Included in this issue: PSR application received for designation under the Payment Accounts Regulations; Barclays contactless payment app now allows payments up to £100; Euroclear exploring use of blockchain technology and more...


REGULATORY

PSR application received for designation under the Payment Accounts Regulations

The Payment System Regulator has said it has received one application form from an operator of alternative switching schemes wishing to be designated under the Payment Accounts Regulations 2016 before 18 September 2016. The deadline for the application was 10 June 2016.

Payment Systems Regulator, 21 June 2016

UK

Barclays contactless payment app now allows payments up to £100

Barclays have chosen to upgrade their own Android app rather than supporting Google's Android Pay service. The Barclays app now allows customers to make contactless payments of up to £100, although sums over £30 may require the use of a Pin code.

BBC News, 22 June 2016

Microsoft Windows 10 phones to have contactless payments

A new contactless payments feature has been introduced to Windows 10 mobile devices in the US through Microsoft's Wallet app. The system is currently available to a group of early adopter customers who volunteer to preview new features. General availability has been promised for later this summer.

NFC World, 22 June 2016

Bank of England progress update on blueprint for new RTGS system

The Bank of England (BoE) has published a progress update on its plans to develop a blueprint for a new real time gross settlement system (RTGS). Since January 2016, the Bank has had over 100 meetings with representatives from banks, technology firms, infrastructure providers, end users, academics and other central banks aimed at understanding what the next generation of central bank money settlement will need to provide.

BoE, 17 June 2016

Report identifies improved access to payment systems as driver for competition

Payments UK has published a report showing improved access arrangements to UK payment systems for Payment Services Providers (PSPs) is a key driver for competition and innovation. The report aims to achieve the best possible arrangements for PSPs that potentially need to access UK payment systems and to enable them to be competitive and innovative without compromising the resilience and security of the payments infrastructure.

Payments UK, 17 June 2016

Speech: Mark Carney on initiatives to promote FinTech

The Bank of England (BoE) has published a speech given by Mark Carney at the Mansion House on 16 June announcing a number of BoE initiatives to promote the development of FinTech. The developments include widening access to central bank money to PSPs and exploring the use of Distributed Ledger technology in its core activities, including the operation of RTGS.

Bank of England, 17 June 2016

WORLDWIDE

Euroclear exploring use of blockchain technology

The clearing house Euroclear is looking at potentially using blockchain infrastructure to create a next generation settlement service for the London gold market. Euroclear is working with others to evaluate the use of distributed ledgers to remove the risks and reduce capital charges associated with the settlement of unallocated gold.

Finextra, 22 June 2016

Bitcoin risk raises concern

US Regulators have highlighted concerns about potential financial stability risks relating to alternative currency bitcoins. They stated that the risks may arise due to digital currencies being put under greater scrutiny.

Financial Times, 22 June 2016

Bank of Canada to trial digital currency

Canada's central bank is working with the country's biggest banks to explore a digital version of the dollar in bitcoin alliance. The initiative will involve issuing, transferring and settling central bank assets on a distributed ledger via a token named CAD-Coin.

Financial Times, 16 June 2016

Bank of Tokyo confirms experimentation with bitcoin system

Bank of Tokyo-Mitsubishi UFJ has confirmed reports that it is looking at developing a virtual currency utilizing the same technology as bitcoin. The bank is also developing ATM's which will allow customers to withdraw virtual currency to their smartphones.

Reuters, 14 June 2016

RESEARCH

Cash to disappear within next 20 years according to survey

Research surveying over 2,000 consumers and published by London & Partners, the Mayor of London's promotional company, predicts a cashless society in the UK within the next two decades. The data is supported by figures showing that contactless spending has increased by 326% year-on-year in the UK.

Retail Times, 21 June 2016

Key contacts

Amanda Hulme

Amanda Hulme

Partner, Head of Financial Regulation
London

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Fiona Ghosh

Fiona Ghosh

Partner, Commercial
United Kingdom

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Bruce Kilpatrick

Bruce Kilpatrick

Partner, Head of Competition
London

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William James

William James

Partner, Corporate
London

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