"To address the impact of authorised push payment (APP) fraud, the UK is introducing a new reimbursement requirement on payment service providers (PSPs)....It is proposed that PSPs will only be required to reimburse customers who are victims of APP fraud up to the maximum level of reimbursement (potentially subject to a claim excess), and if the customer met a standard of care when executing APPs."
"Some 17 billion contactless payments were made in the UK last year, a 30% increase on the previous year, with 87% of people using the technology at least once a month, according to the latest figures from banking industry body UK Finance. The average value of contactless payments also increased..."
"Britain reported an annual rise of 14% in missed bill payments last month for their second highest rate on record, figures on Thursday showed, pointing to growing financial strain on households. The percentage of failed direct debits - mostly used for utility bills or mortgage and credit card repayments - rose from 0.82% in July to 0.83% in August, the second highest rate in monthly records, which started in January 2019."
"A "national conversation" is needed to assuage public fears that a digital version of the pound would allow the government to spy on them, Bank of England deputy governor designate Sarah Breeden said on Tuesday. The BoE and Britain's finance ministry have been consulting on whether and how to introduce a digital pound, probably in the second half of this decade."
"Starting September 1, 2023, cryptocurrency users in the United Kingdom enter a new era of regulatory scrutiny. The Financial Conduct Authority (FCA) has implemented its “Travel Rule,” a regulation that equips crypto exchanges with the authority to freeze or seize customer funds for failing to sufficiently verify their source."
"Nearly everyone in Britain will remain within three miles (4.8 km) of a cash machine that does not charge fees despite the dwindling use of notes and coins, the finance ministry said on Thursday."
"Ecommerce giant Amazon has announced that it will make changes to its payout period. Sellers in the United Kingdom and Europe will have to wait until a week after the delivery of an item to receive their proceeds. The change will come into effect in phases in the upcoming month, until September 6th."
"Apple announced on Thursday that Tap to Pay on iPhone is now available to users in the UK. For those unfamiliar, the feature turns the iPhone into a payment terminal, so vendors can use their phone to accept contactless payments. Now it seems that Tap to Pay is coming soon to Brazil as well."
"Bottomline, a leading provider of financial technology that helps make business payments simple, smart and secure, today announced the launch of Pay.UK’s Payer Name Verification service, offered through Bottomline Payments Services Limited, which will provide businesses with greater assurance that payments are being collected from the named account holder when processing Direct Debits."
"Barclays on Wednesday won a UK Supreme Court appeal that turned on the extent of banks' duties to protect customers from fraudsters in a closely watched decision lawyers say could stem a flood of litigation."
"The Bank of England (BoE) is teaming up with payments platform Nuggets to develop a privacy and identity layer for the proposed digital pound. According to a Wednesday report by The Block, Nuggets will design a private and secure payments feature using ‘Untraceable connections to privately swap and check credentials without revealing identities.’"
"Mastercard is setting up a testbed, dubbed the Multi-Token Network (MTN), which will begin by exploring tokenized bank deposits, and which will be available in beta mode this summer in the U.K."
"A U.K. bill giving regulators the power to supervise crypto and stablecoins was approved by King Charles Thursday, marking the last formal stage that makes the bill law. Royal assent, a purely procedural step following agreement from lawmakers, makes the Financial Services and Markets Bill an Act, and includes measures to bring crypto and stablecoins into the scope of regulation. The bill was last week approved by the upper chamber of Parliament."
"Pay.UK today announces a major new collaboration within the UK payments industry that will help fight fraud by bringing together the combined power of data from multiple high street banks and payment service providers for the first time. Confirmed today in a pilot form, the initiative aims to create a new overlay service for UK banks and building societies that will safely and securely analyse money flows and use predictive intelligence to proactively detect fraud and help prevent crime before it occurs."
"A major study between the Bank for International Settlements and the Bank of England found that a retail central bank digital currency could make peer-to-peer payments cheaper and easier."
"U.K. parliamentarians have voted through a new bill that could recognize crypto as a regulated activity in the country. The approval of the Financial Services and Markets Bill (FSMB) on Monday by Parliament’s upper chamber, the House of Lords, means the bill is going to enter the final stages before it is put into law."
"Vodafone Group Plc and CK Hutchison Group Telecom Holdings Limited, a wholly owned subsidiary of CK Hutchison Holdings Limited, have entered into binding agreements in relation to a combination of their UK telecommunication businesses, respectively Vodafone UK and Three UK . Vodafone will own 51% of the combined business and CKHGT 49%."
Bank Info Security
"U.K. banks will soon have to reimburse customers who fall prey to authorized push payment scams. The U.K.'s Payment Systems Regulator recently released a long-awaited policy that would split the reimbursement cost between sending and receiving banks."
"This collaboration enables Flutterwave to give its African e-commerce merchants enhanced access to UK and EU customers, while Token.io leverages Flutterwave's presence in Africa to enable a Pay By Bank method for businesses in the continent."
"More than two-thirds of all online shopping scams affecting UK consumers start on Facebook and Instagram , with social media now a “wild west” for fraud, according to one of Britain’s biggest banks."
"Today Mesh Payments announced expansion of its unified spend management platform to support global multinational businesses operating in Europe, UK, and Asia in local currencies. Mesh now enables companies to operate globally across international entities, issue local cards and settle in local currencies all from one unified platform."
"The Bank of England is preparing to reject a bid by digital bank Revolut for a UK banking licence, citing balance sheet issues, The Daily Telegraph newspaper reported Friday. Revolut, Britain's most valuable fintech company, told the paper the issue in fact surrounded auditor concerns over revenues. The Bank of England made no comment when approached by AFP."
"Millions of British borrowers repeatedly missed payments on bills in the six months to January amid the steep surge in the cost of living and higher interest rates, a survey from the Financial Conduct Authority regulator showed on Tuesday. British households have faced double-digit inflation since September and the government's budget forecasters have said the country is heading for a record decline in living standards over the two years to March 2024."
Electronic Payments International
"UK fraud losses overall fell by 8% to £1.2bn, driven by a 17% fall in authorised push payment (APP) losses. Specifically, APP fraud dropped to £485.2m in 2022, following a 39% rise the previous year. While the efforts of Confirmation of Payee and tailored communications have been successful, more can be done to further eradicate payments fraud in the UK, argues Matt Cox, MD, EMEA, FICO."
"” Fraud now accounts for over 40% of crime. It costs us nearly £7 billion a year and we know these proceeds are funding organised crime and terror. What’s more, new technologies are making these scams easier to do and harder to police. It’s time to take the fight to the scammers and fraudsters, and put an end to these crimes which can devastate lives and livelihoods within seconds. Today, we’re launching our new plan to tackle fraud."
"People in the UK lost £1.2bn to fraud in 2022, the equivalent of £2,300 every minute, according to bank industry group UK Finance. It said around three million scams took place - slightly less than the previous year - with frauds involving payment cards being the most common. UK Finance said losses were not always reimbursed and urged tech firms to "share the burden" of covering costs. Ministers say they will get tougher on scams as part of a national strategy. Fraud is now the most common crime in the UK, with one in 15 people falling victim."
"Barclays and B2B payments tech company TransferMate have announed a new partnership to provide a new international receivables tool for the British companies.Barclays' British business customers operating in GBP will now be able to invoice customers in their clients’ local currency in over 60 currencies and across 67 countries.Users will receive the payment back into their GBP account at the exact amount requested with manual reconciliation eliminated, said the bank."
"The latest data from FICO on UK credit card trends illustrates the financial balancing act many consumers are facing. Average card spend has increased month-on-month and year-on-year. Higher prices for day-to-day purchases will be reflected in this increase. UK consumers are also paying off less of their outstanding balance, indicating the squeeze on personal budgets."
"On 29 March 2023, the UK Government published a White Paper entitled “A pro-innovation approach to AI regulation” (“White Paper”). The White Paper elaborates on the approach to AI set out by the Government in its 2022 AI Governance and Regulation Policy Statement (“Policy Statement” – covered in our blog post). This announcement comes following the Government’s commitments, in the Spring Budget 2023, to build an expert taskforce to develop the UK’s capabilities in AI foundation models and produce guidance on the relationship between intellectual property law and generative AI."
"New analysis of UK credit card activity from FICO has revealed worrying payment patterns amongst customers who have held their cards for between one and five years, known as the Established vintage. This group is showing increased rates of missed payments and other signs of financial stress. This will particularly be a concern for risk managers, with new Consumer Duty expectations starting in July."