Daily Dash: Mastercard, Worldpay Launch Global Partnership To Tackle Payments Fraud

March 27, 2024
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Worldpay has adopted Mastercard’s Ethoca Alerts system to combat erroneous chargeback attempts, and the UK’s BT Group has partnered with Adyen to launch its own tap-to-pay iPhone app.

Mastercard, Worldpay Launch Global Partnership To Tackle Payments Fraud

Mastercard has announced that Worldpay will launch a new alert system globally to help merchants resolve disputed transactions and avoid chargebacks.

Under the partnership, Worldpay will rollout Mastercard’s Ethoca Alerts to its 1m merchants, who collectively process more than $2trn in annual transaction volume.

Ethoca Alerts works across all payment brands, delivers insights that merchants can use to stop the fulfilment of goods and services, and requires no additional hardware.

In 2022-23, Ethoca Alerts enabled the prevention of $1.6bn in fraud due to chargebacks, Mastercard said.

Mastercard also said the partnership is timely given that chargebacks are growing. By 2026, the volume of chargebacks globally is expected to reach 337m, which would be a 42 percent increase from 2023 levels.

“With e-commerce thriving, we’re working to make transactions as safe and as seamless as possible for all parties,” said Johan Gerber, EVP of cyber and intelligence at Mastercard.

BT Partners With Adyen To Launch Tap To Pay On iPhone

Etc., the incubation arm of British telco BT Group, has launched a new app that allows merchants to accept contactless payments via iPhone, with no additional hardware needed.

The BT Tap to Pay app uses the EE network to connect with Adyen’s merchant acquiring technology and is now available to download via the App Store.

Marketed towards small businesses, mobile workers and sole traders, merchants who want to use BT Tap to Pay must set up a BT or EE account to complete a KYC check.

Once set up, the app includes built-in security and privacy features, the ability to view payments history at a glance and a simplified refund process.

“This innovation has simplified in-person payments and removed the dependence small businesses have faced with payment hardware,” Nicole Olbe, UK managing director at Adyen.

Big Tech Under Pressure As EU Opens First DMA Investigations

The European Commission has opened its first non-compliance investigations under the Digital Markets Act (DMA), alleging anti-competitive behaviour across several big tech platforms.

Alphabet's rules on steering in Google Play and self-preferencing on Google Search will come under scrutiny, as will Apple's rules on steering in the App Store, its choice screen for Safari, and Meta's “pay or consent model”.

In addition, the commission has launched investigatory steps relating to Apple's new fee structure for alternative app stores and Amazon's ranking practices on its marketplace. 

The regulator has also ordered the so-called “gatekeeper” firms to retain certain documents to monitor the effective implementation and compliance with their obligations.

"The Digital Markets Act became applicable on 7 March. We have been in discussions with gatekeepers for months to help them adapt, and we can already see changes happening on the market," said Thierry Breton, the commission's internal market chief. 

Trustly To Power Cardless International Transfers For MoneyGram Users

Trustly, a Swedish open banking platform, has announced that it has partnered with MoneyGram International to deliver cardless cross-border transfers to users across Europe.

When sending international transfers through MoneyGram Online, customers now have the option to pay directly by bank account.

The service is powered by Trustly’s open banking platform and allows MoneyGram Online users to avoid entering card details on the app or website. It also allows MoneyGram to save on card fees.

The partnership is already live in multiple European countries and was extended to the UK and Germany within the last month. 

Trustly said its proprietary data engine, Azura, offers modern pay-by-bank infrastructure, near-instant payments and “best-in-class” know your customer (KYC).

In addition to MoneyGram, Trustly’s other major partners include Dell, T-Mobile and Lyft.

UK Government Sets Out Next Phase Of New Regulatory Framework

HM Treasury has published an update on the next “Building a Smarter Financial Services Regulatory Framework” phase.

This policy paper sets out the next phase of delivering a Smarter Regulatory Framework for the UK by replacing assimilated law on financial services. 

The paper, among other things, gives an overview of the programme's progress and states that the UK government continues to review assimilated law repealed by the Financial Services and Markets Act (FSMA) 2023. 

The next tranche of the programme, Tranche 3, will include continuing with Payment Services and E-Money Directives reform. 

This follows on from the Payment Services Regulations call for evidence and review conducted in 2023, the Future of Payments Review report conducted by Joe Garner in 2023, and the government’s forthcoming National Payments Vision.

Nationwide Offers To Buy Virgin Money

Nationwide Building Society has formally agreed to a deal worth £2.9bn to buy Virgin Money. 

“The Board believes the acquisition offers compelling benefits for Nationwide’s current and future members,” said Kevin Parry, Nationwide’s chair. 

Parry has told building society members that this acquisition will strengthen Nationwide financially and presents an opportunity to accelerate its strategy. 

“It delivers greater value for our members and broadens the range of services we offer to include those that many members have requested.”

Among the benefits of the acquisition, Parry pointed out that Nationwide is acquiring a strong personal lending business and credit card range, and a larger branch network. 

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