Compare and Contrast

In this week’s Payments:Unpacked newsletter from Mike Chambers at Northey Point you’ll find:

Request to Pay Vs. Open Banking

It would be really interesting to do a compare and contrast of Request To Pay Vs Open Banking powered services that will do similar soon with Variable Recurring Payments… From a customer and a biller perspective.

This was an observation made in response by Chris Higham to a recent LinkedIn post by Mike Chambers at Answer Pay. The original post is at:

So that’s exactly what Answer Pay have done! 

In his article, Peter Cornforth puts Request to Pay and Open Banking side to side to compare payment initiation services and analyse the relationship between the two.


Digital solutions where size no longer matters

What started with a pepperoni pizza in 1994… 

Credit card usage has grown exponentially since the launch of Barclaycard in 1966 and card payments overall from the first debit card, also from Barclays, in 1987.  The move from paper vouchers to electronic processes led to greater growth in businesses offering card acceptance but entry and fixed monthly costs still meant that, until relatively recently, a card terminal were less common in smaller businesses.  

The arrival of the internet led to the development of e-commerce.  According to Wikipedia “The first online food order was a pizza from Pizza Hut in 1994”. However although the order for a large pepperoni and mushroom pizza with extra cheese was placed online, revolutionary for its time, it was little more than an online order form, as the order was then verified by a phone call and payment made on delivery.   To link together the whole transaction online required a complex payment gateway connection to link the order with the payment.

Systems developed further with the launch of pioneers such as Amazon in 1994 and the beginnings of online orders with payment online by credit card (although you could still phone and give your credit card details over the phone). However, the technology costs still meant that these were large scale solutions for large scale businesses.

The growth of card, online and mobile payment acceptance has increased as digital technology has developed in recent years and further fuelled by the pandemic.  The payment solutions initially available to the multi-nationals has now been replaced by capability at everyone’s fingertips, literally, in the smart phones carried by nearly 4 billion people across the globe today.


Commitment to Confirmation of Payee

Banks commit to deliver Confirmation of Payee extended capability by end 2021

In response to a recent call for views from the Payment Systems Regulator (PSR), the SD10 firms (a group of the major banks: Lloyds Banking Group, Bank of Scotland, Barclays, HSBC, NatWest, Nationwide and Santander who were initially directed by the regulator to introduce Confirmation of Payee) have written to the PSR to provide a public commitment to deliver the necessary Confirmation of Payee role profile by the end of this year. 


When did you last visit an ATM?

In a day or two we’ll be publishing our weekly ATM tracker but did you know for the week ending 15 August 2021:

  • the volume of ATM transactions increased by 2% when compared to the previous week in 2021. 
  • the volume of ATM transactions increased by 1% when compared to the equivalent week in 2020. 
  • the volume of ATM transactions decreased by 34% when compared to the equivalent week in 2019.


Facebook’s Marcus demands ‘fair shot’ for Novi payments

Facebook’s digital wallet, Novi, could abandon the Diem stablecoin in favour of fiat money if regulators do not change their tune, says chief David Marcus in a blog in which he also confirms plans to move into other financial services.

The current iteration of the project involves the issue of a single stablecoin pegged to the US dollar, a significant scaling back from recently revised plans to issue a series of stablecoins backed by individual traditional currencies, as well as a token based on the currency-pegged stablecoins.

“Let me be clear, if we only offered fiat money in Novi, it would bring people a lot of value,” writes Marcus, adding: “So why not just do that and call it a day? Well, we might.”


Revolut launches earned wage access platform Payday

Revolut is launching a new earned wage access platform called Payday. The platform will give employees track and have instant access the money they have already earned, but have not yet been paid for through a traditional salary system.

As part of this launch, Revolut is partnering with UK employers with plans for EEA and the US to follow. The company states that use of the platform will come with a “small, flat fee”.

Payday will not impact employee credit scores, because it is not a credit or loan system. The fintech argues the system will allow employees more control and flexibility in their finances, and avoid accruing debt between pay checks.


In brief

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