Included in this issue: U.S. card firm Vantiv clinches $10 billion deal to buy UK Worldpay; UK Card Expenditure Statistics: June 2017; BIS assesses potential impact of Fintech on finance industry and more...
UK
U.S. card firm Vantiv clinches $10 billion deal to buy UK Worldpay
Vantiv has struck a deal to buy British payments processing rival Worldpay for £9.3bn after weeks of negotiations to create the world’s biggest industry player by the number of transactions handled. The combined group, which is valued at £22.2bn, will retain the name Worldpay and have its international headquarters in London. The terms of the deal were improved after pressure from investors following an announcement of the original offer last month.
UK Card Expenditure Statistics: June 2017
Total card spending reached £57.1 billion in June, up by 0.3% on May and 7% on June 2016. There were just under 1.4 billion card payments in June, a monthly record and a 12% rise in the last 12 months. This is the highest annual rate of growth in the number of payments since June 2008, driven by a robust rise in online (+20%) and contactless (+143%) purchases. Retail sector spending rose by £19 million in June to reach £26.1 billion. The largest increase in retail sector spending was on food and drink, which passed £10 billion in June. Service sector spending rose by £138 million to £31 billion. Contactless payments accounted for 34% of all card transactions, while online payments accounted for 13%.
Payment Systems Regulator welcomes appointment of first chair of New Payment System Operator
The Payment Systems Regulator (PSR) welcomes the appointment of Melanie Johnson as the first chair of the New Payment System Operator (NPSO). During early 2018, the NPSO is due to take over the operation of three payment systems – BACS, Faster Payments and the new Cheque Imaging System.
Worldwide
BIS assesses potential impact of Fintech on finance industry
The Bank for International Settlement (BIS) has published working paper no 655 on the FinTech Opportunity by Thomas Phillippon, a member of the Monetary and Economic Department. The paper assesses the potential impact of Fintech on the finance industry and discusses the current regulatory approach.
Bank for International Settlements, 7 August 2017
EBA discussion paper on approach to FinTech
The EBA has published a discussion paper on its approach to FinTech. To enable the EBA to gain a better insight into the financial services offered and financial innovations applied by FinTech firms in the EU, and their regulatory treatment, it undertook a FinTech mapping exercise in spring 2017. Competent authorities in 22 member states and two EEA states provided estimates on the current number and expected growth of FinTech firms established in their respective jurisdictions. They also provided detailed information on a sample of FinTech firms, including information on main financial innovations applied, main financial services provided, regulatory status and target end-users.
Blackstone/CVC agree £2.96 billion deal for Paysafe
Blackstone and CVC have agreed a £2.96 billion deal to acquire online payments company Paysafe. Under the terms, each Paysafe Shareholder will be entitled to receive 590 pence per share, a 42% premium over the group's average value over the past year. The deal will give Blackstone and CVC exposure to the online gambling industry, a significant business sector for Paysafe whose pre-paid digital wallet facilitates bets without taking money from bank accounts. Paysafe's merchant services businesses in Asia will be split off and sold to Spectrum Global Limited for approximately $308 million. Neteller, the FCA-registered online payments arm of Paysafe's merchant operations, will remain under the Blackstone/CVC umbrella.
Finextra, 4 August 2017
EBA consults on fraud reporting requirements under PSD2
The EBA has published a consultation paper in respect of its draft guidelines on reporting requirements on statistical data on fraud under Article 96(6) of the Directive on payment services in the internal market (PSD2). The security of retail payments is one of the objectives of PSD2. The guidelines have been developed by the EBA in close co-operation with the European Central Bank. The aim is to ensure that the high-level fraud reporting requirements under PSD2 are implemented consistently among member states and that the aggregated data provided by competent authorities to the EBA and the ECB is comparable and reliable. Consultation closes for comments on 3 November 2017.
