The European Commission’s new rule on credit cards will cut 200 million commissions in Italy: will a subscription fee be introduced? With a contribution by Gabor Friedenthal, Dep. Managing Director, and Daniele Pontecorvo, SEM
This note by Rosa M. Abrantes-Metz, Practice Co-Leader, Global Antitrust & Competition, Brattle, was prepared for the discussion “Competition and Payment Card Interchange Fees” held at the 19th meeting of the OECD-IDB Latin American and Caribbean Competition Forum on 22 September 2021. More papers and presentations on the topic can be found out at oe.cd/laccf.
Rising Above Uncertainty: Opportunities and Challenges for Credit Unions in P...NAFCU Services Corporation
The retail financial services market is in a transformative period where new stakeholders and business models are reshaping the industry. Credit unions still have the opportunity for retention and growth, but must continue to compete. In this presentation, you will get an in-depth look at key market dynamics, including evolving financial services models and regulatory impact; learn about emerging strategies and their impact to credit unions, including EMV, prepaid, and mobile; and find out how to prepare for the future.
Experience in Supervising Banks and Non-banks Operating through AgentsCGAP
Agent supervision is still an underdeveloped area in the majority of countries with the exception of a few countries that have created comprehensive and detailed supervisory frameworks, encompassing all phases, from licensing to monitoring, from inspections to enforcement.
The majority of countries have not yet fully developed their supervisory procedures to identify and mitigate agent risks, acting on a more reactive and ad-hoc basis.
The approach in supervising agents varies considerably depending on the overall approach taken by supervisors (with some being more intrusive and some more lax in supervising the financial sector)
In the countries where nonbanks (e.g. mobile money providers) have extensive agent networks (e.g. Tanzania), there is disparity in the approach to supervising bank-based vs. nonbank-based agents
This note by Rosa M. Abrantes-Metz, Practice Co-Leader, Global Antitrust & Competition, Brattle, was prepared for the discussion “Competition and Payment Card Interchange Fees” held at the 19th meeting of the OECD-IDB Latin American and Caribbean Competition Forum on 22 September 2021. More papers and presentations on the topic can be found out at oe.cd/laccf.
Rising Above Uncertainty: Opportunities and Challenges for Credit Unions in P...NAFCU Services Corporation
The retail financial services market is in a transformative period where new stakeholders and business models are reshaping the industry. Credit unions still have the opportunity for retention and growth, but must continue to compete. In this presentation, you will get an in-depth look at key market dynamics, including evolving financial services models and regulatory impact; learn about emerging strategies and their impact to credit unions, including EMV, prepaid, and mobile; and find out how to prepare for the future.
Experience in Supervising Banks and Non-banks Operating through AgentsCGAP
Agent supervision is still an underdeveloped area in the majority of countries with the exception of a few countries that have created comprehensive and detailed supervisory frameworks, encompassing all phases, from licensing to monitoring, from inspections to enforcement.
The majority of countries have not yet fully developed their supervisory procedures to identify and mitigate agent risks, acting on a more reactive and ad-hoc basis.
The approach in supervising agents varies considerably depending on the overall approach taken by supervisors (with some being more intrusive and some more lax in supervising the financial sector)
In the countries where nonbanks (e.g. mobile money providers) have extensive agent networks (e.g. Tanzania), there is disparity in the approach to supervising bank-based vs. nonbank-based agents
mCASH om PSD2 (betalingstjenestedirektivet) på betalingsformidling 2015Daniel R. Döderlein
Gründer og CEO i mCASH, Daniel R. Döderlein var invitert av programkomiteen til å ta for seg PSD2 (betalingstjenestedirektivet del 2) og hvilke konsekvenser dette kan ha på det norske markedet for betalingstjenester med spesiell fokus på bankers rolle i forhold til nye tredjeparter.
It is clear the banking landscape is changing. Explore what open banking means and the impact it could have on the market. Find out more in our report at Deloitte.co.uk/Flourish. You can also discover further analysis on open banking and the future of banking generally at Deloitte.co.uk/FutureBank.
Learn about how remittance challenges have grown as electronic payment usage has continued to grow. Learn about how the movement to electronic payments and remittances has created benefits for accounts payable but created a cash application challenge for those in accounts receivable. Created by Centreviews Business Intelligence Suite.
Cormac Leech: A Banking Analyst's Perspective on P2P
Keynote address by Cormac Leech, of Liberum, at LendIt Europe 2014. The title of this presentation is A Banking Analyst's Perspective on P2P.
Digital Financial Services for Financial InclusionJohn Owens
This presentation highlights some of the digital financial service trends, policy and regulatory issues and examples of digital financial services and the role it plays in financial inclusion in various countries in the Asia Pacific region.
This was the opening session of the panel on digital financial services and financial inclusion during the Asia Pacific Regional Forum on Universal Access and Services and Broadband Deployment 2015 in Bangkok, Thailand.
In 2013, CGAP provided funding, technical assistance and knowledge sharing to one of mobile money player in Côte d’Ivoire. The objectives were twofold: (1) to expand the reach of mobile money services and improve the quality of the agent network, and (2) extract lessons learned.
Infrastructure and new energies from planning to realization_Value PartnersValue Partners
9th Italian Energy Summit: the opening speech of the roundtable devoted to “Infrastructures and new energies: from support plans to projects realization”. By Ruggero Jenna, director of Value Partners and leader of the Singapore office.
Magazine Publishers' Transformation: The Time to Act is Now! Value Partners
By Demetrio Di Martino, Partner of the Singapore office, Charles Monteux, Senior Engagement Manager of the São Paulo office and Mark Weston, Business Analyst of the London office. January
Leaders use procurement to catalyze lasting, superior business performance through excellence in managing categories, suppliers, and teams. The rush to cut costs in the wake of the 2008–09 Great Recession propelled procurement organizations to the forefront at companies around the world. Faced with so much uncertainty, companies raced to shed costs—and procurement rose to the challenge, delivering exceptional results. With this came an increase in procurement's stature, influence, and reach. A.T. Kearney's Assessment of Excellence in Procurement (AEP) 2011 study saw a doubling in the rate of benefits achieved by the procurement functions since the 2008 study, yielding the highest percentage gains seen in the more than two decades since we began conducting this study. In 2011, we projected that this upward trajectory would continue: procurement appeared poised to deliver even greater impact to the business. Our 2014 AEP study finds that while leading companies continued their trajectory, most procurement organizations only sustained the gains in influence and reach made between 2008 and 2011. In short, the typical company may be "wasting a crisis" by not continuing to enhance one of the most powerful levers to improve profitability and competitive advantage. - See more at: http://www.atkearney.de/studie/-/asset_publisher/Rv2vNmilj1Kf/content/procurement-powered-business-performance?_101_INSTANCE_Rv2vNmilj1Kf_redirect=%2Fresearch-studies#sthash.CJibvJBu.dpuf
mCASH om PSD2 (betalingstjenestedirektivet) på betalingsformidling 2015Daniel R. Döderlein
Gründer og CEO i mCASH, Daniel R. Döderlein var invitert av programkomiteen til å ta for seg PSD2 (betalingstjenestedirektivet del 2) og hvilke konsekvenser dette kan ha på det norske markedet for betalingstjenester med spesiell fokus på bankers rolle i forhold til nye tredjeparter.
It is clear the banking landscape is changing. Explore what open banking means and the impact it could have on the market. Find out more in our report at Deloitte.co.uk/Flourish. You can also discover further analysis on open banking and the future of banking generally at Deloitte.co.uk/FutureBank.
Learn about how remittance challenges have grown as electronic payment usage has continued to grow. Learn about how the movement to electronic payments and remittances has created benefits for accounts payable but created a cash application challenge for those in accounts receivable. Created by Centreviews Business Intelligence Suite.
Cormac Leech: A Banking Analyst's Perspective on P2P
Keynote address by Cormac Leech, of Liberum, at LendIt Europe 2014. The title of this presentation is A Banking Analyst's Perspective on P2P.
Digital Financial Services for Financial InclusionJohn Owens
This presentation highlights some of the digital financial service trends, policy and regulatory issues and examples of digital financial services and the role it plays in financial inclusion in various countries in the Asia Pacific region.
This was the opening session of the panel on digital financial services and financial inclusion during the Asia Pacific Regional Forum on Universal Access and Services and Broadband Deployment 2015 in Bangkok, Thailand.
In 2013, CGAP provided funding, technical assistance and knowledge sharing to one of mobile money player in Côte d’Ivoire. The objectives were twofold: (1) to expand the reach of mobile money services and improve the quality of the agent network, and (2) extract lessons learned.
Infrastructure and new energies from planning to realization_Value PartnersValue Partners
9th Italian Energy Summit: the opening speech of the roundtable devoted to “Infrastructures and new energies: from support plans to projects realization”. By Ruggero Jenna, director of Value Partners and leader of the Singapore office.
Magazine Publishers' Transformation: The Time to Act is Now! Value Partners
By Demetrio Di Martino, Partner of the Singapore office, Charles Monteux, Senior Engagement Manager of the São Paulo office and Mark Weston, Business Analyst of the London office. January
Leaders use procurement to catalyze lasting, superior business performance through excellence in managing categories, suppliers, and teams. The rush to cut costs in the wake of the 2008–09 Great Recession propelled procurement organizations to the forefront at companies around the world. Faced with so much uncertainty, companies raced to shed costs—and procurement rose to the challenge, delivering exceptional results. With this came an increase in procurement's stature, influence, and reach. A.T. Kearney's Assessment of Excellence in Procurement (AEP) 2011 study saw a doubling in the rate of benefits achieved by the procurement functions since the 2008 study, yielding the highest percentage gains seen in the more than two decades since we began conducting this study. In 2011, we projected that this upward trajectory would continue: procurement appeared poised to deliver even greater impact to the business. Our 2014 AEP study finds that while leading companies continued their trajectory, most procurement organizations only sustained the gains in influence and reach made between 2008 and 2011. In short, the typical company may be "wasting a crisis" by not continuing to enhance one of the most powerful levers to improve profitability and competitive advantage. - See more at: http://www.atkearney.de/studie/-/asset_publisher/Rv2vNmilj1Kf/content/procurement-powered-business-performance?_101_INSTANCE_Rv2vNmilj1Kf_redirect=%2Fresearch-studies#sthash.CJibvJBu.dpuf
Il nuovo scenario dei servizi di pagamento post-PSD_Value PartnersValue Partners
A speech by Alessandro de Cristofaro, senior manager of Value Partners, at the 2009 edition of CARTE. The speech is devoted to the new scenario of payments systems after the introduction of Payment Services Directive (PSD).
Even if China's GDP growth slows to 5.5%, personal consumption is projected to increase by about half to $6.5 trillion, by 2020. But growth is only a part of the story: demographic, social, and technological forces will transform China's consumer economy.
This presentation covers the credit card business and highlights the many different types of credit cards available, how credit cards are processed and the major credit card issuers.
PSD2: The Advent of the New Payments Market in EuropeTransUnion
Register today for this webinar that summarizes Aite Group’s PSD2 Research Report, commissioned by iovation, a TransUnion Company, providing an in-depth analysis of how those in the payment services and e-commerce market should prepare to handle the new strong customer authentication (SCA) requirements under the second Payment Services Directive (PSD2).
Join Angie White, Product Marketing Manager and PSD2 expert at iovation, a TransUnion Company, and Ron Van Wezel, Senior Analyst at Aite Group's Retail Banking and Payments Practice, as they analyze the results of the actual market status in Europe regarding the main changes that PSD2 will bring to the online payments market. Learn what Aite Group concluded after interviewing 20 payments executives from European banks, other PSPs, merchants, payment networks and industry experts.
Key takeaways:
The impact of PSD2, highlighting the priorities that organizations have yet to manage in the transition to the new world after PSD2.
How organizations seek to implement the requirements for secure customer authentication (SCA) and minimize the impact on customer experience.
An analysis of the potential of payment innovation and open banking as a result of PSD2.
If you haven’t already, register for this complimentary research report, PSD2: Advent of the New Payments Market in Europe.
Read the overview of the implications of PSD2 for the payment space in relation to fraud prevention and authentication, including recommendations for banks and other players on how to comply while minimizing friction during the payment process.
Digital Money, from a regulatory point of viewPatrick Bucquet
Unclear regulation about digital money allows new comers to enter and change the market, and now regulators are struggling to push even more for financial inclusion while protecting the customers.
From local approaches to a global one, regulators and governance bodies need to share insights and anticipate developments to build a consistent framework.
A primer and overview of Open Banking, also known as Payment Service Directive 2 or PSD2, which went into effect in the UK on 13 January 2018. Produced by Digital Ventures, the Fintech arm of Siam Commercial Bank. Credit to Nat Wittayatanaseth for the research.
Paying for stuff is, unfortunately, something we do every day! Be it with cash, cards, mobile phones or with our fingerprints and faces, we send money from one account to another. Globally speaking, cash is still king, but the payment experience is undergoing radical disruption which for the time being especially involves the act of payment more than the processing that goes on behind it. This presentation provides a description of payment processes and the new trends that are slowly but surely re-shaping the way we pay money. The authors are Philippe Collombel, Nico Valenti Gatto and Tanguy Confavreux who all work for Partech Ventures, a global venture capital fund with offices in San Francisco, Paris, Berlin and Dakar.
The policy and prospects of China’s fixed broadband Market liberalizationValue Partners
By Jane Hou , Partner, and Adam Meng, Associate of the Beijing office, and Taylor Lam, SEM of the Hong Kong office
A new perspective devoted to the “policy on the pilot of fixed broadband market liberalization” in China, that encourages civil capital to enter fixed broadband market in various models, a milestone of state monopolized industries’ opening up
Dynamic ticket pricing. Squeezing more juice from half time oranges Value Partners
A new perspective devoted to the benefits of the dynamic ticket pricing (DTP) in the sport industry. It is a pricing strategy according to which companies set flexible (dynamic) prices based on market demands.
Online to offline. What is in for traditional retailers? Value Partners
A new perspective devoted to O2O and the latest approaches adopted by retailers trying to integrate online resources with their offline physical assets
Customer Service: Achieving excellence through a company-wide approachValue Partners
A new perspective devoted to customer satisfaction, a key driver to increase a company’s value. By Alberto Griselli and Charles Monteux of the São Paulo office
Un nuovo perspective dedicato all'importanza della trasparenza nel settore sanità, con un confronto internazionale - A cura di Daniela Scaramuccia, Partner, e Nunzio Guida, Associate dell'ufficio di Milano Dicembre
A new perspective devoted to forecasting: demand planning is a very challenging job, that is why multinationals manage forecasting poorly. How can they improve it?
A perspective devoted to Private Equity firms: to be successful they should adopt an innovative business model and control the richest parts of the value chain
By Rachel Healy, senior manager, and Kim Chua, manager, at Value Partners London
There has been much discussion about the level and rate of viewing migration from linear to VOD; the general consensus seems to be that the speed of the shift will be slow, and that the proportion of VOD viewing in the medium term (say fi ve years) will remain low at 6 – 8%, compared to c. 2% today. However, do these forecasts take into account step-change shifts in behaviour of Generation Z1, the ‘digital natives’? Value Partners runs an internship programme for aspiring TMT strategy consultants each summer. This year, we asked one of our interns to carry out primary research into their peer group’s current and future TV viewing patterns. We worked with her to design a 26-question survey which she distributed via Facebook. Although this is by no means a ‘representative sample’ of Gen Z – a sample of just 78 respondents, largely Oxbridge and users of Facebook – the results paint an interesting picture of the relationship this highly sought after demographic has with TV and how this will evolve as they leave university and move into the world of work.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the what'sapp information for my personal pi vendor.
+12349014282
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the what'sapp contact of my personal pi merchant to trade with.
+12349014282
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the what'sapp contact of my personal pi merchant to trade with
+12349014282
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
#US
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the what'sapp contact of my personal pi vendor
+12349014282
when will pi network coin be available on crypto exchange.
Credit cards regulation evolution
1. UKNE-PracticeDoc-150116-0
The information contained in this document belongs to Value Partners Management Consulting S.p.A and to the
recipient of the document. The information is strictly linked to the oral comments which were made at its presentation,
and may only be used by attendees of that presentation. Unauthorized copying, disclosure or distribution of the material
in this document is strictly forbidden and may be unlawful.
Regulatory environment
evolution and potential
impacts for the payment
eco-system
London, February 2015
Practice document
3. UKNE-PracticeDoc-150116-2
2
The use of non-cash transactions has constantly increased
during the last years, with Europe growing faster and having
larger room for cash substitution then North America
Number of Worldwide Non-Cash Transactions by Region (Billion), 2008–12
Source: World Payments Report 2014 RBS, Value Partners analysis
CAGR
Cash
Penetration
’08-’12
7.6%
19.3%
93%25.2%
11.0%
14.6% 92%
4.3% 77%
3.6% 54%111,2 113,1 116,6 124,0 127,9
11,7
15,3
19,4
23,3
28,8
11,8
13,6
16,4
19,5
23,9
2012
30.1
29.3
84.2
310.4
2011
33.5
32.5
87.6
334.3
2010
286.0
80.8
25.6
27.2
2009
269.4
77.2
23.8
26.3
2008
249.8
74.2
18.9
22.0
North America
(U.S. and Canada)
Europe
(Including Eurozone)
Latin America
Mature Asia-Pacific
CEMEA
Emerging Asia
Global
Focus of the document
4. UKNE-PracticeDoc-150116-3
3
2,5%
Within electronic payments card usage has shown the slowest
growth in Europe and is still lagging behind as card usage share
compared to other geographies
Share of cards in Payment services mix (%), 2008, 2011–2012
Source: World Payments Report 2014, Value Partners analysis
49%
78%
71%
81%
67%
43%42%
39%
201220112008
North America
(U.S. and Canada)
Latin America
Mature Asia-Pacific
CEMEA
Emerging Asia 3,9%
5,5%
4,3%
3,7%
3,7%
Other
regions
Europe
Share of cards ’08-’12 growth
5. UKNE-PracticeDoc-150116-4
4
The card payments are managed following 2 main models:
4-party and 3-party schemes
4-party scheme 3-party scheme
Scheme
Model
Adopting Debit
Schemes
Adopting Credit
Schemes
• Transactions “On us” (the same bank is both Issuer and
Acquirer) follow the 3 corner model logic
• The schemes sells cards
directly to the cardholder and
rents POS to the merchant
Issuing
bank
Acquiring
bank
Merchant
Cardholder
Merchant
Cardholder
6. UKNE-PracticeDoc-150116-5
5
Issuing
bank
Acquiring
bank
The key variables defining remuneration flows in the card
payments eco-system between the players are MIF and MSC
When a client pays a product
by card to merchant, the
transaction flow can be
described in 4 steps:
a) Cardholder’s account is
debited for 100€ by Issuer
b) Issuer transfers 100€ to
Acquirer
c) Acquirer transfers 100€
minus merchant service
charge (composed mainly
of MIF, card scheme fees
and acquirer’s margin^)
d) Acquirer transfers MIF to
Issuer
e) Acquirer and issuer
transfer card scheme fees
f) The merchant pays
Merchant Service Charge
(MSC) to the acquirer
normally at the end of the
month
Illustrative scheme of the payment flowCase description
ILLUSTRATIVE
- not on us transaction
100€ 100€ 98.5€
0.9€MIF*
a
b
c
d
At the end, on 100 euro of transaction, merchant gets 98.5 €, issuer 0.9€, acquirer gets 0.5€ and
card schemes 0.1 €
a
b
c
d
Acquirer retains a
percentage (hp 0,5%=0,5€)
of the transaction as
acquiring margin
0.1€
Card Scheme
e
e
^ Clearing and settlement fees not considered because marginal
f
Merchant
Cardholder
MSC**f
Definitions of key variables
* Multilateral Interchange Fee (MIF) a fee that a merchant's bank (the "acquiring
bank") pays a customer's bank (the "issuing bank")
** Merchant Service Charge (MSC) a fee that a merchant pays to acquiring bank
for the service of being able to accept card payments
7. UKNE-PracticeDoc-150116-6
6
To boost the secular migration to electronic payments,
European regulators are launching a series new requirements
in Europe to further push card payments
Separation of
card schemes
and processing*
Steering rules /
Honour all cards
rules*
Co-badging and
choice of
application*
Fee unbundling
(MIF++
reporting)
Cross-border
acquiring
3-party
schemes:
fees and
surcharges*
• European regulators
have been actively
working on the Payment
Package (Payment
services Directive 2 and
MIF regulation), bringing
forward numerous
initiatives regarding both
Issuing and Acquiring
side
• The regulation focuses
on lowering cost of card
acceptance through
regulating interchange
fees and increasing
competition at the
network level
• Final version of the
regulation is expected to
be issued in the end of
H1 2015 and
enforcements to come in
the end of the 2015
• Processing to be separated from schemes’ managers in
order to promote healthy competition among processors
• Latest compromise: “separated accounting and organization”
Brief description
• The merchants will be able to steer customers to lower cost
payment method and limit card accepted to lower fee card
• Cards with the same MIF cannot be steered
• Prohibition of preventing co-badging with multiple brands and
allowance of the ability for customer to choose at POS
• No restrictions on POS application / terminals limiting the
choice
• The surcharge will be forbidden for 4-party schemes, while
will be allowed for other payment methods (AmEx, Diners, ...)
• The charges can be equal to or lower than the actual cost to
payee
• Acquirers will have to provide the details namely the acquirer
fees, interchange fees, and network fees separately
• By 1 January 2015, Visa has committed to allow cross-border
acquirers (residing in another country than the one where the
acquired merchant is based) to apply reduced interchange
fees of 0.3% for credit and 0.2% for debit transactions
Our understanding of main new regulatory initiatives in Europe, as of end of Feb 2015
InitiativesinIssuing
Initiatives
in
Acquiring
MIF reduction
for consumer
debit and credit
transactions
• Interchange fees to be set at 30bps for credit and 20bps
for debit card transactions for all four-party schemes
• As of now 3-party schemes are excluded
Impacts on card schemes
3-party 4-party
Indirectly
Indirectly Indirectly
Directly
Indirectly
Directly
Indirectly
* Details in attachment
GNS
Focus of the next slides
8. UKNE-PracticeDoc-150116-7
7
EU commission regulation will impose MIF caps that will impact all
of the players in the payment eco-system
Initiative and timing
• EU commission regulation
is expected to harmonize
and lower MIFs (0.3% for
credit and 0.2% for debit) on
all transactions by
September 2015 or
September 2016 (timeframe
is strictly related to ECON*
approval) in Europe**
• While in the short-term
only transaction by VISA
(thanks to cross-border
acquiring) will be impacted,
in 2016 both VISA and
MasterCard volumes on
consumer cards will have
lower MIFs applied
MIF
Card scheme
fees
Acquirer’s
margin
Expected effects on merchant service
charge (MSC)
ILLUSTRATIVE-
Credit transaction
* European Parliament Committee on Economic and Monetary Affairs
** EU 28
Source: European commission
0,9%
0,3%
0,1%
0,5%
1,5%
0,9%
0,1%
0,5%
AS-IS TO-BE
Issuing
bank
Acquiring
bank
MerchantCardholder
Schemes
- 4-party
Players impacted in Payment
eco-system
AmEx
Loyalty programs
10. UKNE-PracticeDoc-150116-9
9
Among the players involved the banks will be directly
impacted on both acquiring and issuing side
• Merchant will benefit from lower MSC applied, due to MIF reduction
• Cardholders would have a mixed effect driven by two potential effects:
- Higher card usage due to increased acceptance by merchants
- Lower new card adoption due to potential higher card fees applied by banks (annual card fee + price
increase on additional services)
• 4-party card schemes are expected to have no specific effects, if not depending on increased /
decreased transacted volumes
• MasterCard could eventually benefit during the VISA CBA initiative, as banks will have the incentive to
issue MasterCard’s cards (in case MasterCard doesn’t lower CBA MIFs)
Card schemes
/ 4-party
/ 3-party
Cardholder
Merchant
Description
• AmEx will be indirectly impacted, both negatively - merchants will demand lower prices and positively
– lower prices will potentially push acceptance and cards issued
Issuing bank • After the EC initiative enforcement banks will face significant losses on issuing side
• In the short-term (till the end of 2015), if MasterCard does not follow VISA in CBA initiative, banks will
start to have limited impacts proportioned to adoption of CBA, with the speed of the revenue fall
depending on the strategies adopted by acquiring banks on CBA side
• Banks will implement alternative strategies to recover from losses
Acquiring
bank
• Acquiring banks which become cross-border acquirers could benefit from the MIF lowering, making
some extra-margin on the smaller merchants who are having less bargaining power and have less
awareness about regulation
Focus of the next slides
22
11
Impact
GNS
33
44
Positive
Negative
Uncertain
55
55
• Loyalty program’s impacts will largely depend on the loyalty partner type (financial vs. not financial),
with not financial partners not being impacted while financial partners’ impacts will depend on scheme
used and client base
Loyalty
programs
11. UKNE-PracticeDoc-150116-10
10
• European
regulator
considers this
situation
anticompetitive
• Coming
regulations are
changing the
“rules of the
game” eliminating
MIF barrier and
opening new
opportunities for
cross-border
acquiring
The new cross-border acquiring rules reshape
European competitive framework for cross-border
acquirers as lowered MIF levels will apply Acquiring
11
• Now cross-border acquiring occurs when
a card is issued in a different country from
the country where transaction occurs
• Cross-border acquirers (CBA) must apply
the Multilateral interchange fee (MIF) of
merchant’s country
• since the MIF accounts generally for
~70-90% of the total Merchant Service
Charge (MSC), there is limited room for
competition on price
• For these reason, nowadays cross-border
acquiring rules limit the possibility for a
merchant to benefit from better conditions
offered by acquirers established outside of
the domestic market
“As-is” situation: cross-border acquiring
New CBA rules
• Cross-border acquiring will occur
whenever the acquirer manages the
transaction in a country different
from the country where the
transaction occurs
• Cross-border acquirers from 1/2015
will apply a reduced cross-border
fee (0.3% for credit and 0.2% for
debit transactions) for cross-border
transactions within European
Economic Area (EEA*)
• The cap of MIF for credit card
transactions at 0.3% after two years
will be applied also to domestic
transactions in ten Member States**
* EU 28 + Iceland, Liechtenstein, Norway
** Belgium, Hungary, Iceland, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands and Sweden
Source: European Commission
12. UKNE-PracticeDoc-150116-11
11
Not becoming CBA in the short-term would result in
potential loss of large clients and lack of competitiveness Acquiring
11
Strategy
options
• Bank adopts CBA and
switches its clients (if
requested) to CBA contracts
in order to preserve its
market share
Description
• Bank does not adopt CBA
and continues to run the
acquiring business as it is
run now (only domestic)
Defensive
• Bank adopts CBA,
converting all merchants to
CBA contracts and trying to
acquire new merchants
(clients of non-CBA banks) to
increase its market share
Aggressive
Impact on
Acquiring
• Immediate loss of
clients who
demand CBA and
related acquiring
revenues
(especially large
corporates)
• No impact, the
bank keeps its
clients base
• Gradual increase
of acquiring
revenues due to
market share
gained from CBA
services
Do nothing
Strategic
considerations
• Suboptimal
strategy given
maximum loss on
issuing ad
acquiring
• Becoming CBA is a
dominant strategy for
banks with relevant
acquiring market share,
as it will permit to:
- Avoid loss on large
corporates and other
clients demanding
CBA services
- Extract the potential
extra-margins (see
next slide)
• Both the options
outstand the
“do nothing”
strategy
• The choice
between the two
options depends
on the
comparison
between potential
benefits from
acquiring and
related losses
from issuing
13. UKNE-PracticeDoc-150116-12
12
Moreover becoming a CBA could permit to obtain
some extra revenues in the short-term leveraging on
less informed medium and small corporates
Expected impact on MSC in the
short-term
Merchant
cluster
Large
corporate
Medium
corporate
Small
corporate
ILLUSTRATIVE
•Large corporates are expected to
request immediately the MSC
adjustment due to their higher
knowledge of regulation
framework with consequent
savings on their costs
•The demand for lower MSC will
likely be extended to 3-party
schemes
•Without regulation intervention,
the MSC is expected case by
case to lower depending on
the ability of the merchant to
renegotiate the MSC
•Without regulation intervention,
the MSC is expected to remain
the same, due to low/none
knowledge of regulatory
evolution
ILLUSTRATIVE
ILLUSTRATIVE
• MIF cap reduction
will be around 40%-
60% of actual MIF, in
the short run price
decrease
incorporation will
probably depend on
merchant cluster due
to different bargaining
power and regulation
knowledge
• This will potentially
permit to CB
acquirers to extract
some extra-margin
from the business
Expected evidences
Full MIF
decrease
incorporated
However, in
the long run
MIF will tend
to be fully
incorporated
in Merchant
Service
Charge for
all merchant
clusters
0,9%
0,3%
0,1%
0,5%
1,5%
0,9%
0,1%
0,5%
Decrease not
incorporated
As-is To-be
Acquirer
margin
MIF
Scheme
fees
As-is To-be
1,1%
0,3%
0,1%
0,7%
1,5%
0,9%
0,1%
0,5%
MIF
decrease
partially
incorporated
As-is To-be
1,5%
0,3%
0,1%
1,1%
1,5%
0,9%
0,1%
0,5%
Acquiring
Large merchants will demand to banks CBA service to lower their costs with
consequent pressure also to 3-party schemes in order to push down their costs
Acquirer
margin
MIF
Scheme
fees
Acquirer
margin
MIF
Scheme
fees
11
14. UKNE-PracticeDoc-150116-13
13
On the issuing side, in the long-term there will be a
significant reduction in the revenue pool on MIF with a
consequent shrink of bank’s profitability Issuing / 4-party
Source: ECB, VP benchmarking data, Value Partners analysis
22
ILLUSTRATIVE
• As estimated for a
pool of
benchmarked banks
after the EC law
enforcement the
bank will lose more
than half of its
revenues from MIF
• Overall issuing
revenues (including
card fees and
interests) are
expected to decline
of 24%* according
to our estimation
• Applying these
effects to estimate
revenue pool from
MIF reduction at
the national level
resulted in
approximately
€200Mln
Regulation impact on Issuing revenue pool
Revenue pool from MIF,
Pool of Italian banks, Base 100
Card schemes
considered:
-5.1 (-43%)
-48.0 (-55%)
Revenue pool
reduction
Credit
Debit
To-be post-regulatory
implementation
46,9
40,0
6,8
2013
100,0
88,0
12,0
-53.1 (-53%)
* The MIF share on total Issuing revenues is 45% according to Value Partners benchmark study
The speed of the impacts on
VISA volumes will depend on
the adoption of CBA
initiative by acquiring banks
(see attachment for details)
• EU commission
regulation that will the
MIFs caps to 30bps for
credit and 20bps for
debit cards for VISA and
MasterCard consumer
cards transactions is
expected to heavily
impacts on the
profitability of the
Issuing business of the
bank
Estimation on italian issuing market
15. UKNE-PracticeDoc-150116-14
14
The ability to recover the profitability of the issuing business
will depend on the business model in place ...
Issuing
management
model Description
• The bank has commercial relationship with clients and is the issuer of
the card with all connected liabilities
• In proprietary management model the bank tends to manage entire
Value Chain in-house, ...
• ... still some parts of Value Chain could be outsourced to third-party
provider (e.g. processing, customer care, ...)
• All the revenues are of the bank and costs are prevalently actively
managed
• The bank has commercial relationship with clients and is the issuer of
the card (the cards are issued under bank’s brand)
• Value Chain is managed by third party that offers to the bank white
labelling outsourcing
• The bank has the ability to define the product and connected services
with the consequent cost structure
Source: Value Partners benchmark data and analysis
Issuing management models and relative ability to act on revenues and costs
• As shown before the
revenue from issuing have
a certain effect of declining
in the long-term
• The impacts on net
profitability of the business
will mainly depend on:
- The ability to react on the
cost side of the business
–driven also by the cost
management model
- Possibility of new
strategies on revenue
side in order to replenish
the losses
22
Ability to act on ...
Revenues Costs
In-house
Player
example:
Hybrid
Player
example:
Outsourced
Player
example:
• The bank has commercial relationship with clients, but is not the issuer
of the card
• Entire Value Chain is managed by third party with the cards having its
branding (e.g. CartaSi) and limited control of the product offered and
the underling costs
• The bank receives a rebate on the revenues per card agreed in the
outsourcing model
Issuing / 4-party
16. UKNE-PracticeDoc-150116-15
15
... with more room for action on the revenue side where
banks will be looking for alternative strategies
22
Description
•The banks will
face a
decrease in
revenues,
while having a
rigid cost
structure that
will put at risk
issuing bank’s
profitability
•To face the
issue banks
will take the
actions on the
revenue side
Increase card
fees
Card offer
restructuring
Commercial
Partnerships
Additional
services
offering
•The banks will be actively looking for additional revenue
streams in the card business, also through establishing
commercial partnerships with other players not impacted by
regulation
•Banks will sell additional card services (e.g. travel insurance,
...) in order to increase the revenue stream from card business
•On consumer side it will mean less free basic services and
expensive additional services (for 4-party schemes cards)
•Banks will try to strip the services in the basic cards linked to
current accounts in order to keep low the maintenance cost of
the card
•Banks will be less eager to engage in loyalty programs on
their cards (if not offered for free by loyalty program)
•Most of the banks are assumed to increase the card fees
transferring the loss of revenues to the customers
Strategy
Issuing / 4-party
17. UKNE-PracticeDoc-150116-16
16
The 4-party card schemes, including Amex GNS, will be
impacted by the new regulation
33
Due to impacts from regulation ... ... core strategic initiatives
4-party schemes
•Many of the initiatives of Payment
Package (Payment services
Directive 2 and MIF regulation) will
have only indirect and potentially
uncertain effects
•Some initiatives regard directly 4-
party card schemes and will (if
validated in final version) produce
concrete operational impacts (e.g.
separation of card schemes and
processing, surcharges prohibition,
...)
•No matter how the regulatory
environment changes, some core
strategic initiatives will remain
among main priorities for 4-party
card schemes
Card-
holder
Mer-
chant
Issuer Acquirer
1
2 separate
entities?
2
• If legal or organizational separation is required,
4 party Card Scheme Provider will have to face
some new challenges as a:
- New organization and separate accounting
systems, necessary to continue providing
services in the short run
- Separate legal entities, management and
decision making ability, necessary to set up
to guarantee services in the long-run
- Potential increase in operating costs in the
nearest future
• 4-party schemes will look to
further drive customers from
cash to electronic payments,
through:
- Investing in technology and
enhanced security standards
(also to justify the potential
increase in card fees that
banks might apply)
- Expand in the geographies
with still high share of cash
usage
- Innovate and bring new
products and services
(cardless payments, e-
commerce security, ...)
- Increase pricing
transparency towards
merchants to further push the
levels of acceptance
- Build new partnerships (e.g.
Apple pay)
AmEx cards on GNS
Card schemes
(4-party)
GNS
18. UKNE-PracticeDoc-150116-17
17
For AmEx (3 party card scheme) the impacts will be
indirect and will produce double effect: decrease of
revenues from MSC and potential gain in market share
44
• In case of American Express it
would be directly impacted only* by
initiative of permitting surcharge for
3-party schemes, while forbidding
the same for 4-party schemes
• The most relevant impact will
derive from indirect effects of MIF
lowering
•After MIF lowering the general
decrease of MSC is expected and
consequently merchants will
require lower prices to all operators
of card payments eco-system
•Several European countries have
already adjusted domestic MIF
levels closer to the levels of the new
MIF levels (e.g. Poland, Germany,
Hungary, ...) anticipating the above
mentioned effects
... on
average
MSC
... on
market
share
Expected indirect impacts* from MIF reduction ...
• Similar situation was verified in Australia, where
average MIF was reduced from 0.95 p.p. to 0.55 p.p
(42% reduction)
• As a consequence of this intervention AmEx has lost 41
bps in the 4 years to follow (aprox. 10 bps per year)
• Comparing to Italian market where the average
reduction of MIF** is expected to exceed 50% ...
• ... the expected annual margin reduction would be
around 10-15 bps per year (with a total impact on
marginality in 3 years of 30-45 bps)
• Given the lower cost for merchants to accept AmEx
cards there will be consequent benefits in terms of
acceptance
• On the other hand, banks will increase card fees, making
AmEx cards gaining competitiveness in terms of
pricing
• Given higher AmEx products marginality it will be
easier to establish partnerships with banks
• These factors will permit to boost the development of
the infrastructure and gain market share
Total
effect
++
==
• The net effect is uncertain and will depend on how
much market share AmEx will manage to gain
* Global Network Services (GNS) business is not considered in this assessment; ** Estimated on effective MIF revenue received by pool of major Italian issuers
Source: Reserve bank of Australia, industry reports,
Value Partners internal benchmark data and analysis
19. UKNE-PracticeDoc-150116-18
18
The merchants will certainly benefit from lower prices
and more transparency, while the customers will have an
uncertain impact
Impacts description
55
Cardholder
Merchant • Merchants will have a positive effect that will be driven mainly by Large
merchants that are more aware of regulation and have higher bargaining
power, demanding single counterpart for global servicing, more transparency and
lower prices
• In fact, not only will merchant see MSC reduction, but a series of other initiatives
will give merchants more transparency on the pricing from the banks ...
• ... and more rights to influence customer’s behaviour in order to lower their
price of acceptance
Overall impact
Positive
Positive
++
==
Negative
Uncertain
•The customers impact will significantly depend on the actions taken by the
issuing banks, that most likely are going to be negative for customers (card fee
increase, advanced services payable, ...)
•This will be contrasted by the general increase of acceptance due to lower
price to merchants and more rights
•The overall effect is uncertain
20. UKNE-PracticeDoc-150116-19
19
In a nutshell…
• The use of non-cash transactions has constantly increased during the last years, with Europe still
having larger room for cash substitution
• With regards to card usage Europe has shown the slowest growth compared to other geographies
and has the lowest share compared to other geographies
• European regulators have launched a series new requirements to push card payments through two
key initiatives impacting Multilateral Interchange Fee:
- Cross-border acquiring lower interchange fees
- MIF reduction for consumer debit and credit transactions
• The first initiative creates a new European competitive framework for cross-border acquirers and
forces relevant acquirers to become cross-border, as not doing so would result in potential loss of
large clients and lack of competitiveness, with a growing number of players looking to establish
dedicated to Acquiring Partnerships with specialized players (e.g Global Payment, First Data, )
• In the long-term there will be a significant reduction in the revenue pool on the Issuing side with
banks that will implement alternative strategies to replenish the losses, including also thinking to
new partnership with the Card Schemes less impacted by the new regulation
• The new regulation will impact mainly the 4 Party Card Schemes from an operative point of view,
while 3 Party Card Schemes will be impacted mostly indirectly
• The merchants will be the winning players in this game due to lower prices and higher
transparency, while the effects on card users are uncertain