The ramifications of COVID-19 continue to affect the payments industry. This week, we take a look at the growing shift towards digital and contactless payments, payment networks doing their bit by increasing the issuance of contactless cards, and a slightly more disconcerting trend - cybercriminals profiting from COVID-19. Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
“We’re all in it together” is the overriding sentiment this week as the payments industry sees companies coming together and collaborating where possible in the global response to COVID-19. Global financial services provider, Wirecard, has announced its ‘Innovation Now’ initiative to assist merchants at this time, as British bank Lloyds Banking Group opens a dedicated service line for vulnerable customers and NHS staff. Reports from this week also highlight that COVID-19 has prompted a rise in the use of fintech apps by as much as 72%. Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
As the world adapts in response to the global COVID-19 pandemic, like many other industries, the payments industry has also been affected. Digital payments have seen a meteoric rise, while cash usage in the UK has halved just days after the shops closed. However, aside from all the virus news, there has been an announcement from UK-based fintech Revolut, which is to launch its neobank in the US. Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
As news of the COVID-19 pandemic continues to radiate the airwaves, with constant updates the world over, it may seem hard not to feel discouraged. As freedom seems reduced for many and some of the things we take for granted are on hold, our Weekly Roundup brings you a taste of some of the positives we are seeing. Here’s something to make you smile, a tale of human kindness to reflect how basic consideration and compassion in times of crisis are essential to help us through it, together.
Buy Now, Pay Later (BNPL) features high on the agenda this week as Wirecard and Klarna combine expertise to create a new joint payment solution, plus, taking a trip down under, we look into the huge rise in popularity of BNPL, which has also started to gather traction in Australia. Australia is also in the sights of Revolut this week as it has announced plans to acquire an Australian banking licence in a bid to increase sustainability. Here’s your weekly dose of this week’s biggest payments news to keep you up to date with all that’s shaping our world this week.
The theme for this year’s International Women’s Day was #EachforEqual. An equal world is an enabled world. But, what does it mean to forge an enabled world – especially in the workplace? At Compass Plus, enabling women in the workplace means opening opportunities, encouraging diversity, and championing change. Enabling women means not just celebrating them, but highlighting their achievements and innovations. Enabling women means freedom of choice. These aren’t just empty platitudes we use to sound like we care – they are mission statements. For this year’s International Women’s Day, we’ve shed a light on the impact women make every day at Compass Plus, what women mean to us as a company, and our initiative to promote greater inclusivity and development of women on a global scale.
The question of cash and its long term relevance has been discussed among payments experts since the inception of the plastic card and its subsequent digital cousins. Now, however, this has become a hot topic of debate, in the face of recent news. This week our focus is on news that the World Health Organisation is prompting consumers to stay away from cash to prevent the spread of Coronavirus, while a blog by Chris Skinner assesses the role of cash in the future payments landscape. Here is your weekly dose of some of the biggest payments news from the past seven days so you can keep an eye on all that’s shaping our world this week.
From a new instant payment scheme being planned for Brazil, to news that the global mobile wallet market is set to reach a value of $1 trillion this year - this week’s news points towards promising years ahead for mobile payments. Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
Will the UK's cash system collapse in the next ten years? How will the emerging trend of bank branch closures in the US affect US consumers’ access to cash? And what does QR code adoption in China spell for the country and its approach to its payments future? All covered once again in our Weekly Roundup - bringing you a bite-sized digest of all the biggest announcements from the past seven days to keep you connected with all that’s shaping our world this week.
Seismic shifts have graced the payments industry this week – from N26 leaving the UK following Brexit, to Mastercard entering the Chinese market and contactless payments predicted to hit $6 trillion by 2024. Our Weekly Round-up brings you a bite-sized digest of all the biggest announcements from the past seven days to keep you connected with all that’s shaping our world this week.
February has arrived and there’s no stopping the big stories breaking this week – from digital payments taking the lead to security under the spotlight in open banking. Our Weekly Round-up brings you a bite-sized digest of all the biggest announcements from the past seven days to keep you connected with all that’s shaping our world this week.
In 1993, world renowned Fintech disruptors, the Wu-Tang Clan, famously proclaimed “Cash rules everything around me”, so how is it that 27 years later, no one seems to need it anymore? Well, cash in its physical sense that is. In 2020, the payments landscape is a far cry from what it once was: mobile, contactless and wearable payments have revolutionised the way we pay.
Last week, a ruling by the New York City Council voted to ban stores and restaurants from refusing cash payments. The ruling comes from the decision that refusing to accept cash as legal tender is a discriminatory act against the unbanked, underbanked and poorer members of society who might not have access to debit or credit lines.
2019 has been yet another successful year for Compass Plus! We turned 30 years old, were shortlisted for the most prestigious office interior design award in Russia - The Best Office Awards 2019, and hosted two different user groups for our many customers and partners. To round-off the year, we’ve done a round-up of our highlights from the year below, so take a look at our stand-out moments from 2019.
With fraudsters looking for fresh ways to exploit consumers as the adoption of digital payments continues to increase globally, losses come as Denmark - already one of the most advanced countries in the world as far as being cashless goes - continues to move towards becoming a fully cashless society.
Back in February we spoke about how Germany still remains a predominantly cash-based society, although there had been a slight shift towards electronic and contactless payments driven by forward-thinking youngsters and e-commerce. However, this week, a study released by EHI Retail Institute suggests that, for the for the first time in the country’s history, card spending was more popular than traditional cash payments.
Only 20% of stores in the US have contactless-enabled terminals, and those that do haven’t necessarily activated the feature. At the end of 2018, just 0.18% of transactions in the US were made using contactless cards. However, with New York City subways and buses planning to introduce contactless payments at the turnstile this year, could this be what the US has been waiting for and drive both adoption and acceptance?
According to Ethoca, the value of transactions falsely rejected by US card issuers in 2014 was $118 billion, of this value only $9 billion constituted actual fraud. This is a ratio of 13:1. So why do companies continue along the path of declining and losing legitimate transactions due to suspicions of fraud?
In 2006, 62% of all payments in the UK were made using cash; by the end of 2016 this had fallen to 40% and by the middle of 2018, debit card had overtaken cash as the country’s favourite way to pay, with 3.5 million people stating they never use cash. Whilst we may never be a completely cashless society, it is safe to say that the decline of cash continues to be steady, with UK Finance predicting that by 2026 cash will be used for just 21% of transactions.
The buzz around the cashless society concept has been growing for years. Almost every day there is a news story about bank branches closing at a fast pace, ATMs disappearing from the streets, shops and restaurants around the world going cashless. A recent example is the Mercedes-Benz Stadium in Atlanta that will only be accepting card and mobile payments from 10 March, leaving cash-loving customers with just 10 machines that enable them to exchange cash for a prepaid card.
Recent news released by Action Fraud revealed that, from April 2017 to January 2018, the number of contactless card fraud cases reported in the UK had nearly doubled compared to the same period the previous year. The number of cases increased from 1,440 to 2,739, with losses growing from £711,000 to £1.8 million. This news, which comes on the back of Worldpay announcing that contactless card payments in the UK had overtaken chip-and-PIN transactions for the first time (accounting for 52% of all in-store transactions), is obviously worrying for consumers.
It won’t come as a surprise to learn that the US is the country most targeted by fraudsters looking to steal card data, with the UK not far behind in second place. We all know fraudsters steal and sell card data and we are no longer so naive as not to realise that these attacks are rarely carried out by individual hackers. Fraud is an enterprise, a well-oiled machine run as a business. But what do these seasoned criminals do with the money they steal?
In a time where the use of contactless payments rising globally, Germany still remains a predominantly cash-based society. A recent survey by Bundesbank, Gemany’s central bank, revealed that most Germans prefer using cash for small to medium sized transactions. What is more, many convenience stores and restaurants nationwide will only accept cash. It is payment security and transaction costs that are the top priorities for consumers and retailers respectively, while the convenience of a quick tap of a card or a mobile phone is not essential.
For traditional banks, the growth of mobile technology – and the rise of digital-only banks – is often cited as a reason for the significant rate at which their branches are closing. Since 2007, nearly 50,000 branches across Europe closed their doors for good, with banks stating that this is due to the falling number of customers using their brick-and-mortar establishments. As a result, traditional banks seem to be diverting their attention increasingly towards their digital offering, but does this shift in focus spell the end for the physical bank?
Multiple countries are locked in the battle to become the world’s first truly cashless nation; for others, becoming cashless is necessary due to unique local circumstances. Either way, it is well known that cash is being phased out across large portions of the globe. Here are ten interesting cashless facts from around the world...
A recent article from Finextra highlighted results from GlobalData research that alternative payments are really making inroads in the Asia Pacific market, with online shopping predicted to hit $1.6 trillion this year. Perhaps the most interesting statistics from the report demonstrate the huge market share of alternative payments in the region in terms of method channels. In the first quarter of 2018, alternative payment methods accounted for 51 per cent of the total ecommerce transaction value in APAC, up from 49 per cent in the last quarter of 2017. Meanwhile, payment cards accounted for 28 per cent of transaction value, bank transfers 15 per cent, and cash and cheques six per cent.
Traditionally used for higher value purchases, consumers are increasingly using cards for lower-value transactions. This shift in consumer attitude and behaviour, coupled with the relatively recent introduction of contactless-enabled payment cards has undoubtedly cemented their appeal as a convenient, easy-to-use payment instrument. However, in the mobile world that we live in, could cards be an endangered species?
For more than 30 years, Visa has been the exclusive payments sponsor of the Olympic Games and has used the platform to trial and push the use of new, innovative technologies – such as contactless cards at London 2012 or wearables at Rio 2016. With the recent announcement that the international payment network has pledged its commitment to continuing to showcase payments innovation at the biggest sporting event on the planet until 2032, what is it about the Games that makes it the perfect environment for new trialling payment methods?
With 69% of its population with no access to financial services, and 96% of transactions still conducted in cash in the country, the Philippines is one of the lesser developed nations in terms of digital payments in Asia Pacific. However, these figures are improving thanks to mobile wallets and, in particular, prepaid cards.
Between 1 July 2017 and 30 June 2018, nearly one million UK consumers (965,317) switched current account, up 6% on the previous 12 months. While this small increase is encouraging, the present switching rates are no better than they were in 2012, before the current account switching service launched. Despite it being easier than ever for consumers to switch current accounts, awareness of the scheme reaching around 84% in the past five years, and banks offering ‘golden hellos’, the conversion rate is much lower than expected.
How young financial institutions in Eastern Europe can grow their market share and compete with larger players
The payments landscape in Eastern Europe is very diverse, with individual countries across the region still finding their economic identity as they develop their internal infrastructure at different rates following the fragmentation of the Soviet Union nearly three decades ago.So how do they compete with the larger multinational players in the region?
A London Business School professor recently made the rather dramatic claim that parting with cash is “psychologically painful”, but that paying for items with a contactless card “anaesthetises the psychological pain that accompanies payment, seducing us into splashing out”. In fact, according to the UK Card Association, £3.9bn was spent in the UK in April 2017 using a contactless credit or debit card – an increase of 147.6% on the same month the previous year.