Instant payment schemes have been developing around the world over the past five years, gaining traction in the consumer payments sector to the point where physical cash is supplanted as the preferred form of payment. But what is the infrastructure that sits behind making all of this happen and how is it regulated? Where can the opportunities and benefits be found for corporate treasurers embracing these schemes as part of their liquidity management strategy? Deutsche Bank’s new white paper provides a comprehensive guide of the schemes in place, how they work and how treasury can make the most of them.
Natixis Payments and Visa have partnered to launch Xpollens, the first end-to-end “Payments in a Box” offer that integrates a full range of innovative payment solutions for Fintechs, corporates and retailers.
Xpollens helps these players integrate a full range of payment services, from payment cards to instant payments through customer accounts. The integration of Apple Pay will help answer high demand for greater control, functionality and better user experience. Apple Pay will be available as soon as Xpollens’ solution goes live.
In a commentary article for International Banker, Sindhu Vadakath, Senior Product Manager, Global Payment Services and Asia Payments, Treasury Services, BNY Mellon, takes a look at the introduction of the Second Payment Services Directive (PSD2) and the impact it will have on the core of traditional banking.
PSD2 requires banks to share their closely guarded customer data, opening the gates for the first time to third-party payment providers (TPPs), thus disrupting banks’ long-held monopoly on the payments sector. With an aim to improve transparency, customer rights and service, as well as the costs linked to the end-to-end payments process, the legislation allows TPPs to harness customer data to create cutting-edge products that can viably compete with bank offerings.
But this data-sharing, of course, is not without its risks – especially as TPPs cannot claim the same historical reputation for security and familiarity as their bank counterparts. As such, collaboration between these industry players is key to ensure a smooth roll-out of an efficient and secure payments service for customers in the new era of open banking.
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As part of a series of articles celebrating the 20th anniversary of GTNews, Daniel Verbruggen, Michael Bellacosa, Fred DiCocco and Matt Wells from BNY Mellon Treasury Services, come together to discuss the pivotal developments in the payments industry across the last two decades.
Increased regulation resulting from events such as 9/11 and the 2008 global financial crisis have seen a shift in banks’ focus to meeting not only business objectives, but also governmental objectives. Regulations, together with increased client demands and technological advancements, have spurred banks to enhance their offerings to provide greater transparency and convenience – in keeping with the digital expectations of a modernising world.
More recently, the adoption of real-time payment systems, along with electronic banking applications and cryptocurrencies have particularly shaken the foundations of the traditional banking space, and have thrown the gates wide open to non-bank market entrants. With open banking legislation coming into effect at the beginning of 2018, the payments landscape is only set to become increasingly fast-paced and competitive, as banks strive to remain relevant and continue to meet the evolving needs of their clients.
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Technology is creating a plethora of opportunities to enhance payments. And with client expectations for new capabilities growing – spurred by the abundance of high-tech gadgets in the wider market – banks must ensure they adapt and cater to expanding digital demands.
In a commentary article for EMEA Finance, Anthony Brady, Head of Global Product Management, Treasury Services, BNY Mellon, discusses some of the changes taking place, and how it is through industry collaboration that banks can truly leverage the benefits of technology, and deliver new, value-added capabilities to clients.
The full article can be read here (subscription is required).
On January 13th, 2018, the new European Directive on Payment Services in the Internal Market (PSD2) comes into effect, marking the next stage of the European payments market’s transformation. Christian Schaefer, global head of payments, Cash Management, Deutsche Bank, explains the implementation hurdles and opportunities in an article for FTSE Global Markets magazine – and sets out why financial institutions should strive to be PSD2-ready, sooner rather than later.
Admittedly, while there are significant time and resource investments required to become PSD2-ready, the benefits for both PSUs and PSPs should become evident from day one, says Schaefer. Even so, becoming PSD2-ready should not be seen as merely as an exercise in regulatory compliance. It brings many advantages that can grant banks and fintechs new revenue streams and opportunities to enhance their client offerings.
Institutions making the TPP interface operational in time for the effective date can also be among the first to implement Open Application Programming Interface (API) capabilities – allowing them to offer new, innovative products tailored to the evolving needs of their existing (and prospective) clients.
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It will be regulation-led, but make no mistake: 13th January 2018 will see the start of a deep-rooted and long-term transformation of the European payments market. This is when PSD2, the new European Directive on Payment Services in the Internal Market, comes into force. While this prospect initially caused concern to some in traditional financial institutions, most are now embracing it as a timely and necessary stimulus to the industry to future-proof itself against a new age in payments and banking services.
Writing for Finextra, Shahrokh Moinian, global head of cash products, cash management, Deutsche Bank, suggest that, given the clear benefits to customers, banks should therefore not delay getting PSD2-ready and instead participate in the consultations and act on the early drafts of the European Banking Authority’s Guidelines immediately in order to ensure smooth implementation projects.
Read the full article here.
The rapid growth of fintech influence, increasingly sophisticated technological capabilities, growing client expectations, and new regulatory requirements, are fuelling the need for modernised payment systems. Undoubtedly, the payments space is experiencing a period of rapid evolution, with technology presenting opportunities for the industry to transform how transactions are processed.
In a commentary article for Global Banking & Finance Review, BNY Mellon’s Fred DiCocco, Global Head of Cash Management Business Development, Treasury Services, explains how through industry cooperation – with banks at the fore – new technology can be channeled for a revolutionised payments space, supporting innovations such as blockchain and SWIFT’s global payments innovation (gpi) initiative.
The full article can be read here (page 112-115).
iGTB has agreed a contract with Bangkok Bank, Thailand’s leader in corporate and SME banking, to implement a comprehensive cash management platform and corporate portal. iGTB’s Digital Transaction Banking platform will integrate a number of previously separate platforms for Bangkok Bank, giving the bank’s clients a consistent and consolidated view of their working capital and payments activities, irrespective of the country they operate in.
Commenting on the deal, Manish Maakan, CEO of iGTB, said: “This is a key strategic step for iGTB – our first Global Transaction Banking deal in Thailand, signed with the largest commercial corporate bank in the country. Building on our presence in Singapore and Malaysia, this is a statement of our wider ambitions across the region, and we’re delighted that our unique CBX 18 based Contextual Banking approach will help Bangkok Bank with their digital transformation. This won’t simply be a “get in, get out” technology implementation, it’s a joint effort where we offer our transaction banking thought leadership and expertise to ensure Bangkok Bank are strategically positioned for the long term.”
The news was covered in a number of specialist and tier one press outlets such as: ASEAN Affairs, Bankers Daily, Business Standard, Capital Market, Corporate Ethos, Finalaya, Financial IT, Finextra, Fintech Finance, Freshers Live, FSTech, Global Banking and Finance Review, IBS Intelligence, India Info Online, Reuters, The Hindu Business Line, TXF.