Open banking requires enhanced security such as Strong Customer Authentication

hand-iphone-macro-40011In general, there are three factors to identify yourself when making an electronic payment: something that you know (such as a PIN code), something that you possess (such as a telephone) and something that you are (such as a physical characteristic). Under PSD2, the Regulatory Technical Standards (RTS) for Strong Customer Authentication (SCA) requires that one’s identity has to be verified with least two of these three independent options in order to perform a payment. What is SCA and why is it necessary for banks to enhance their security?

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More and more Europeans are ready to pay using wearable devices

apple-apple-watch-gadget-267391On the one hand, the spread of smartphones, wearable devices, and the Internet of Things, and on the other hand the development of mobile payment solutions and applications that are increasingly safe and reliable and above all usable: the innovation at the level of apps, mobile devices and mobile payments is impacting on the business models of the retail and banking world precisely because they are changing the habits of consumers who use these devices for business and pleasure.

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The great battle between banks and fintechs for the loyal customer

P2P payments blogDutch bank ABN AMRO announced its new record: one payment request per second was sent via Tikkie during Dutch national holiday ‘King’s Day’ on average. This record is not entirely surprising, as electronic peer-to-peer (P2P) payments have tripled since 2016. Fintechs and banks all over the world are keen to respond to this trend, which now seems to have become mainstream. A lot is happening  to provide consumers with the right applications so that they can transfer money to each other as quickly and easily as possible. But what has this competition led to? And what can consumers expect in the near future?  Read more

Five important steps to become a Third Party Provider following PSD2

TPP-WhitepaperWe know from our recent discussions with a wide range of market players that many would-be Third Party Providers (TPPs) feel uncertain about why they should become a TPP and if so, what they need to do to best prepare for PSD2, and about whom they can turn to for strategic, as well as technical, assistance. This blog post is a summary of a whitepaper that was specifically created for market players who intend to become a TPP. This whitepaper named ‘Time to get practical – a PSD2 whitepaper with a step-by-step preparation guide for TPPs’ is the second whitepaper on PSD2 that was created by Worldline and equensWorldline.

Despite numerous concerns, PSD2 primarily represents a unique strategic opportunity for would-be TPPs, including the banks, if only they have the courage and the innovative power to seize and unfold it. All types of companies can become a TPP if they so desire and as long as they fulfil the national requirements for TPP approval. This means that many different types of TPPs are expected in the market. Read more

Seven key elements for banks to reach full PSD2 compliance

time to get practicalThe introduction of PSD2 in January marked the beginning of the emergence of a new eco-system for banks. equensWorldline and Worldline have written two whitepapers to shed light on the changing landscapes for banks and the payments sector. This blog post is about the first whitepaper ‘Time to get practical – a step by step PSD2 preparation guide for banks’. The next blog post will zoom in on the second PSD2 whitepaper with a practical preparation guide for Third Party Providers (TPPs).

Due to access to accounts (XS2A) in PSD2 banks face the risk of losing the direct relationships with their customers and therefore of being reduced to the role of basic infrastructure providers – and this will mean a drastic cut in their revenues. How to overcome those concerns? As indicated before, PSD2 points in the direction of Open Banking and is likely to inspire banks to innovate faster than they otherwise would and to create connected omni-channel experiences. Read more

Can payment-options give chatbots a push in the right direction?

ChatbotThe future of chatbots is unknown. When Facebook announced in 2016 that it would allow developers to place chatbots on its Messenger app, the expectations were high. According to Vice President David Marcus from Facebook Messenger 100,000 chatbots were launched on their platform since then (status April 2017). This way, companies were able to dramatically reduce the workload of their customer service employees. At the same time, they would improve user experience. Read more

Building the future of payments during the ECB’s TIPSapp Challenge

Mark Munne on stage_1“Instant Payment is faster than the security check-in at the ECB”, those were the opening words of Marc Bayle de Jessé of the European Central Bank himself. But a lot of people made it to Frankfurt on February 6 2018  to see sixteen companies present their instant payment solutions and to engage in the interesting discussion panels during the TIPSapp Challenge, organized by the European Central Bank.

The challenge each of the companies had to face was not the time span of five or ten seconds as in instant payments, but they had only five minutes on stage to present their solutions to the audience. All of them managed the task very successfully. The interested listeners got to see a variety of solutions from all over Europe. Read more

Four cases to demonstrate user-friendly solutions for Instant Payments during the ECB’s TIPSapp Challenge

TIPSappChallengeInstant Payments is a quantum leap in payments. Consumers can send money as quickly as email and corporates have instant certainty. equensWorldline has prepared two apps to demonstrate its thought-leadership in providing instant payment, that will be presented during the TIPSapp Challenge, organized by the ECB, on 6 February 2018. The challenge is meant to boost public awareness of Instant Payments across Europe.

In the long run, the European Central Banks’ (ECB) vision on Instant Payments is that they will become the new normal. However, a market infrastructure alone will not be enough to ensure that European citizens will use Instant Payments. People will need to be able to initiate Instant Payments with user-friendly apps they actually like to use. This can only be done with user-friendly technology, because the market will decide which Instant Payments solutions and use cases to use and when to use. Read more

Interview with Gilles Grapinet, CEO Worldline, about PSD2

GrapinetA PSD2 interview with Worldline’s CEO, Gilles Grapinet, by Norfico.

On Saturday 13th January, the long-awaited Revised Payment Services Directive, PSD2, has come into force in all European countries.

The PSD2 is probably the most ground-breaking piece of legislation concerning the financial industry ever adopted by the EU. It has been debated endlesslyduring the past couple of years, and its impact on the financial industry – including the fast-growing fintech part – is anticipated with great excitement, mixed with a certain amount of fear and trepidation.

In this interview, we ask Worldline’s CEO, Gilles Grapinet, about his and Worldline’s expectations of the PSD2. And since Mr Grapinet considers himself a believer in the European project and Worldline is a truly pan-European payment leader, it probably comes as no big surprise that expectations for the near future are high, not only for Worldline, but for a wide range of players within the industry – including banks, merchants, and obviously fintech companies.

What is your overall view on the new Payment Services Directive? What is important about it and what impact do you expect to see from it going forward?

Grapinet: “The PSD2 is a game-changing regulation. It is not just another set of rules in the world of banking. It is a way to unleash the value of data – in this case of course banking and payment data – and it has the potential to create a new type of economy model for banks as well as for several other parties. During the last fifteen years, we have seen several examples of radically new business models based on access to data. The PSD2 brings the platform economy concept into banking, and nobody should understate what that means. Another key aspect of the PSD2 is security. The SecurePay initiative had introduced requirements to secure online payments. Now with the PSD2, security will cover all transactions through the reinforcement of customers’ authentication. Trust and security are essential in the digital world and the PSD2 will make users more confident in this new ecosystem. Read more

Paving the way for instant payments across Europe

ECBThis guest blog is written by Mehdi Manaa, Deputy Director General Market Infrastructure and Payments, European Central Bank.

The availability of a safe and efficient market infrastructure that can process and settle instant payments across Europe is one of the cornerstones of European payments innovation. In the context of the Eurosystem’s strategic review of the future developments of its market infrastructure and related central bank services, it was decided to develop a pan-European instant payment settlement service in central bank money. The TARGET Instant Payment Settlement (TIPS) service will be launched in November 2018.

TIPS establishes the groundwork for the smooth functioning of pan-European instant payments. It gives the market a basis for the provision of products and services that create value for customers and enables more competition among the payment service providers. Read more