“ritish shoppers used cash in only 15% of transactions in 2021, half the level of the year before and down from nearly 40% before the COVID-19 pandemic, retailers said on Friday. The British Retail Consortium said government advice to go contactless during the pandemic, as well as a surge in online shopping, had accelerated an existing shift away from cash. Debit cards accounted for 67% of transactions last year, up from 54% in 2020, while credit cards made up 15%, up from 14%, said the BRC, which represents major stores who accounted for almost 40% of British retail sales last year.”

“Payments data in the UK is changing.  The UK payments industry is moving to ISO 20022, the emerging global standard for payments messaging. This standard creates a common language for payments data across the globe. This change includes our sterling high value payment system CHAPS, which will migrate to ISO 20022 messaging on 19 June 2023. Better data in payments promises to deliver significant long-term benefits for the economy. To adapt to the new messaging standard and accompanying data requirements, your organisation might have to make process and technology changes.”

“British business is bracing itself for a difficult year ahead, new research from Europe’s leading open banking platform, Tink, has revealed. In a recent survey of UK online retailers, half (50%) said they are worried about how their business will survive the next 12 months, with four in ten (41%) afraid of going bankrupt.  As consumers rein in spending, two thirds (66%) of retailers are expecting to see, or are already seeing, more abandoned baskets – particularly at the point of payment (64%). Lower average order values (75%) and fewer repeat customers (67%) are also either expected or already being observed. To adapt and survive, four in ten (40%) retailers have already or are considering cutting costs across the board – from reducing staff (49%) and training (55%) to advertising (52%), technology and online/website investments (48%). Services that customers have come to expect for free are also under threat – with over half of merchants having already stopped or are considering stopping free delivery (53%) and free returns (54%).  Top priorities for merchants looking to reduce payments related costs include reducing payment acceptance fees (44%), lowering costs associated with fraud (35%) and cutting refund costs (40%).”

“Santander will block UK customers from sending real-time payments to cryptocurrency exchanges next year as part of measures to protect customers from scams, the bank said in an emailed statement on Friday. At an unspecified point during 2023, the bank will introduce a block on all real-time payments to cryptocurrency exchanges made via telephone banking and in-branch payments, as well as online and mobile banking.”

“The FCA has warned firms that offer Buy Now Pay Later (BNPL) products that although some agreements are unregulated the financial promotions of all BNPL products must comply with the financial promotion rules. Unauthorised firms might be committing a criminal offence if they don’t have an FCA-authorised firm approve their financial promotions.   Authorised firms selling unregulated or exempt BNPL products must comply with the relevant rules unless an exemption applies. This includes that their BNPL financial promotions must be clear, fair and not misleading.  The FCA is concerned consumers could be misled if BNPL financial promotions do not comply and has seen financial adverts on websites and social media, including posts by social media influencers, which may breach FCA rules.”

“Bryan Zhang, the co-founder of the Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School, will head up the strategic working group for the oversight of open banking. The UK has moved another step closer to a clear vision of the open banking Oversight Committee with its latest appointment.   Bryan Zhang will act as the new independent chair for the Joint Regulatory Oversight Committee’s (JROC) strategic working group (SWG). Co-chaired by the Financial Conduct Authority (FCA) and the Payments Systems Regulator (PSR), the SWG is a non-decision-making consultative forum to provide industry and stakeholder insight to help shape the future development of open banking.”

“FICO’s report of April 2022 UK card trends shows some early signs of the impact of the widely reported cost-of-living pressures. The monthly report based on the largest consortium of UK cards data shows a typical rise in card spend and balances, but also a slight increase in missed payments. Average monthly spend hit £760, tied with December 2021 as the highest in more than two years. Highlights: Average total sales at £760 – a 10 percent month on month increase, which is typical behaviour in card spend for the time of yearAverage active balance is also rising month on month – again typical for the time of year. No change month on month in percentage of payments to balance, suggesting continued pragmatic management of credit card accounts. But a small uplift in the average balance for accounts missing 1 payment suggests inflation is having an impact”

“This “algorithmic processing” is commonplace and often beneficial, underpinning many of the products and services we use in everyday life. From detecting fraudulent activity in financial services to connecting us with friends online or translating languages at the click of a button, these systems have become a core part of modern society. However, algorithmic systems, particularly modern Machine Learning (ML) or Artificial Intelligence (AI) approaches, pose significant risks if used without due care. They can introduce or amplify harmful biases that lead to discriminatory decisions or unfair outcomes that reinforce inequalities. They can be used to mislead consumers and distort competition. Regulators need to work together to articulate the nature and severity of these risks and take measures to mitigate them. That’s how they can help empower the development and deployment of algorithmic processing systems in safe, responsible ways that are pro-innovation and pro-consumer.”

“This “algorithmic processing” is commonplace and often beneficial, underpinning many of the products and services we use in everyday life. From detecting fraudulent activity in financial services to connecting us with friends online or translating languages at the click of a button, these systems have become a core part of modern society. However, algorithmic systems, particularly modern Machine Learning (ML) or Artificial Intelligence (AI) approaches, pose significant risks if used without due care. They can introduce or amplify harmful biases that lead to discriminatory decisions or unfair outcomes that reinforce inequalities. They can be used to mislead consumers and distort competition.”

“When the blueprint for the U.K.’s New Payments Architecture was unveiled to great fanfare in 2015, it promised to transform the country’s payments systems by providing increased access for consumers, as well as fostering competition and innovation. But the initiative is in danger of falling far short of these goals, and the U.K.’s Payment Systems Regulator recently announced that the complexity of the NPA has been greatly narrowed due to its perceived risks.”

“On Friday, the limit for contactless card payments rose by more than half, from 45 pounds ($62) to 100 pounds. It’s a milestone for a country whose banks got an early start with tap-to-pay technology and where 88% of debit and 81% of credit cards now have contactless features.”

“The UK payments industry highly values the work of the European Payments Council and its members ensured the UK retained its membership of the Single Euro Payments Area, which minimised payment disruption for millions of people and companies across Europe following Brexit. After decades of close collaboration and innovation between the UK and the     on payments regulation the UK’s payment landscape is, and will continue to be, strongly interlinked with the European landscape. The UK payments industry continues to look to Europe to deliver on key initiatives such as the Retail Payments Strategy and Open Finance proposals.”

“The new, payment beneficiary name-checking service known as Confirmation of Payee (CoP) is now enabling more than 1 million name-checking requests per day, helping to protect consumers and businesses from certain types of fraud and misdirected payments. The end of June 2020 saw a number of UK banks and building societies complete their rollout of CoP. It means that when an individual or business sets up a new payee, or edits an existing payee’s details, they now need to provide the sort code and account number plus the account name of the individual or business they are paying.”