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Bingo! As regulators follow Drunk Under Lamp Post tactic and hold banks liable for APP Scams caused by negligent customers, banks are likely to respond exactly like this. As I predicted in my comment here, I wouldn't be surprised if banks delay payments and go back to the good old days of T+1 or more to earn float income.

Soon, I expect irate customers of Santander to post on X complaining that their bank is not letting them use "their own money". In line with Santander's recommendation, customers will go back to credit card / debit card / PayPal. And Open Banking / A2A RTP will flop.

Monzo finds out the hard way what failed PFMs and MoMMAs have known all along: J6P doesn't want to be told that they've busted their budgets, let alone on what category. 

Down with Regulatory Overreach!

This is Exhibit A that Brexit can take UK out of EU but it can't take EU out of UK.

It can be both things - and that's not a bad thing.

I can talk of many benefits of hype / jargon from marketing perspective but the CIO of Ally Financial describes a great one from the execution pov in Financial Brand. 

In banks, every new technology needs to be approved by compliance, legal, infosec, etc. That could take 9-12 months. Whereas a technology with hype behind it like Gen AI / ChatGPT can compress that period down to 4 weeks as it did in Ally Financial because “Everybody understood the urgency and the need to stay ahead of competition" ~ via Financial Brand.

When I wrote The Death Of Cash Is At Least 190 Years Away in 2013, I'd modeled a continuous decline in cash usage by 1.95% a year. I never expected that cash usage would go up after 10 years. Hmmm.

This has already been happening with US regulators for decades. In my old (IT) company, all the ODCs we ran for banks and FIs used to undergo annual / biannual audits by OCC and other BFS industry regulators.

TY. Using the same structured comment twice should work. Sure, two different dates for the two payments is a feature, not bug, in this situation. 

When two companies A and B merge, as part of Post Merger Integration, some systems of A are retired in favor of B's systems and some systems of B are retired in favor of A's systems. The retained systems anyway have been tried and tested for years before M&A.

"So why do we need code translators, code transpilers and code audit tools?" is the common objection we've across while targeting these tools at banks and FIs.  

Back of the envelope calculation shows APP Scam loss to be in the 0.015-0.02% (i.e. 1.5 to 2 bps) range of Total Payment Value (TPV) of A2A RTP e.g. India $393.7M/$2T (UPI only) = 0.0196%. Seems like a trivial problem that's getting overblown only because of the vote bank of victims and Drunk Under Lamp Post tendency of regulations. 

IIRC Klarna got banking license. Any idea why it's not using its own acquiring business?