Payments newsletter: Betaaljournaal 22

Those who have passed their final exams are celebrating, whilst the rest are getting ready for a hot summer holiday. It’s set to be a hot summer for everyday payments and banking too; a summer featuring a pilot scheme involving 19 banking information points across 10 local authorities, where anyone struggling to keep up with the rapid digitalisation of society will receive a warm welcome.

According to the Minister of Finance, accessible banking also includes cash, not least to help those without digital skills keep a handle on their spending. Together with our members, we are entering into discussions with DNB and the Ministry regarding the proposed legislation on cash.

And in Brussels, too, the legislative machine is running at full speed. A comprehensive package of payments legislation is expected on 28 June. This will cover the revised PSD2, an Open Finance Framework and the legal framework for a potential digital euro. Furthermore, the political negotiations on the legal framework for instant payments are virtually complete.

It was recently announced that iDEAL is spreading its wings across the rest of Europe by merging with EPI, the European Payments Initiative set up by a dozen major European banks from Germany, Belgium, France and the Netherlands.

For climate-friendly holiday travel, we need efficient public transport. Translink, public transport operators, card issuers and the Dutch Payments Association have worked closely together in recent years to ensure that, from now on, everyone can check in and out on public transport anywhere in the Netherlands using a credit card or debit card. This also offers unprecedented convenience for foreign visitors on holiday in the Netherlands.

I’d like to wish our readers a wonderful summer holiday with safe, accessible and inclusive payment options. If you’re leaving Europe, don’t forget to switch your debit card to ‘abroad’ mode. 😉

Gijs Boudewijn, Managing Director

• Accessible Banking Programme Gains Momentum
• Meeting for members on Instant One-Leg Out Credit Transfer
• National Forum on the Payment System focuses on accessibility
• Vacancy: Product Consultant for Cash and Cards
• Legislative proposals to keep cash accessible and available
• Relaxation of SCA requirements for account information
• Global first for OVpay with nationwide roll-out
• Bridging the digital divide: digital banking for digital beginners
• BNR Zakendoen with Gijs Boudewijn on the past, present and future of the Dutch payments sector
• The Netherlands sets an example for the rest of Europe with instant payments
• End of Acceptgiro in the media
• iDEAL to become the foundation for a pan-European payment platform
• The year 2022 in payments will focus on sustainable funding of payments and digital fallback options for debit card payments
• Association news
• Geldland
• Figures
• Calendar

Accessible Banking Programme Gains Momentum

Banks and civil society organisations, including the Digital Living Alliance , are joining forces to make banking and payments more accessible. The pilot scheme involving three banking information points is now being expanded to ten local authorities across the Netherlands. This is an initiative of the Dutch Payments Association, the Dutch Banking Association (NVB) and the three major banks. Furthermore, a joint ‘accessibility roadmap’ is being launched this year, in which De Volksbank is also participating.

In response to the recent study by De Nederlandsche Bank (DNB) , which shows that around 2.6 million Dutch people struggle to manage their banking and payment affairs independently for various reasons, Dutch banks have committed to offering more support. Through the ‘Accessible Banking’ programme, they are joining forces to improve the accessibility of banking services. This includes, amongst other things, developing appropriate measures, improving telephone services and making digital services more accessible via websites and mobile apps.

For a more detailed overview of these efforts and partnerships, please read our news article ‘Banks and civil society organisations join forces for accessible and inclusive services’.

Members’ meeting on Instant One-Leg Out Credit Transfer

The European Payments Council (EPC) has published the ‘Instant Euro One-Leg Out Credit Transfer Rulebook ’. This rulebook is intended to lay the foundations for standardised arrangements and agreements on the processing of transactions where one of the two payment service providers (PSPs) is based outside SEPA, from the perspective of the PSP within SEPA.

On Tuesday 27 June from 3.00 pm to 4.30 pm, Jan Paul van Pul will give a presentation on this topic at the Dutch Payments Association. He is a Senior Payments Advisor at ING and represents Dutch payment service providers in the EPC One-Leg Out Task Force. His presentation is aimed at specialists from various disciplines and highlights both the technical aspects and the practical application of the Instant Euro One-Leg Out Credit Transfer.

The invitation to this meeting was sent out via a members’ newsletter. There are still a few places available. To take part, please register by sending an email to events@betaalvereniging.nl, stating ‘Inst Euro One-Leg Out (OCT)’, your name, email address and job title.

National Forum on the Payment System focuses on accessibility

The National Forum on the Payment System (MOB) is an important platform for dialogue and cooperation between organisations involved in both the provision and use of payment services. The MOB’s central objective is to ensure safe, reliable, accessible and efficient payment systems in the Netherlands. Twice a year, the members of the MOB meet, under the chairmanship of DNB, to consult and discuss strategies.

The most recent meeting, on 1 June, took place in Rotterdam’s library. This was prompted by the focus on the theme of ‘Accessibility’. A banking information point has been set up in this library since October.

During this MOB meeting, the following topics in particular were discussed:

• The legislative proposals announced by the Minister of Finance to ensure that cash remains usable, available, accessible and affordable;
• The banks’ programme to improve the accessibility of payment services;
• Progress in addressing the undesirable effects of de-risking on access to payment services;
• The development of the digital euro;
• The presentation of the MOB Annual Report 2022 to the Minister of Finance.

After the meeting, MOB participants spoke with people who find it difficult to carry out certain day-to-day banking tasks independently.

Vacancy: Product Consultant – Cash and Cards

The Dutch Payments Association has a challenging vacancy for a Product Consultant – Cash and Cards. We are looking for someone who, with passion and expertise, can make an essential contribution to the ongoing development of the payments sector in the Netherlands and Europe. This role offers the opportunity to play a key part within a dynamic and important sector, and to work alongside a team of professional and passionate colleagues. We offer attractive terms of employment and plenty of opportunities for professional development and growth.

Are you ready to take the next step in your career and would you like to contribute to one of Europe’s most innovative and efficient payment systems? Find out more about this role and apply today!

Legislative proposals to keep cash accessible and available

On 31 May, Minister Kaag informed the House of Representatives in a letter of her intention to introduce legislation to ensure that cash remains accessible and available .

This intention stems from the findings of the ‘TICKET’ study, carried out by consultancy firm PwC on behalf of DNB and her ministry, into the future organisation of the cash cycle.

The proposed legislation will include, amongst other things:

• Establishing and maintaining a basic infrastructure for the withdrawal and deposit of banknotes and coins. This obligation applies in particular to the shareholders of Geldmaat, ABN AMRO, ING and Rabobank;
• Establishing a minimum number of cash machines that are sufficiently distributed across the country;
• Imposing an obligation on Dutch banks to ensure that their customers can withdraw and deposit banknotes at ATMs. This obligation applies to ABN AMRO, ING, Rabobank, bunq, Knab, de Volksbank, Van Lanschot Kempen and Triodos Bank (which together account for 99.6% of Dutch current accounts);
• Stipulating that cash withdrawals and deposits by consumers must not be charged at different rates;
• Capping fees for business use at approximately the current level to ensure reasonable rates.

The entire process is expected to take a further two years before this legislation comes into force.

Relaxation of SCA for account information

On 5 December 2022, the European Banking Authority published an amendment to the regulatory technical standards for the application of Strong Customer Authentication (SCA) when accessing payment account information. The proposal comprises two key points:

• Payment service providers will not apply SCA when a customer accesses their payment account online via an account information service provider. This applies provided that access is limited to one (or both) of the following online data elements, without any sensitive payment data being disclosed:
  • The balance of one or more designated payment accounts;
  • Payment transactions carried out in the last 90 days via one or more designated payment accounts.
• As an exception to the above, payment service providers will apply SCA when:
  • The customer is accessing the service online for the first time via the account information service provider;
  • More than 180 days have elapsed since the last time SCA was applied.

The changes will come into force on 25 July 2023.

Global first for OVpay with nationwide roll-out

Since 6 June 2023, it has been possible in the Netherlands to check in with a debit or credit card at all public transport operators. This makes the Netherlands the first country in the world where this is possible nationwide. In parallel with this development, the nationwide communication campaign for OVpay has been launched. The OVpay campaign can be seen on television, heard on the radio, and viewed as outdoor advertising on bus shelters.

The option to travel using a debit or credit card was first introduced in March 2021 on Arriva’s city buses in Lelystad. Since then, this method of travel has been rolled out in phases across an increasing number of regions. The RET in Rotterdam was the last operator to introduce this service.

The fare for travelling with a debit or credit card is the same as travelling with a public transport chip card without a discount or season ticket (full second-class fare). It will later be possible to link discount schemes to the debit or credit card.

This new payment method on public transport is already being used by many people. In May, a debit or credit card was used for more than 6% of all check-ins. It is striking that debit cards are particularly popular during events and on public holidays. On King’s Day, for example, 26% of passengers travelling on a prepaid balance used a debit or credit card.

Bridging the digital divide: digital banking for digital beginners

Research agency Muzus, commissioned by Netwerk Digitale Inclusie 55, Alliantie Digitaal Samenleven and the Dutch Payments Association, has conducted research into reducing the anxiety felt by digital beginners regarding online and mobile banking. Muzus examined the motivations and disincentives faced by digital beginners, as well as what is needed to build their confidence when starting to use online banking.

The research shows that digital beginners often want to get started themselves, but do not always know how or where to begin. Often, the step towards using online banking is still too big for them, leading them to seek help or information from familiar and trusted support workers, such as informal carers or social workers.

To support these support workers in their role, resources have been developed based on the research. These resources take into account different levels of knowledge and experience with digital banking, as well as the various learning styles that determine information needs. These resources can be used by support workers to help digital beginners find their way around digital banking.

Would you like to know more about the research findings, the four learning styles and the materials developed? Click here for the research report.

BNR Zakendoen with Gijs Boudewijn on the past, present and future of Dutch payment systems

Gijs Boudewijn was a guest on BNR Zakendoen. Presenter Edwin Mooibroek asked him about developments in debit card payments, the accessibility of banking and payment services, the costs of the payments system and the future of cash.

A recurring theme throughout the conversation was the collaboration between Dutch payment service providers on non-competitive issues in the payments sector, adopting a collective approach and solutions.

Curious to hear Gijs’s views on the issues mentioned above? Then listen to the ‘De Top van Nederland’ podcast from 6 June on BNR.

The Netherlands sets an example for the rest of Europe with instant payments

Instant payments have long been the norm for electronic transfers in the Netherlands. This puts the Netherlands ahead of the rest of Europe. In 2022, however, the European Commission put forward a legislative proposal to make instant payments the new standard across the whole of Europe.

Why did the European Commission table this legislative proposal? And how did instant payments become so commonplace in the Netherlands? Frans van Beers and Niels Pranger of the Dutch Payments Association explain this in two detailed articles.

The end of the Acceptgiro in the media

Since 1 June, Acceptgiro forms are no longer in use in the Netherlands. In the run-up to this date and shortly afterwards, more than 20 media articles appeared about the end of the ‘paper Tikkie’. ANP, NU.nl and various newspapers, such as Algemeen Dagblad, Friesch Dagblad,

Telegraaf, Trouw and Reformatorisch Dagblad, have covered the phasing out of this payment method. Several broadcasters, including RTV Oost, TV Limburg1, Hart van Nederland and the NOS Journaal, also covered the story on television.

Good alternatives to the Acceptgiro include ‘My one-off donation’ on paper, payment requests such as Tikkies, standard payment instructions for paper transfer forms, QR codes (including those from iDEAL) and, of course, direct debit.

iDEAL to become the foundation for a pan-European payment platform

Currence iDEAL has announced that it will eventually merge with EPI, the European Payments Initiative comprising more than a dozen leading banks and payment service providers from various EU Member States.

The acquisition by EPI Company recognises the success and importance of iDEAL as the largest ‘account-to-account’ payment method in the eurozone. EPI is developing a pan-European payment method based on instant payments, for which iDEAL will form the foundation. Following the acquisition of iDEAL, ABN AMRO and Rabobank will now also become Dutch participants in EPI, alongside ING.

For Dutch consumers and businesses, the acquisition of iDEAL has no immediate consequences other than the ongoing development towards the new iDEAL, which is already underway. We wish our colleagues at Currence iDEAL every success and a bright European future under the wing of EPI Company.

2022: A year focused on the sustainable funding of payments and digital fallback options for debit card payments

In 2022, the activities of the Dutch Payments Association focused primarily on the sustainable funding of payments, digital fallback options for debit card payments, the accessibility of collective payment services and the adaptation of payment terminals for Debit Mastercard and Visa Debit. These and many other topics are covered in the Dutch Payments Association’s 2022 annual report. The first three themes will continue to require attention in 2023.

It is of the utmost importance that as many Dutch people as possible are able to continue making payments and managing their banking independently. Thanks to the joint efforts of our members, good accessibility has become an integral part of the range of payment services on offer. We have gained a deeper understanding of the implications of increasing digitalisation, which will enable us to implement improvements to the accessibility of payments in the coming period.

As the use of cash continues to decline, the importance of robust digital alternatives to debit card payments at the till is increasing. The costs of collective payments for our members far exceed the revenue generated. This raises questions about a future-proof funding model to ensure the high standards of security, efficiency, reliability, accessibility and inclusivity of our payment systems.

Association News

We welcome our newest member, Finom Payments B.V., a fintech company licensed in the Netherlands as an electronic money institution. Finom offers services in the areas of accounting, financial management and banking functions via a single mobile platform, and aims to make financial management as simple as using your smartphone. As a provider of payment accounts, Finom contributes to the diversity of the landscape of payment service providers in our market; the Dutch Payments Association looks forward to a fruitful collaboration. We have already had the pleasure of getting to know Finom’s CEO, Sergey Petrov, in detail.

Geldland

Watch our latest videos here:

Figures

Since the introduction of the Acceptgiro, more than 10 billion Acceptgiro forms have been processed.

More figures in our factsheet

Calendar

• 27 June – Instant One-Leg Out Credit Transfer themed meeting
• 6 July – Board meeting
• 2 October – Giraal Stakeholder Forum/Card Forum
• 12 October – Shopping Today event
• 15 November – General Meeting of Members, followed by the Annual Conference of the Dutch Payments Association
• 27 November – Digital Inclusion Day
• 28 November – Social Dialogue on Payment Transactions

Members’ Bulletin

In addition to this Betaaljournaal, the Dutch Payments Association also publishes Members’ Bulletins. In these, we inform members about practical matters of importance. The bulletins are usually published a few times a month and focus on a specific theme. Are you a member but not yet receiving these bulletins? You can ask to be added to the mailing list via secretariaat@betaalvereniging.nl.

Subscribe to the Betaaljournaal

Are you also interested in the latest developments in the payments sector? Stay up to date via the ‘Betaaljournaal’. You can subscribe here.