Betaaljournaal 25

This is already our last Betaaljournaal, in an eventful payment year with many different activities and milestones. This edition covers some of these, with important new developments, including for SPAA and Instant Payments, in the processing of deposited cash and for the Thuiswinkel Market Monitor.

Accessibility remains a leading topic and we underlined this last month with a well-attended and successful Annual Conference, entitled Time for Accessibility. We enjoyed meeting with many of you at the event. You can read more about it in this newsletter.

Ahead of the conference, our General Assembly appointed two new board members. John Visser succeeded Gerjoke Wilmink as independent board member, nominated by the Consumentenbond, and Maartje Cremers (Knab) replaced Daniel Köhler (Triodos), on behalf of small banks.

We are very pleased to welcome Revolut as a new member of the Payments Association before the end of the year.

I wish everyone a merry Christmas and a peaceful New Year. Next year I hope to see you back full of good intentions and in good health.

Gijs Boudewijn, algemeen directeur

 

• Update on the Accessible Banking programme
• ECB publishes updated retail payments strategy
• Further shift from POS to online payments for Black Friday and Sinterklaas
• Update on Debit Card Acceptance
• Successful completion of Copper Kettle project: redesign for depositing and ordering cash
• EPC publishes business rules for SPAA fee model
• Online consumer spending increases, mainly due to run on travel bookings
• Provisional agreement on Instant Payments Regulation
  • Information session in January 2024
• Invitation: introductory course on ‘Legal aspects of payment transactions’
• Member discount for conference Future of Payments
• Association news
• Agenda

Update on the Accessible Banking programme

So much is happening within the Accessible Banking programme that we maintain a separate website about it, with its own newsletter (in Dutch) for which you can sign up. Here are some highlights:

• By popular demand, in cooperation with DigiHandig, we now offer the possibility to practice mobile banking in DigiHandig’s mobile app, as often as the user needs. The exercises are for anyone who thinks mobile banking is scary or difficult. Users can freely try it themselves in the practice app, and then ‘for real’ with the app from their own bank.
• The DigiHulplijn (0800-1508) is a free support line that offers telephone support to people who have difficulties with digital services. This service was already receiving questions on everyday banking matters. From now on, the support line will work closely with banks, the Dutch Banking Association and the Dutch Payments Association to answer these questions even better. This complements the support by phone provided by individual banks.
• The four major banks participating in the programme invited target groups and their representatives, to watch and listen behind the scenes in their call centres. Some 40 invitees watched along. There was ample opportunity during ‘listen-in’ sessions to engage in conversation and increase mutual understanding.
• The topic of the Payments Association’s Annual Conference was accessibility. It featured the Accessible Banking programme and innovations that can promote accessibility. You can view all presentations, photos and videos from the event on our website.

 

ECB publishes updated retail payments strategy

The ECB recently updated its retail payments strategy. The strategy remains focused on strengthening the European payments market with pan-European retail payment solutions and on enhancing the Single Euro Payments Area (SEPA).

A digital euro could also contribute to these objectives in several ways, through higher efficiency levels and strategic autonomy and robustness, according to the ECB. Moreover, a digital euro could support the digitisation and innovation of retail payments. A digital euro could also provide a pan-European payment solution, based on existing industry standards, components and technologies. It is unclear whether that is a realistic option.

Since 2020, many external developments have impacted the payments ecosystem. In particular, the Russian war against Ukraine, increasing cyber threats and the heavy reliance on electronic payments, highlight the importance of increased resilience of retail payments. This is a new goal of the ECB strategy.

Read more about it in Eurosystem’s retail payments strategy.

 

Further shift from POS to online payments for Black Friday and Sinterklaas

Although card payments at physical points-of-sale experienced a sharp upturn after two difficult COVID years in 2022 and early 2023, this year they didn’t surpass last year’s levels for Black Friday and Sinterklaas. The number of online payments with iDEAL during these shopping days was roughly 10% higher than last year; this was also the case in the first 10 months leading up to November. The shift from POS transactions to online transactions that accelerated during the various COVID lockdowns thus seems to be continuing for a while.

For the first time it seems that December will not set a new yearly absolute pin record. That honour is likely to be retained by the month of June this year.

Also read our press release on card payments around black friday and sinterklaas

 

Update on Debit Card Acceptance

Supervised by the Payments Association, the card payments infrastructure was made fit for acceptance of new debit cards from the Visa Debit and Debit Mastercard brands earlier this year, which are now issued by some of our small members. Activating these renewed debit cards on all POS terminals of Dutch merchants is the final phase of this migration. Currently, more than 90% of all terminals have been updated to accept renewed debit cards at favourable debit card terms. The actual acceptance rate is a lot higher at 98% because terminals already accepting credit cards did not need to be updated.

Points of sale where payments cannot yet be made with renewed debit cards are mainly in the SME sector. This sector still uses relatively many outdated Verifone Vx570 terminals that need to be completely replaced. Merchants with these outdated terminals tend to postpone replacement until they run into problems. The Payments Association has therefore called on them to replace their outdated Vx570 terminal as soon as possible.

Furthermore, there is a relatively small number of unmanned ticketing machines in the parking industry that have yet to be fitted with new software to accept renewed debit cards. The Payments Association recently brought this to the attention of parking operators through their trade association.

In the Dutch card payment chain, more and more Visa Debit and Debit Mastercard transactions are being processed. Renewed debit cards are used by many foreigners but also by an increasing number of Dutch people. Triodos, Knab and Van Lanschot recently introduced renewed debit cards. Earlier, Bunq, N26, OpenBank and Revolut had done so.

The issuance of renewed debit cards recently revealed some acceptance problems. Under the direction of the Payments Association, these problems are being addressed and resolved by banks, card brands and terminal suppliers so that renewed debit cards can be issued on a large scale.

 

Successful completion of Copper Kettle project:
redesign for depositing and ordering cash

In addition to depositing and withdrawing cash via Geldmaat ATMs, retailers can also deposit and order cash (notes and coins) at a cash processor or carrier such as Brink’s. The cash processor performs most of the operational processes, takes care of the administration and reports on it periodically to other parties in the cash chain. Although these activities are largely outsourced to processors and carriers, the banks involved remain responsible and are bound by AML laws. Among other things, they have to check the origin of deposited cash.

The expiration of contracts with chain parties made it necessary to redesign the clearing function for handling cash deposits and orders by Brink’s. The clearing involves processing transaction information for banks’ administrations. It was decided to perform the clearing for Brink’s through a partnership of ABN AMRO, ING and Rabobank (‘The Community’), which had previously been set up to perform the clearing for Geldmaat. As an impartial organisation, the Payments Association was asked to manage the project which was named Copper Kettle, named after an Asterix and Obelix comic story.

The implementation that started on October 23rd was successfully completed and The Community took over full clearing for Brink’s. On December 7th, the project’s steering committee discharged the project team and the project could be formally closed. From now on, the specifications are maintained by Geldmaat. This brings an end to a project that ran for more than two years, in combination with two earlier phases that were also coordinated by the Payments Association (named NHTO and DGV-2).

With the introduction of Copper Kettle, a sound foundation has been laid for the current and future handling of cash in the Netherlands.

 

EPC publishes business rules for SPAA fee model

The European Payments Council (EPC) has published the business rules for a fee model of the SEPA Payment Account Access (SPAA) scheme. This marks an important step in the further development of Open Banking in Europe.

SPAA includes rules and agreements for account information services and value-added payment initiation services (premium services). These services build on PSD2, which describes ‘free’ basic services. Premium services can be offered by account providers (usually banks) to parties licensed to offer payment or account information services. With the publication of the fee model, these service providers can start to develop interesting business models.

 

Online consumer spending increases, mainly due to run on travel bookings

In the third quarter of 2023, Dutch consumers spent €7.44 billion online. This is 4% more than in the same quarter of 2022. This growth was due to an increase in online spending on services (+16%), driven by growth in full vacation bookings (+32%) and in individual flight and accommodation bookings (+20%). Total online purchases are fairly stable at 81.7 million compared to Q3 2022 (+1%). The online share of the total retail market remained the same. Like last year in Q3, 29% of all consumer spending was spent online and 11% of all purchases were made online.

When it comes to paying for online purchases, it is noteworthy that the share of iDEAL has increased relatively much (+4%) and this was not at the expense of any one specific other payment method.

Our members will receive the usual report and from now on. They will also have access to an online dashboard via their Infonet account. This dashboard offers more detailed information about developments in recent years, including the ability to delve deeper into specific branches or payment methods. Please note, access to this dashboard requires logging in with an Infonet account and password.

 

Provisional agreement on Instant Payments Regulation

The European Commission, Council and Parliament reached a provisional agreement on the Instant Payments Regulation on 7 November 2023. To reach a final agreement, the European Parliament and the Council must also reach an agreement within their own institutions; Parliament has already approved the proposal. The regulation aims to make euro instant payments accessible to all citizens, businesses and institutions in the EU and EEA. The regulation requires payment service providers offering regular credit transfers to also offer instant payments, as well as a Confirmation of Payee service (called IBAN-Name Check in the Netherlands). Payment service providers are expected to comply by the end of 2025 at the latest. The content of the bill is discussed in more detail in an earlier press release.

In the Netherlands, instant payments have already been available at all retail banks for several years. Therefore, Dutch consumers will not notice any difference for domestic transfers. However, all transfers to other European countries will also become lightning-fast. If you want to read more about instant payments and their opportunities, read our specialists’ articles on instant payments.

Information session in January 2024

The Dutch Payments Association will organise an information session on the Instant Payments Regulation in early 2024. This session will focus on the impact for banks, payment institutions and electronic money institutions and the approach needed to comply with the obligations.

 

Invitation: introductory course on ‘Legal aspects of payment transactions’

On Friday 9 February 2024, the Erasmus School of Law in Rotterdam, in cooperation with the Dutch Payments Association, offers an introductory course on the legal aspects of payment transactions. This one-day course provides an overview of the latest regulations and developments in payment transactions, such as PSD2 and the Wire Transfer Regulation.

The course is designed for lawyers, compliance officers, and payment services professionals. Among others, director Gijs Boudewijn of the Payments Association and Emanuel van Praag, professor at the Erasmus School of Law and attorney at Kennedy Van der Laan, offer valuable insights into topics such as security, fraud and the Dutch Anti Money Laundering and Terrorist Financing Act (Wwft).

Cost: €600 excluding VAT, including course materials and lunch.

Visit our website for more information and registration

 

Member discount for conference Future of Payments

Attend the 24th edition of the Future of Payments conference on 7 March 2024 at the Beurs van Berlage in Amsterdam. Bringing together more than 200 payments professionals, this event is the perfect opportunity to discuss the latest trends and challenges in payments. Topics such as the impact of digital currencies and A.I. will be covered this year. The conference is a platform for everyone involved in the future of financial transactions.

Exclusive discount for members of the Payments Association

As a member of the Dutch Payments Association, you can benefit from a special 20% discount. Register before January 8th and pay only €680 excluding VAT, instead of €850.

Even more discount for Young Professionals

Are you under 30 and working at a financial institution? Then you can attend the conference at a much lower rate of only €99 excl. VAT. Seize the opportunity to expand your network and deepen your knowledge. Places are limited, so register quickly.

 

Association news

Revolut recently joined Betaalvereniging Nederland as a new member. Revolut offers accounts with Dutch IBANs and provides payment cards from both Visa and Mastercard. Welcome Revolut!

 

Agenda

• 15 January – Webinar on Accessible Banking
• 16 January – Members’ meeting on Instant Payments Regulation, Gustav Mahlerplein 33-35
• 9 February – Legal aspects of payment transactions, Gustav Mahlerplein 33-35
• 4 March – Stakeholder forum, Amsterdam
• 7 March – Future of Payments, Beurs van Berlage
• 17 March – ISO 20022 migration

 

Member Bulletins

In addition to this Betaaljournaal, the Dutch Payments Association issues Member Bulletins. These bulletins usually appear a few times a month and relate to a specific topic. If you are a member and you do not yet receive these bulletins, you can subscribe to the mailing list via secretariaat@betaalvereniging.nl.

 

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