Challenges of Electronic Payments

In the last week there have been a number of payment related stories. What links them all is that they demonstrate that electronic payments face a range of challenges that have a direct impact on customers. The role of the regulator is evident in all of them whether requiring action or ‘guiding’ providers to take action.

Data: Amex sent customers marketing emails even though they had opted out of receiving them according to the UK’s Information Commissioner’s Office. As a resulted he fined Amex £90,000.

Fees: European payment service providers pay 0.20 eurocent per instant payment transaction but sometimes are charged at €1 per transaction. ECB board member Fabio Panetta said ‘This must change. For instant payments to become the new normal, they must be cheap and easy to use. We would also like to see providers make instant payments available on all commonly used electronic channels and offer much-desired functionalities such as Request-to-Pay.’