Klarna Granted Full Banking Licence in Sweden

Klarna has announced it has been granted a full banking licence by Finansinspektionen, the Swedish Financial Supervisory Authority.

Obtaining a banking license will enable Klarna to broaden its product portfolio for customers and merchants. The license to operate as a bank comes into effect starting from the date of the decision.

Klarna is a Swedish ecommerce company, founded in 2005 in Stockholm, which provides payment services for online storefronts. Currently it has 60 million customers, serving over 70,000 merchants across the world. Their core service is to assume stores’ claims for payments and handle customer payments.

Ovum Research: PSD2 to Cause a Decline in Online Volumes by 2027

Ovum, a market research and consulting company, has released a study that shows how PSD2 will drive single card payments down by 37% until 2027.

The research Instant payments and the post-PSD2 landscape, commissioned by Icon Solutions, provides insights into how PSD2 will lead to a decline in card transactions and an increase in frictionless payment methods such as Instant Payments in Europe.

The new European Payment Service Directive will cause ecommerce card usage to stagnate at current levels of around EUR 260 billion annually, instead of hitting the EUR 411 billion mark predicted without PSD2. On the other hand, the directive will boost frictionless payment methods, like Instant Payments and ewallets, which are expected to overtake cards.

As ecommerce card payments decrease by 37%, digital wallets and Instant Payments will become the two dominant payment methods as early as 2024, absorbing an average of 29% of expenditure across Europe.

The shift from ecommerce to digital channels will pressure merchants into adopting an omnichannel approach and to support new payment methods, the study shows.

The research, conducted by Ovum and commissioned by Icon Solutions, covers ten Europe-based markets and uses data from a European payments database, built from several sources including, national banks, national statistics agencies, and payments associations.

Paymentwall and Tencent Make WeChat Pay Available Globally

Paymentwall, a global payment provider, and Tencent have teamed up to make WeChat Pay available around the world.

WeChat Pay has over 600 million active users and processes USD 1.5 trillion in Chinese digital payments, which accounts for 30% of all online transactions made in 2016. Through the integration with Paymentwall, merchants in Europe, the US, Latin America, Southeast Asia and the Middle East will be able to process WeChat payments.

The payment provider supports over 150 payment methods around the world, and merchants can gain access to all of them through an API integration. Similarly, business owners do not have to establish an entity in China to accept payments through the Tencent app.

Paymentwall supports worldwide payments with credit and debit cards, mobile payments, e-wallets, bank transfers, prepaid cards and connects global transactions from 190 countries.

Fiserv Announces More Banks to Join Zelle Platform

Fiserv has announced that several banks and credit unions will join Zelle, a P2P payments network from Early Warning.

Citizens Bank, Dollar Bank, First National Bank of Pennsylvania and SchoolsFirst Federal Credit Union will join the P2P network through Turnkey Service provided by Fiserv. Previously announced clients include Ally Bank, Bank of the West and BECU.

The Zelle payments network allows customers to send funds from one bank to another using only a recipient’s email address of mobile number. The Turnkey solution by Fiserv centralizes all the P2P services into a single platform.

The Digital Person-to-Person Payments in the U.S.: The Competitive Landscape report by Aite Group shows that financial institutions held 83% of the digital P2P market share in 2016, while alternative payment providers had 17%. The report has also revealed that in 2015 cash and checks were the preferred method of American consumers for P2P payments, highlight that there is room for online payments expansion.

Moneytree to bring Japanese banking revolution to Australia

Moneytree, the business that has been able to create a permission-based, data sharing platform, is bringing its platform to Australia.

Moneytree’s alliances with Japanese banks has positioned it to provide an open-API regime, which is in line with some the PSD-2 goals in Europe, and the Australian government’s wish for open banking in the Australian marketplace.

See the AB+F interview with Paul Chapman, Founder, Moneytree here.