FOR 44 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE AUGUST 2015 / ISSUE 1069

Top Issuers in the Middle East and Africa The 50 largest Visa, MasterCard, , , Diners Club, and domestic general purpose credit, debit, and prepaid consumer and commercial card issuers in the Middle > see p. 12 PURCHASE VOLUME U.S. General Purpose Cards — Midyear 2015 Credit, debit, and prepaid cards carrying American Express, Europe Discover, MasterCard, and Visa brands generated 39.58 billion Market Shares purchase transactions for goods and services at merchants from of $3,156.83 Bil. in Purchase Volume 2014 > see p. 7

Barclays Mobile Payment Products 68% Barclaycard, the largest issuer in the United Kingdom 28% 3% <1% based on cards in circulation, has expanded its bPay contactless Visa MasterCard Amex Diners devices program beyond wearable wristbands to include key fobs > see p. 6 25 Change in Basis Points 2014 vs. 2013 Merchant Litigation Settlements Upended U.S. District Court Judge Nicholas Garaufis has thrown out a –8 –3 2013 agreement calling for American Express to pay up to $75 –14 million in attorneys’ fees as part of a pending settlement of two > see p. 6 Purchase Volume ($Bil.) in 2013 vs. 2014 FICO Uses Mobile Phones to Fight Card Fraud Visa 1,967.7/2,157.8 FICO, which offers Falcon neural network-based fraud fighting MasterCard 800.5/887.6 technology to more than 9,000 issuers, networks, and processors Amex 97.5/104.5 around the world, sees consumers as willing allies in the effort Diners > see p. 5 7.1/6.9/6.9 © 2015 The Nilson Report Multimodal Biometric Authentication Platform ImageWare Systems has provided biometric authentication services Europe General Purpose Cards to government agencies in North and South America for 20 years. The company sells its GoVerifyID cloud-based credentials Visa, MasterCard, American Express, and Diners Club > see p. 8 brand credit, debit, and prepaid general purpose cards issued in Europe generated $3.157 trillion in purchases of Investments & Acquisitions — July 2015 goods and services at merchants in 2014, up 9.9%. Turn to page 4 for a list of 70 mergers, acquisitions, and corporate Purchase volume on Visa cards increased by $190.10 billion financing deals that occurred in July 2015. or 9.7% over 2013. Purchase volume on MasterCard cards Prior issues: 1067, 1065, 1063, 1061, 1059, 1057, 1055, 1054, 1053 increased by $87.14 billion or 10.9% over 2013. American > see p. 4 > see p. 8

INSIDE 2 – 4 Fast Facts CHARTS 4 Investments & Acquisitions — July 9 Europe General Purpose Cards 5 PAX Handheld Terminal 7 U.S. General Purpose Cards Midyear 10 Mideast/Africa’s Largest Credit and 12 MVisa Payment Service 8 Europe Purchase Volume — 2014 Issuers — 2014 Launches in India 9 Purchase Transactions in Europe 11 GP/V/MC Issuers Mideast/Africa 2014

© 2015 HSN Consultants, Inc. THE NILSON REPORT VISIT US ONLINE AT WWW.NILSONREPORT.COM TRANSACTION WIRELESS, operator of a digital private DISTRICT OF COLUMBIA CIRCUIT COURT OF label prepaid card distribution and marketing platform for APPEALS has reinstated a proposed antitrust class action mobile, social, email, and digital wallet channels, has been lawsuit against Visa and MasterCard by the National ATM purchased by First Data. Terms were not disclosed. Council, which represents independent ATM owners. A Basil Abifaker is VP of Technology at Transaction Wireless, district court’s 2013 dismissal of the case prompted the (858) 926-5390 x102, [email protected], appeal. Plaintiffs allege the defendants imposed “unlawful www.transactionwireless.com. Barry McCarthy is EVP, and restrictive rules that limit discount of the fees Network and Security Solutions at First Data, that ATM operators charge consumers.” (404) 890-2220, [email protected], META PAYMENT SYSTEMS, a division of MetaBank, www.firstdata.com. FAST will become an issuer for InComm’s prepaid card programs. EARLY WARNING, which provides risk management MetaBank is the 2nd largest U.S. issuer of Visa and products and services to 2,100 organizations, has enhanced MasterCard prepaid cards. Brad Hanson is President at FACTS its Batch Deposit Chek Service by adding Counterfeit MetaBank, (605) 782-1711, [email protected], Notification. David Barnhardt is VP of Product Management, www.metapay.com. Scott Meyerhoff is COO at InComm, AUGUST 2015 Payments at Early Warning, (480) 656-5170, (678) 367-6460, [email protected], ISSUE 1069 [email protected], www.incomm.com. www.earlywarning.com. Learn more & CU WALLET, provider of a mobile wallet to U.S. credit access links at GREEN DOT has launched Green Dot @ the Register, unions, has integrated merchant offers and promotion nilsonreport.com which lets customers of merchants selling prepaid products information into its product. Relevant Solutions, provider of log into their accounts from their desktop or mobile browser mobile in-store shopping content for financial institutions, to select the Add Money at a Store option. This generates brokers the promotions and offers from more than Receive discounts a barcode, which is printed or displayed on their mobile 750 national merchants. Paul Fiore is CEO at CU Wallet, on select events device. Customers present the barcode to a seller’s cashier, (310) 948-1786, [email protected], www.cuwallet.com. and conferences. who scans it and collects the cash to complete a funds James Peil is CEO at Relevant Solutions, (512) 818-2272, top-up. Helena Mao is General Manager, (626) 765-2189, [email protected], www.itisrelevant.com. [email protected], www.greendotcorp.com. DIGITAL RIVER WORLD PAYMENT offers its merchant See previously MERCURY PAYMENT SYSTEMS and DATACAP customers more than 200 payment options in 170 currencies. published issues on SYSTEMS have completed certification of an EMV- It will expand its global reach through a connection with our website. compliant processing service for integrated software Payoneer, provider of a platform for mass payout services vendors and small and midsized businesses. Datacap is an capable of reaching recipients in 200 markets worldwide. integrated payments middleware provider. Mercury is a Hayden Reed is SVP and General Manager at Digital River Review recent Vantiv company. Justin Zeigler is Marketing Director at World Payments, (952) 225-3438, [email protected], press releases. DataCap Systems, (215) 997-8989, [email protected], www.digitalriver.com. Jonny Steel is VP Marketing at www.datacapsystems.com. Neeharika Nagisetty is Product Payoneer, (929) 888-9393, [email protected], Marketing Manager at Mercury, (970) 335-4679, mozvat@ www.payoneer.com. mercurypay.com, www.mercurypay.com. Conferences & Seminars

Wespay Payments Symposium 2015: Cards & Payments East Africa 2015: PayThink 2015: September 28-30, 2015. The September 15-16, 2015. The Green Valley September 15-16, 2015. The Intercontinental Cosmopolitan, Las Vegas, Nevada. Estimated Ranch Resort & Spas, Henderson, Nevada. Hotel, Nairobi, Kenya. Estimated attendance: attendance: 700. Cost for the three-day Estimated attendance: 250. Cost for the two- 600. Cost for the two-day conference is $1,150. conference is $1,395. Subscribers to The day conference is $795 member and $1,200 Subscribers to The Nilson Report will Nilson Report will receive a $200 discount. nonmember. Subscribers to The Nilson Report receive a 15% discount. Contact Lyndon Smith (Use code TNR.) Contact Ingrid Olsen, will receive a 20% discount. Mention The at Terrapinn, 971 (4) 440-2540, lyndon.smith@ (212) 803-8456, ingrid.olsen@ Nilson Report when you contact Carla Madayag terrapinn.com. Register at sourcemedia.com, or Kim Baker (212) 803-8475, at WesPay, (415) 433-1230, memberservices@ www.terrapinn.com/cardsea. [email protected]. Register at wespay.com. For more information visit www.paythinkforum.com. www.wespay.org.

2 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive 1 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Seventh Edition PAY.ON will make MasterCard’s MasterPass digital wallet technology 7th Edition available to more than 110 payment service providers (PSPs) that use its Figures Largest global payment gateway. Those PSPs support 56,000 Web stores. David include cards Klemm is Head of Acceptance Development, Germany at MasterCard, 49 (69) 971-21022, david_klemm@.com, www.mastercard.com. in circulation Wolfgang Berner is SVP Product at PAY.ON, 49 (89) 4523-0306, Card Issuersand and spending [email protected], www.payon.com. for Merchant AcquirersSIA has signed a five-year contract to process JCB card payments in Italy. credit Over 1,000* Card Issuers SIA already provides processing services to JCB in other European countries. & debit from 115 countries in all world regions Tom Okabe is Managing Director at JCB Int’l Europe, 44 (207) 087-4700, *includes over 700 outside the U.S. [email protected], www.jcbeurope.eu. Nicola Cordone is SVP and Int’l card Div. Director at SIA, 39 (2) 6084 -4900, [email protected], www.sia.eu.

issuers ZOOZ, a payment service provider to online merchants, now offers its customers the opportunity to accept bitcoins through a partnership with 275* Merchant Acquirers Bitnet, a bitcoin payment processor. Nathan Jackson is VP Europe at Zooz, Worldwide 44 (333) 939-0019, [email protected], www.zooz.com. Akif Khan is from 65 countries in all world regions a 2015 Nilson Report Publication Chief Commercial Officer at Bitnet, 44 (289) 024-9704, [email protected], *includes over 190 outside the U.S. www.bitnet.io. © HSN Consultants Inc. 2015 THE NILSON REPORT, www.nilsonreport.com/specialreport. Reproducing or allowing reproduction or dissemination of any portion of this document in any manner is a copyright violation subject to substantial fines. LANS HOLDINGS PAYMENT SOLUTIONS, which provides card process- in ing services to value added resellers, independent software developers, and Asia/Pacific, merchants, has integrated with Creditcall’s EMV payment gateway and point- United States, Europe, Latin America, of-sale services. Anthony Ribas is Director at Lans, (818) 794-2573, [email protected], www.lansholdings.com. Sian Bosley is Middle East/Africa, and Canada Commercial Director at Creditcall, 44 (117) 930-4455, sian.bosley@ creditcall.com, www.creditcall.com.

GLOBALCOM EMV-compliant terminals for gas stations, ticketing, parking, Order Today industrial automation, kiosk and vending, transport, and more, have been www.nilsonreport.com/specialreport integrated with Apriva’s wireless transactions payment gateway and secure messaging services. Brian Sadowski is CIO at Apriva, (480) 421-1210, BANAMEX, the 2nd largest acquirer in Mexico, will acquire JCB cards at [email protected], www.apriva.com. Alessandro Gardinazzi is Int’l 70,000 of its more than 98,321 merchant acceptance locations. Alejandro Business Development Director at Globalcom, 39 (34) 8570-3005, Gomez Urquiza Yarza is Cards and Acquiring Banking Head at Banamex, 52 [email protected], www.globalcom-eng.com. (55) 1226-3102, [email protected], www.banamex.com. AMERICAN BANKNOTE CORPORATION (ABNOTE) offers Yusuke Matsui is SVP of Business Development at JCBI, 81 (3) 5778-8245, PassWallet to merchants and issuers that want to provide a mobile wallet to [email protected], www.jcbcorporate.com. consumers using Android devices. PassWallet, which uses technology from BPC BANKING TECHNOLOGIES, which has 148 clients in 52 countries AboveMobile, stores and manages credit cards, bank accounts, ID documents, using its SmartVista open system card management software, has launched travel and event tickets, loyalty and prepaid cards, and coupons. John Ekers a host card emulation (HCE) package that includes: server (HCE cloud), is CIO, ABnote Corp, (617) 325-9600, [email protected], www.abnote.com. crypto-module, and interfaces to processing systems. SmartVista HCE can be Andy Nugent is Director at AboveMobile, 44 (161) 408-9342, andy.nugent@ implemented as an integrated or stand-alone module or as a service. abovemobile.co.uk, www.abovemobile.co.uk. Vasily Grigoriev is EVP, 41 (43) 508-4024, [email protected], SETPAY, a mobile payment service provider in Spain, will add small and www.bpcbt.com. midsized merchants using an automated onboarding process from Germany- COMPUTOP, a payment service provider (PSP) to more than 4,000 large -based payworks. Merchants use a mobile application for iOS and Android online sellers, will offer those clients an integrated online payment and fraud devices together with a Chip & PIN card reader connected via Bluetooth. If protection service using ACI Worldwide’s ReD Shield. Ralf Gladis is CEO at approved, they can accept EMV card payments immediately. Computop, 49 (951) 980-090, [email protected], www.computop.com. David Pombar is CEO at SetPay, 34 (981) 939-497, david.pombar@ Andy McDonald is European Sales Director, Payment and Fraud at ACI getsetpay.com, www.getsetpay.com. Christian Deger is CEO at payworks, Worldwide, 44 (148) 372-8700, [email protected], 49 (89) 4161-58400, [email protected], www.aciworldwide.com. www.payworksmobile.com.

© 2015 HSN Consultants, Inc. THE NILSON REPORT AUGUST 2015 / ISSUE 1069 / THE NILSON REPORT © HSN Consultants, Inc. 2015 THE NILSON REPORT AUGUST 2015 / ISSUE 1069 / THE NILSON 3 2 REPORT PAYLEVEN merchants in Brazil can receive funds from sales acquired via the GLOBAL PAYMENTS will offer its Canadian merchants mobile pay- payleven Chip & PIN card reader directly to a prepaid Visa card. The prepaid ment, loyalty, promotion, and private label prepaid card services through card will be issued by Brasil Pré Pagos. Renato Rocha is Director of Merchant a partnership with Virtual Next. Global’s customers will be able to offer a Sales & Solutions Brazil at Visa, 55 (11) 2102-0335, [email protected], merchant-branded digital payment card that can be loaded directly into a www.visa.com. Paulo Volpe is President at Brasil Pré Pagos, paulo@ consumer’s digital wallet without requiring an additional app. Bijan Shahrokhi brasilprepagos.com.br, 55 (11) 9997-93528, www.brasilprepagos.com.br. is President at Virtual Next, (647) 860-4920, [email protected], www. Adriana Barbosa is CEO at payleven Brazil, 55 (11) 9931-23235, abarbosa@ virtualnext.com. Jeff McGuire is SVP, Product & Marketing, Global Payments, payleven.com.br, www.payleven.com.br. (416) 847-4597, [email protected], www.globalpaymentsinc.com.

Investments & Acquisitions July 2015

Amount Amount Company Buyer/Investor (mil.) Country Company Buyer/Investor (mil.) Country 33coupons.inLO private placement1 <$0.1 India Money MoverFX undisclosed round1 $1.6 U.K. AirbitzCR seed funding2 $0.5 U.S. MswipeMP Series C25 $25.0 India American Credit CardMA Priority Payment Sys.3 * U.S. Multipay SASPR ID Global Solutions3 * Colombia Ant FinancialML Series A4 * China NearexMP Series B26 * Singapore BanqSoftSO KMD3 * Norway NettCashMP Mozido13 * Zimbabwe BehalfLE Series B5 $119.0 U.S. PayeverPR seed funding27 * Germany BitFuryCR undisclosed round6 $20.0 U.S. PayPalPR eBay28 * U.S. BitXCR Series A7 $4.0 Indonesia Premier PaymentsMA Newtek Bus. Sys.3 $16.5 U.S. BuyatabPD seed funding1 * Canada Pret d’UnionLE Series D29 $34.0 France CaixaBank/Global Pay/ErsteMA joint venture8 * Czech Rep. PromoteriLO seed funding1 $1.0 U.S. Capital OneMA Vantiv9 * U.S. RevolutMT undisclosed round30 $2.3 U.K. Checkout51LO News America3 * Canada Reward GatewayLO Great Hill Partners3 $217.4 U.K. ClassWalletPR seed funding10 $1.9 U.S. ShelfbucksMP undisclosed round1 $2.8 U.S. CogniaFP Swisscom Ventures11 * U.K. ShoCardCR seed funding31 $1.5 U.S. Coin.coCR undisclosed round1 * U.S. ShopkeepPR Series D32 $60.0 U.S. CoinbaseCR undisclosed round12 * U.S. SignifydFP Series A33 $7.0 U.S. CoinRepublicCR meXBT3 * Singapore SlimPayPR undisclosed round34 $16.6 France Columbus Data Serv.AP Cardtronics3 $80.0 U.S. SoftgateBP Tio Networks3 $30.9 U.S. Comr.seSO debt fi nancing1 $0.4 U.S. SpindleMT C&H Financial35 * U.S. CurrencyTransferFX undisclosed round1 * U.K. SquarePR IPO18 * U.S. eCardPR MCI EuroVentures13 * Poland StripePR undisclosed round36 * U.S. EquinitiFX TransGlobal Payment3 * U.K. TeleformixLO InteQ3 * U.S. Ethoca TechnologiesFP undisclosed round14 $40.0 U.S. ToastMT seed funding37 $0.8 Singapore FactomCR Series A1 $1.1 U.S. Transaction WirelessPD First Data3 * U.S. FamocoHW undisclosed round15 $4.4 France UpstartLE Series C38 $35.0 U.S. FastacashSP Series B16 $15.0 Singapore XEFX Euronet3 * Canada FawryBP BSI Netherlands17 $21.3 Egypt XoomMT PayPal3 $800.0 U.S. First DataPR IPO18 * U.S. ZinternetMP Konga.com3 * Nigeria MP 19 Flypay Series A $10.7 U.K. *Terms not disclosed. (1) Undisclosed investors. (2) Led by Block 26. (3) Acquisition. GemmarSO Acceo Solutions3 * Canada (4) Led by National Social Security Fund. (5) Includes equity and credit facility. (6) Led by PD DRW Trading. (7) Led by Naspers Group’s PayU unit. (8) Formed a JV in Czech Republic, GiftStarter 500 Startups $0.1 U.S. Slovakia, and Romania. (9) Revenue sharing agreement for merchant acquiring. (10) Led by ID Global SolutionsPR private placement1 $0.9 U.S. NewSchools Venture. (11) Undisclosed equity investment. (12) From Reinventure Group. Innoviti Pay. SolutionsPR undisclosed round20 $5.0 India (13) Purchased majority stake. (14) Minority Growth Equity from Spectrum Equity. (15) Led by Hi Inov. (16) Led by Rising Dragon. (17) Purchased equity stake of Raya Holdings. iSendMP Ding3 * U.S./Ireland (18) Filed for initial public offering. (19) From TimeOut. (20) Led by Catamaran Ventures. iWOCALE Series B21 $20.0 U.K. (21) Led by CommerzBank. (22) From Greycroft Partners. (23) From Snow Leopard Tech. PR 3 Ventures. (24) With Vix Investments. (25) Led by Falcon Edge Capital. (26) Led by Tata JPay Securus Technologies * U.S. Capital. (27) From High-Tech Gruenderfonds. (28) Spin-off. (29) Led by Eurazeo. (30) From Karmic LabSO Series A22 $5.0 U.S. Balderon Capital. (31) Led by Enspire Capital. (32) Led by Activant Capital. (33) Led by LinxensCM CVC Capital3 $1,700.0 France Allegis Capital. (34) From Prime Ventures. (35) Purchased merchant processing portfolio. (36) From Kleiner Perkins, Visa, American Express, and others. (37) From Startupbootcamp. LivQuikMP seed funding23 $1.6 India (38) Led by Third Point Ventures. mGiveMP Rally43 * U.S. Company categories: AP = ATM processor, BP = bill payment, CM = card manufacturing, CR = cryptocurrency, FP = fraud protection, FX = foreign exchange, HW = hardware, LE = lending, Mint PaymentsMP private placement24 $3.0 Australia LO = loyalty/coupons, MA = merchant acquiring, ML = microlending, MP = mobile payments, MT = money transfer, PD = prepaid, PR = processor, SO = software, SP = social payments. MoBeamLO undisclosed round1 $1.0 U.S. © 2015 The Nilson Report

Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive 43 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive PAX Handheld Terminal

The third largest POS terminal x 63mm, features an extended DDR) or up to 32GB using a manufacturer worldwide, PAX life battery, and utilizes a 320 x Micro SD to enable exceptional 240 pixel color touch screen. The processing and multimedia reader is EMV Level 1 performance. The built-in audio and 2 certified. Its thermal printer speaker can be as loud as 90dB. delivers 30 lines per second or A contactless card reader more depending on the font. is optional to support NFC The S900 uses the Linux for mobile and contactless operating system, which supports transactions. Certifications quick development of customized include MasterCard PayPass, Visa payment and other value- payWave, American Express, and added software applications. Discover DPAS. The S900, which Communication is GPRS or 3G is available in all world regions, connectivity (WCDMA/EVDO). has 10 numeric/letter keys and 8 Security features include PCI function keys. PTS 3x, SRED, Technology, PIN ciphered The S900 is optimized for high- is marketing key algorithm, end retail and hospitality outlets. a new mobile RSA, AES, 3DES, payment device DUKPT, MK/ optimized for high-end SK, and fixed key as well as HASH Andrew Wu is Vice President at PAX retail and hospitality function. The S900’s processor is Technology in Shenzhen, China, environments. The S900 32-bit ARM11. Memory is 192MB 86 (755) 8616-3739, andrew.wu@ measures 175mm x 82mm standard (128MB Flash, 64MB paxsz.com, www.pax.com.cn.

FICO Uses Mobile Phones to Fight Card Fraud from page 1... to curb card fraud losses, which reached $16.31 temporarily block all authorization requests if they billion worldwide in 2014. FICO Consumer Fraud suspect fraud or have misplaced their card(s). Control gives cardholders controls and alerts for FICO provides the API issuers need to integrate their payment cards through an Consumer Fraud Control issuer’s mobile app. Features include with their mobile app. It parameters on when, where, and how also supplies a module that cards are used. integrates with their real- Cardholders can block time card authorization authorizations for certain systems. Issuers with both transactions such as online purchases FICO’s Falcon fraud fighting or cash withdrawals. They can set maximum technology and Customer Communication Services transaction amounts and restrict certain types of (CCS) technology can quickly deploy Consumer Fraud merchants. Cardholders can create custom alerts Control because integration with FICO already exists. CCS offers two-way, automated voice, text, email, and Cardholders create custom alerts to mobile app notifications. monitor transactions in real time. Consumer Fraud Control can be integrated with any real-time authorization system, not only those using FICO technology. It is immediately available to monitor transactions in real time. Examples worldwide. Initial marketing will focus on the U.S. include transactions that occur in a foreign country and U.K. or when a self-imposed spending threshold is about T.J. Horan is VP, Fraud Solutions at FICO in San to be reached. They can use the app to instantly and Diego, California, (858) 369-8000, [email protected], www.fico.com.

© 2015 HSN Consultants, Inc. THE NILSON REPORT AUGUST 2015 / ISSUE 1069 / THE NILSON REPORT 5 Barclays Mobile Payment Products from page 1... and stickers. All use EMV-compliant technology merchant locations and at all Visa from Gemalto. They are available to any Visa payWave contactless POS terminals or MasterCard credit or debit cardholder in the in the world. U.K. When bPay launched in June 2014, only In October of this year, Barclays a wristband was available. More than Bank, of which Barclaycard is 40,000 people have obtained one. part, will integrate Pingit, its Wristbands cost $39. Stickers, mobile money transfer application, which can be affixed to phones with the Pay by Bank application or anything with a flat surface, provided by Zapp, a mobile cost $23. Key fobs cost $31. The payment service of . Pay devices can be purchased online by Bank supports mobile payments or at select retail stores. for goods and services purchased The devices are linked online, with charges pulled directly to Barclaycard’s bPay mobile from a . It is a wallet app for iOS and Android competitor to Visa and MasterCard smartphones. The app can be downloaded from debit card transactions. NFC-based Pay by Bank the Apple Store and Google Play Store. Consumers payments at the point of sale will be available in 2016. use the app or go online to view transactions in real The Pingit app, which launched in 2012, is time as well as to add funds and shut down lost or available to consumers who hold a deposit account stolen devices. at any U.K.-based financial institution. More than 4 million consumers have downloaded the app. Each bPay device links to its own Barclays (debit cards) and Barclaycard (credit digital-only Visa prepaid account. cards) will also offer . Mike Saunders is Managing Director of Digital Consumer Payments at Barclaycard in London, United Each bPay device links to its own digital-only Visa Kingdom, 44 (7557) 564-817, michael.saunders@ prepaid account. The bPay wallet can be topped up barclaycard.co.uk, www.barclaycard.com. through the app or online at the bPay website using a Darren Foulds is Director of Mobile Banking and Pingit Visa or MasterCard credit or debit card from any U.K. at Barclays in London, United Kingdom, 44 (7775) 555- issuer. Payments can be made at over 300,000 U.K. 2370, [email protected], www.barclays.com.

Merchant Litigation Settlements Upended from page 1... class-action lawsuits brought by request for a summary judgment Friedman, a lawyer representing U.S. merchants against American was pending before Judge George the merchants, exchanged emails Express. The suit involved Amex’s Daniels in U.S. District Court for and documents with Keila Ravelo, Honor All Cards Provisions and the Southern District of New York a lawyer who was representing Non-discrimination Provisions. in Manhattan. In the MasterCard in a None of the money has been Non-discrimination separate class action distributed because final approval case before Judge that pitted merchants has not been given by the court. Garaufis in the Eastern against Visa, The settlement agreement does District of New York MasterCard, and 12 not provide for payment of any in Brooklyn, Amex U.S. banks. Friedman money to the merchants. The had filed a motion to was simultaneously relief for merchants is American compel arbitration. representing the Express agreeing to changes in its Judge Garaufis took merchants in that case card acceptance agreement. action this month when it became as well as in the Amex case. Prior to the announced known that, during negotiations Judge Garaufis believes the settlement, in the Honor All between the merchants and emails and documents, which Cards case, American Express’s American Express, Gary were from the Visa/MasterCard

6 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive damages for fees merchants paid merchants, including those that to card issuers. No money has opted out, the right to seek an been distributed because more injunction concerning the setting than 8,000 merchants opted out of interchange fees. of the settlement, including more News that Friedman and than 24 that filed lawsuits Ravelo exchanged case, might have influenced individually. This documents has the settlement proposal in the gave them an prompted American Express case. The opportunity to merchants to merchants are now seeking new make a case for ask presiding legal representation. There’s no being entitled Judge John guarantee that new counsel will to more money Gleeson in the advise accepting all terms in the than what they Eastern District pending settlement agreement, would have received of New York to which obliges merchants not from their share of the overturn the settlement. to pursue any additional legal $7.25-billion settlement using This raises the possibility of new challenges against American criteria set forth in the settlement settlement negotiations, perhaps Express regarding the Honor All agreement. Until all individual for larger damages and with no Cards and Non-discrimination merchants settle their lawsuits, no provision precluding merchants provisions for 10 years. money can be disbursed to any of from seeking even more damages The 2013 court-approved the other merchants in the class. for card transactions acquired settlement of the Visa/MasterCard Those that opted out were since March 29, 2014. et al. case calls for payment of up also protesting a provision to $7.25 billion to merchants as in the settlement that denied Prior issues: 1031, 1018, 998

U.S. General Purpose Cards — Midyear 2015 from page 1... January 1 through June 30, 2015 — up 3.12 billion or accounted for 63.33%, of all purchase transactions, 8.6% over the first six months of 2014. Debit cards down from 63.86%. Credit cards accounted for the other 36.67%, up U.S. General Purpose Cards MY 2015 vs. MY 2014 from 36.14%. Debit cards with the Dollar Volume (bil.) Purch. Trans. Visa brand generated Brand Total Chg. Purchases Chg. Cash Chg. (bil.) Chg. 45.03% of all purchase Visa Credit $667.58 11.8% $641.34 11.9% $26.24 7.7% 7.70 14.5% transactions at merchants, American Express Credit $350.80 5.5% $348.76 5.5% $2.04 3.6% 2.41 6.6% down from 45.65%. MasterCard Credit $324.48 6.0% $311.05 6.3% $13.43 1.2% 3.45 6.9% MasterCard debit cards generated 18.30%, up from Discover Credit $61.05 –11.0% $56.42 –11.5% $4.63 –4.6% 0.97 –0.7% 18.21%. Visa credit cards CREDIT CARD TOTALS $1,403.91 7.6% $1,357.57 7.7% $46.35 4.2% 14.51 10.2% generated 19.44% of all & Prepaid $889.32 5.6% $669.02 6.2% $220.30 3.8% 17.82 7.1% purchase transactions, up MasterCard Debit & Prepaid $377.94 7.6% $285.29 7.9% $92.65 6.6% 7.24 9.0% from 18.44%. MasterCard’s credit cards accounted for DEBIT CARD TOTALS $1,267.26 6.2% $954.31 6.7% $312.95 4.6% 25.07 7.6% 8.70%, down from 8.84%. CREDIT & DEBIT TOTALS $2,671.17 6.9% $2,311.88 7.3% $359.30 4.6% 39.58 8.6% American Express’s cards accounted for 6.08%, down Visa Totals $1,556.90 8.1% $1,310.36 8.9% $246.54 4.2% 25.52 9.2% from 6.19%, and Discover MasterCard Totals $702.42 6.9% $596.34 7.0% $106.08 5.9% 10.69 8.3% cards generated 2.45%, VISA & MC TOTALS $2,259.32 7.7% $1,906.70 8.3% $352.62 4.7% 36.21 9.0% down from 2.67%. Includes all consumer and commercial credit, debit, and prepaid cards. Figures are for January 1 through June 30. American Express and Discover include business from third-party issuers. Figures include PIN-based debit fi gures for Visa Prior issue: 1057 (Interlink) and MasterCard to match their reporting. © 2015 The Nilson Report

© 2015 HSN Consultants, Inc. THE NILSON REPORT AUGUST 2015 / ISSUE 1069 / THE NILSON REPORT 7 Multimodal Biometric Authentication Platform from page 1... management system and services through partners ImageWare believes cloud-based storage of including Fujitsu, IBM, TransUnion, CA, Deutsche a biometric feature is more secure than storing Telekom, and others. Those partners are helping biometric data on a mobile device, which can be lost, stolen, or hacked. On-device storage also requires registration of biometric features for every phone, tablet, etc. Cloud-based storage requires only a single registration. When stored at GoVerifyID, a consumer’s ImageWare offer GoVerifyID to commercial clients, biometric feature(s) and biographic profile are including payment card issuers. segregated. They are linked anonymously when a GoVerifyID is a software-as-a-service back- text message is sent to the cardholder to confirm end platform that a purchase. That text can handle multiple ...software that can handle multiple message doesn’t hold any biometric features side personal information. by side, including facial, biometric features side by side. ImageWare created voice, fingerprint, hand GoVerifyID to minimize geometry, behavioral, retinal, finger veins, 3D face, the complexity of a client’s deployment of the system. and signature. The platform’s database is capable There is no need to change any existing business of cloud-based matching of more than 200 million process or infrastructure. identity credentials in real time. U.S. banks are testing ImageWare’s technology for Once a consumer enrolls their biometric feature, in-band and out-of-band biometric authentication, a template is created and added to the database. The including payment card transactions. GoVerifyID template can be used in a variety of ways, including can be deployed anywhere in the world. Fujitsu has issuing a new online password or verifying a point-of- integrated GoVerifyID into its point-of-sale terminals sale transaction. The authentication process, which and is offering it to customers in Asia. involves a consumer’s mobile device, typically takes Jim Miller is CEO at ImageWare Systems, Inc. in San a second. The consumer’s biometric feature is not Diego, California, (858) 946-0400, [email protected], stored on their mobile device. www.iwsinc.com.

Europe General Purpose Cards from page 1... Express grew by $7.01 billion or 14 basis points from 68.50% in of credit, totaled $1.718 trillion. 7.2%, and Diners Club fell by 2.2% 2013. Visa’s figures include Visa Cash accounted for 35.24% of or $0.16 billion. Europe and the 18 Central and the region’s total dollar volume in Visa’s market share of purchase Eastern European countries that 2014, up from 35.15% in 2013. volume was 68.35% in 2014, down are part of Visa Inc. MasterCard’s Cash accounted for 37.19% market share of purchase volume of total volume at Visa last year, Market Share of Purchase of 28.12% increased by 25 basis down from 37.78% in 2013. Cash points from 2013. American accounted for 33.00% of total Volume on Cards Issued Express’s share slipped 8 basis volume at MasterCard, up from in Europe 2014 points to 3.31%. Diners Club 30.98% in 2013. At American Brand Share declined to 0.22%. Express, cash accounted for Visa 68.4% Total dollar volume, the 2.96%. At Diners Club, cash 2018 combination of cash volume accounted for 3.80%. 1 $3.157 MasterCard 28.1% and purchase volume, reached Purchase transactions

2013 $4.875 trillion from cards issued generated by Visa, MasterCard, Tril. Amex 3.3% in Europe last year, up 10.0%. Diners Club, and American Diners 0.2% Cash volume, which includes Express credit, debit, and prepaid withdrawals from funds on cards issued in Europe totaled 68 ©2015 The Nilson Report deposit and advances against lines 49.57 billion in 2014, up 14.0%.

61 8 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Visa’s worldwide total, up from Purchase Transactions on Cards 30.04% 2013. Issued in Europe 2014 vs. 2019 Cards in circulation in Europe Market accounted for 24.43% of Visa’s Share > Brand 2014 (Bil.) 2019 (Bil.) Increase 1 global total, down from 24.80%. Visa 34.58 52.95 53% Europe accounted for 27.05%

2018 2019 of MasterCard’s worldwide 1 67% MasterCard 14.24 23.73 purchase volume in 2014, down 31 29 2013 2014 Amex 0.71 1.01 42% from 27.34% one year before, and 27.63% of its worldwide total for 70 5% Diners 0.04 0.04 purchase transactions, up from 68 ©2015 The Nilson Report 49.57 77.73 57% 26.48% in 2013. Cards issued in Europe 61 accounted for 25.72% of Visa and MasterCard cards all general purpose cards in the MasterCard’s global total of cards generated 48.8261% billion of those region. American Express and in circulation, up from 25.23% the transactions or 98.48%, up from Diners Club cards totaled 20.5 prior year. 98.41% in 2013 American Express million and accounted for the All figures shown here are for and Diners Club cards generated remaining 1.90%. Europe as a geographic region. the remaining 0.75 billion MasterCard had the largest This differs from reporting used transactions or 1.52%. increase in the Visa’s market share of purchase number of cards transactions was 69.76% in 2014, in circulation. Its Visa and MasterCard cards gen- down from 70.80% in 2013. card base grew by erated 48.82 bil. transactions. MasterCard’s market share of 50.4 million in 2014 28.72% increased from 27.61% in to 369.6 million. 2013. American Express’s 1.43% Visa’s card base increased by 29.4 by the card companies. Some share slipped from 1.49% in 2013. million to 691.8 million. card company reports include Diners Club’s share was 0.09%, Visa purchase volume on cards Israel in Europe and exclude down from 0.10%. issued in Europe accounted for certain Central and Eastern General purpose cards in 31.62% of the combined Visa Europe countries. circulation in the region reached Inc. and Visa Europe worldwide Nilson Report figures for 1.08 billion at the end of 2014, up total in 2014, down from 31.89% Europe include all countries in 8.1% over the prior year. in 2013. Eastern and Central Europe. MasterCard and Visa cards Purchase transactions They do not include Israel, which in Europe totaled 1.06 billion generated by cards issued in is counted with Middle East/ and accounted for 98.10% of Europe accounted for 30.62% of Africa results. Europe General Purpose Cards 2014 vs. 2013

Volume (bil.) Transactions (mil.) Cards Brand Total Chg. Purchases Chg. Cash Chg. Total Chg. Purchases Chg. (mil.) Chg. Visa $3,435.36 8.6% $2,157.79 9.7% $1,277.58 6.9% 42,853.0 9.8% 34,579.8 12.3% 691.8 4.4% MasterCard $1,324.73 14.2% $887.63 10.9% $437.10 21.6% 16,893.5 18.4% 14,236.5 18.6% 369.6 15.8% Amer. Express $107.68 7.2% $104.50 7.2% $3.18 8.7% 745.0 9.3% 710.5 9.3% 18.9 4.7% Diners Club $7.19 –2.1% $6.92 –2.2% $0.27 –0.7% 45.2 0.0% 42.3 –0.1% 1.6 1.0% Totals $4,874.96 10.0% $3,156.83 9.9% $1,718.13 10.3% 60,536.7 12.0% 49,569.1 14.0% 1,081.9 8.1% Includes all general purpose consumer and commercial credit, debit, and prepaid cards. Currency fi gures are in U.S. dollars. Change fi gures are based on local currency. Some prior year fi gures have been restated. Countries include only the 49 located on the continent of Europe (does not include Israel). Visa includes Electron and is a combination of Visa Europe and the Central and Eastern Europe countries that are part of Visa Inc. MasterCard excludes Maestro & Cirrus. © 2015 The Nilson Report

© 2015 HSN Consultants, Inc. THE NILSON REPORT AUGUST 2015 / ISSUE 1069 / THE NILSON REPORT 9 Credit Card Issuers Mideast/Africa Debit Card Issuers Mideast/Africa

Purchase Purch. Purchase Purch. 2014 Volume Cards Vol. 2014 Volume Cards Vol. Rank Issuer, Country (mil. $U.S.) (000) per Card Rank Issuer, Country (mil. $U.S.) (000) per Card 1 IsraCard Israel $33,446.1 4,202 $7,960 1 Al-Rajhi Bank Saudi Arabia $15,785.6 7,029 $2,246 2 LeumiCard Israel $18,268.3 2,326 $7,854 2 Standard Bank South Africa $8,938.8 27,237 $328 3 Israel Credit Cards Israel $17,209.9 2,262 $7,608 3 National Bank of Kuwait Kuwait $7,478.1 851 $8,787 4 Absa Bank South Africa $6,132.9 3,302 $1,857 4 Kuwait Finance House Kuwait $7,406.8 956 $7,750 5 Standard Bank South Africa $5,595.1 3,383 $1,654 5 Nat’l Comm’l Bank Saudi Arabia $6,971.0 3,820 $1,825 6 First National Bank South Africa $5,085.7 2,920 $1,742 6 Absa Bank South Africa $4,296.0 12,879 $334 7 Emirates NBD U.A.E. $4,618.2 521 $8,869 7 Nedbank Limited South Africa $3,571.6 7,395 $483 8 Nedbank Limited South Africa $4,519.0 1,873 $2,413 8 First National Bank South Africa $3,531.0 9,399 $376 9 Abu Dhabi Commercial Bank U.A.E. $2,995.9 536 $5,588 9 Emirates NBD U.A.E. $2,956.4 1,239 $2,387 10 SABB Saudi Arabia $2,456.1 450 $5,458 10 Riyad Bank Saudi Arabia $2,600.4 1,738 $1,497 11 Nat’l Comm’l Bank Saudi Arabia $1,996.4 432 $4,617 11 Gulf Bank Kuwait $2,423.9 266 $9,126 12 Investec Specialist Bank South Africa $1,963.1 93 $21,058 12 Commercial Bank of Kuwait Kuwait $2,105.0 642 $3,277 13 Mashreq Bank U.A.E. $1,861.9 550 $3,383 13 SABB Saudi Arabia $1,944.1 548 $3,549 14 Samba Financial Saudi Arabia $1,621.4 596 $2,719 14 Arab National Bank Saudi Arabia $1,859.0 1,224 $1,519 15 National Bank of Kuwait Kuwait $1,504.1 262 $5,730 15 National Bank of Abu Dhabi U.A.E. $1,691.6 2,390 $708 16 Bank Audi Lebanon $1,292.2 217 $5,969 16 Banco de Fomento Angola $1,438.5 903 $1,594 17 National Bank of Abu Dhabi U.A.E. $1,242.9 275 $4,523 17 Guaranty Trust Bank Nigeria $1,195.8 4,981 $240 18 Qatar National Bank Qatar $1,155.2 94 $12,350 18 Boubyan Bank Kuwait $996.4 110 $9,099 19 Al-Rajhi Bank Saudi Arabia $966.2 328 $2,948 19 Abu Dhabi Commercial Bank U.A.E. $904.6 436 $2,073 20 Kuwait Finance House Kuwait $923.1 351 $2,633 20 Ahli United Bank Kuwait $870.4 130 $6,685 21 Riyad Bank Saudi Arabia $864.3 571 $1,513 21 Dubai Islamic Bank U.A.E. $861.6 1,079 $799 22 Standard Chartered U.A.E. $692.9 302 $2,296 22 Qatar National Bank Qatar $844.9 238 $3,554 23 Arab National Bank Saudi Arabia $411.7 319 $1,291 23 Doha Bank Qatar $536.5 237 $2,262 24 Commercial Int’l Bank Egypt $367.2 238 $1,543 24 Saudi Hollandi Bank Saudi Arabia $503.3 301 $1,673 25 CrediMax Bahrain $363.0 76 $4,784 25 Mashreq Bank U.A.E. $465.8 254 $1,835 26 National Bank of Egypt Egypt $337.3 1,135 $297 26 Grindrod Bank South Africa $460.3 10,054 $46 27 Doha Bank Qatar $333.5 48 $6,986 27 FirstBank Nigeria $455.9 7,020 $65 28 Dubai Islamic Bank U.A.E. $318.2 121 $2,623 28 Attijariwafa Bank Morocco $453.8 1,065 $426 29 Diamond Bank Nigeria $310.5 75 $4,120 29 Mauritius Comm’l Bank Mauritius $425.6 648 $657 30 Saudi Hollandi Bank Saudi Arabia $293.7 120 $2,450 30 Banque Centrale Populaire Morocco $337.0 3,858 $87 31 Arab Bank Jordan, Bahrain, Egypt (1) $275.5 102 $2,714 31 Bank Audi Lebanon $303.5 335 $906 32 Gulf Bank Kuwait $273.5 79 $3,472 32 BMCE Bank Morocco $272.3 826 $330 33 Dubai First U.A.E. $257.7 98 $2,621 33 Blom Bank Lebanon $214.8 184 $1,169 34 Boubyan Bank Kuwait $251.2 25 $9,885 34 Arab Bank Jordan, Bahrain, Egypt (1) $209.4 922 $227 35 Bank Alfalah Pakistan $225.5 385 $586 35 State Bank of Mauritius Mauritius $203.5 348 $584 36 Mauritius Comm’l Bank Mauritius $192.5 120 $1,607 36 Bank Dhofar Oman $189.2 357 $529 37 BankMed Lebanon $170.0 29 $5,809 37 Bank AlJazira Saudi Arabia $157.1 66 $2,392 38 Blom Bank Lebanon $153.6 64 $2,403 38 Millenium BIM Mozambique $127.1 1,054 $121 39 HBL Pakistan $130.3 130 $1,003 39 Zenith Bank Nigeria $126.8 1,258 $101 40 Commercial Bank of Kuwait Kuwait $113.4 25 $4,532 40 Commercial Int’l Bank Egypt $122.9 639 $192 41 Credit Agricole Egypt $113.1 113 $997 41 National Bank of Egypt Egypt $117.8 5,332 $22 42 Banco de Fomento Angola $111.6 18 $6,318 42 United Bank for Africa Nigeria $114.2 2,091 $55 43 Credit Libanais Lebanon $97.2 46 $2,129 43 Bank Sohar Oman $112.4 221 $508 44 MCB Bank Pakistan $90.8 62 $1,467 44 Diamond Bank Nigeria $109.1 3,747 $29 45 African Bank South Africa $87.0 634 $137 45 Postbank South Africa $108.8 3,574 $30 46 Standard Chartered Bahrain $81.9 48 $1,721 46 Standard Chartered Kenya $106.8 139 $768 47 Ahli United Bank Kuwait $66.8 31 $2,126 47 Bidvest Bank South Africa $78.5 241 $326 48 Standard Chartered Jordan $59.2 44 $1,336 48 MCB Bank Pakistan $73.1 1,204 $61 49 Jordan Kuwait Bank Jordan $56.0 15 $3,799 49 Jordan Kuwait Bank Jordan $66.0 277 $239 50 Co-Operative Bank Kenya $55.3 48 $1,140 50 Co-Operative Bank Kenya $62.5 2,511 $25 Visa, MasterCard, American Express, and Diners Club consumer & commercial Includes Visa, MasterCard, Maestro, and domestic debit & prepaid cards. credit cards. (1) And Lebanon, Palestine, Qatar, U.A.E., U.K., and Yemen. (1) And Lebanon, Palestine, Qatar, U.A.E., U.K., Yemen. © 2015 The Nilson Report © 2015 The Nilson Report

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GENERAL PURPOSE CARD RESULTS VISA AND MASTERCARD RESULTS 2014 ‘14 Purch. Vol. ‘14 Total Vol. ‘14 Cards ‘14 Purch. Vol. ‘14 Total Vol. ‘14 Cards Issuer, Country Rank (mil. $U.S.) Rank (mil. $U.S.) Rank (000) Rank (mil. $U.S.) Rank (mil. $U.S.) Rank (000) IsraCard Israel 1 $33,446.1 4 $34,150.9 11 4,202 1 $28,867.0 2 $29,571.8 10 3,638 Leumi Card Israel 2 $18,287.7 13 $18,416.7 18 2,359 2 $18,287.7 10 $18,416.7 14 2,359 Israel Credit Cards Israel 3 $17,226.5 14 $17,587.7 17 2,519 4 $15,775.4 12 $16,109.3 15 2,229 Al-Rajhi Bank Saudi Arabia 4 $16,751.8 1 $84,752.7 6 7,356 3 $16,751.8 1 $84,752.7 6 7,356 Standard Bank South Africa 5 $14,534.0 3 $34,716.8 1 30,620 5 $10,858.2 3 $24,289.9 1 26,957 Absa Bank South Africa 6 $10,428.9 5 $23,358.4 2 16,181 8 $8,458.3 8 $19,134.3 3 11,675 National Bank of Kuwait Kuwait 7 $8,982.2 11 $19,355.0 30 1,114 6 $8,881.8 9 $18,964.1 31 1,003 Nat’l Commercial Bank Saudi Arabia 8 $8,967.5 2 $41,769.7 10 4,253 17 $2,283.9 35 $2,765.8 43 594 First National Bank South Africa 9 $8,616.8 6 $22,463.0 3 12,319 7 $8,616.8 4 $22,463.0 2 12,319 Kuwait Finance House Kuwait 10 $8,329.9 8 $20,892.0 25 1,306 9 $8,329.9 6 $20,892.0 22 1,306 Nedbank Limited South Africa 11 $8,090.7 9 $20,460.8 5 9,268 11 $5,376.7 11 $16,457.3 5 7,787 Emirates NBD U.A.E. 12 $7,574.7 7 $21,821.7 22 1,759 10 $7,570.6 5 $21,817.4 18 1,754 SABB Saudi Arabia 13 $4,400.1 17 $14,270.3 35 998 15 $2,456.1 36 $2,663.7 47 450 Abu Dhabi Commercial Bank U.A.E. 14 $3,900.5 21 $10,222.9 37 972 12 $3,900.5 17 $10,222.9 33 972 Riyad Bank Saudi Arabia 15 $3,464.8 12 $19,122.0 19 2,309 27 $883.7 51 $1,037.4 44 583 National Bank of Abu Dhabi U.A.E. 16 $2,934.4 10 $19,576.0 15 2,665 13 $2,934.4 7 $19,576.0 12 2,665 Gulf Bank Kuwait 17 $2,697.5 24 $6,218.0 56 344 14 $2,697.5 19 $6,218.0 53 344 Mashreq Bank U.A.E. 18 $2,327.7 23 $6,230.3 42 804 16 $2,327.7 18 $6,230.3 37 804 Arab National Bank Saudi Arabia 19 $2,270.8 15 $16,013.5 24 1,543 18 $2,270.8 13 $16,013.5 20 1,543 Commercial Bank of Kuwait Kuwait 20 $2,218.4 25 $5,985.3 46 667 19 $2,218.4 20 $5,985.3 39 667 Qatar National Bank Qatar 21 $2,000.1 26 $5,199.5 57 331 20 $2,000.1 21 $5,199.5 54 331 Investec Specialist Bank South Africa 22 $1,963.1 43 $2,195.5 75 93 21 $1,963.1 39 $2,195.5 72 93 Samba Financial Saudi Arabia 23 $1,647.8 16 $15,898.5 23 1,723 22 $1,621.4 40 $2,006.6 42 596 Bank Audi Lebanon 24 $1,595.7 30 $3,640.1 49 552 23 $1,578.0 25 $3,622.0 46 547 Banco de Fomento Angola 25 $1,550.1 27 $4,230.4 39 920 58 $114.9 70 $163.0 84 38 Boubyan Bank Kuwait 26 $1,247.6 38 $3,082.6 69 135 24 $1,247.6 33 $3,082.6 65 135 Guaranty Trust Bank Nigeria 27 $1,238.2 18 $11,325.8 9 4,986 25 $1,238.2 14 $11,325.8 8 4,986 Dubai Islamic Bank U.A.E. 28 $1,179.7 19 $11,283.9 28 1,200 26 $1,179.7 15 $11,283.9 25 1,200 Ahli United Bank Kuwait 29 $937.2 41 $2,437.2 67 162 67 $66.8 82 $81.8 86 31 Doha Bank Qatar 30 $870.1 37 $3,099.2 61 285 28 $870.1 32 $3,099.2 59 285 Saudi Hollandi Bank Saudi Arabia 31 $797.0 32 $3,537.2 51 421 29 $797.0 27 $3,537.2 48 421 Standard Chartered U.A.E. 32 $692.9 58 $807.6 58 302 30 $692.9 55 $807.6 56 302 Mauritius Commercial Bank Mauritius 33 $618.1 47 $1,882.6 43 768 48 $191.3 65 $255.4 68 118 FirstBank Nigeria 34 $501.8 44 $2,087.9 7 7,077 46 $204.6 47 $1,403.0 19 1,738 Commercial International Bank Egypt 35 $490.1 42 $2,270.6 40 877 31 $490.1 38 $2,270.6 35 877 Arab Bank Jordan, Bahrain, Egypt (1) 36 $485.0 35 $3,278.9 34 1,023 32 $485.0 30 $3,278.9 30 1,023 Grindrod Bank South Africa 37 $460.3 20 $10,339.9 4 10,054 33 $460.3 16 $10,339.9 4 10,054 National Bank of Egypt Egypt 38 $455.1 31 $3,598.7 8 6,467 35 $443.6 26 $3,587.2 7 6,458 Attijariwafa Bank Morocco 39 $453.9 33 $3,513.1 33 1,075 34 $453.9 28 $3,513.1 29 1,075 Diamond Bank Nigeria 40 $419.6 34 $3,438.3 13 3,822 36 $419.6 29 $3,438.3 9 3,822 Blom Bank Lebanon 41 $368.4 52 $1,293.7 62 248 37 $368.4 48 $1,293.7 60 248 CrediMax Bahrain 42 $363.0 66 $396.3 79 76 38 $363.0 62 $396.3 76 76 Banque Centrale Populaire Morocco 43 $337.0 22 $8,029.2 12 3,858 39 $285.0 22 $4,066.0 21 1,440 BMCE Bank Morocco 44 $272.5 36 $3,153.1 41 830 40 $272.5 31 $3,153.1 36 830 Bank Alfalah Pakistan 45 $261.9 49 $1,752.2 32 1,084 41 $261.9 44 $1,752.2 28 1,084 Dubai First U.A.E. 46 $257.7 68 $269.2 73 98 42 $257.7 64 $269.2 70 98 State Bank of Mauritius Mauritius 47 $252.6 55 $975.3 52 420 43 $252.6 52 $975.3 49 420 BankMed Lebanon 48 $214.3 60 $596.8 71 122 44 $214.3 57 $596.8 67 122 Bank Dhofar Oman 49 $211.6 48 $1,791.4 54 372 45 $211.6 43 $1,791.4 51 372 Bank AlJazira Saudi Arabia 50 $196.5 57 $821.9 78 83 47 $196.5 54 $821.9 75 83 General purpose: Visa, MasterCard, Maestro, American Express, Diners Club, and domestic general purpose consumer & commercial credit, debit, and prepaid cards. Visa/MasterCard results exclude Maestro and cards that carry only the or Cirrus brands. (1) And Lebanon, Palestine, Qatar, United Arab Emirates, U.K., and Yemen. © 2015 The Nilson Report

© 2015 HSN Consultants, Inc. THE NILSON REPORT AUGUST 2015 / ISSUE 1069 / THE NILSON REPORT 11 © 2015 HSN Consultants, Inc. THE NILSON REPORT All Rights Reserved. Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is strictly prohibited and may violate the intellectual property rights of HSN Consultants, Inc. dba The Nilson Report.

Top Issuers in the Middle East and Africa from page 1... East and Africa region in 2014 represented 18 When measuring general purpose credit cards countries. This group accounted for $207.79 billion only, among the 10 largest based on purchase volume, in purchase volume for goods and services in 2014, the issuers ranked 1st through 3rd were unchanged generated by 153.0 million cards in circulation. from 2013 and were all from Israel. The next 3 were MasterCard and Visa branded cards generated from South Africa, with Standard Bank moving up to purchase volume of $178.95 billion, which accounted 5th from 7th. Emirates NBD of United Arab Emirates for 86.1% of all general moved up to 7th from 8th. purpose card activity Purchase volume on MasterCard When measuring general by these 50 issuers. and Visa cards was $178.95 bil. purpose debit and prepaid MasterCard and Visa cards cards only, the 8 largest in circulation reached based on purchase volume 125.9 million by year-end and accounted for 82.3%. remained the same as in 2013, led by Al-Rajhi Bank IsraCard continued as the largest payment card of Saudi Arabia, Standard Bank of South Africa, issuer in the region based on purchase volume. National Bank of Kuwait, Kuwait Finance House, and Saudi Arabia and the United Arab Emirates had National Commercial Bank of Saudi Arabia. Guaranty the most issuers in the top 50 ranking with 8 each. Trust Bank of Nigeria moved up to 17th from 20th, There were 6 issuers based in Kuwait and 6 in South Boubyan Bank of Kuwait moved up to 18th from Africa. Also represented on the list were issuers from 22nd, Mashreq Bank of the United Arab Emirates Angola, Bahrain, Egypt, Jordan, Lebanon, Mauritius, moved up to 25th from 29th, FirstBank of Nigeria Morocco, Nigeria, Oman, Pakistan, Palestine, Qatar, moved up to 27th from 72nd, and Diamond Bank of and Yemen. Nigeria moved up to 44th from 52nd.

MVisa Payment Service Launches in India

Axis Bank, HDFC Bank, ICICI app with the merchant’s bank Visa sees future growth in Bank, and State Bank of India account details, which will then utilizing VisaNet in ways similar be sent to the merchant’s bank to what is accomplished with after the cardholder presses “pay.” Visa Direct. To support that effort The merchant and the cardholder it has decided to employ 1,000 will receive SMS text messages technology developers in India as in near real time to confirm well as another 1,000 in Singapore the transaction. and the U.S. over the next 12 to The 20,000 online and face- 18 months to create standardized to-face retailers and utility application programming plan to sign 20,000 merchants companies will print QR codes or interfaces to access VisaNet from to participate in a test of a new merchant codes on their invoices. every kind of connected device QR code-based mobile payment Cardholders will also be able to including appliances and cars. system called mVisa. Debit, use mVisa to make person-to- Uttam Nayak is Senior VP, Emerging credit, and prepaid cardholders person (P2P) money transfers. All Markets Digital at Visa Inc. in from those same banks will payment features are built on the Mumbai, India, 91 (22) 6725-8214, download the mVisa app and existing Visa Direct account-to- [email protected], www.visa.com. use their smartphones to scan account money transfer service a QR code on a tent card at within VisaNet. participating merchants to make David Robertson, Publisher the payments. The mVisa app August 14, 2015 will automatically populate the

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