ChangeGroup & Prosegur Change’s Post

I was in Canada recently and was shocked by how many small restaurants didn’t accept cash. Global cash use is slowly declining. Cash made up only 18% of U.S. transactions in 2022, falling behind debit and credit cards. This trend is becoming more common on every continent — especially in countries like Sweden, which is expected to become the first entirely cashless society. With such a long history of use, why is cash failing now? I believe the primary drivers are speed and convenience. At NMI, our research shows that 84% of consumers see speed and convenience as the number one reason for choosing a payment method. It isn’t rewards, fees, safety, or any other factor — it’s how quick and easy the payment journey is. That said, cashless payments aren’t convenient for everyone, particularly those who are underserved or unbanked. In my latest article for NMI, I explore how cashless payments are changing the landscape, the implications of a cashless economy, and how our industry can facilitate financial inclusion for everyone, even in a cash-free future. Read my full article here: https://bit.ly/44TxiqB

Two fintech companies, payme.uz and Click, have made more profit than many banks in Uzbekistan. Many people in Uzbekistan prefer Click or Payme to make online payments or transfer money to other people's cards. These two companies made a big profit in the first half of 2024. Click has closed its half-year operations with a net profit of 117 billion sums. Payme's net profit in the first six months of 2024 amounted to 113 billion sums. Their profit is greater than 22 out of 35 banks in Uzbekistan. Of course, it is not possible to get a complete overview of the differences between companies with different main activities. And all banks are not the same. For example, Smart Bank is the only bank that has no interest income. Its income consists primarily of commissions, service fees and other non-interest income. Five banks, such as Yangi Bank, Hayot Bank and Tenge Bank, made a loss in the six months of 2024. But some conclusions can be drawn from these statistics: 1. People prefer to use these two apps, Payme and Click, rather than the banks' apps, even if they receive cards from these banks. Banks cannot promote their own applications to the whole society. 2. People get used to online payments. Now it is a convenient way to make a payment. Just 10 years ago, it was considered a disadvantage for a person to receive their salary in the form of an online payment. Because you could not see an ATM in Uzbekistan. Now you can see ATMs in the streets, shops, and offices. The government's measures had a direct impact on these two fintech companies. This clearly shows that the government should grant more freedom instead of restricting it. This win-win solution is beneficial both for businesses that want to grow and for the government, which has an opportunity to collect more taxes and combat unemployment by creating more jobs. 3. The two companies' apps are used to avoid taxes for small businesses. This also could have an impact on the performance of these companies. This is because many small businesses usually ask consumers to pay via Click or Payme, and in most cases, people comply with this request. Even if business owners have a terminal machine, they do so to avoid taxes. (In the following table, you can see some banks that had a lower profit than Click and Payme).

https://lnkd.in/eBZPnjhA #ECB "Introduction #Retail #payments – those made between consumers, businesses and public administrations – are undergoing profound changes that are reshaping the #European #payments landscape. Digitalisation is playing a major role in this, with a trend towards the increased use of #cashless payment #instruments, instantaneity and a truly seamless payment #experience. Numerous #innovative payment solutions are being developed and offered. These are made possible through the use of new #technology and are further characterised by the need to enhance global and #crossborder use cases, as well as the consideration that solutions can be rolled out globally.[1] These trends and developments are not only driven by existing players in the payments market. The payments business also attracts start-up firms, as well as established firms that are new to payments. Developments in retail payments require multi-faceted actions from a #Eurosystem #perspective to ensure a safe, integrated, innovative and #competitive #euro #retailpayments market, with continued access to public #money. The Eurosystem – the #EuropeanCentralBank and the national central banks of those EU Member States that have adopted the euro – has a mandate to promote the smooth functioning of the payment system from a holistic perspective. From the perspective of retail payments, the smooth functioning of the payment system means ensuring that, in their tangible interaction with the euro, people and businesses are able to make safe and efficient payments and thus their #trust in the currency is maintained. To this end, the Eurosystem is responsible for issuing public money, currently in the form of #cash, which may possibly be complemented by a digital version, i.e. a #digitalEuro. In addition, the Eurosystem can act: (i) as a catalyst for #change, promoting #efficiency in the field of retail payments; (ii) as overseer, setting retail payment #standards and rules and ensuring #compliance; and (iii) as an operator, having the possibility to set up public infrastructures. The trends at work in the retail payments landscape have the potential to bring benefits to consumers and businesses alike. However, they also carry risk and will require the Eurosystem to take action in its different capacities. This article looks at the changing retail payments ecosystem (Section 2), before turning to the Eurosystem’s multi-faceted policy response (Section 3) and providing perspectives on the way ahead (Section 4). 2 A changing retail payments ecosystem... ECB "The Eurosystem policy response to developments in retail payments" Read & learn more https://lnkd.in/eBZPnjhA

The payments industry is a crucial part of the UK economy and the Future of Payments Review led by Joe Garner examined the current position for consumers making retail payments and what should be done to improve the payments experience- find out more 👇 #payments #foxwilliams

Cashless payments are convenient, until they aren’t! If the underlying systems are working properly, it is easy to “tap and pay”. However, that “if” is huge. The PO scandal highlights how bad things can get if the “system” isn’t working properly. A totally cashless economy opens the doors to more of such disasters. In addition, cashless payments cost shopkeepers money - someone has to pay for the system. We must avoid confusing “convenience” with “optimal”. Oh, and of course there’s the possibility that a “bad actor” - an enemy power - could enter the system and totally (I mean totally) disrupt the economy, instantly. Imagine the chaos in the UK if the cashless payment system was disrupted by cyberattacks. A week without cashless payments would be like a week without water!

At a time when the fintech industry is struggling to deal with the twin blows of tough regulatory action and a funding winter, companies are yet to receive the state-committed subsidies for promotion of digital payments for the current fiscal. After making the merchant discount rate (#MDR) on payments made via #UPI and RuPay debit cards zero, the government has been giving a subsidy to banks to compensate for the revenue lost. While the allocation of funds typically happens between Dec and Jan, this year the announcement is pending, industry insiders said. With the general #elections round the corner, industry is worried the allocation and subsequent disbursal of funds could be further delayed. Jargon buster: MDR stands for the price merchants pay to their banks for the digital payment infrastructure service. Read the full story by Pratik Bhakta on ETtech here https://lnkd.in/gR4tDQy5

📢 Almost sixty years since the launch of the UK's first credit card, EY research highlights the benefits that card payments have brought to the UK economy.   Today more than half of all UK consumer purchases are made via card payment. Our latest report with Mastercard explores how the UK's high rate of card adoption has:   💳 Boosted consumer and business activity via easier and safer payments 💳 Increased UK GDP, job opportunities and tax revenues 💳 Nurtured innovation as data offers new insights and fuels fintech   You can read more about our findings in today's @CityAM article by Kelly Devine: https://lnkd.in/eX4ESRqV   Or read the full report here: https://lnkd.in/e_kGjmQD   #CardPayments #fintech #DigitalBanking #BetterWorkingWorld

While we approach the festive season and the end of the year, we start seeing reflections on the year almost gone and view points on what 2024 will bring to the wonderful world of payments :-) !   Cash usage in UK has actually risen for the first time in a decade, arguably showing consumer confidence in cash for managing turbulent economic times:   https://lnkd.in/gCFdeCPv   To the above sentiment, many believe we are not out of the woods yet and European Payments Firms will struggle in 2024   https://lnkd.in/gVvR-Fr7   At FN1X we believe that these statistics and predictions are indeed opportunities to show how payment instruments can truly support financial education and money management from a very early age. Furthermore, 2024 will be another tough year, but again an opportunity for solid propositions and firm to rise and establish themselves as market leaders.    

Today we will tell you more on the #payments ecosystem in #Finland from our white paper, "Key Players in the EU Payments Landscape 2023": https://lnkd.in/eFsQKXP8 Like the other Nordic countries, Finland has very low cash usage and a strong preference for electronic payments.    The Finnish banking market is dominated by four major players: Nordea, OP Financial Group, Danske Bank and  Kuntarahoitus – MuniFin. Together, they hold around 75% of the market share. Next to these four leaders are local players such as Aktia, S-Pankki, Ålandsbanken Abp and POP Pankki -ryhmä / POP Bank Group.   Enfuce is the “one-stop shop for card issuing and payment processing” and provides payment and banking services for banks, fintechs and merchants.   Paytrail, which is part of Nets Group, is Finland’s local payment solution service. This payment institution currently serves more than 10.000 merchants.   The EMI Holvi offers online payment accounts and issues Mastercard cards for businesses. Zevoy is an expense management company present in both the Nordics and the Baltics.   When shopping online, the Finns’ preferred payment methods are online bank transfers through Paytrail and Trustly. These methods are followed by the classic international credit and debit card brands Mastercard and Visa, followed by the Swedish BNPL, Klarna and the MobilePay app (used by 20% of the Finnish population).    Finally, Siru Mobile is another mobile payment method based on carrier billing.   Want to know more about the Finnish payment ecosystem? Download our report our report “Key Players in the EU Payments Landscape 2023” to find out: https://lnkd.in/eFsQKXP8

And the #payments innovations keep coming! Take a look at some more trend that we predict will shape the year ahead. What other trends are you noticing in the payments landscape? https://bit.ly/3udLuNd