Included in this issue: Payment System Operator Delivery Group Meeting Minutes; ESMA speech on application of FinTech in securities sector; Open Banking needs a regulatory strategy, report warns and more...
Payment System Operator Delivery Group Meeting Minutes
The Payment Systems Regulator has published a summary of the 4th Payment System Operator Delivery Group Meeting which was held in December 2016.
Cash market share squeezed by plastic cards and electronic transfers
According to new data published by Retail Banking Research (RBR), 471 billion cashless payments were made worldwide in 2015, up 52% since 2011. At the same time, ATM cash withdrawals increased at a slower rate of 33% as consumers are increasingly moving away from carrying notes and coins and taking advantage of alternative payment methods.
ESMA speech on application of FinTech in securities sector
ESMA has published a speech, given by Patrick Armstrong, Senior Risk Analysis Officer in ESMA's Innovation and Products Team, on the application of FinTech within the securities sector.
ECB market consultation on TIPS expected volumes
The European Central Bank has published a consultation in the form of a questionnaire on expected volumes in the proposed TARGET instant payment settlement (TIPS) service. Completed questionnaires can be submitted until 24 February 2017. TIPS is currently in the investigation phase, which runs until June 2017. If the decision in June 2017 is to develop TIPS, it is expected to be operational in November 2018.
SEPA guide for adherence to SEPA schemes
The European Payments Council (EPC) has published a guide for adherence to the Single Euro Payments Area (SEPA) Instant Credit Transfer Scheme, the SEPA Core Direct Debit Scheme and the SEPA Business to Business Direct Debit Scheme.
European Commission revises draft RTS on separation of payment card schemes and processing entities under IFR
The European Banking Authority (EBA) has published a letter concerning the EBA's draft regulatory technical standards (RTS) relating to the separation of payment card schemes and payment processing entities under the Interchange Fee Regulation. The Commission is proposing to amend provisions in the draft RTS in sections 3 (organisation) and 4 (decision-making process). The EBA has also published a revised version of the RTS containing the Commission's amendments.
EC & EBA, 19 January 2017
EBA Clearing begins testing instant payments system
EBA Clearing has begun the testing phase for its pan-European instant payment infrastructure platform ahead of its proposed November 2017 launch. The new platform is planned to be in line with ISO 20022 messaging standards and fully compliant with the instant payment scheme (SCTInst Scheme) that is currently being created by the European Payments Council. Operating around the clock, the platform will be available to payment service providers across the EU.
Open Banking needs a regulatory strategy, report warns
A wide-ranging report on Open Banking, big data and the digitalisation of everyday life has made a number of calls on UK regulators to develop strategies to safeguard consumers and ensure social inclusivity. Faith Reynolds’ report, commissioned by Barclays (but not necessarily representing the bank’s views), says Open Banking offers exciting and powerful ways to reshape people’s and businesses’ experience of financial services, but that the concept should not be seen in isolation from other technological developments. The report states that Open Banking and the sharing of transactional data gives impetus to other markets, the Internet of Things and artificial intelligence. It calls on everyone - regulators, government, consumers, businesses - to take a wider view and prepare regulatory, legal, business and educational strategies.
Partner, Head of Competition