EBA Clearing Looking for Banks to Test its Internet Payment
EBA Clearing has received favourable opinion about its pan-European B2B e-payment service proposal MyBank, which has been under consultation this summer. Mainly known for clearing in all Europe, EBA Clearing designed for banks an instrument dedicated to the e-commerce. This instrument redirects the Internet user to its banking portal. As is the case with Dutch scheme iDEAL, the customer clicks on the “MyBank” button when choosing his payment method. He then authenticates with his financial institution and originates a real-time credit transfer to the merchant website. MyBank also proposes post-delivery payment.
The concept has been approved by thirty banks and includes suggestions received from other pan-European players: consumers, e commerce federations, integrators and e-PSPs. It first relies on SCT and SDD (one-off or recurring) instruments. Mobile payments (through using Smartphones or tablets) and non-euro currencies will be considered later.
EBA Clearing is now enrolling pilot banks to test this service starting May 2012 for a production phase in summer 2012.
EBA Clearing belongs to the European banks and operates retail clearing
schemes in euros at a pan-European level (PEACH). It has been requested
to design and run a bank-owned scheme, specialised in e-commerce
payments. In parallel, the EPC has started to standardise one such
payment instrument based on Dutch iDEAL, created in 2005.
All these solutions aim at allowing banks to recapture the payment act
with a more suited medium than the bank card. This means of payment is
still favoured by Internet users worldwide but induces high risks of
fraud. Alternatives to cards (3D-Secure, OTPs, virtual or prepaid cards,
etc.) tend to impair its two primary assets: ease of use and payment
fluidity. The aim of OBeP solution is to secure payment operations while
avoiding disintermediation by non-banking facilitators (such as PayPal,
Ukash, Moneybooker, etc.), which operate between the consumer and
banking schemes (card, direct debit,etc.).
EBA has SEPA-wide coverage for clearing (32 countries): it is ideally
positioned to provide banks with a standard solution relying on SEPA
instruments. It will boost innovating offer, since it includes an
SDD-based payment method (e.g. for subscriptions). The question is: will
its operational costs allow EBA Clearing to be competitive? Due to
insufficient volumes brought to SEPA clearing, it has not yet managed to
be as competitive as its rival counterparts, the national payment
clearing mechanisms (e.g..: STET’s CORE in France).