PARIS | MyBank, the pan-European e-payments framework, gears up for another successful year. Last week, MyBank had its first birthday and looked back at a very fruitful year in terms of supporting banks, financial institutions, payment service providers and merchants across Europe. This year 300 banks are planning to join the MyBank solution.
MyBank driven by EBA CLEARING
The MyBank initiative is run by EBA CLEARING, a provider of pan-European payment infrastructure solutions and owned by 63 of the major banks operating in Europe. EBA CLEARING processes millions of payments across the 33 SEPA countries each day. The MyBank solution allows consumers and businesses to transfer money or to allow direct debits from their bank account by using their secure online bank environment. For online merchants MyBank would give access to any consumer within the SEPA region with online banking capability (under the condition the consumer bank supports MyBank payments). Upon checkout, using MyBank as 'payment method', shoppers are directed to their trusted banking environment. All relevant transaction information is pre-filled and the shopper only needs to confirm payment to transfer the money. All in real-time.
MyBank and Supporting Banks and Service Providers
MyBank is currently live with 143 banks (vast majority is Italian), with another 300 banks planning to join the solution during 2014. Piraeus Bank, one of the top Greek financial institutions, is set to join MyBank in the second half of 2014. In Italy, Banca Sella has recently stated that they plan to connect approximately 3,000 merchants to MyBank between now and the end of May.
EBA Clearing has defined three joining 'windows' for banks and payment service providers for 2014 in which they can test and certify against the MyBank technical specifications and procedures. The second joining window is now open. For more information: MyBank Joining and Testing Windows 2014.
Worldline, the e-payments subsidiary of Atos, Smart2Pay, GestPay and Mollie, are one the first Payment Service Providers who have successfully tested and certified MyBank and are able to provide MyBank gateway services to online merchants. Click here for the full list of MyBank certified Service Providers.
Merchants accepting MyBank transactions
During the last 2 months several new merchants started to offer MyBank as a payment/checkout option in their shop. Online travel agency Alpitour and insurer Zurich Connect (largest insurance company in Italy) have opened up to millions of italian consumers able to use MyBank. Enel, who joined in December 2013, has reported the “widespread use of the MyBank e-authorisation option by their clients since it was made available”. MyBank shows better conversion rates than cards, and most importantly 65% of those who paid by MyBank were previously paying via the local post office. Other merchants who have joined MyBank are reporting a faster acceptance of the solution than anticipated.
MyBank: 'Credit and Debit Payments Solution'
The MyBank solution supports both SEPA Credit Transfers (SCT) and e-Mandates used for SEPA Direct Debits (SDD). In case of a transfer (SCT) the customer that purchases the goods or services takes the initiative to confirm and complete payment. Important to recognise for merchants: these SCTs, whether domestic or cross-border payments, can not be reversed.
In case of a SEPA Direct Debit, it is the merchant that deducts the amount due by the customer by debiting the bank account. e-Mandates could be seen as the electronic permission from consumers/business to merchants and institutions to debit their bank account. 'MyBank Mandates', referring to the solution by MyBank to obtain these permissions, supports both single and recurring e-mandates. Recurring e-Mandates could be of great added value for merchants with returning billings (memberships/subscriptions, telecom, insurance, utility companies). Merchants should take into consideration the fact that SDDs, these direct debit payments, can be reversed by the consumer.
On 19th February 2014, MyBank announced the successful completion of the MyBank mandate pilot. Now all stakeholders, including merchants, banks and payment service providers are currently testing the technical flows, business processes and user-friendliness of the e-mandate solution to ensure it fulfils the expectations of all stakeholders involved. The MyBank Mandates will go live in Q4 2014.
MyBank and Merchant Fees
Every individual MyBank supporting bank, payment service provider or gateway will set their own MyBank merchant fees and transaction costs. MyBank Fees, however, are expected to be fairly moderate. First of all, the MyBank solution re-uses a great deal of existing payment infrastructure and investments for supporting MyBank are fairly limited. There is no interchange fee mechanism between participants (contrary to cards where the bank of the merchant pays a considerable fee to the consumer bank). Every merchant willing to accept MyBank transactions needs to negotiate pricing with their MyBank processing bank and/or payment gateway.
More to come
At the beginning of May 2014, the MyBank website www.mybank.eu will be relaunched with an improved navigation menu and new sections. A refreshed logo has been designed that symbolises MyBank as a key that keeps the bank account secure, but also gives consumers the power to unlock the potential inside. MyBank's future looks bright.
Check out the MyBank video below
Sourced from MyBank newsletter and website, April 2nd, 2014