BUSINESS NEWS


UKHospitality welcomes delay to anti-fraud SCA


Ian Taylor


Te UK’s Financial Conduct Authority (FCA) has postponed the September deadline for implementing EU online anti-fraud measures known as Strong Customer Authentication (SCA). SCA is due to come into force


across Europe on September 14, but the UK financial regulator announced an 18-month postponement last week. Industry leaders welcomed the


move. Yet it remains unclear whether EU regulators will follow suit, meaning cross-border transactions could still be affected if card issuers decline transactions without authentication. SCA aims to cut online fraud by


requiring secondary authentication for all transactions of £30 and over. It marks the final phase of EU Payment Services Directive 2 (PSD2). Bank and financial service


associations have warned the EC and


the European Banking Authority (EBA) of a widespread lack of preparedness. Research by trade body UK Finance suggested consumers might fail to complete up to 30% of online transactions. Te FCA previously said it would


not take immediate enforcement action. But on August 13 it announced it had “agreed an 18-month plan to implement SCA with card issuers, payments firms and online retailers”. Jonathan Davidson, the FCA’s


executive director for retail and authorisations supervision, said: “Tese [SCA] measures will reduce fraud, [but] we want to make sure they won’t cause disruption.” Firms will still need to take steps


to comply, he said, adding: “Te FCA expects all firms to have made the necessary changes in 18 months. Te UKHospitality association


described the delay as “extremely helpful”. Chief executive Kate


Kate Nicholls


Nicholls said: “It’s clear the payments system needs more time. Tis gives us the breathing-room to ensure we don’t hit a payments cliff-edge.” Te British Retail Consortium


also welcomed the move, saying: “Te decision avoids a payments cliff-edge where 25%-30% of e-commerce transactions would have been at risk of failing.”


UKinbound finds members unfazed by no-deal Brexit


A survey by the UKinbound association found confidence among members rising despite the heightened risks of a no-deal Brexit. Te latest UKinbound Business


Barometer found 75% of members reported bookings, visitor numbers or customer orders in May and June at the same level or up on last year, and 84% reported yields the same or higher. More than half (57%) said they


were confident about the next 12 months – an increase of eight percentage points on March-April. Members reported China and


the US remain the leading growth markets, with 43% reporting growth from one of these. However, almost one-third


(29%) reported a decline in visitors from France and Germany. UK marketing body VisitBritain


previously reported a downturn in visitors from northern Europe. Chief executive Sally Balcombe told the UKinbound convention in February: “Concerns about Brexit are filtering into the results.”


CMA says Sabre’s Farelogix takeover threatens market


Sabre’s takeover of technology firm Farelogix raises “competition concerns”, the UK Competition & Markets Authority (CMA) has said, yet Sabre intends to complete the acquisition this week despite the concerns and a continuing review by the US Department of Justice (DOJ). US GDS Sabre announced the


$360 million acquisition of Farelogix travelweekly.co.uk Sean Menke


last November, arguing it would make Sabre the leader in offering New Distribution Capability (NDC) technology to airlines and agents. Miami-based Farelogix is a leader


in developing NDC technology. Te CMA ruled the takeover


“raises competition concerns in the supply of IT systems used by airlines and travel agents”. “Farelogix is an important


competitive threat to Sabre. Should the deal go ahead as planned, the CMA is concerned Sabre would not face enough competition from other suppliers, leading to higher prices or lower-quality services . . . which could have adverse effects for airlines, agents and consumers.” Sabre announced last week it


would complete the takeover on August 21 and “vigorously defend” the


deal if the DoJ objects. It suggested the DoJ review “has been lengthy and exhaustive” when it had expected the deal to complete early this year. Te DOJ announced its review


of the takeover in February and the CMA followed in June. Te CMA said: “If the businesses


are unable to overcome the CMA’s concerns, the deal will be referred for an in-depth Phase 2 investigation.” It noted it would continue “to


cooperate closely” with the DoJ. Sean Menke, Sabre chief


executive and president, warned: “We’re prepared to vigorously defend the deal in court.”


22 AUGUST 2019 63


PICTURE: David Cotsworth


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