Citi Integrates US institutional e-commerce payments and electronic bill presentment platforms – Industry roundup: 26 October
by Monica Zangerle, Writer, CTMfile
Worldline introduces “Worldline Tap for Mobile” devices, acquiring a 55% majority stake in fintech
Worldline, a global payment services provider, has completed the acquisition of a 55% stake in SoftPos.eu, a Warsaw-based fintech that reportedly converts android devices into secure payment terminals. With this acquisition, Worldline plans to offer payment solutions that can be tailored to all forms of commerce, helping to support the corporate goals of its customers. Worldline has now introduced Worldline Tap on Mobile, a new global solution based on SoftPos.eu.
The fintech, SoftPos.eu, was founded in 2019 in Poland to enable merchants to accept card payments without additional hardware by turning standard android devices into secure payment terminals. Worldline plans to use the technology provided by SoftPos.eu to support its extensive portfolio, from onboarding to acquiring, as well as increase customer value across all industries.
Reports indicate that Worldline Tap on Mobile is a sophisticated end-to-end solution based on an android application that can reportedly enable all merchants, from small to large, to accept payments with a single tap on a smartphone, tablet or enterprise device. While the solution accepts small amounts by a tap, larger amounts are verified by entering a PIN on the screen.
The following are some of the features Worldline cites as the advantages of Worldline Tap on Mobile:
• Contactless payment acceptance that is modern, convenient, simple and quick
• Versatility, with no additional hardware required, suitable for all verticals
• PCI-certified secure solution with pin entry for high-value payments
• A cost-effective solution to replace or supplement their existing fleet
• Integration with third-party applications
Zebra Technologies, a global enterprise in asset intelligence, has reportedly certified Worldline Tap on Mobile as its first payment partner worldwide. Through this collaboration, specialized integrators and partners from all sectors will be able to add payment to their customers' android device offerings.
Citi merges US institutional e-commerce payments and electronic bill presentment platforms
Citi's digital payments service, Spring by Citi, which enables e-commerce and B2B fund flows, has been fully integrated with Citi’s Present and Pay, its electronic bill presentment platform, according to a recent press release. In a single integrated platform, the combined solution is set to provide detailed digital payment acceptance and electronic bill presentment.
Reports indicate that with Citi’s new single infrastructure and technical integration platform, institutional clients can now expect to collect payments across a full range of US payment methods as well as provide advanced digital billing capabilities, saving time and simplifying the implementation process. With the aid of this comprehensive solution, payment acceptance has now become more viable through a single contracting structure with Citi, as opposed to the past requirement for support of all relevant payment methods connected through an external third party.
Through a single contracting structure and technical integration, the combined solution is expected to assist institutional clients in simplifying access to the following services:
• Additional payment methods for their customers, including credit and debit cards, ACH direct debit and real-time Requests for Payment, and alternative payment methods such as digital wallets.
• Clients can expect to receive and pay their bills using a variety of channels, such as voice, secure email, SMS text and web/mobile web (automated IVR and live customer service).
• The ability to validate payer bank account details in real time to assist in ensuring NACHA compliance with ACH direct debits without the requirement for additional technical integration with a third-party provider.
Japan’s global payments system to test CBDC plastic cards
Japan Credit Bureau (JCB), a Japanese equivalent of international payment systems such as Visa and Mastercard, is reportedly collaborating with IDEMIA, a France-based facial recognition technology provider, and Softspace, a mobile payments technology company headquartered in Malaysia, to build its CBDC infrastructure. The project is expected to prepare and develop the payments platform solution for a national CBDC, which the Bank of Japan (BOJ) is currently testing, by the end of 2022, with demos and experiments to begin in real stores in March 2023.
The platform will reportedly be comprised of three key components: a touch payment solution, the issuance and distribution of CBDC plastic cards and a modelling of the operating CBDC environment. In the final stages of testing, JCB intends to modify mobile payment tools and QR codes.
The BOJ released a three-phase trial CBDC framework in October 2020. The second test phase, which will reportedly test the technical aspects of the digital yen's issuance, is expected to begin this year. According to the governor of the Bank of Japan, the digital yen could be introduced by 2026.
Fintech Jack Henry introduces real-time P2P payments
Jack Henry, a US-based financial technology firm, has announced the release of its standalone P2P payments solution, powered by the Payrailz Digital Payments Platform acquired last month. Additionally, it is reportedly now available for standalone implementation or as a strategic component of the full Payrailz payments platform.
Jack Henry's calls its offering the industry's only financial institution-centric, open-loop, real-time P2P payments solution, stating that it provides a flexible, convenient method for transmitting funds to virtually anyone. Open-loop solutions, in contrast to closed-loop solutions, do not require senders and receivers to be members of the same payment network, said reports. The one-time and recurring payments may be initiated using the recipient's mobile phone number or email address with flexible delivery options, split-pay functionality, good funds settlement, along with the option to credit funds to cheque and savings accounts, debit cards and Venmo accounts.
A multi-layered approach for fraud prevention is reportedly used, including one-time passwords and the in-development Fraud Monitor, used to score 100% of P2P payments in real-time. Additionally, the solution offers simple integration into existing digital banking platforms.
Tede Forman, President of Payment Solutions, Jack Henry, commented that the demand for P2P payments is strong and growing, and that providing clients with ready-made channels to the new networks is essential. Over 400 financial institutions are already live on the Zelle and RTP networks, with another 156 in various stages of implementation.
Forman added that the strategic addition of the open-loop Payrailz P2P solution ultimately provides clients with increased capabilities and versatility, enabling them to integrate services seamlessly.
The ACH Network shows steady growth worth US $19.2 trillion in the 3rd quarter 2022, with $478 billion in same-day payments
The ACH Network has reportedly maintained its steady growth in the third quarter of 2022, with 7.6 billion payments valued at US $19.2 trillion processed, marking increases of 4.2% and 6% compared to 2021, respectively. Additionally, the same-day ACH volumes reported significant growth, with 176.6 million same-day payments, a 23.5% increase from the third quarter of 2021. The amount of those payments ($478.5 billion) represents a 102.7% increase over the previous year.
According to Jane Larimer, President and CEO, Nacha, more than $1.25 trillion in same-day ACH transfers have been made in 2022 so far. By having a $1 million capability for same day ACH payments and settlement with funds available four times per day, the ACH Network believes it will help satisfy US demands for faster payments.
Reports also show that B2B ACH payments rose 11.5% to 1.5 billion as businesses of all sizes continue to forgo cheques in favour of the faster, safer ACH payment method. The 2022 Association for Financial Professionals Digital Payments Survey, which was published earlier this month, revealed that only 33% of B2B payments in the US and Canada are made by cheque, significantly lower than 81% in 2004. Settlement speed, more effective reconciliation, and fraud control were some of the advantages most frequently mentioned for the shift towards ACH. Furthermore, the number of internet payments also increased by 10.2% to 2.4 billion during the third quarter, and the number of P2P payments increased by 15.5% to 76 million, said reports.
The European Union advises banks to make instant payments in euros mandatory
Under draft European Union rules, banks in the eurozone will be expected to provide instant payments (IP) in the single currency 24 hours a day, seven days a week, said a recent report. In contrast to existing card payments and direct deposits, which can take up to a few business days, the EU intends to revitalize the payments system in order to enable faster transfer of funds from one account to another in seconds, at any time of day or night.
The new regulations are part of the eurozone's strategy to promote the creation of competitive, domestically produced and pan-European market-based payment solutions in a region where Mastercard and Visa from the US reportedly dominate cross-border retail payments.
Reports indicate that the IP infrastructure currently exists in the eurozone, but adoption has been sluggish, with only 11% of euro credit transfers in the form of IP at the end of last year, according to the European Commission.
The IP law draft states that payment service providers (PSPs) that offer credit transfers in euros must also offer the service of sending and receiving IPs in euros year-round on a daily basis. The finalized draft law will reportedly be published today, with finalization from the EU member states and the European Parliament. Additionally, the draft plans to mandate that PSPs receive instant payments in euros in the eurozone six months after the new rules go into effect. Within a year, they will be required to send euro-denominated IPs, said reports. The banks outside of the eurozone will reportedly have more time to fulfil their compliance.
Tink and Sambla Group collaborate to improve the loan verification process
Tink, a prominent open banking platform in Europe, has teamed up with Sambla Group, a major loan broker in the Nordic region, to give lenders in its network access to more precise affordability assessments.
Sambla Group has adopted the entire risk product suite from Tink and plans to add Income Check, Risk Insights and the most recent tool, Expense Check, in order to enable more accurate lending assessments across more than 100 different Nordic lenders and aid loan applicants in securing optimal deals.
This suite of products, powered by open banking, is expected to provide Sambla Group with a clearer, more comprehensive understanding of the loan applicants’ affordability by using real-time data and obtaining loan comparisons. Additionally, Tink's risk product suite will reportedly assist Sambla Group’s customers in obtaining the financial services needed while also streamlining the verification process, reducing loan application time and improving approval rates and user experience.
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