03.09.18 Your morning briefing
The information you need to start your day, from PaymentsSource and around the Web:
Fintech's common market
As regulatory sandboxes become more appealing, the European Union is attempting to create a "Digital Single Market" in which EU regulations would align with a goal of creating a global fintech hub through shared rules.
The EU is also forming rules designed to encourage development in cloud, blockchain and artificial intelligence.
The commission is considering a pan-European label for platforms, meaning a platform licensed in one country can operate across the entire EU.
ATMs face legal limits
Commonwealth Bank of Australia is imposing deposit limits at ATMs as part of a broader effort to manage money laundering risk.
Starting April 10, the deposit limit will be about $7,800 and will apply to personal and business accounts. This move complements the bank's reporting obligations for suspicious transactions.
CBA was recently cited by the government for reporting failures, with the bank blaming the oversight on a bad technology update.
Swift's proof of concept for a distributed ledger to process "many to many" nostro bank payments was a partial success, but many banks need to move beyond legacy systems before the initiative is fully ready for launch.
34 banks participated in the test, which was designed to determine if blockchain technology can reconcile international nostro accounts in real time.
While the business requirements of the test were met, the proof of concept also found "considerable" prerequisites for industrywide adoption. For example, account to account services would have to migrate from batch processing, a bane of "faster payments," to real-time liquidity reporting and processing, and back office applications would need to be upgraded.
PhonePe, Flipkart's payments platform, took a shot at Paytm, contending Paytm's claims about being the leading payment company in India's Unified Payments Interface were "misleading," reports Financial Express.
PhonePe said Paytm "seems" to be leading the market in number of transactions, but the average value is lower. PhonePe did acknowledge that data such as average transaction value and average transactions per customer were not publically available — PhonePe based its claims on clues from other data such as unique users with more than 500 transactions.
Paytm did not comment to the paper.
From the Web
Kenyan bank KCB to boost mobile payment service as profit flattens
Reuters | Thu Mar 8, 2018 - Kenyan bank KCB Group plans to set up its own mobile payment platform this year to handle the jump in transactions via phones, its CEO said after reporting 2017 results. Chief Executive Joshua Oigara said KCB planned to spend $9 million on its mobile payments platform to help it to increase the number of transactions it can handle.
Octopus tries to win e-wallet users with HK$8 lobsters, as Hong Kong mobile payment war heats up with Chinese rivals Alipay and WeChat Pay
South China Morning Post | Thu Mar 8, 2018 - The battle for Hong Kong’s e-payment market heated up on Thursday morning as 150 shoppers queued in the rain to snap up lobsters for just HK$8 as part of a promotional campaign by Octopus. The local service provider sought to entice customers to sign up to its e-wallet as mainland Chinese rivals Alipay and WeChat Pay compete for everything in the city from taxis to food retailers.
Tesco cancels credit cards after suspected fraud
BBC News | Thu Mar 8, 2018 - Tesco Bank has cancelled some of its customers' credit cards, after concerns that a number of accounts may have been compromised. Customers may have to wait up to a week before replacement cards are issued. The bank said that only a tiny number of its three million credit card users would be affected, and apologised for the inconvenience.
More from PaymentsSource
A global fintech targets social groups that cross borders
deVere Group has added "Companion Accounts," which is designed to remove fees and enable shopping and expense management for relatives and companions that are in other countries, such as students or spouses.
U.S. execs aren't ready for Europe's data protection laws
Even if a business is located in the USA, it’s where the service is delivered that determines if the GDPR rules governing data protection in the EU apply, writes Mia Papanicolaou, COO of Striata.
Synthetic identity fraud balances grew 5% last year
TransUnion’s analysis of credit card applications and transactions finds fraudsters continue to steal more, but the rate of increase is slowing.
Google reportedly eyeing PSD2 opportunities
Google is reportedly working with a number of European banks to explore opportunities arising from PSD2.