Smartphone card payments start-up company Payleven will start accepting chip-and-PIN transactions in Europe from 15 October, enabling small and medium-sized enterprises (SMEs) to accept payments from major credit and debit cards via smartphones. Its competitor, Elavon, has announced the expansion of its European mobile chip-and-PIN service to Ireland.
Payleven, based in London and Berlin, announced its chip-and-PIN technology at the recent App World show in London. The company said that it uses a secure device linked to a smartphone or tablet via Bluetooth, enabling customers to slide their cards into the device and enter their PIN on a keypad. Transactions are as secure as on a traditional card terminal and merchants are fully protected, said Payleven, which plans to offer chip-and-PIN transactions in the UK, Germany, Italy, the Netherlands, Poland and Brazil.
Payleven co-founder and chief technology officer (CTO), Rafael Otero, said that enabling chip and PIN is important, because until now the company could only accept transactions using magnetic stripes. In the UK, around 85% of the 4 billion card transactions that take place annually involve either debit cards or Visa-branded cards. Visa only accepts chip-and-PIN payments, while debit cards transactions in the UK require the payments processor to accept a PIN.
Without chip-and-PIN capabilities, a mobile payment (m-payment) terminal in the UK can only accept the 15% of transactions that rely on either the magnetic stripe or a combination of a chip readout and a signature (chip-and-sign) for authentication, added Otero.
In a separate announcement, Elavon said that it has extended its smartphone chip-and-PIN service to Ireland. The service was launched in the UK in January.
On day one of Sibos 2017, Stefan Dab, The Boston Consulting Group led a conversation examining the future of correspondent banking, and specifically the pain points corporate treasurers face in their cross-border payments operations and where technology can be developed to alleviate these.
Rising interest rates, excitement around blockchain use cases and cross-border payments were all hot topics at this year's AFP conference in San Deigo.
Today CGI and GTNews have announced the launch of the fifth annual Transaction Banking survey report, which offers which offers critical insight into the corporate-to-bank relationship.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.