chance to see how popular and effective contactless payments have become in other markets.

With this result, issuers are now strident for more contactless cards to be placed into circulation. At one time it was an unclear ROI for contactless cards is driving now proven and makes financial sense to pursue. The simple user experience of “tap and go” makes a hassle-free transaction and effortless and timeless at the point of purchase and aligns perfectly with a retailers’ desire to create improved in-store shopping experiences.

According to ABI Research, US contactless card shipments, which numbered 25.7 million in 2016, are projected to surge to 229.6 million in 2021.

The new cards will operate on a dual-interface chip which allows cards to be dipped (using the card’s chip) or tapped (using the card’s embedded RF antenna) at compatible payment terminals making it convenient to the customers. For those merchants who have already upgraded their payment terminals for EMV (many small ones still have this bridge to cross), the terminals are technically capable of accepting contactless cards.

Each card provider has set a limit for “tap and go” contactless transaction. Most often tap and go limits are set below $100. In the event of a larger purchase, users are prompted to enter a PIN to secure the transaction.

The contactless payment is a new hit for the US in 2018. Many of the customers prefer paying using contactless with hassle-free and timeless consumption benefit with contactless up to the certain limit wherein they don’t have extra charge by using this service. This method will continues to be a hothouse of innovation and creative solutions, and contactless is the next trend of payment technology coming to the US beginning this year. This mode of payment is clear and it comes to contactless so there’s no reason to wait. ISVs and payment devices manufacturers who prepare now will be well-positioned to serve existing customers and potentially steal market share from competitors lagging behind.

Hope to see this service will rise a next level of transactions a big hit and have further more developments making the customers enjoy the benefits.

13 May 2018
Market Insights | Financial Services