Payment Cards in the U.S. Financial Services, Regulatory Compliance, Payment Gateway Visa > See P

FOR 49 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE OCTOBER 2019 / ISSUE 1163

Fintech-as-a-Service Platform Rapyd believes it is first to market with a comprehensive one- stop shop that start-ups and legacy corporations can use to gain Payment Cards in the U.S. financial services, regulatory compliance, payment gateway Visa > see p. 6 PURCHASE 5,093 Card Manufacturer Shipments—Payment Cards 2018 VOLUME ($BIL.) There were 6.30 billion credit, debit, and prepaid payment IN 2023 cards shipped worldwide in 2018 last year, a decrease of 2.9% Mastercard from 2017. Those cards included: Visa, Mastercard, UnionPay, 2,271 > see p. 6 EMVCo Secure Remote Commerce Checkout Amex 1,103 American Express, Discover, Mastercard, and Visa have launched EFT a one-click ecommerce checkout service based on the latest EMV- 759 compliant Secure Remote Commerce (SRC) specifications for > see p. 12 Prepaid 352 Off-the-Shelf Microcontroller for POS Devices Secure microcontrollers embedded in POS terminals are black box hardware that hold a library of cryptographic keys used for PIN entry and adjusting security parameters of the terminals as well as > see p. 5 Other Optical-Based, NFC-Like Proximity Payments © 2019 The Nilson Report 508 MetaSepia has created technology that facilitates secure information exchange between smartphones. The start-up’s Screen All U.S. Payment Cards Projected Beam software combines the benefits of secure NFC bidirectional > see p. 5 General purpose and private label consumer and commercial credit, debit, and prepaid cards combined to generate $7.266 Fighting EMV Counterfeit Fraud trillion in purchase volume for goods and services in 2018, an Start-up CardLatch is creating technology it believes will effectively increase of 9.8% from 2017. Credit card purchase volume eliminate losses to fraud from counterfeit EMV-compliant cards. accounted for 54.17% of that total, down from 54.37% in 2017. Currently, there are more than 9 billion EMV-compliant chip Purchase volume on debit cards, which includes prepaid, > see p. 12 accounted for the other 45.83%, up slightly from 45.63% the previous year. Purchase volume is projected to reach $10.086 Investments & Acquisitions—September 2019 trillion in 2023, with credit cards projected to account There were 70 acquisitions and investment transactions that for 54.13%. occurred in 18 countries in September 2019. The top purchase volume market share in 2018, when Prior issues: 1161, 1159, 1157, 1155, 1153, 1151, 1149, 1147, 1145 comparing all credit and debit products, was held by Visa credit > see p. 4 > see p. 8

INSIDE 2 – 3 Fast Facts CHARTS 7 Payment Shipments by Manufacturer 9-11 U.S. Credit and Debit Card Purchase 9 U.S. Credit Cards Projected and Type of Card Volume Market Shares, U.S. Credit 10 U.S. Debit Cards Projected 8 U.S. Credit and Debit Card Purchase and Debit Cards—Transactions, Cards, Volume and Transactions Cardholders, Accounts, and Outstandings

© 2019 HSN Consultants, Inc. THE NILSON REPORT VISIT US ONLINE AT WWW.NILSONREPORT.COM INCOMM HEALTHCARE’S multipurse wellness card lets THE PAYMENTS RISK & FRAUD CONSORTIUM is a health plans offer multiple supplemental benefit and well- newly formed coalition of payment companies whose aims ness incentive programs through a single card that allocates include increasing the efficiency of transaction processing program funds for specified products, such as over-the- and enabling effective fraud fighting while balancing the counter medications, health and wellness items, and food customer experience. Founding members include Advantage at the purse level. The card can be used at over 60,000 retail Payment Services, Enacomm, Central Payments, FSV and online locations connected to the OTC Network. Payment Systems, and Payment Solutions Consultants. Roderick Kersch is VP of Sales at InComm Healthcare, For additional information: [email protected]. [email protected], www.incomm.com.

FAST BARCLAYS U.S. CONSUMER BANK, which ranks 9th VARO MONEY provides a mobile app that gives customers among credit card issuers in the U.S., will test FreedomPay’s no-cost bank accounts, high-interest savings accounts, and DecisionPoint Network (DPN) marketing platform to promote FACTS features to help save and manage money. The Bancorp Bank the Eagles Extra Points Credit Card to Philadelphia Eagles provides the bank accounts. Varo provides customers with fans at the point of sale. The pilot program is running during surcharge-free cash withdrawals at 55,000 Allpoint ATMs the 2019 Philadelphia Eagles season. DPN functions during OCTOBER 2019 worldwide. Colin Walsh is CEO at Varo Money, colin@ the checkout process, offering ad exposure of 10 to 15 ISSUE 1163 varomoney.com, www.varomoney.com. seconds. Nate Ware is VP of Digital Development at Freedom- Pay, [email protected], www.freedompay.com. EVOLVE BANK & TRUST, which focuses on providing Michael Bolmer is Senior Director, Travel & Affinity No paid payment processing, ACH, debit/credit sponsorship, card Partnerships at Barclays, [email protected], advertising. issuance, and other services to fintechs in the U.S., will use www.barclaysus.com. No sponsored i2c’s technology to offer a full suite of customizable credit, content of any kind. debit, prepaid, and DDA products. Amir Wain is CEO at i2c, BREAD’S payment and decisioning platform offers multiple Ever. [email protected], www.i2cinc.com. B. Scot Lenoir is payment options tailored to a retailer’s brand and shoppers. Chairman at Evolve, [email protected], SplitPay lets consumers split smaller purchase amounts into www.getevolved.com. four equal interest-free payments, paid every two weeks. Bread installments lets customers pay for larger transactions KABBAGE, provider of loans to small businesses through an No company can pay over a longer period of time. The company’s Bread Edge online lending platform, now offers its customers Kabbage to be featured in our payment personalization engine is designed to offer the right Payments—payment processing that creates a unique URL payment option at the right time. Josh Abramowitz is CEO, newsletter. for businesses and sends requests through texts, emails, [email protected], www.getbread.com. or the web to collect payments from cards. The custom pay link eliminates the need to manually create new accounts, U.S. BANK has launched eBill Service, an electronic bill Posting this issue open new payment orders, or duplicate work for recurring presentment and payment service. For payers, it provides to a company server invoices. Rob Frohwein is CEO, [email protected], online and mobile to text, digital assistant, and intelligent or forwarding it to www.kabbage.com. voice response payment options. For billers, eBill Service other individuals streamlines operations and reduces billing costs. Alacriti, a CPI CARD GROUP has introduced its Second Wave access fintech company specializing in payments, provides the EBPP in your company card products for transit, hospitality, entertainment, and technology and digital disbursements. Manish Gurukula is is a violation of other markets. Second Wave cards feature a core made with CEO at Alacriti, [email protected], www.alacriti.com. copyright laws. recovered ocean-bound plastic. Jack Jania is VP, jjania@ Rich Erario is EVP and Head of Global Treasury Management cpicardgroup.com, www.cpicardgroup.com. at U.S. Bank, [email protected], www.usbank.com. Conferences & Seminars

3rd Annual International Payment Forum 2019: November 21-22, 2019. TrusTech 2019: November 26-28, 2019. The Palais des Festivals de The Austria Trend Hotel Savoyen, Vienna, Austria. Estimated attendance: Cannes, French Riviera, Cannes, France. Estimated attendance: 8,000+. 150. Cost for the two-day conference is $1,090 (€998). Subscribers to Cost for the three-day conference is FREE, including attendance to the The Nilson Report will receive a 20% discount. conference and exhibition. Contact Stephanie Dryander at Comexposium, (Use code ICTNIL2019.) Contact Mike Lind at ICT Solutions, 33 (1) 7677-1280, [email protected]. Register at 36 (70) 296-0374, [email protected]. Register at www.trustech-event.com. https://ict-solutions-hu.com/registration-page/.

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 DISCOVER has launched The Discover Store with Amazon to offer its HYPERPAY has become the first Middle East-based payment service provider cardmembers exclusive discounts throughout the holiday season. A dedicated to enable online merchants to accept UnionPay cards in the MENA region. digital storefront on Amazon will offer Discover cardholders discounts and Muhannad Ebwini is CEO at HyperPay, [email protected], deals on a selection of products from Amazon Launchpad. Discover will www.hyperpay.com. Han Wang is General Manager at UnionPay Intl. Middle sponsor holiday pop-ins offering the hottest gifts. From now through East, [email protected], www.unionpayintl.com. December, Discover it and Discover More cardmembers can earn 5% Cashback SPLITIT, provider of monthly installment payment plans for consumers, has Bonus on up to $1,500 in purchases at Amazon stores, Amazon.com, and more signed an agreement to make its Buy Now Pay Later program available to when they activate. Szabolcs Paldy is SVP, Marketing at Discover, Shopify’s network of more than 800,000 merchants in 20 countries. Buy Now [email protected], www.discover.com. Pay Later will also be available on the point-of-sale finance platform of Divido, RETURNLY is a provider to online merchants of a service that lets consumers which operates a network of more than 1,000 merchants, banks, and other pay with the credit tied to merchandise not yet returned. The company’s partners. Brad Paterson is CEO at Splitit, [email protected], newest service is International Returns, which lets global shoppers return www.splitit.com. Christer Holloman is CEO at Divido, christer.holloman@ items online from anywhere in the world. Eduardo Vilar is CEO, eduardo@ divido.com, www.divido.com. returnly.com, www.returnly.com. DCR STRATEGIES/TRUCASH, provider of incentive and reward programs, FORTER, a top provider of protection against ecommerce fraud, has released loyalty programs, disbursement systems, and marketing services to more than the seventh edition of its Fraud Attack Index. The company’s research 500 brands worldwide, will use i2c’s global card processing technology and indicates that fraud is rapidly evolving beyond the point of payment to loyalty infrastructure, including multicurrency and multilingual options. DCR account programs and abuse of return policies. Criminals are diversifying into customers manage more than a billion transactions annually tied to seven softer currencies that are not primarily financial and are having significantly million cardholders. Diana Fletcher is President at DCR, diana.fletcher@ more success in account takeover attacks. Michael Reitblat is CEO, michael@ trucash.com, www.trucash.com. Peg Johnson is Global Head of Client forter.com, www.forter.com. Experience at i2c, [email protected], www.i2cinc.com.

PAYSAFE GROUP, a payment processor, has rolled out Mobile Pay in the WINDCAVE (formerly Payment Express) has become an acquirer in New U.S. featuring iOS, Android, and Amazon apps developed with Apriva and card Zealand for all cards that operate on the Discover Global Network. Joel Martin reader hardware from AnywhereCommerce. Mobile Pay has already been de- is Sales Director at Windcave, [email protected], www.windcave.com. ployed by nearly 17,000 small and midsized merchants that use a smartphone Amy Parsons is SVP of Global Acceptance at Discover, amyparsons@ or tablet. O.B. Rawls is CEO, Global Payment Processing at Paysafe, discover.com, www.discovernetwork.com. [email protected], www.paysafe.com. SNAPPAY, a Canada-based payment gateway provider that lets merchants in UPGRADE, a consumer credit platform that offers personal loans, credit the U.S. and Canada accept Alipay and WeChat Pay QR code-based payments, monitoring, and education tools, has launched Upgrade Card, a Visa brand will offer facial recognition as a capability in its payment platform. Consumers credit card issued by Sutton Bank. Card charges are combined into installment could pay with a qualified digital photo during the checkout process. SnapPay plans payable over 12 to 60 months. Cross River Bank, a New Jersey State will target grocery store and QSR merchants for facial recognition. Spencer Xu Chartered Commercial Bank, is the issuer of the personal credit lines available is CEO at SnapPay, [email protected], www.snappay.ca. through Upgrade Card. Gilles Gade is CEO at Cross River, ggade@ OPENWAY has launched WAY4 Acquiring Start, off-the-shelf software for crossriverbank.com, www.crossriverbank.com. Renaud Laplanche is CEO at merchant acquiring. Start-ups, banks, processors, PSPs, and retailers can Upgrade, [email protected], www.upgrade.com. launch in-store and online acquiring businesses from the cloud or ALIASWIRE, a bill payment company, and OV Loop, a messaging payment on-premises. Dmitry Yatskaer is CTO, [email protected], platform, will work together to enable bill payments on both platforms. OV will www.openwaygroup.com. integrate Aliaswire’s bill presentment and credit/debit/ACH processing WIRECARD is giving online merchants the ability to offer installment pay- capabilities into its OV Conversational Commerce platform. Aliaswire will ment options to consumers. Kilian Thalhammer is VP Product Management incorporate OV’s Concierge Service into its EIPP/EBPP platform. Will Graylin Payment & Risk, [email protected], www.wirecard.com. is CEO at OV Loop, [email protected], www.ovloop.com. Scott Goldthwaite is President at Aliaswire, [email protected], www.aliaswire.com. BLIK, a mobile payment service based in Poland, will provide contactless functionality from within a mobile banking app via integration with Master- MAVERICK PAYMENTS is a full-service payment processor offering card’s tokenization platform, Mastercard Digital Enablement Service. Blik is merchants in the U.S. credit and debit card as well as ACH acceptance for available through most Polish banks. Payments can be initiated anywhere in in-person and online payments. It uses Avidia Bank to offer merchants instant the world. Dariusz Mazurkiewicz is President at Polski Standard Platnosci, the settlement deposits from card sales. Cliff Thompson is VP of Avidia Bank, Operator of Blik, [email protected], [email protected], www.avidiabank.com. Ben Griefer is COO at www.blikmobile.pl. Bartosz Ciolkowski is Manager for Poland, Czech and Slova- Maverick, [email protected], www.maverickpayments.com. kia at Mastercard, [email protected], www.mastercard.com.

© 2019 HSN Consultants, Inc. THE NILSON REPORT OCTOBER 2019 / ISSUE 1163 / THE NILSON REPORT © HSN Consultants, Inc. 2019 THE NILSON REPORT OCTOBER 2019 / ISSUE 1163 / THE NILSON REPORT 23 Investments & Acquisitions September 2019

Company Buyer/Investor Amount Country Company Buyer/Investor Amount Country (mil.) (mil.) B2B PAYMENTS LOYALTY/INCENTIVES DiviPay Series A 1 $1.6 Australia Splio unknown venture round 32 $10.1 France Drum seed funding 2 $11.0 U.S. Zestful seed funding 33 $5.0 U.S. Form3 Intl Payments grant 3 $6.1 U.K. MERCHANT PROCESSING/ACQUIRING Fundbox Series C 4 $176.0 U.S. GoPay PayPal 34 * China OKCredit Series B 5 $67.0 India PayMongo seed funding 35 $2.6 Philippines Pento seed funding 6 $2.8 Denmark Recurly Series C 36 $19.5 U.S. Slyp seed funding 7 $2.7 Australia Secure Retail NVM 13 * U.K. Sonovate debt/equity funding 8 $141.8 U.K. Stripe Series F 37 $250.0 U.S. Spendesk Series B 9 $38.9 U.K. TouchBistro Series E 38 $120.3 U.S. Teampay Series A 10 $12.0 U.S. MOBILE PAYMENTS Tipalti Series D 11 $76.0 U.S. ePassi Payments private equity round 39 $46.2 Finland Upfl ow seed funding 12 $2.7 France MishiPay Series A 40 $4.0 U.K. CARD MANUFACTURING PERSONAL FINANCE Placard HID Global 13 * Australia Digit Series C 41 $27.5 U.S. CARD PROCESSING Even Financial corporate round 42 $25.0 U.S. Tutuka Apis Partners 13 * U.A.E. Happy Money Series D 43 $70.0 U.S. CREDIT CARDS Joonko seed funding 44 $11.2 Germany Curve crowdcube $7.2 U.K. Moneyfarm Poste Italiane 28 $46.4 U.K./Italy FPL Technologies seed funding 14 $4.5 India Pluang Series A 45 $3.0 Indonesia Klar seed/debt facility 15 $57.5 Mexico SECURITY Petal debt facility 16 $300.0 U.S. Alloy Series A 46 $12.0 U.S. Security Bankcard Center TCM Bank17 $21.0 U.S. BigID Series C 46 $50.0 U.S. DEBIT CARDS HydrantID HID Global 13 * U.S. Greenlight Financial Series B 18 $54.0 U.S. Shape Security Series F 47 $51.0 U.S. LENDING Trulioo Series C 48 $45.7 Canada AmzLenders SellersFunding 13 * U.S. Trustpair Series A 49 $4.5 France Ant Financial Alibaba 19 * China SOFTWARE Capcito unknown venture round 20 $7.8 Sweden Delego Software EVO Payments 13 * U.S. FairMoney Series A 21 $11.0 France Deposit Solutions Deutsche Bank 50 $55.8 Germany ForwardLine Financial unknown venture round 22 $20.0 U.S. Fidel Series A 51 $18.0 U.K. Konfi o credit facility 23 $100.0 Mexico IceKredit pre-Series C 52 $47.0 China Kreditech unknown venture round 24 $22.0 Germany Kasisto Series B 53 $15.0 U.S. LexinFintech private placement 25 $300.0 China Mainstreet Computers Convenient Payments 13 * U.S. minu seed funding 26 $6.5 Mexico Mercury Series A 54 $20.0 U.S. Oportun IPO 27 $94.0 U.S. Numerated Series B 55 $15.0 U.S. PayBright goeasy 28 $25.9 Canada Orone France Tessi 13 * U.S. SuperAtom unknown venture round 29 $24.0 Indonesia Plaid Series C 56 $250.0 U.S. Terafunding Series B 30 $18.0 South Korea Rapyd Series C 35 $100.0 U.K. Transaction Capital Public Investment Corp. 31 * South Africa Royal Western United Merchant Serv. 13 * U.S. Valendo creditshelf 13 * Germany Talech U.S. Bank 13 * U.S. Terms not disclosed. 1 Led by ANZ. 2 Including American Express. From by Gobi Partners. 0 Including B Investment. 1 Bought minority stake. 2 Led Banking Competition Remedies fund. 4 Including Synchrony. 5 Led by by Ring Capital. Led by Thrive Capital. 4 Acquired 70% stake. 5 Including Lightspeed and Tiger Global. 6 Led by Point Nine Capital. 7 Including ANZ and Stripe. 6 Led by F-Prime Capital. 7 Led by General Catalyst. 8 Including Barclays NAB. 8 Investors not disclosed. Led by Index Ventures. 10 Led by Tribe Capital. Bank. Including First Fellow Partners. 40 Including American Express. 41 Led by 11 Led by Zeev Ventures. 12 Including ima Ventures. 1 Acquisition. 14 Including General Catalyst. 42 Including Citi. 4 Led by CMFG Ventures. 44 Including Ping Matrix Partners. 15 Led by Quona Capital. 16 From Jeff ries. 17 Purchased An and Raisin. 45 Led by Go-Ventures. 46 Led by Bessemer Venture Partners. outstandings. 18 Including JPMorgan Chase. 1 Purchased % stake. 20 Including 47 Led by C5 Capital. 48 Including Citi. 4 Including Alexco. 50 Purchased 5% SEB Venture Capital. 21 Led by Flourish Venture. 22 From the Vistria Group. 2 From stake. 51 Including Nyca Partners. 52 Led by Guohe Capital. 5 Led by Rho Capital Goldman Sachs. 24 Led by Runa Capital. 25 With PAG. 26 Including Bill Gates Partners. 54 Led by Charles River Ventures. 55 From Patriot Financial. 56 Including and Mark Zuckerberg. 27 On Nasdaq (OPRT). 28 Purchased minority stake. 2 Led Visa and Mastercard. © 2019 The Nilson Report

4 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Optical-Based, NFC-Like Proximity Payments from page 1... file sharing with the ubiquity of QR codes that centimeters apart. The exchange occurs up to 15 times leverage optical scanning. Screen Beam pairs the faster than with QR code scans between phones and display screens and cameras of two mobile devices. with significantly greater data density. In addition, Light-emissive visual QR code-based exchanges cannot be bidirectional. codes on one phone Because Screen Beam uses emissive beacon elements, scan the other phone. not the contrast elements found in QR codes, it can Those visual codes operate in a broader range of lighting conditions. are dynamic. Data Screen Beam’s inventor was one of the transfer is executed technologists behind mobile payment terminal when they flash ViVOtech. In discussions with possible investors, and shimmer in MetaSepia identified several offline use cases for full color at high Screen Beam that require nonrepudiation of a speed (60 to 100 transaction, including person-to-person wallet frames per second). payments involving cryptocurrencies, payments Screen Beam’s optical on airplanes, instant issuance of an ereceipt, and exchange is highly payments made with loyalty points. directional. In Currently, Screen Beam is a functioning prototype. comparison, radio The aim is to develop it into optical functionality frequency-based NFC communications software at NFC speed. MetaSepia file exchanges radiate spherical beams. is looking for partners—investment, technology, Screen Beam software can be deployed on any licensing, or intellectual property acquisition. smartphone using any operating system, including Kerry Brown is Chief Technology Officer at MetaSepia older models with single-directional cameras. Data in Palo Alto, California, [email protected], exchange between smartphones occurs when the www.metasepia.com. devices are held for 1 to 5 seconds between 4 and 40

Off-the-Shelf Microcontroller for POS Devices from page 1... implementing the functionality POS terminal’s cost of those devices for PCI and EMV compliance. by $6 per device. were shipped in Because they are specialty pieces YouTransactor the last two years. of hardware, as compared to is making the new It manufactures the low battery consumption chip available to its terminals, 74 mm microprocessors commonly other POS terminal including model found in consumer appliances, manufacturers uCube shown here, they add cost and complexity to and manufacturers in France, Malaysia, POS terminals. of printers, and Brazil. It is POS terminal manufacturer vending machines, 74 mm half the size of a YouTransactor has placed and PC-based point- smartphone and can cryptographic keys and PCI/ of-sale systems. Those vendors handle contact, contactless, and will benefit from QR code-based payments. ...reduces a POS terminal’s precertifications for YouTransactor will use the new PCI PTS 5ix and EMV chip in 1 million devices it will cost by $6 per device. L1/L2 contact and manufacture in Brazil over the contactless, and easier next 12 months. EMV compliance functionality integration compared to a Jean-Pierre Gressin is Chief in software on an off-the-shelf secure microcontroller. Sales & Marketing Officer at (STM32 microcontroller) chip YouTransactor has shipped YouTransactor in Paris, France, from STMicroelectronics. 1.4 million terminals to clients [email protected], YouTransactor says it reduces a in 22 countries. The majority www.youtransactor.com.

© 2019 HSN Consultants, Inc. THE NILSON REPORT OCTOBER 2019 / ISSUE 1163 / THE NILSON REPORT 5 Fintech-as-a-Service Platform from page 1... and processing, and more than sellers, merchants, on- 20 other services—all delivered demand platforms, and through a single API. New clients technology providers. onboard themselves through Rapyd, a member of the same API. Integration takes Visa and Mastercard, one day. issues cards in 12 countries and business. New clients include The typical Rapyd client uses has partnerships to do so in 8 companies in Latin America and three services and does so in five other countries. It has plans to Asia-Pacific. countries. The most widely used issue Visa or Mastercard cards in The company received $100 services are payment acceptance, 50 countries by the end of 2020. million in Series C funding last payouts, and ewallets. The Rapyd mobile wallet is a month. It will use part of that Rapyd has focused on bank account replacement. It does money to add more services developing local and alternative everything except make investment to its platform including more payment local payment methods. Some acceptance of the proceeds will go toward connections Rapyd plans to issue Mastercard expanding the company’s card worldwide as or Visa cards in 50 countries. issuing business. well as account- Rapyd is looking for card to-account bank issuer and merchant acquirer payments and ewallets. It can also decisions and is used mostly by partnerships worldwide. handle cash payments globally. delivery, ride sharing, and other Arik Shtilman is CEO at Rapyd in Rapyd can complete a payment clients in the gig economy. It can Tel Aviv, Israel, [email protected], to recipients in 105 countries. be tied to virtual and physical www.rapyd.net. It performs AML, KYC, and card accounts. Ewallets are the KYB services for marketplace fastest growing part of Rapyd’s

Card Manufacturer Shipments—Payment Cards 2018 from page 1... American Express, Diners Club, Discover, JCB, and The six largest manufacturers shipped a combined Maestro global general purpose credit, debit, and 3.21 billion payment cards last year, down 3.3% from prepaid cards; ATM and local-market-only general purpose credit, debit, and prepaid cards; and retail, Only G+D and Eastcompeace had oil/fleet, medical, airline, and private label credit YOY increases in shipments. and debit cards. Magstripe-only and chip cards are included here. 2017. Among the top six, only G+D Mobile Security T M P C and Eastcompeace had year-over-year increases R S 201 s. 201 in shipments. Thales (formerly Gemalto), Idemia, G+D, and an 201 (Mil.) 201 (Mil.) Can Toppan Printing included all cards shipped to their 1 Thales 92.0 9.0 2.9 bank customers in the Visa and Mastercard category, 201 1 including other high-security cards and some ATM- 1 Idemia 00.0 .0 . Market only or local-market-only debit cards.

201 G+D .0 .2 . Shares 10 9 Increases in payment cards shipped in 2018 9 201 Perfect . 1.0 9. over 2017 were reported by: TSYS, INCM, Placard, 9 1.01.0 Goldpac 2.0 2. 0.2 TGS Card Solutions, Beautiful Card, Inkript, Feitian Technologies, XH Smart Tech, MCT Cards Eastcompeace 1.2 1. . & Technology, Tag Systems, Taiwan Name Plate, 201 1 Other ,090. ,1. 2. Eastcompeace, MK Smart, G+D, and FutureCard. The Nilson Report

6 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Total Payment Card Shipments by Manufacturer 2018

Rank Manufacturer/Headquarters mil. Rank Manufacturer/Headquarters mil. Rank Manufacturer/Headquarters mil. 1 Thales (was Gemalto) Netherlands 927.0 17 FutureCard United Arab Emirates 46.1 33 Thames Technology U.K. 12.4 2 Idemia France 800.0 18 DZ Card Group Thailand 43.6 34 Inkript Cards Lebanon 11.7 3 G+D Mobile Security Germany 567.0 19 AustriaCard Austria 41.1 35 MK Smart Vietnam 11.5 4 Perfect Plastic U.S. 488.6 20 NovaCard Russia 39.5 36 Taiwan Name Plate Taiwan 9.8 5 Goldpac Group China, Hong Kong 264.6 21 Rosan Finance Russia 38.7 37 FoongTone Tech. Taiwan 8.9 6 Eastcompeace China 165.2 22 Plastkart Turkey 34.0 38 TGS Card Solutions Mexico 7.9 7 CPI Card Group U.S. 150.8 23 Tag Systems Andorra 28.8 39 Hogier Gartner Colombia 7.1 8 Hengbao China 139.7 24 ABCorp U.S. 27.9 40 Feitian Technologies China 6.4 9 MCT Cards & Tech. India 122.7 25 Exceet Card Germany 24.2 41 Asia Credit Card (ACC) China 5.0 10 Takcere China 104.2 26 PGP Group Hong Kong 18.3 42 M-Tech Innovations India 3.5 11 Valid Brazil, U.S.* 82.3 27 Masria Card Egypt 17.4 43 Toppan Forms Hong Kong 3.0 12 TSYS U.S. 77.3 28 Placard Australia 17.1 44 Beautiful Card Taiwan 2.4 13 XH Smart Tech China 69.9 29 ICK South Korea 16.0 45 INCM Portugal 0.9 14 Adera (was Jing ing) China/Sing. 68.5 30 Kona I South Korea 15.9 46 Workz Media Ireland 0.3 15 Toppan Printing Japan 49.6 31 KL Hi-Tech Secure Print India 15.3 Estimate. © 2019 The Nilson Report 16 Alioth Russia 47.1 32 Watchdata China/Singapore 15.1

Payment Card Shipments by Type of Card 2018

Visa & Mastercard Cards 31 Hogier Gartner 7.1 Other High-Security Cards Other Payment Cards Rank Manufacturer/Headquarters mil. 32 FoongTone Tech. 5.6 Rank Manufacturer/Headquarters mil. Rank Manufacturer/Headquarters mil. 1 Thales 1 927.0 33 Hengbao 4.5 1 Perfect Plastic 84.9 1 Perfect Plastic 71.4 2 Idemia 1 800.0 34 TGS Card Solutions 4.4 2 MCT Cards & Tech. 64.0 2 Takcere 52.1 3 G+D 1 567.0 35 Watchdata 2.6 3 Takcere 28.1 3 XH Smart Tech 23.8 4 Perfect Plastic 332.3 36 M-Tech Innovations 2.5 4 Adera Global 24.4 4 CPI Card Group 23.4 5 CPI Card Group 126.8 37 Toppan Forms 1.9 5 KL Hi-Tech Secure 14.1 5 Goldpac Group 16.8 6 Valid* 82.3 38 Eastcompeace 1.4 6 PGP Group 12.7 6 Toppan Printing 12.5 7 TSYS 74.8 39 KL Hi-Tech Secure 1.2 7 NovaCard 11.2 7 MCT Cards & Tech. 6.9 8 MCT Cards & Tech. 51.8 40 Beautiful Card 1.1 8 Alioth 10.9 8 FutureCard 6.7 9 Toppan Printing 1 37.1 41 INCM 0.9 9 XH Smart Tech 10.4 9 Feitian Technologies 6.2 10 Goldpac Group 35.0 42 Workz Media 0.2 10 DZ Card Group 10.4 10 PGP Group 5.6 11 Plastkart 34.0 11 Placard 7.2 11 ICK 5.5 1Includes all cards for bank clients. 12 FutureCard 34.0 12 AustriaCard 5.3 12 Rosan Finance 5.2 Estimate. 13 Alioth 33.3 13 FutureCard 4.8 13 Asia Credit Card 5.0 14 Rosan Finance 33.2 UnionPay Cards 14 TGS Card Solutions 3.6 14 AustriaCard 4.4 15 AustriaCard 31.3 Rank Manufacturer/Headquarters mil. 15 Kona I 3.5 15 TSYS 2.4 16 DZ Card Group 31.1 1 Goldpac Group 210.0 16 FoongTone Tech. 3.1 16 Tag Systems 2.4 17 NovaCard 28.1 2 Eastcompeace 163.7 17 Goldpac Group 2.2 17 Alioth 2.2 18 ABCorp 27.9 3 Hengbao 135.2 18 Inkript Cards 1.9 18 Exceet Card 2.2 19 Tag Systems 26.1 4 Adera Global 30.4 19 CPI Card Group 1.8 19 DZ Card Group 2.1 20 Exceet Card 22.0 5 Takcere 24.0 20 Beautiful Card 1.4 20 Taiwan Name Plate 1.7 21 Masria Card 15.9 6 XH Smart Tech 21.2 21 Tag Systems 0.3 21 Masria Card 1.5 22 XH Smart Tech 14.5 7 Watchdata 12.5 22 Taiwan Name Plate 0.3 22 M-Tech Innovations 1.0 23 Adera Global 13.7 8 ICK 1.5 23 TSYS 0.1 23 FoongTone Tech. 0.2 24 Thames Technology 12.4 9 Toppan Forms 1.1 24 ICK <0.1 24 Inkript Cards 0.2 25 MK Smart 11.5 10 Kona I 1.0 25 Toppan Forms <0.1 25 Workz Media <0.1 26 Kona I 11.4 11 Alioth 0.7 26 Eastcompeace <0.1 26 NovaCard <0.1 27 Placard 9.9 12 FutureCard 0.6 Includes American Express, Diners Club, 27 Hogier Gartner <0.1 28 Inkript 9.7 13 Rosan Finance 0.3 Discover, JCB, Maestro, RuPay, other 28 Kona I <0.1 domestic general purpose, ATM, and 29 ICK 9.0 14 Feitian Technologies 0.2 PIN debit cards. © 2019 The Nilson Report 30 Taiwan Name Plate 7.9 15 NovaCard 0.2

© 2019 HSN Consultants, Inc. THE NILSON REPORT OCTOBER 2019 / ISSUE 1163 / THE NILSON REPORT 7 All U.S. Payment Cards Projected from page 1... cards with 26.92%. Visa debit cards Purchase Volume ranked second with 23.77%, followed by Mastercard credit cards with Chg. ‘23 11.16%, American Express credit 2013 (bil.) Share 2018 (bil.) Share 2023 (bil.) Share vs. ‘18 cards at 10.62%, and Mastercard CREDIT CARDS $ 2,648.23 52.87% $ 3,935.75 54.17% $ 5,459.65 54.13% 38.7% debit cards at 9.98%. All other cards Visa $ 1,078.55 21.53% $ 1,956.11 26.92% $ 2,632.44 26.10% 34.6% combined for 17.54%. Visa credit cards are projected Mastercard $ 560.12 11.18% $ 810.90 11.16% $ 1,243.90 12.33% 53.4% to hold a 26.10% market share of American Express $ 633.28 12.64% $ 771.75 10.62% $ 1,102.75 10.93% 42.9% purchase volume by 2023, with Discover $ 127.11 2.54% $ 139.04 1.91% $ 176.95 1.75% 27.3% Visa debit cards in second place at Store $ 168.38 3.36% $ 181.81 2.50% $ 212.19 2.10% 16.7% 24.40%, followed by Mastercard credit cards with 12.33%, American Oil Co. $ 62.68 1.25% $ 55.94 0.77% $ 63.63 0.63% 13.8% Express credit cards with 10.93%, The Rest $ 18.11 0.36% $ 20.20 0.28% $ 27.79 0.28% 37.6% and Mastercard debit cards with DEBIT CARDS $ 2,360.38 47.13% $ 3,329.97 45.83% $ 4,626.45 45.87% 38.9% 10.19%. All other cards combined Visa $ 1,188.00 23.72% $ 1,726.90 23.77% $ 2,460.69 24.40% 42.5% are projected to account for the Mastercard $ 490.70 9.80% $ 725.45 9.98% $ 1,027.59 10.19% 41.6% other 16.05%. Consumer and commercial EFT networks $ 453.09 9.05% $ 579.03 7.97% $ 758.84 7.52% 31.1% general purpose and private label Prepaid 1 $ 220.15 4.40% $ 281.29 3.87% $ 352.20 3.49% 25.2% credit, debit, and prepaid purchase ACH $ 8.44 0.17% $ 17.31 0.24% $ 27.12 0.27% 56.7% transactions initiated by cards issued TOTAL $ 5,008.62 100.00% $ 7,265.73 100.00% $ 10,086.10 100.00% 38.8% in the U.S. reached 128.70 billion in 2018, up 8.6% over the prior year. 1 Private label prepaid. © 2019 The Nilson Report Debit card purchase transactions held a 66.29% market share, with credit cards generating the remaining Purchase Transactions 33.71%. Purchase transactions are projected to reach 172.20 billion Chg. ‘23 in 2023, with debit cards holding 2013 (mil.) Share 2018 (mil.) Share 2023 (mil.) Share vs. ‘18 a 66.43% share and credit cards CREDIT CARDS 28,258.1 31.20% 43,379.0 33.71% 57,812.1 33.57% 33.3% accounting for the other 33.57%. Visa 12,800.0 14.13% 23,885.0 18.56% 30,573.3 17.75% 28.0% Visa debit cards generated more Mastercard 6,353.3 7.01% 9,073.0 7.05% 13,247.5 7.69% 46.0% purchase transactions than any other brand or product in 2018, accounting American Express 4,459.7 4.92% 5,396.9 4.19% 7,645.5 4.44% 41.7% for a 34.50% market share. They are Discover 2,137.2 2.36% 2,469.1 1.92% 3,499.4 2.03% 41.7% projected to remain on top with a Store 1,624.8 1.79% 1,737.0 1.35% 1,991.8 1.16% 14.7% 34.49% share in 2023. Oil Co. 833.5 0.92% 775.2 0.60% 807.4 0.47% 4.2% Visa credit cards held a 18.56% The Rest 49.6 0.05% 42.9 0.03% 47.1 0.03% 9.8% share of purchase transactions in 2018. That share is expected to DEBIT CARDS 62,324.3 68.80% 85,316.2 66.29% 114,389.9 66.43% 34.1% decline to 17.75% in 2023. Mastercard Visa 31,771.0 35.07% 44,397.0 34.50% 59,392.1 34.49% 33.8% debit cards, which held a 14.24% Mastercard 12,504.4 13.80% 18,320.0 14.24% 24,997.5 14.52% 36.4% share in 2018, are expected to hold a EFT networks 11,789.5 13.02% 15,077.3 11.72% 20,943.6 12.16% 38.9% 14.52% share in 2023. Credit cards with the Mastercard Prepaid 1 6,115.7 6.75% 7,270.2 5.65% 8,676.5 5.04% 19.3% brand held a 7.05% share in 2018. ACH 143.7 0.16% 251.7 0.20% 380.2 0.22% 51.1% That is projected to grow to a 7.69% TOTAL 90,582.4 100.00% 128,695.2 100.00% 172,201.9 100.0% 33.8% share in 2023.

8 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive held a 11.72% share in 2018. Nearly all of those There were 6.96 billion credit, debit, and prepaid transactions were PIN-based. By 2023, EFT networks cards in circulation in the United States at the end of are projected to hold a 12.16% share. Mastercard and 2018, up 3.9% over 2017. Payment cards in circulation Visa (Interlink) PIN transactions are counted with are projected to reach 8.02 billion by the end of 2023. Mastercard and Visa debit figures.

U.S. Credit Cards Projected

At December 31, 2018, there Purchase volume C C P V were 1.12 billion general purpose for goods and services at Sas n 201 an 202 and private label consumer on credit cards issued in the U.S. 202 The average purchase amount of was $3.936 201 a credit transaction was $90.73. trillion in 23 2018, an increase 21% and commercial credit cards of 9.4%. Credit cards 2 in circulation in the U.S., up are projected to 21 48 50% 4.0% from year-end 2017. generate $5.460 trillion 20% Credit cards in circulation are in purchase volume 9 19 projected to reach 1.26 billion at in 2023. 5 20 year-end 2023. Over the next five years, 4 Mastercard brand credit cards 4 Outstandings are projected to have the highest percentage V on 19 ass onts ‘13 increase in purchase M u 21 ass onts ’18 volume (up 53.4%), A E u 9 ass onts Visa ‘23 followed by American S on ass onts ‘13 D on 29 ass onts ’18 Express (up 42.9%), Mastercard 201 The Nilson Report ‘23 Visa (up 34.6%), and ‘13 Discover (up 27.3%). Store ’18 ‘23 Purchase volume label credit card purchase American ‘13 on private label cards, transactions reached 43.38 billion Express ’18 where spending is in 2018, an increase of 8.4% ‘23 confined to select over 2017. Discover ‘13 ’18 general merchandise, By 2023, purchase transactions ‘23 specialty and are expected to total 57.81 billion. Bil. $100 $200 $300 $400 $500 $600 department stores, The average amount of a credit gasoline stations, and card purchase transaction was 2018 (bil.) Share 2023 (bil.) Chg. health and wellness $90.73 in 2018, up from $89.88 in Visa $ 471.13 41.93% $ 580.39 23.2% facilities, reached 2017. In 2023, the average amount Mastercard $ 309.51 27.54% $ 390.88 26.3% $257.95 billion in is projected to be $94.44. Store $ 130.83 11.64% $ 174.70 33.5% 2018, up 5.2% versus Credit card outstandings were American Express $ 119.84 10.67% $ 168.38 40.5% 2017. By 2023, $1.124 trillion at the end of 2018, Discover $ 72.88 6.49% $ 96.78 32.8% purchase volume is an increase of 5.8%. Outstandings Oil Co. $ 6.43 0.57% $ 6.85 6.5% expected to reach are projected to reach $1.435 The Rest $ 13.06 1.16% $ 17.24 32.0% $303.61 billion, up trillion by the end of 2023. CREDIT CARDS $ 1,123.70 100.00% $ 1,435.22 27.7% 17.7% versus 2018. © 2019 The Nilson Report Combined general Prior issues: 1141, 1097, 1074, purpose and private 1051, 1028, 1005

Purchase volume generated for purpose and private label debit issued by retailers, convenience goods and services by general cards issued in the U.S. reached stores, and gasoline sellers. They $3.330 trillion in 2018, up 10.3% held a 0.52% market share, an over 2017. Market share of debit increase from 0.51% the prior D C P V cards for Visa at Sas n 201 an 202 at 51.86% grew Visa and Mastercard gained from 51.54%. 202 share vs. EFT and prepaid. For Mastercard, market share 201 22 increased to 21.79% from 21.26%. year. Private label prepaid cards Visa and Mastercard debit figures issued by retailers, restaurants, 22% include PIN-based Interlink and other businesses generated and Mastercard transactions as $281.29 billion in purchase 2 21 well as prepaid cards that carry volume, up 4.5%. The market 52% their brands. share of private label prepaid 17% 19 EFT network cards including cards at 8.45% fell from 8.92%. 53 9 16 Star, Pulse, Nyce, and Accel General purpose and private 8% generated purchase volume of label debit and prepaid purchase $579.03 billion last year, up 7.9%. volume on cards issued in the U.S. 8 Market share declined to 17.39% is projected to total $4.626 trillion from 17.77% in 2017. by 2023. V u 1 ass onts Private label debit cards settled That year, Visa debit card M u ass onts through the ACH (automated purchase volume is projected to EFT on 99 ass onts clearing house) generated reach $2.461 trillion, followed by P on ass onts ACH u ass onts purchase volume of $17.31 billion, Mastercard with $1.028 trillion, 201 The Nilson Report up 12.0%. Those debit cards are and EFT networks at $758.84

Total Volume Total Transactions

2018 (bil.) Share 2023 (bil.) Change 2018 (mil.) Share 2023 (mil.) Change CREDIT CARDS $ 4,056.91 49.73% $ 5,608.90 38.3% CREDIT CARDS 43,684.3 32.58% 58,166.0 33.2% Visa $ 2,012.25 24.67% $ 2,697.83 34.1% Visa 23,947.0 17.86% 30,637.5 27.9% Mastercard $ 846.23 10.37% $ 1,290.39 52.5% Mastercard 9,107.0 6.79% 13,286.5 45.9% American Express $ 777.60 9.53% $ 1,110.95 42.9% American Express 5,440.8 4.06% 7,705.6 51.6% Discover $ 152.84 1.87% $ 194.47 27.2% Discover 2,527.5 1.88% 3,570.5 41.3% Store $ 181.81 2.23% $ 212.19 16.7% Store 1,737.0 1.30% 1,991.8 14.7% Oil Co. $ 65.98 0.81% $ 75.28 14.1% Oil Co. 882.1 0.66% 927.0 5.1% The Rest $ 20.20 0.25% $ 27.79 37.6% The Rest 42.9 0.03% 47.1 9.8% DEBIT CARDS $ 4,101.15 50.27% $ 5,477.53 33.6% DEBIT CARDS 90,400.2 67.42% 119,512.2 32.2% Visa $ 2,239.90 27.46% $ 3,024.86 35.0% Visa 48,128.0 35.93% 63,153.4 31.1% Mastercard $ 922.95 11.31% $ 1,238.68 34.2% Mastercard 19,619.0 14.63% 26,358.5 34.4% EFT networks $ 639.70 7.84% $ 834.66 30.5% EFT networks 15,077.3 11.24% 20,943.6 38.9% Prepaid 1 $ 281.29 3.45% $ 352.20 25.2% Prepaid 1 7,270.2 5.42% 8,676.5 19.3% ACH $ 17.31 0.21% $ 27.12 56.7% ACH 251.7 0.19% 380.2 51.1% TOTAL $ 8,158.06 100.00% $ 11,086.43 35.9% TOTAL 134,084.5 100.00% 177,678.2 32.5%

10 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive billion. Prepaid purchase volume on private label circulation are projected to total 6.75 billion at year- cards is projected to reach $352.20 billion, with ACH end 2023, dominated by private label prepaid cards debit card purchase volume at $27.12 billion. (5.82 billion), and followed by Visa (607.0 million), Combined general purpose and private label debit EFT systems (341.0 million), Mastercard (256.3 and prepaid card purchase transactions totaled 85.32 million), and ACH (33.4 million). billion in 2018, up 8.7% over 2017. Visa showed the biggest year-over-year (2018 vs. Prior issues: 1141, 1119, 1097, 1074, 1051, 1028 2017) gain (up 3.34 billion), followed by Mastercard (up 1.80 billion), EFT networks (up 1.43 billion), private label prepaid (up Cardholders 259.4 million), and ACH (up 13.5 million). By 2023, combined general purpose 2018 (mil.) Pct. of Adults 2023 (mil.) Pct. of Adults and private label debit card purchase CREDIT CARDS 182.0 71.67% 193.0 73.37% transactions are projected to reach Visa 125.1 49.26% 136.1 51.74% 114.39 billion. That year, Visa debit card purchase Mastercard 98.9 38.95% 106.5 40.50% transactions are projected to be 59.39 American Express 38.1 15.00% 46.0 17.50% billion, followed by Mastercard with 25.00 Discover 44.5 17.52% 47.3 17.99% billion, EFT networks with 20.94 billion, Store 112.1 44.16% 118.7 45.11% private label prepaid at 8.68 billion, and Oil Co. 26.1 10.28% 24.8 9.44% ACH at 0.38 billion. At year-end 2018, general purpose and The Rest 16.6 6.55% 18.2 6.91% private label debit cards in circulation DEBIT CARDS 208.7 82.20% 222.5 84.58% totaled 5.84 billion, an increase of 3.8% Visa 184.4 72.62% 194.0 73.75% over 2017. Debit and prepaid cards in Mastercard 146.3 57.61% 153.9 58.51% EFT networks 205.6 80.98% 218.5 83.06% Cards ACH 30.9 12.17% 40.0 15.21%

2018 (mil.) Share 2023 (mil.) Change © 2019 The Nilson Report CREDIT CARDS 1,122.3 16.13% 1,263.4 12.6% Visa 337.7 4.85% 358.4 6.1% Accounts Mastercard 230.6 3.31% 300.5 30.3% 2018 (mil.) Share 2023 (mil.) Change American Express 53.7 0.77% 60.5 12.6% CREDIT CARDS 947.3 51.17% 1,035.9 9.4% Discover 57.2 0.82% 68.9 20.6% Visa 270.4 14.61% 276.1 2.1% Store 392.0 5.63% 421.8 7.6% Mastercard 193.4 10.45% 240.4 24.3% Oil Co. 32.2 2.87% 32.7 1.4% American Express 42.3 2.29% 46.8 10.7% The Rest 19.0 1.7% 20.6 8.2% Discover 49.5 2.67% 53.8 8.8% DEBIT CARDS 1 5,835.7 83.87% 6,752.2 15.7% Store 366.2 19.78% 391.8 7.0% Visa 561.0 9.61% 607.0 8.2% Oil Co. 8.2 0.45% 7.9 –4.4% Mastercard 215.6 3.69% 256.3 18.9% The Rest 17.2 0.93% 19.0 10.3% EFT networks 320.9 5.5% 341.0 6.3% DEBIT CARDS 903.8 48.83% 962.4 6.5% Prepaid 2 4,989.4 71.7% 5,817.9 16.6% Visa 465.0 25.12% 488.7 5.1% ACH 32.1 0.46% 33.4 4.0% Mastercard 210.0 11.34% 228.7 8.9% TOTAL 6,958.0 100.00% 8,015.6 15.2% EFT networks 208.8 11.28% 223.0 8.9% 1Most debit cards carry a Visa or Mastercard logo in addition to EFT system logo(s). Therefore, the debit card total is less than the sum of the ACH 20.0 1.08% 22.1 10.4% ﬁ gures shown. However, some EFT network cards do not carry a Visa TOTAL 1,851.1 100.00% 1,998.4 8.0% or Mastercard brand, ust a secondary debit card brand. 2Private label prepaid cards. © 2019 The Nilson Report © 2019 The Nilson Report

© 2019 HSN Consultants, Inc. THE NILSON REPORT OCTOBER 2019 / ISSUE 1163 / THE NILSON REPORT 11 © 2019 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.

EMVCo Secure Remote Commerce Checkout from page 1... virtual payment terminals. The At checkout, entry of the buyer’s The SRC service was tested in aim is to create for all of their email address triggers presentation the U.S. By year-end, 10 sellers will cardholders a common of all payment cards they have on have deployed it. Rollout will occur payment experience at file with the service, regardless in the first half of 2020, focused on web and mobile sites of network brand. First-time upgrading over 350,000 existing as well as in mobile customers will be prompted to Masterpass, Visa Checkout, and apps and from provide the information needed to expresspay (American Express) connected devices. open an account. The specifications The payment The trademark is owned by and define interfaces for icon consumers used with permission of EMVCo. the secure exchange of payment will see at data in remote commerce checkout is the environments. Options include logo shown here. The trademark merchants to the EMVCo SRC using cryptograms and other is owned by and used with specifications. Masterpass, Visa dynamic data to improve security. permission of EMVCo. That Checkout, and expresspay will be It is compatible with requests company is owned by Amex, phased out in 2020. for payment tokens from token Discover, JCB, Mastercard, Visa, service providers. and UnionPay. Prior issues: 1154, 1138, 1131

Fighting EMV Counterfeit Fraud from page 1... cards in circulation worldwide. CardLatch’s answer is software While fraud from counterfeiting is that turns every EMV card into a an $8-billion problem worldwide, digital wallet capable of initiating a those losses occur substantially one-time-only virtual card number for from transactions initiated each transaction. This will be by a magnetic stripe, even combined with patent-pending when the card has a chip. technology that uses EMV CardLatch anticipates that protocol boundaries to “kill” as mag-stripe cards completely fade from use on authorization attempts from counterfeit cards. the global brand payment networks, criminals will Unlike the unique cryptographic number that increase efforts to steal card account details from accompanies an authorization request initiated EMV cards. when an EMV card interacts with an EMV terminal, Skimming devices that sell for about $150 are CardLatch’s digital wallet-like protection generates already available for sale from online marketplaces. numbers that cannot be predicted. They can be used to steal data from contactless CardLatch says its system will work within the chips when operated from within three feet of a existing card network infrastructure, leveraging card. Other vulnerabilities in the EMV network servers deployed at participating card issuers or infrastructure include cryptogram harvesting, remote their card account processors. A proof of concept is data extraction, man-in-the-middle attacks at ATMs, planned for the first quarter of 2020. and malicious code attacks in POS devices (called Eyal Brosh is CEO at CardLatch in Tel Aviv, Israel, eyal@ POS impersonation). cardlatch.com, www.cardlatch.com.

David Robertson, Publisher October 31, 2019

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