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Industry roundup: 19 October 2020

Mastercard expands card to account transfers in Asia Pacific 

Mastercard has announced a business-to-business payments solution in Asia Pacific with the launch of Mastercard Track Card to Account Transfer. The solution allows businesses to use commercial cards to pay suppliers regardless of whether they accept card payments.

The solution in the region is designed to help businesses manage cash flow, eliminate manual work and expand payment options as suppliers can receive card payments by buyers directly in a bank account.

In Asia Pacific, Mastercard Track Card to Account Transfer allows issuing customers to offer businesses a financing option providing extended credit and greater efficiency in accounts payable. As a turnkey solution it aims to reduce implementation costs and time to market for issuers, helping them to achieve value right away.

By addressing the challenge of card acceptance in the B2B space, the solution seeks to complement existing Mastercard commercial payment offerings that seek to reduce complexity and friction, optimise working capital for buyers and suppliers and improve cash flow to modernise the B2B payments ecosystem.


Standard Chartered report shows US$38bn opportunity for trade growth between India and trading partners

Businesses could increase exports to India by more than US$21bn annually, the Standard Chartered Trade Opportunity Report has revealed. The study, which included 10 of India’s key trading partners, also found that Indian exporters could boost exports to these 10 markets by an estimated US$17bn, bringing the total bilateral trade opportunity to US$38bn.

As economies and businesses look to recover from the impact of COVID-19, the study highlights the markets and sectors with new opportunities to grow trade. Businesses in the US, Malaysia, Indonesia, Singapore and the UK have the greatest opportunity to increase their exports to India. The US - India’s largest trading partner and the market with the largest opportunity to boost trade - could increase exports by US$5.7bn annually, with the financial services sector offering the most significant potential for growth.

The ASEAN region has a combined opportunity of US$10.7bn for exporters across Indonesia, Malaysia, Singapore, Thailand and Vietnam. The electrical machinery sector stands out, with a combined annual opportunity to grow trade between India and the ASEAN markets by US$3.2bn.

In South Korea, the spotlight is on the US$288m opportunity to increase automotive exports. Meanwhile, the UK, France and Germany could increase exports to India by a combined US$3.2bn, with a US$413m total export opportunity in the organic chemicals sector across the three markets.


EBA consults on revision of guidelines on major incident reporting under PSD2

The European Banking Authority (EBA) has launched a public consultation to propose revising the guidelines on major incident reporting under the Payment Service Directive (PSD2). The proposal aims at optimising and simplifying the reporting process, capturing additional relevant security incidents, reducing the number of operational incidents that will be reported, and improving the meaningfulness of the incident reports received. The revision of the Guidelines also intends to decrease the reporting burden on payment service providers (PSPs). The consultation runs until 14 December 2020.

The existing guidelines on major incident reporting set out, inter alia, the criteria, thresholds and methodology to be used by PSPs to determine whether or not an operational or security incident should be considered major and how said incident should be notified to the CA in the home member state.

The consultation paper proposes the introduction of the new incident classification criterion ‘breach of security measures’ to capture security incidents where the breach of the security measures of the PSP has an impact on the availability, integrity, confidentiality and/or authenticity of the payment services related data, processes and/or systems. The consultation paper also introduces changes to the thresholds for the calculation of the criteria ‘transactions affected’ and ‘payment service users affected’.

In addition, to improve the quality of the reports collected, the EBA suggests the use of a standardised file for reporting major incident reports, streamlining the reporting template, and adding further granularity to the reported causes of incidents and aligning those to other incident reporting frameworks in the EU.

Finally, and crucially, as part of the changes introduced to reduce the reporting burden to PSPs, the EBA proposes to remove the regular updates on the intermediate report and to extend the deadline for submission of the final report.


ICICI Bank offering trade finance services on WhatsApp

ICICI Bank has announced launch of services to enable customers to create fixed deposits (FDs), pay utility bills and access details of trade finance instantly on WhatsApp. These services are designed to offer convenience to customers as they can undertake an array of banking requirements from their home or office while maintaining social distance.

Retail customers can now create FDs, pay bills for electricity, gas and postpaid mobile phones simply in a few clicks through WhatsApp. Corporates and owners of MSMEs can check trade finance related services like customer ID, Import Export (IE) code, limit availability of all credit facilities availed from the bank, status of pending inward remittances and history of inward remittances on-the-go. The bouquet of trade finance services is available for current account customers with trade services enabled in their account.

Services like opening FDs and paying utility bills are currently available. The trade finance services are being piloted with some select corporates; they will be available for all in next few days. The service for recharge of prepaid mobile phones will also be available shortly on WhatsApp. These services scale up the total number of banking services available to ICICI Bank customers on WhatsApp to 25. The bank launched a host of services on WhatsApp six months ago. The list includes checking savings account balance, last three transactions, credit card limit, get details of pre-approved instant loan offers, block/unblock credit/debit card in a secure manner, opening of instant savings account in a few minutes, opting for loan moratorium, access pdf of some prominent newspapers /magazines and locating nearby essential stores.

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