International payments


#1

While people automatically think of SEPA for European payments and SWIFT for payments outside Europe, there are other payment networks.

Some like iDeal are only in one country but others like SOFORT are in multiple countries.

STRIPE payments incorporated 5 European payments networks into their system to increase customer choice and speed of payment.

Perhaps apart from Monzo linking with TransferWise for SEPA payments they could be groundbreaking in the UK and be the first FinTech to link to some other networks?

Here is more details of some of those systems:

About Bancontact
Bancontact is the most popular payment method in Belgium; in over 80 percent of Belgian web stores, you can pay with Bancontact. Two thirds of electronic and mobile commerce transactions via Bancontact happen in Belgium, 27 percent in the Netherlands and 8 percent in the UK.

About Giropay
Giropay is a popular payment method in Germany. Introduced in 2006, it’s now offered by over 1,500 banks to more than 35 million online banking customers.

About iDeal
iDeal is the most popular payment method in the Netherlands. In May last year, it registered the billionth transaction via its system. The online payment system has a market share of about 56 percent and is being used since 2005.

About SEPA Direct Debit
SEPA Direct Debit is a pan-European direct debit system that allows merchants to collect payments from accounts in the 34 SEPA countries. It was created to have a standardized payments infrastructure within the European Union.

About SOFORT
SOFORT is another popular payment method in Europe, This bank transfers method, now part of the Klarna Group, is being used by over 65,000 online shops across 15 European countries. It’s especially popular in Germany and the Netherlands.

There is an interesting write up on the different spending styles in various countries at https://ecommercenews.eu/the-most-common-payment-methods-in-europe/ and the percentage split by payment type in each country at https://www.ecommercewiki.org/Online_Payments/Online_Payments_Advanced/Which_payment_methods_to_support_per_country

While I don’t expect Monzo to connect with every payment network, linking directly to a few biggies to extend overseas payment options for Monzonauts beyond SEPA thru TransferWise would be a real USP