PCM Volume 4 - Issue 4: Money 2020 Special Edition by PCN Magazine

Vol 4 | Issue 4 June 2018 YOUR GATEWAY TO THE WORLD OF PAYMENTS

All attending companies of Money2020 EU 2018

IAL EDIT

Otto Group Digital Solutions THOUGHT LEADER

Risk Ident Wirex

EXPERT INTERVIEW

STARTUP SPOTLIGHT I O

Learn about the latest developments on GDPR, Mobile Banking, PSD2, Risk & Fraud, Cryptocurrency & more!

Highlighted articles:

IO CI AL EDIT

PCM | MONEY2020 SPECIAL EDITION

Contents 02 PSD2 and GPDR – customer consent is (the) key Jessie Randhawa EDITOR

jessie@teampcn.com

04 Supporting a new age of customer centricity 06 Bringing innovation to payments 08 Dutch Payments Association fosters reliable payment system 10 How can online businesses safeguard customers against ID theft? 12 Money 2020 company overview

Jelmer Rotteveel M ARKE TING AND BUSI NE SS D EV E LOPME NT MAN AG E R

jelmer@teampcn.com PCM is designed by Payments & Cards Network. Art and photos © Payments & Cards Network, picjumbo.com, Flickr.com and Shutterstock.com, excluding advertisments and company logos. PCM™ is property of Payments & Cards Network, Keizersgracht 477, Amsterdam, The Netherlands. All material coantained within PCM is the property of Payments & Cards Network. All other product and service names may be trademarks of their respective companies. ©2017 Payments & Cards Network. All rights reserved. Reproduction of any kind is strictly prohibited without express prior written consent of Payments & Cards Network. ADVERTISING INFORMATION For details, please contact jessie@teampcn.com

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THOUGHT LEADER

PSD2 and GPDR – customer consent is (the) key BY PAU L W EISS, CON SULTI N G P RAC T IC E & F IN A N C IA L S ER V IC ES AT AC C EN TU RE

018 will undoubtedly prove to be an impactful year for financial services. Two major EU regulations of great importance to banks will come into force in the first half of 2018. While the PSD2 is all about making the data of individuals available to third parties, the GDPR is all about keeping this data private. Surprisingly little has been said in the regulations about their seemingly conflicting coexistence.

A closer look at the regulatory landscape On the one hand, the potential penalties are huge for an institution if it fails to comply with data breach notification under the GDPR – up to EUR 20 million, or 4% of global turnover. Being a regulation, GDPR is directly applicable within all member states of the EU. On the other hand, PSD2 is a Directive, so penalties are up to the member states to define, therefore there might not even be fines for non-compliance. In preparing for PSD2, banks should take the GDPR guidelines at heart, applying the most rigid possible interpretation. In turn, this would limit the TPPs’ access to data and lead to strict interpretations of consent. It would also slow down the open banking movement and reduce the effectiveness of regulators’ efforts to increase innovation and competition in the payments market. Banks should ensure a common framework for an aligned and coordinated approach by taking into account the requirements of both GDPR and PSD2. Consent – common concern of PSD2 and GDPR Both GDPR and RTS under PSD2 lack clarity on the form of the required consent. Considering that consent in electronic form is a practical necessity for PSD2, the technical means of providing consent are also lacking (e.g. ticking a box or e-mail confirmation) leaving much of it to interpretation. Secondly, an area of debate in the RTS is data scraping, which is the practice

2 PAYM E N TS & C A R D S

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of third-party providers (Payment Initiation Service Providers and Account Information Service Providers) to access bank accounts on the client’s behalf using the client’s username and password credentials. This practice was prohibited in the European Banking Authority’s final draft RTS. However, the European Commission urged the EBA not to ban data scraping outright but to hold it in reverse, as a back-up mechanism should bank interfaces (APIs) fail to function properly. It is now for the European Commission to make the final decision on the text of the RTS.

How to navigate through conflicting regulations Banks and TPPs must create rules and processes for data breaches and build a Data-Safe culture, developing policies regarding better and frequent implementation, training, monitoring and assessment. Secondly, it is important to implement privacy by design, analyse the personal data processing framework in place and review the third-party policies, procedures and contracts.

The technical and operational process for onboarding TPPs will become critical As such, when data scraping is used, because banks must be prepared to take it is very difficult, if not impossible for on an additional financial risk, sharing banks to give access only to consented liability for any breaches. Banks and API data and simultaneously comply with the providers must start to tackle the privacy other protection requirements related to problem from the beginning, ensuring sensitive data. TPPs can obtain consent that TPPs have sound privacy certification for the use of consumer data, or have it and settings during the onboarding covered contractually, but such a bypass process. Banks and API providers must is unnecessary if TPPs utilize dedicated implement due diligence mechanisms interface APIs. Hence, it is unlikely that and processes for onboarding TPPs, banks will be able to know if and what testing APIs and managing incidents. consent has been provided by the customers. Under GDPR, banks are fully Anticipating on (future) TPP requests, responsible for the processing performed privacy design strategies need inclusion. by third parties, and lack of agreement Consent must be a top priority since would not be in compliance with GDPR. sharing customer data without proper Furthermore, banks’ responsibility for this consent is a clear GDPR violation. kind of processing remains unclear in the Consent is one area where effective absence of any contractual agreement. identity management is crucial. Identity This practice, then, goes by definition management is making progress as against the spirit of consumer protection more secure and user-friendly biometrics and controller liabilities embodied in replace clunky username and password GDPR and PSD2. combinations in order to better verify and authenticate individuals. Banks and TPPs TPPs will likely initiate the process of should develop advanced data analytics securing customers’ consent, including to prevent more effectively fraud and consent for their activities and the use false identity representations. of the data once obtained. Banks will ultimately remain responsible for Conclusion confirming the consent directly with their customers. This will probably include Banks hold a monopoly over their confirming details such as the identity customer’s data but – under PSD2 – TPPs of the TPP, what data customers wish to will now be able to retrieve customer share and how frequently, and when account information and make payments such consent will expire. Such a two-way on their behalf. route – obtaining and confirming consent – has the potential to provide greater Further guidance is urgently needed from protection to TPPs, banks and customers, both EU and national regulators on how compared to banks relying solely on the banks can reconcile the requirements consent provided by the TPPs. under PSD2 and GDPR.

Paul Weiss C O N S U LT IN G PRAC T IC E & F IN A N C IA L S E RV IC E S

Paul Weiss works within Accenture’s Consulting Practice, Financial Services, based out of the Netherlands. Paul has worked with multinationals to define their business and technology strategy and then playing a role executing and delivering against that strategy.

Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Accenture has extensive experience in payments, Everyday Banking, open APIs and digital banking strategies – and can help organizations navigate the optimal route along this journey.

PCM | MONEY2020 SPECIAL EDITION 3

THOUGHT LEADER

Supporting a new age of customer centricity BY CL AU DE BRUN, CHAI R MAN AT N EXO STA N DA RD S

redit card, debit card, smar tphone, wearable, cr yptocurrency and of course, not forget ting good old cash, today there are more payment options than ever before that are providing consumers with a user friendly and efficient way to pay for goods and services. While these advances in payment technologies have brought widespread benefits, the growing myriad of payment devices, constant new regulations and increasing globalisation, is proving a headache for payment stakeholders who are struggling to navigate their way through this fragmented global ecosystem.

A resulting factor of the growing diversity of payment options means that consumers are becoming increasingly empowered and influential in how, where and when payment transactions are made. This is a move that has not gone unnoticed by merchants. Today, many merchants large and small, operating in both the physical and digital worlds, are striving to respond to these changing demands quickly to ensure they remain current and competitive in a fierce market. But it’s not just the merchants that are having to rethink their business models in response to the evolving payment landscape…

for the vendors, it’s the merchants and acquirers. The list goes on with acceptors, processors and ISO’s... So, with such a fragmented payments ecosystem, the question is, how can each stakeholder continue to deliver cost effective and efficient services to their customers? The answer? Standards. As they have done across other industries such as telecoms, standards can go a long way to overcoming some of the challenges that payment stakeholders currently face. Global payment acceptance standards have the potential to enable all industry players (regardless of where in the payment value chain they sit) to adopt a customer-centric approach for their business.

Customer is king

Nexo Standards is one such association focused on supporting this customercentric approach. The association exists to remove the barriers present in today’s disjointed global card acceptance world. It works with its members to standardise the exchange of payment acceptance data between stakeholders. It does this by developing and maintaining specifications and messaging protocols, which adhere to ISO 20022, are universally applicable and are freely available globally.

For all stakeholder groups operating within the payment acceptance space, customer is king. For the acquirers, their focus is the merchants; for the schemes, it’s the acquirers, merchants and issuers;

The adoption of international standards, such as those created by nexo Standards, can facilitate the creation of a purely harmonised and interoperable ecosystem, enable payment stakeholders to easily

PAYM E N TS & C A R D S N E T W O R K

expand into new global territories, and perhaps most importantly, allow them to put their customer at the centre of their business strategy. Here we will take a look at how standards can provide a common baseline that can support payment stakeholders in their mission to deliver competitive, cost effective and efficient services to their customers in today’s global economy. Enabling merchants to provide a consistent user experience For merchants operating across multiple territories, it is crucial that they can deliver an internationally consistent user payment experience to consumers. nexo’s protocols and specifications enable merchants to deliver a standardised experience at the point of interaction

between multiple payment types, and allow for simple parameterisation of payment services for individual countries, thereby ensuring that ser vices are communicated to consumers in their native language.

Avoiding vendor lock-in

International standards provide vendors with a great opportunity to differentiate themselves from their competitors. Today, merchants and acquirers want a vendor partner that Supporting acquirers to deliver can support their needs on a global better deals for merchants scale, provide a solution that can be easily scaled up and down, expand The creation of a centralised, quickly and easily into new regions, standards-based acquiring function and support migration to new solutions will allow acquirers to deliver with minimal impact on their business consolidated processing requests model. For vendors, being able to from merchant customers operating provide a common, interoperable in both the physical and digital solution that meets these needs worlds. Not only will this result in provides them with a much stronger time saving efficiencies, but the value proposition for their merchant increased transaction volumes will and acquirer customers, who in turn enable the acquirers to strike bigger are presented with increased and per-transaction cost reduction deals stronger options for building global that offer better value for merchants. partnerships. A nexo-compliant industry enables merchants to avoid vendor lock-in and promotes a ‘level playing field’ for payment acceptance vendors to compete on equal terms. This also supports a ‘worry free’ multi-vendor environment for retailers thanks to ISO international standards support. Facilitating payment schemes to support innovative new services

Claude Brun C H A IRM A N

Mr Claude Brun currently serves as Chairman of the Board at nexo Standards. Within this role he is responsible for driving the nexo mission and vision to enable interoperability in global payment acceptance. Prior to joining nexo Standards, Mr Brun served as Managing Director at Crédit Mutuel for 22 years where he oversaw the development of software, launched a number of successful card projects and developed the Crédit Mutuel National Center for better means of authorization, switching and clearing.

Nexo Standards Nexo is an open, global association dedicated to removing the barriers present in today’s fragmented global card payment acceptance ecosystem. nexo designs and develops card payment messages based on ISO 20022. The delivery of universal standard and protocols messages ensure the interoperability of different equipment and payment systems, internationally.

As the nexo protocols ensure that all compliant systems speak the same language of interoperability, the rollout and maintenance of these services are fast, efficient and borderless. This enables payment systems to support the development of an interoperable and harmonised ecosystem for their customers. The nexo protocols and specifications are truly international; all nexocompliant payment stakeholders can partner with each other on a domestic and international level, however, these widespread benefits can only become a reality through a collaborative effort between all payment industry stakeholders.

PCM | MONEY2020 SPECIAL EDITION

THOUGHT LEADER

SI Payment, a French Fintech company with more than 14 years of experience, manages all current and future payments, and brings expertise and innovation in the area of electronic money and payments.

popular payment habit (everyone in Europe has cash which is not the case for any other payment method). We are the only Payment institution effectively covering truly 100% of the payment methods used in Europe.

360 Payments Player

White Label Digital Wallet

TSI is focusing on tackling the three main issues commercial entities addressing the B2C market are facing: being paid efficiently, optimizing loyalty while including efficient cross channel experience when applicable, facilitating business development strategy by

We have also created and is deploying a white label digital wallet. It allows retailers to deploy loyalty stored value account, optimizing and for some entities digitalizing the loyalty programs. A good example of this is TSI deploying Managing real value in accounts rather the cash payment for the largest than loyalty points has been proven to French based e-retailer, Cdiscount (part the Casino Group), with online sales of more than €3 billion a year. Cdiscount has validated the use of this payment method as adding more clients, increasing revenues.

Bringing innovation to payments

acquiring more clients and developing their business through marketplaces. Offering this comprehensive set of solutions and allowing key mutualisation between these services is in effect offering a unique point of contact. Very rarely can large retailers Marketing, IT, and Finance departments rely on the same solution provider to optimize and solve cross functional challenges which among others, by operational existence and opportunity, are payments.

TSI is looking, like all current players, on how to harness the benefits of enabling a shared distributed, compliant and BY ERWA N N BRUYE LLE , CEO AT TSI PAYM EN T efficient optimization of payments through blockchain technology. TSI is also already using AI technology to optimize payment acceptance monetizing their brand/platform and be much more effective. Additionally, performance while reducing fraud on adding a vendor/partner ecosystems retailers can then directly monetize 1 API and is extending this technology or more commonly called creating a their client base without letting their to another 4 APIs this year. marketplace. As a 360 payments player, clients buying behaviour being taken TSI helps companies to solve those issues by branded wallet based payment Through our recent restructuring by covering the three main payments methods. and new era of fast development areas: payments services, electronic through the new brand Transaction money and third party payment Third Party Payment Flow Services International, has always (marketplace). been at the forefront of payment Finally, TSI is licensed to manage third innovation. We have been issuing, YesByCash party payment flows and as such can distributing, redeeming and acquiring easily manage flows between any given a cryptography secured electronic TSI offers all standards payment methods operator and its ecosystem of vendors money since 2003 through its Ticket in a “full service” approach from and partners. All large retailers require a Premium pre-paid voucher payment UX-processing to acquiring. This includes strong marketplace based development method and is investing significantly in card payments, Paypal, SEPA-wire strategy and as such needs agile and additional innovative features in these transfer based payments but also a key efficient payment institution to manages technologies. new payment method which TSI was first payment flows. to offer as early as 2013: cash payments TSI is addressing the European market for e-commerce called YesByCash. Why TSI Are Different with established relationships with This is a very significative and exciting leading companies. The next big opportunity for all e-commerce and cross TSI is saving time and costs to any challenges for the +50 employees are to channel retailers which can, through this entity facing the common following deploy the TSI products across Europe, service, add a significant amount of challenges: being paid, engaging scaling the methods and processes and revenue and allows the use of the most better and further existing clients, maintain the efficiency in growth. 6

PAYM E N TS & C A R D S N E T W O R K

Erwann Bruyelle CEO

After 10 years of working experience in the field of IT (IBM Global Services) & payments (Paypal, Be2Bill) and after several positions in management (sales/ products/strategies), Erwann Bruyelle, from a training of general engineer, takes the lead of TSI in 2016

Quick Facts

Founding Year: 2003, new positioning in 2016

Headquarters: Paris Clients: Cdiscount, Bouygues Telecom... Management: Erwann Bruyelle

Key Figures

TSI Payment TSI Payment is one of the very first French FinTechs with more than 14 years of experience and innovation in the field of payments and electronic money. Today, TSI's innovative payment methods are available in more than 150,000 points of sale in Europe and are accepted at more than 400 clients in industries that require the means to pay, to be paid and to transfer value between multiple tiers.

50 employees 500M â&#x201A;Ź payments volume processed in 2017 400+ clients 1,5M B2C users Connected to 150,000 points of sales PCM | MONEY2020 SPECIAL EDITION

THOUGHT LEADER

Dutch Payments Association fosters reliable payment system BY G IJS B O UDE WIJN, DEP UT Y GEN ER A L M A N AGER AT D U TCH PAYM EN TS ASSOC I AT I O N

he Dutch Payments Association is an independent members organisation, which is financed by the supply side of the payments industry: credit institutions, payment institutions and electronic money institutions. In this sense of collaboration The Netherlands is leading the pack, and that’s what the Dutch Payments Association is trying to preserve.

is to guide these industry players while The members work under the direction preserving the safety, reliability and of the Payments Association to simplify efficiency in the payments environment. and improve the Switching Service and, in consultation with stakeholders, smarter Social responsibility alternatives to the paper Acceptgiro a re being developed. Thanks to a collective awareness of social responsibility the security, The importance of independent control reliability and efficiency in the payment over the complex payment chains is system can keep pace with the growing increasing due to the rapid technological dynamics and digitization in the developments and increasing diversity Its neutrality is guaranteed in governance: payments industry. The Dutch Payments of providers. The Payments Association there are three independent board Association is committed to promoting would like to open itself up to new service members – including the chairman – and the social responsibility of both the providers, whether they would be a various stakeholder platforms. Through new challengers and the established member or a stakeholder. A dozen nonthese platforms, users – both consumers providers, for example for the privacy banking ‘fintech’ payment institutions and companies – are informed about of their customers and for the security are already members of the association. relevant developments, where they can of personal data and transaction data. These fintechs can also support the discuss any bottlenecks and suggestions Dutch Payments Association in correctly on how to move forward. In 2017, the Payments Association interpreting and applying responsible provided information about secure new European laws and regulations such More dynamics electronic payment and banking, as PSD2 and the General Data Protection provided real-time insights into the Regulation. As a result of changing customer needs availability of internet banking and such as the rise of millennials and instant mobile banking, and monitored the More security, less fraud payments, digitization (fintech), new distance between ATM’s and the public. channels, changing technology and Banks and payment institutions are new laws and regulations such as PSD2 With Instant Payments, the wishes of constantly investing in tightening the and, more recently GDPR, an enormous bank customers to have access to the monitoring and detection of fraudulent dynamic has emerged in the payment balances of payments even faster, transactions. Combating fraud is market in recent years. Existing players even at night, on weekends and are in digital transformation and new on holidays, are fulfilled. The players are joining, often to niches in the planned introduction of these market or exclusively via digital channels. fast payments in 2019 is on This has resulted in more competition schedule. and ultimately results in more innovation, something that the Payments Association The Dutch government will heartly welcomes. shortly introduce the revised European directive for payment Existing payment service providers usually services (PSD2), just as some tend to have a long and reputed history, other EU member states have and usually are well aware of their social already done. PSD2 also responsibility. With new players joining gives new non-bank providers the industry, this is something not always access to payment accounts the case as fast innovation might drive to of bank customers, to promote less safety, reliability and efficiency. The innovation and competition in goal of the Dutch Payments Association the payments environment. 8

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therefore one of the most important tasks of the Payments Association. In doing so, as much information, knowledge and experience about fraud methods is exchanged throughout the sector. The Netherlands is at the forefront of this collaboration internationally, not only between the providers themselves but also with government bodies such as the National Cyber S ecurity Center, the police and the judiciary. As a result, the Netherlands is relatively successful in combating fraud, which translates into low fraud figures. According to De Nederlandsche Bank (the Dutch National Bank), total domestic payment traffic rose to more than 6.5 trillion euros in 2017, of more than 5 trillion euros in 2016. As a result, the proportion of fraudulent transactions fell to less than 0.0002 percent of the total payment volume, despite the increase of the total damage by a quarter compared to 2016.

Internet banking fraud rose by 392,000 euros in 2017 to 1.2 million euros. Of these, 96.7% were reimbursed by the banks to the victims. The fraud with internet banking seems to have increased mainly due to more credible phishing e-mails. From a historical perspective, however, the damage remains at a low level. In 2011, the damage resulting from fraud with internet banking still amounted to more than 35 million euros! In 2017, more fraud was also committed with direct debits and forged transfer forms. Those two claims amounted to almost 1.3 million euros. By tightening the checks by banks, the fraud with direct debits was reduced considerably in the second half of the year. Moreover, close cooperation with the police at the end of 2017 led to the arrest of six people who were involved in theft and falsification of transfer forms.

Relatively new ways of paying and banking have remained fraud free in the past year, despite the greatly increased The damage caused by fraud use of these means of payment. In 2017, in Dutch payments was 12.9 no cases of contactless pickpocketing with million euros in 2017, which contactless payment cards were reported, was an increase of 2.7 million just as in previous years. Nor was last year euros compared to the reported damage of fraud with apps for previous year. This meant that mobile banking. However, banks and the decline of the fraud that payment institutions remain vigilant for had occurred for years had new forms of fraud with these electronic come to an end. The biggest means of payment, and the Dutch damage, 3.5 million euros, Payments Association will do everything was caused by fraud with to preserve the safety, reliability and stolen or lost debit cards. efficiency for these payments.

Gijs Boudewijn D E PU T Y GE N E RA L M A N AG ER

Gijs Boudewijn is Deputy General Manager at the Dutch Payments Association. He also holds the Chair of the Legal Support Group of the European Payments Council and the Chair of the Payment Systems Committee of the European Banking Federation. Gijs Boudewijn has extensive experience in domestic and international payments issues.

Dutch Payments Association The Dutch Payments Association ensures a secure, reliable, accessible and efficient Dutch payment system, in coöperation with its members and stakeholders. Its members are providers of payment services: banks and payment institutions. Other stakeholders, representing both consumers and businesses, are actively involved in the activities of the association.

PCM | MONEY2020 SPECIAL EDITION

EXPERT INTERVIEW

How can online businesses safeguard customers against ID theft? BY R O B ER TO VALE RIO, FOUN DER & C EO AT RI SK I D EN T

Robert Valerio, CEO of anti-fraud software specialist, RISK IDENT, explores the major fraud threats facing online businesses in 2018, and explains how they can be overcome.

riminals are constantly people committing fraud. There are now updating and evolving the three general categories of fraudsters methods they use to commit within eCommerce and telecoms that identity fraud. While serious businesses must distinguish between: steps have been taken by authorities and businesses across Europe to tackle the • Petty criminals: These have long problem and safeguard consumers, the been a fixture in ID theft. They use stolen credentials and payment information to threat remains significant. obtain goods that are then resold on As the frequency of fraud increases, so eBay or other online auction sites. does consumer awareness of the issue – thanks to headlines in the press and • Individuals with a bad credit on TV. With this in mind, it is clear that history or no money: A new category, if a business fails to adequately protect these people want to buy a premium consumer data, they don’t just stand to product that they cannot afford; leather lose short-term revenue, they risk their jackets, handbags, electronics, Apple products, so will take advantage of any brand reputation over the long term. access to other people’s payment details. At RISK IDENT, we are dedicated to monitoring all the latest tactics used • Organized criminals: These people by fraudsters as they try to circumvent do it for a living, using their proceeds to the law. Cases of identity theft reached finance other high-margin crimes, such an all-time high in 2017, with almost as selling drugs or even weapons. 175,000 incidents reported, many of which led directly to account takeovers The intentions of criminals in each by criminals. This trend shows no sign category can be quite different to each of abating in 2018. Driving this rise is other. The first two are mainly driven the continued growth of mCommerce, by greed and opportunism. The last, with smartphones being targeted more however, is the result of dangerous criminal motives, with a significant and more. impact on wider society. Such criminal The ticketing industry is also attracting gangs can be highly organized and work significant levels of fraud, facilitated by cross-border – which can mean cases are escalated to Europol. bots and related technology. Understanding the fraudsters Alongside the growth in ID theft has been a proliferation in the number and type of 10

PAYM E N TS & C A R D S N E T W O R K

Such cases are very expensive for businesses, with losses totalling many hundreds of thousands of pounds, making it vital that steps are made to prevent them.

Measuring the ID theft threat Once identity data has been stolen, it is all too easy for fraudsters to create new accounts on eCommerce sites and begin ordering merchandise, often to be sold-off at a profit. However, the real danger comes when the fraudster uses the personal information to hijack existing accounts, masquerading as a legitimate user – better known, of course, as “account takeover”. Inadequate password security, such as repeating passwords across accounts, or using simple words like ‘password’, plays a significant role here, but fraudsters can trawl social media and use personal information to break security questions. Fraudsters can also target a victim’s email account, which often acts as the anchor to their entire online life. From there, they can break into multiple accounts across a vast range of online businesses. A consumer’s email account can contain everything from addresses, to birthdays, to saved payment information. These details alone constitute everything

one would need for online fraud. In addition, a genuine account that has been hijacked also offers fraudsters a significant advantage: trustworthiness.

Online businesses typically place much more trust in existing customers with years of good experience behind them, than they do with new customer accounts. Account takeovers, then, give fraudsters perfect cover for committing crime. Spotting hijacked accounts Fraudsters work hard to stay invisible for as long as possible, but it is possible to spot them early and prevent irreparable damage. Signs of an account takeover can range from: • An unusual numbers of failed login attempts • A password change followed by unusual customer behaviour • Purchasing an unusually expensive item or a high volume of goods • Login attempts from different devices and places • Switching to an older browser or operating system.

not only harm immediate revenues, but also damage customer relationships and, consequently, a business’ brand image. Fighting fraud with AI Machine learning technology (ML) has a key role to play in supporting businesses to spot these signs of account takeover. Based on developing computer programs, ML recognizes patterns and regularities in datasets, so it can learn from each transaction and historical data. In this way, it can continually create new models and evolve algorithms that help eCommerce businesses identify cases of fraud so they can take corrective action. Fraudsters can seek to conceal their locations, mask their identities and make their fraudulent transactions look unsuspicious, but ML is well equipped to find patterns, calculate risks and halt illicit activities – in real-time. However, AI on its own is not enough – human fraud managers are indispensable in the process. Domain experts, with years of experience fighting fraud, know their fraud problems best and can never be replaced by a machine. Only by combining the two entities will businesses see the best results. Fraud managers constantly feed their knowledge on the context and causes of fraud into the machine, allowing the system to evolve continually. Ready for the future The joint challenge of ID theft and account takeover is not going to go away any time soon. While it is important for consumers to be vigilant and take steps in ensuring the security of their own data, eCommerce businesses have a key part to play in protecting customers’ data, and in supporting them to safeguard their information.

Roberto Valerio CEO & FOUNDER

Roberto Valerio is the founder and CEO of RISK IDENT, a software development company specializing in fraud prevention and credit risk evaluation based on machine learning. He plays an active role in the fraud prevention community and is a member of the Merchant Risk Council’s European Advisory Board.

Risk Ident Result-driven fraud prevention solutions developed by RISK IDENT protect global e-commerce, telecommunication and financial businesses. Reducing identity theft, account takeovers, payment fraud, and account/loan application fraud on all channels is made simple with cost-effective products that use extensive domain knowledge and machine learning technology tailor made for tier-one enterprises.

Come & meet us at Money 20/20 EU You’ll find us at booth #F122

By talking to fraud experts, online retailers can ensure they have all the tools they However, many of these indicators can need to optimize their security processes, also be innocent customer behaviours. so they can take the right steps to continue With this in mind, online businesses must to protect their customers from the impact be careful of false alarms – false positives of ID fraud. PCM | MONEY2020 SPECIAL EDITION

EXPERT INTERVIEW

01Ventures

Affinion Group

ApPello

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101domain

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Apple

Balderton Capital

10X Investments

agoda.com

Aramis

Baloise Group

11FS

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451 Research

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A&S Team

Aite Group

Arnall Golden Gregory LLP

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Arvato Financial Solutions

Bancontact Company

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AS Citadele banka

Bandwidth Recruitment Ltd

ABIServizi – Italian Banking Assocation

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Ascential

Banian Partners

Alchemy Limited LCC

Ashurst LLP

Bank Leumi

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Asignio, Inc.

Bank of America Merrill Lynch

ABN AMRO

Alfa Capital

ASOS.com

Bank of Canada

Abrantix AG

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Assure Hedge

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Absa

AlixPartners UK LLP

Astarte.ventures

Bank of Ireland

Abu Dhabi Global Market&

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AT Kearney

Bank of Japan

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allohash

Atos

Accenture

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Attra Infotech

BANKART, procesiranje plačilnih instrumentov d.o.o.

ACCEO Solutions Inc.

allpay limited

Attra Solutions Ltd

BankAxept

AcceptEmail

ALMAQABI

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BankBridge

Accertify

Almaviva S.P.A

AU10TIX

Bankgirot

Access-IS

Alogent Solutions

Auchan Retail International

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Accuity

Alpha Grid / Financial Times

Auriemma

BankiFi

ACI Worldwide

Alterna Savings & Alterna Bank

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Bankify Ltd

ACORN OakNorth

Alva

Australian Settlements Limited

Banking Circle

ACPR

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Authenteq

Acsel

Amazon Pay

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Amazon

Avantida NV

ADAPT Centre, Trinity College Dublin

American Express

Aventio MB

Adastra Marketing

Anelik Bank CJSC

AvidXchange, Inc.

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Angel Academe

AWSa

Aderhold Rechtsanwaltsgesellschaft

Angel Broking Pvt. Ltd.

Axis Communications AB

ADERLY INVEST IN LYON AGENCY

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Azimo Limited

Adobe

Anyfin

adorsys GmbH & Co. KG

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Backbase

Aduno Gruppe

ANZ

Advent International

Apax Partners UK Limited

Bahrain Economic Development Board

AdviceRobo

Ape Unit GmbH

Bahrain FinTech Bay

Adyen B.V.

APEXX

Bain & Company

Aera Payment & Identification AS

APG

AEVI

Apiax AG

Bain Capital Private Equity (Europe) LLP

PAYM E N TS & C A R D S N E T W O R K

BANK-now AG Bankservafrica BankVic Bankwest BANORTE Banque Cantonale Vaudoise (BCV) Banque et Caisse d'Epargne de l'Etat, Luxembourg Barclaycard Barclays Baring Vostok Capital Partners Baringa Barnes International Limited Basler Kantonalbank

2018 Attending Companies Every year, Money20/20 attracts the best, boldest and brightest businesses from across payments, FinTech and financial services. From industry institutions to up-and-coming innovators, everyone is here, every time.

BBC Click

Bloomberg

Cambrist

Chainvine

BBPOS Limited

Bloq, Inc.

Canaan Partners

Chapwill Pty Ltd

BBVA

Blueshyft

Capco

Chargebacks911

Be Solutions, d.o.o.

Bluesource – mobile solutions gmbh Blumberg Capital

Cape Innovation & Technology Initiative

Chargepay BV

BEAK BeamUp Payments SA

BMW Technology Corporation

Capgemini

BearingPoint

BNP PARIBAS

Capital One

CHATAK SOFTWARE PRIVATE LIMITED

BEC

BNR Nieuwsradio

Checkout Ltd

BeeEye IT

bobsguide

Capnamic Ventures Management GmbH

BehavioSec

Chetu Inc

Belfius Bank

BofA Merrill Lynch Merchant Services (Europe) Limited

Cardelio LTD CardinalCommerce Corporation

Choice Bank Ltd

Belgian Mobile ID

bolt.now

Cardlytics

Cinven

Bell Identification

Booking.com

CardProcess GmbH

Circle Pay

Bendigo and Adelaide Bank Limited

BOQ

Cardstream Ltd

Citcon USA

Bergslagens Sparbank

Boseman

Cartes Bancaires CB

Citi

bevestor GmbH

Boston Consulting Group

Cash Payment Solutions GmbH

Citi Bank

Bexs Bank

Bottomline Technologies

CashFlows

Citi Ventures

BGK GmbH & Co. KG

Bower & Partners

CashRich

Citizen

BGŻ BNP Paribas

Boxever

CashUnited SAL

City of Alpharetta

B-Hive

BP Europa SE – BP Nederland

CASPI LTD

City of Amsterdam

Bianca Lopes

BPC Banking Technologies

Castles Technology

City of London Corporation

BiG Start Ventures

BPCE

Castlight Financial

Clarion Events Limited

biid

Bradesco Bank

Catalonia Trade & Investment

Clarion

Billie

Bravonext SA

Catch London

Claro Partners SL

Billon

BRD

Catena Capital GmbH

Clarus.io

BillPro

Breaker Magazine

Cauri

ClauseMatch

BioCatch

Bridge2 Solutions

Caxton

ClearBank

Biocryptology ID

BridgePay

Cboe Vest Technologies

Clearmatics Technologies Ltd

Bird & Bird LLP

Bridgepoint

CCB

ClearScore

BitBay Sp. Zo.o.

Brightsight

CCgroup PR

Clearsettle

BitPay

BrightTALK

CCV Belgium

cleverbridge AG

Bitwala GmbH

British Gas

CDC Group plc

Clickfox

Bixolon Europe GmbH

Broloes Consult

CDDS Luxembourg SA

Clinc Inc.

BizBot AS

BS PAYONE GmbH

Celent

Cloud Elements

bizclikmedia.com

Bud Financial Ltd

CeleritiFinTech

Cloud Lending Solutions

Black Tristone Group Inc.

Bune Advisory Services BV

Celsius Network

CLX Communications

BlackFin Capital Partners

bunq

Cembra Money Bank AG

CMA

Blanco Services B.V.

BUSINESS FRANCE

Cembra Money Bank AG

CMS

Blastmind AG

Bussmann Advisory

CNBC

BLECKWEN

Byzantium

Center for Advanced Hindsight, Duke University

Blockchain in Europe

CAC Card Academy

Blockchain innovation conference

CaixaBank Digital Business

Blockchain4Innovation

Cal ICC (Israel Credit Cards ltd.)

Blocktrade.com

calcalist

Blonde 2.0

Cambridge Global Payments

Centtrip Ltd Cereal Finance Česká spořitelna, a.s. CFS ZIPP Limited CFTE Centre for Finance, Technology and Entrepreneurship

Chartwell Compliance

Chekk

CoCoNet GmbH Codemotion Cognexa s.r.o. Cognitive Finance Group Cognito Media Cognizant

PCM | MONEY2020 SPECIAL EDITION

EXPERT INTERVIEW

COIN22

Creditcall Corporation

Dejamobile

dunnhumby Ltd

Coinbase

CreditClick

Dell-EMC

Dutch Payments Association

Coinfloor Ltd

Creditinfo Estonia

Deloitte

dxFeed

Coinify ApS

Credorax

Denizen Financial

Dynamo Capital LLP

CoinList

CRIF

Dentons Boekel

DZ BANK

Coinmama (New Bit Ventures Ltd.)

Crossmatch

Dentons Europe LLP

Earlybird Venture Capital

coiny.io

Crown Agents Bank

Dentsu Inc

Earthport

Colendi

Cruxy & Company

Department for International Trade

Easy Nolo SpA

collect Artificial Intelligence gmbh

Cryptera A/S – Diebold Nixdorf

Deposit Solutions

Easy Payment Gatewat

Colors Inc.

Crypto Disrupt

Desjardins

Easylink Payment Co., Ltd.

Colu

Crypto Finance Group

Deutsche Bank

easypay

Combine

CSB

Deutsche Börse AG

EBA

Comercia Global Payments

CSI globalVCard

Deutsche Bundesbank

ebankIT

COMEXPOSIUM

CTC Advanced GmbH

Deutsche Handelsbank

EBANX LTDA

comforte 21 GmbH

CUATRECASAS GONÇALVES PEREIRA SLP

Deutsche Kreditbank AG

ebpSource

COMGEST Commerzbank AG

Curl

Deutscher Genossenschafts-Verlag eG

EBRC – European Business Reliance Centre

CommerzVentures

CURL BY MAIL

Deutscher Sparkassen Verlag GmbH

EBURY PARTNERS L.T.D

Commonwealth Bank of Australia

Currencies Direct

deVere E-Money

ECommPay APAC

Compass Plus Ltd.

Currency Cloud

DEX Data Explorers

Economic Development Board

ComplianceOnline Ltd

Curve

ComplyAdvantage

DFO Global Performance Commerce

Edenred SA

CURVED/Finance Forward

CompoSecure

Cuscal

Diebold Nixdorf

e-foresight

Computop GmbH

Customweb Ltd

Digby Consulting

Egerton Capital

Concardis GmbH

CWT MEO for GEMALTO

Digibon

Egon Zehnder International GmbH

Connective Payments

CX Pay

Digital Capital ltd

Eight Roads

ConsenSys

Cyber Productivity SA

Dimebox BV

Eika Gruppen AS

Constellation Labs

Cybertonica Ltd

Dimension SRL

Elavon Financial Services

Consult Hyperion

CyNation

DIMOCO Europe GmbH

Electrum Payments

ContaUm

D&T Solarwork Ltd (Tento)

Ding

ELITT

Contis

Dalenys Payment

Discover Financial Services

Ellex Valiunas

Contovista

Danske Bank

Divido Financial Services Ltd

Elliptic

Coöperatieve Rabobank U.A.

Danske bank A/S Lithuanian branch

DKB

ELO

Coparion GmbH & Co. KG

Daon

dLocal

eMAG

Copper Street Capital LLP

Dash Core Group Inc

DNB

Emailage

Cornèr Banca SA

Datactics

DNB ID Solutions AS

Cosmo Element

DataRobot

DocumentationHQ

Embassy of Austria – Trade Department

CPB SOFTWARE (Austria) GMBH

DataSine

Domo

Embassy of Canafa

CPP GmbH

Datum

Dorsum Co. Ltd.

CPPIB

De Brauw Blackstone Westbroek N.V.

Dorsum Zrt

Embassy of Spain-Commercial Office

Dotpay Sp. z o.o.

Embedded Security News

De Nederlandsche Bank

Dr. Thede Consulting GmbH

Emergent Technology Holdings LP

de Volksbank N.V.

Drake Star Partners GmbH

Emerging Payments Association

Decentralized Viaion Limited

DriveWealth LLC

Emex Technologies Limited

DefinedCrowd

DSwiss AG

EML Payments

Creacasa Credimee Crédit Agricole Payment Services CREDIT MUTUEL ARKEA Credit Suisse AG

PAYM E N TS & C A R D S N E T W O R K

Edgar, Dunn & Company

EMS

Finansinspektionen

Floreat Group

Endava B.V.

EY Innovalue Management Advisors GmbH

FinansWatch

Flywire

Enel X

Ezbob

Finastra

Folio

Enern Czech, s.r.o.

F10 Incubator & Accelerator

Finch Capital

Forbes

Enfuce Financial Services

Facebook

Fincom.co

Forbis

Enova International

FacePhi

FinCompare GmbH

FORCS

Enterprise Bot

Factris

Finextra

Forestreet

Enterprise Estonia

Factual

Fin-FSA

Forexfix

Enterprise Estonia

Fair Isaac Services Limited

Fingerprint Cards AB

Forgerock

Enterprise Ireland

Farfetch Portugal – Unipessoal Lda

Finn.ai

Foris Limited

Entersekt Europe Coop UA

FCA

FINOLOGEE S.A.

Form3

Entrust Datacard

FDATA

Finpass

Forrester

Envestnet | Yodlee

Features Analytics

Finsbury

Forter

EOS Holding GmbH

FeatureSpace

Fin-Serv Advisors Inc.

Founders Intelligence

equensWorldline

FedEx Cross Border

FINTEC SOLUTIONS, S.A.S.

Founders Keepers

EQUIFAX

Fedo Health Technologies P Ltd

Fintech Austria

Fountain

Equifax UK

Feedzai

FinTech Belgium asbl

Fractal Labs

Equinix Services Ltd

FemTechGlobal

FinTech Connect

Fraedom

Ercom

FemTechGlobal/Rainmaking Innovation

FinTech Consortium

Francisco Partners

FinTech Finance

Franx

Fintech Finland

Fraugster

Fintech Forum/ Techfluence

Freelance

FinTech Futures

Freeman

Fintech Innovation

French Ministry

Fintech Scotland

FSS

Fintech Time

FStech, Retail Systems

Fintech Ventures

fTLD Registry

FinTech Weekly

FTV Capital

Fintech50

fujitsu

FintechBlocks

Fundamental Capital

FintechCity

Funding Circle

Fintechnews Switzerland

FXCintel Ltd

FinTechStage

G+D Mobile Security

Fintonic

G2 Web Services

Fintrax International Payment Services

G2A.COM Limited

First Block Capital Inc First Data

G4S Security Services BV / att. Crediteuren

FirstPartner

Galafres Ltd

FIS

Galileo Processing

Fitbit

Gallagher Security (Europe) Ltd

FitMoney

Gartner

Five Degrees

GBG PLC

Flanders Investment & Trade

GBG

Fleetcor

GCOX

ERNIT Ernst & Young GmbH Erste Group Bank AG Erste Group Card Processor d.o.o. ESPAÑOLA ETA Etam SCE Ethoca Euromonitor International European Banking Federation European Central Bank European Women Payments Network EverCompliant Evercore Partners Everex One Pte. Ltd Everledger EVRY AB EVRY Financial Services EVRY Norge AS EXA Corporation Exhibit Group Expedia Exponent Exscudo OU EY

Ferratum Oyj FEXCO FFG Finanzcheck Finanzportale GmbH FGC Projects Pty Ltd FHF Fibonatix FICO Fidelity Investments Fidesmo Fidiasz EVC FIDO Alliance Fidor Fiducia & GAD IT AG Fiduciary Management Limited FIME Finance Finland Finance in Motion Finance Innovation Finance Stack Financial Conduct Authority Financial IT Financial Technology Partners Financial Times Financial Times

G4S Cash Solutions BV

PCM | MONEY2020 SPECIAL EDITION

EXPERT INTERVIEW

GDS Link, LLC

Gyomo, Inc.

Huijnen Management

Infraxis AG

Gemalto

Habito

Hunch

ING Bank NV

General Atlantic (UK) LLP

Hamburger Sparkasse AG

Hyperwallet

ING

General Financing UAB

Handelsbanken

i Pay Secure Payment

Ingenico

Geo Corporation

Handelsblatt

i2i Logic

Inkassogram AB

Geohashing LLC

Hangzhou Enniu Network Technology Company Limited

iAxept

INKEF Capital

Ibanity

inmera

Hangzhou Xinhehui Internet Financial Services Co.,Ltd

IBE TSE LIMITED

Innovalor Software B.V.

IBM

Innovative Assessments

IBS Intelligence

Inpay

ICAR VISION SYSTEMS

Insead

ICARE Technologies

Inside Secure

ICC Solutions Limited

Insignia

ICF Technology, Inc

Inspecta Sertifiointi Oy

ID Finance

Instantor AB

ID TECH

InstaReM

IDC

IntegerAI

Idemia Sweden AB

IntellectEU

IDEMIA

IntellForce

IDEX Biometrics

Intelligent Digital Technologies LLC

IDnow

INTERCASH Group

Idram LLC

International Card Services

IDT Financial Services Ltd

International Currency Exchange

IEG (Deutschland) GmbH

International Finance Corp.

Ifintab

Interpay

IFX UK Limited

INTL FCStone Ltd

ikas Teknoloji A.S.

INTRAPAY

Imec

Intrepid Ventures

IMN

Intrum

ImpalaPay

Intuit Inc

Hiveonline

Implement Consulting Group

Invest Hong Kong

HM Government of Gibraltar

InAuth Inc

Invest Lithuania

HMS Consulting Group

InAuth UK Ltd.

Investec Bank Limited

Hogan Lovells International LLP

Incentive Travel

Investing.com

Holland FinTech

InComm

Investly

Holtrop Ravesloot

Indacoin Limited

IOTA Stiftung

HomeSend

Independent

IPF Digital

Horvรกth & Partners Management Consultants

India FinTech Forum

iProov

Indra Sistemas

Isabel group

Hotels.com

Indue Ltd

iseepr

Houlihan Lokey

Indus Net Technologies

Isherwood Editorial

HPE Growth Capital

Infineon Technologies AG

ร slandsbanki

HPS

Infinite Convergence Solutions Inc

Isle of Man Government

HSBC

Infobip Ltd

iSPIRT foundation

http://www.salaryfits.com/

Infosys Ltd

Isracard

Georgia, USA Geoswift Limited Germania Fluggesellschaft mbH Germany Trade and Invest GmbH GfK

Hanseatic Bank GmbH & Co KG Hargreaves Lansdown Hatch Money Limited

GFT Giesecke & Devrient Mobile Security GmbH

Hawthorne Capital Headcount

Giesecke+Devrient Currency Technology GmbH

Hedgewiz Pure Risk Management Solutions LTD

Girmiti Software Pvt. Ltd.

Hedosophia

GKASH

Helios Investment Partners

Glasthule Consulting UG

HelixWeb Corporation Ltd.

Global Affairs Canada

Hellenic Bank

Global Custodian

Hellman & Friedman LLC

Global Digital Finance

Hello Great Works

Global Finance

Hello Soda

Global Payments

Herr

Global Processing Services Limited

HEXANIKA

Global Trade Review

HgCapital

GlobalData Retail

HiFX Europe Limited

Gobaba.com limited

HiPay

Gobaba.com limited

Hitachi Vantara

Goldbloc

Hive Project (HIVE IT Svetovanje, d.o.o.)

Goldman Sachs Google GP Bullhound Grab Financial Group Gradiant Grandhood GrantTree Greenhill & Co. Greenings International Gretchenfrage Groundsure Groupe BPCE GT GETTAXI LIMITED GTECH GuardSquare

PAYM E N TS & C A R D S N E T W O R K

ITIS OOO

Knowledgepool Group Ltd.

LISNR

MC ONLINE SDN BHD

IXOPAY

Københavns Universitet

Liverpool Vision

MCITS Holding BV

iyzi Ödeme ve Elektronik Para Hizmetleri A.Ş.

Kohl's Department Stores

Lleida.net

McKinsey & Company

Komplett Bank

Lloyds Bank Cardnet

McLEAR

iZettle

konsentus

Lloyds Banking Group

Meaghan Johnson

J.C. Flowers & Co UK Ltd

Kontist

Locke Lord LLP

MeaWallet Latvia SIA

J.P. Morgan

Kontomierz.pl Sp. z o.o

London & Partners

Mediobanca S.p.A.

James Finance

KOOP – the fintech hub

Lone Pine Capital

Meeco

James Good

Korn Ferry

Lorem Labs

MeetingMoreMinds

Jan-Willem Ophof

Kortaþjónustan hf

Louis Vuitton NA Inc.

Melissa Data GmbH

JB Financial Group

Kount

Lovell Minnick Partners LLC

JCB Europe

KPMG LLP

Lukinter Finance B.V.

MELLON TECHNOLOGIES SYSTEMS AND SERVICES

JCB International Co., Ltd

Krajowy Integrator Platnosci SA

Lunar Way

Meniga

JCC Payment Systems Ltd

Kraken

Luno

Meniga

jenID Solutions

Kreditech Holding SSL GmbH

LYNX advance technology

Mercedes pay S.A.

JETON VENTURE LIMITED

Lacent BV

Lyra Network GmbH

Merchant Advisory Group

Jobs Ohio

Lafferty Group

M Group Strategic Communications

Metal

JPMorgan

Landesbank Berlin AG – DBS

M Science LLC

Metro AG

JS Ventures

LANDI

m2msolutions

Metro Atlanta Chamber

JSC TBC Bank

Länsstyrelsen i Örebro län

M4U

Metro Bank

Judopay

lastminute.com

Macquarie

MGI Research

Jumio

Lazard

mangrove capital

Microblink Ltd

Juniper Research

Leadtech Innovation SL

Mansion Invest AB

Microsoft

Jyske Bank

LeanDev AB

MAP BUSINESS SOLUTIONS LTD

MIDAS – Invest in Manchester

Kabbage Inc.

LENDIT FINTECH & BLOCKFIN

Mapa Research

Middlegame Ventures

Kalixa Services GmbH

LendIt

MapR

Miles & More GmbH

Kancelaria Radcy Prawnego Agnieszka Duchnowska LEGALEE

Lenny Crotty

Marca Wosoba

Miles Oslo AS

LERNER Consulting

Marketflow Limited

Minna Technologies

LES ECHOS

MarketForce

Miss

LetterOne Technology

Marq Millions Ltd

Mitek Systems B.V.

Leumi Card

Marqeta

Mitsui Knowledge Industry Co.,Ltd.

Level39

MaRS Discovery District

Mobeewave

Levi9

MASH Luxembourg S.A.

Moberg d.o.o.

Levvel

Mastercard

Mobica Limited sp. z o. o.

LexisNexis Risk Solutions UK

Mobile Matters

LHV Pank

Masterpayment Financial Services Ltd

LIANLIAN PAY

Match-Maker Ventures

Mobiticket

Lietuvos bankas

Matica Technologies AG

MobiWeb Limited

Limitless

MAXIM – INNOVA CARD

Mobuyou

Lindorff AS

Maxpay

MODIFI GmbH

LINE BIZ PLUS Corp.

Mayor's Office – City of Atlanta

Modo

Linx SA

Mayzus Financial Services Limited

ModoPayments

LINXENS HOLDING

mBank S.A.

Modulr

Lipis Advisors

Mbanq

Moelis & Co

Liquid Labs GmbH

MBNA

Moelis & Company

Kantox Ltd KartePay Tchnologies LLP Kaspersky Lab KBC Bank & Verzekering KDDI Research, Inc. Keesing Technologies Kempen & Co Kennedy Van der Laan KeyPoint Credit Union KG Funds Management Kimlic Kinnevik Kiwibank KKR Klarna KMD A/S Know Your Customer

Mobilieji mokejimai

PCM | MONEY2020 SPECIAL EDITION

EXPERT INTERVIEW

Mollie B.V.

Netclearance Systems

OECD

P.A.ID Strategies

Momentum Worldwide

NetCredit

Oliver Wyman

P20, Inc.

Monami Tech

Netflix

Omidyar Network

PA Consulting

Monese

Netherlands Authority for Financial Markets

On Time Mobile Technologies SA de CV

Padoq

Ondot Systems Inc.

PagBrasil

Monext SAS

Netherlands Foreign Investment Agency

ONE CLICK INDUSTRIES

Nets Denmark A/S

Pakkie

Moneycorp

OneLinQ bv

Nets

Palm Biometrics

MoneyMap

OneVisage

NewBanking ApS

Paris Fintech Forum

Moneymo Online Bilisim Hizmetleri A.S.

ONEY

Newcent

Paris Region Enterprises

Oney Bank

MoneYou B.V.

Nexi

Park Presidio Capital

Onfido

MONEYTHOR

NEXT BIOMETRICS INC

Partnerhub Ltd

Onguard

Moneytrans

NextFin

Pax Italia

OnlinePay

MONINFO Banque Edel

Nextpayway

PAX Technology Limited

ONPEX

Monito

NFT Ventures

Pay2Z Ltd

Ontario Teachers' Pension Plan

Montblanc-Simplo GmbH

NIBC Bank

Pay360 by Capita

Oodle Finance

Mooreland Partners

niiio finance group AG

PayAlly Limited

OP Bank

Morgan Stanley

Nike

PAYBACK GmbH

OP Financial Group

Motive Partners

Nimbla

Payclub

Open Bank Project

Munnypot Limited

Nivaura Ltd

Payconiq

Open Banking

MyBudget

NKD Technologies

PayKey

Open Payments Cloud

myGini, Inc.

NMI

Paymaster a.s.

Open Payments Europe AB

MYPINPAD

Noble Markets

PayMe

OpenWay Group

Myriad International Holdings

Nomura International plc

Payment Business School

OpenWrks

N26

norbloc

Payment Card Solutions

OpSeeker

Näktergal

Nordea Bank

Payment Courier Ltd

Optal Financial Limited

Naspers

Nordea Finance

Payment Eye / bobsguide

Opticos

National Australia Bank

Norfico

PAYMENT LABS LLC

Optile GmbH

National Bank of Greece S.A.

North Island

PaymentGenes

Optima Consultancy

Nationwide Building Society

NorthRow

Paymentology

Optio.Ai

NATIXIS PAYMENT SOLUTIONS

Novastone

Payments & Cards Network

NatWest Markets

Novastone

OriginalGENE /ORG Services Limited

Payments Cards and Mobile

NC Advisory AB

NPP Australia

Origo

NC Investment Advisory

NS8

Orounda PSP

Payments Network Malaysia Sdn Bhd.

NCR

NTT Communications

Orwell Group

PaymentsCompliance

NDGIT GmbH

NTT DATA Corporation

OSTHAVEN GmbH

PaymentsMB

Nec Corporation

Numis Securities

Otly!

Paymentwall Inc.

Nekem Packaging

OTP Bank Nyrt.

Payneteasy

Neo Capital Market SA

NXP Semiconductors Netherlands B.V.

OTPP

NY Times

Payoneer EU

Neopay Limited

Otto (GmbH & Co KG)

Nykredit

PayPal

Nest Studios Ltd

out of context

Oak HC/FT

Payplaza

Nestlé / Nespresso

Oval Money

Oberthur Technologies

PayPoint plc

Net Element International

Overstock.com

Oceanpayment

PayPro SA

Netcetera

Owlin

Payr AS

Monetary Authority of Singapore (MAS)

PAYM E N TS & C A R D S N E T W O R K

PagamentiDigitali.it

Payments Fintech Limited

PayRator B.V.

Point72 Ventures

Quantum Electronic Payments

Reuters

Payreto Opereations EOOD

Polar Capital

Quayle Munro Ltd

Revo Technologies LLC

Paysafe Group

Polaroo

QUBERA LIMITED

Revolut

Paysafe Holdings UK Limited

Polskie ePłatności

Quenti Technologies

Revue Banque

PayTabs LLC The Holding Company

Polymath Consulting

Quipu GmbH

Rewire.to

PayTechLaw / Aderhold

Portexictos

Quipus

RFi Group & Sky News

PAYTWEAK

PostFinance Ltd

Quotanda

Ripple

PayU & Naspers Fintech

Postova banka, a.s.

RISCURE

PayU

Poul Schmith

Risk.Ident GmbH

Payworks Gmbh

Powercash21

R5FX Ltd

RiskConcile

PayX International

PPRO Financial Ltd

Rabbi&Co Law Firm

Riskified

Payzoff

Precise Biometrics AB

Rabobank

Riverhouse Partners

Payzone Ireland

PrecisionLender

Radically Open Security

RJ Digital

PBA Experts GmbH

Predictus

Raiffeisen Bank International

RMS

PCS

Prepaid International Forum

Raiffeisen E-Force GmbH

Robeco

Peaks

Prepay Solutions

Roland Berger GmbH

Peel Hunt LLP Peer2Peer Finance News

PricewaterhouseCoopers GmbH WPG

Raiffeisenlandesbank Oberösterreich Railsbank

Royal Bank of Scotland

PELICAN

Prime Ventures

Railslove GmbH

RS software

Penta

Princeton Identity, Inc.

Raisin

RS2 Software p.l.c.

PerformLine

Pro2Change Services BV

Rakuten Europe Bank S.A.

SAB

Permira Advisers LLP

processing.net

Rambus

Safecharge Group LTD

Personetics

Prodigy Finance

Rapyd

Safened

Perspective Publishing

Project Imagine

Rapyd

Sage

Petit Web

Projective

RatePAY GmbH

Saifu

PFR Rechtsanwaelte

PROMISEPAY

Ravelin

Salesforce

Phoebus

Propel Venture Partners

SalesOptimize

Phoenix Informatica Bancaria SpA

Prosper² Limited

RBC Capital Markets

Samlink

Piccadilly Group

Protiviti

RBR Ltd

Samsung Electronics

Pillar Project Worldwide Ltd

PSA Payment Services Austria GmbH

RBS

Santander

PIRAEUSBANK

PSI-Pay Ltd

RDC

Santander InnoVentures

PITCHSTOR LTD

PTT2 Solutions GmbH

Reaktor Innovations Oy

Sapient

PJT Partners

PUBLICIS LONDON

Reasoning.IO, LLC

Satispay spa

Plaid

Publicis.Sapient

rebuildingsociety.com

Saxo Bank

PlanetRetail RNG

PwC

Redecard s/a

Saxo Payments

Plansee

Pytch Ventures

Regional Australia Bank

S-Bank Ltd

PLIVO INC

QaiWare

Regulatory Datacorp, Inc

Sbanken

Plug and Play

Qander Consumer Finance BV

Rehive

Scanovate

PLUS Journal

Qatar Financial Centre

Reiknistofa bankanna

Schufa Holding AG

Plutus

QED Investors

Relay42

Schulte Research

PMK INVEST

QIWI Bank (JSC)

Remitly

Scopus Soluções em TI Ltda

Pockit

QNB

Reserve Bank of Australia

Scottish Development International

PocoSys

Qonto

Retail & Loyalty Journal

SEB Bank

POD CEE Kft

Qualcomm

Retail Merchant Services

SecuredTouch

Point72 Asset Management (Aperio)

Quantfolio

Retail Week

SecureKey Technologies Inc

Royal Bank of Canada

PCM | MONEY2020 SPECIAL EDITION

EXPERT INTERVIEW

Seed Space Venture Capital

SnapSwap International S.A.

Suburbia

Temenos

Segasec

Snowdrop Solutions Ltd.

Sumitomo Mitsui Banking Europe ltd

Tencent

Seguru

SNS Bank

SumUp Payments Limited

Tender Armor

Seita Technologies Oy

SOCIETE GENERALE

Sunmi Technology

TentroPay

Sella Open Fintech Platform S.p.A.

Soda Software Labs Ltd

Sunny Vast

TenX

Semel Oy

SOFORT GmbH

SunTec Business Solutions

Terrapinn Africa

Sender Payment Services

SoftBank

Supercharge Kft.

Terrapinn Middle East

Sensibill Inc.

SOK Corporation

Swan McAdemy

Thames Card Technology

Sentenial

solarisBank AG

Swedbank

The ai Corporation

Sentenial Ltd t/a Nuapay

SoliSYSTEMS Corp.

SWIFT

The Banker

Sequent

Solve.Care Foundation

Swiss National Bank

The BayPay Forum

ShapeShift

Sonae Center Serviços II, SA

Swiss Rail

The Booster Labs

SHC GmbH & Co. KG

SONECT

Swisscard AECS GmbH

The Boston Consulting Group GmbH

Shelf.Network

Soprabanking Software

Swisscom AG

The Dandelion Trust

Shieldpay Ltd

Spanish Fintech and Insurtech Association

SwissWallet

The Dating Network

Shift Cryptosecurity

Switch

The Executive Network

Shopify Inc.

SpareBank 1

Sydbank A/S

The Financial Services Club

Shoptalk

S-Payment GmbH

Symlink Corporation

THE FINANCIAL TIMES LTD

SIA Tieto Latvia

Spectra Merchant Services Ltd.

SyndicateRoom

The Fintech Times

SIBS Forward Payment Solutions, S.A.

Speedinvest GmbH

Synechron Business Consulting

The Human Chain

Spencer Stuart

SYNGENIO AG

The Lend and Borrow Trust Company

SIBS SGPS, S.A

Spencr

Syntec

The LHoFT

Signicat

SPENDEE

Synthesis Software Technologies

The mobilewallet Pvt Ltd

Silicon Valley Bank

Sphonic

SYRTALS

The New Spaces

Simility

SPIN Analytics

Syspay Limited

The Paper

Simon Kucher & Partners

SplitMode GmbH

System Merchants

The Payment Guys GbR

Simplesurance GmbH

Square

T.Garanti Bankası A.Ş.

The Paypers

Simplex

SSenStone

TA Associates

The Pillar Project

siOPTICA GmbH

ST mICROELECTRONICS

Tamedia AG

ThetaRay

Sistemas de Informação, S.A.,

Standard bank

Tandem Bank Limited

ThreatMark

SIX Payment Services

Standard Chartered

Tap2pay

Threatmetrix BV

Sky Betting & Gaming

Star Micronics EMEA

Tappy Technologies Limited

Three Square Chip Companies

Skycop.com UAB

Starling Bank

Tarfin

ThumbsUpp

SkyParlour

Start2Pay Ltd.

Target Global

Slaughter and May

Startupbootcamp

TAS SpA

Thurgovia (UK) Ltd & Thurgovia (France) SA

Slimpay

Startupbootcamp Amsterdam

Tatra Banka

ti&m AG

Small World Financial Services Group Ltd

StartupSuriname

Taulia

Tide

STC

Taxback International

Tieto Sweden AB

Smart Engine GmbH

SteelEye

TBC PAY

Tiger Global Management

Smart Insights

Strands Labs, Inc

TCV

Timelex Law Firm

Smart Valor AG

Straterix Inc

Tearsheet

Tink

Smart2Pay

Straterix LTD.

SmartAssistant

Tech City UK

Streeva

SmartStream

TechFluence UK Ltd.

TIS – Objektni informacijski sustavi d.o.o.

Stripe

SmileWallet

techUK

Suade

Temasek International Pte Ltd

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TJX Europe TKP Pensioen BV

TME AG

TWINO

Victoria Police

Whitepages Pro

TNG FinTech Group Inc.

UAB Finansu bite

Vidici Ventures Holding AB

Whitepages, Inc.

TOC Biometrics

UAB Mokilizingas

Village Capital

William Blair

TokenCard Limited

UAE Exchange UK Ltd

Viola Ventures

WIN – Women Investing Now

TokenID, Inc.

UATP

Vipera Plc

Windu LP

Token UK

Ubiquity Global Services

Virgin Money Digital Bank

Wirecard

Topicus.Finance

UBS

Virgin Trains

Wirex

Torch Partners

UCL School of Management

Virgula Decisiva

WirtschaftsWoche

TOSCAFUND

Ucom

Virtual Consultant S.A

WithPR

Total Marketing & Services

Visa

Wix.com

Toyota Financial Services

Underwriters Laboratories

Visionplanner

WiZink Bank

TPG Europe LLP

Unicâmbio

Vitesse PSP Limited

Women in Payments

Tra Bİlİşİm Teknolojİ

Unicre, SA

Viva Wallet

WordFlow

TraceFinancial

UniCredit S.p.A.

Vizolution

World First

Trade Ledger

Unifiedpost

Vnet Partners

Worldline

Trade.be – Innovaton Garden

Unifund Group

Vocalink Mastercard

Worldpay

TradeCore

UniPAY

VocaLink

Xero

TradeIX

Uniqa Insurance Group AG

Vodafone

XIAOXIKUAIPAO

Transact Payments Limited

University of Manchester

Volaris

Xpress Money Services Ltd

Transaction Network Services UK Ltd

Up Group

Voldaan Holding

XXIII Capital Guernsey Ltd

Transactive System Ltd

UPT A.S.

Volksbank Wien AG

Yapıkredi Banking

TransactPro

US Dept of State

volt bank

YapStone

TransferMate

USG

Vontobel

YeePay

TransferTo Mobile Financial Services Ltd

Utimaco IS GmbH

Voogt, Pijl & Partners

Yello

UTOPIA THINKING SYSTEMS

Vopium

Yolt

TransferWise

Vacuumlabs.com

Vostok Emerging Finance Ltd

YOUPAYER

Transpay

Vala

W2 Global Data Solutions Ltd

Yoyo Wallet

Treasury Delta

Valitor

Walmart

Zeipt

Trent Advisory Services

Valitor hf.

Warburg Pincus International LLC

Zestfinance

trimplement GmbH

Valora Management AG

Warwick Business School

Zighra Inc.

Trionis

Van Doorne N.V.

Wave Crest Holdings Limited

Zignsec

Truelayer

Van Lanschot

we.trade Innovation DAC

Zoo

Truevo Payments Ltd

Varde Partners

Wealthify

ZooPay

Trunomi

VASCO Data Security

Wearable Technologies SL

Zooz Mobile LTD

Trust Designer

VC Innovations Ltd.

Webrazzi / Crenvo

Zopa Ltd

TrustEuAffairs

Veenu Sports

Wehkamp

zuper GmbH

Trustly Group AB

Vega Protocol

Wehkamp BV

Zwipe AS

Trustonic

Velocity Capital Private Equity

Wellington IT

TrustPay, a.s.

Venable LLP

Wells Fargo

TSG Interactive Services Limited

Venture Investor

WePay Payments Ltd

TSYS

Verifi, Inc.

Western Union

TSYS MEXICO

Verifone

Westpac Banking Corporation

Turkcell Consumer Finance

Verifyoo

weXelerate GmbH

TUV SUD Product Service

VeriTran

W-HA (Orange group)

Tuxedo Money Solutions

Vesuvius Ventures

White Label Crowdfunding

PCM | MONEY2020 SPECIAL EDITION

EXPERT INTERVIEW

Inspiring crypto finance A N INTE RVIE W WI TH MARIE KE FLE ME NT, M A N AGIN G D I R EC TO R FO R EUROP E AT CIRCLE

easy as texting or using email; whether across the table or across the ocean, payments are instant, secure and without fees. Circle Pay has millions of customers and is available in 29 countries with instant no-fee conversion between USD, GBP and EUR. Circle Invest: An investment app that makes it easier than ever to invest in crypto, whether it is your very first time or your 100th. For as little as $1 customers are instantly able to invest in a broad mix of crypto assets through a simple, seamless, mobile experience. Recently launched in the U.S., Invest will be available in Europe in the coming months. Poloniex: One of the worldâ&#x20AC;&#x2122;s largest crypto exchanges that makes it possible for customers to transact in different digital assets around the world. Used by thousands of investors, Poloniex is available in over a hundred countries worldwide. Circle Trade: One of the largest market makers of digital assets in the world, Circle Trade offers over-the-counter (OTC) trading services and liquidity to institutional investors. Circle Trade facilitates over $2 billion per month in crypto trading.

PCM: Can you tell us about the different branches of Circle? Circle is a crypto finance company that makes it possible for people everywhere to create and share value in a way that is affordable, open and empowering. Leveraging the power of blockchain technology and crypto assets, Circle is 22

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reimagining financial services by making it possible to send, receive and invest in assets seamlessly around the world. As of today, Circle offers four products, described below: Circle Pay: A social payment app that makes sending and receiving money as

In addition to the above, Circle has recently announced the forthcoming development of USDC, a solution that enables customers to purchase and use USDC fiat tokens for payments and trading in the cr ypto ecosystem. USDC provides a full reserve US dollar-backed stablecoin, and is based on the open source fiat stablecoin framework developed and governed by CENTRE, which will provide independent oversight of Circleâ&#x20AC;&#x2122;s offering. Circle will only be the first issuing member of the CENTRE network, and further tokenized fiat stablecoins may be issued by other audited, licensed, participating network members.

PCM: What makes Circle Pay different to other payment apps? Circle Pay allows its users to share money between the US and Europe, completely for free – it is as easy as sending a text really as payments are made and received immediately. Circle Pay also has a groups feature, where you can send and receive money within a group of up to 20 people – great for money collections and events. Available in 29 countries, free, instant – you can cash out in less than 15 minutes in the UK and under a minute in the US. PCM: What challenges do you see in the industry currently and how are you planning to overcome these challenges? One of the major challenges is the volatility of cryptocurrencies. The invention of cryptographic assets and blockchain-based computing have ushered in the next major era of the open internet. But a price-stable medium of exchange and store of value is missing, and badly needed in order for global financial interoperability to function reliably and consistently. Transacting in currencies which fluctuate with extreme volatility creates complexity and fragile settlement contracts, especially when compared to transacting in “tokenized fiat money” or fiat-pegged crypto assets. A price-stable currency, such as a token pegged to the US dollar, is critical for enabling mainstream adoption of blockchain technology for payments as well as for supporting maturation in financial contracts built on smart contract platforms, such as tokenized securities, loans, and property. Existing fiat-backed approaches have lacked financial and operational transparency, have operated in unregulated jurisdictions with unknown banking and audit partners, and have been built as closed-loop ecosystems and closed proprietary technologies.

Circle USDC addresses these problems by providing detailed financial and operational transparency, operating within the regulated framework of US money transmission laws, and reinforced by established banking partners and auditors. It is built on an open source framework with an open membership scheme that eligible Financial Institutions (FI) can participate in (CENTRE). USDC will be ERC-20 tokens minted, issued, and redeemed based on network rules defined by CENTRE. PCM: Circle recently received a big investment from Chinese-based Bitmain. How will this impact the company? We are extremely pleased with the investment by Bitmain. Bitmain is leading the way in the crypto market and our visions strongly align around the creation of a new global economy that leverages open source blockchain technology, powered by cryptographic assets and distributed contracts. So, we very much look forward to working together on this. Bitmain will furthermore be involved in CENTRE to help introduce multiple fiat stablecoins in a variety of geo-currency zones. It is Circle’s vision to not only peg USDC to the dollar but ultimately also work with other large currencies such as EUR, GBP, JPY, RMB, it is great to have Bitmain on board to partner with us on this. PCM: What can we expect next from Circle? Our main focus is the development and release of USDC, and the evolution of CENTRE. We are also working on bringing Circle Invest to other markets such as Europe as a matter of priority, and we are developing Circle Trade to become more automated and provide a better customer experience for our clients.

Marieke Flament M A N AGE R D IRE C TO R F OR EUR O PE

Marieke Flament joined Circle as Managing Director for Europe, establishing Circle in the UK in April 2016. Since then she has rapidly expanded the team and led launch of the Circle Pay app in 29 European countries. Marieke was one of the first to sign up to HMT’s Women in Finance Charter and is on the Women in FinTech Powerlist for 2017.

Circle Circle is global crypto finance company on a mission to make it possible for anyone, anywhere to help change the global economy. Founded in 2013, Circle offers four products Circle Invest makes it easy to invest in crypto even if you’ve never invested in crypto. With Circle Pay you can send money like a text — across the table or the ocean. Circle's OTC crypto desk Circle Trade moves over $2B each month. And its addition of Poloniex welcomes one of the world’s largest crypto exchanges.

Finally, following the acquisition of Poloniex, we are making continual improvements to the platform to enhance customer experience. PCM | MONEY2020 SPECIAL EDITION

EXPERT INTERVIEW

The innovation lab for corporate strategy BY MICHAEL BACKES, CTO AT OTTO GROUP DIGITAL SOLUTIONS

PCM: How did Otto Group Digital Solutions start? Otto Group Digital Solutions (OGDS) is the next evolutionary step in the Otto Group's strategy for tomorrow. It was started 6 years ago by Michael Backes and Paul Jozefak out of the companybuilder Liquid Labs with €10M and a pure focus on Fintech. They started out to answer one question: How could a large corporation, with vast know-how and resources, compete against smaller startups that don't have these advantages? Both Paul and Michael had a variety of experience with VC, corporates in the US and EU, as well as their own companies. They believe that corporations do have a lot of tangible advantages that can be leveraged into creating the next generation of opportunities.

a drive to push themselves outside of their comfort zone and drive a concept forward. We quickly look to bring in the first key hires that will build and run the company when it goes out the door, and it is off to the races.

Once a concept has proven itself, it is spun off into its own entity and the team is now like any other start-up out there, except that it continues to have our full support with every issue that they face. In addition, they continue to have the full back office support infrastructure of the group at their disposal. During this phase our role with the company evolves from very hands-on to very much advisory. We are sparring partners for our teams and expect them to be completely independent. As time goes on and the company evolves, we act as the portfolio manager, checking that the companies align with the overall It is now a group of seven companies, corporate strategy, and when not, we with a total value of over €200M. This sell the companies, or bring in external latest step includes €85M to fuel further investors. company-building and finance growth. The focus is now not only Fintech but PCM: What can you tell us about spans across the entire value chain that the different companies that are the Otto Group touches, from finance part of OGDS? and logistics to retail. An important part of OGDS are our PCM: Can you tell us about the two company builders: Liquid Labs that different branches of OGDS? focuses on fintech and logistics and into-e that focuses more on e-commerce. In OGDS is divided into two key areas: addition to the company builders, we Company development and portfolio have a portfolio of companies with a management. In the early-stage we variety of outcomes. The oldest to-date are finding ideas and determining is RiskIdent. This company focuses on which assets the group has in order to anti-fraud solutions that are built upon accelerate those ideas. Here there is Machine Learning as well as other a constant stream of deal flow coming strategies. It currently services over €33 from both inside the group as well as billion in transaction volume in DACH market trends that we draw upon. Here region across retail, telecommunications, it is very hands-on for everyone in the and banking. By leveraging the massive team. People are expected to bring not transaction volumes inside the Otto Group, only their expertise to the table, but also we were able to take this company from 24

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concept to live to data leadership in a matter of months. Another Fintech company that we have built is collectAI. As the name implies, it focuses on collections, starting with the initial e-invoice all the way through to global debt collection services. It too leverages Machine Learning and the ever-changing digital landscape to improve their clients' account receivables. Some are making the leap from paperbased solutions to collectAI and seeing drastic improvements in collection rates as well as fewer good customers being handed off to debt collectors. Lastly, to show some diversity, we built a global cross-border virtual logistics company called BorderGuru. The company leverages technology to allow a merchant to sell globally and his customers can see all the logistics and customs/tariffs right in the basket during checkout. The platform then takes care of all the paperwork and payments, so that the consumer receives their package delivered to their home instead of having to travel to a customs office. The platform is now the preferred solution for German merchants selling in China. PCM: How is the role of OGDS within the Otto Group? OGDS is a strategic arm of the Otto Group's core strategy moving into the future. We play a key role in the digital transformation by allowing older core businesses to focus while we pursue the new opportunities leveraging all of the great assets the company has built up over time. Whereas others might produce ideas and slides, we produce companies that are required to become profitable over a five to seven-year period. PCM: How does this compare to intrapreneur style programs? The first difference is that we get a different profile of person to do what we do. They are not so concerned with the proper career. They want to really move things and be given the chance to do so. But they also are not going to actually go

take their savings and found a company, for a variety of reasons. Most programs are designed such that the people can fall back upon their old job. We don't do that. You are making the active decision to move into a high-risk, high-learning environment, where there is no fall-back plan. It means you are all-in with us, but you don't have the large financial risk if you did it on your own. In a way, you can't go back to old habits once you have walked in our door. PCM: How does this compare to Venture Capital? We are not a fund. Although we have a large commitment of capital to use towards building companies, we don’t operate like a fund. We won’t take on external teams or business plans and finance them through to an exit. Our primary goal is to build long-term, futureoriented businesses for the Otto Group. If your primary goal is financial return, then invest in a fund. PCM: Do you think every corporate should be involved in similar company-building activities? My recommendation to every corporate is to first decide what you really want to achieve and then take a real look in the mirror at how the situation is. If you are designed purely for financial return, like a holding structure, with no focus on being the biggest retailer, or manufacturer, or whatever the case could be, then just invest. If you are one entity, with a series of products, and want to innovate new products or potentially add services, then company building would add a lot of overhead that you

don’t really want or need. But if you are already in a structure where you have multiple companies, whether they are in the same industry or not, then you have a lot of the basics already in place to leverage the concept. If you are then going to try it, then you most-likely are going to have to look outside the organization to find the people to run it. These are not your typical careerists. They are not the people who set up a corporate VC so that they can play VC on Friday afternoon. They are typically driven by something else, and both sides will be pushed outside their comfort zones. There are also a lot of natural conflicts in these kinds of structures right from the start. These will depend upon how your particular corporation is set up and what kinds of culture and processes rule the day. Your normal HR policies will not be able to keep people incentivized. You will have old processes that restrict things based upon a reality that doesn’t exist anymore. You may be forced to wait for things from internal resources that you could get externally within a day. You will even run into things people “have just always done that way.” PCM: Do you have anything in the pipeline that you would like to share with us? We recently launched two businesses: one focused on tech-driven fulfilment and data-driven returns; the other is to create the global transactional layer for IoT-driven commerce. We've never left things as-is, so you can be guaranteed that in six months, something bigger and better is coming.

Michael Backes CTO

Michael Backes provides hands-on leadership in innovation as CTO of Otto Group Digital Solutions and Managing Director of the Company Builder Liquid Labs. With an entrepreneurial-mindset, Michael has recognized expertise in finding technical and business solutions.

Otto Group Digital Solutions Otto Group Digital Solutions is the Corporate Company Builder of the Otto Group. We focus on establishing start-ups in the areas of logistics, e-commerce, and FinTech, with the goal of identifying and employing digital business models. Otto Group Digital Solutions’ strategy combines the best of both worlds: entrepreneurial spirit and innovative ideas with the solid backing and assets of the Otto Group.

EXPERT INTERVIEW

Simplifying payments acceptance for retailers What can standardisation and ISO20022 do for the retailer payments acceptance space? In short – a lot. INTE RVIE W WI TH ROMAIN LORÉ AL, S O L U T IO N A R C H IT EC T AT D ESJA RD I N S A N D J O Ë L M A R T Y , BU S IN ESS DEV ELOP MEN T DIR EC TO R AT V ERI F ON E

ndustry standards body nexo Standards, is on a mission to break down the borders of the payments acceptance ecosystem, developing universally applicable and freely available protocols and specifications that harness the power and security of the ISO20022 standard. To do so, it brings together players from across the ecosystem – from card schemes, PSPs and processors, to acceptors, retailers and vendors – to create an open dialogue, a fairer playing field and generate an industry-wide commitment to promote and advance a standardised payments acceptance market. No mean feat, then, to orchestrate the collaboration of so many and maintain a

We’re in an increasingly digital, globalised and omnichannel payments world. Recent years have seen the rapid advancement and increased delivery of advanced technologies and valueadded services, such as contactless and In this issue, we sat down with Romain mobile payments. Equally, we’re seeing Loréal and Joël Marty, Co-Chairs of the international ambitions of retailers nexo Standards’ Retailer Working Group, continue to blossom. But for those looking to find out more about what nexo offers to keep up, the disjointed nature of the the retailer market. We take a deep dive payments acceptance market remains into the challenges facing retailers, the both prohibitive and problematic. role of the nexo Retailer Protocol and how the group’s work is benefitting the We can think of the point of sale (POS) market as split into two: payments acceptance ecosystem. high technical output. But with the support of its members and the active participants of its Technical Working Groups, this is one challenge that nexo Standards is determined to meet head on.

How has the payments space for retailers changed and what are the key challenges facing these players?

On the sales side, the POS software market is dominated by a few major software giants, along with a long list of specialised software providers, such as those delivering tailored solutions for the petroleum and hospitality sectors. Some retailers even choose to build their own bespoke system in-house. On the other hand, we have the payments side that processes the transaction from the customer. This is primarily split across the big international providers, but also a number of local support providers, namely financial institutions, that are needed for specialised implementations. Crucially, all these providers have proprietary protocols today. So, what does this mean for retailers? Firstly, it means integration of both sales and payments is a real pain. For those operating internationally, the costs and complexities of unique market and country implementation requirements has made deploying a unified platform across several countries a technical

26P A Y M 26 P AEYNMT ESN&T SC & A RCDAS R D S N E T W O R K

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– not to mention costly – challenge. For those operating locally, there is often no integration as it is too expensive.

The protocol, which is developed and maintained by the nexo Retailer Working Group, is designed specifically to link the sales system to the payments point The dominance of proprietary systems of interaction (POI) – whether that’s a has left all merchants, either local or physical terminal or the checkout part of global, vulnerable to vendor lock-in, an online shopping cart – with the goal to stunted international growth and operate seamlessly between, and remain stammered innovation, as they remain independent of, any specific platform. tied to the partners they have already integrated with. Crucially, the protocol also supports a wide scope of system architectures and Why did nexo decide to focus on can accommodate the requirements of supporting the retailer market? retailers of all sizes and manifestations from a big e-commerce player, to the Nexo is committed to supporting all local restaurant next door. In fact, we’re players across the payments ecosystem. proud to have already seen the protocol Retailers are at the front line of payments utilised by both. Today, a number of acceptance, yet their needs have merchants are already utilising the long been side lined. Only with the protocol across the globe. input and engagement of all players can we realise our vision of a truly In constant development, the protocol is unified, harmonised and fair payments already rich in features including cash acceptance ecosystem. back, reservation, installment and valueadded features such as loyalty and gift But it’s not just about helping retailers, cards, administrative services (such it’s about starting a dialogue between as notifications), and device services all players to achieve best practice for (such as printing or displaying). Also, everyone. as the management of the protocol messages is standardised, it guarantees It was obvious something needed to interoperability, thus preventing vendor be done to smooth the integration lock-in and promoting competition based process between the sales software on value-added services. and payment processor. Payment and sales are currently fragmented Being fully open and secure is nexo’s into two specialized industries, but ‘thing’. Its Retailer Protocol is based on with nexo retailer we are bridging the XML and JSON formats and can be used gap with standardisation. Not only with every software language – offering does the implementation of standards implementors total flexibility. Using the ease international operations, but it nexo protocol as an API also removes empowers retailers to release resource complexity when integrating between spent on payments integration and the sales software and the payment management to develop and deliver the application. This means there’s no need to new services demanded by consumers, integrate software libraries into the sales such as mobile payments acceptance software, simplifying initial integration and loyalty services. and allowing future updates to be made more efficiently. Going international too, Standardisation has helped smooth the the benefits are clear, as retailers can fragmentation prevalent across other realise a truly ‘plug-and-play’ approach. verticals and the payments acceptance industry is no different. Software vendors can also benefit from integrating the protocol into their Let’s take a deep dive into the tech offering, as it provides them with an easy – can you explain why the nexo way to deliver a simple to implement, Retailer Protocol was developed fully integrated payment solution to and what its purpose is? their retailer customers of all sizes. It

can create previously untapped new business opportunities too, such as selling integrated solutions to smaller merchant chains, like restaurants and fashion stores. For retailers, integration between the sales and payments side of operations will empower them to take back control of the transaction process, without the cost of proprietary solutions. What might an implementation usecase look like? Most POS setups in retail include a cash register (controlled by store staff), a payment terminal (where a shopper makes their payment), and a serial connection between the two (the messages we are standardising). A software library is embedded on the cash register that facilitates communication between the cash register and the payment terminal. Traditionally, the libraries are created and maintained by the company that facilitates the terminal, and a significant amount of setup is needed to load the library into the cash register software. As the cash register software is owned by another third party and is rarely updated, this means that retailers are unable to reap any immediate benefits from the latest library updates. For the terminal solution providers, creating and maintaining a software library that interoperates between the various cash register vendors and platforms is a cumbersome job, requiring huge maintenance. By using the nexo Retailer Protocol, POS developers can create a solution that is independent of any specific platform; able to be used across serial connections, local networks, and internet transports; and can support a message format with advanced features such as asynchronous notifications. Crucially, this removes the need to maintain these vast software libraries and integrate them into cash registers. Instead, payments made with a Terminal API

PCM | MONEY2020 SPECIAL EDITION

EXPERT INTERVIEW

become a simple request-response – with all informational events, such as notifying where the terminal is in the payments process, are communicated optionally, separately and using a standardised XML or JSON messaging format. Simplified roll-out and upgrades for retailers. Reduced maintenance and complexity for integrators and solution providers. Can you tell us more about the nexo Retailer Working Group and your involvement? The Retailer Working Group is responsible for developing and enhancing the nexo Retailer Protocol. The group comprises a growing number of experts from the payments industry and includes representatives from many nexo member companies. Uniquely, the group offers the retailer and POS market an opportunity to engage directly with players they don’t usually get ‘face time’ with, including card schemes, financial institutions, as well as PSPs and vendors. This is the beauty of industry standardisation organisations in action. What’s next for the Retailer Working Group? With a number of implementations underway and already developed in line with the protocol, our goal now is to ensure the next iteration of our protocol is accredited as an official ISO20022 protocol, in line with nexo’s other protocols, such as the Acquirer protocol. This should, we imagine, simplify implementation as the protocols will share common elements with other ISO20022 messages – namely the acceptor to acquirer messages. This should also reassure the industry that the long-term management and upgrade of the protocols will be in line with ISO20022. Again, its about making sure the work we do is never in isolation but in collaboration with the full ecosystem to advance payments acceptance and promote standardisation globally. 28

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Romain Loréal

Joël Marty

SOL U T IO N A RC H IT E C T

BUSINESS DEVELOPMENT DIRECTOR

Romain Loréal is a solution architect at Desjardins, the largest financial cooperative in Canada, and previously in France. He has extensive experience providing solutions to global retailers across payments, credit management, inventory control and anticounterfeiting, supporting their transformation and innovation. After spending a decade with global retailers and financial institutions, Romain is convinced standardization is the key to enabling innovation, realising greater efficiencies and delivering real added value.

Joël Marty is Business Development Director for transaction services for Spain, Portugal and Italy at Verifone. Verifone is the world leader in connected payment and commerce solutions. Joël has over 20 years of experience in the payments industry, holding both technical and marketing roles and operating internationally. Prior to his current role, Joël was responsible for the Development team delivering solutions for retailers, having interfaced hundreds of sales systems with the team’s payment solution.

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PCM | MONEY2020 SPECIAL EDITION

EXPERT INTERVIEW

Banking tailored to you I N T ERVIEW WI TH E D MASL AVE CKAS, F O U N D ER O F B U D PCM: Tell us about Bud. How did this idea come to be? Bud is the financial network. It’s a platform that combines account and payment aggregation, our machine intelligence and a connected network of financial service providers to help banks build a new breed of financial experiences for their customers. Across the world, people are taking control of their data and using it to create valuable experiences – our platform helps banks to be a part of this. Banks are well placed to be custodians of a person’s entire financial relationship, starting with accounts and extending into other sectors. If you’re the tool that enables a new experience, you’re the natural person to distribute products within that experience. 30

PAYM E N TS & C A R D S N E T W O R K

We started out in 2015 with a platform designed to educate people about fintech and the opportunities that the new breed of financial services can offer people. That platform laid the foundation for building out a marketplace and that in turn lead to our first Beta app. It was designed to demonstrate how we could connect people and products in a smarter way and served as a way illustrating the concepts we were talking about to our bank customers. Now we distribute almost exclusively through our bank partners’ apps. It’s still early days for us but we’re already getting to the point where we can co-create some great experiences and the pace is really starting to pick up now that Open Banking regulations are becoming more established in the industry.

PCM: Why is it called Bud? We’re really focused on helping people to have a better relationship with their finances. That was the whole reason for starting the company and when we thought about it, it all boiled down to being a financial friend for our users. “Bud” was the shortest way we could articulate that. PCM: Why is Bud needed? The modern financial system was designed to work under the constraints of the tech that was available to the people who designed it. I don’t think it was intentional but it’s brought us to the point where we have this system that can only really help people on its own terms. As a user you have to have to go through processes that exist because they’ve been around so long that they’re now so baked into the financial institutions that it’s really hard to change them. The problem is that this kind of system doesn’t work for a lot of people. It’s inflexible and it means that products have to be created with broad groups in mind because it’s really hard to

STARTUP SPOTLIGHT

personalise the experience. That’s why we’re necessary, we give banks the flexibility to think creatively about product creation and distribution, we help create experiences that are uniquely tailored to each individual and, in the process, we’re starting to build a system that can work for everyone. PCM: What makes it different? A lot of people are looking at aggregation and marketplaces. That’s great but it doesn’t really shift things on any fundamental level. Marketplaces still reward people who are active financial shoppers, they still sell the same products in more or less the same way. What does move things on is when you start to really embed the financial product in the experience. Take house-buying for an example. At the moment, people save up for a long time, then start looking for a house, then they go to a bank or a broker and apply for a mortgage – it’s disjointed and requires an immense effort on behalf of the wannabe buyer. How would that experience look if everything was properly connected? You’d have an app looking for opportunities to save you money, and with the capacity to move the saved money into more attractive savings products. You’d have the savings product linked to the mortgage market so you knew what you could afford and at any time. You’d have the app constantly looking for ways to maximise your creditworthiness and you’d be able to see at a glance how all your behaviours were affecting your ability to reach your goal. You can only do that with a really integrated network, that’s what makes us different. A network is more than a marketplace. It comes down to the fact that aggregation is fundamentally social and a marketplace, at its most basic, is a list of products that help us do things in our day to day life. The combination of the two allows us to do more together. That lense is helping us build something very different.

PCM: What were some of your biggest challenges for launching this business? In financial services regulation is always your big early challenge. It’s a really high barrier to entry and you need to take it very seriously. We’ve been through the FCA sandbox twice now and it’s been immensely valuable both times. There is no easy part about launching, running or scaling and ambitious business. PCM: What are three things you want people to know about your company? Firstly, that people are more powerful now than ever before. The global trend towards personal ownership of personal data is only going to accelerate and it will make the market more fluid than ever before. Empowered customers have more demands and financial services will not be able to ignore them. Secondly, that the future will be driven by collaborative experiences. If we acknowledge that things are getting more personalised then it’s a natural conclusion that you won’t necessarily have the best product for a specific customer. That shouldn’t be a problem because, as a bank, delivering collaborative products with other suppliers will become a normal thing to do. Finally, if you are a bank interested in helping your customers achieve their goals by leveraging the whole financial network, come talk to us. We believe that interconnectivity will be the solution that wins out in the end. Powerful customers demand better experiences, these will be delivered collaboratively and the network that connects all of this together is ready...

Ed Maslaveckas FOUNDER

An economics graduate, Ed founded Bud alongside his school friend George Dunning in 2015 via a period spent researching UK fintech for salesforce. The duo spent their first few months working from a couch in Hackney and have since grown the company to more than 30 people, raising in excess of £1.7m in the process. They are still based in Hackney.

Bud Bud are a tech company based in Hackney. Their team is comprised of astrophysicists, games developers, music producers, advertisers, fintech experts... and a few high flying finance professionals. They are the type of people that get excited by building the best technology that will drastically change the way people engage with their finances.

PCM: Do you have any announcements that you’d like to share? Not right now – but… If you’re at money 2020 in Amsterdam you should definitely try to check out Jamie Campbell’s session on Tuesday morning. We’ve got some big news coming. PCM | MONEY2020 SPECIAL EDITION

STARTUP SPOTLIGHT

f there was a Time Magazine award for asset of the year Bitcoin would be a strong contender for the accolade. Not since the advent of the credit card has a means of exchange attracted so much attention. The adoption of crypto currencies and the buzz around the potential of blockchain, has captured the imagination of individuals and business alike. While still in their infancy, cryptocurrencies are carving out their place in financial history.

which (almost 2 Billion individuals) do not have bank accounts or credit cards. These individuals are limited to the use of cash and even bartering. As the business world moves deeper into the digital and cashless arena, the poor will be excluded from more and more services and without access to a banking platform, they will never qualify for credit. Cryptocurrencies, are digital in nature, they do not need a physical infrastructure to support them, all people need is a mobile phone”

Banking the unbanked with Wirex BY PAVEL MATVE E V, CEO AT WIRE X

Pavel Matveev and Dmitry Lazarichev, the founders of Wirex instantly identified the business case for cryptocurrencies but also recognised that the infrastructure around the exchange of cryptos needed to be improved. The duo created a hybrid payments platform where cryptocurrencies and traditional money co-exist to so users can use both seamlessly. Aside the obvious benefits of cr yptocurrencies (securit y and costs) Matveev believes that the currencies and their underlying blockchain protocol could address one of the world’s largest headaches – helping the unbanked get onto a ubiquitous and cheap platform that will economically empower them. He says “current banking infrastructure creates a barrier for those in the developing world, the majority of 32

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The good news is, access to mobile phones is looking ver y healthy, according to the International Telecommunications Union's Facts and Figures for 2017, mobile phone subscriptions are expected to hit 7,740bn in 2018. Penetration rates for mobile subscriptions in developing nations is set to exceed 98% in developing nations and the least developed nations are seeing penetration rates of over 70.4%.

While commerce is increasingly moving into the cashless arena, we are not yet ready to fully reside in a virtual money world; traditional infrastructures are resilient. Sweden, who was tipped to become fully cashless by 2018 has not yet reached their cashless goals, however they are expected to win the race for a cashless society. According to Sweden’s central bank the proportion of cash payments in the retail sector fell from 40% in 2010 to 15% in 2016. Over 65% of consumers say they completely manage their financial lives without cash. In view of this, it should come as no surprise that Sweden has totally embraced cryptocurrencies and are among the leaders in the global bitcoin market. Sweden has a significant level of digital competence in the Fintech space and Stockholm is one of the largest FinTech hubs in Europe. According to stockholminvest.com they received 18 percent of all private placements in Fintech companies across Europe, attracting one fifth of the overall FinTech investments The other contenders in the cashless race are Canada, United Kingdom, France, United States, China, Germany, Japan and Russia. These are all countries that are key markets for Wirex.

Cards however are here to stay for the foreseeable future and this is why Wirex decided to add them to their offering. The new 2.0 version of the Wirex Visa payment card is contactless, it can be used on public transport, at According to industry analysts CACI, ATM’s and any location where Visa is access to banking on mobiles may available, there are over 40 Million out strip computer use by 2019. They merchants in over 200 countries. So estimate that 35 million people will now users can instantly convert their bank using their phone apps by 2023. crypto to fiat and use it to buy tea or tickets. Mobile money is increasingly gaining acceptance and momentum, so Perhaps the most significant innovation cryptocurrencies make a whole lot of Wirex has conceived, is their world first sense in this environment. Cryptoback™ rewards programme.

Wirex card holders will now earn 0.5% back in Bitcoin when they swipe or use their contactless cards in stores. Users who wish to spend their Cryptoback™ rewards can simply choose the “redeem” option in the app and they get credited to their Wirex Bitcoin Wallet.

funded from your bank account and you can top up using a debit, credit card or crypto wallet. Security is also a significant feature for us, with over 2 Billion in transactions since inception and having onboarded 1.5 million customers, we have never had a security issue. Another unique aspect of Wirex crypto wallets is that they Matveev says “we are extremely are on an open platform which means excited about this addition to our users can buy, sell and exchange their core offerings. Aside from the rewards, cryptos in or out of their accounts the fact that we pay them in Bitcoin without restrictions. means that crypto – curious people can start building up a portfolio of “We are leveraging our crypto cryptocurrencies. know-how to redefine the payments landscape and are constantly working Some other features of the Wirex towards more innovation in this space. Payment card include the ability We are looking forward to bringing to freeze the card in the app if its more innovations to the cr ypto misplaced and unfreeze functionality it environment and exited about the if it’s found. The card has a traditional future of this game changing currency” account number and sort code so it be ends Matveev.

Pavel Matveev C E O AT W IRE X

Pavel Matveev is CEO at Wirex and a FinTech expert with over 13 years of deep technology experiences gained from working within capital markets in senior roles at Morgan Stanley, BNP Paribas, Credit Suisse, Barclays Capital, to name just a few. He has led developer teams for international IT companies, worked as a senior solutions architect and holds an MSc in Computer Science.

Wirex Wirex is the leading hybrid personal finance platform merging blockchain tech and traditional finance. With Wirex you can take your money further. Our first product was E-Coin the world's most popular bitcoin debit card accepted by over 30 million merchants and can be used at over 25 million ATMs worldwide. E-Coin allows you to spend your Bitcoins virtually anywhere and hassle free.

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