Iana Dimitrova

💡 Last week European Payments Council published third version of Mobile Initiated Sepa (Instant) Credit Transfer and Interoperability Guidance. Below is few highlights from the guidance SEPA Instant Credit Transfers are gaining traction within the SEPA framework, with mobile channels anticipated to play a crucial role in their adoption. Retailers being increasingly interested in SCT-based payments for both in-store transactions and mobile commerce, viewing them as a complement to traditional card payments. Several European countries have already launched various solutions in this area, reflecting the growing momentum for instant payments. Mobile Initiated SEPA (Instant) Credit Transfers (MSCTs) represent a modern approach to digital payments, allowing users to initiate instant credit transfers directly from their mobile devices. 💡 MSCT Transaction Mechanics MSCTs encompass both SCT Inst (SEPA Credit Transfer Instant) and SCT (SEPA Credit Transfer) transactions initiated through mobile devices. These transactions utilize existing payment infrastructures in the inter-PSP (Payment Service Provider) space, focusing on interactions beyond this space, such as between the payer's mobile device and the point of interaction (POI). 💡 Modes of MSCT Transactions There are two primary modes of MSCT transactions based on how payment initiation data is exchanged: 💡 Payee-Presented Data: In this mode, the payee provides necessary data to the payer, either through direct presentation or prior sharing (e.g., P2P payments). This method is widely adopted for various payment contexts, particularly P2P and consumer-to-business (C2B) payments at physical points of sale (POI), often using QR codes. 💡 Payer-Presented Data: Here, the payer provides their identification data to the payee, which can be shared through proximity technology or manually entered. This mode is appealing for businesses wanting to offer enhanced customer experiences but faces challenges such as the need for compatible POI terminals and security concerns regarding data generation. The standardization of QR codes for interoperable SCT Inst payments is currently in the final approval stage by the European Committee for Standardization (CEN). 👉 Click here to read the complete guidance: https://lnkd.in/dyAiPbSz

15

EXCLUSIVE: "Format for Success" - Antoine Cuypers, Intix and Leo Wagner, FIS in 'The Fintech Magazine' "Intix is headquartered in Mechelen, Flanders – a modest northern Belgium city with 88,000 inhabitants that’s known principally for its robust vegetable cultivation. The company has a highly-skilled workforce that’s counted in the 10s not hundreds. And yet, like several fintechs to have successfully emerged from this comparatively small nation, Intix is having a disproportionately big impact on financial institutions across the world. As a niche technology provider, helping banks screen and analyse transactions, its clients include some of the best-known names in commercial banking, such as Société Générale and Nordea. An in 2023 it signed a joint deal with one of the giants of fintech, FIS. Intix has been described as a kind of Google for banks." https://lnkd.in/eY-iqFTq #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

31

1 Comment

EPI launches Wero wallet in Germany The European Payments Initiative (EPI) has launched its mobile-first wallet and instant account-to-account payments system in Germany, with other counties set to follow in the coming months. German Sparkassen and Volksbanken, Raiffeisenbanken customers can now make instant money transfers from account to account between individuals, via their banking app. Deutsche Bank will launch wero later this year, starting with Postbank. Wero enables mobile payments from one phone to another. Unlike traditional transfers, Wero users do not need the recipient's 22-digit account number (IBAN). Instead, a mobile phone number or email address can be used for real-time money transfers. Next year, Wero will get the ability to pay any small professional from the wallet, and also pay merchants online and upon invoices via QR code. This includes the ability for consumers to manage recurring payments for subscriptions or installments, but also to pay in merchant apps at point of sale without going through the cashier. In-store payments at the cash register will also be added in 2026, along with other capabilities, such as BNPL, merchant loyalty, programme integration and expense sharing. https://lnkd.in/ev3nH8_Z

2

𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐑𝐨𝐮𝐥𝐞𝐭𝐭𝐞: 𝐅𝐢𝐧𝐭𝐞𝐜𝐡𝐬 𝐂𝐚𝐮𝐠𝐡𝐭 𝐁𝐞𝐭𝐰𝐞𝐞𝐧 𝐁𝐨𝐨𝐦 𝐚𝐧𝐝 𝐁𝐮𝐬𝐭 ⚖️ ✅ The Regulatory Tailwinds 1️⃣ Revolut and Weavr.io: These UK-based fintechs have secured critical licences, positioning them as formidable players in banking and embedded finance, respectively. Their success underscores the potential rewards of regulatory compliance and strategic foresight. 2️⃣ Z.ro Bank and Airwallex: With a focus on payments and investments, these companies are expanding their offerings, demonstrating the evolving role of fintech as a comprehensive financial services hub. 3️⃣ Circle's EU Foray: The EMI licence is a pivotal step in the crypto industry's maturation. It signals a potential wave of institutional adoption and underlines the evolving regulatory landscape for digital assets. 🚨 The Regulatory Headwinds 1️⃣ The Consumer Financial Protection Bureau's lawsuit against Acima underscores the importance of ethical lending practices. As regulatory scrutiny intensifies, fintechs must prioritise transparency, fair pricing, and consumer protection. 2️⃣ The hefty fine imposed on PayPal by UOKiK highlights the need for clear and understandable terms and conditions. Fintechs must strive for plain language and transparency in their customer communications. 3️⃣ Coinbase's Financial Conduct Authority fine serves as a stark reminder of the ongoing challenges in customer onboarding and anti-money laundering compliance. Robust KYC/AML procedures are essential for mitigating risks and maintaining regulatory trust. 4️⃣ Qonto's temporary onboarding freeze by Banca d'Italia demonstrates the importance of staying ahead of regulatory expectations. Fintechs must invest in continuous monitoring and improvement of their AML programs. 5️⃣ DBS's fine by Hong Kong Monetary Authority (HKMA) emphasises the need for a strong compliance culture. Effective AML programs require buy-in from top management and employees at all levels. ______________ 💭 The regulatory landscape is evolving rapidly, presenting both opportunities and challenges for fintechs. Building a strong compliance culture is essential to avoid costly penalties and reputational damage. We explore more such trends every week in our 𝐟𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐟𝐢𝐧𝐭𝐞𝐜𝐡 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫 - your warm cuppa brimming with the latest fintech trends and emerging opportunities. Uncover the latest innovations transforming the financial landscape across industries here 👉: https://lnkd.in/gdsckDV2 #fintech #regulation #license #regulatory #payments #embeddedfinance

15

1 Comment

✂️ Cut fees. Reduce costs... Use instant account-to-account (A2A) payments? Across Europe, merchants are dealing with high fees from card and digital wallet providers. ⚡ #InstantA2APayments offer reduced fees and fewer complexities compared to these payment networks. Not only this, but they offer faster, more agile and secure payments for consumers and merchants alike. Read more about the benefits of A2A payments for merchants and how they may enhance your bottom line ➡️ https://lnkd.in/d__EGzuB #MerchantPayments #OpenBanking #A2APayments #DigitalWallets

8

🚨 kevin. Has Gone Bye Bye 🚨 kevin., once viewed as Lithuania's next unicorn 🦄, has officially declared bankruptcy 💔. With ambitions to disrupt traditional card schemes by pioneering account-to-account (A2A) payments at POS terminals, kevin.’s vision seemed promising, but it has unfortunately crumbled. 💳 The company now owes €420,000 to state social insurance, with significant delays in payments to employees and partners. This marks a tough fall for a fintech company that once held high hopes of shaking up the payments industry. Comparisons to Other Fintech Failures: Wirecard: Similar to kevin., Wirecard also collapsed after financial troubles emerged, with billions in liabilities owed to investors and clients. However, Wirecard's failure involved fraud, while kevin.'s downfall seems rooted in operational and cash-flow challenges. Greensill Capital: Another fintech that promised revolutionary financial services but fell due to over-leveraging and liquidity issues. Like kevin., it highlighted the risk of fast-scaling companies failing to manage cash-flow effectively. What’s Next for Payments? kevin.’s bankruptcy raises questions about whether the traditional card schemes will continue to dominate, or if another fintech will step up with a stronger, more sustainable A2A payments solution. 💡 Do you think the card schemes will stay dominant or is the disruption still coming? Let me know your thoughts!👇 #Fintech #Bankruptcy #KevinPayments #LithuaniaUnicorn #A2APayments #PaymentInnovation #CardSchemes #future #fintech #finance

15

8 Comments

Fintech Startup okoora Continues European Expansion With Entry Into Poland “We come to Poland with the belief that the market for currency management solutions can and should be disrupted. When okoora researched the European market, Poland scored high due to its developed banking sector, high level of foreign trade and other relevant parameters. Poland also offers economic incentives that make it seem like a good idea to open an R&D centre here. We believe this is the best place to jumpstart our European expansion,” says Benjamin (Benny) Avraham, founder and CEO of okoora. https://lnkd.in/edfMsFCq #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

18

3 Comments

The latest #payments roadtrip hits #Switzerland. Delighted to see a Fiserv unattended payment terminal alighting the train at Gare de Genève. Worldline who purchased SIX Payment Services in 2018, and Nexi Group appeared most often at Point of sale in my retail experiences though some Nexi terminals still show the Nets brand (who purchased Concardis prior to the Nexi M&A). SumUp and to a lesser extent myPOS did appear on some shop decals particularly for smaller businesses. TWINT is the local payment method to watch. Accepted online as well as instore it has become increasingly important in the #Swiss market with over 70% of the population having an account. It was interesting to see in the one location that I saw a minimum card spend they called out they didn’t have Twint while in a supermarket and on a local online store it was the first payment method offered. The latest Swiss Payment Monitor reports that for the first time mobile payments, which includes Twint, took the top spot among payment methods. PostFinance a division of Swiss Post also offer a local online payment method that can be used by their 2.5m account holders (or rather 2 flavours that will be consolidated as PostFinance Pay). Previously they also had a debit card 'Postcard' that could only be used for local instore purchases but their new PostFinance card is also a Debit Mastercard. Like some other recent trips, having some cash available to reward good service is a good idea as I didn’t have the opportunity to leave a tip by card. If picking up cash from the ATM in the airport wait until post baggage claim as the first ATM charged 3.95 CHF withdrawal fee while the UBS ATMs were free. Bordered by 4 Eurozone countries there were references to acceptance of #EUR in several businesses and I'm sure lots of #DCC transactions in the market. At the airport I did spot a reverse currency ATM for the first time which did seem like a good idea. Great to see one of my favourite crisps Keogh's Farm (there are other crisps available) on the shelves. Would be a great taste of home. À bientôt.

23

1 Comment

Digital Banking Europe: N26 hits profitability 🌟 - Reporting a net operating income of €2.8 million for Q3 2024, marking its first profitable quarter since its launch in 2013.💡 #Fintech #Milestone #Profitability #N26 #DigitalBanking

12

1 Comment

What does PSD3 mean for cross-border payments? An excellent deep-dive report by FXC Intelligence's Joe Baker on this critical topic for the sector: The report will get you up to speed fast on the topic and covers: - What is PSD3 and its benefits - PSD3’s impact on open banking - How this may level the playing field between banks and non-banks - What have been the main EU payments initiatives to date - What the European cross-border payments landscape looks like - What are cross-border payments companies doing to prepare for PSD3 #fxcintelligence #payments #fintech #financialservices #regulation #banking #openbanking https://lnkd.in/edXUtYpf

65

1 Comment

Monzo Bank Announces First Full Year of Profitability Amid Record Growth and Accelerates International Expansion Plans TS Anil, CEO of Monzo, said: “This was a landmark year of record growth for Monzo. We surpassed 9m personal customers and 400,000 business customers, launched game-changing new products, closed a £500m capital raise and, as planned, reported our first year of profitability. I’ve never believed in the idea that a company has to choose between either being mission-oriented or focused on business outcomes. FY2024 proved Monzo is doing both – and that our strategy of placing the customer at the heart of everything we do is working at scale. We’ve achieved scale, growth and profitability, and we have all the right components to seize the huge opportunity ahead.” https://lnkd.in/eKJ_2GnK #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

157

TrueLayer advocates for the UK Government's development of a National Payments Vision, emphasising the importance of clarity, alignment, and certainty in the payments landscape. They propose a clear destination, goal, and timeline to guide this vision, with the aim of transitioning to account-to-account (A2A) payments powered by Open Banking. This transition is expected to increase payment choice, reduce costs for businesses, and enhance convenience for consumers. TrueLayer outlines key enhancements needed to achieve this vision, including cost reduction, speed maintenance, certainty in ecommerce and retail, expanded functionality, and increased coverage at physical point of sale. https://bit.ly/49HbjUz Let us know your thoughts in the comments below 👇 #openbanking #A2A #payments

9

1 Comment

Its only Tuesday and there is a #SocialMediaFrenzy with all the attention that #BlipPay, powered by FintechIO is getting. We must be doing something right. #ReduceTransactionsFees and #BetterCashFlow. * If your average transaction or on-line basket is around £70 and you are currently paying approx 1.5% + 20p per transaction, you will be paying £1.25 and getting your money after 2-3 days. *For the same transaction on Blip-Pay, it will cost you a flat fee of 80p (that’s a saving of 36%) and you get your money immediately. If your average transaction or on-line basket is around £700 and you are currently paying approx 1.5% + 20p per transaction, you will be paying £10.70 and get your money after 2-3 days. *For the same transaction above, it will cost you a flat fee of 80p (that’s a saving of 93%) and you get your money immediately. Switch now to start making immediate saving and let the cash …. Flow in your favour. #ItsANoBrainer Come and see what all the fuss is about...a white labelled on-line platform that can be setup, customised and working for you in a matter of hours. #Savings #Fintech #OpenBanking #OpenFinance #Payments

2

EPI’s Wero Wallet Launch & MUFG’s Investment The European Payments Initiative (EPI) has launched the Wero wallet in Germany, enabling instant account-to-account payments via banking apps for Sparkassen, Volksbanken, and Raiffeisenbanken customers. Deutsche Bank will introduce Wero later this year, starting with Postbank. 🌍 By the end of July, KBC customers in Belgium will gain access, with France following in the Autumn. EPI, backed initially by 31 major Eurozone banks, aims to rival Mastercard and Visa by offering a comprehensive digital wallet, P2P payments, and more. 🏦 Despite setbacks with member departures, EPI acquired the Dutch payment scheme iDeal and Luxembourg’s Payconiq to support Wero. Future expansions include paying small professionals, online merchants, and in-store payments. CEO Martina Weimert emphasises Wero’s goal to simplify and secure all payment types through a single wallet. 💼 Meanwhile, MUFG and the Finnoventure Private Equity Trust I fund have invested $195 million in Thai fintech unicorn Ascend Money. 💰 Ascend Money, part of the Charoen Pokphand Group, operates the TrueMoney super app, offering services like e-payment, lending, BNPL, investment, and insurance. 🌐 With a strong Southeast Asian presence and 30 million active users in Thailand, Ascend Money is positioned for significant growth. MUFG’s Yasushi Itagaki highlights the strategic investment in digital finance in Asia Pacific. Ascend Money founder Suphachai Chearavanont sees this funding round as pivotal for creating an inclusive financial ecosystem and accelerating digital transformation. 🚀 #Fintech #DigitalPayments #EPI #AscendMoney #Investment #FinancialServices 📈 See: https://bit.ly/4cM7eQX #ascendmoney #bnpl #crowdfunding #digitalpayments #ewallet #epi #fintech #investment #mufg #p2ppayments #southeastasia #werowallet

3

1 Comment

What’s next for Payop in 2025? Our Chief Executive Officer, Anastasia Semenkova is sharing an exclusive glimpse into Payop’s plans! From new features to innovations in Open Banking payments, big things are coming. Don’t miss out on what’s next 👇 “We collaborate with banks and tech companies to develop Open Banking payment solutions. By enhancing standard code with our technology, we boost its performance. Payop was one of the pioneers in introducing proof of funds received, and we also launched the popular Pay by Revolut channel. Looking ahead, next year we plan to introduce groundbreaking innovations in Open Banking payments that we believe will set a new industry standard.” Start working with Payop today ➡️ https://bit.ly/payop345

30

1 Comment

ColCap UK and Molo Complete £300 Million Securitisation ColCap UK’s Treasurer, Paolo Tanca, commented, “This deal represents a significant milestone for us, showcasing our ability to structure and execute successful RMBS transactions in the UK market. We are excited about the opportunities for future growth and expansion.” Esther Morley Matthew Kimber https://lnkd.in/eyBXKnyR #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

26

💳 nexo standards in action 💳 Cross-border payments remain a key area of focus for the #payments ecosystem. However, customers want these transactions to be cost-effective, efficient and transparent. In this PYMNTS interview, Debopama Sen, Head of Payments at Citi, talks about how crucial the adoption of ISO 20022 is to ensure the success of cross-border payments. According to Debo, the standard will reduce friction and improve transparency. 🎥 Watch the interview here: https://bit.ly/4cpNdyW ❓ Did you know that nexo standards was the first organization to design and develop #paymentacceptance messages based on ISO 20022? Learn more about this standard and the benefits it offers in this blog by nexo’s Secretary-General, Jacques Soussana: https://bit.ly/4cga2Wg Interested in engaging with nexo and other industry stakeholders? Our Annual Conference will be held in Helsinki, Finland on 8 October, with a networking party the evening before. Learn more about the event and register here: https://bit.ly/4dnDIBM

8