FCA finalises revised Payment Services Directive (PSD2) requirements — Financial Conduct Authority — “As well as promoting innovation, PSD2 aims to improve consumer protection, make payments safer and more secure, and drive down the costs of payment services….The FCA has published the PSD2 Policy Statement which explains the changes we are making to our proposals following consultation… The FCA has published its Approach Document alongside this – this is designed to help firms navigate the payment services and e-money regulatory requirements, including those set out in HM Treasury regulations.”
Regulation
US Senator asks Apple CEO to clarify Face ID privacy concerns
Sen Franken presses Apple to address privacy concerns over iPhone X’s ‘Face ID’ technology — Senator Al Franken — “Substantial questions remain about how Face ID will impact iPhone users’ privacy and security, and whether the technology will perform equally well on different groups of people. To offer clarity to the millions of Americans who use your products, I ask that you provide more information on how the company has processed these issues internally, as well as any additional steps that it intends to take to protect its users.”
Visa comments on withdrawal of Bitcoin card services
Steps being taken to address non-compliance with existing rules, rather than the introduction of new regulations, are the reason a number of Bitcoin card issuers are having to withdraw availability of their services from non-European customers, Visa has told NFC World... More
M-Pesa founder shares lessons learned from ten years of mobile money
M-Pesa pioneer Michael Joseph, founding CEO of Safaricom and now director of mobile money at Vodafone Group, explains how the service works and the lessons learned from building and deploying one of the world’s most successful mobile money services in an in-depth Q&A that is now available to download free of charge from the NFC World Knowledge Centre... More
New Texas law allows merchants to decline card purchases without ID
New Texas law allows merchants to decline card purchases without ID — The Texas Tribune — “A law that takes effect in January will allow Texas merchants to ask for photo identification for credit and debit card purchases — and turn down transactions if a buyer won’t show it… Payments made using a mobile wallet are exempt from the photo ID measure.”
Mobile payments in China: How the tech giants are changing the future of payments
An in-depth article that provides an expert analysis of how the traditionally cash-focused landscape in China has been “completely transformed” by the introduction of digital and mobile payment services like Alipay and WeChat Pay is now available to download free of charge from the NFC World Knowledge Centre... More
New bill seeks basic IoT security standards
New bill seeks basic IoT security standards — Krebs on Security — “The bill would require vendors of internet-connected devices purchased by the federal government make sure the devices can be patched when security updates are available; that the devices do not use hard-coded (unchangeable) passwords; and that vendors ensure the devices are free from known vulnerabilities when sold.”
European consortium to develop pan-industry online identity platform
A group of German and other European companies including banks, vehicle manufacturers and technology providers have signed a “corresponding declaration of intent” to establish a joint, pan-industry platform that will let their customers use a “so-called master key” for registration and identification when accessing online services across a range of sectors including government, aviation and retail. More
Samsung Pay previews in Taiwan
Samsung Pay has launched in pilot in Taiwan ahead of an official roll-out expected on 23 May... More
UK regulator calls for banks to tighten cancellation processes for stolen contactless cards
The UK’s Financial Conduct Authority has set out measures it plans to tighten the processes banks undergo when a customer reports a stolen contactless card, which currently allow — in a “limited set of circumstances” — for a stolen card to be misused by fraudsters “several months after it has been cancelled”. More
Nordea Bank: PSD2 will require banks to adopt a ‘totally new way of viewing their customer base’
Significant confusion and a high level of fragmentation can be expected over the next five years as European financial institutions become accustomed to new regulations under the Payment Services Directive (PSD2) which will open the door to new competition within the European payment services market, says Nordea Bank’s vice president of strategic business development, transaction banking and business innovation. More
Canadian banks to test blockchain digital identity network for consumers
A blockchain-based digital identity network that will let Canadians verify their identity to organisations of their choice and access services such as new bank accounts, driving licenses or utilities using a mobile app is now undergoing testing ahead of a planned launch later this year. The service is backed by a group of Canadian banks that includes BMO, CIBC, Desjardins, RBC, Scotiabank and TD. More
Nordea launches PSD2-inspired Open Banking portal
Nordic bank Nordea has launched the first version of its Open Banking/Open API portal, offering third-party developers the chance to collaborate with the bank as part of the requirements laid out by the European Payment Services Directive (PSD2)... More
Indians to get mobile wallet insurance
Indian mobile wallet providers may soon be required to insure their customers’ money... More
Chinese third-party payment providers face client cash regulation
The People’s Bank of China (PBOC) is to ban third-party payment providers, such as Alibaba-owned Alipay, from using their clients’ money, China Daily reports... More
R3 develops KYC registry using blockchain
Blockchain consortium R3 and 10 of its member banks have developed a proof-of-concept Know Your Customer (KYC) registry using distributed ledger technology to address the “challenges associated with satisfying regulatory requirements” and allowing identities to be managed by their owners... More
PBOC working to regulate QR code mobile payments in China
People’s Bank of China (PBOC) is working to create a system for regulating QR code mobile payments in the country, after it suspended QR code-based services run by third-party payment providers in March 2014... More
European Commission approves Visa’s acquisition of Visa Europe
The European Commission has approved the proposed acquisition of Visa Europe by Visa... More
Turkey embraces cashless society despite Swedish concerns
A call by Sweden’s central bank to make using cash a legal right for consumers will create question marks in the minds of central banks and other players in international markets and will raise “some concerns” about a completely cashless society, the CEO of Turkish card payment system operator BKM has told attendees during a panel session at Money20/20 Europe. More
EMVCo updates tokenization specification with new payment account reference data element
EMVCo has updated its tokenization specification to include a new payment account reference (PAR) that can be used to link a cardholder’s payment token with their primary account number (PAN) without needing to use their underlying account number... More