Prashant Sharma

Last week, I wrote about one of the challenges facing A2A payments: why should consumers change the way they pay if paying by card is actually more rewarding for them? Credit cards can offer cashback, miles, insurance or simply better cash-flow management. Lower transaction costs and instant settlement may benefit merchants, but they don't give consumers a reason to change their behaviour. Now, I read an article about this problem which shows that payment providers - and merchants themselves - are starting to address exactly this question. With Instant Bank Pay from Sionic, consumers pay directly from their linked bank account over RTP or FedNow. But there is an important addition: merchants can offer Perks such as cashback, discounts, or free products to customers who choose the A2A payment option. In other words, merchants might share part of the savings from cheaper payment acceptance with consumers. I find this particularly interesting because I don't think A2A payments will win simply because the underlying technology is faster or cheaper for merchants. Consumers need a reason to change an established behaviour - especially when the alternative is a card that already rewards them for using it. This may be where the next stage of A2A competition will happen: not only on transaction costs and infrastructure, but on who can turn those savings into consumer benefits. More on Sionic’s approach: https://lnkd.in/dWTV_iaW #InstantPayments #A2A #Payments #Wero #RetailPayments #OpenBanking #PaymentInnovation #Banking

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PayPal is acquiring Cymbio, a platform that connects merchants’ inventory to leading agentic surfaces. #AgenticAI is scaling! Cymbio's technology will enable #StoreSync, one of ayPal's agentic commerce services. Store Sync makes merchants' product data discoverable within AI channels, and it includes the ability to seamlessly drop orders to their existing fulfillment and management systems. Importantly, merchants remain the merchant of record and retain customer relationships and control over their brand. Welcome to the Cymbio's team! https://lnkd.in/dWGhQv_S

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Banks in India are entering a new ATM outsourcing/RFP cycle where most new deployments are shifting from conventional ATMs to cash recyclers, driven by cost, uptime and vendor-risk lessons from the 2025 AGS Transact disruption. Executive summary: - Banks have floated RFPs for ~17,350 machines over the next six months (up to Q1 FY27), signalling a fresh deployment/refresh cycle. - ~13,100 of these RFPs are for cash recyclers (75%+ of planned installs), indicating a strong pivot to recycler-led deployment strategy. - Large PSU banks are prominent in the pipeline: Union Bank of India, Bank of India, Canara Bank and Indian Bank together account for 8,000+ machines. - The 2025 collapse of AGS Transact (once operating ~40,000 ATMs) forced banks to shut older units and/or migrate vendors, accelerating tech refresh and outsourcing decisions. - Total installed base (ATMs + recyclers) dipped to ~207,000 at end-November vs ~215,000 a year earlier, but ET frames this as tech transition rather than “cash infrastructure retreat.” Current status (what’s really happening): - India’s ATM estate is in a “replace/upgrade + vendor-migrate” phase rather than a simple expansion phase, with cash recyclers becoming the default for new rollouts because they can recycle deposited cash for withdrawals, improving uptime and reducing replenishment needs. - The market is also reacting to concentration risk exposed by AGS Transact’s failure; banks are now explicitly prioritising vendor stability, technology capability and long-term unit economics over just adding locations. Implications for ATM managed services: - Managed services demand shifts from “ATM uptime” to “availability + cash efficiency”: recyclers change the operating model (lower replenishment frequency, different cash forecasting, different FLM/SLM profiles). - Vendor due diligence and resilience become front-and-centre in RFP scoring (financial strength, subcontractor controls, cash logistics continuity, spares strategy, SLA governance), reflecting post-AGS risk learning. - Outsourcing intensity is likely to rise in 2026 because the RFP cycle is reopening and banks expect greater outsourcing activity after 2025 disruptions. - PSU-bank recycler tenders called out in the article (next six months) create near-term capacity pressure on OEMs/MSPs/CIT partners—especially for rollouts, first-line maintenance, and cash operations scale-up. Useful data points to look at: - RFP pipeline: ~17,350 machines up to Q1 FY27. - Mix: ~13,100 cash recyclers (75%+). - Named near-term recycler tender volumes: Bank of India ~3,700; Union Bank ~2,000; Canara Bank ~1,500; Indian Bank ~1,006. - Installed base: ~207,000 end-November vs ~215,000 a year earlier (ATMs + recyclers). - Disruption driver: AGS Transact previously operated ~40,000 ATMs (highlighting systemic vendor concentration risk). #ATMs #CashRecyclers #India #CMS #AGS #SBI #NPCI #RBI #Opportunity #CashinCirculation #RFPs #Banks #WLAs #VISA #RuPay #MasterCard

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In online card payments, ACS (Access Control Server) is the issuer bank’s authentication system used in 3-D Secure (3DS). It is part of secure payment programs run by card networks like: Visa (Visa Secure) Mastercard (Identity Check) American Express (SafeKey) The ACS is responsible for: * Verifying the cardholder’s identity * Performing fraud/risk analysis * Returning authentication results to the payment network Functional Flow of ACS (3DS 2.x) Below is the end-to-end functional transaction flow in simple technical steps. Cardholder Initiates Payment 1. Customer enters card details on merchant website/app.Merchant sends payment request to payment gateway. 2. 3DS Authentication Request Triggered Gateway sends an authentication request to the Directory Server (DS) of the card network. DS identifies the issuing bank and routes the request to that bank’s ACS. 3. ACS Risk Evaluation (Core Functionality) Inside the ACS, the following hapaypens: Data Received: Card details (tokenized) Transaction amount Merchant ID Device information IP address Browser/app data Historical transaction behavior ACS Processing: * Risk scoring engine (fraud detection) * Device fingerprint analysis * Velocity checks * Geo-location verification * Behavioral analysis 4. Challenge Flow (If Required) If ACS decides Challenge Required: ACS sends challenge to customer via: SMS OTP Banking mobile app push Biometric (fingerprint/Face ID) Customer responds. ACS validates response. 5. Authentication Result Sent Back ACS sends back: Authentication status (Y/N/A/U/R) CAVV / AAV cryptographic value ECI indicator Flow: ACS - Directory Server- Gateway - Merchant 6. Final Authorization Merchant sends authorization request (including authentication data) to the card network. Issuer then: Approves Declines EMV 3DS protocol compliant JSON message handling TLS encryption 7. Database Layer Encrypted storage Session tracking Audit logging Directory Server- Gateway- Merchant - Authorisation. #ACS#3DS#Gateway#Payment

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What the US Federal Reserve Bank Suggests Banks Do to Prevent Consumer Scams Some controls they recommend banks deploy: ✅ Provide customer education to help spot scams ✅ Identify and delay suspected scam-related transactions ✅Consider using preventive technology solutions, such as behavioral biometrics and active caller detection, for additional scam signals ✅ Identify and close money mule accounts Are these controls in your consumer scam strategy playbook, especially mitigation of money mule accounts. American Bankers Association Bank Policy Institute California Bankers Association https://lnkd.in/g46hV4fd

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Fiserv revamps core banking platforms with AI Fiserv is using AI to power its core banking platforms while developing new solutions to enhance bank operations and drive partnerships.   The fintech continues to make strides in embedding AI into its DNA platform, which is a centralized database designed for financial institutions. AI helps streamline product upgrades and “modernize” Fiserv’s technology platforms,” Chief Executive Mike Lyons said during today’s fourth-quarter earnings call.   Fiserv is also […] The post Fiserv revamps core banking platforms with AI appeared first on FinAi News. https://lnkd.in/gZjRUYcc via FinAi News https://finainews.com/

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Mastercard in April launched a program through which banks using its Virtual Card Number technology could more simply embed the technology in third-party systems including HRS. That enables HRS to issue virtual payments from any of the more than 90 issuers in the program through a single integration with Mastercard, rather than having to do an integration with each individual bank, according to HRS VP of payment consulting Alex Olsen.

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“Acquiring StoneCastle is an important step forward in our strategy to help FIs optimize their balance sheets, which will enable them to do more in the communities they serve,” said Andrew Gelb Head of Financial Solutions at Fiserv. “We believe this further sets Fiserv apart in core banking by enabling institutions to custody cash supporting FIUSD stablecoins, while unlocking new value and accelerating innovation across the financial ecosystem,” adds Takis Georgakopoulos, COO at Fiserv. #fiservproud #fintechinnovation

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𝐓𝐡𝐞 𝐌𝐲𝐭𝐡 𝐨𝐟 "𝐌𝐮𝐬𝐭-𝐖𝐢𝐧" 𝐑𝐞𝐭𝐚𝐢𝐥 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 𝐈𝐬 𝐂𝐫𝐚𝐜𝐤𝐢𝐧𝐠. If retail banking doesn’t work in India, where does it work? The pullback narrative suggests that Standard Chartered sees limited returns in scaling broad, mass-market credit card businesses in India. Instead, the bank appears to be reallocating capital toward areas where it holds stronger competitive advantages (wealth management, corporate banking, and international banking) while optimizing its retail footprint rather than exiting the market outright. This strategy mirrors moves seen elsewhere. In Sri Lanka, Standard Chartered is selling its retail franchise to DFCC Bank; in Uganda to Absa Bank; in Zambia to First National Bank (FNB); and across Tanzania, Angola, Cameroon, Gambia, Sierra Leone, and Zimbabwe to Access Bank. Operations were wound down in Jordan and Lebanon. India joining this list was not widely anticipated, but recent developments suggest a similar recalibration may be underway. Bloomberg has the full story. Take a look. #Banking #CapitalAllocation #India #RetailBanking #CreditCards #Strategy #GlobalBanking https://lnkd.in/gZBD8CyU

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Cyberthreats and fraud now account for more than half of annual losses for banks. It’s a staggering figure, but new research suggests AI could be the key to turning the tide. In his latest article, Hashim Toussaint, SVP, Retail Digital and Open Banking at FIS®, explores how financial institutions are using AI to identify patterns, mitigate risks and enhance customer experiences. Read the full article to learn how flexible technology stacks and strategic partnerships are helping banks build resilience and drive efficiency. http://spr.ly/6043hR4nF #AI #Banking #Fintech #Cybersecurity #FintechInsights

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Self-issuing your bank's credit cards can create a program that meets your bank's standards. You can decision applications quickly and set credit lines adjusted by your knowledge of your customers. You'll have better card products, features and service for your customers with higher margins for your bank.

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