Apr 15, 2021

UK fintech RSM 2000 is acquired by PayPoint

PayPoint
rsm2000
Acquisition
Fintech
Joanna England
2 min
 UK fintech RSM 2000 is acquired by PayPoint
The British fintech PayPoint has announced its acquisition of the electronic service provider RSM 2000...

PayPoint, the UK fintech that provides payment services for consumers, retailers, mobile and online multi-channel solutions for businesses, has boosted its portfolio by acquiring RSM 2000.

The electronic payment service provider, which was founded in 2009 and is based in Bedfordshire, UK, has a significant customer base across a number of sectors including charities, SMEs and not-for-profits. 

Direct debits on the increase

Currently, the UK’s Direct Debit market is expanding an estimated 4.5bn payments with an overall value of £1,327bn made in 2019. Direct Debits are also used by 90% of the UK population to pay some or all of their regular bills.

According to reports, PayPoint is well-placed to take advantage of the trends that have accelerated over the past year due to Covid-19, including the continued shift from cash to digital payments.

The acquisition of RSM 2000 - which also offers Direct Debit services, card payments and text donations amongst other services - reinforces their position. 

RSM 2000 will also significantly increase PayPoint’s current MultiPay digital payments portfolio by bringing Direct Debit capability in-house, adding innovative mobile payment products and enabling reach into new sectors, such as charities, not-for-profit and events. 

RSM 2000’s innovative EventPay solution provides card terminal hire and connectivity for SMEs attending shows and festivals across the UK - an opportunity of more than 30,000 events a year with over 10,000 visitors.

PayPoint growth strategy

Speaking about the acquisition, Danny Vant, Client Services Director, PayPoint explained, “Our acquisition of RSM 2000 is the latest step in the acceleration of our strategic delivery, strengthening our position further to take advantage of the trends that have accelerated over the past year due to Covid-19, particularly the continued shift from cash to digital payments.”

Vant added, We are delighted to welcome everyone at RSM 2000 to the PayPoint Group and are looking forward to working together to grow our digital payments capability.”

“This move is an exciting one for RSM 2000 as it enables us and our customers to benefit from the expertise and greater breadth of digital payment channels that the PayPoint Group offers,” said Nigel Waters, Managing Director of RSM 2000 Ltd.

“Both organisations are committed to delivering the high quality of service and solutions that our customers have come to expect as we integrate into the PayPoint team in the coming months.”

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May 13, 2021

Bank of Israel releases a draft model for potential CBDC

CBDC
Digitalpayments
BankofIsrael
Banking
2 min
The Bank of Israel has announced it is forming an action plan for the potential release of a central bank digital currency (CBDC)

The Bank of Israel (BoL) explained that it has been exploring the concept since 2017. However, while it has a head start on others in this regard (see: the Bank of England), the bank has yet to decide whether issuance of a CBDC would be advantageous.

As is the general philosophy with CBDCs, the proposed ‘digital shekel’ would co-exist with other extant forms of currency currently used in Israel. The value proposition, as mapped out by the BoL’s Steering Committee, is as follows:

  • An efficient and secure method of alternative payment in the digital economy
  • The adoption of next-gen technology to bolster the country’s financial future
  • Bolstering payment infrastructure during “emergencies or breakdowns”
  • Laying an inexpensive foundation for cross-border payments
  • Enabling the use of secure digital payment platforms
  • Reduce the overall use of cash to combat the “shadow economy”

Are CBDCs worth it?

While the general hesitance of most global central banks to adopt an official digital currency indicates that it is a concept still considered a ‘novelty’, the BoL’s analysis of CBDCs puts forward a strong case for their exploration.

Notably, their use in reducing crime, promoting financial inclusion, and expanding elements of the digital economy could help resolve ongoing economic issues.

However, the BoL is also conscious that “some if not all of these benefits may be obtainable through the improvement and upgrading of the existing payment systems.” And yet, if the purpose of central banks is to facilitate the ease of transactions between people, is it sensible to eschew the development of a trend gaining momentum globally?

Whatever the case, placing a CBDC is far from an easy task. Sweden’s Riksbank recently published a report of its progress with the ‘e-krona’. Originally anticipated to be trialled in 2018, the bank’s next estimate for roll-out is the latter part of 2026.

“Simply introducing a complement to cash for retail transactions may not make much of a difference in the economy. Using wholesale CBDCs in cross-border transactions has the potential to raise efficiency,” said Johanna Jeansson, Economist at Bloomberg

“Employing new digital tools for policy purposes could really alter the macroeconomic playing field. The bigger the step, the more thought it’s likely to require. Expect that to take time.”

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