April 29, 2019

Sainsbury's has launched what is says is the first till-free grocery store in the U.K. at its Holborn Circus location in London, where customers can check out without a cashier, according to a company release.

The retailer will test its SmartShop Scan, Pay & Go technology at the location for three months before making adjustments and rolling out the service to a wider number of stores.

All customers using the store will be able to scan their items with the SmartShop Scan, Pay & Go smartphone app by scanning a QR code, which confirms that they paid for a particular item. No waiting in line will be necessary.

"We know our customers value their time and many want to shop as quickly as possible — technology is key to that," Clodagh Moriartty, chief digital officer at Sainsbury Group, said in the announcement. "This is an experiment rather than a new format for us — it hasn't been done in the U.K. before and we're really excited to understand how our customers respond to the app experience."

Store workers will be free to help customers and stock shelves; a help desk will be available to assist customers who want to pay with cash or cards. The store is currently about 82 percent cashless, according to the company.

The store is configured for customers on the go, featuring drinks, snacks, breakfast pots, pastries and sandwiches that can be quickly picked up and scanned. Customers can get coffee and other hot drinks through a self-service coffee machine.

Sainsbury says it was the first U.K. grocer to bring in-app mobile payments to its stores starting last August. The technology is currently available in eight stores.

Topics: In-App Payments, Mobile Payments, Region: EMEA, Retail

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April 29, 2019

The European Commission has announced its acceptance of legally binding 5-and-a-half year commitments from Mastercard and Visa to cut interregional interchange fees by approximately 40%.

Interregional interchange fees, also known as interregional multilateral interchange fees, are applied to payments made when a credit or debit cardholder from outside the European Economic Area makes a purchase inside the area — for example an American tourist dining at a restaurant in Belgium.

"Mastercard and Visa have committed to significantly reduce the interchange fee applied to payments made in Europe with cards issued elsewhere," Commissioner Margrethe Vestager, who is in charge of EEA competition policy, said in the announcement. "The commitments, which are legally binding on Visa and Mastercard, will reduce the costs borne by retailers for accepting payments with cards issued outside the EEA."

Within six months, Visa and Mastercard will lower the fees for in-store purchases by 0.2% of the value of the transaction for debit cards and by 0.3% for credit cards. For online purchases, the companies will lower fees by 1.15% for debit cards and 1.5% for credit cards.

Vestager said that the agreement, combined with a January decision on cross-border payments, will serve to lower prices for European retailers to do business, which ultimately will benefit consumers.

When a consumer makes a purchase, the bank of the merchant — i.e., the acquiring bank — pays a multilateral interchange fee to the bank of the cardholder — i.e., the issuing bank. The acquiring bank passes the cost of the fee to the retailer, who passes it on to consumers.

The EC first informed Mastercard of its concerns about interregional MIFs in July 2015 and informed Visa in 2017. The concern was that the fees might increase prices in an anticompetitive manner for customers of retailers accepting cards from outside the region.

Topics: Bill Payment, Region: EMEA, Regulatory Issues

Companies: Visa, MasterCard

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April 29, 2019

Western Union Co. announced the expansion of its digital money transfer service in the United Arab Emirates, meaning that it is now live in seven Middle East countries, the others being Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar.

The service allows customers to transfer funds internationally using the Western Union mobile app and a relaunched Western Union website. Customers can make direct funds transfers from UAE-based bank accounts connected to the service. Most of the Middle Eastern countries served have gone live within the past 12 months, according to a spokesperson.

"Our commitment to the MIddle East is a step forward to a more prosperous and globally connected future," Hikmet Ersek, president and CEO of Western Union, said during the company’s launch ceremony in Dubai, according to a company release. "Our digital services support globally integrated living without leaving anyone behind."

To the first use of the Western Union online service, customers must first register at westernunion.com and then verify their identity in person with a government-issued resident ID card at an Al Fardhan Exchange agent location. Customers receive notification that they can use the online service once their identity is verified.

Western Union offers digital funds transfer in 60 counties, and the company's mobile app is live in 35, according to the spokesperson. Retail locations are available in 200 countries and bank payout is available in 100 countries.

Topics: Mobile Apps, Money Transfer / P2P, Region: EMEA

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April 26, 2019

New York State Attorney General Letitia James said her office obtained a court order against iFinex Inc., the operator of Bitfinex virtual asset trading platform and Tether Ltd., which issues 'tether' virtual currency, amid allegations they defrauded investors of hundreds of millions of dollars.

An order from the Manhattan Supreme Court says the companies can no longer issue U.S. dollar backed assets amid an ongoing investigation and orders the companies not to destroy any documents.

"Our investigation has determined that the operators of the Bitfinex trading platform, who also control the tether virtual currency, have engaged in a coverup to hide the apparent loss of $850 million of co-mingled client and corporate funds," James said in a press release. "New York State has led the way in requiring virtual currency businesses to operate according to law."

According to court filings, the companies no longer have access to $850 million in co-mingled client and corporate funds  that they turned over to a Panamanian entity called Crypto Capital Corp. without any written agreement.

The AG alleges that Bitfinex and Tether executives, in order to fill the gap, engaged in a series of conflicted actions where Bitfinex gave itself access to $900 million of Tether's cash reserves, which Tether told investors had backed the virtual currency on a '1-to-1' basis.

Court filings show that Bitfinex has already taken about $700 million of Tether's cash reserves, which prosecutors say Bitfinex was treating like a slush fund.

Bitfinex officials were not immediately available for comment.

Topics: Bitcoin, Mobile Payments, Regulatory Issues

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