Eservglobal Share Discussion Threads

[sheep_herder] 03/5/2018 11:26

I think it's great they're talking about Mastercard Send on the CC. But am I the only one who pictures Terry Tibbs talking here, "So today I can go to the bank and go there and say I can meet your B2B needs. You want them through ACH and direct debit, talk to me. You want them through virtual cards, talk to me. You want them through commercial cards, talk to me. You want them through any aspect, I can help you.". :-D

[celeritas] 03/5/2018 08:25

Mastercard Send gathering momentum.

[lomantang] 02/5/2018 23:56

The President and CEO of MasterCard, Ajay Banga, said in the 1Q 2018 Earnings Conference Call in the US a few hours ago that for cross border B2B payments MasterCard Send, HomeSend and Vocalink is the killer app. Thats how strategic HomeSend is to MasterCard.Here is the quote:'Then there's the third aspect, which again somebody asked me about it, the B2B Hub and all the work in the accounts payable place. The idea there is to streamline accounts payable which otherwise has over the years become more and more of a nightmare to most people.
There's lots of people you're buying from, lots of people you're paying to. Trying to reconcile those two together and find a way to ensure that complicated payments are reconciled appropriately and don't leave you with enormous issues at the end of the cycle as well as providing access to easy credit. That kind of stuff is what the Mastercard B2B Hub can help with.
We don't provide the credit but we can help enable the efficiency of the accounts payable space. And then the last one which we're actually quite focused on and which shouldn't be the last but it's just that way I'm talking about it is actually capturing cross-border B2B payments. That's where Mastercard Send and HomeSend on the one hand combined with Vocalink on the other is to me the killer app.'

[lomantang] 02/5/2018 23:56

The President and CEO of MasterCard, Ajay Banga, said in the 1Q 2018 Earnings Conference Call in the US a few hours ago that for cross border B2B payments MasterCard Send, HomeSend and Vocalink is the killer app. Thats how strategic HomeSend is to MasterCard.Here is the quote:'Then there's the third aspect, which again somebody asked me about it, the B2B Hub and all the work in the accounts payable place. The idea there is to streamline accounts payable which otherwise has over the years become more and more of a nightmare to most people.
There's lots of people you're buying from, lots of people you're paying to. Trying to reconcile those two together and find a way to ensure that complicated payments are reconciled appropriately and don't leave you with enormous issues at the end of the cycle as well as providing access to easy credit. That kind of stuff is what the Mastercard B2B Hub can help with.
We don't provide the credit but we can help enable the efficiency of the accounts payable space. And then the last one which we're actually quite focused on and which shouldn't be the last but it's just that way I'm talking about it is actually capturing cross-border B2B payments. That's where Mastercard Send and HomeSend on the one hand combined with Vocalink on the other is to me the killer app.'

[allstar4eva] 30/4/2018 15:24

Good to see signs of life here...

[nurdin] 30/4/2018 15:16

I am holding on...looks like things are turning for the better

[mad foetus] 26/4/2018 16:46

I sold out here a while back but it looks like buyers are getting interested again. Good luck holders.

[fillipe] 08/4/2018 14:56

SCSW have a very favourable mention on ESG, in their April edition just out this current weekend, also reminding us of finnCap's tp of 20p.

f

[hibberts] 29/3/2018 16:35

03/28/2018 | 06:21am BST
Cards overtook cash in 2016 as the most popular form of paying for goods in shops but, soon enough, plastic is expected to face a challenge itself from direct bank transfers.

While cash will take a lower slice of the payments market, it is unlikely to be replaced entirely, according to Andrew Cregan, Policy Advisor on Payments and Consumer Credit at the British Retail Consortium (BRC). Instead, cash and cards will coexist and will be joined in a couple of years by a new form of payment direct from a customer's account.

Cregan believes that this way of allowing consumers to pay a retailer direct, straight from their bank account, will be readily deployed by retailers because they have been angered by how the major card schemes, such as Visa and Mastercard, have behaved recently. "The EU has acted to cap the charge from a customer's card issuer, often their bank, and this has been used as justification for preventing retailers passing on card fees to customers," he says.

"The trouble is, the card schemes' fees weren't capped and so they've raised their charges outrageously over the past couple of years to a point where they're on course to negate any of the gains made through curtailing the card issuer's charge."

Convenience balancing act There is, however, an alternative on the horizon. The EU paved the way for a new type of payment at the beginning of the year with the Payments Services Directive 2 (PSD2). By allowing companies to register as a Payment Initiation Service (PIS), a new direct channel has been created to offer customers a direct way to pay."

This could represent a far more convenient means for customers to pay for their goods, which aligns with the current trend of removing the physical presence of a card at a cash register, even if it is being used in the background.

"People are moving towards Andrew Cregan Policy Advisor, Payments and Consumer Credit BRC contactless payments and mobile wallets, which move them away from presenting the card and typing in a PIN," says Cregan.

"Of course, even if you're using Apple Pay or Google Pay, your payment is still ultimately made by card; it's just a more convenient way of presenting it. So, we think that, in the long-term, this trend will continue and customers will increasingly make payments without the need for a card at all."

Easier for consumers and retailers The provision for a PIS to allow consumers to pay a retailer as easily as a friend in their online banking payee list will be a win for both customers and retailers, Cregan says. The public wants convenience, so, not having to carry cash or a card will be well-received. Retailers, on the other hand, are keen to reduce transaction fees. For this reason, it is likely the new direct payment system will be supported through retailers offering rewards and incentives.

"If this is done collaboratively then consumers could soon get used to using a new payment method that offers better incentives, is accepted everywhere, and perhaps comes with a universal brand name just as Visa and Mastercard today," he says.

"It will be powered by technology that allows direct payments, and customers will just approve a payment in the same way that they log onto their banking app - through a password or perhaps a thumbprint. It will give customers the convenience of a contactless card payment, without the need for a card, and retailers can cut out the unpopular - and rising - fees from card schemes."

This future is at least 18 months away, Cregan says, until further new rules on payment security come into play in September 2019. Until then, the card will reign supreme against cash but could soon start to find it has a more direct, card-less rival ready to take market share from the card schemes.

(c) 2018 City A.M., source Newspaper

[wigwammer] 27/3/2018 20:41

Pretty soon traditional bank channels will offer cheap, fast, safe transfer using brands/methods people are familiar with. HS benefits because it reinforces that status quo - the incumbents win (again). Not sure what the future is for ripple and multiple other fintechs in a world where the services and price they claim are disruptive look very much like the services and price being offered at the local bank. Very happy to hear a bear view - but a certain level of familiarisation is appropriate where people may naively act on what they are reading. Anyway, happy with the content of today's update - fingers crossed there is an element of snowballing as larger banks move toward HS :)

[hpcg] 27/3/2018 19:54

Japan also apparently, which surprised me. It explains their excitement over Ripple when we take for granted here if you want to transfer money to a contact you just get your phone out and do it, indeed do it by one of several mechanisms not just bank account to bank account.

wigwammer - I am as familiar as I need to be with HS. I'm out of ESG as much as anything because spec tech looks like going out of investing fashion, and cumulatively because there are no numbers to indicate when it will stop being speculative.

Anyway, I won't persuade, and frankly I'm not trying to as I am sure you are capable of making your own decisions - I'm just rising to the challenge of seeing the bear case on an up day.

[sheep_herder] 27/3/2018 18:02

I'm still amazed at how backwards North America is sometimes. Imagine getting a cheque in the post for an insurance claim.

[wigwammer] 27/3/2018 17:27

hpcg - sending money around the world is expensive and slow, because it is still reliant on the old correspondent banking network. There are new technologies which are trying, with varying levels of cost and inconvenience, to bring the cost down, but banks (who handle around 90%+ of international transfer) have not kept up with modernisation. HS is the network that helps them do that. The products you mention add cost by varying the related ER's by often ludicrous amounts, and then pretending they don't charge fees. If you want to understand more about what HS does - please see here - short and sweet. https://youtu.be/pju8JBgQUAQ ... 0.5% blended commission for fast, secure, visible transfers would represent a sea change in cost for the banks and HS is at the heart of it. Hope that helps :)

[hpcg] 27/3/2018 16:42

wigwammer - in this day and age across I can't imagine how there could be 10 million of commission in moving just 2 billion of money on a b2b basis. One would be talking basis points on the spread at best. Especially when there are so many competitors.

hxxps://www.money.co.uk/money-transfers/money-transfers-for-business.htm

If it is about Mastercard saving money then why would they pay a commission to have some software written?

[wigwammer] 27/3/2018 13:45

Thanks for conceding the $2bn target is useful data. 0.5% about right as a blended number - depends where money is being sent, how many intermediaries involved - from memory, 0.5% is about where analyst is. HS is not focused on the consumer market, but changing costs for the banks themselves. On consumer side though - bang on poundforager, look at the ER. Little read across from EPO - HS is backed by MasterCard - but nothing like drawing vague comparisons to a dud business when all else fails. Hope that helps :)

[hibberts] 27/3/2018 12:50

Mastercard are only interested in big numbers.

[poundforager] 27/3/2018 12:36

For free? Really hpcg, at what exchange rate?
I agree 0.5% is probably optimistic though and am now invested based on a 0.1% charge on volumes. The guidance was already that the venture was close to a break even point on volumes before this progress. Meanwhile,I would not touch EPO with a barge pole. Comparing Homesend progress and management with EPO is like comparing night and day. Of course there are companies in this space that have struggled and will continue to do so. Based on the evidence so far, this joint venture appears not to be one of them.

[hpcg] 27/3/2018 12:19

0.5% seems extremely optimistic. Natwest charges £10 for an overseas transfer; 1% on a £1000 which drops to 0.1% on £10,000. HSBC will do it for free if the recipient account is also HSBC, or £4 otherwise. And this is just the rape and pillaging banks. So for Homesend I would expect 0.05% might be closer to the truth, and even that may be optimistic.

You may want to sanity check your assumptions with Earthport's interims: and they have been doing this for what seems like decades:

[mad foetus] 27/3/2018 11:42

I have a few. I think I bought them when I sold BGO some time ago. I think as a business you have to take a bit on trust. They aren't going to say exactly how much they scalp from payments they make until/unless they get critical mass and become market leader. Until then everything is negotiable with clients, but if they can sign up enough clients at a rate that is profitable that will be the main thing. It is about balancing the land grab with the short term profitability. Signing up clients at a loss is also no good, obvs. But I am going to see how this pans out.

[daicaprice] 27/3/2018 11:41

£45k just bought in 2 trades, that ain’t peanuts.

DC

[wigwammer] 27/3/2018 11:35

I also own it as part of a portfolio. I imagine we all do :)

[beeks of arabia] 27/3/2018 11:33

For the avoidance of doubt, I hold these. I'm just not all rosy cheeked about it.

[wigwammer] 27/3/2018 11:18

Well, no beeks. The information we want to know is volume and margin to get profit. Both are key - they have given one and I have guessed the other. So it's not exactly true to suggest they've offered no iota of relevant data, is it? Hope that helps :)

[beeks of arabia] 27/3/2018 11:06

The key word there wigwammer is "Guess".