May 2016 Issue 347 www.electronicpaymentsinternational.com Money 2020 Europe, (wonderful, wonderful) Copenhagen •Analysis: Mobile wallets, US •Comment: PSD2 •Profile: Klarna •Country surveys: Denmark, Hong Kong, Saudi Arabia EPI 347.indd 1 29/04/2016 14:46:18 Multichannel digital solutions for fi nancial services providers To fi nd out more about us please visit: www.intelligentenvironments.com Intelligent Environments is an international provider of innovative mobile and online solutions for fi nancial services providers. Our mission is to enable our clients to always stay close to their own customers. We do this through Interact®, our single software platform, which enables secure customer acquisition, engagement, transactions and servicing across any mobile and online channel and device. Today these are predominantly focused on smartphones, PCs and tablets. However Interact® will support other devices, if and when they become mainstream. We provide a more viable option to internally developed technology, enabling our clients with a fast route to market whilst providing the expertise to manage the complexity of multiple channels, devices and operating systems. Interact® is a continuously evolving technology that ensures our clients keep pace with the fast moving digital landscape. We are immensely proud of our achievements, in relation to our innovation, our thought leadership, our industrywide recognition, our demonstrable product differentiation, the diversity of our client base, and the calibre of our partners. For many years we have been the digital heart of a diverse range of fi nancial services providers including Atom Bank, Generali Wealth Management, HRG, Ikano Retail Finance, Lloyds Banking Group and Think Money Group. IE RBI final design.indd 1 17/09/2015 11:21:32 EDITORS LETTER NEWS CONTENTS Top takeaways from Money 20/20 Europe, Copenhagen NEWS Money 20/20’s inaugural European event was a in the lobbying process 3: NEWS DIGEST runaway success and a total blast, with stories, for direct access to pay- themes and arguments exploding, flying and ment systems, says he was FEATURE bouncing around the place more than flying ants “amazed by the engagement of the FCA” and on flying ant day. only two tech providers have been certified out 5: MOBILE WALLETS Top highlights included AliPay’s of ten to accommodate the change in access. US banks have been slow to introduce own- announced expansion into Europe- it was “They didn’t expect the speed of response from brand mobile wallets for proximity payments. However, Chase Pay may prove to be the only a matter of time. The Chinese payment the regulators and haven’t got up to speed in firestarter, setting an industry benchmark giant is officially extending its offering into time themselves.” that other banks may need to match or risk Europe to serve the ever-increasing numbers Partner, partner, partner... Was there even a losing customers to JPMorgan Chase. Robin Arnfield reports of Chinese travellers to the region. And what session in which speakers were not wholeheart- could and should Europe learn from China edly behind this plan of attack for advancing 8: MONEY 20/20 EUROPE in all things payments and banking? The innovation? BBVA’s Carlos Torres Vila perhaps We hear a great deal talked about a cashless answer is a lot: DBS Bank CIO Neal Cross the strongest advocate of all for this, given society but when someone delivers a shared fascinating insights with EPI on the BBVA’s aggressive acquisition strategy, most manifesto to put it on Europe’s political future of fintech and the threat to banks not notably of Holvi and Atom Banks. agenda, it becomes a bit more compelling. Dave Birch, global ambassador, Consult of fintech start-ups, but of Google. Torres Vila bucked the trend for lambasting Hyperion at Money 20/20 Europe did just Blockchain- is it a goer? It is. And it will be the banks’ legacy systems: “We have a conserva- that. Anna Milne reports platform developing companies rather than the tive approach to change and risk, that’s what 10: MONEY 20/20 EUROPE product-offering ones that will really pave the we do and we do it well; we have a legacy way of way. And as for regulation- yes, regulators glob- doing things which has served us very well and More from the inaugural European conference usually held in Vegas. What ally are behind the development of this and yes, continues to serve us very well- we will make a are the top mistakes and misconceptions it can be regulated. It’s down to building on and multi-billion dollar profit this year as we did last banks and payment start-ups make when plugging in to the open source platform. Monica year and the year before and the year before.” innovating and developing? Anna Milne reports Monaco, founder and MD, Trust EU Affairs: Dave Birch, global ambassador, Consult “Blockchain fulfils 90%of the European Com- Hyperion, showed us how to implement a 11: KLARNA: A STUDY OF SUCCESS mission’s objectives. Regulators are interested.” strategy for change with his manifesto for cash- SURVEY Nancy Hulgrave, anchor CNBC, drew out lessness. Classic ‘who, what, why, when, where’ Blythe Masters’ vast knowledge of blockchain stuff. And with ‘how’ thrown in. This is the stuff 13: DENMARK and distributed ledger technologies to get journalists get out of bed for. straight to the point: is it going to change the High value notes to be removed, retailers to 14: HONG KONG world? Masters: “It already is.” be allowed charge for cash payments and make 15: SAUDI ARABIA Tech trails regulation. In many cases, tech debit card payments free; payment accounts to is actually lagging behind regulation- usually be available free of charge to everybody. COMMENT we’re all harping on about regulation hamper- “Europe needs to put this on its political ing technological advancement but in the UK, agenda,” Birch implored. But don’t take it from 2: PSD2 the ongoing call to widen access to the pay- me, the manifesto highlights are on p8, along- 12: BANK ACCOUNT OWNERSHIP ments systems is enjoying a strong push from side research from First Capital suggesting the 16: QR CODES, SIX PAYMENT SERVICES the Financial Conduct Authority, Payment Sys- cashless cause might face an uphill struggle in tems Regulator and the Bank of England. reality. In the interests of balance, an’ all. < Rich Wagner, on the board of the Emerging Payments Association, and heavily involved A NNA MILNE, [email protected] Editor: Anna Milne Sub-editors: Nick Midgley, Tom Langfield For more information on Timetric, visit Tel: +44 (0)207 406 6701 our website at www.timetric.com. As a Ray Giddings Email: [email protected] Director of Events: subscriber, you are automatically entitled Tel: +44 (0)203 096 2585 to online access to Electronic Payments Financial News Publishing, 2012 Group Editor: Doulas Blakey Email: [email protected] International. For more information, please Registered in the UK No 6931627 Tel: +44 (0)207 406 6523 telephone +44 (0)203 096 2636 or email ISSN 0956-5558 Email: [email protected] Head of Subscriptions: Sharon Howley [email protected] Unauthorised photocopying is illegal. The Tel: +44 (0)203 096 2636 Reporter: Patrick Brusnahan London Office contents of this publication, either in whole or Email: [email protected] Tel: +44 (0)207 406 6526 71-73 Carter Lane part, may not be reproduced, stored in a data Email: [email protected] London retrieval system or transmitted by any form or Sales Executive: Alexander Koidis Tel: +44 (0)203 096 2586 EC4V 5EQ means, electronic, mechanical, photocopying, Asia Editorial: Xiou Ann Lim Email: [email protected] recording or otherwise, without the prior Tel: +65 6383 4688 Asia Office 1 Finlayson Green, #09-01 permission of the publishers Email: [email protected] Customer Services: Singapore 049246 Group Publisher: Ameet Phadnis Tel: +44 (0)203 096 2636 Tel: +65 6383 4688 Tel: +44 (0)207 406 6561 or +44 (0)203 096 2622 Fax: +65 6383 5433 Email: [email protected] Email: [email protected] Email: [email protected] www.electronicpaymentsinternational.com May 2016 y 1 EPI 347.indd 1 29/04/2016 14:46:20 Electronic Payments International COMMENT PSD2 Has PSD2 the power to change the game in payments? Lars Tebruegge, an independent payment consultant based in Frankfurt, examines some of the key points of PSD2 he Payment Service Directive (PSD) As their name suggests, these TPPs will be secure communication under the revised Pay- of 2007 is being updated by PSD2 able to initiate payments on behalf of the con- ment Service Directive currently being devel- after much debate between European sumer. As the banks generally do not charge oped from the European Banking Authority institutions and stakeholders. This their customers for a credit transfer, this method (EBA) based in London. T may then be utilised by TPPs. This could cut Amongst other issues, the RTS will define for legislation comes along with a number of other initiatives from the European Com- out several layers of intermediaries or middle- which transactions strong customer authen- mission, for example, the Interchange Fee men so that, potentially, costs for the merchants tication (SCA) will be required and how this Regulation, the update of the rules on Anti- are reduced. Of course, the TPPs will bear the can be achieved. Currently many aspects are Money Laundering and a Directive on the burden of regulation and compliance, but they still unclear and handled differently within the Transparency and Comparability of Pay- have an excellent starting position – relying on EU member states.