Mastercard has teamed up with P27 Nordic Payments Platform to deliver fast, cross-border, multi-currency account to account payments across the Nordic region, reports Jane Connolly . The partners claim this is a world first in terms of a real-time and batch multi-currency platform, which will offer immediate payments with lower costs, higher security and increased competitiveness. P27 Nordic Payments Platform is owned by Danske Bank, Handelsbanken, Nordea, OP Financial Group, SEB and Swedbank. After establishing the underlying infrastructure, the partnership will look to develop further common products and services based on the platform. Javier Perez, president Europe at Mastercard, says the partnership is “evidence of Mastercard’s vision to drive real choice by being the trusted provider of new payment experiences and broadening our reach into fast bank account payment flows. The Nordic markets are global leaders in the development and usage of electronic payments and this new infrastructure will maintain their advantage over the rest of the world.” Lars Sjögren, CEO of P27 Nordic Payments Platform, believes that the single interface will make it easier for banks to handle all payments, both domestically and internationally. He adds: “This is change for real. By joining forces across the Nordics, we will be able to develop instant payment solutions in a way that each country never would accomplish by themselves.” Banks will benefit from real-time views of multiple active schemes, participant information, balances across schemes and a data-rich message set. The new platform is subject to regulatory approvals and final investment commitments. Source: Fintech Futures

Digital banking is now firmly entrenched as a part of everyday life in Europe, a Mastercard survey shows, with security and convenience the most important factors for people looking to manage their money online or through their phones. Of more than 11,000 people quizzed across 11 European markets, 84% use digital banking at least once a month and 38% at least once a week. Nearly two thirds use banking apps from traditional providers but one in five now use digital-only banks. As banking becomes increasingly connected, people demand security more than ever before, with 67% naming it their most important criteria for using digital banking solutions. Meanwhile 66% say that the biggest advantage of going digital is that it saves time, and 65% cite ease of use. A similar percentage think the demand for mobile will increase because it makes transactions simple and convenient. More than half of those surveyed say they would consider switching to a digital bank. However, with traditional banks offering more digital services, an increasing number of respondents say that they will stay with their provider (39% compared to 32% in 2017). PSD2 and Open Banking continues to fail to cut though, with 85% of respondents having little knowledge about it. But, there is support for an app that lets users see all their accounts with different banks in one place. As tech firms continue to encroach on bank turf, the survey shows that incumbents still have a big trust advantage. Some 70% of Europeans see banks as their go-to source when it comes to information about managing money. Jason Lane, EVP, market development, Europe, Mastercard, says: "We see that Europeans are very much interested in connected and personalized financial services which make their banking easier and more transparent. The Open Banking initiative will help drive these innovations. "As trust is a key success factor, banks are in the pole position for providing such solutions to their customers as people trust them more than any other peer groups or institutions when it comes to managing their money." Source: Finextra

Payment firms raise fears over EU security rules A lack of preparedness for the EU's new regulations on authentication could cost Europe's online economy more than €50bn according to a number of payment processors and e-commerce merchants. A study produced by payment firm Stripe and research firm 451 Research found that only half of the 500 businesses it surveyed expect to be compliant with the EU's Strong Customer Authentication (SCA) rules which are due to come into force in September. Furthermore, the research suggests that the lack of readiness is disproportionately higher among smaller businesses with 60% of companies with less than 100 employees admitting that they are either unaware of the SCA regulation, unlikely to be compliant before September or unsure of when they will be compliant. In contrast just 4% of firms with more than 5,000 employees are unware of SCA.  Part of the PSD2 regulation, SCA was brought into bolster security and reduce fraud in online transactions. However, it also requires technology and system changes and cooperation from consumers, many of whom may be unware of the additional steps thyat will be added to the payment process.  Andeven for those firms aware of SCA, Stripe contends that there is an underestimation of the complexity of SCA compliance tools required and a misunderstanding of how possible exemptions might work. Exemptions can be applied to recurring payments or small purchases under €30 but, states Stripe, administering the exemptions process could be a costly and complex undertaking for those firms choosing to do it in-house.   Most worringly for e-commerce vendors and merchants, a failure to properly implement SCA could exacerbate the already low consumer tolerance for so-called 'bad checkouts' and lead to a sharp rise in cart abandonment.  "SCA is unequivocally the single most disruptive event to impact European digital commerce, and many businesse, especially smaller ones, have yet to fully grasp its extensive impact," said Jordan McKee, analyst at 451 Research. "Our study indicates low levels of preparedness and, most troublingly, a lack of appreciation for how SCA will transform how European consumers will buy online.”   “SCA will make or break internet businesses. The urgency to get ready for it cannot be overstated,” added Guillaume Princen, head of Continental Europe at Stripe.  Source: Finextra, 4/6/2019