China mobile payments maintain rapid growth in Q3 — Xinhua — “Banks in the country processed 27.27bn mobile payment transactions in the period, up 61.05% year on year, said the People’s Bank of China in a report. The value of these transactions increased by 31.52% from the same period of last year to 86.11tn yuan (about US$12.2tn). Meanwhile, online payment transactions by the non-banking institutions were valued at 63.99tn yuan in Q3, up 23.04% year on year.”
Report
eMarketer identifies top countries for mobile payments adoption
China remains the country with by far the highest mobile payments adoption rate, with 81.1% of smartphone owners making use of the technology, eMarketer reports... More
Apple Pay takes top slot as most popular mobile payments app in the US
Three in ten US smartphone owners now use a mobile payments app to make payments in stores — and Apple Pay is now the most popular with 30.3 million users, according to new research by eMarketer... More
Report: EU antitrust investigators are examining Apple Pay
Apple Pay “has caught the eye of EU antitrust investigators, who have asked payment companies for feedback on the service,” regulatory risk specialist MLex reports... More
Survey pinpoints roadblocks to US mobile payments adoption
A major investigation into US consumers’ attitudes to mobile payments has found that concerns over how well they would be protected against loss should an issue arise is now the major barrier to widespread adoption of the technology... More
Accenture issues $280bn payments revenue warning to banks
Banks are at risk of losing up to 15% of global payments revenue, valued at US$280bn, due to “the growth of digital payments and competition from non-banks”, Accenture predicts — but they also have the opportunity to capture US$500bn in new payments-related revenues “if they adopt innovative business models”... More
IMF reports on the impact of digital money on banking business models
IMF warns banks to evolve or be ‘left behind’ amid competition from big tech firms — CNBC — “IMF authors Tobias Adrian and Tommaso Mancini-Griffoli said the two most common forms of money today, cash and bank deposits, will ‘face tough competition and could even be surpassed’. But banks are ‘unlikely to disappear’ as they face growing threats from big tech companies and fintech start-ups, the paper said. ‘Some will be left behind no doubt,’ the authors wrote. ‘Others will evolve, but must do so quickly’.”
ETA issues US mobile payments market status report
The state of mobile payments in 2019 — Electronic Transactions Association — “In 2018, 55 million people in the US used their smartphone to make a payment at a physical point of sale, whether by loading money into a closed-loop mobile app (like the Starbucks app) or by loading a credit or debit card into an open-loop mobile wallet (like Apple Pay, Google Pay, or Samsung Pay) and using it to pay at the point of sale. These 55 million users account for about 20% of the U.S. population aged 15 and over, and just over 25% of US smartphone users.”
Boston Fed reports on contactless card and NFC payments adoption issues
The rollout of contactless cards in the US should have an overall positive influence on NFC mobile payments adoption in the US, according to a report from the Federal Reserve Bank of Boston — but both consumers and merchants have ongoing adoption issues that remain to be resolved... More
UK government to invest in next generation transport innovation zones
The UK government is to fund the setup of up to four ‘future mobility zones’ in which a range of transport models and services will be tested, including integrated mobility-as-a-service applications that “make it simpler and quicker to book and pay for transport”... More
IMF report finds digital currencies are gaining ground with central bankers
At least 15 central banks are serious about getting into digital currency — MIT Technology Review — “There are two main reasons for the trend, according to the report. First, new forms of digital money are ‘shrinking the role of cash’. Besides that, some central banks are interested in using the technology to reach the hundreds of millions of people who do not have a bank account or access to modern financial services. Finally, most central banks see the potential to reduce costs by replacing physical banknotes with digital ones.”
Biometric payment card forecast predicts 579m cards in circulation by 2023
Biometric cards’ ability to enable frictionless customer authentication for higher value contactless transactions will lead to the technology gaining widespread adoption by 2023, Goode Intelligence predicts, with a total of almost 579m biometric payment cards in use around the world in five years’ time... More
Boston Fed: One in four US financial institutions now offer a mobile payments service
Survey: Retail mobile banking nearing universal adoption, mobile payment offerings accelerate — Federal Reserve Bank of Boston — “Implementation of mobile payment services is accelerating as financial institutions respond to competitive pressure and the industry momentum for mobile payments: In addition to the 24% already offering mobile payments, 40% plan to do so within two years. Additionally, more than two-thirds of respondents partner or plan to partner with third-party processors and more than half are considering a partnership with a near-field communication (NFC) wallet provider.”
Bank of Canada reports on the potential of digital currencies
Central Bank Digital Currency: Motivations and implications — Bank of Canada — “This paper addresses the question of whether a central bank should issue digital currency that could be used by the general public. It begins by discussing the possible motivations for a central bank to issue a digital currency. The paper then sets out a benchmark central bank digital currency (CBDC) with features that are similar to cash. The implications of such a digital currency are explored, focusing on central bank seigniorage, monetary policy, the banking system and financial stability, and payments.”
Mastercard and Western Union explore digital model for refugee camps
Mastercard and Western Union explore digital model for refugee camps — Mastercard — “Mastercard and Western Union examined the needs, challenges and opportunities for refugees and their host communities at two settlement camps in northwestern Kenya. The findings have led to the development of Smart Communities: Using Digital Technology to Create Sustainable Refugee Economies, a blueprint that would combine digital access to remittances, banking, education, healthcare and other basic needs.”
Insights into the future of cash
Insights into the future of cash — Bank of England — “The value of Bank of England notes in circulation peaked in the run-up to Christmas 2016, reaching over £70bn for the first time — an increase of 10% on a year earlier. This is the fastest growth we’ve seen in a decade, and a giant leap compared to the £2.9bn when the ATM was born.”
Chinese mobile payments up in Q1
Chinese mobile payments up in Q1 — China Daily — “Chinese commercial banks dealt with 9.3 billion payments from mobile banking services in Q1, up 65.7% from a year ago, the People’s Bank of China, the central bank, said in a report… Combined value of mobile payments rose 16.4% to 60.65 trillion yuan ($9 trillion).”
Xiaomi and Apple tie for the top position as the wearables market swells 17.9% during the first quarter, according to IDC
Xiaomi and Apple tie for the top position as the wearables market swells 17.9% during the first quarter, according to IDC — International Data Corporation — “The worldwide wearables market maintained its upward trajectory during the first quarter of 2017 (1Q17) with Xiaomi and Apple leading all companies and multiple products experiencing double- and triple-digit growth.”
More than half of global card-present payments used EMV standard in 2016
More than half of all card-present transactions conducted globally (52.4%) between January and December 2016 used the EMV chip card standard, up from 35.8% for the same period in 2015, standards body EMVCo has revealed... More
New CSA report offers observations, recommendations on connected vehicle security
New CSA report offers observations, recommendations on connected vehicle security — Cloud Security Alliance — “The paper will provide a ‘big picture’ view of the various aspects of vehicles and infrastructure components to better understand their interrelationships, dependencies and threats to the traffic ecosystem.”