The Distillery #5: Vodafone-led Partnership to Launch Pay by Bank in Germany
In this edition:
- Vodafone is launching Pay by Bank in Germany — here’s why it could transform mobile payments.
- mPOS and Soft POS are booming — here's three trends set to drive vendor success in 2025.
- US EV incentives hit the brakes — what recent policy shifts mean for the future of the clean vehicle market.
- Our latest insights on Klarna, OTP revenues, Capital One x Discover, and mobile ARPU.
TELECOMS & CONNECTIVITY
Vodafone Partners with Tink & Ayden for Pay by Bank in Germany
Vodafone just teamed up with Tink, a subsidiary of Visa, and Ayden to roll out a Pay by Bank feature for mobile users in Germany. Instead of using card details, subscribers can pay directly from their bank account for digital purchases; a process powered by Open Banking.
Crucially, these payments won’t be processed like regular card transactions. Strong Customer Authentication (SCA) will apply, likely using MFA tools like one-time passwords sent via text or mobile network APIs.
Distilled...
🟣 Open Banking always refers to the most up-to-date payment information, providing greater protection against fraud. By implementing these disruptive payment channels, network operators such as Vodafone can better position themselves as leading digital players beyond traditional connectivity services.
🟣 Pay by Bank offers a serious upgrade from Direct Carrier Billing (DCB), which has long been operators’ go-to for mobile payments. DCB is clunky by comparison — and doesn’t offer the same fraud protections or user control.
🟣 Our latest data has DCB facilitating $7 billion worth of transactions in Germany this year; a substantial volume that brings equally substantial transaction fees. By shifting users to Pay by Bank, which involves fewer intermediaries, operators like Vodafone can cut those costs and capture more value.
FINTECH & PAYMENTS
Insider: mPOS & Soft POS Trends to Watch in 2025
Mobile and software-based POS solutions aren’t just replacing traditional terminals; they’re transforming how merchants operate, compete, and scale. To celebrate the release of our latest research on the subject, here’s an exclusive look at three trends driving this evolution — and shaping POS vendors' strategies.
🟣 Apple’s move to open up third-party apps is a game-changer for Soft POS. By breaking down previous barriers, it’s unlocking a wider ecosystem of Soft POS solutions, sparking fierce competition and a wave of innovation across the industry.
🟣 Merchant demand is soaring, pushing POS providers to scale with modular, customisable features. The winners will be those investing early in smart integrations - think AI-powered inventory management, CRM, and analytics - offering merchants tailored solutions and valuable upsell opportunities.
🟣 Growth is accelerating in emerging regions like the Indian Subcontinent and Asia Pacific, where SMEs are the biggest adopters of mPOS and Soft POS. This expansion is fuelled by rising smartphone use, financial inclusion initiatives, and government pushes toward cashless economies.
SUSTAINABILITY & SMART CITIES
US EV Market Takes a Hit as GOP Cuts Incentives & Standards
Last week, House Republicans passed the “One Big Beautiful Bill Act,” a sweeping tax and spending package that eliminates Biden-era clean energy incentives, including the $7,500 tax credit for new EV purchases. EV owners would also face a new annual $250 tax, while hybrid drivers would pay $100.
At the same time, the US Senate voted to end California’s longstanding right to set its own vehicle emissions standards. This decision could derail the state’s plan to require all-electric new car sales by 2035. With over 15 other states, including New York, Colorado, and Washington, following California’s lead, the impact could be nationwide.
Distilled…
🟣 Scrapping tax credits could hand Chinese EV brands like BYD a bigger foothold in the US. They've seemingly mastered low-cost production, and without the $7,500 credit, price-sensitive US buyers may look abroad. Our data shows that EV ownership in the US grew 46% from 2023 to 2024 — proof, if any were needed, that incentives work.
🟣 The bill’s flat annual tax also increases ownership costs for both new and existing EV and hybrid drivers. Unlike the fuel-based tax paid by internal combustion engine (ICE) vehicle owners, this flat fee applies regardless of how much the vehicle is driven; a method widely regarded by experts as regressive and unfair.
🟣 A single national emissions standard may simplify compliance in the long run, but it comes at a high cost. It undermines California’s historic leadership in clean car policies and risks stalling progress in the country’s largest and most influential vehicle market.
ICYMI
Signal Boost
Every issue, we highlight the research, blogs, infographics, and insights we're especially proud of.
📉 Klarna’s latest losses have sparked rumours that the company is on the verge of collapse. But the truth is (unsurprisingly) more complex than TikTok would have you believe.
🔐 Revenue from one-time passwords (OTPs) sent via OTT messaging apps is set to soar 600% by 2029, as businesses shift from traditional SMS to encrypted channels like WhatsApp and Viber.
💳 Capital One’s acquisition of Discover could spark a major shift in the US payments market. How does this raise the stakes — not just for credit cards, but for the future of how we pay?
📱 And finally, mobile operators live and die by Average Revenue Per User (ARPU). Which countries will deliver the highest returns in 2025 — and what actually influences ARPU?
Latest research, whitepapers & press releases
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ReportSeptember 2025Fintech & Payments
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Anti-money Laundering Systems Market: 2025-2030
Our AML Systems research suite provides a detailed and insightful analysis of this evolving market; enabling stakeholders from financial institutions, law enforcement agencies, regulatory bodies and technology vendors to understand future growth, key trends, and the competitive environment.
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A2A Payments Market: 2025-2030
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Mobile Messaging Fraud Prevention Market: 2025-2030
Our Mobile Messaging Fraud Prevention research suite provides a detailed and insightful analysis of a market set for significant disruption over the next five years. It enables stakeholders from mobile operators, enterprises, and mobile messaging fraud prevention vendors to understand how the market for mobile messaging fraud will evolve, as well as the impact of AI, RCS, and the evolving competitive environment.
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ReportSeptember 2025Sustainability & Smart Cities
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ReportSeptember 2025Fintech & Payments
eCommerce Payments Market: 2025-2030
Juniper Research’s eCommerce Payments research suite provides a comprehensive and insightful analysis of this market; enabling stakeholders, from eCommerce payment platform providers to merchants and payment service providers, to understand future growth, key trends, and the competitive environment.
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WhitepaperSeptember 2025Fintech & Payments
Core Banking Transformation - A Strategic Conversation with SAP Fioneer
Core banking transformation is no longer optional, as regulatory change, rising compliance costs, and shifting customer expectations make legacy systems unsustainable. Anna Koritz, Global Head of Transaction Banking at SAP Fioneer, shares how banks can overcome cultural and technical hurdles and why SAP Fioneer’s modular, cloud-ready approach enables confident modernisation.
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WhitepaperSeptember 2025Fintech & Payments
From Detection to Prevention: The Next Era of Anti-money Laundering
Our complimentary whitepaper, From Detection to Prevention: The Next Era of Anti-money Laundering, examines the state of the AML systems market; considering the impact that a changing regulatory environment and a growing number of use cases is having on the market. Additionally, it includes a forecast summary of the total value of the AML systems market in 2030.
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WhitepaperSeptember 2025Fintech & Payments
Ascending-to-Ailing: The Deceleration of A2A Adoption
Our complimentary whitepaper, Ascending-to-Ailing: The Deceleration of A2A Adoption, examines the state of the A2A payments market; considering the impact of this payment method and how it is shaping the modern payments landscape through lower fees and enriched user experience.
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WhitepaperSeptember 2025Telecoms & Connectivity
RCS Fraud: Emerging Threats in Next-gen Messaging
Our complimentary whitepaper, RCS Fraud: Emerging Threats in Next-gen Messaging, examines the future of the messaging fraud prevention market, with a particular focus on the latest trends within RCS Business Messaging (RBM). Additionally, it includes a forecast summary of the total cost of fraud over RBM to subscribers in 2030.
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WhitepaperSeptember 2025
Decentralising the Smart Grid: Opportunities & Challenges
Our complimentary whitepaper, Decentralising the Smart Grid: Opportunities & Challenges, explores how distributed energy resources, renewable integration, and virtual power plants are reshaping grid management.
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WhitepaperSeptember 2025Fintech & Payments
Going Glocal ~ Why Local Payment Methods Are Driving eCommerce
Our complimentary whitepaper, Going Glocal ~ Why Local Payment Methods Are Driving eCommerce, assesses how local payment methods are driving the increasing accessibility to eCommerce, and challenges to eCommerce growth.
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Fintech & Payments
AML Systems Market to Surpass $75 Billion by 2030 Globally, With LexisNexis Risk Solutions, Oracle, and Experian Leading the Defence
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Fintech & Payments
B2B Payments to Hit $224 Trillion by 2030 Globally, Driven by Emerging Market Expansion
September 2025 -
Fintech & Payments
A2A Transaction Value to Reach $195 Trillion in 2030 Globally, Driven by Advanced Value-added Services
September 2025 -
Telecoms & Connectivity
ReveNet: Operators Must Act to Restore Trust & Transparency to $55bn A2P SMS Ecosystem
September 2025 -
Telecoms & Connectivity
RCS Business Messaging Fraud to Cost Mobile Subscribers $4.3 Billion Globally Over the Next 5 Years
September 2025 -
Sustainability & Smart Cities
Smart Grids to Support 43% of Global Electricity Supply by 2030, Driven by Virtual Power Plants
September 2025