Payment systems evolution keeps on coming. This week there were two trends: 1) business is restructuring and partnering with each other to expand their global coverage, and 2) a growing awareness that when choosing payment systems, the full costs need to be considered, not just the headline rates.
1) Business is restructuring and partnering:
- There has been a host of mergers and acquisitions in the payment systems as the business consolidates and tries to scale up to meet the requirements of large MNCs, e.g.
- UK’s Worldpay was taken over the the US payments compay Vantiv
- Paysafe is expected to be purchased by Blackstone and CVC Capital Partners
- Worldline is acquiring Digital River Payments and First Data
- Ingenico is to acquire Sweden’s Bambora
- PSD2 is generating an evolution in terms of digital identity management and control, customer authentication, KYC and compliance requirements see LetsTalkPayments article
- Commercial cards services are developing rapidly as the service is integrated with other components in the B2B chain in various ways, see, and figure below:
- Source & Copyright©2017 - Accenture
- More P2P systems are expanding with the latest announcement that Skype is to partner with PayPal to launch ‘Send Money’ function
- PayPal is also partnering in other ways to expand their global coverage, e.g. Mastercard and PayPal have announced an extension of their partnership into Asia-Pacific
- Earthport, the cross-border payments network has partnered with Kotak Mahindra Bank, a leading private sector bank in India, to provide cross-border payment capabilities across select global markets
- Three more Chinese banks have joined Swift’s global payments innovation scheme.
2) Focus on total costs:
- Artem Tymoshenko, Maxpay in an article in THE PAYPERS, see, went through the well established mantra that retailers and any corporate considering a new payment card solution needs to look at the effective rate not the headline rate. The hidden fees and chargeback fees can change the picture completely.
Payments: Future of cash, US API ecosystem, Arab regional system, PSD2 insurance
Payment systems are far too important to be just left to bankers and economists or technologists
Payments industry must resolve differences over PSD2
Innovation and security are the driving forces behind PSD2 but disagreement between fintechs and banks must be resolved. BNP Paribas's Alain Bénédetti discusses these issues with the European Payments Council
PSD2: questions raised by corporate payment SCA exemption
The latest opinion published by the EBA on the revised Payments Services Directive (PSD2) raises questions on how some corporate payments will be exempt from Strong Customer Authentication