IBS Journal April 2016
this as it enables the recipient to segregate their funds via an online savings wallet. In fact, e-money issuers can now offer solutions that give all the functionality of a banking product such as the ability to set up debits and standing orders as well as a physical prepaid card to use for online and offline purchases. Other conditions can be applied such as access to cash machines, depending on how the Government’s consultation progresses.
Payment FinTechs such as ourselves
are already widely used by governments and local authorities to distribute welfare payments to the unbanked and most vulnerable in society, including asylum seekers. In this capacity, prepaid platforms serve the sector perfectly providing reporting, monitoring and auditing while streamlining operations and resources. Furthermore, spend can be blocked right down to retailer or Merchant Category Code level if necessary, and instant fraud alerts can be implemented to minimise risk.
Scott Thompson: PFS was one of the first e-money institu- tions in the UK to launch a ‘bank-lite’ solution by assign- ing sort codes and account numbers to general purpose prepaid card accounts. You have now expanded that of- fering to cover the Eurozone. What was the thinking behind
In order to provide banking solutions
to our clients on the continent, we have been waiting for changes in the regulations to allow non-banks to participate in the clearing system. SEPA has really opened up the market in Europe and we hope that with the Faster Payments network becom- ing accessible to new players in the UK we’ll see even more scope for innovation, making payments faster and less costly for the end user, even across borders.
Scott Thompson: Where does PFS stand on the UK’s possible
Brexit? NM: As a business, 80% of our activity and income is non-UK driven. Legislation like the e-money directives and the Payment Services Directives are applied across the SEPA zone and enable regulated FinTech entities like PFS to compete on an equal footing anywhere in Europe. Obviously anything that jeopardises that would be detrimental to our company.
Secondly, we as a company benefit
that? NM: We have been offering current account functionality on our prepaid accounts for the past few years with resounding success, and from this, we found that the market appetite for flexible banking products in Europe was considerable. PFS is a pan-European supplier, and while we are headquartered in the UK, we are not limited by national boundaries or geographies in terms of card issuing, as we have a FCA license that covers all SEPA countries.
42 © IBS Intelligence 2016
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from our colleagues across Europe being able to come to and live and work in the UK. We have over 18 different nationalities in our London office alone and the freedom of labour movement allows us to better serve our clients Thirdly, this is an economic, political and social question. Where does Britain see its future? So far we have polar opposite views on the financial impact of Brexit with no clear case made. So let’s assume it becomes impossible to build a ‘winning’ economic argument either way. We have a marked divide on the political front along party lines essentially, at least in Parliament. The social question is probably the
area for emotive voting. For example, on the one hand, we have a rational fear based on security and economic migration. On the other hand, we have a history of accepting inward migration and reaping
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