PUBLISHED: 20 SEPTEMBER 2019 AUTHOR: FINTECH CIRCLE

Barclaycard finds that SCA has had no initial impact on transactions

Regulation authorities have pushed back the September deadline for rules that will require a two-step verification process for all online purchases over EUR30. E-commerce companies have expected that over a quarter of payments would fail to convert with two-step verification adding more friction to the payments process. However early transactions from Barclaycard have found that merchants are not seeing an increase in abandoned shopping carts or declined payments. “Our data offers encouraging news for merchants, whose transaction volumes have been, so far, unaffected by the go-live of SCA,” said Paul Adams, director of acquiring at Barclaycard Payment Solutions. Read more

Banks fear Big Tech competition in booming non-cash payments market

The World Payment report from Capgemini has shown that non-cash payments are booming as competition with banks coming from both fintech startups and Big Tech rises. In several instances Big Tech and Open Banking are cited by banks as competitive threats and regulatory challenges to be overcome rather than opportunities for innovation and collaboration.  Anirban Bose, CEO of Capgemini’s Financial Services and Group Executive Board member said: “The global payments landscape is undergoing significant evolution, but not all participants are comfortable with the pace and direction of change.”  Read more

Facebook faces further scrutiny over its plans to launch its own currency

On Monday next week global regulators are set to meet with social media Big Tech representatives from Facebook. Officials from 26 central banks will congregate in Switzerland to further scrutinise Facebook’s own cryptocurrency Libra. The meeting follows French finance minister Bruno Le Maire’s announcement that he would oppose the development of Libra in Europe as it poses a threat to “monetary sovereignty” adding “I want to be absolutely clear – in these conditions, we cannot authorise the development of Libra on European soil.” Read more

Challenger bank N26 appeals to transparency wishes of millennials and Gen Z

Appealing to Generation Z and Millennials, Berlin based bank N26 have launched a New York subway advertising campaign promoting speed and transparency. Nicolas Kopp, US chief executive officer, N26 said “Transparency is one of the key drivers at N26, whether it’s about eliminating hidden fees, providing real-time notifications and spending limits that users control, or even the sleek app design,” adding “We understand the pain points that customers have experienced with traditional banks and work to solve them with a fast, easy and even enjoyable banking experience all from your smartphone.” Read more

Central bank-backed digital currencies would pave the way for revolutionary change

Opinion and insight into the dominating fintech news headlines on Big Tech and governments developing their own cryptocurrencies. What are the barriers to innovation that can lead to the most disruptive banking and fintech models we have seen in recent years? The pace is set by the speed of regulation as this piece in the FT suggests. The current rules based on physical assets are being tested by digital currencies that are now being supported by some of the largest organisations in the world.  Read more For the latest fintech news and events sent straight to you inbox sign up to the FINTECH Circle newsletter