A TALL ORDER...COUNTRY SURVEYS INSIGHT. FEATURE. The inside track on the . European giants of France, Germany and Italy. Concepts that until recently seemed theoretical are on

COUNTRY SURVEYS INSIGHT FEATUREThe inside track on the

European giants of France, Germany and Italy

Concepts that until recently seemed theoretical are on

the brink of realisation

How is the Open Banking revolution likely to affect

industry incumbents?

A TALL ORDER

HOW STARBUCKS IS COMPETING IN THE PAYMENTS SPACE

Issue 370 / April 2018w w w. e l e c t r o n i c p ay m e n t s i n t e r n at i o n a l . c o m

EPI April 2018 370.indd 1 09/04/2018 16:22:10

2 | April 2018 | Electronic Payments International

contents

NEWS

05 / EDITOR’S LETTER06 / DIGEST• Denizen launches first fee-free

cross-border account• mada taps Mastercard for online

payments in Saudi Arabia• UK government to set up

cryptoassets task force• JPMorgan plans Blockchain spin-off• Google Assistant adds voice

command feature• Borica opts for OpenWay platform• UniCredit launches Samsung Pay• SWIFT facilitates real-time payment

message tracking• Wirecard collaborates with Travel

Easy, and rolls out wearable service • Revolut launches disposable cards• Flywire taps Flutterwave to support

cross-border payments in Nigeria• Alipay joins with Openpay to expand

into Mexico• Earthport secures NY State licence

10

this month

Editor: Douglas Blakey+44 (0)20 7406 6523

[email protected]

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[email protected]

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STARBUCKS

COVER STORY

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EPI April 2018 370.indd 2 09/04/2018 16:22:30

12 / BPAYAdam Herson, business development director at Barclays Mobile Payments, speaks to Briony Richter about bPay’s partnership with seven watch brands, and the future for payment-enabled wearables

16 / ALTERNATIVE PAYMENTSTenpay and Alipay are fast approaching a combined one billion users, but what of the other notable alternative payment solutions, and which smaller players might be ones to watch? Douglas Blakey reports

www.electronicpaymentsinternational.com | 3

contents

april 2018

14

10 / STARBUCKSStarbucks was the first retailer to introduce mobile payments on a large scale, with its QR code-based mobile app. It continues to see growth, driven by the more recent Order Ahead function. Robin Arnfield reports

13 / BANCO SABADELLEvery market has its own level of financial risk. However, as the UK is a global banking hub – some argue the banking hub – the risks can be much greater. Patrick Brusnahan sits down with Javier Sanchez-Ureta to discuss

14 / OPEN BANKINGCompliments have been paid as to how Open Banking will aid customers and improve experience, but how will incumbents be affected? And are the big financial institutions even ready? Patrick Brusnahan reports

18 / PLUTUSPlutus aims to bring blockchain to the masses, creating a lifestyle around the cryptocurrency opportunity. Briony Richter speaks to CEO Danial Daychopan and marketing head Peter Panayi about what the business can deliver

19 / FRANCEFrance’s payments market is mature and highly competitive, registering the highest turnover per card for 2017 among peers including the UK, the US, Germany, Italy, Spain and Canada

20 / GERMANYGermany has a strong economy and high levels of financial inclusion, despite a strong consumer inclination for cash for the majority of transactions, due to ingrained habits and a preference for spending within one’s means

21 / ITALYDespite being Europe’s fourth-largest economy in terms of nominal GDP, Italian consumers have remained slow adopters of electronic payments, primarily as a result of a strong inclination for cash

21

22 / SIX PAYMENT SERVICESWith the accelerating pace of technological change, concepts that until recently seemed merely theoretical are now on the brink of realisation, writes Urs Gubser, head of e-commerce at SIX Payment Services

INDUSTRY INSIGHT

COUNTRY SNAPSHOTS

ANALYSISFEATURES

20

EPI April 2018 370.indd 3 09/04/2018 16:22:48

Page 3

Key Issues

∤ How is the regulation change set to challenge industry practices?

∤ What is the future of Europe without Britain?

∤ How can the private banking industry in Germany rival its neighbours?

∤ Is Germany the traditional wealth hub we all know or will it become the new FinTech centre?

∤ How can robo-advisors present opportunity to traditional wealth managers?

∤ How are FinTech start-ups rivalling the market?

∤ How can firms remain cyber safe and raise their security profile?

∤ Can collaboration between incumbents and FinTechs be the next big thing?

∤ Discovering Germany’s best kept investment secrets

∤ How can banks leverage technology to strengthen the human relationship?

∤ An insight into the next generation and how they are shaping the industry

SHAPE THE FUTUREOF PRIVATE BANKING

HEAR ∤ NETWORK ∤ DISCOVER ∤ CELEBRATE

Private Banking and Wealth Management Germany 2018

24th April 2018 ∤ Villa Kennedy, Frankfurt

Our launch Private Banking & Wealth Management: Germany 2018 Conference & Awards brings together private banks, family offices,

independent wealth managers and intermediaries in an active discussion of the key issues facing the industry. The informative and inspiring

keynote sessions and informal conversations provide setting for you to join other high-profile guests in engaging discussions.

For more details please contact:

Vicki Greenwood on [email protected] or call +44 (0) 20 3096 2580

Brand Sponsor Exhibitors Supported by

EPI April 2018 370.indd 4 09/04/2018 16:22:51


editor’s letter

Israel ramps up attack on cash; mobile payments set for further boost

Get in touch with the editor at: [email protected]

Douglas Blakey, Editor

Long regarded as the ‘start-up nation’ – Israel enjoys the highest density of startups per capita in the world – but despite attracting the most venture

capital per capita of any nation, in payments terms Israel has a bit of catching up to do

Israeli consumers are still strongly inclined towards cash. The Bank of Israel has made several regulatory interventions to try and boost electronic payments and promote a desperately underpenetrated debit cards market compared to Western markets. Now, after around two years of often heated debate, Israeli regulators have acted to curb the use of cash.

From 2019, there will be a limit on cash transactions to businesses of NIS11,000 ($3,100), and this may be further reduced to NIS6,000 in 2020. Cash transactions between individuals will be limited to NIS50,000, and this may reduce to NIS15,000 in 2020. The new regulations also limit cheques to a maximum of NIS10,000.

Israeli regulators argue that current cash transactions are fuelling the black economy, with people selling goods and services and not reporting income. According to a report from the World Bank, Israel’s shadow economy as a share of GDP was estimated to be about 22%. In 2016, Israel’s GDP was around $350bn meaning that about $70bn of income is undeclared; at a tax rate of around 30% the government is losing more than $20bn a year.

Debit card penetration in Israel was a miserable 10.3 cards per 100 individuals in 2016, lower than local peers Iran (337.3), the UAE (109.3), Bahrain (97.4), Kuwait (93.1), Oman (85.8), Saudi Arabia (75.8) and Lebanon (33.4).

To increase acceptance of debit cards among retailers in Israel, the central bank reduced the interchange fee from 0.7% to 0.3%; other initiatives included mandating banks to issue debit cards free of charge. Despite such initiatives, Israeli banks remain under fire from consumers from consumers who perceive bank charges to be excessive.

Reasons to be positiveThere is cause for optimism, with further regulatory attempts to boost competition. The credit cards sector is heavily concentrated and dominated by Israel’s two largest banks, Hapoalim and Leumi. The two banks must sell their credit card units by 2020 or, if the units are listed, the banks must reduce their stakes to below 40%.

The banking sector is also upping its game in terms of innovation with two recent examples worthy of note. Last June, to much acclaim, Leumi rolled out Pepper, a first-of-its-kind digital platform in Israel to allow customers to manage all their banking activities entirely via mobile, and – crucially in the local market – charging no current account fees. Pepper offers fully digital onboarding as well as payments, transfers, loans, savings and investments.

The country’s fourth-largest lender, Israel Discount Bank, also has a hit on its hands via its voice-activated P2P money transfers via Apple’s Siri. Discount Bank’s service launched last June and is a first in the local market – and one of the first anywhere. The new offering has created a buzz and is helping to empower its digital brand. Impressively, the bank managed to initiate the P2P money transfer via Siri within five months of the project launch.

Other recent digital highlights from Discount Bank include its AI-driven digital assistant Didi. Powered by Personetics, Didi answers customer queries, as well as offering personalised insight and guidance.

Didi builds on Discount Bank’s innovative touch-ID mobile biometric login solution for mobile banking – a new business banking website and app in 2017, and a new trading website for retail customers, also in 2017.

In recent years, Visa Europe, Barclays and Citi have all established innovation centres in Israel, while tech giants Microsoft, Google, Apple, IBM and Facebook have invested in the area. <

Page 3

Key Issues

∤ How is the regulation change set to challenge industry practices?

∤ What is the future of Europe without Britain?

∤ How can the private banking industry in Germany rival its neighbours?

∤ Is Germany the traditional wealth hub we all know or will it become the new FinTech centre?

∤ How can robo-advisors present opportunity to traditional wealth managers?

∤ How are FinTech start-ups rivalling the market?

∤ How can firms remain cyber safe and raise their security profile?

∤ Can collaboration between incumbents and FinTechs be the next big thing?

∤ Discovering Germany’s best kept investment secrets

∤ How can banks leverage technology to strengthen the human relationship?

∤ An insight into the next generation and how they are shaping the industry

SHAPE THE FUTUREOF PRIVATE BANKING


Private Banking and Wealth Management Germany 2018

24th April 2018 ∤ Villa Kennedy, Frankfurt

Our launch Private Banking & Wealth Management: Germany 2018 Conference & Awards brings together private banks, family offices,

independent wealth managers and intermediaries in an active discussion of the key issues facing the industry. The informative and inspiring

keynote sessions and informal conversations provide setting for you to join other high-profile guests in engaging discussions.



Brand Sponsor Exhibitors Supported by

EPI April 2018 370.indd 5 09/04/2018 16:22:59

News | Digest


uk government to set up task forcE for CryptoassetsThe UK government has announced plans to launch a task force for cryptoassets, to curb the potential risks in the sector while capitalising on its benefits.

The new task force will include members from HM Treasury, the Bank of England and the Financial Conduct Authority, and is part of a broader fintech strategy.

Chancellor of the Exchequer Philip Hammond said: “From the Square Mile in London to Scotland’s Silicon Glen, the UK leads the world in harnessing the power of fintech as we create an economy fit for the future. I am committed to helping the sector grow and flourish, and our ambitious sector strategy sets out how we will ensure the UK remains at the cutting edge of the digital revolution.

“A new task force will help the UK to manage the risks around cryptoassets, as well as harnessing the potential benefits of the underlying technology.”

Regulators worldwide have increased their focused on cryptocurrencies in recent times, due to their volatility. In February, the Treasury Committee launched an inquiry into digital currencies and their opportunities and risks.

At the time, Treasury Committee chair Nicky Morgan said: “People are becoming increasingly aware of cryptocurrencies such as Bitcoin, but they may not be aware that they are currently unregulated in the UK, and that there is no protection for individual investors.

“The Treasury Committee will look at the potential risks that digital currencies could generate for consumers, businesses and governments, including those relating to volatility, money laundering and cybercrime. We will also examine the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment.” <

news digestDenizen launches first fee-free cross-border accountDenizen, a Silicon Valley start-up backed by BBVA, is launching an account that will have no fees attached for holders making global transactions.

It will be the world’s first fee-free cross-border account. TransferWise already offers borderless accounts, but with charges attached.

By simplifying banking at account level for global customers, Denizen said it is aiming to improve time and cost savings for individual wire transfers, remittances and payments through a single solution.

Denizen CEO Joaquin Ayuso de Paul said: “National borders act as barriers to the free movement of money, inhibiting individuals and limiting the potential for global commerce.

“Denizen is on a mission to simplify banking for global citizens. By delivering the world’s first truly borderless account, we make it easy for anyone to access the

financial system from anywhere, then carry it with them as they move for work or travel.”

Ian Ormerod, head of new digital businesses at BBVA, said, “As someone who has lived and worked in a number countries globally, I know first-hand how difficult it is to manage one’s money across borders. Denizen solves a very significant problem for more than 50 million expats and 250 million migrants. ”

The Denizen account debit card charges no fees for foreign exchange and use at non-bank-owned ATMs; the account also features a mobile app.

Targeting mostly expatriate clients, Denizen said it aims to provides a solution for anyone that has to manage finances across country borders. The service is scheduled to expand further in 2018, adding up to 10 European Union countries in the second half of the year. <

mada taps Mastercard for online payments in Saudi ArabiaSaudi Arabian domestic payment network mada has announced a joint partnership initiative to facilitate online payments for cardholders and merchants in the country through Mastercard’s Payment Gateway Services technology.

The initiative will also enable all online merchants to accept mada cards as a primary mode of payment.

mada’s network facilitates all financial movements in Saudi Arabia, linking ATM and POS transactions to a merchant’s bank and the card issuer.

Director of the Saudi Arabian Monetary Authority’s payment systems department, Ziad Al Yousef, said: “mada represents the innovative generation of electronic payments

in Saudi Arabia, and one of the fastest-growing payment systems in the world.

“Utilising Mastercard’s technology to facilitate online payments via the

network will enable Saudi businesses to significantly

increase their e-commerce sales by offering consumers more flexibility and convenience and diversify their available

payment options.”Mastercard’s Middle East and

North Africa division president, Khalid Elgibali, said: “We are delighted

to partner with the kingdom’s domestic payment network, mada, and use our Payment Gateway Services technology to make payments safe, simple, and smart in Saudi Arabia, as we work towards our vision of a world beyond cash.” <

EPI April 2018 370.indd 6 09/04/2018 16:23:15

News | digest

JPMorgan plans Blockchain project spin-offUS banking giant JPMorgan Chase is planning a spin-off of its main Blockchain project, Quorum, to increase the platform’s adoption as an independent entity, the Financial Times has reported.

Designed as a customised form of Blockchain technology using the Ethereum network, the bank developed Quorum to streamline operations including cross-border payments and clearing. The development was led by JPMorgan Blockchain Centre of Excellence executive director Amber Baldet.

Blockchain uses distributed ledger technology to transmit information to connected systems, secured by cryptography.

Many lenders were reluctant to use Quorum due to its close association with JPMorgan, which prevented the system from becoming an industry standard. Accordingly, the bank is now working to spin off its main Blockchain project, which will become a separate entity.

JPMorgan refused to comment on the speculation, and it is not yet clear if employees working on the Quorum project will move to the new entity.

In October 2017, Reuters reported that the US bank was planning to use Quorum to develop an interbank payments platform with Australia and New Zealand Banking Group.<


Google Assistant adds voice command feature

Google has upgraded its Google Assistant feature by adding the capability to send or request money using voice and Google Pay.

The functionality will be available free of charge to US users with Android or iPhone devices. Plans are also in place to incorporate the functionality into smart speakers such as Google Home.

Google Pay product manager Sam Kansara wrote in a blog post: “To get started, just say ‘Hey Google, request $20 from Sam for the show tonight’ or ‘Hey Google, send Jane $15 for lunch today’, and let your Google Assistant do the rest.”

To initiate transfers through Google Assistant, users need to set up a Google

Pay account. Users without a Google Pay account will be prompted to install the app the first time they ask Assistant to send money.

The fund transfer process will be instant, even for recipients who do not have a Google Pay account, Google said.

“Your friends and family will receive an email, text message or notification if they already have the Google Pay app installed, so they can cash out,” Kansara’s blog post continued.

Google Pay, which launched in February 2018, was created through the merger of payment services including Android Pay and Google Wallet. <

Borica opts for OpenWay digital payment platformBulgarian payment processor Borica has chosen OpenWay’s Way4 digital payment software platform to enhance its core operations.

OpenWay will provide a card-processing solution for real-time fraud detection, e-commerce, mobile wallet and tokenisation. The payment processor aims to use the new platform to drive growth in the business, including expansion of cross-border services.

The move is part of Borica’s digital transformation project that aims to develop new value-added services and upgrade existing ones. The platform’s selection was based on its flexibility and ability to deliver on time and support the payment processor’s service expansion, OpenWay said.

Borica’s cards and terminals division head, Radoslav Dimitrov, said: “The project known as Borica New Generation will impact significantly the whole card payment environment in the country. The tender procedure has been held among more than 10 leading international card system vendors, and completing all its stages took us nearly two years.

Dimitrov continued: “OpenWay managed to cover all our requirements for flexibility, security and business expectations. Today we are confident that this partnership will change the future of card business in Bulgaria.” <

EPI April 2018 370.indd 7 09/04/2018 16:23:21


Wirecard collaborates with Travel Easy, and rolls out wearable and card-based payment service in EuropeWirecard has joined with Travel Easy to integrate Chinese payment platform Alipay for luxury goods retailer MCM.

The collaboration will enable MCM to integrate automatic 100% VAT refunds for Chinese customers at the point of sale. The retailer currently operates 500 outlets in 39 countries.

Wirecard will integrate Alipay into its existing infrastructure through its digital platform Wirecard ePOS App.

Travel Easy general manager Ralf Kern said: “Our strategic objective is to provide European retailers with exclusive insights into Chinese target groups, simultaneously offering Chinese consumers innovative value-added services. As payment is one

of the key factors used to target Chinese travellers, we are delighted to align with such a strong partner as Wirecard.”

Wirecard team lead partner management Stephan Ritzenhoff added: “We are looking forward to supporting a brand like MCM to take a step forward in equipping their stores with an advanced, convenient payment method. In the future we are also planning to extend our collaboration with Travel Easy to further fields.”

Wirecard is also set to roll out its digital payment and access solution in Central and Eastern Europe to enable easy and secure transactions through wearables and cards. The closed-loop solution can also be directly integrated into POS till systems.

Wirecard initially deployed the payment solution at Smart Business Centre in Graz, Austria to enable instant top-ups and use of the card for daily food purchases.

Through the new service, the centre intends to promote digitisation and boost business intelligence in Graz, which has already received support from Wirecard to become a smart city.

Wirecard CEE managing director Roland Toch said: “We are looking forward to bringing our payment and access solutions to all of Central and Eastern Europe.

“We see a huge demand in the market for smart digital closed-loop systems – especially for companies that employ hundreds and thousands of people.” <

News | Digest

UniCredit launches Samsung Pay in Italy

Italy-based banking and financial services provider UniCredit, has formed a new partnership to launch Samsung’s payment service for cardholders in the country.

Users of Samsung devices with UniCredit credit cards, MyPay and MyOne prepaid and debit cards will now be able to use the Samsung Pay app to make fast and safe in-store transactions.

The payment application is compatible with POS terminals enabled for both contactless and magnetic-stripe cards without NFC technology. Tansactions require authorisation through biometric systems such as fingerprint or iris, or PIN authentication.

UniCredit general manager Gianni Franco Papa commented: “We are living in a world that is increasingly digital, characterised by a speed of change like we have never seen before and where people are constantly looking for personalised and instant services to meet their needs, any time and anywhere.

“For this reason, we are committed to the development of innovative products and services – both leveraging our internal platform, as part of the Transform 2019 plan, through IT investment of €2.4bn ($2.9bn) and collaborating with external partners, to expand our offer with the best solutions on the market.” <

SWIFT facilitates real-time payment message trackingInterbank messaging service SWIFT has extended its gpi Tracker to incorporate all payment instructions across the network.

The tracking engine, implemented in May 2017, is available through an open API and offers banks a real-time view of payments. It also offers confirmation when funds reach recipients, and supports more accurate reconciliation of payments and invoices.

The tracker will be upgraded in November 2018 to include an end-to-end transaction reference in all payment instructions conducted on the network. SWIFT said the upgrade will offer more transparency and cost reduction for customers.

SWIFT’s head of Oceania, Bill Doran, said: “SWIFT gpi has been hugely beneficial for banks and their customers since its launch, but extending this tracking facility across all payments traffic will be truly transformational.

“These expanded tracking capabilities are part of a series of gpi services we will roll out in 2018 to further improve the cross-border payments experience, enable banks to provide a far superior service to their customers, and rapidly attract more banks to join.” <

EPI April 2018 370.indd 8 09/04/2018 16:23:27


News | Digest

Revolut introduces disposable virtual cardsLondon-based digital banking alternative Revolut has launched disposable virtual cards in a bid to tackle fraud and increase consumer confidence in online payments.

Users will be able to set up disposable virtual cards in seconds, with card details that are destroyed after every transaction and new ones automatically regenerated, adding an extra layer of security to the platform.

The disposable virtual cards will work with Revolut’s existing security features, which include location-based security, and the ability to freeze and unfreeze cards. The technology aims to prevent online scammers from

copying card details, by eradicating the risk that card details could be stolen from online databases.

Vlad Yatsenco, CTO and co-founder of Revolut, stated: “While fintechs generally offer a better service than traditional banks, they still have a long way to go in order to build trust and confidence with consumers.

“Instead of matching what the larger institutions are doing, we are changing the game entirely by introducing disposable virtual cards and promoting existing features such as location-based security and the ability to freeze or unfreeze cards.”

Yatsenco continued: “It will take approximately 800 years before we begin to run out of 16-digit card numbers, so we view disposable virtual cards as a sustainable, long-term solution to tackling online card fraud. And by automating this process, the customer experience is instant and stress-free.”

The disposable virtual cards are only available to premium customers.

For the purposes of fraud prevention, a disposable virtual card will only work for up to five payments per day, with each premium user permitted to create one disposable card per account. <

Flywire taps Flutterwave to support cross-border payments in NigeriaUS-based payment and receivables solutions provider Flywire has selected Flutterwave’s Rave payment platform to facilitate cross-border payment transactions for students, patients and businesses in Nigeria.

According to Higher Education Statistics Authority data, Nigeria is the main source of international students and patients from Africa. The country exports and imports goods and services worth around $35bn and $30bn respectively each year, according to World’s Top Exports data.

Flywire CEO Mike Massaro said: “Nigeria can be a very complex foreign exchange

environment. Together with Flutterwave, we are removing a lot of that complexity and providing a more seamless payment

experience for international students, patients and businesses.

“Nigerians will now have the convenience of being able to make digital, cross-border payments in their local currency, through ebank

transfers, credit or debit cards, and mobile payments,” Massaro

continued.“Our partnership will also streamline the

reconciliation of these payments on the receiving end for schools, hospitals and businesses.” <

Earthport secures NY State money transmitter licence

Earthport North America, part of UK payments company Earthport, has obtained a New York state money transmitter licence.

The authorisation, which has been backdated to be effective from February 2018, will enable the business to send and receive money from New York state to any location across the world.

The move will support wire transfers, foreign currency dealing and exchange, bill paying, and other money transfer methods.

Earthport US general counsel Marta Ramirez said: “Multi-State Licensing is a requirement to fully service the US market, and the New York State licence is a key step in fulfilling our strategic ambitions in the US.”

Earthport interim CEO Phil Hickman added: “The award of our New York State money transmitter licence marks a significant achievement for Earthport, with it we are able to meaningfully expand our offering into the United States, and develop new commercial opportunities.” <

Alipay joins with Openpay to expand into MexicoAlipay, the Chinese payments platform operated by Ant Financial Services Group, has collaborated with Mexican online payments startup Openpay in a move to expand its reach to the country.

Openpay has over 17,500 associated points of sale in Mexico, which are connected through its Paynet network. The business has a diverse client base, including multinational e-commerce merchants, airlines, ride-sharing businesses and ticketing platforms.

The latest collaboration is a response to rising demand for Mexican products by Chinese users. The partnership will enable more than 600 million Chinese customers

to use Alipay wallets at Openpay-affiliated merchants.

Alipay Americas president Souheil Badran said: “Our partnership with Openpay not only connects Mexican merchants with Chinese consumers seeking their products and services, but also opens new revenue channels for merchants in Mexico.”

Openpay COO Eric Nunez added: “Chinese shoppers represent an important and growing audience for our Mexico-based merchants. By enabling our merchants to offer Alipay, we are ensuring that Chinese shoppers visiting their websites can use a frictionless, familiar payment method.” <

EPI April 2018 370.indd 9 09/04/2018 16:23:32


feature | starbucks

By loading the prepaid Starbucks Card onto the app, Starbucks customers can make purchases at Starbucks stores by scanning their QR code.

Since 2015, customers have been able to use the Starbucks app’s Mobile Order & Pay order ahead function to order food and drinks before entering Starbucks stores.

Starbucks customers have the option of using multiple mobile payment methods for purchases in Starbucks stores, such as Apple Pay and Chase Pay, in addition to the Starbucks app. Currently, only members of the Starbucks Rewards loyalty programme are able to use the Starbucks app’s Mobile Order & Pay feature, but this is set to change soon.

“During its first-quarter 2018 earnings call, the company shared plans to open up Mobile Order & Pay to all customers, including those outside its loyalty programme, later this year,” a Starbucks spokesperson tells EPI.

DATAIn the quarter ending 31 December 2017, payments using the Starbucks Mobile App accounted for 31% of total Starbucks transactions at company-operated US retail stores, the business says. Starbucks order ahead transactions accounted for 11% of total transactions in the first quarter of 2018 at Starbucks-owned US stores.

Around 3,300 company-owned US stores experience 20% and above of their total transactions via order ahead in peak periods, which Starbucks defines as the busiest consecutive four half-hours from Monday to Friday. In quarter one of 2018, $2.35bn was loaded on Starbucks Cards in the US and Canada, with Starbucks Cards accounting for 42% of total transactions at company-owned stores in Canada and the US in that quarter.

In the US, there were 14.2 million active Starbucks Loyalty programme members in the first quarter of 2018, and My Starbucks Rewards accounted for 37% of total tender in US company-owned stores in that quarter.

CO-BRANDED CARDSStarbucks recently introduced a co-branded Visa credit card which is issued by Chase, and announced plans to launch a Visa-branded prepaid card with the bank. Tied to the coffee company’s rewards loyalty programme, the Starbucks Rewards Visa Card can be used to purchase food and beverages at over 8,000 participating Starbucks.

“Starbucks evaluated its customers and understood that deploying a ‘one-size-fits-all’ payments model won’t work for everyone,” says Michael Moeser, director of payments at US-based Javelin Strategy & Research.

“The Starbucks app may work for wealthy brand loyalists, but not for the customers of competitor brands or people on a budget,” Moeser adds. “Starbucks also realised that some consumers are disillusioned with today’s rewards cards, because they will never earn that trip for two to Cancún. So Starbucks teamed up with Visa to launch a co-branded credit card that delivers meaningful rewards in the form of an everyday luxury: Starbucks coffee.

“It has also focused on budget-conscious customers who want to control spending by launching a new prepaid card. Through these new products, coupled with its mobile strategy, Starbucks is looking to engage with all customer types to enable frequent shopping visits to its stores.”

CASHLESS PILOTA recently launched initiative involves Starbucks piloting a cashless store in Seattle, US. The purpose of the pilot is to help Starbucks understand how cashless forms of payments affect customer experience at the restaurant, a spokesperson tells EPI in an email. “We look forward to learning more, but don’t have additional information to share on the future of this test, or whether we will expand the test to additional stores or markets at this time,” she says.

“I would expect that Starbucks will expand the Seattle cashless store pilot once it has proven the concept,” says Aite Group senior

starbucks remains the mobile payment starStarbucks was the first retailer to introduce mobile payments on a large scale, with the 2009 launch of its QR code-based mobile app. It continues to see growth, driven by the more recent order ahead function. Robin Arnfield reports

EPI April 2018 370.indd 10 09/04/2018 16:23:39


feature | starbucks

analyst Thad Peterson. “But Starbucks will probably expand selectively, identifying stores and markets where the upside opportunity for cashless is strong. I wouldn’t expect it to be a system-wide endeavour.”

In the company’s first-quarter-2018 earnings call, Kevin Johnson, president, CEO, and director of Starbucks, said: “The ubiquity of mobile and credit card payment is enabling us to begin an exploration of cashless stores in the US. We expect payment methods will continue to evolve with acceptance increasingly becoming the global currency of the future.”

The background to the pilot is the fact that, in 2017, Starbucks experienced lines at some of its higher-volume stores, partly due to the popularity of mobile order ahead. Reportedly, the delays this caused led to some customers leaving without placing an order in the store, which affected Starbucks’ quarterly sales growth.

LEADER“Starbucks is the undisputed market leader in using mobile payments for order ahead as a competitive advantage,” says Richard Crone, CEO of US-based Crone Consulting. “The company has opened up all avenues of mobile payment. For example, you can fund your Starbucks App via Apple Pay, Chase Pay, Visa Checkout or Mastercard Masterpass, and also use these methods for purchases in its stores.”

Crone says that, with its Visa co-branded credit card and planned Visa prepaid card, Starbucks is expanding its own-brand payments acceptance methods. “Its goal is to use its preferred tender such as the co-branded Chase-Starbucks Visa card with the Starbucks mobile prepaid account,” he explains.

“The dominant mobile payment method at Starbucks is its own mobile app, and its mobile order ahead service is growing dramatically,” notes Crone Consulting managing partner and research director Heidi Liebenguth. “Order ahead is a disruptive technology, as it has the potential to increase same-store sales by up to 40% in individual QSRs [quick-service restaurants], without increasing store locations,” Crone continues.

“The QSR can use incentives to encourage customers to make purchases during slow periods, which helps with the supply chain. The advantage for customers is that, with order ahead, they know how long it will take to get their drink order. If Starbucks continues to see growth in order ahead at the same rate as now, in six years’ time, its stores will look like Apple Stores, as the majority of sales will be order ahead.”

Outside the US, Starbucks’ biggest market for order ahead is China. “Starbucks accepts Alipay and WeChat Pay, which have 500 million active mobile payment users in China,” says Crone. “China is growing by 30% for Starbucks, especially as mobile payments in China are made via QR codes.”

Starbucks began accepting Alibaba’s Alipay and Tencent’s WeChat Pay in 2017 in China. According to the company’s first-quarter-2018 earnings call, Starbucks digital payments in China have increased to over 60% of total tender. “Ninety-day active Starbucks Rewards members now total over six million, and our e-commerce and social gifting in China represented nearly 20 million in the first quarter of 2018, up threefold from a year ago,” Johnson said in the earnings call.

PRIME-MOVER ADVANTAGE“Starbucks had the benefit of starting with a successful loyalty programme and selling a product with a daily purchase habit when it began its mobile payment strategy,” says Jordan McKee, principal

analyst, payments, at US-based 451 Research. “Few QSRs and merchants have this pre-existing advantage.”

McKee says ease of use, convenience and rewards underpin Starbucks’ mobile payment proposition. “The combination of these three elements within a single experience is what has helped separate Starbucks from its peers,” he notes.

“Starbucks was among the first QSRs to make a large investment in technology,” McKee says. “Unlike many others, it chose to not rest on its laurels after the launch of its mobile payments app. Starbucks continues to augment its mobile experience by adding new features and capabilities, such as mobile order ahead and gamification.”

Commenting on the Starbucks co-branded credit card, he says: “Merchants whose businesses are characterised by small-ticket transactions haven’t traditionally been noteworthy players in the co-branded credit card arena. With that said, Starbucks enjoys an intensely loyal customer base and quite literally sells an addictive product. Its efforts here shouldn’t be overlooked”.

“Many retailers and QSRs have attempted to emulate Starbucks’ success in mobile payments, but few have seen the same level of strong adoption. Notable mentions include Kohl’s, Dunkin’ Donuts and Sweetgreen.

EXTRAORDINARY SUCCESSStarbucks kicked off the mobile wallet movement in 2009 with the first successful application of mobile payments in the US, notes Mobile Wallets: News From the Front, an Aite Group report by Thad Peterson.

“Starbucks’ extraordinary success with mobile payments can be attributed to several factors,” the report says.

“Product offering: Starbucks offers a low-cost product, and the coffee category drives high purchase frequency. Starbucks customers reportedly make purchases an average of 18 times per month.

“Strong rewards programme: My Starbucks Rewards, a classic frequency-based incentive/rewards programme, lends itself to a high-frequency/low-transaction-value environment and is simply communicated on a mobile form factor.

“Simple wallet structure: Starbucks uses a simple prepaid card model that can automatically load value, and the wallet is enabled with a simple bar code, minimising transaction friction and accelerating the transaction process. The Starbucks wallet simplifies loyalty and payment and embeds the process in a single easy-to-use app.” <

20132014

20162017

2015

10%16%

21%25%

29%

starbucks mobile payments

Source: Starbucks, Aite Group

Starbucks mobile payments transaction volume percentage

EPI April 2018 370.indd 11 09/04/2018 16:23:40


There are now numerous ways to pay with wearables. Improved security is rapidly unlocking

payment functionality in devices such as smartwatches, and fitness-focused wearables like Fitbit.

In collaboration with Guess Watches, Mondaine, Timex, Kronaby, Suunto, Adexe and LBS, bPay will embed its flexible payments chip in a variety of timepieces, sports trackers and watch straps. These partnerships will allow customers to choose fashionable accessories while enjoying the benefits of speed and ease offered by connected payments.

Adam Herson, business development director at Barclays Mobile Payments, speaks to EPI about bPay’s new partnerships and the demand from consumers to develop more payment-enabled wearables.

“Barclaycard data reveals mobile and wearable payments are surging in popularity, seeing the highest growth rates of any form of ‘touch-and-go’ payment technology, with the amounts spent increasing by 365% and 129% respectively in just 12 months. The spike in usage of mobile and wearable payments indicates not only an increased demand by consumers to pay quickly and easily, but also a desire to opt for a contactless payment method which best suits their needs.

“The new partnerships provide consumers with an increasing range of ways to use wearable payments in their daily lives, giving them greater choice than ever before. Partnering with some of the world’s best-selling watch brands now allows discerning consumers to combine the much-needed

functionality of a payment device with the style and attractiveness of the traditional timepiece.”

The simplicity of wearable technology is very appealing to today’s society. The ability to use devices on the body to seamlessly make purchases takes the convenience of mobile and contactless payment to a new level.

WEARABLES FOR ALLBarclaycard launched its first bPay technology trials back in 2012, and in 2015 it launched three payment products – a fob, wristband and a sticker.

Now with an array of devices on offer, it is all about accelerating mass-consumer adoption. While many consumers, especially in older generations, have concerns surrounding the security of wearables, the technology has continued to gain widespread acceptance, and Herson notes that although some might be wary of the technology, it is beneficial for all age groups.

“There are lots of different ways in which these products can help shoppers to make quick and simple on-the-go purchases – with connected systems, the opportunities are endless, and it’s not confined to one consumer base. Fitness fanatics can make fast and easy purchases on a run or at the gym, while the fashion-conscious are able to carry their payment method around with them in the form of a piece of jewellery or clothing.

“Wearable payments can also help increase accessibility for consumers with disabilities. For example, there is no need to enter a PIN for those with visual impairments, and people

with dexterity issues don’t need to pull out a purse or wallet for every purchase,” he adds.

The partnerships will allow style-conscious consumers to pick a watch that reflects their individual style. Timex is set to launch eight new watches in May that will have the bPay chip technology to unlock contactless payments.

However, there are now so many different types and styles of payment devices in the market. What sets these products apart?

“A contactless-enabled timepiece offers something different from a smartwatch. Our game-changing, flexible bPay chip means we can transform any traditional, analogue timepiece into a smart device with cutting-edge functionality – without sacrificing style. This means customers will be able to buy a watch or fitness tracker that not only suits their taste, but also unlocks the benefits of speed and ease offered by connected payments,” Herson highlights.

The way consumers are making payments is changing faster than any other area in the financial sector. Driven by consumer demands, financial institutions are constantly developing new and more convenient ways to pay. Herson argues that wearables are set to lead the financial sector to the next level.

“We expect the wearable payment sphere to continue to expand as consumer appetite for wearable payments continues to increase. Today, we’re embedding payment technology into watches, jewellery, fitness trackers, car keys and jackets, but in the future we could see widespread use of contactless-enabled everyday items, such as water bottles or pens.

“Invisible payments is another area of the industry that will see interesting developments this year, with this ‘just walk out’ model continuing to expand into new areas such as supermarkets and restaurants, unlocking greater convenience for shoppers and diners. Last month, Barclaycard trialled an invisible payments innovation, Dine & Dash, with the high street restaurant chain Prezzo. The Dine & Dash technology uses a mobile app to automatically take payment from customers for their meal, enabling diners to simply walk out after eating and bypass the traditional bill-paying process.”

Globally, consumers are hungry for a variety of payment options that meet their individual daily needs. Although some are still to be convinced of the technology’s security, innovative solutions and products produced by companies like Barclaycard are driving acceptance of more frictionless payment solutions. <

analysis | bpay

wearables: the next level of contactlessIn recent years the financial sector has seen a plethora of payment innovations. Adam Herson, business development director at Barclays Mobile Payments, speaks to Briony Richter about bPay’s partnership with seven watch brands, and the future for payment-enabled wearables

EPI April 2018 370.indd 12 09/04/2018 16:23:41


Nobody wants their money to be insecure. Traditionally, a bank is thought to be the safest place but

that is quickly changing.Post-2008 and the global financial crisis,

consumers have been constantly wary of their bank. Media coverage of cyberattacks and rises in fraud seem almost constant.

At the same time, alternative options were becoming available, from PayPal to mobile payments such as Apple Pay. An institution does not even need to be a bank to offer a current account any more.

Spain-based Banco Sabadell made strides into the UK in 2015 with its acquisition of TSB. This gave it access to one of the most monitored and most attacked markets in the world.

Patrick Brusnahan (PB): How big do you think the risk threat is at the moment in the financial sector?Javier Sanchez-Ureta (JSU): I think risk is increasing but so is risk awareness. If there is a risk, everyone is now aware of it. Everybody hears about cyberattacks.

The noise about risk is high and now we have all known about it for years in advance and the impact it will have.

PB: Do third parties have a part to play in this as they are less scrutinised than banks? JSU: A complaint from the banking industry is that we are so regulated and the newer players are not. It’s true, but it’s there and you have to deal with it and push the regulators to make an environment where everyone is on the same level.

PSD2 helps that in terms of sharing information with third parties. There is some kind of requirement there that all should comply with, not just banks, but fintechs as well. The risk is there but there are steps at the moment to put all of us on the same plate.

PB: Do you feel there is an issue with liability?JSU: There are two sides of the coin. You have the relationship with the client that focuses on the good things, but you also need to be there for the bad things. Is this fair?

This model is good and showing the reality of it all. I think it’s the way the world runs.

PB: Is it good that you still own the relationship, even if it is through complaints or issues? Would you prefer customers came to you rather than a man in the middle?JSU: If you can control the answer, it is better if you control the conversation. If you are doing well in your diligence, you do not have to be afraid to talk to your customers.

PB: How is risk in Spain different from other regions? JSU: In terms of fraud, the UK is huge compared to Spain.

I am sure if I consider the UK to be the financial centre of the world, but in a huge

market, it is normal the bad guys go to the UK more often. The situation is that fraud is higher in the UK than in Spain, but doesn’t mean we do not have fraud in Spain. In terms of volume, it’s very different.

For other forms of risk, it’s different and the levels of risk are the same. Global vendors with global risk and there’s no difference there.

PB: How is Sabadell combating these risks?JSU: Cyberintelligence and sharing information are importance. When a client comes in, we will have information and share it with other impacted companies.

The good guys should share. This is the fix and part of advanced cyberdefence. With that, you are culturally in place. You try to cover your risks, but you need to be able to answer when something happens. These responses have to be quick and are not always tested, so that’s another problem.

PB: Does data analysis come into it at all?JSU: Yes, of course. At TSB, we have iris recognition, we have biometric controls for users and two-factor authentication.

These controls have been in place, in terms of technology, for a long time. These are the preventive controls we have. Also, with voice recognition, these types of things are not business as usual. <

feature | banco sabadell

banco sabadell: huge security risks present in the ukEvery market has its own level of financial risk; it comes as part of the deal. However, as the UK is a global banking hub – some argue the banking hub – the risks can be much greater. Patrick Brusnahan sits with Javier Sanchez-Ureta, data office director at Banco Sabadell, to discuss

EPI April 2018 370.indd 13 09/04/2018 16:23:43


feature | open banking

Is Open Banking the opportunity that many have stated it will be?

Gabriel Schild, executive director for business transformation at Verizon, thinks it will have a great impact. Speaking to EPI, he says: “Time will tell. I think PSD2 and directives in local legislation will have a profound effect on the way banks think about customer experience.”

One crucial aspect that will change is customer relationships. With Open Banking potentially giving third parties access to customer data, with the customer’s consent, eyes could be drawn elsewhere.

Schild expands: “Imagine if you’re a banking client. I can tell a local bank that I have a fantastic app that can do all of my banking needs, but I want to keep my bank account. That means piping in the data in an as-needed basis. That means my local bank may lose customer intimacy.

“The average digital banking client uses 45 hours of banking apps a year, and that could be the only meaningful way to build a relationship with the customer where the average customer only spends 19 minutes a year in a branch. Banks have to fully invest their future into the mobile banking app.”

Schild continues: “However, people may like your app, but they might like another app better. PSD2 will have a vast impact on customer intimacy that high street banks on

the continent have with their clients if they’re not careful. That’s why a lot of them are working with or buying these players rather than being relegated.”

It is a big change to the market. Some even say that this could be the beginning of the end for banks’ dominance of consumer

finance. Ian Bradbury, chief technology officer, financial services business at Fujitsu, says: “Half of UK financial sector leaders believe banks will not exist in their current form in

open banking: all it is cracked up to be?

Plenty has been written – in this publication and others – on the Open Banking revolution. Compliments have been paid as to how it will aid customers and improve experience, but little has been said on how incumbents will be affected. And are the big financial institutions even ready? Patrick Brusnahan reports

the average customer only spends 19 minutes a year in a branch. Banks have to fully invest into the mobile banking app

EPI April 2018 370.indd 14 09/04/2018 16:23:51


feature | open banking

a decade, which emphasises that we’re on the brink of major change.

“Open Banking will help build a very different financial services sector, meeting the needs of the digital consumer – but only if we are able to overcome the cybersecurity barrier.”

Not everybody feels that Open Banking will have the massive impact on banks that is expected. Jens Bader, one of the founders of payment app MuchBetter, believes Open Banking will take much longer than predicted to fulfil its potential.

“The financial world is very complicated,” he tells EPI. “The IT systems have grown over many years and we’re looking at a convoluted and complex layered IT structure. To provide a secure and open interface in that is quite a challenge in itself.”

He adds: “Open Banking is a nice idea, but it is a huge challenge to get it implemented and executed; there are many challenges. One is to build the interfaces and APIs. The standards are not yet clear. The security around it will be a big challenge – not just from a hardware perspective, but opening yourselves up leads to multiple sources of exposure.

“This will all take time. We’re looking at a very long timeframe for an Open Banking reality. I don’t think this is a short-term opportunity for companies to make money. It’s more of a short-term headache.”

BANKS’ RESPONSESBanks have historically been the port of call for customers to deal with their financial life. This sector is not ready to let go of that.

Schild says: “If I was a bank, I would prefer to be the preferred customer gateway. It’s not all doom and gloom for high street banks if they play their cards right, but you need to move fast and the infrastructure needs to be able to cope with that.”

HSBC has stated its aim to launch an Open Banking app by the first week of May 2018. Connected Money will centralise information on a customer’s accounts. Its features include spending analysis and purchase round-ups to

transfer small amounts of money to a savings account when customers make purchases.

Bader states: “Someone within HSBC must have come up with the idea to be proactive and take the lead before someone tells them what to do.

“What I’ve seen from the banking initiative from the UK in the past is a lot of failure. If you look at past initiatives from the banking world, where you could sense they wanted to break out of their traditional frameworks and use modern technology, a lot failed. That’s why you see a lot of challengers in the market such as Monzo and TransferWise.”

Why are banks so far behind? Legacy infrastructure issues are often cited, as well as regulation holding banks back more compared to newer players.

Schild claims: “Banks are catching up, but slowly. If you look at the latest results from some of the largest high street banks, they’re making ample money.”

He adds: “The imperative to change something from a cost point of view is not there because things are going okay. From an investment point of view, they have money as well and can spend money on innovation, in-house or otherwise.

“It’s more of a case of whether they realise what’s happening. Do they really understand that there is a change in customer demands – all sorts of startups and challenger banks who provide a different experience? Do they understand the compulsion to change?”

RISK Considering how vital security is to the financial sector, opening up the playing field and letting newer players enter is a huge risk.

Incumbent banks are under heavy regulation while fintechs and third parties are scrutinised to a lesser extent. In some cases, the tech firms can change so quickly as to stay ahead of the regulator. This means that risk is firmly in play.

“At the moment, I see more risk than opportunity,” Bader purports. “For the first time, the customer is in the driving seat. They

can now give individual companies access to their data, and we all know how careless people can be.”

He adds: “When I download an app, I don’t look at the terms and conditions, I just click on it and then six weeks later, I’ve deleted the app. In six months, I can’t even remember that I ever tried that service, but they still have access to my data.

“Customers will be a bit overwhelmed with keeping track and managing all the decisions they’ve taken with sensitive data.”

Bader continues: “In terms of opportunities, there are some if done sensitively, but not in the short term. We will probably hear some horror stories first.”

Sharing personal data is also against everything that consumers have been taught over the past decade. Whether it was by their bank or by marketing campaigns or government, consumers have been told to share as little as possible.

Ciaran Dynes, SVP of products at Talend, says: “For years, consumers have been told to be careful with their financial information, to be astute and aware of who has access to it, and to guard it at all costs. The message of Open Banking seems to go against this mentality, which can be confusing for consumers.

“While Open Banking is allowing third parties to access consumers’ bank account and transactional information, there are many checks and balances in place to protect consumers and prevent fraud.”

To combat this fear, Dynes says the solution is “education. Pure and simple. If consumers understand, they will use the services.”

The security aspect may, ultimately, be what gives banks the edge in the upcoming battle for market share. Schild notes: “You need to protect from a security point of view, and I think that’s where banks can play their cards right.

“If you use a different app for your banking needs and it gets hacked, I’m probably not going to go to a fintech; I’ll go to my bank. The fintech is just a conduit. Banks need to use the trusted function that they have as well as innovation.”

Schild concludes: “What I think is that the traditional high street banks grapple with innovation. It’s something they have had to become used to, but many of these companies were used to working in a closed environment. It was waiting for someone else to innovate and then you would do it as well.

“You cannot afford to wait anymore, these things need to be done instantly.” <

I don’t think this is a short-term opportunity for companies to make money. It’s more of a short-term headache

EPI April 2018 370.indd 15 09/04/2018 16:23:52


analysis | alternative payments

Understandably, with 520 million and 400 million users respectively, Alipay and Tenpay are the poster

children for the alternative payments solutions sector.

One of the most regularly repeated stats in banking these days is that between them, Tenpay and Alipay control 90% of the $5.5trn spent by Chinese consumers on mobile payment platforms.

While Tenpay and Alipay have been dominating the headlines, they are not alone in attracting large customer numbers. Paytm is the leading alternative payment solution in India. In 2014, the company launched the Paytm Wallet, which can now be used for both online and in-store payments. Funds can be loaded onto the wallet via online banking, debit cards and credit cards.

The wallet, which was initially used only on Paytm’s own online marketplace for e-commerce and bill payments, is now widely accepted at a number of other online merchant websites and apps.

Paytm dominates the Indian mobile wallet market and accounted for 9.9% of the total e-commerce transaction value in 2017, according to GlobalData’s 2017 Consumer Payments Insight Survey.

In addition to online payments, Paytm is now used for day-to-day offline transactions

and is accepted at all merchant types, from local grocery stores and street vendors to large retail brands.

PAYPALWhile the US remains PayPal’s largest market, accounting for a revenue share of 54.1% in 2017, PayPal’s reach is now up to 227 million active users in more than 200 countries.

The PayPal platform, which includes Braintree, Venmo and Xoom, allows consumers and merchants to receive funds in more than 100 currencies, and supports withdrawals in 56.

SKRILLEuropean-headquartered peer Skrill allows users to store payment details in the Skrill digital wallet, which they can use to pay for online purchases.

Skrill allows merchants to accept payments from more than 20 local payment methods. It is supported by all major card schemes, as well as by 80 banks globally.

Skrill also offers P2P payments, allowing users to send money locally and to 200 global markets in 40 different currencies. By February 2018, the number of Skrill wallet holders had topped 20 million.

KLARNAAlso in Europe, Klarna has tapped consumer demand for more flexible, transparent and secure ways of shopping, online and it is winning with a smooth and seamless online payment experience.

At the last count, Klarna boasted over 60 million consumers making 650,000 transactions per day. In total it is approaching 500 million transactions since setting up shop, and now has around 70,000 online merchants.

Klarna accounts for 10% of total e-commerce payments in Northern Europe, and its next set of user numbers will show a boost following its November 2017 partnership with Nordic-based PSP Nets, to provide customers with a pay-later solution at physical stores throughout the Nordic region.

The following month, Klarna partnered with Worldpay, meaning Worldpay customers can use Klarna to be paid by e-invoice or payment instalments for purchases made in Austria, Finland, Germany, the Netherlands, Norway, Sweden and the UK.

Instead of using a traditional credit or debit card, consumers have access to increased payment options at the checkout, including 14-day payment by invoice, or instalments that can be fixed, flexible or spread out over several months.

alternative payments: psd2 to accelerate uptake, And three players to watch

Tenpay and Alipay are fast approaching a combined 1 billion users, but what of the other notable alternative payment solutions, and which smaller players might be ones to watch? Douglas Blakey reports

EPI April 2018 370.indd 16 09/04/2018 16:23:53


analysis | alternative payments

M-PESAOriginally developed as a low-cost microfinance loan-repayment system, M-Pesa was extended as an open platform to remit funds and make consumer payments, as a result of its rising popularity.

This was largely a result of factors such as the high cost of remitting funds through banking, a lack of banking facilities, low card penetration, minimal card-acceptance infrastructure, and the high costs involved with dealing with cash in Kenya.

In Kenya, M-Pesa customers at the end of 2017 numbered around 28 million, representing more than 90% of the country’s adult population. Following its success in Kenya, the M-Pesa service has been extended to Tanzania, Democratic Republic of Congo, India, Mozambique, Egypt, Lesotho, Ghana and Romania.

THE PAYSApple’s mobile payment solution launched in October 2014, and user numbers had reached 127 million by the end of 2017, having doubled between October 2016 and September 2017.

Expansion in 2017 included rollouts in a number of markets, including Ireland, Taiwan, Italy. Denmark, Finland, Sweden and the

UAE, with Poland and Brazil scheduled for 2018.

Samsung Pay launched in August 2015 and is now available in 21 markets outside South Korea. In February 2017 it introduced the Samsung Pay Mini online payment solution in South Korea, where it ended 2017 with around 6.5 million Samsung Pay users.

Expansions in 2017 included the UK, in collaboration with Visa and Mastercard and with support from Santander, Nationwide and MBNA. It also launched in Taiwan, Vietnam and Belarus, followed in January 2018 by Mexico, with support from Banorte, Banregio, Citibanamex, HSBC and Santander.

Google Pay, the rebadged Android Pay, is running a concerted marketing drive to sign up users.

It is offering new users a $10 incentive to sign up, and a $10 referral fee for users who sign up friends or family in the US, Canada, Australia, UK, Russia and Poland until May, subject to a maximum reward of $100.

PINGITIn the UK, Pingit has been around for six years since its establishment by Barclays. Growth was initially slow, but user numbers now exceed three million.

Initially launched as a P2P payment service between individuals, it extended its service for

merchants, allowing them to accept payments for online and offline purchases.

The service was initially offered only to Barclays account holders, before being extended to all UK residents with a UK-registered mobile number and UK bank account.

IDEALIn the Netherlands, iDEAL has strengthened its market-leading position by growing 34% in 2017.

Last year Dutch online shoppers paid nearly €33bn ($40.4bn) in 378 million iDEAL transactions. More than half of all iDEAL payments are now made within mobile banking apps.

Over the past years iDEAL has grown faster than the e-commerce market in the Netherlands, resulting in it gaining a market share of 57%.

PSD2 AND BEYONDLooking ahead, what impact might PSD2 have on alternative payment methods?

Ralf Ohlhausen, business development director at PPRO group, tells EPI that many consumers are yet to understand the true impact and benefits they are likely to see. In the UK, preferred methods of payment remain credit and debit cards – be it via traditional chip-and-PIN or contactless, though mobile wallets and PayPal continue to grow in popularity.

“Many alternative payment methods aren’t regularly used in the UK because we, as consumers, rely so heavily on credit and debit card payments online. In Germany for example, SEPA credit transfers and direct debits are the norm, which are relatively unconventional methods in the UK.

“PSD2 has placed a ban on retailers passing surcharges for debit and credit card transactions on to the consumer, which is a good thing for consumers, but not for the retailer. As a result, this decision is likely to drive them away from card payment methods in the UK and see an influx in alternative, local payment methods.”

Ohlhausen continues: “My prediction is that real-time bank transfer payment methods, like Pay-by-bank-app and new Open Banking and PSD2-based payment initiation methods will grow significantly in the UK over the course of the next two years. Watch out for names like Pay Now, Trustly and InstantTransfer.” <

Launch periodBefore 2000 2001-2005 2006-2010 2011-2016

Bank

Mobilenetworkoperator

Merchant

Paymentservice

provider

Smartphonedeveloper

PayPal$354bn Alipay

$417bn Tenpay$163bn

Klarna: $12bn

iDEAL$25bn

Apple Pay$90bn

Pingit: $2bn

Starbucks Wallet: $4bn

Android Pay: $8bn

SamsungPay: $5bn

Paytm: $5bn

M-Pesa: $28bn

Type

global alternative payment solutions

Source: GlobalData

Bubble size = transaction value Alipay and Tenpay values reflect business-to-consumer e-commerce transactions only

EPI April 2018 370.indd 17 09/04/2018 16:23:53


feature | plutus

Although there has been a global craze surrounding cryptocurrencies, especially Bitcoin, it is the

technology behind it that can open the door to more accessible solutions.

Originally created for payments and settlement transactions, blockchain has the potential to change how consumers access data worldwide. Plutus, a mobile application for making contactless cryptocurrency payments, aims to change the way people view cryptocurrencies and bring them safely into their daily lives, accelerating mass adoption.

Plutus has two core products: Plutus Tap & Pay is a mobile app that allows iOS and Android users to make payments using Bitcoin and Ethereum at any contactless-enabled debit card terminal. The product is accepted by all merchants that Visa or Mastercard. In addition, Plutus offers rewards for every deposit made; they are paid to customers in Plutons, which can be used to make more purchases without fees.

The other product is PlutusDEX, is an exchange that provides liquidity for the Tap & Pay app. As well as the three cryptocurrencies, sterling and euros are also present, with the company looking to add US dollars soon.

With numerous cryptocurrency and blockchain companies in the market, Plutus CEO Danial Daychopan tells EPI what sets his business apart from the rest:

“The PlutusDEX integrates an Ethereum smart contract, which offers unparalleled transparency and decentralisation when bridging the money we know with the nascent, growing world of cryptocurrencies.

“As Plutus never stores any user deposits, this means there is no central point of failure.”

Describing the methodology further, Daychopan adds: “By the time a user transfers digital currencies to Plutus, escrowed funds are already in place by users on the PlutusDEX. These funds are then only released if the transfer has been explicitly verified on the Bitcoin or Ethereum blockchain with a solid number of confirmations.

“From a security perspective, this is a state-of-the-art method for avoiding intermediate counterparties and centralised storage of value which is only possible due to the immutable nature of blockchains with a strong enough hashrate, network distribution, and hashing algorithm. Plutus doesn’t verify the transactions; Bitcoin and Ethereum do.

“Notably, a normal centralised system is forced both store or manage user funds, as well as ensure payment confirmations and maintain solvency for cryptocurrency balances. In Plutus, these aspects are circumvented by design, because users transact with other users and the verification occurs on an external blockchain. In this way, card

balances are managed by the card issuer and all payments verification is handled by a cloud of Bitcoin and Ethereum miners. In this manner, the avoidance of a centralised point of failure alone already conveys a significant security advantage over competing platforms.”

PLUTONPluton is the in-app cryptocurrency, and acts as a loyalty rewards token.

Head of marketing Peter Panayi explains: “Pluton is a utility token, similar to air miles and rewards users for transactions made on the blockchain. We allow for streamlined transactions that are securely processed using next-gen technology, converting crypto into fiat currency seamlessly. We are essentially a technology service company with a focus on creating as little friction to the customer as possible to give them the confidence to use crypto in an everyday use case.

Panayi adds: “No one is doing this right – we are unique in our clear and transparent approach, giving customers the best service and care. Taking care of our community is fundamental. It’s been an exciting journey so far, and we believe that our solid approach to regulatory aspect of KYC and AML sets us apart from our peers. We take these matters seriously; especially being a pioneer in the space, one needs to keep their eye on regulatory matters.”

There are fundamental challenges with blockchain, and organisations need robust KYC processes to tackle money laundering and fraud; however, its future is bright.

For banks and financial institutions, payment settlements can be significantly improved by blockchain technology. With legacy systems pulling down banks’ functionality, blockchain could eliminate some processes and positively disrupt the way we pay and trade. Despite its volatility, Bitcoin has proved how blockchain can provide a more seamless way to store data and value.

In December 2017, Swiss bank UBS announced it would be leading a pilot to harness Ethereum smart contracts to improve data quality ahead of MiFID II. Barclays, Credit Suisse, KBC, SIX and Thomson Reuters all joined the venture, which sets out the benefits of blockchain in a broader context than just settlement and clearing.

Creating a platform that can allow people to bring cryptocurrencies into their day-to-day lives is what Plutus aims to do. The end goal is to enable consumers to pay with cryptocurrencies anytime and anywhere. <

bringing cryptocurrency and blockchain to the mainstreamPlutus aims to bring blockchain to the masses, creating a lifestyle around the cryptocurrency opportunity. Briony Richter speaks to CEO Danial Daychopan and marketing head Peter Panayi about what the business can deliver

EPI April 2018 370.indd 18 09/04/2018 16:23:55


country snapshot | france

country snapshot: franceFrench government driving contactless growth

FRANCE

France’s payments market is mature and highly competitive, registering the highest turnover per card for

2017 among peers including the UK, the US, Germany, Italy, Spain and Canada. The average annual spend per card is also highest in France.

Debit and charge are the most popular types of card, while credit card usage is low due to the debt-averse nature of French consumers. Many are still heavy users of cash, but those who do possess cards – particularly debit and deferred debit cards – use them frequently at the POS.

France has a highly developed POS infrastructure, with a large number of POS terminals overall, as well as a large proportion of contactless-compatible terminals, driven in part by the French government’s efforts.

A typical feature of France’s payment card market is the availability of multi-functional cards, whereby a single payment card has more than one function, providing access to several accounts. The most popular combination is debit and credit facilities.

Credit card usage is low in France due to consumer aversion to debt, stringent issuance guidelines, and the availability of private-label cards, which unlike bank-issued credit cards carry less stringent qualification requirements. Private-label issuers collaborate with supermarkets, car repair workshops, and digital content retailers to issue co-branded cards.

The French e-commerce market is highly developed, ranking fifth-largest globally in terms of spend behind China, the US, the UK and Japan. The e-commerce market posted a CAGR of 13% during 2013-2017 as consumers became increasingly comfortable shopping online. French online buyers use payment cards heavily, driven by comfort, convenience and security.

High online and smartphone penetration, rising consumer confidence in online transactions, and the presence of secure online gateways have driven e-commerce growth. With more than half of all internet users in France involved in online shopping, lower levels of indebtedness compared with other European countries, and a relatively young population, e-commerce will register strong growth to 2021.

In 2016, the French government passed legislation requiring businesses to install POS terminals capable of accepting contactless cards and NFC mobile wallets. Designed to improve adoption and usage of mobile payments and contactless cards, the move will also significantly impact terminal manufacturers, which are no longer permitted to sell contact-only devices.

Prepaid cards are available for various consumer segments and are accepted almost everywhere. Cards are usually linked to a bank account so transactions are easily traceable and funds can be loaded conveniently. La Banque Postale has been issuing prepaid cards since 2008, and offers personalised non-rechargeable cards. <

CARD TRANSACTION VALUES BY CHANNEL ($ BILLION)

ATM POS

2013 142.7 461.3

2014 140.2 466.5

2015 152.2 494.4

2016 154.4 517.8

2017e 157.6 551.2

2018f 160.6 591.7

2019f 163.3 634.1

2020f 165.8 678.1

2021f 168.1 722.1Source: European Central Bank, GlobalData

CARD TRANSACTION VOLUMES BY CHANNEL (MILLION)

ATM POS

2013 1,655.0 8,964.3

2014 1,607.2 9,437.9

2015 1,719.1 10,234.0

2016 1,682.4 10,997.0

2017e 1,675.0 11,939.2

2018f 1,673.5 13,050.1

2019f 1,679.2 14,228.6

2020f 1,689.0 15,428.4

2021f 1,703.8 16,614.7Source: European Central Bank, GlobalData

NUMBER OF ATMS AND POS TERMINALS (THOUSAND)

ATM POS2013 58.6 1,344.4

2014 58.5 1,604.5

2015 57.5 1,495.9

2016 57.4 1,487.3

2017e 57.6 1,490.0

2018f 58.0 1,502.1

2019f 58.6 1,523.9

2020f 59.1 1,543.7

2021f 59.4 1,560.7Source: European Central Bank, GlobalData

PAYMENT CARDS BY TYPE (MILLION)

Debit Pay later

2013 47.9 37.5

2016 50.3 34.3

2017e 50.8 34.9


EPI April 2018 370.indd 19 09/04/2018 16:24:09


country snapshot | germany

country snapshot: germanyInstant payment growth accelerates

GERMANY

Germany has a strong economy and high levels of financial inclusion, despite a strong consumer

inclination for cash for most transactions.A popular German maxim is geld

stinkt nicht (money does not stink), and consumers still see cash as the best option, due to ingrained habits and a preference for spending within one’s means.

In terms of number of cards in circulation, the German payment card market is third-largest among its peers, behind only the US and the UK, but is still far from recognised as a fully mature market. The average number of monthly consumer card transactions in Germany was 2.4 in 2017, much lower than France (12.4), Canada (9.0) and the UK (7.7).

Payment cards are used sparingly at the POS, and are primarily used to withdraw cash from ATMs. As a result, alternative payment methods are sharply limited in terms of both usage and consumer interest. The only major area of the German payments market in which alternative and emerging payment tools have gained any traction is e-commerce.

German consumers use debit cards for most transactions. National debit card scheme Girocard is the most frequently used payment card. Guarantees to retailers by all participating banks make Girocard popular among retailers.

Until a cap implemented by the EU in 2015, Girocard’s lower interchange fees compared to international schemes gave it an edge. The new interchange fee rules have, so far, had a minimal impact on its dominance in Germany.

Pay-later cards are not very popular in Germany, mainly due to a cultural aversion to debt. Credit cards represented only 2.1% and 1.4% in terms of card transaction volume and value respectively in 2017, and almost 70% of credit card holders

paid off their balances in full each month. The opportunity for credit card revenue in Germany is therefore limited, and there would need to be a seismic shift in the German attitudes to debt to change this.

Germany is the third-largest e-commerce market in Europe, behind only the UK (€175.6bn ($216.1bn)) and France (€81.1bn), although its population is much larger than both these countries. This indicates that Germans are not nearly as engaged with the online channel as French or UK consumers.

E-commerce’s growth in Germany has been facilitated by high internet and smartphone penetration, and the availability of fast broadband connections. Use of video and social media to enhance product presentation and services in e-commerce is further fuelling growth.

Compared to other European markets, payment cards are used infrequently, while online tools that hide the user’s payment details from the merchant – such as Sofort and PayPal – are more popular, driven by German consumers’ perception of these tools as both convenient and secure. <


ATM POS

2013 372.3 235.3

2014 360.5 247.5

2015 393.6 258.6

2016 409.1 273.6

2017e 423.7 291.3

2018f 437.4 308.3

2019f 450.1 323.4

2020f 462.0 337.8



ATM POS

2013 2,158.6 3,632.8

2014 2,067.2 3,433.9

2015 2,213.5 3,690.6

2016 2,233.5 4,074.0

2017e 2,260.3 4,414.6

2018f 2,285.8 4,738.2

2019f 2,309.1 5,032.7

2020f 2,330.1 5,307.7



ATM POS2013 82.8 743.6

2014 86.8 766.4

2015 86.7 784.2

2016 85.4 796.1

2017e 84.1 805.9

2018f 83.1 817.4

2019f 82.4 830.3

2020f 81.9 844.1



Debit Pay later

2013 105.2 28.7

2016 108.6 33.7

2017e 111.0 34.9


EPI April 2018 370.indd 20 09/04/2018 16:24:20


country snapshot | italy

Despite being Europe’s fourth-largest economy in terms of nominal GDP, Italians have remained slow

adopters of electronic payments, primarily due to a strong consumer inclination for cash, which accounts for 81% of the payment transaction volume.

The country has a comparatively low penetration of payment cards, despite its robust POS terminal network.

The government’s push for electronic payments through a cap on cash transactions and the implementation of interchange fee regulation resulted in a gradual rise in payment card transaction volume during 2013-2017. Debit cards are the most-used payment card at the POS, followed by charge cards.

High banking penetration and combined efforts by banks and government bodies to promote electronic payments have helped drive debit card adoption.

The gradual migration of low-value payments to debit cards, and the rising adoption of contactless technology in debit cards have led to their increased use at POS terminals.

In addition to local residents, the government is focusing on bringing the immigrant population into the formal banking system, which will further push debit card adoption in the country.

Pay-later cards are not very popular among Italians, who prefer cash or debit cards. Charge cards accounted for almost 80% of the total pay-later card transaction value in 2017.

Italy’s e-commerce market is one of the fastest growing in Western Europe. In terms of transaction value, e-commerce registered annual growth of 18% to reach €23.6bn ($24.8bn) in 2017.

The Italian e-commerce market is dominated by PayPal, primarily due to its security features, comfort, convenience,

and it being the cheapest available option. Debit and credit cards together

accounted for almost a quarter of online spending in 2017. Bank transfers ranked third, mainly because most Italian sites offer this as the only payment option.

Italy has one of Europe’s largest prepaid card markets, with 27.2 million open-loop cards in circulation in 2017 and recording a CAGR of 5.9% during 2013-2017.

A number of factors explain the popularity of prepaid cards in Italy. Consumers’ desire to control expenditure, their debt-averse nature, and conservative spending attitudes are all important factors. The anonymity of prepaid cards and their bank-less nature also play roles.

A range of prepaid cards are issued through Visa or Mastercard, including gift, travel, youth and remittance cards.

BancoPosta offers a prepaid Postepay kit, which consists of two Visa cards: one for sending and the other for receiving money. Both can be used to withdraw cash. The cards allow holders to pay bills, top-up other Postepay cards, and check balances and transaction histories. <

country snapshot: italy


ATM POS

2013 154.9 136.4

2014 188.3 149.7

2015 204.5 170.5

2016 204.1 187.1

2017e 205.5 203.1

2018f 207.7 219.7

2019f 210.9 236.5

2020f 215.3 252.9

2021f 220.8 268.8Source: Banca d’Italia, European Central Bank, GlobalData


ATM POS2013 801.7 1,813.2

2014 956.4 2,034.0

2015 1,013.5 2,324.3

2016 1,010.1 2,612.9

2017e 1,015.2 2,903.4

2018f 1,022.6 3,200.5

2019f 1,034.5 3,504.1

2020f 1,050.0 3,804.3



ATM POS

2013 50.0 1,584.2

2014 49.7 1,847.5

2015 50.5 1,991.1

2016 49.3 2,226.1

2017e 48.3 2,462.1

2018f 47.3 2,701.7

2019f 46.6 2,942.5

2020f 45.9 3,182.2

2021f 45.4 3,419.1Source: European Central Bank, GlobalData


Debit Pay later

2013 44.2 27.6

2016 53.7 24.0

2017e 57.2 22.8

2021f 70.7 23.7Source: Banca d’Italia, European Central Bank, GlobalData

Penetration is low, despite a robust POS network

ITALY

EPI April 2018 370.indd 21 09/04/2018 16:24:33


industry insight | six payment services

The commercial possibilities offered by the Internet of Things (IoT) is a prime example of the future

becoming the present.With the multiplying abundance of

connected objects, from cars to fridges to clothes, the opportunities for consumers to make cashless, automated payments, for merchants to sell and distribute goods and services through new channels, and for logistics providers to optimise their capacities are growing exponentially.

A recent study found that 80% of US consumers have a ‘strong interest’ in purchasing via IoT and connected devices, with 83% recognising the associated time savings and ease of use.

IoT is a complex environment to manage. For consumers, the main attraction is convenience: they want to be able to order and pay for things remotely, or set up automated payments so, for example, their fridge will reorder milk when supplies run low. Levels of personalisation and customisation will increase as consumers gain greater control of the timing and location of purchases – and a wider range of available items.

For retailers, it is highly advantageous to have these new digital channels create ‘natural’ demand with no additional effort. There are also supplementary benefits, such as inventory management, allowing them to offer discounts on surplus stock, or to automate deliveries and increase cash-flow security.

Retailers also gain a highly valuable new source of data on customer behaviour and buying patterns, enabling them to more accurately predict future demand.

Most people consistently buy the same brand of groceries, so it is relatively straightforward for a fridge, for example, to

automate the purchase and alleviate the time it takes for a consumer to track particular groceries. With the convenience that comes with smart fridges and automated ordering, consumers will be able to browse the ‘fridge’ for more exotic produce to which they would typically not have access.

TOUGHEST CHALLENGELogistics forms perhaps the toughest challenge to the IoT ecosystem. Options include delivery companies such as Uber, local delivery firms, or corporates such as Amazon.

Yet many merchants are keen to avoid operating via Amazon, as it is seen as a direct competitor with a clear market position. Instead, there is the prospect of new e-commerce ecosystems which combine merchants, an IoT provider and payment systems – such as those developed by SIX – delivering goods and services which take advantage of new digital capabilities and the wealth of data now becoming available.

SIX has many years’ experience managing transactional data and order flow. Developing an IoT payments system is a natural progression from our existing work, and one we believe holds tremendous value for merchants, consumers and logistics providers.

We have started to implement an IoT commerce platform in our home city of Zurich, trialling a simple ‘fridge replacement’ mobile app to understand how the technology will work, together with local merchants and future IoT providers. Based on this initial test case, we believe that within a few years, there will be countless opportunities in multiple sectors. Small businesses, for example, frequently need to replenish stocks of stationery, something that IoT payments

could achieve, bringing significant cost and efficiency gains.

Machine learning and Artificial Intelligence (AI) can help to solve many of the issues thrown up by the practicalities of IoT channels. At SIX, we anticipate employing Blockchain technology to create a distributed ledger of transactions. The immutability and transparency of distributed ledgers will allow stakeholders to always see where they stand in the order workflow, and this should help prevent friction in the process.

Manufacturers will benefit from automated, remote payment options using IoT and Blockchain technology, which will remove layers of administration, complexity and cost. They will also gain opportunities to better understand customers – today, when a kitchen supplier sells its products, there is rarely any further connection between buyer and seller. With IoT payments, a new and consistent communication channel opens up, enabling greater opportunities to gather user data and improve processes. The consumer then begins to play a larger part in how manufacturers evolve and develop products.

Industry reports predict that by 2021 there will be 28 billion connected devices worldwide, all potentially capable of making and receiving payments. These are likely to include wearable technology, automotive vehicles and domestic items – in addition, of course, to mobile devices, watches and other items, or even parts of the human body.

In many cases, the infrastructure to complete IoT payments already exists. Fridge manufacturers such as Samsung and Trustonic have released connected equipment that can place direct orders for groceries. Uber and Lyft have integrated embedded e-commerce solutions that can be accessed via mobile apps.

The next stage is to link distinct systems into a seamless whole, with a company such as SIX providing the ecosystem through which transactions take place. Facilitating micropayments between enabled devices, and using data analytics and machine learning, may lead to much-improved deployment of resources, through matching supply and demand, while anticipating future needs.

Concepts arising from IoT are opening new channels and opportunities, and reshaping consumerism. Cloud computing, social media, robotics and AI will continue to transform payments in ways we cannot yet imagine, just as the smartphone did 10 years ago. We are seeing merely the tip of the iceberg in terms of what IoT can bring, and the landscape is developing at a remarkable rate. <

preparing for an iot-connected payment futureWith the accelerating pace of technological change, concepts that until recently seemed merely theoretical are now on the brink of realisation, writes SIX Payment Services’ Urs Gubser

Motor Finance europe 2018

For more details please contact Vicki Greenwood on [email protected] or call +44 (0) 20 3096 2580

26th april 2018 l adlon Kempinski Hotel, Berlin, Germany

The 4th annual Motor Finance: Europe Conference and Awards leverages insight and expertise from across the industry to deliver a programme that offers you the

latest innovations, strategies and technologies driving the industry forward. We will bring together the industry’s thought leaders, experts and challengers to discuss the key

factors leading market growth and how to adapt to the ever changing marketplace.

The highlights include:

l the impact of digitalisation on the automotive industry

l complying with regulatory requirements

l understanding your customer and adapting in real time

l preparing to meet the requirements of the GDpr

l Disruptive innovations in car financing

l captives of the future: old world vs new world

l a car retailer’s perspective on the challenges the dealer world faces

l embracing the digital world and innovative distribution models

Headline Sponsor: Gold Sponsors: Silver Sponsors:

Table Hosts:Exhibitor:

Brand Sponsors:

Supported by:Panel Hosts:

EPI April 2018 370.indd 22 09/04/2018 16:24:39

Motor Finance europe 2018

For more details please contact Vicki Greenwood on [email protected] or call +44 (0) 20 3096 2580

26th april 2018 l adlon Kempinski Hotel, Berlin, Germany

The 4th annual Motor Finance: Europe Conference and Awards leverages insight and expertise from across the industry to deliver a programme that offers you the

latest innovations, strategies and technologies driving the industry forward. We will bring together the industry’s thought leaders, experts and challengers to discuss the key

factors leading market growth and how to adapt to the ever changing marketplace.

The highlights include:

l the impact of digitalisation on the automotive industry

l complying with regulatory requirements

l understanding your customer and adapting in real time

l preparing to meet the requirements of the GDpr

l Disruptive innovations in car financing

l captives of the future: old world vs new world

l a car retailer’s perspective on the challenges the dealer world faces

l embracing the digital world and innovative distribution models

Headline Sponsor: Gold Sponsors: Silver Sponsors:

Table Hosts:Exhibitor:

Brand Sponsors:

Supported by:Panel Hosts:

EPI April 2018 370.indd 23 09/04/2018 16:24:40

Page 7

Key issues:

∤ Open Banking and the main results of the

first stage implementation

∤ How Millennials are shaping the future of payments

∤ Artificial intelligence and machine learning

∤ Innovation in branch transformation

∤ Digital security and cyber crime

∤ RegTech - Leveraging technology innovation to comply with regulation

∤ Optimising customer experience in today’s competitive environment

∤ Technophiles v Technophobes - meeting the needs of different customers

SHAPE THE FUTUREOF RETAIL BANKING


Retail Banking: London 201810th May 2018 ∤ London

Retail Banking: London 2018 brings together high-street banks, new market entrants, financial professionals and industry disruptors in an active discussion of the key issues facing the industry: new regulation, digitalisation and

tech innovations that are shaping the future of retail banking.



Headline Sponsor Silver Sponsors Event supported byPanel SponsorBrand Sponsors

Untitled-2 1 10/04/2018 11:51

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A TALL ORDER...COUNTRY SURVEYS INSIGHT. FEATURE. The inside track on the . European giants of France, Germany and Italy. Concepts that until recently seemed theoretical are on