Colin Canny’s Post

The Payments Industry thrives on the seamless collaboration of its key players. But first, who are these players and what do they do? 1️⃣ Payment Gateways: They act as bridges between merchants and financial institutions, facilitating secure transactions. 2️⃣ Acquiring Banks: They process payments on behalf of merchants, ensuring funds are transferred securely. 3️⃣ Payment Service Providers: They offer a range of payment solutions, facilitating transactions for both businesses and consumers. 4️⃣ Issuing Banks: They provide credit or debit cards to consumers, enabling them to make purchases. 5️⃣ Card Brands/Networks: They manage the networks connecting issuing and acquiring banks, overseeing transaction processes. These essential players drive development and innovation. Without their collaborative efforts, the landscape of seamless transactions in the Payments Industry wouldn't be as advanced as it is today.

I strongly believe Trustly's acquisition of SlimPay is strategically an important move. This isn't the first of its kind; GoCardless had already acquired Nordigen back in 2022 with a similar objective. What's intriguing is the reversal of the acquisition dynamics. Two years ago, a direct debit provider acquired a smaller Open Banking provider; now, it's a well-established Account-to-Account player acquiring a direct debit specialist. Both GoCardless and Trustly seem to recognize that despite the buzz around VRP, recurring payments won't undergo an overnight revolution. A2A recurring payments, like Direct Debit, have been stalwarts for decades, used daily for settling energy bills, phone bills, gym subscriptions, and more. Direct Debit isn't flawless, but Open Banking can potentially address its main weaknesses tied to mandate creation and first initial payment. While there's still a fraud risk linked to chargebacks on recurring payments (more so in SEPA than in BACS), it's often associated with the type of business and merchant opting for Direct Debit. Not every subscription is ideal for Direct Debit. PSD2 provides a fantastic opportunity for large Direct Debit merchants to tackle two significant challenges: 1. How to prevent the creation of invalid mandates 2. How to process the first payment immediately AIS and PIS can potentially resolve both issues by verifying the payer's identity, auto-populating the mandate, and processing the first transaction on instant payments rails such as FPS or SEPA Inst SCT. Undoubtedly, OB bank authentication might add friction to the customer journey, potentially resulting in a drop in conversions. Yet, this should ultimately enhance predictability regarding how many customers who created a mandate will become actual customers. Mixing A2A payments with Direct Debit isn't a novelty introduced by PSD2. In the Netherlands, merchants already used to collect the first payment and set up the DD mandate via IDEAL, processing subsequent recurring transactions via SEPA DD. Whether this practice complied with SEPA rules remains a mystery, but the Dutch were content with it. GoCardless and SlimPay cover multiple Direct Debit schemes. It'll be interesting to observe if domestic open banking systems can be seamlessly integrated with these more legacy Direct Debit local schemes. There's been significant chatter about VRP (mostly limited to the UK). What if, in the end, all we need to do is upgrade our reliable old Direct Debit? #payments #openbanking #subscriptions #fintech

#BEECommunitySpotlight: Singapore-based open finance technology leader Brankas innovates the fintech ecosystem, creating a customer-focused digital experience that sets them apart. Aiming to improve financial inclusion, Brankas partners with banks and financial institutions to help improve financial services for all consumers and businesses. Their most recent partnership with NetGlobal Solutions, Inc. (NGSI), integrating Brankas Direct API & Brankas Disburse API into NetGlobal Pay, unlocks a wide range of financial transactions and banking abilities. This is expected to amplify benefits for cooperatives, aspiring digital banks, public utility companies and retail marketplaces, among others. With over 80+ partner integrations across 6 + markets, Brankas can dedicate their resources towards multiple research projects and publishing papers in the global banking technology space. Their most recent paper is the ASEAN Bank Stability Report, the first of its kind makes for an interesting read as it tracks the uptime performance of top banks in the Philippines and Indonesian markets. At BEENEXT, we look forward to newer, better innovations that enhance the global banking tech experience. Read Brankas’ ASEAN Bank Stability Report: https://lnkd.in/ggtFbUmf Todd D Schweitzer | Kenneth Shaw | Dirk Van Quaquebeke #brankas #digitalbanking #onlinebanking #fintech #openfinance #apiintegration #financialmanagement #smbmanagement #asean #report

🌎 Cross-border payments is evolving with digital payments, pay by bank, and more. Numerous acquisitions and partnerships are striving to ease cross-border payments for consumers... Find out how: https://lnkd.in/eFZzXADC

📉 Lloyds Banking Group Ends Agreement with Satago 📉 💼In a surprising move, Lloyds Banking Group has decided to terminate its commercial agreement with UK-based invoice financing fintech, Satago. This partnership, originally announced in March 2022, was set to revolutionize cash management for Lloyds' UK business customers by leveraging Satago's innovative technology to access cash against invoices. As part of the initial agreement, Lloyds invested GBP 5 million in Satago, securing a 20% equity stake. 🕵️♂️ However, according to a statement from TruFin plc cited by FintechFutures, an internal review led Lloyds to prioritize other platforms, leading to the termination of this partnership. TruFin emphasized that despite the termination, Satago will continue to support its existing business customers. Interestingly, Lloyds did not disclose specific reasons for ending the agreement. 🌐In other developments, Satago has been proactive in expanding its partnerships. In April 2024, Satago collaborated with mmob, an API adaptor, to embed its flexible Invoice Finance and Cash Flow solutions into digital platforms of lenders and corporates. This partnership aimed to simplify digitization and integration for customers, reducing potential challenges faced by development teams. 🚀It's clear that while the partnership with Lloyds has ended, Satago continues to innovate and grow, focusing on providing valuable solutions for small and medium-sized enterprises (SMEs). The fintech landscape remains dynamic, and such changes reflect the ever-evolving priorities and strategies within the industry. #Fintech #LloydsBankingGroup #Satago #InvoiceFinancing #BusinessFinance #FinancialInnovation #DigitalTransformation #Partnerships #BusinessGrowth https://lnkd.in/d8p-3wvg

Merchant Account vs. Payment Gateway: The Yin and Yang of Payments Imagine your business as a bustling marketplace. The merchant account is your cash register, where the profits accumulate. The payment gateway is the bridge connecting buyers and sellers, ensuring smooth transactions. Both are essential for a thriving marketplace, but together, they form a powerful duo. Paymentsclarity.com offers a seamless blend of merchant accounts and payment gateways, tailored to your business needs. Let's demystify payments together! #BusinessGrowth #FinancialEfficiency #Payments #Fintech #Paymentsclarity #highriskbusinesses #Fintech

Yonder, the modern rewards credit card, has extended its relationship with GoCardless, the bank payment company, by adding Variable Recurring Payments (VRPs) alongside the Direct Debit functionality it uses already. Read more: https://lnkd.in/diWgvWJS #partnership #payments #fintech #finance #FinancialIT

Optimise Payments, Elevate Results - Your Trusted Partner Awaits! 🚀 Your journey to streamlined payments begins here! Axcess Merchant Services is on a mission to be the trusted partner for financial companies looking to enhance their payment infrastructure. Our commitment is to provide tailored solutions that align with your business goals. With a focus on innovation and a deep understanding of the dynamic payments landscape, we're ready to be your reliable payment ally. Ready to transform the way you handle payments?

Revolutionizing European Business Financing with Viva.com's Merchant Advance Solution ! Viva.com introduces Merchant Advance in Europe to help many businesses with cashflow problems. ⚡️ Instant access to financing for European merchants ( "based on merchant acquiring data") 💡 Transparent capital based on merchant acquiring data. 🌍 Currently available in Belgium, Germany, Netherlands, and Spain. 💰 Flexible automated repayment via a percentage of daily card sales. #DigitalPayments #BusinessFinancing #EuropeanMerchants #Workingcapital #Cashflow #Fintech

Till Payments partners with Velocity Frequent Flyer, offering rewards for merchant services #australianfintech #fintech #fintechnews #finance #technology #financialtechnology #payments #loyalty #rewards