Mike Chambers

There’s lots to like about the now published #NationalPaymentsVision for the UK… I can recognise a number of priorities and challenges The Payments Association (and others) have been talking about for some time. That in itself, is hugely encouraging. The Government is listening. A UK Government making a commitment to collaboration, and that sees the importance and opportunity of the Payments industry, is incredibly positive and something I applaud. On initial reading, some key points within the detail: The vision - “A trusted, world-leading payments ecosystem delivered on next generation technology, where consumers and businesses have a choice of payment methods to meet their needs.” ·      “Payments Vision Delivery Committee” – Senior representatives from the FCA, PSR, Bank of England, and chaired by HM Treasury. ·      Innovation, Competition and Security (3 key pillars driving all activity) ·      BoE and PSR will lead on requirements for upgrades/replacements for FPS and UK retail payments infrastructure. Approach agreed no later than end Q2 2025 ·      Reforming of PAY.UK ·      Coordination between regulators needs to improve - the government is concerned that the collective impact is hampering the sector’s capacity for innovation and growth. ·      Commitments to ‘explore’ CBDCs and a Digital Pound ·      Government support for adoption of digital identities in financial services ·      Priority initiatives in Open Banking and Fraud (Financial Crime) o  PSR commits to 12 month review of APP R after 12 months (plus recognition of role of tech and telcos) o  Regulators to examine data sharing initiatives across the financial services sector. o  Adequate consumer protection must be delivered for Open Banking payments, and the government intends to address this through introduction of a dispute resolution process o  The FCA is to be the UK’s regulator on Open Banking ·      A push to boost cross-border activity and international interoperability, but not at the expense of consumer protection or financial stability. Now is the time for #action and #delivery.  The Payments Association will play it’s role, and looking forward to working with government, regulators and the wider industry to support this vision. https://lnkd.in/e6RsUU7r

21

Very interesting article in the Financial Times which sums the situation up perfectly. The new entrants have moved the market on with the services delivered, however despite being used for their "free" or innovative services, users still remain wedded to the incumbents. https://lnkd.in/eR3kaGXV

30

5 Comments

Payment Systems Regulator Expanding VRP in the UK 🇬🇧 Payment Systems Regulator (PSR) sets next steps on expanding Variable Recurring Payments (VRP) in the UK 🇬🇧 based on Published response to call for views last December. The call for views set out initial proposals on how the PSR could support the Phase 1 expansion of VRPs to regulated financial services, regulated utilities sectors, and local & central government. Expanding VRPs enabled through #openbanking, VRP allow customers to safely setup recurring payments of varying amounts, i.e., household bills with greater visibility and control compared to existing payment methods. PSR’s publication summarises stakeholder feedback on key areas around VRP expansion including: ⭕️ Coordinating expansion through a multilateral agreement. ⭕️ Mandated Participation. ⭕️ Pricing principles and possible pricing intervention. * Published Response in the comments below 👇🏻 #fintech #vrp #payments Source: PSR.

58

1 Comment

The Payment Systems Regulator’s (PSR) interim report on card scheme and processing fees is out - covering some crucial aspects of the payment ecosystem. Thoughts below… ⬇ Highlights 💡 1. The report underscores the complexity of current scheme and processing fees, highlighting the need for greater transparency from card schemes. Decoding these fees is currently challenging for many businesses. 2. The PSR indicates that existing fees might inhibit the rise of alternative payment methods, suggesting a more competitive landscape could emerge if these barriers are addressed. The complexity of the fees might also be limiting the rise of players that compete with the schemes on additional services - as it’s unclear for acquirers which services are core and which can be procured from these alternative providers. 3. The report identifies an imbalance in bargaining power between acquirers and issuers, emphasising the need to ensure that the network's benefits are balanced between the buyer and seller sides. Proposed Remedies 🔎 1. Encouraging card schemes to engage more constructively with acquirers and merchants to enhance offerings and foster a more collaborative environment, for example by consulting before introducing new fees. 2. Increasing transparency on what services are optional vs. mandatory could allow smaller providers to compete more effectively, driving innovation by allowing specialised providers to build on the schemes’ core platform. 3. Implementing greater financial reporting for continuous PSR supervision aims to pre-emptively address potential issues and prevent them from escalating into major problems. Really looking forward to contributing to these discussions and supporting the development of sustainable solutions. We need measures that will boost competition in the long run and benefit the entire payments landscape, including new methods like Account-to-Account (A2A) payments. Teya

24

1 Comment

🟧🟩🟦 Open Banking: Fueling the Future of UK Public Services 🚀 Open banking is gaining serious momentum in the UK public sector! 🏦 🟠CCS DPS: The Crown Commercial Service launched a Dynamic Purchasing System (DPS) to boost open banking adoption. 🟢Industry Optimism: Fintech leaders like Innovate Finance and TrueLayer are bullish about the DPS accelerating public sector use. 🔵Benefits Galore: Open banking can cut costs, reduce fraud, and improve user experiences for citizens. 🟠Data Power: The upcoming DISD Bill could unlock even more potential for innovative public services. 🟢HMRC Success: HMRC's use of open banking has paved the way for other government departments. 🔵10 Million Users: Over 10 million people are already benefiting from open banking in the UK! 🤯 Let's make open banking the cornerstone of efficient and accessible public services. #OpenBanking #Fintech #UKTech #DigitalGovernment #PublicSector #RokaSearch

6

A welcome easter egg 🥚 in today's Bank of England piece on innovation in money and payments, is confirmation that the new Government 👉 will 👈 take forward the National Payments Vision 🛣 That's another tick in the box ✅ for open banking payments, after the Government also brought back the Smart Data Bill, key for underpinning open banking standards. Now if only we could see some progress on VRP from the Payment Systems Regulator and acknowledgment of the risk APP fraud rules pose to growth in the payment sector... Read our piece on the National Payments Vision: https://lnkd.in/eTTiGwNR The Bank of England's Approach to innovation in money and payments: https://lnkd.in/eiFKmxTE #progress #growth #payments #openbanking

64

21 Comments

The Bank of England's Deputy Governor has said the UK is on the cusp of a technological revolution in finance. It's a trend we're seeing first-hand at The PHA Group, as we work with an expanding portfolio of payments clients around the globe. A recent blog here highlights the payment trends that will define 2024. In short, increased competition between big banks and challenger payment entities will trigger market consolidation. The goal for these challenger entities is ensuring they assume a sizeable market share and stand out from the competition. https://lnkd.in/eRZr92k6

8

1 Comment

Interesting update from UK Finance that shows over a third of UK consumer payments are now contactless. Here are the key figures for 2023 The total number of payments made in the UK increased by five per cent to 48.1 billion  Almost four out of ten (38 per cent) of all payments made in the UK during 2023 were contactless One third of UK adults were using mobile contactless payments at least once a month The number of cash payments fell to six billion, with cash representing 12 per cent of all payments made in the UK Faster Payments overtook Direct Debit to become the third most used payment type in the UK in 2023 

4

This survey reveals the age group that uses cash most – and the results may surprise you. Heavy use of notes and coins by young people flies in the face of conventional wisdom that they rely on mobile phone banking apps such as Revolut, Google Pay and Apple Pay. The An Post (Irish Post Office) research found that almost almost half of 18- to 24-year-olds keep up to €40 in emergency cash. The research comes following the recent Irish National Payments Strategy unveiled by Finance Minister Jack Chambers which set out that government bodies will have to continue to accept both cash and electronic payments for goods, services or fines. Charlie Weston Irish Independent #payments #cash #NationalPaymentsStrategy https://lnkd.in/ejSwdQ59

7

European #DigitalBanking Plans Between Two Industry Giants Are Taking Different Approaches The UK’s Starling and Monzo, are taking different paths in their quest for international growth, ahead of their anticipated IPOs. https://buff.ly/3KvTCNG #FinTech #FinServ #Banking

5

The PSR’s new rules on APP fraud refunds have sparked debate about their impact on FinTechs, but what about the SMEs they support? SMEs are the backbone of the UK economy, and they rely on payment providers to thrive. Read more on my Finextra blog: https://lnkd.in/eas8WDqX #Fintech #APPFraud #ScottsThoughts #SMEs

17

It’s not very often reviews gets adopted as National Vision, sometimes and in many occasions government policy reviews don’t end up seeing the light of day but our contributions into the Future of Payments Review 2023 has now been published as the UK National Payments Vision NPV. Delighted our contribution and many others formed UK economic growth strategy decades to come in establishing UK as one the leading Nations for driving payments innovation! https://lnkd.in/dgR9RgZD #payments #fintech #UK #vision

8

2 Comments

25 years ago the UKs banks joined forces to ensure that everyone could withdraw cash from any ATM regardless of whether it was operated by your bank or not. Before that, you often faced paying a fee if the ATM didn't belong to your bank. Something that is still the case in many countries across the world today. The network effect of this agreement was brilliant for everyone in the country and has driven huge efficiencies in the cash supply chain over the last quarter of a century. So we shouldn't underestimate the importance of this initiative. For the first time, everyone will be able to use an ATM which is not operated by their bank to PAY IN cash as well as take it out. This has the potential to keep cash deposits sustainable through leveraging the network effects of sharing. That's important to ensure cash remains a viable payment mechanism and continues to be accepted by businesses - making it easier for everyone to deposit cash into their account. https://lnkd.in/eC-Sd-Mn

302

11 Comments

UK fintech sector keen for ‘momentum’ on public sector open banking use. Fintech sector representatives have said they are hoping to see momentum in the UK public sector’s use of open banking, just over six months after the government’s procurement agency launched a ‘dynamic purchasing system’ to encourage it. The Crown Commercial Service (CCS) – an executive agency of the Cabinet Office – set up the ‘Open Banking Dynamic Purchasing System (DPS)’ as 2024 dawned with the ultimate aim of ‘reducing the costs of receiving money into public sector organisations, as well as reducing fraud’. Twenty companies – all looking to supply open banking-related services to the UK public sector – have appeared (one by one) since then on a UK open banking ‘appointed suppliers’ webpage. Lenvi #openbanking #fintech #lending #lendingplatforms #consumerlending https://lnkd.in/egK7NPGn

4

The ISO 20022 deadline for CHAPS has moved from Nov 24 to May 25... or has it?   It’s worth noting that Bank of England have made it very clear that they will not move the deadline beyond this point!  The Bank of England will expect banks, and their customers to work towards the deadline as if it was still the end of November. The May deadline is just a buffer for those businesses who aren’t ready. In the latest episode of our “Mastering ISO 20022” series, I discuss the updated deadline, and specifically the fact that even this extended timeline still requires banks and corporates to move quickly to prepare.  

27

2 Comments

Two opportunities to shape the future of the merchant payments landscape are coming up this Thursday! The voice of the merchant community is crucial if the right outcomes are to be realised. Government and regulators want to engage more strongly with the merchant community - and this is your chance. Vendorcom has provided early warnings, alerts and updates over the past 20 years, helping companies influence future outcomes, offer a better customer experience, build their businesses, and save money. This week's Horizon Scanning Updates will cover two topics that merchants and their payments solutions providers should have at - or near - the top of their horizon scanning agenda: ***The Future of Identity*** (ONLINE on #Zoom) Date: Thursday 16th May Time: 10:00-11:30 BST (London) We're familiar with #identity and #authentication being at the heart of our payments processes - but inter-operable, trusted identities are also being recognised as an essential part of many merchants' fulfilment processes when selling restricted goods and services.   The OIX - Open Identity Exchange is creating the rules, tools and confidence that will bring trusted, universally accepted, identity to every individual. Merchants, as the relying party, are vital to bringing the benefits to citizens and consumers. Get involved now! Merchants can register for free at: https://lnkd.in/eWta6qBw ***Working with Regulators*** (ONLINE on #Zoom) Date: Thursday 16th May Time: 14:00-15:30 BST (London) Payments regulators are beginning to appreciate the vital input of merchants in their efforts to create a better payments systems ecosystem. Generic, banking-centric payments approaches are giving way to a realisation that the merchant payments ecosystem is distinctive and has been poorly served by legislation and regulation that has attempted to regulate by proxy. The Payment Systems Regulator in the UK is at the mid-point of its five-year plan and is seeking merchant input to a mid-term review. We'll have more of the same if the merchant voice doesn't come through loud and clear - and who wants that!? This is your chance to deliver a better future in payments regulation. Hear from PSR Chair, Aidene Walsh and Head of Strategy, Analysis and Engagement, Dan Moore - and have your say! Get involved now! Merchants can register for free at: https://lnkd.in/eQBqpt7y #MerchantPayments, #accountspayable, #accountsreceivable, #Bankers, #Banking #B2B, #cashflow, #Change, #creditcards, #d2c, #embeddedfinance, #embeddedpayments, #financialservices, #fraudprevention, #instantpayments, #influence, #invoicing, #merchants, #merchantservices, #mpe2024, #openbanking, #ordertocash, #paymentorchestration, #payments, #paymentprocessing, #paymentservices #PCI, #PCICM, #PCIDSS, #PSD2, #PSD3, #R2P, #SCA, #Security, #SEPA, #Risk

17

7 Comments

This milestone is a mixed signal for me. While it highlights Monzo's potential and growth opportunities, the decade-long journey to break even and higher provisions for bad loans suggest caution. Many investors typically seek break-even points within three years, raising questions about the sustainability of the current fintech model https://lnkd.in/dTCjbFz6

18

Regulations to Slow payments - Sunday musings In the interest of delivering to high expectations (err, shouldn't my payments be as fast as an email !) payments have become faster and faster. Everyone is on this, banks, fintech's, providers all promise delivery of payments in seconds if not minutes. The stated objective is we can do anything faster and quicker and dare I say cheaper. What happens though is rampant fraud where the gullible - young and old alike become victims of fraud From experience, once money moves out of your account, it takes well-meaning entities an enormous effort to recall payments. There are kill switches installed and providers like SWIFT have GPI which can potentially stop a payment. There are some victory stories of monies being recovered and the unwitting remitter made whole. But there are many who lose the money to malicious actors. God save you if this payment goes cross border. I am an advocate of slower payments ! Enough time to check and recheck payment instructions before moving money. So, happy to see this now coming in a regulation. Other countries will follow suit for sure. UK payments could be delayed up to three days to prevent fraud This draft regulation would act as an amendment to the 2017 Payment Services Regulations, which requires PSPs must execute a payment within a maximum time limit. This move comes after findings that UK bank fraud losses topped £1 billion last year. Authorised Push Payment (APP) scams take up a large part of this cost, with APP reimbursement legislation coming into effect on 7 October from the Payment Systems Regulator (PSR). The PSR recently confirmed it would be cutting the reimbursement limit of this legislation to £85,000. https://lnkd.in/gDMEtYKk Thoughts ?

18

2 Comments

Things worth reading: 8th November 2024 - Things we're reading today include ... Detroit to Accept Cryptocurrency for Taxes and Fees by 2025 Allica Bank Retains Spot at Top of the Deloitte UK Tech Fast 50 Ranking COP29 should create clear policy roadmap to spur bank lending for renewable energy

8

2 Comments