Latest Payments News: UK’s Payment Systems Regulator Consults On New ATM Rules, and more

Catch up on six of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

UK’s Payment Systems Regulator Consults On New ATM Rules

The Payment Systems Regulator (PSR) has launched a call for views on its Second Review of Specific Direction 12 (SD12), an ATM planning initiative.

SD12 aims to support LINK Scheme Holdings Ltd (LINK), the operator of the LINK ATM network, to provide a broad geographic spread of the UK’s free-to-use cash machine network and respond to its user needs.  

SD12 will be in force until January 2, 2025, unless the PSR varies or revokes it.

Through the consultation, the PSR wants to research whether SD12 has been effective in achieving its purpose.

This includes whether SD12 has worked in relation to maintaining and replacing protected ATMs and whether LINK has addressed the areas for enhancement identified in the first annual review of SD12.

Responses can be submitted by email or in writing to the PSR, and the regulator intends to publish a report on its findings later in the year.

Hong Kong Central Bank Warns Against CBDC Imposters

The Hong Kong Monetary Authority (HKMA) has issued a warning to the public after receiving reports of entities falsely claiming to be part of the island’s newly launched central bank digital currency (CBDC) pilot.

The entities in question have each claimed that they have been selected to take part in the e-HKD Pilot Programme and have been promoting e-HKD products to attract investments.

The central bank has warned the public that e-HKD pilot participants have no reason to solicit funds from the public. The HKMA also noted that it published an official list of participants earlier this month.

The HKMA has reported the fraudulent cases to the Hong Kong Police Force and has asked members of the public to do the same, should they be approached by other e-HKD fraudsters in future.

Mastercard, Worldpay Launch Global Partnership To Tackle Payments Fraud

Mastercard has announced that Worldpay will launch a new alert system globally to help merchants resolve disputed transactions and avoid chargebacks.

Under the partnership, Worldpay will rollout Mastercard’s Ethoca Alerts to its 1m merchants, who collectively process more than $2trn in annual transaction volume.

Ethoca Alerts works across all payment brands, delivers insights that merchants can use to stop the fulfilment of goods and services, and requires no additional hardware.

In 2022-23, Ethoca Alerts enabled the prevention of $1.6bn in fraud due to chargebacks, Mastercard said.

Mastercard also said the partnership is timely given that chargebacks are growing. By 2026, the volume of chargebacks globally is expected to reach 337m, which would be a 42 percent increase from 2023 levels.

“With e-commerce thriving, we’re working to make transactions as safe and as seamless as possible for all parties,” said Johan Gerber, EVP of cyber and intelligence at Mastercard.

BT Partners With Adyen To Launch Tap To Pay On iPhone

Etc., the incubation arm of British telco BT Group, has launched a new app that allows merchants to accept contactless payments via iPhone, with no additional hardware needed.

The BT Tap to Pay app uses the EE network to connect with Adyen’s merchant acquiring technology and is now available to download via the App Store.

Marketed towards small businesses, mobile workers and sole traders, merchants who want to use BT Tap to Pay must set up a BT or EE account to complete a KYC check.

Once set up, the app includes built-in security and privacy features, the ability to view payments history at a glance and a simplified refund process.

“This innovation has simplified in-person payments and removed the dependence small businesses have faced with payment hardware,” Nicole Olbe, UK managing director at Adyen.

Big Tech Under Pressure As EU Opens First DMA Investigations

The European Commission has opened its first non-compliance investigations under the Digital Markets Act (DMA), alleging anti-competitive behaviour across several big tech platforms.

Alphabet's rules on steering in Google Play and self-preferencing on Google Search will come under scrutiny, as will Apple's rules on steering in the App Store, its choice screen for Safari, and Meta's “pay or consent model”.

In addition, the commission has launched investigatory steps relating to Apple's new fee structure for alternative app stores and Amazon's ranking practices on its marketplace.

The regulator has also ordered the so-called “gatekeeper” firms to retain certain documents to monitor the effective implementation and compliance with their obligations.

"The Digital Markets Act became applicable on 7 March. We have been in discussions with gatekeepers for months to help them adapt, and we can already see changes happening on the market," said Thierry Breton, the commission's internal market chief.

Trustly To Power Cardless International Transfers For MoneyGram Users

Trustly, a Swedish open banking platform, has announced that it has partnered with MoneyGram International to deliver cardless cross-border transfers to users across Europe.

When sending international transfers through MoneyGram Online, customers now have the option to pay directly by bank account.

The service is powered by Trustly’s open banking platform and allows MoneyGram Online users to avoid entering card details on the app or website. It also allows MoneyGram to save on card fees.

The partnership is already live in multiple European countries and was extended to the UK and Germany within the last month.

Trustly said its proprietary data engine, Azura, offers modern pay-by-bank infrastructure, near-instant payments and “best-in-class” know your customer (KYC).

In addition to MoneyGram, Trustly’s other major partners include Dell, T-Mobile and Lyft.

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