July / August 2017

COVER STORY: ROLLING THE DICE

ALSO FEATURED: REGTECH - REGULATION, REGULATION EVERYWHERE CYBERCRIME - INSIDE THE MIND OF THE HACKER Keep your business a step ahead through our software integration

Agent Portal Issuing Iso-Processing Clearing & Settlement Issuing Services Acquiring Global Acquiring General Ledger & Accounting Routing & Switching Switch Clearing & Settlement Dispute Management Interchange Optimisation E-Wallet Chargeback & Dispute Handling Merchant Portal Merchant Reward (Loyalty / Cash Back / Discount) Payment Facilitator

Email: [email protected] RS2.COM PAYMENTS INDUSTRY INTELLIGENCE

PaymentsCARDS & MOBILE July / August 2017 Volume 9, Issue 4

Production Team Alexander Rolfe Editor-in-chief and publisher Tel (+44) 1263 711 800 [email protected] “Money never sleeps” or so the saying goes. Seemingly, neither Joyrene Thomas does the payments industry. Staff Writer Tel (+44) 1263 711 800 [email protected] As we head full speed into the holiday season, the usual downing of tools does not seem much in evidence in 2017. Wendy Sanders Keep your business Head of Business Development Tel (+44) 1263 711 801 Summer is traditionally a time when people splurge their hard-earned cash. This is certainly [email protected] a step ahead through true in the online gambling world. Just as the house always wins, so do the processors and acquiring banks, or so it seems. In this issue, we take a look at why gambling is still viewed Gemma Rolfe General Manager our software as high risk. In a regulated environment with solid KYC requirements, should it still fall into Tel (+44) 1263 711 800 integration this category? [email protected] Gemma Haywood FinTech has existed and been written about for more than a decade. It has been the driving Subscriptions and General force behind some of the extremely positive changes seen within the financial services Tel (+44) 1263 711 800 industry. RegTech is the new player in town. We consider what RegTech actually is and how [email protected] it is helping financial service providers and end-customers in an ever-changing Adam Unsworth regulatory environment. Graphic Design Tel (+44) 7932905744 [email protected] When it comes to cyber security, I think as an industry we are very happy to point the finger at how easy some breaches have been, and how slow the admissions have been afterwards. Printing But what about the hackers themselves? What drives them and how do they select Micropress Printers their targets?

Finally, whether you are heading for sunnier climes or simply downing tools for a few weeks, PCM wishes you all the best for the summer.

Editorial Advisory Board

Alexander Rolfe, John Berns Managing Partner, Accourt

Sylvie Boucheron-Saunier SVP Financial Institutions, North America Agent Portal Issuing AlexRolfe & Europe, ACI Iso-Processing Clearing & Settlement Editor-in-chief and publisher, Robert Courtneidge Issuing Services Acquiring Payments Cards & Mobile Global Head of Cards and Payments, Global Acquiring General Ledger & Accounting Locke Lord

Routing & Switching Switch June Felix Clearing & Settlement Dispute Management President – Europe, Verifone

Interchange Optimisation E-Wallet Denise Gee Chargeback & Dispute Handling Director, Magna Carta

Merchant Portal Simon Hardie Merchant Reward Director, Magna Carta (Loyalty / Cash Back / Discount) All rights reserved. No part of the publication may be reproduced or transmitted in any form without the Payment Facilitator publisher’s prior consent. While every care is taken to provide accurate information, the publisher cannot accept liability for errors or omissions, no matter how caused. Payments Cards and Mobile The Stable, Hall Yard, Kelling [email protected] © PaymentsCM LLP 2017 Payment Cards and Mobile™ is owned and published by Holt, NR25 7EW, United Kingdom Email: RS2.COM PaymentsCM LLP ISSN 1759-829X +44 1263 711800 / paymentscm.com contents

06 - 07 PAYMENTS NEWS 23 ISSUING & ACQUIRING 25 CONTACTLESS

NEWS IN BRIEF IMPACT OF THE INTERCHANGE FEE UK: CONTACTLESS CARDS SET TO OVERTAKE All the latest news from the past 60 days REGULATION 18 MONTHS ON CASH IN 2018 It is now almost 18 months since the Rapid growth in the use of contactless cards 08 - 09 CARD NOTES introduction of the Interchange Fee Regulation means cash will be overtaken as Britain’s most (IFR). This covered a good deal more than the frequently used payment method by the end of THE DEATH OF THE PASSWORD? interchange fee caps and included substantial 2018, according to a new report. Passwords are no longer passing muster changes to the business rules for card as a security or authentication method. The acceptance and processing frameworks. APPLE AND VISA HIT WITH problem is quantity as much as quality. The PATENT INFRINGEMENT LAWSUIT average number of passwords registered to 24 MOBILE PAYMENTS Apple and Visa have been hit with an Apple a single e-mail address is 130, according to Pay patent infringement lawsuit by Universal password management company Dashlane. US BANKS TAKE THE P2P FIGHT TO SILICON Secure Registry (USR), a small US company, VALLEY RIVALS that alleges their partnership EUROPE CLIMBS IN PAYMENTS INNOVATION More than 30 US banks and credit unions infringes four of its patents. RANKINGS unveiled a unified person-to-person money While Asia remains home to most payments transfer service in mid-June. Known as Zelle, 26 POS TERMINALS innovation, Europe has leapfrogged Africa, the service covers around 86 million US North America and Latin America into second mobile-banking customers and competes CONSUMERS STILL LOVE CASH AS ATM place, findings from theGlobal Payments head-on with rivals such as from TURNS 50 Innovation Jury Report 2017 reveal. PayPal and Apple Pay from Apple. 1967: Ronald Reagan was inaugurated as governor of California, Elvis Presley 22 RISK & COMPLIANCE P2P BECOMING THE NEW SOCIAL NORM IN married and the UK entered negotiations THE US for membership of the European Economic GDPR: LESS THAN A YEAR TO GO AND COUNTING The latest Bank of America Trends in Community. It was also the year that the With the 25 May 2018 deadline for the Consumer Mobility Report found that P2P is first ATM was installed at a Barclays Bank in European General Data Protection Regulation quickly becoming the new social norm, as 36 Enfield, north London. This ushered in not only (GDPR) looming large, PCM considers the percent of adults currently use the service, with convenient 24-hour cash access, but also a background, content and opportunities of the millennials leading the charge at nearly double new way of interacting with banks new regulation. that rate (62 percent). and technology.

10-12 COVER STORY: ROLLING THE DICE

Acquiring gambling merchants is high risk. Or at least this always used to be the case. But in a regulated industry quick to adopt new technology, where the house always wins, how high risk is acquiring gambling merchants nowadays?

4 payments cards & mobile | July / August 2017 www.paymentscm.com contents

27 E-COMMERCE VISA COMMITS TO STRATEGIC INVESTMENT NEXT EVENTS IN KLARNA

PSD2 DRIVES A 37 PERCENT DECLINE IN Visa and Klarna announced they have reached SEAMLESS PAYMENTS EAST AFRICA ONLINE CARD VOLUMES an agreement for Visa to invest in Klarna, and 6-7 September, Nairobi A new study from Ovum, has attempted for intend to develop a future strategic partnership. www.terrapinn.com/exhibition/seamless-east- the first time to quantify the detrimental effect africa instant payments and PSD2 will have on NATIONAL MOBILE WALLET SERVICE traditional credit and debit card payments. LAUNCHES IN UAE THE FUTURE OF LENDING The first nationally sanctioned mobile wallet 19 September, London ONLINE CARD SPENDING TO DOUBLE BY 2021 solution for the United Arab Emirates has been www.marketforce.eu.com/events/financial- Global Payment Cards Data and Forecasts launched. Emcredit, a fully owned subsidiary of services/future-of-lending to 2021, an annual survey of the global the Dubai Economy, will launch empay, a secure payment cards sector, reveals that the value of mobile wallet and payment platform that offers SEAMLESS PAYMENTS VIETNAM e-commerce card payments made worldwide all United Arab Emirates residents the ability 6-7 September, Ho Chi Minh City grew by 26 percent during 2015 to reach $2.7 to easily pay for a wide variety of goods and www.terrapinn.com/exhibition/seamless- trillion, and represented 12 percent of all services using smart wearable technology or vietnam/ card expenditure. multi-functional devices. RESTAURANT TECH LIVE 28 PRODUCTS 30 CONFERENCES BAR TECH LIVE HOTEL TECH LIVE AMAZON CHALLENGES BANKS IN BUSINESS MONEY2020 EUROPE 26-27 September, London LOAN MARKET Money2020 Europe, held in Copenhagen www.restaurantbusinessshow.co.uk It started with book publishing before moving 26-28 June, was again a great success, to grocery retail, delivery, music streaming and covering payments and financial services PAYEXPO EUROPE television. The next industry Amazon has in its from core services to FinTech. Presentations 4-5 October, London disruptive sights is banking. The Seattle-based included those from senior executives of well- www.payexpo.com/europe behemoth has lent more than $1 billion to small known global companies to smaller, but equally businesses in the last year, according to a interesting, businesses. SHOPTALK EUROPE media statement. REGULATORS 9-11 October, CopenhagenALERTS BUSINESSshoptalkeurope.com/ INGENICO ANNOUNCE PSD2-COMPLIANT OPERATIONS SOLUTION FOR MARKETPLACES Ingenico ePayments, the online and mobile RISK 14-16 REGTECH:COMPLIANCE commerce division of Ingenico Group, has MANAGEMENT launched a new PSD2-compliant payment REGULATION, REGULATION EVERYWHERE solution designed specifically for online marketplace operators. POLICY AND PEACE OF PROCEDURES LG LAUNCHES DELAYED MOBILE PAYMENT MIND SYSTEM LG PAY LG managed to launch its heavily delayed mobile payment service dubbed LG Pay on 2 ANNUAL REVIEW LIBRARY June. The competes with look- & TESTING alike wallet offerings from and Apple Pay. TRADE 18-19 CYBERCRIME:BLOTTER 29 CONTRACTS INSIDE THE MIND OFATTESTATIONS THE HACKER VANTIV AGREES WORLDPAY PURCHASE IN £9 BILLION DEAL Worldpay has agreed a £9.1 billion deal to be acquired by US rival Vantiv, which sent shares in the company tumbling sharply.

www.paymentscm.com payments cards & mobile | July / August 2017 5 PCM DAILY NEWS FEED Get the latest news in brief payment news in your inbox CARDHOLDERS FROM the Chinese mainland THE NUMBER of EMV chip cards in circulation SUBSCRIBE ONLINE NOW AT using ATMs in Macau will now have to do more worldwide has increased 1.3 billion in the last 12 WWW.PAYMENTSCM.COM than enter their PIN to get at their cash. They will months to a total of 6.1 billion, according to the also have to scan their identity card and take a latest EMVCo figures. More than half of all card selfie. The introduction of facial recognition transactions undertaken face-to-face globally US FINANCIAL technology provider Fiserv is technology at 834 machines with ‘KYC ATM’ between January and December 2016 used EMV to buy beleaguered British firm Monitise for logos is part of a government crackdown to chip technology, up from 35 percent for the same £70 million ($88.72 million). The 2.9p per share halt capital outflows from mainland China. This period in 2015. The US and Asia demonstrated offer in cash is far below the 80p level at which topped $816 billion last year, according to data notable increases as they continued their Monitise traded in 2014, when it seemed to compiled by Bloomberg. The Monetary Authority EMV migrations. To qualify as an EMV be on the cusp of becoming a major mobile of Macau requested banks that have installed transaction, both the card and terminal must be payment technology player. The company has ATMs without “know-your-customer techniques” EMV-enabled. faced increased competition from free mobile to suspend cash withdrawals to China UnionPay payment systems, changed management cardholders from the mainland. Macao residents THE SAGE Group is to sell its North American repeatedly and issued revenue warnings. For and other overseas cardholders are unaffected. payment processing and acquiring operation the year to June 2016, Monitise posted a pre-tax to private equity firm GTCR for $260 million. loss of £243 million. Sage Payment Solutions provides credit card, automated clearing house, cheque, gift and loyalty card processing services to SMEs in the US and Canada. GTCR has committed up to $350 million of equity capital to the platform. Under SWIFT SAYS that it has signed an additional 22 the deal, SPS will be the preferred provider of banks to its Blockchain proof of concept (PoC). merchant processing services to Sage clients in The project is designed to determine if the US. The transaction is subject to customary Blockchain technology can help banks reconcile closing conditions and is expected to complete their international nostro accounts in real time in the third quarter. and is part of Swift’s Global Payments Innovation (GPI). “Collaboration is the cornerstone of THE BERLIN Group is to create an open, common innovation,” says Wim Raymaekers, head of and harmonised API standard to enable third banking markets and GPI at Swift. “This new party providers (TPPs) to access bank accounts group of banks allows us to greatly extend the under PSD2. The Group, which first met in Berlin scope of multilateral testing of the Blockchain in 2004, comprises banks, banking and payment application and thus add considerable weight to associations, national and international payment the findings. We warmly welcome the new banks schemes, and interbank processors working in and look forward to their insights.” the SEPA region. Built as an access to account framework, the standard will offer operational FOLLOWING APPROVAL by the Reserve Bank TRANSFERWISE, THE money transfer company, rules and implementation guidelines with of India, digital payments and e-commerce best known for its bank-bashing adverts is detailed data definitions, message modelling company has launched a payments now offering banking services. According to and information flows based on RESTful API bank. Paytm said all active wallet accounts its website, the Borderless account allows methodology. The Group plans to publish the full on its payment app would be transferred to customers to send, receive and organise their detailed standard in the fourth quarter of 2017. the payment bank, although users could opt money “without crazy fees or even-crazier out. With almost 218 million wallet accounts, exchange rates — just a small, fair charge FOLLOWING A review in December 2016, the UK Paytm has big ambitions. “We aim to become when money moves between currencies.” payment systems regulator (PSR) has published the preferred bank for 500 million Indians by Initially open to small businesses, sole traders its final decision on UK payment systems 2020,” said CEO Renu Satti. The launch comes and freelancers in Europe, the UK and US, infrastructure reforms. The industry must hard on the heels of a $1.4 billion investment TransferWise plans to expand the service to undertake a competitive procurement process from Japanese telecoms group Softbank, giving consumers later this year. Meanwhile, Klarna, for further central infrastructure contracts, Paytm a valuation of around $7 billion. best known for its instalment and ‘buy now, and adopt a common international messaging pay later’ digital invoicing products, has been standard for Bacs and Faster Payments. The granted a full banking licence by the Swedish PSR also believes that Mastercard’s recent financial supervisory authority. Klarna valued at acquisition of payments infrastructure provider, $2.5 billion in 2015 is expected to offer payment , will address issues around ownership cards and current accounts. and the level of competition in the market.

6 payments cards & mobile | July / August 2017 www.paymentscm.com news in brief

A CONSORTIUM of seven of Europe’s largest TECHNOLOGY COMPANIES Misys and D+H banks is stepping up efforts to build a have joined forces and to trade under the PCM DAILY NEWS FEED Blockchain-based trade finance platform. The new name of Finastra. Former Misys CEO, Digital Trade Chain Consortium, comprising Nadeem Syed, will continue as CEO of Finastra. Deutsche Bank, HSBC, KBC, Natixis, Rabobank, He leads a global financial software provider Insight is Société Générale and Unicredit, has selected with revenues of around $2.1 billion, 10,000 IBM to supply the Blockchain framework and employees, 9,000 customers and offices cloud services to connect counterparties. Trade in 42 countries worldwide. Finastra will be everything finance is known to be a lengthy, paper-based headquartered in London and maintain a North In-depth analysis, process, which can leave companies waiting American headquarters in Toronto. weeks for trades to settle. The Blockchain industry snapshots, platform is designed to simplify and increase news in brief and transparency around domestic and cross-border trade finance for SMEs in Europe. authoritative features. Payments Cards & Mobile's authoritative editorial coverage MICROSOFT HAS unveiled a new keyboard with hidden biometric fingerprint sensor. At the touch separates the hype of a button, users can scan a fingerprint to log from the happening into a Windows 10 account or others that use Windows Hello. The button is inconspicuous within the payment and appears as any other key. The keyboard can cards and mobile be used in a wired or wireless interface and will soon be available for $129.99, according to the payment industry. Microsoft website. BRITISH BANK TSB is switching its debit portfolio to Mastercard from 2018. This will make TSB the largest issuer of Mastercard- branded debit cards in the country as its Subscribe now customers represent 4.5 percent of all UK current account holders. In a media statement the card giant said that the seven-year deal represented “a significant investment by both parties.” It underlines Mastercard’s commitment to increasing its minority share of the UK debit market, which stood at less than four percent, according to latest figures in PCM’s Payment Card Yearbook 2016/17. THE BANK of England is to take over the running of the UK’s high-value payment system as part of its plans for a new national real- time gross settlement system (RTGS). CHAPS Co currently operates the high-value system, although the core settlement infrastructure is provided by the Bank of England via the PAYMENTS INDUSTRY INTELLIGENCE RTGS. “The reforms outlined will keep the UK at the leading edge globally by increasing resilience, broadening access and expanding PaymentsCARDS & MOBILE functionality,” said Andrew Hauser, executive director, Bank of England. The majority of paymentscm.com the RTGS enhancements will be live by the end of 2020. www.paymentscm.com payments cards & mobile | July / August 2017 7 card notes GLOBAL

THE DEATH OF THE PASSWORD?

Passwords are no longer passing muster as a security or authentication method. The problem is quantity as much as quality. The average number of passwords registered to a single e-mail address is 130, according to password management company Dashlane.

With so many passwords, people choose important consideration for all age groups Blockchain or distributed ledger technology memorable ones, reuse them across sites when asked about their key priorities for offers an alternative way to organise and write them down. It is no better in the their online banking service. Robust security identity systems, access and ownership of workplace. More than half of workers reuse and fraud prevention was also deemed very data. “Solutions you put in place are not a small rotation of weak passwords and 42 important by the majority of respondents. the property of one single owner,” explains percent admit to sharing passwords with Those born before 1946 gave this equal Simon Wilkinson, operations director, Tradle, a co-workers, Dashlane found. The death of the weight with ease of use, with more than three- company putting KYC data on the Blockchain. password has been consistently mooted for at quarters saying both were very important. “The way we have implemented our solution, it least a decade. However, its demise is being Consumers are broadly willing to switch won’t be our property or data. It belongs to the hastened by ineffective password security, to alternative identification and verification owner and is shared with organisations that changes in technology, plus regulatory, methods. The Aite Group found a clear they interact with.” commercial and competitive pressures. correlation between consumers’ openness to This puts the individual in control of their The rise in data breaches and identity theft change and their age. 48 percent of millennials own data and makes it portable between is prompting a password re-think. The average indicated that they were very willing to switch organisations and across borders. This total cost paid by breached organisations is methods, with another 47 percent somewhat streamlines on-boarding by removing around $6.5 million, according to Dashlane. willing to change. In contrast, only around 15 repetitive KYC processes and reliance on Meanwhile identity fraud has reached record percent of those born before 1946 were very paper-based identity documents. It de-risks levels. 173,000 cases of identity theft were willing to learn new methods. transactions and saves considerable time, recorded in the UK alone in 2016. Identity fraud cost and effort for both institutions and now represents over half of all fraud recorded CHAIN REACTION customers. This is key as the administrative by Cifas, the UK fraud prevention service, overheads associated with AML compliance nearly 90 percent of which is perpetrated Changes in technology are challenging alone last year was around $10 billion, online. password dominance. Advancements in according to Goldman Sachs. Against this backdrop, Visa recently cameras and fingerprint sensors Biometrics, trusted devices and Big Data announced that it was eliminating the use of enable the capture and verification of biometric authentication techniques will influence the static passwords for its online authentication details. This makes new authentication decline of passwords. However, they are likely to service, Verified by Visa, from April 2018. methods, such as fingerprints, finger vein, live on as a secondary or fallback authentication Elsewhere the PSD2 in Europe requires facial, voice or iris recognition, eye print and factor. In the same way, plastic cards continue strong customer authentication for all heartbeat, possible. The smartphone itself can to be embossed and contain a magnetic stripe electronic payments. Exemptions aside, also become a type of trusted token through many years after the introduction of EMV chip. financial institutions must perform two-factor the analysis of various device-related factors. This is to maintain interoperability in the face authentication for face-to-face and remote These include build information, media of legacy systems, processes and equipment. transactions. details, usage, application and location data. The history of the payments industry is additive Any sudden changes in categories of data rather than subtractive, so when it comes to the CONSUMER ATTITUDES could indicate possible account takeovers or death of the password, it could well be a case of impersonation of the true user. passwords are dead. Long live passwords! What is consumers’ attitude towards and understanding of various authentication methods? Research firm Aite Group surveyed CONSUMERS’ OPENNESS TO ALTERNATIVE IDENTIFICATION METHODS 1,095 US consumers who used online and/ Millennials 48% 47% 4% or mobile banking to find out. Consumers Very willing across the generations are quite comfortable Generation X 40% 42% 9% 10% Somewhat willing using passwords to access their online bank Not at all willing account. This can be partly attributed to Baby boomers 29% 53% 9% 9% habit. The username/password combination Don't know has been around for nearly two decades, and Seniors 16% 48% 11% 25% consumers well-trained in its use. Source: Moving beyond the password: consumers’ views on authentication, Aite Group, March 2017 Unsurprisingly, ease of use was the most

8 payments cards & mobile | July / August 2017 www.paymentscm.com GLOBAL card notes

EUROPE CLIMBS IN PAYMENTS INNOVATION RANKINGS

While Asia remains home to most payments innovation, Europe has leapfrogged Africa, North America and Latin America into second place, findings from theGlobal Payments Innovation Jury Report 2017 reveal.

As one of the most mature regions for a huge potential for growth. “If you launch Consumer businesses need scale. The costs electronic payments with many legacy something in Europe, you are having to replace of customer acquisition are often high, so systems, Europe has never been seen by an existing payment type with a new type. it is expensive to build the size of customer previous Payments Innovation Juries as Whereas in Asia and Africa, you can build a base needed. Yet with B2B propositions, particularly innovative. Indeed the region successful company by bringing new people such a high level of scale is not required. has been bottom of the innovation league into the financial system,” said Chaplin. Business customers are more used to being table since the report’s inception in 2008. Unsurprisingly when asked where they charged for services; revenue per customer However, the 2017 Jury sees some grounds would prefer to establish their next payments is generally much higher than for B2C. As a for optimism. venture, almost half the Jurors (47 percent) result of a comparative lack of innovation “There is a feeling that the PSD2 will allow said Asia. Similarly, ratings and comments in the B2B space, it is also easier to begin people to think differently and do new things. from the Jurors suggest that much of the solving real B2B problems — and with less This comes together with payment innovation payment innovation effort in FinTech hubs in intense competition. hubs in Berlin and London. Those two factors Europe and North America is being directed have lifted Europe off the bottom of the table,” to markets in Asia and Africa. THE HYPE AND THE HAPPENING said John Chaplin, chairman, Global Payments Innovation Jury. B2B VERSUS B2C FinTech is hot and has been for some However, the PSD2 has not happened yet, while. Payments start-ups, in particular, are so the Jurors are taking a forward view and The 2017 Jury also explored which payment receiving more investment than ever before. thinking that if it delivers, Europe will be sector — B2B or B2C — offered the most profit While some will succeed, the vast majority more innovative. It would be hard for Europe potential for new business ventures. Taken will not. Payments is an industry that seems to overtake Asia in the innovation stakes, as a global average, the Jurors seemed fairly to be constantly working its way through a Chaplin concedes. evenly split, coming out narrowly in favour of technology hype cycle. B2B payments over B2C (55 percent versus 45 “The fact that an innovation is over-hyped ASIA THRIVES percent). However seen regionally, the figures doesn’t mean that it doesn’t deliver benefits tell a different story. for the industry, rather that the claims made With 64 percent of the vote, Asia remains “In the developed markets, particularly are exaggerated. And hype tends to lead the clear leader in payments innovation. The Europe, 75 percent think [the opportunities lie to misallocation of investment resources,” opportunities in the region are huge due to a in] B2B. If we go to China or Africa, the figure explained Chaplin. young, growing population and the willingness is around 65 percent in favour of B2C,” Chaplin In 2013, the Jury selected mobile wallets to accept new technologies. There is also explained. “In Europe and the developed and NFC for the hype award. The industry the sheer size of the un- and under-banked markets, it’s very clear that the smart people is still waiting for mobile wallets to achieve population in economies where the reach of are investing in B2B for a couple of reasons. widespread uptake. Similarly contactless traditional banks is limited. Firstly, it is almost impossible to make a cards, despite strong usage in Australia and Asia has less regulation on price, meaning margin on the B2C side, when regulators force Europe, are by no means a global success. the profit motive can run stronger. There are the price down. Secondly, it is getting quite In 2015, the Jury decided that Apple Pay was also a lot of underbanked Asians and thus difficult to build scale,” he said. over-hyped for similar reasons. In 2017, the Jury gave the hype WHICH REGION WILL INNOVATE MOST IN PAYMENTS IN THE NEXT TWO YEARS? award to distributed ledger technology. They believed that the technology ASIA 64% could deliver real benefits for financial services businesses. However, they also EUROPE 14% considered many of the claims made about its applicability to retail payments to AFRICA 12% be exaggerated. NORTH AMERICA 8% The Global Payments Innovation Jury is a panel of 70 CEOs and senior industry LATIN AMERICA 2% executives from 37 countries across six continents. Source: Global Payments Innovation Jury Report 2017

www.paymentscm.com payments cards & mobile | July / August 2017 9 ROLLING THE DICE

by Joyrene Thomas

Acquiring gambling merchants is high risk. Or at least this always used to be the case. But in a regulated industry quick to adopt new technology, where the house always wins, how high risk is acquiring gambling merchants nowadays?

Humans love to gamble. The first pair of dice was In gambling, the numbers can get very big very discovered in an ancient Egyptian tomb dating from quickly. A large, well-established online gambling around 3,000 BC. The ancient Chinese used tiles merchant can process $90-120 million per month in games of chance. Indians circa 1,500 BC loved on average on cards, according to one industry betting on chariot races. Gambling — as well as observer. If the merchant also runs physical betting attempts to prohibit it — have been part of human outlets, accepts alternative payments and is multi- history from even before the first casinos in 17th acquired, this can be significantly higher. This dwarfs century Italy and the invention of the one-armed a typical large e-commerce merchant with average bandit in the 1890s. But is an industry founded on monthly card takings of $5 million. Gambling profits managing its risks actually high risk to acquire? and volumes are high. But what about the risks?

THE LUCK OF THE DRAW ANTE UP

Gambling is playing games of chance to win money. The main risks within the gambling sector are Yet the definition is as short as the scope of the activity money-laundering, fraud and regulation. Gambling is broad. Gambling encompasses everything from products could be used for money transfer between buying a raffle or lottery ticket, entering a sweepstake people colluding with one another and/or with to playing bingo. It includes betting on horse races or the house. Regulatory requirements vary between other sporting events, visiting casinos, and playing fruit jurisdictions, but know your customer (KYC) checks machines, arcade games or other gaming machines. routinely conducted on players at registration and The gambling industry generated around $365 for pay-outs over certain amounts aim to prevent billion worth of profits in 2016, according to H2 money-laundering. Some gambling authorities also Gambling Capital (H2G), a specialist research firm. restrict pay-outs to the payment method used to Online gambling is the fastest-growing sector, charge the account. Others require operators to accounting for 11 percent of profits. One of the most prevent players choosing their tables in online poker lucrative markets for gambling is Australia, which or similar games. began to deregulate the industry in the 1980s. Betting The gambling sector experiences fraud risks, losses per resident adult in Australia amounted as any other. Fraudsters may monetise legitimate to $990 last year. That is 40 percent higher than identities by creating and using online gambling Singapore, the runner-up, and around double the accounts fraudulently. A legitimate customer average in other western countries, such as Ireland may also charge gambling transactions back, and Finland, H2G figures say. claiming they did not make them. This type of

10 payments cards & mobile | July / August 2017 www.paymentscm.com cover story

UK since November 2014. As such, gambling the legitimacy of the customer. It also guides “The gambling industry websites trading with, or advertising to, insights into whether they are a recreational is usually at the consumers in the UK must be licensed by the UK player, or someone who may become a problem forefront of using new Gambling Commission. Any operator offering gambler or a future fraud liability. remote gambling services to UK consumers Being cognisant of and able to manage technologies to mitigate without a UK Gambling Commission licence is money-laundering, fraud and regulatory risks risks and understand acting illegally. — their own risks — is table stakes for any payments.” gambling operator. Competitive advantage TABLE STAKES comes from how they manage these risks and Dave Excell, Featurespace differentiate themselves not only to customers, So much for the main gambling sector risks. but also in the back-office with their use of ‘friendly fraud’ on payment cards takes on a But whose risks are they? Who owns and is people, processes and technology. particular cast with VIP players, depositing responsible for managing them? 30-40 gambling transactions a month over “The majority of the risk is with the gaming SEE YOU AND RAISE YOU several months. Repudiated transactions operator,” says Dave Excell, chief technology in these cases could amount to hundreds officer and co-founder of Featurespace, an Acquirers need to understand the gambling of chargebacks, triggering card scheme adaptive behavioural analytics company spun operators’ risks and how they are managing chargeback thresholds. out of Cambridge University. “There’s the them to evaluate their own risk exposure. Merchants may be able to defend such financial loss associated with fraud. There’s Naturally, acquirers also face risks of their chargebacks by providing compelling evidence the operational cost of making sure that these own. The main ones are variants of those of cardholder participation. Yet it still counts in things are managed correctly. There’s also the faced by their merchants, particularly around their fraud and chargeback ratios, leaving them reputational risk if an operator is associated the complexities of anti-money laundering and open to potential acquirer fines or withdrawal with lots of bad transactions. That has a regulatory requirements. of their payment facility in a worst case negative connotation to customers, but also How gambling is marketed is also important scenario. It is unlikely that one VIP customer within the industry,” he says. for the assessment and management of could so adversely impact a large operator. In some senses, gambling is inherently risky, acceptance risks. If a merchant’s sales and However, smaller to mid-sized operators are Excell maintains. A gambling operator is very marketing practices violate applicable laws, more vulnerable. good at managing those risks to make a profit transactions for legal services may become Regulatory risks arise if a merchant does for themselves. That is what the organisation illegal. As gambling is commonly cross-sold via not have the appropriate gambling licence or is built around — risk management — and adult entertainment affiliates, acquirers face adhere to the terms of their licence. Licensing understanding the different types of risks that the second-order consequences of heightened regimes vary according to jurisdiction, and can exist. This ranges from understanding how affiliate fraud risk. while not the same, there are similarities. card games work, setting odds and preventing Acquirers face operational risks. “You have all the basic principles: to verify the people from gaming the system. “The gambling Correspondent banks are de-risking settlement associated games on the platform, to vet the industry is usually at the forefront of using new of US dollar funds to gambling merchants, even associated directors and beneficial owners [of technologies to mitigate risks and understand if the transactions were not performed by US the operator], to run KYC, to impose customer payments. They are always trialling new and citizens. For example, if a French citizen places due diligence at the time of pay-out to ensure emerging technologies and using that as a a US dollar bet on a website operating entirely that no money-laundering happens,” explains competitive advantage,” says Excell. legally, acquirers may have difficulty settling Christian Chmiel, CEO, Web Shield, a risk How exactly? “Within a gambling the transaction onward to their merchant in US management company. organisation, there is a tremendous amount of dollar, industry insiders confirm. Gambling merchants and those who acquire data to understand what the customer is doing. Acquirers are also more open to negative them have to keep abreast of regulatory We work with the gambling operator to manage balances with gambling merchants. They changes. It is a dynamic space as the growing the lifecycle of the customer,” says Excell. may owe issuers more than the issuers owe importance of online and mobile channels has This covers customer acquisition, registration, them, either due to refunds, chargebacks or led many countries to re-evaluate gambling funds deposit and gambling behaviour. Factors original credits used for payment of winnings. legislation. The cross-border nature of such as how much the customer wagers, how If the gambling merchant is multi-acquired remote transactions complicates matters and quickly and the types of bets placed, help to and switches transactions between acquirers, heightens risk. Moreover, card scheme rules build a picture of the player. the exposure to negative balances increases, require transactions to be legal in both the There are also factors explicitly around particularly if acquirers become liable for country of the cardholder and merchant to be payment, such as the different sources used more pay-outs than they have accepted in entered into interchange. to fund the account, frequency of top-ups and wagers. Naturally, acquirers can recoup For example, remote gambling has been payment data cross-checked against IP and any shortfall from their merchants, but they regulated at the point of consumption in the device details. This provides information about would be exposed for a certain period and www.paymentscm.com payments cards & mobile | July / August 2017 11 cover story their liquidity affected. Acquirers should After all, unaddressed risks are more Both major card schemes fine clients who implement mechanisms to limit outgoing dangerous than known risks mitigated with have been found to be non-compliant with flows to the merchant. This helps prevent the appropriate controls. scheme rules. As commercial organisations, negative balances without approval and What is the position of the card schemes they could be seen to benefiting from the automates top-ups from the merchant, whether with regard to gambling merchants? Both behaviour of bad actors. Firstly from the in the form of additional collateral and/or Mastercard and Visa categorise gambling volume and any associated click fees from rolling reserves. merchants as high brand-risk, if not high purchases and pay-outs, and secondly from These and other general acquirer risks risk, largely because it is to them. They have fines. How did the schemes counter claims notwithstanding, gambling merchants are not programmes in place, including registration around the perception of a conflict of interest considered high risk by many acquirers. requirements for acquirers active in the when dealing with non-compliance among Indeed many acquirers target gambling gambling sector. This is to protect their their clients? business to help balance fraud and own brands and systems from financial and “Our operations comply with both national chargeback ratios within their portfolios. reputational risks as much as it is to protect law and EU requirements and we enforce Gambling is a high-volume sector with play the acquirers from such risks. a strict set of rules that forbid the use of a happening within a limited timeframe, so The reality of high-risk, or indeed any, Visa payment mechanism to buy an illegal traditional credit risks and chargebacks acquiring is nuanced at the macro level, product or services,” said Visa Europe in a arising from non-receipt of goods or services and the schemes are in a difficult position. written statement. are negligible. They must manage their own risks, but Chargeback rates for gambling merchants also balance the interests, rights and ALL BETS ARE OFF are similar to those of large retailers. They responsibilities of clients participating in their are certainly much less than for adult and system. It is challenging to create a common We apply probability to almost every nutraceutical merchants and those using understanding around risk and how it is best conscious decision we make. From taking membership-based marketing models. managed across borders, cultures and risk an umbrella on assessment of the weather Moreover, the larger the gambling operator, appetites. to choosing when to cross the road. The generally the lower the fraud and chargeback For some acquirers, high-risk acquiring whole of the gambling industry is founded rate. Such operators tend to have more may be analogous to smoking cigarettes. on judgements around the balance of resources and invest more in technical There are those who enjoy smoking and have probabilities or risks. It may happen or it systems to better manage their risks. no intention of quitting. They know it may be may not. Either way, it matters because it will bad for their long-term health and the health have an impact, whether positive or negative. CARDS ON THE TABLE of others around via passive smoking, yet Good, well-run gambling operators know and they wish to continue. Dealing with the small understand this — and take active steps to Is acquiring gambling merchants actually minority of organisations, which are aware manage their own risks. So do good, well-run high risk? “Yes, it is high risk if you don’t of the rules, consciously flout them and acquirers. understand the business, how the traffic is prioritise evading detection over compliance Those serious about acquiring gambling generated, how the games work, and solely is a difficult balancing act. merchants need to take it seriously. rely on the licence provided by the merchant,” PCM asked both major card schemes about Continuously establishing the context, says Chmiel. the nature and ownership of gambling risks identifying, analysing, evaluating and Gambling merchants require a certain type and how they engaged with acquiring clients treating risks are the fundaments of risk of management. If acquirers are able to do to mitigate risk and protect the integrity of the management. Acquiring gambling merchants that, it is more business-as-usual than high payment system. A Mastercard spokesman is not something any acquirer can dabble with risk. Acquirers are potentially more exposed advised engaging with the acquirers as in the corner of their portfolio. It is not about to risk if they underwrite merchants, whose they held the direct relationships with the rolling the dice. businesses they do not fully understand. gambling sector.

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REGULATORS ALERTS BUSINESS OPERATIONS

COMPLIANCE RISK MANAGEMENT

POLICY AND PEACE OF PROCEDURES REGULATION, MIND REGULATION ANNUAL REVIEW LIBRARY & TESTING EVERYWHERE TRADE BLOTTER ATTESTATIONS by Joyrene Thomas

There was a regulatory alert every 12 minutes in 2015, according to Thomson Reuters. With the pace of regulatory change showing no signs of let-up and compliance budgets ballooning, regulation is ripe for disruption. Enter a new breed of RegTech disruptors threatening to do for regulation what FinTech is doing for financial services.

The statistics are unanimous. The volume unavoidable. Everything from capital markets “Trust is one of the most of regulation as well as its impact on firms and trading systems to consumer finance is important factors for the and customers is growing. Around $80 billion regulated. Moreover firms encounter regulation is spent globally on governance, risk and every time they on-board a new customer or future sustainability of our compliance each year, and this is set to reach complete a trade. Customers encounter it 200- financial sector, because it $120 billion in the next five years, according plus times per year, every time they conduct a is changing. Technology is to FinTech research firm Let’s Talk Payments. banking transaction or make a payment. Regulatory fines for non-compliance have Within European legislation, regulations driving those changes.” exceeded $320 billion since 2008, according differ from directives. Elsewhere policies Subas Roy, International RegTech to Deloitte. differ from standards, from best practice, from Association Around 200 regulatory revisions are published consultations and recommendations. Moreover, daily across the world. Practitioners are requirements straddle geographies as well as WHAT IS REGTECH? expecting no let-up in the volume of regulatory lines of business. The plethora of sometimes change or the time required to track it. Nearly conflicting requirements leave many wondering The de facto definition of RegTech comes 70 percent of firms in a 2016 Thomson Reuters which way to turn. from the Financial Conduct Authority (FCA), survey expect regulators to publish even more There is an industrywide need to drive down the UK financial services regulator. It defines information in the coming year. A quarter expect compliance costs and manage risk better. This is RegTech as a “sub-set of FinTech that focuses significantly more. More than a third of firms particularly for high-volume, real-time, duplicated on technologies that may facilitate the delivery spend at least a whole day every week tracking costs, such as know your customer (KYC) and of regulatory requirements more efficiently and and analysing regulatory change. As to the anti-money laundering requirements. There is effectively than existing capabilities.” personal impact, 60 percent of respondents also the opportunity to improve the customer But is it really all about regulatory expect more personal liability for compliance experience and increase the confidence of requirements? Come to that, is it all about officers in the next year. both parties to transact. Regulation is ripe efficiency and effectiveness? For Subas The scope and frequency of regulation is for disruption. Roy, chairman of the International RegTech

14 payments cards & mobile | July / August 2017 www.paymentscm.com regtech

Association (IRTA), it is a matter of not only THE TECH IN REGTECH “How can technology but also. RegTech is about helping to reduce help deliver the intent, the cost and improve the effectiveness of There is good RegTech and bad RegTech. As regulatory compliance. However, it is also well as Reg-wash, the bandwagon-jumping purpose and requirements about innovation and achieving consumer promotion of particular solutions that claim to of regulation to make trust. The current IRTA RegTech definition meet regulatory requirements. So, what does financial services better, reflects this. good RegTech look like? “RegTech signifies de-complexing and Unsurprisingly for a movement that is the cheaper, faster and safer for de-risking the risk and regulatory environment younger brother of FinTech, good RegTech customers and businesses?” to adapt to a new, alternative and more open is concerned with the use and impact of Ed Carrell, Barclays Bank way of demonstrating residual regulatory technology. “It needs to be nimble and compliance […] helping to reduce cost and leading-edge,” says Roy. “Because where we five percent of that cost. This is largely through complexities, improve effectiveness of financial are headed, technology is driving change in the use of technology to streamline and digitise services and most importantly achieve the trust behaviour, culture and ways of working.” regulatory processes. of consumers.” Good RegTech incorporates adaptability and “With the changes in demographics, millennials If trust is one of the most important factors flexibility, so the solution can be applied cross- are looking for nimbler, faster services. Therefore for the future sustainability of any sector, border and into the future. Many RegTech this is a clear indication where financial services then by implication, RegTech goes beyond solutions tend to be cloud-based, where data is is going to grow and how technology is driving financial services. It is also applicable to other maintained and backed up remotely. This gives those changes,” says Roy. regulated industries, such as pharmaceuticals, firms the flexibility and scalability to easily add healthcare, energy and so on. “As an or remove services. Or access more compute THE ROLE OF THE REGULATOR international association, we are already seeing power and storage as required, often on a cost- members from these industries coming to effective, pay-as-you-go basis. So much for the Tech in RegTech. What about us and saying, what about RegTech in our The ability to respond quickly, sometimes the Reg? Regulators have an interesting particular industry?” explains Roy. in real-time, is also important. As is being dual role in the RegTech movement. Firstly, Then there is the matter of intent. Both of able to integrate the technology quickly. as consumers of RegTech to improve the regulation and consequently RegTech. The Drawing insights from data with analysis financial sector and their own ability to monitor intent of regulation is to protect consumers, and visualisation tools is another critical participants. Secondly, as catalysts for the businesses, economies and so on. The characteristic. Therefore when considering the ecosystem around regulation. regulator’s rulebook invariably becomes as Tech in RegTech, the usual technology suspects “I think regulators are the single most long as financial services is broad. Universal feature. They include artificial intelligence, important player in RegTech,” says Roy. banks and payment service providers must machine learning, Big Data, data visualisation He highlights the need for the regulator to understand and comply with a sizeable part and distributed ledger technology. “establish a more joined-up and coordinated of the rule book; FinTech and niche firms Good RegTech also needs to supply fit-for- approach for innovation and the adoption of potentially less. Which parts though and how? purpose technology for FinTech times. That RegTech. That can only happen when we have These are the million-dollar questions and the is to say, it is not only about the choice of a very supportive, linked-up, flexible regulatory opportunity for RegTech disruptors. technology, but also the end to which it is put. environment.” “If you zoom out and understand the intent “FinTech is such a broad statement in terms There is always some degree of competition of the regulator. What is it that they are trying of change within the industry. It’s more of a among regulators to create an attractive to achieve? That’s a good place to start,” says movement than a collection of companies. A jurisdiction for business. If regulators attract Ed Carrell, managing director, group innovation, statement of intent to deliver things in a certain innovative firms and ideas, it boosts their Barclays Bank. Naturally, this does not obviate way,” says David Brear, CEO and co-founder of reputation for innovation and pragmatism. the need for firms to understand the absolute digital banking consultancy 11:FS. That way is This in turn creates a virtuous across requirements on them. “If you deliver the intent generally to use technology to make financial the ecosystem. Firms establish themselves and the requirements, then you are making services more efficient. in the jurisdiction. Venture capital is available. something complex simple. That will always be This means developing products and services Incumbents and other regulators internationally a valuable service that people will enjoy and pay that are more user-friendly, cost less to deliver take notice and so on. for,” he says. and are optimised for digital channels. RegTech The UK FCA has been re-thinking how it “I see RegTech slightly wider than the FCA needs to meet FinTech challenges head-on by engages with firms and regulates. It has been definition: how can technology help deliver using technology to deliver regulatory compliance running a regulatory sandbox since last year. the intent, purpose and requirements of quicker, more cheaply and accurately. An oft-cited This supervised space allows businesses to regulation to make financial services better, example is operational costs. Whereas it costs a test innovation in the real market, with real cheaper, faster and safer for consumers and traditional large bank £160-180 to run a current customers with FCA oversight. 77 submissions businesses,” says Carrell. account, new players can do this for around to the second cohort of the sandbox were www.paymentscm.com payments cards & mobile | July / August 2017 15 regtech

received, more than applied for cohort one. sometimes this is precisely the problem. The “If you zoom out and 24 firms were accepted, covering a wide range zeal for measurable success metrics leads to understand the intent of the of geographies and sectors, including general a skewed focus. It may also create unintended insurance, payments, retail banking and consequences, if something that can be regulator. What is it that they retail lending. measured is used as a proxy for something are trying to achieve? That’s a The FCA also uses its convening power to that cannot. good place to start.” bring market participants together in two-day Implementing innovation in a legacy Ed Carrell, Barclays Bank TechSprints. Subjects covered so far have been environment is one of the biggest challenges financial inclusion/access, mental health and for RegTech. Legacy technology is difficult financial services, and unlocking regulatory to dislodge and expensive to transform. adopt new RegTech solutions. This remains a reporting. Ideas from the latter event included Re-architecting back-end financial services matter for their leadership, not necessarily the converting the FCA Handbook to machine- infrastructure is a potentially huge undertaking regulator. readable text. This could help identify which from the point-of-view of processes and parts applied to particular firms, and enable interoperability. REGTECH IN THE LIMELIGHT automated advice or personalised filtering. Moreover, much of the back-end plumbing Additionally, firms ‘push’ information to the is not technological but legal. It includes the RegTech gives impetus to examine both regulator by completing and submitting forms. costs of searching, executing and exchanging regulation and technology afresh. Perhaps it This could move to more of a ‘pull’ model, where legal documents, many of which are not yet can help recalibrate the understanding and the regulator pulls data from firms as required. digitised. This represents a huge cost to the reputation of regulation after the financial Regulators may engage with RegTech in B2B ecosystem. Advances in this area of crisis. After all, ensuring financial stability, various ways. Smaller markets with fewer RegTech, or LawTech, as well as the potential fair competition and consumer protection are regulatory bodies, incumbents and solutions cost savings may dwarf the front- eminently sensible principles. may benefit from close engagement with end advancements visible to The collective cost RegTech firms via an accelerator-type model. consumers. of regulatory compliance

They task firms with specific challenges, such Other barriers to REGULATORS ALERTS globally equates to the GDP BUSINESS as digital identity, financial inclusion, fraud and RegTech success OPERATIONS of a small country. Yet monitoring, and share results with those they include the perennial COMPLIANCE RISK implemented correctly, MANAGEMENT regulate. problem of scale RegTech can manage

“Other models are the FCA or MAS [Monetary and the two-sided POLICY AND compliance and the PEACE OF PROCEDURES Authority of Singapore] model, or to some market. A critical MIND customer experience. The extent the model adopted by Australia, which mass of RegTech latter outcome is as much ANNUAL REVIEW LIBRARY are about creating a collaborative ecosystem,” solutions and those & TESTING of a benefit to firms and explains Roy. “They bring together the RegTech looking to implement them TRADE customers as the former. BLOTTER firms, academics, the regulator themselves, but is needed. It is the familiar ATTESTATIONS The size of the RegTech prize is most importantly the financial institutions.” problem of chicken and egg. The potentially huge. The benefits are also regulator can play a key role in helping to huge in that RegTech drives industrywide cost ISSUES AND BARRIERS accelerate adoption on both sides in a number savings, whereas FinTech helps individual firms of ways. Firstly, by driving industry standards. cut cost. Technology looking for a solution. This is Secondly, by improving collaboration between “I think that a number of people in the something that the financial services industry RegTech innovators, firms, themselves and RegTech space are being successful, because often experiences. To avoid expensive mis- overseas counterparts, among others. Thirdly, there is a need. There is a market. There is steps, firms must ask themselves whether the by certifying RegTech solutions which met money. The recognition of that makes for good RegTech solution solves a real problem. Or certain criteria. business,” comments Carrell. merely displaces, disperses or defers it. Taken together, this may help to remove the Firms may view regulation as a double- For Carrell at Barclays Bank, it comes back to uncertainty around particular regulations and edged sword, namely as an opportunity as intent. The challenge is understanding what the the stance of the regulator. It may increase well as a threat. But RegTech? When one of the regulator is trying to address. “Make sure that the credibility of unproven RegTech solutions. major threats is the opportunity cost of not you satisfy the actual regulatory need, don’t And encourage interest from firms, who do not participating, the opportunities surely outweigh navigate around it, and then ease and clarity will wish to risk being early adopters. That said, the threats. And with enough opportunities to always win,” he says. the regulator must strike a balance. There go around, regulation, regulation everywhere If you cannot measure it, you cannot mange are some firms who will choose to invest in could well mean opportunity, opportunity it, or so the old management adage goes. Yet and maintain their legacy systems and not everywhere.

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INSIDE THE MIND OF THE HACKER

by Joyrene Thomas

Criminals follow the money. In today’s increasingly interconnected world they conduct digital hold-ups and cause major disruption by targeting critical infrastructure. So, how do those in the financial services industry get inside the mind of the hacker? How do they separate the signal from the noise to gain effective threat intelligence insights?

We live in digital times. The banking and The cyber threat intelligence industry has grown each of which contributes to the performance financial services industry talks regularly in recent years. But for too long has suffered from and overall success of the organisation. about digital transformation. In truth, the being big on threats and small on intelligence Cybercriminals have also borrowed sales transformation has already happened and and insight. There are signs that the market is and marketing practices from the legitimate there is no going back. Every organisation is maturing. Vendors as well as banks and financial economy. They operate star ratings systems a digital business by default, if not by design. institutions are improving with regard to their and bug bounties, and offer crimeware Being digital means being interconnected: use of threat intelligence. They are also working with 24-hour customer helplines and money- individuals with businesses, businesses together and benefiting from open standards in back guarantees. with suppliers, governments with this area. There are hackers who work office hours businesses and individuals and so on. This with weekends and bank holidays off. Plus a is both an opportunity and a threat. Being CYBERCRIME PAYS burgeoning freelance or crime-as-a-service interconnected allows organisations to market, where customers can hire hackers, derive additional value from digital. Yet it Cybercrime is a form of organised crime, which or buy or rent the latest tools. These include also broadens the attack surface via social is exactly that — organised. Syndicates are set exploit kits to infect victims with malware, media, digitally-integrated vendors or the up according to the division of labour principle steal credentials or hold an organisation’s files ever-growing number of internet of things adopted by many large companies. There to ransom. (IoT) endpoints. are marketing, finance and IT departments, Money is flowing from other criminal

18 payments cards & mobile | July / August 2017 www.paymentscm.com cybercrime

activities towards cybercrime, precisely DATA INTO INSIGHT are targeting you with and their attack plan, because the business model stacks up. “Cyber you can simulate the same type of scenario,” criminals are very practical. If something Unsurprisingly, the threat intelligence industry explains Ben Meir. This allows companies to doesn’t generate an income, they’ll walk away has ballooned in recent years in response to the understand where the weaknesses with their from it and start using something that does,” number and nature of cyber threats. The growth defence controls lie, and act to correct them. said Rik Ferguson, special advisor, Europol EC3 can also be attributed to the emergence of speaking at Info Security Europe. new technology vendors, changing legislation EFFECTIVE INTELLIGENCE Ransomware grabbed headlines last year and government incentives designed to help and became the favourite attack methodology organisations strengthen their cyber resilience. There are other ways to use threat intelligence used against businesses, particularly in North Many companies provide threat data, such to get inside the mind of the hacker. “Threat America and Europe. Ransomware locks as black lists, white lists, IP addresses, intelligence can be used partly at the detection computers or encrypts files and demands e-mail senders, DNS servers, as opposed phase, partly at the understanding and money from victims to regain access to their to threat intelligence. So, how do banks and diagnosis phase and partly in response,” says devices or data. Distribution of ransomware financial services companies separate the Piers Wilson, head of product management between January and November 2016 signal from the noise to gain effective threat at Huntsman, a cyber security firm providing increased more than 265 percent, says cyber intelligence insights? defence-grade security. If a bank knows that a security firm Malwarebytes. “We see threat intelligence as being certain range of IP addresses, domain names The scourge of ransomware continues divided into three sub-segments,” says Elad or indicators is significant – as it represents a in 2017. Just weeks after the WannaCry Ben Meir, vice president, marketing at Israeli particular type of attacker or piece of malware ransomware virus caused chaos across the cyber security firm Cyberint. “The first one is – it can watch for this and then prevent or globe in May, some of the world’s largest intelligence feeds — any indicators that are detect it straight away, Wilson explains. companies were hit by Petya, a second huge collected by security vendors and distributed. “Threat intelligence indicators of compromise cyber attack. This hit the Ukrainian central The second is what we refer to as ‘strategic can be used to verify and diagnose the nature bank and other government departments, and intelligence’ — reports delivered on a monthly of a particular intrusion. It may also be used in brought Kiev airport and the metro network to or weekly basis about trends or general threats attribution to find out where a threat or attack a standstill, before quickly spreading to at least per industry. The third is taking the strategic originated from,” says Wilson. 60 other countries. position of threat intelligence and making it He also emphasises the importance of Botnets, a robot network of compromised targeted to customers,” he explains. understanding the threat context. Internal lists of computers, are growing in strength by targeting Distilling what starts out as threat data into senior executives, users that have administrator internet of things (IoT) devices. This means useful intelligence is key. “To be effective, privileges or are involved in a particular project ever-more powerful distributed denial of service cyber intelligence must be contextualised. One may not count as threat intelligence. Overlaid with (DDoS) attacks, which overwhelm specific IP of the most challenging hurdles that financial external data, however, this information can help addresses or web services with fake traffic to institutions face is that they receive intelligence organisations understand the risk, the threat or knock them offline. For example, in addition that is not in context to their activities, business attack when it occurs, and shape the response. to corporate targets, the Austrian parliament needs or processes,” says Itay Yanovski, In this regard, banks have a head-start over and more than a hundred government servers co-founder and senior vice president, strategy, other sectors in working with threat intelligence in Luxembourg have been affected by DDoS Cyberint. “It may be important knowledge, but data. “Banks are quite used to dealing with attacks this year. However, banks and financial it is not actually something that is actionable.” fraud-type risks, for example blacklists of credit services companies remain the most attractive Turning data into insights may well begin by card numbers or accounts under suspicion. DDoS targets. Attacks are capable of causing separating the intelligence types. Data feeds When you start to apply fraud-like thinking to such serious material and reputational damage can be incorporated into an organisation’s security threat data, it’s easier to translate into that many organisations choose to pay ransom current controls, usually via a general collection intelligence,” Wilson contends. demands to prevent them. method or a SIEM (security information Secondly, banks have historically been good and event management), which attributes at working together to share information. “The only way to understand general indicators to the data. Strategic “Although they compete quite fiercely, there threat intelligence can be used at board level has been a co-operative view in banking that what the threats are and by directors considering the financial and fraud, against one or against all, is always what is looming is threat reputational impact of cyber threats, plus the going to be a challenge.” As such, Wilson has intelligence. Threat potential opportunities. seen banks exchanging information on what Contextualised intelligence can be used he describes as a “semi-formal” basis. This intelligence is the key to operationally to augment current controls is mostly at the operational level, for example proactive security.” and understanding, particularly in the area of around attack vectors or domain names and IP Itay Yanovski, Cyberint simulations or scenario planning. “Once you addresses that have been involved in botnets or understand who is targeting you, what they phishing campaigns. www.paymentscm.com payments cards & mobile | July / August 2017 19 cybercrime

Sharing threat intelligence in a type of targets for those wanting to disrupt trade and of Cyberint. “Threat intelligence is the key to ‘community health’ approach is helpful. This the economic health of a country. Secondly, proactive security.” can be done via vendors or government-run they are financial targets for those wanting to Threat intelligence is most useful in context. initiatives, which establish communities and rob the bank. Banks and financial institutions Every day is different in cyber, so context in facilitate information exchange. The adoption are also more likely to be targeted by state- a temporal as well as a business sense is of open standards, such as STIX and TAXII, sponsored attackers. So, how important is everything. Understanding threat intelligence in also helps in this regard. These formats for attribution after a cyber attack? context of cyber posture is the best tactic. That data structure or transmission are useful for The reasons that attribution is difficult in is to say, understanding how an organisation’s passing information between organisations in cyberspace are many and varied. The external-facing assets can be used as an a common format, with the meaning, notes and internet is an anonymous platform attack vector into the organisation. diagnosis appended. with no centralised legal Taking an outside-in as well A prominent vendor with a proprietary threat authority. Digital identities are as an inside-out view of the intelligence feed converted this to being STIX inherently weak, easy to fake organisation’s data, assets and TAXII-compliant about a month ago, and hard to attribute back to a and digital footprint is akin to according to Wilson. The UK government real person. “Other methods getting inside the mind of the threat intelligence feed conforms to a STIX of attribution, such as looking hacker and thinking from their format file. “There’s definitely a need to move at the code or other elements point-of-view. towards a more structured and co-operative, within the code itself, are also Moreover, what is standards-based way of working, which will being manipulated by actors, who want important to an organisation may not be benefit vendors and users alike in terms of to distract the investigators. This is the key for what is important to the hacker. The value of exchanging information,” said Wilson. cyber insecurity,” says Yanovski. protecting customer data is not just avoiding Whilst difficult to do, attribution has “value in regulatory fines for data loss, but avoiding the THE GEO-POLITICAL DIMENSION terms of understanding the attack, recovering business continuity risks, legal and contractural funds and tracing the movement of funds and obligations, and reputational impacts of a “Over recent months, we have seen the data around the world,” says Wilson. “Possibly cyber attack. Banks and financial institutions Democratic National Committee hack, which less so in terms of prosecution because you may have a head-start in understanding the appears to have been the work of Russian state very seldom get back to an entity, organisation fully-loaded costs of a cyber incident. They hackers to cause disruption and controversy or individual that you can point the finger hold so much personal and financial data, and around the US elections,” says John Bambenek, at. The value of attribution is understanding already have a mindset around the importance manager, security threat, Fidelis Cybersecurity. whether there is a political motive and tracing of protecting it, even before the General Data There has also been the potential information the funds.” Protection Regulation (GDPR) comes into force gathering of known Chinese hackers ahead Attribution is also useful in helping to prevent next year. of negotiations between President Trump an attack from happening again and as an However, it is not just the confidentiality of and Xi Jinping; and the alleged DDoS attack indicator of what may happen next. “The more data that is important, but the integrity and associated with the Brexit ‘register to vote’ site, you can understand of how adversaries are availability of it, too. Customer information he continues. going to work, what type of code they are using, should remain uncorrupted and accessible Attacks against enterprises are just the what their attack methods are, clearly the more when needed. It is this availability of data that same. While some may be conducted to hold you can do to defend against it. Attribution is often more important to customers in the the organisation to ransom, others may be used certainly has value, maybe not in the courts, but short-term. Customers can quickly become to access confidential information. Sometimes value to the defenders,” says Wilson. upset if they cannot access their online banking it could simply be about causing a stir or a or cash from an ATM. They worry if payments distraction. Who would have thought that the IN SUMMARY are not settled or they cannot pay bills. disclosure of British cyclist Bradley Wiggins’ Probing inside the mind of the hacker reveals medical records, or e-mails between SONY The various sub-divisions of cyber that it is a busy, well-organised, well-funded colleagues would have generated so much threat intelligence — data feeds, strategic one. It is capable of doing patient research, publicity? This merely shows that victims, intelligence and contextual intelligence taking calculated risks and changing quickly hackers and the public place different value on — help organisations to protect, detect, as circumstances require. However, those that information. respond and recover from threats. Most understand the mind and ecosystem of their Banks and financial institutions must importantly, however, threat intelligence cyber adversaries are much better equipped to consider this as well as the geo-political helps organisations anticipate threats before mitigate their threats. Or as Sun Tzu, the Chinese dimension to threats. They are caught in the they become incidents. “The only way to general and military strategist, said in his The Art cross-hairs of geo-political aggressors for two understand what the threats are and what is of War, if you know the enemy and know yourself, reasons. Firstly, they are critical infrastructure looming is threat intelligence,” says Yanovski you need not fear the result of a hundred battles.

20 payments cards & mobile | July / August 2017 www.paymentscm.com risk & compliance

GDPR: LESS THAN A YEAR TO GO AND COUNTING

With the 25 May 2018 deadline for the European General Data Protection Regulation (GDPR) looming large, PCM considers the background, content and opportunities of the new regulation.

The legal basis for privacy in Europe since the There will be greater emphasis on organisations Second World War was enshrined in article 8 to demonstrate their compliance with an audit of the European Convention on Human Rights trail to evidence what they did and why. Some (1953). This guarantees the right to respect organisations will also be required to appoint a for private and family life, one’s home and data protection officer. correspondence. The GDPR builds on the There are also significant implications for principles that privacy and the protection of service provider organisations. No longer will data are fundamental human rights. data processors simply be covered by a contract “My approach was to prioritise a culture with a data controller. Data processors will also European financial institutions could face change in the stewardship of data, such that have obligations to comply with GDPR principles, fines totalling €4.7 billion in the first three it facilitated opportunities for data use and and be liable for fines. Therefore, organisations years of the GDPR coming into force, Consult data sharing — so that it would not become should expect tougher contractural negotiations Hyperion claims. This is a conservative estimate, an impediment to legitimate uses of data — with suppliers and clients regarding data assuming breaches are at the lower end of the but it would penalise misuse of data,” said protection warranties and representations. scale. Importantly, the impact on reputation Sarah Ludford speaking at a Westminster Reviewing contracts before the May 2018 and share price could be more dramatic than e-forum. Ludford was formerly a member of the deadline will represent a significant activity for regulator fines. European parliament and worked on drafts of many organisations. Financial services companies are used to the regulation. As to the rights of individuals, they have the operationalising the implementation of policies “We have had many high-profile cases of data right to be forgotten, where an organisation and procedures. Service providers and start- loss, data breaches and fraud. This has a very must erase data pertaining to them. They have ups less so. The latter may struggle with limited damaging effect on consumer confidence. That the right to portability of their data, to object to focus, budget and resource. Furthermore as is not in the interests of businesses or public automated decisions and to give more specific banks and payment companies have over ten bodies, who want to make the case for data,” consents about how their data is used. The years’ exposure to protecting card payment she continued. definition of what constitutes personal data is data (PCI DSS), their C-suite may require little also wider. It goes beyond personal data, such persuasion/education as to the merits of HIGHLIGHTS OF THE REGULATION as name and address, to include identification protecting data. through a combination of personalised Organisations must comply with the GDPR: Privacy rights are strengthened by various data elements. it is the law and also helps to mitigate risk. pieces of European legislation as well as laws At the same time, it enables organisations to within individual member states. As a regulation, READINESS PLANS take advantage of opportunities. Organisations the GDPR applies across all EU member states, are advised to assess the difference between in theory at least. There will also be a one-stop- With less than a year to go until the GDPR comes the old and new requirements, plus the delta shop, a lead regulator that gives guidance in into force, awareness of the regulation is high. between them to fill any gaps. Organisations the case of pan-European businesses. The Yet nearly half of businesses do not think they should embed good internal risk practices, regulation consists of more than 200 pages of are going to be ready in time, according to the e.g. conducting privacy impact assessments, articles and recitals. However, the highlights UK Direct Marketing Association. A further re-negotiate contracts and implement privacy include mandatory breach notification, greater quarter have yet to even start a GDPR plan. by design rather than as a bolt-on at the end. enforcement penalties and enhanced rights Yet the consequences of failing to prepare While it sounds obvious, organisations should for individuals. are considerable. prioritise the tasks that take the longest, such Organisations will have to report data “The highest risk item in the GDPR is the as technical changes. breaches within 72 hours from when they 72-hour breach notification requirement, and The GDPR has the potential to overturn old became aware of them, under some banks are not mitigating this,” said Tim Richards, notions of data being a zero sum gain — that circumstances. They face stronger non- principal consultant, Consult Hyperion. “Data customers must lose out for organisations to compliance penalties, namely fines of up to €20 breaches are an unfortunate fact of life for benefit. There are opportunities for innovation, for million or four percent of annual global turnover, financial institutions, and our analysis suggests empowering customers to get more out of their whichever is the greater. This represents a that there have been no fewer than 27 data own data, re-thinking the customer experience, substantial increase on the maximum breach incidents among European tier one banks and creating new roles and business models. fines, which data protection regulators can in the last decade, with some banks as multiple Opportunities and risks exist in the same post- currently impose. offenders,” he said. GDPR future. Act now. The data clock is ticking.

22 payments cards & mobile | July / August 2017 www.paymentscm.com issuing & acquiring

IMPACT OF THE INTERCHANGE FEE REGULATION 18 MONTHS ON

It is now almost 18 months since the introduction applied. Although there is some evidence that (MSC) to improve transparency. This entails of the Interchange Fee Regulation (IFR). This cap-exempt commercial cards issuing has breaking out interchange, scheme fees and covered a good deal more than the interchange increased, yet the impact has been modest so far. processing (at product brand level) from fee caps and included substantial changes to acquiring fees, per card product. Acquirers call the business rules for card acceptance and BUSINESS RULES CHANGES - ENCOURAGES this interchange++ billing, a practice common processing frameworks. PAN-EU ACQUIRING in the US and UK. Unbundling is progressing So, has implementation been effective and slowly across the EU. Larger merchants lack more importantly have there been unintended Business regulations were perceived by many the systems to check the validity of the massive consequences? asks Peter Jones, managing as a Commission attempt to micro-manage the volume of new data they now receive. director, PSE Consulting in this article which first cards business. Smaller merchants prefer the simplicity of a appeared in the EPC Newsletter. The new rules include the removal of scheme single unit or ad valorem fee per transaction and EU territorial restrictions. Essentially, the borders many have opted out under the rules. CREDIT INTERCHANGE CAPS HURT ISSUERS were removed. Visa and Mastercard had already Worldwide regulators have disputed the pre-empted the changes but the travel and ‘honour all cards’ (HAC) rule whereby schemes Credit card issuers have suffered most from the entertainment (T&E) card schemes have made mandate merchants must accept all their reduction to 0.3 percent with average European significant changes to their country franchise branded products. The IFR allows HAC but Union (EU) interchange falling by over 50 percent structures. only for cards subject to the caps. Currently and potentially €2 billion annually sucked out of A particular licensing outcome (linked to merchants lack card tables to identify capped their revenues. This has forced issuers to cut the caps) has been an acceleration of pan- and uncapped cards. So, implementation has back on consumer loyalty programmes and cash EU merchants seeking a single acquiring stalled. Conversely (under the revised Payment back offers. Several have introduced card fees. relationship. This is impacting smaller Services Directive) merchants are permitted to The UK, the largest EU credit card market, national acquirers who cannot offer the surcharge non-capped cards but need tables to has been most impacted. Conversely, large EU-wide acceptance levels of the international identify cards. merchants have received a very significant players. Several domestic debit schemes feel It is interesting to look back to 2005 and to revenue transfer, adding to their profitability. similarly threatened. compare the EPC’s original SCF proposals with Small and medium merchants (SMEs) have not One of the most far-reaching changes is card the IFR. Several IFR mandates incorporated been so lucky with many acquirers choosing not scheme brand and processing separation. This within the original SCF are now struggling, to pass on the full interchange reductions and was flagged in the 2005 SEPA Cards Framework indicating that regulation does not guarantee reflecting increased scheme and other costs, (SCF) and mostly implemented across the EU easy implementation. which have reduced acquirers’ SME margins. and to a fair degree by the international card Consumers are yet to see any reduction in the schemes (ICS). The IFR’s objective was to SEVERAL UNINTENDED CONSEQUENCES costs of goods and services directly attributable increase processing competition and move away to the regulations. from mandated mono-brand networks. The two So, what have been the unintended consequences? major ICS have fully implemented this, and some The caps have transferred substantial revenues to DEBIT CAPS HAVE HAD A LESSER IMPACT acquirers are now requesting bids for multi-brand merchants but consumers and the mass of SMEs authorisation and clearing. have seen little benefit. Debit rates have increased Interchange fees in many nations were already One of the least practical changes enables in some countries. Lower interchange has been close to 0.2 percent but there have been changes. consumers to select a preferred brand on a partly offset by higher card scheme fees. The higher the scheme interchange fee, the co-badged card. A solution to resolve a non- Pan-EU merchants are contracting with pan- greater the propensity for an issuer to use that existent problem? Cardholder research has never EU acquirers to the detriment of national-only scheme. As yet the traditional low interchange raised brand choice as a pressing requirement. players. Pan-EU licences and consumer brand fee countries (Netherlands, Denmark) have not Even stranger, consumers can also overturn selection have the potential to damage the EU’s increased their rates. Germany’s new bilateral another rule which allows the merchant to steer cherished domestic debit schemes. Meanwhile rates appear just below the cap. The UK the cardholder to their preferred lower cost and consumers may be forced to carry separate cards dropped its maximum, substantially increasing possibly incentivise brands. Consequently, some for cross-border usage, which would not be ‘SEPA- fees for high average transaction value (ATV) national debit card schemes may issue separate compliant’. The implementation of unblending transactions. Conversely, Ireland reduced its co-badged cards just for cross-border usage with is patchy and large merchants are struggling to debit rate to 0.1 percent. In France, deferred debit domestic cards mono-branded to fend off ICS manage new streams of data. cards are classified as credit thus the impact has brand selection competition. But this would be a But not all IFR implementation has been been lower than predicted. step backward from a SEPA perspective. negative. Longer-term competition will inevitably Based on market feedback, the multilateral Another new rule is to mandate the unbundling drive down consumer and smaller merchant costs. interchange fee (MIF) caps have been widely (or unblending) of the merchant service charge But there is still some way to go. www.paymentscm.com payments cards & mobile | July / August 2017 23 mobile payments

US BANKS TAKE THE P2P FIGHT TO SILICON VALLEY RIVALS

More than 30 US banks and credit unions Zelle is built on the foundation of the former announcement, PayPal said that it was testing unveiled a unified person-to-person money clearXchange network by Early Warning Services, a a beta version of instant money transfers via transfer service in mid-June. Known as Zelle, bank-owned risk management firms that oversees bank accounts. the service covers around 86 million US the network. In addition to working directly “Today, people are using PayPal’s P2P services, mobile-banking customers and competes with financial institutions, Early Warning has including Venmo and Xoom, to send and receive head-on with rivals such as Venmo from established strategic partnerships with leading more than $7 million an hour to their friends and PayPal and Apple Pay from Apple. US processors, such as CO-OP Financial Services, family,” wrote PayPal executive vice president, Bill FIS, Fiserv and Jack Henry and Associates. These Ready, in a corporate blog. “PayPal users in the US IN THE BANK CORNER… relationships will broaden the reach of Zelle to will soon be able to instantly transfer money to community banks and credit unions. their bank accounts via eligible debit cards linked Zelle, whose logo is a cross between a ‘Z’ Millions more consumers, including those to their PayPal account.” and a dollar sign, will be available within banking with non-participating banks, will be The service is currently in beta testing with the mobile banking apps of various banks. able to access Zelle through a standalone app in selected users before being rolled out more Customers will be able to send funds from the coming months. Tie-ups with both Visa and generally to US PayPal users over the coming one bank account to another in minutes, using Mastercard will enable consumers to send and weeks and months, according to Ready. This only a recipient’s e-mail address or mobile receive money from nearly anyone with a US-based is evidence that the initially frosty relations phone number. By increasing the speed, debit card. between PayPal and the card schemes are now convenience, choice and coverage of person- During the first quarter of 2017, more than 51 more cordial. Ready confirmed that there would to-person payments, it is hoped that Zelle will million transactions, totalling upwards of $16 be no charge to transfer funds directly to a bank take the bank fight to Silicon Valley over P2P. billion were processed across the Zelle network. account on the original service, which typically Just as importantly, Zelle will displace less “The consumer P2P market is experiencing takes one business day. The new transfer efficient paper-based P2P payments, such as rapid growth and financial institutions have a option would cost $0.25 per transfer. cash and cheques. role to play,” said Michael Moeser, director of Elsewhere, Apple announced during its “Fragmentation has been frustrating payments, Javelin Strategy & Research. “There is worldwide developers conference in early for consumers. Inconsistent experiences a market opportunity to offer a secure and trusted June that its new iOS 11, launching in the have made it difficult to send and receive experience, as well as have greater P2P availability autumn, will allow users to send and receive money between banks,” said Paul Finch, CEO, in financial institutions’ digital banking, mobile money through iMessage with one tap. It will Early Warning Services. “Zelle unites the wallets and voice-driven P2P services.” also automatically alert users when a contact financial community behind a single, real- tells them via iMessage that they owe money time P2P payments experience for millions IN THE SILICON VALLEY CORNER… and prompt for payment. Users will also be of consumers. Together we are removing able to tell Siri to pay someone, using the friction from finance, allowing money to move Not to be outdone, Silicon Valley came back credit and debit cards they already have in seamlessly between accounts in minutes.” with fighting talk. A week after the Zelle their wallet.

P2P BECOMING THE NEW SOCIAL NORM IN THE US

The latest Bank of America Trends in desire to no longer use cash or cheques • 51 percent of P2P users believe requesting Consumer Mobility Report found that P2P is (16 percent). a payment from others for $5 or less is quickly becoming the new social norm, as 36 Users also agree that time is of the essence socially acceptable, and 36 percent claim no percent of adults currently use the service, when paying each other back via P2P. 69 amount is too low. with millennials leading the charge at nearly percent of respondents say they pay each other • In sharing opinions about others’ payments double that rate (62 percent). Furthermore, 45 back within the same day, and more than a third faux pas, people are most annoyed by others percent of consumers say they plan to start say in less than an hour. Similarly, 53 percent paying via cheque in store (51 percent), using the service within the next year. expect others to pay them back within 24 hours, followed by a delay in cashing cheques The survey also found that timing is and almost 22 percent within the hour. (38 percent). top of mind when deciding to use a P2P Other insights from the Bank of America • 71 percent of consumers believe children service. Most users say they started using Trends in Consumer Mobility Report include: under the age of ten will not know how P2P due to convenience and time savings • 45 percent of consumers use P2P for shared to write a cheque, 42 percent believe (68 percent). This motivation is closely expenses surrounding bills, followed by gifts they won’t use physical credit cards, and followed by peer influence (48 percent), new (42 percent), travel (37 percent) and dining 36 percent think they will only shop on offerings from banks (30 percent) and a (35 percent). their .

24 payments cards & mobile | July / August 2017 www.paymentscm.com contactless

UK: CONTACTLESS CARDS SET TO OVERTAKE CASH IN 2018

Rapid growth in the use of contactless cards overtake cash, 13.4 billion debit card payments 2016 FAST FACTS means cash will be overtaken as Britain’s most are predicted, of which 4.6 billion (or one-in-three) • Cash was still the most frequently used frequently used payment method by the end are expected to be contactless. Cash is expected payment method in 2016, used for 15.4 billion of 2018, according to a new report. This latest to be used for 13.3 billion payments in 2018, payments. forecast still does not herald the demise of cash – meaning it will not be the most frequently used • Debit cards were used 11.6 billion times in even in ten years’ time it is still expected to make payment method for the first time. 2016, 14 percent more than the previous year, up 21 percent of all payments. “The popularity of contactless means that with just over one in five of these transactions Analysis carried out for UK Payment Markets we expect debit cards to overtake cash as the made using contactless. 2017 forecasts that debit cards will become the UK’s most frequently used payment method in • 4.1 billion direct debit payments, worth a total most frequently used payment method in late late 2018, three years earlier than we previously £1,262 billion, were made in 2016. 2018, three years earlier than previously predicted thought," explains Adrian Buckle, chief economist, • 3.7 billion credit card usage grew in 2016, with due in large part to the increasing popularity Payments UK. 2.8 billion payments made — up nine percent of contactless. "This is a significant shift but it’s vital to note year-on-year. There were nearly 2.9 billion contactless that even in the face of this change, we believe • 2016 saw 1.3 billion payments made via remote payments in the UK in 2016, more than 2.7 any claims the UK will soon become a cashless (online or mobile) banking. times more than in the previous year (1.1 billion). society are wide of the mark. These payments were transmitted via the Contactless payments made up seven percent People will always want to choose the payment Faster Payments Service or cleared in-house. of the total number of payments in 2016, with the methods that best suit them, and cash will 2026 FORECAST continued growth meaning that by 2026 more remain a frequently-used payment method for the • 18.2 billion debit card payments forecast for than one-in-four (27 percent) payments in the UK foreseeable future. In ten years’ time, we will still 2026, 57 percent more than 2016. is expected to be contactless. be using cash for one-in-five payments in the UK, • 8.7 billion cash payments predicted for 2026 – Debit cards were used 11.6 billion times in even as mobile payments and other innovations down 43 percent from 2016. 2016, 14 percent more than the previous year, provide ever greater choice about how to pay.” • 4.4 billion direct debits payments predicted in with just over one-in-five of these transactions In total, 38.7 billion payments were made in 2026 up from 4.1 billion in 2016. made using contactless. Cash was still the most the UK in 2016. UK Payment Markets 2017 also • 3.7 billion credit card payments forecast up frequently used payment method in 2016, used for publishes data and ten-year forecasts for the from 2.8 billion in 2016. 15.4 billion payments (3.8 billion more occasions other main payment methods, to give a complete • 2.3 billion remote banking payments, 1 billion than debit cards). Four-in-ten payments in 2016 picture of the UK’s payments landscape for more than 2016, transmitted via the Faster were made using cash. both consumers and businesses, across every Payments Service or cleared in-house. By 2018, when debit cards are forecast to different payment type.

APPLE AND VISA HIT WITH APPLE PAY PATENT INFRINGEMENT LAWSUIT

Apple and Visa have been hit with an Apple Apple and Visa shunned USR’s offers in favour Pay patent infringement lawsuit by Universal of a partnership with each other to incorporate Secure Registry (USR), a small US company, the technology into Apple Pay. that alleges their mobile payment partnership According to the complaint, when Apple infringes four of its patents. publicly announced its Apple Pay service in In a federal lawsuit filed in Wilmington, September 2014, the company “touted the Delaware, USR said it sent Apple a series same benefits that USR had introduced to of letters in 2010 describing its patented Apple and Visa in 2010.” technology and seeking a partnership “Just as USR disclosed to Apple and Visa long before Apple Pay’s debut. One letter that its patented technology eliminated the detailed USR’s patent for using biometrics need to store or transmit payment-card to authenticate identity on a smartphone, account numbers, Apple bragged to its users complaint. USR, based in Newton, according to the complaint filed 21 May. that with Apple Pay ‘the credit card isn’t Massachusetts, wants cash compensation and Kenneth Weiss, chief executive of USR, stored on the device,’” lawyers for USR said in an order that would block further unauthorised also pursued a partnership with Visa around the complaint. use of its inventions. the same time, engaging “in a series of Apple spokesman, Josh Rosenstock, The case is Universal Secure Registry LLC vs confidential discussions with senior and Amanda Pires, a spokeswoman for Apple Inc 17-00585 US District Court, District representatives,” according to the filing. Both Visa, both declined to comment on the of Delaware (Wilmington). www.paymentscm.com payments cards & mobile | July / August 2017 25 pos terminals

CONSUMERS STILL LOVE CASH AS ATM TURNS 50

1967: Ronald Reagan was inaugurated 2016, reaching over £70 billion for the first as it is in the underground economy. Cash as governor of California, Elvis Presley time — an increase of ten percent on a year is a two-party transaction with no-one else married and the UK entered negotiations earlier,” said Victoria Cleland, chief cashier involved. There are no witnesses, transaction for membership of the European Economic and director of notes at the Bank of England, fees or concepts of a chargeback. Cash is Community. It was also the year that the speaking at an event in mid-June. “This is the familiar, tangible, simple and irrevocable. It first ATM was installed at a Barclays Bank fastest growth we’ve seen in a decade, and a meets people’s needs and fits their beliefs. in Enfield, north London. This ushered in not giant leap compared to the £2.9 billion when One of the major challenges to the cashless only convenient 24-hour cash access, but the ATM was born.” society is overturning decades of habit and also a new way of interacting with banks Strong growth in banknote demand is not deeply ingrained behaviour around how people and technology. unique to the UK. Around $1.3 trillion worth access and spend cash. Half a century later there are more than of US dollar notes were in circulation at the three million ATMs worldwide, according to end of 2015 or $4,200 for every person in the LESS CASH OR CASHLESS? research firm RBR. A further one million are US, according to the US Federal Reserve. It expected by 2020. The continuing popularity is a similar story in Australia, Canada and There are cashless pockets by country or sector. of ATMs underlines the modern-day cash the Eurozone. “If you look globally, 80 percent of consumer contradiction. With ever-more digital ways to transactions are made in cash. But like any pay, the demand for physical cash has never SHOW ME THE MONEY statistic, this hides dramatic differences across been higher. the world,” explains Andy Brown, marketing Why is cash in circulation rising, particularly in director, payments, NCR. “Globally I think we THE CASH CONTRADICTION developed economies with digital alternatives? are a long way from a cashless society, however People may be hoarding cash as a store Scandinavian countries are moving towards a 99 billion cash withdrawals were made in 2015 of value, particularly as interest rates head cashless environment.” with notable increases in Asia Pacific and the towards zero. They may be holding it outside One of the areas where cashless payments Middle East and Africa, where volumes were up the country or using it in the underground have been particularly successful is closed-loop by 16 percent and eight percent respectively, economy. Criminals love cash. It provides no environments, such as campuses, stadia and RBR figures say. The growth in Chinese ATM information about its origin and is valid no mass transit networks. These environments usage comes as financial inclusion increases matter who holds it. High denomination notes typically have high volumes of low or lower- and banks migrate more customers to self- are particularly popular among criminals. The value, everyday payments. The advancements service to reach more customers at lower European Central Bank announced that it will of contactless technology, the compelling use costs, widen access and extend presence stop producing €500 notes in 2018 amid fears case around speed and convenience for all beyond branches to improve profitability. that it could facilitate illegal activity. parties, and the ability to build critical mass Nevertheless the statistics on electronic Whilst this may be a step in the cashless quickly have created an almost perfect storm for payments and cash present a confusing direction, for some it does not go far enough. cash displacement. picture. Payment cards as well as and mobile In his book The Curse of Cash, the former The cashless future could lie in moving away and contactless usage are increasing. Yet so is chief economist at the International Monetary from universal usage and coverage towards cash in circulation. “Many people are surprised Fund, Kenneth Rogoff, calls for the phasing specific cashless use cases and good-enough to learn that demand for cash continues to out of all paper currency. As well as “a major acceptance. The payments industry could also grow. The value of Bank of England notes in impediment to the smooth functioning of do a better job of articulating the value of cash circulation peaked in the run-up to Christmas the global financial system”, he claims paper displacement rather than replacement. currency is feeding tax evasion, corruption The ATM has a role to play in the cashless and criminality. future. It has changed our relationship “The effect of curtailing paper currency with money, machines and bank branches. on tax evasion alone would likely cover the Customers happily trade off teller service lost profits from printing paper currency, against self-service at a machine. 24-hour even if tax evasion fell by only 10-15 percent,” access to cash is now a current account hygiene argues Rogoff. The effect on illegal activities factor and one not necessarily associated is probably even more important. In addition, with banks. More than half the ATMs installed there is the huge volume of cash payments are away from bank branches, and a growing within the informal or shadow economy. number by independent ATM deployers. 50 Cash continues to be attractive because years after the birth of the ATM and despite many of its properties are still required. digital payment developments, cash is This is as true in the legitimate economy not on the way out.

26 payments cards & mobile | July / August 2017 www.paymentscm.com e-commerce

PSD2 DRIVES A 37 PERCENT DECLINE IN ONLINE CARD VOLUMES

A new study from Ovum, has attempted for percent market share to just 11 percent. This payment methods to the forefront of merchants’ the first time to quantify the detrimental effect will leave instant payments and digital wallets agendas. This, combined with potentially instant payments and PSD2 will have on (such as PayPal) as the two dominant payment declining card revenues, is expected to place traditional credit and debit card payments. The methods across Europe as early as 2024. pressure on banks to provide the services that research Instant payments and the post-PSD2 After the introduction of PSD2, instant merchants need to become truly omni-channel. landscape, commissioned by Icon Solutions, payments are expected to absorb much of the “PSD2 and other open banking initiatives publishes quantitative insights into how PSD2 rapid growth expected in European e-commerce are a golden opportunity for retail banks to will be the catalyst for both the decline in over the next decade. They will gradually see re-imagine their products and services, and card transactions and the uptake in direct a market share increase against established ensure they are fit for purpose in tomorrow’s and frictionless payment methods such as payment methods, to an average of 29 percent digital ecosystem,” explains Kieran Hines, head instant payments in Europe. It also shows how of expenditure across Europe. This figure is of industries, Ovum. instant payments under PSD2 will change the expected to range from 72 percent in the “In particular, those banks that combine early way consumers pay for goods and services, Netherlands, to just under 20 percent in Italy. adoption of instant payments infrastructure with revolutionising e-commerce. This shift of European commerce to digital a proactive approach to PSD2 compliance and a The research predicts that PSD2 will channels will continue to apply pressure to focus on the payment needs of both merchants significantly disrupt the European retail merchants to increasingly take an omni- and consumers will be the ones that enjoy the payments landscape, unlocking new revenue channel approach, bringing a focus on new most rapid growth over the coming years.” opportunities for those nimble enough and adequately prepared. 500 E-commerce card usage will stagnate at €411bn Payment cards current levels of around €260 billion annually

bn) 400 underlying € Crossover point €338bn and by 2025, boosted by increased consumer forecast (no PSD2) convenience and the lower charges that PSD2 300 €260bn Instant Payments facilitates, instant payments will overtake cards. underlying 200 Card volumes are expected to stagnate at €260 forecast (no PSD2) €155bn billion post-PSD2, rather than reach the €411 100 Payment cards billion predicted without PSD2, representing a post-PSD2 37 percent decrease in expected volumes. E-commerce payments ( payments E-commerce 0 Instant Payments The research indicates that the shift away 2022 2023 2024 2025 2026 2027 post-PSD2 from cards is likely to gather pace, and by 2027, single-transaction e-commerce card payments Source: Instant payments and the post-PSD2 landscape, Ovum will drop from the top spot declining from 40

ONLINE CARD SPENDING TO DOUBLE BY 2021 TO $6 TRILLION

Global Payment Cards Data and Forecasts to 2021, ADVANCES IN SECURITY IMPROVE majority of transactions. This update should an annual survey of the global payment cards CONFIDENCE offer further reassurance and convenience to sector, reveals that the value of e-commerce card online shoppers. payments made worldwide grew by 26 percent The study reveals that while some cardholders during 2015 to reach $2.7 trillion, and represented have previously held back from purchasing E-COMMERCE CARD EXPENDITURE TO 12 percent of all card expenditure. Key factors goods online because of security concerns, CONTINUE ITS RAPID GROWTH driving this impressive growth include: confidence in the e-commerce channel is rising. • A surge in internet penetration and Measures being taken to reduce fraud include The report forecasts that e-commerce card smartphone holding the creation of a new 3-D Secure specification spending will more than double between 2015 • A rising number and range of merchants with an to authenticate cardholders which will be and 2021 to reach $6 trillion. online presence progressively rolled out over the coming years. “The e-commerce sector will represent a • The convenience of making impulse buys on the 3-D Secure 2.0 is designed to meet the needs growing proportion of global card expenditure move via mobile devices of consumers using new technologies such with one dollar in five spent online by 2021. • Tools such as one-click checkouts and as mobile apps and digital wallets. It will The improving convenience and security of suggested additional items, which simplify the increase risk-based authentication, removing the e-commerce channel are key drivers of this transaction process. the requirement for a password for the vast growth," says Chris Herbert at RBR. www.paymentscm.com payments cards & mobile | July / August 2017 27 products

AMAZON CHALLENGES BANKS IN BUSINESS LOAN MARKET

It started with book publishing before moving Amazon has lent more than $3 billion to more Similarly, working in partnership with Liberis, to grocery retail, delivery, music streaming and than 20,000 small businesses since Amazon Worldpay offers small businesses an unsecured television. The next industry Amazon has in Lending launched in 2011. It has actively cash advance on card sales. Repayments are its disruptive sights is banking. The Seattle- targeted sellers in Japan, UK and US with made on the basis of a pre-agreed percentage based behemoth has lent more than $1 billion offers to borrow amounts ranging from $1,000 of future sales. Businesses only pay when they to small businesses in the last year, according to $750,000. More than half the small business are earning and do not have to meet a monthly to a media statement. borrowers opt to take a second loan. payment if business is quiet. Amazon Lending offers short-term business Amazon is not the only technology company Acquirers typically profit most from loans to micro, small and medium businesses to challenge banks in the area of small the long-tail of small and medium-sized selling on its marketplace. Amazon mines data on business loans. Swedish mobile payment businesses in their portfolios. Those seeking how its sellers are performing, allowing it to select services provider iZettle launched its factored to monetise this group further through cross- borrowers. Funds come from its own balance loan service, iZettle Advance, in August 2016. sell activities, increased loyalty and smarter sheet and repayments are deducted automatically This allows small businesses to access extra risk management will find that the tail wags a from the seller’s account every two weeks. capital via an advance on future card sales. long way down.

INGENICO ANNOUNCE PSD2-COMPLIANT SOLUTION FOR MARKETPLACES

Ingenico ePayments, the online and mobile online marketplaces to operate without being of the marketplace solution, or use a dedicated commerce division of Ingenico Group, has regulated or supervised while providing connector for one of the leading middleware launched a new PSD2-compliant payment payment services, were removed. platforms for marketplaces, such as Mirakl solution designed specifically for online PSD2 comes into effect in 2018, meaning or Izberg. marketplace operators. online marketplace operators that sell to “As online retail matures, we increasingly The solution is built on Ingenico’s full service European consumers will need to become see the marketplace model driving growth in payments platform and provides marketplaces regulated and supervised (licensed) payment the space. But to sustain that growth, in the with the flexibility and conformity to PSD2 they service providers or seek regulatory backing EU in particular, marketplaces will need to need to scale and grow internationally. from a licensed provider. step up to become fully compliant with PSD2,” Online marketplaces are expected to The new Ingenico payment solution for comments Ludovic Houri, vice president, account for almost 40 percent of the global marketplaces is a scalable, secure and fully product, Ingenico ePayments. online retail market by 2020, according to a PSD2-compliant. It helps online marketplaces “Our new marketplace solution not only study by the E-Commerce Foundation and grow beyond their borders and simplify removes the burden of PSD2 for operators, Nyenrode Business University. the transaction process for both sellers but provides a set of features and benefits that Reflecting the growing influence of and buyers. enable marketplaces to increase efficiency, marketplaces, when the PSD was extended Marketplace operators can opt to use reduce complexity and scale internationally," in 2015, some of the exemptions that allowed Ingenico API for a customised implementation Houri concludes.

LG LAUNCHES DELAYED MOBILE PAYMENT SYSTEM LG PAY

LG managed to launch its heavily delayed mobile LG Pay works along similar lines to Samsung brands, namely KB, Shinhan, Lotte and BC. payment service dubbed LG Pay on 2 June. The Pay. However, Samsung's mobile wallet system However, the South Korean-based OEM plans to digital wallet competes with look-alike wallet uses magnetic secure transmission technology gradually expand and bring on board all major offerings from Samsung Pay and Apple Pay. instead of NFC to make payments. cards in the industry by the end of September. LG revealed that its digital wallet is based on "LG Pay is a service that allows users to pay The newly-launched service would initially be wireless magnetic communication technology, offline on a smartphone just like a credit card. available only for LG G6 users. However, LG plans which will allow users to make payments by Wireless magnetic communication technology, to extend the service to other devices soon. simply touching their compatible mobile phone which generates magnetic signals from mobile The company claims that LG Pay has airtight to the POS reader. devices and charges them when they are brought security measures when handling card details Rumours of LG developing its own mobile to a general credit card terminal, is installed," the and transactions. LG asserts that a user will have payment system have been rife since early 2016. company said. to scan their fingerprint each time they wish to It was initially rumoured that the digital wallet LG announced that LG Pay would initially be make a payment. This security measure will set would be introduced in LG smartphones by 2016. available only through four major credit card new standards for mobile payment services.

28 payments cards & mobile | July / August 2017 www.paymentscm.com contracts

VANTIV AGREES WORLDPAY PURCHASE IN £9 BILLION DEAL

Worldpay has agreed a £9.1 billion deal to be the deal between the two payments groups. Vantiv is interested in Worldpay’s operations acquired by US rival Vantiv, which sent shares The bank, which had faced criticism since it is in Europe, as a shift in consumer habits in the company tumbling sharply. also a corporate broker to Worldpay, said it had away from using cash to digital and card Worldpay shares fell close to ten percent to approached the UK company “in response to an payments has helped bolster demand for £3.68, soon after unveiling Vantiv’s planned invitation” and that it would not make a firm offer. payment processors. takeover of the business, which values its Under UK takeover rules, JPMorgan cannot By acquiring or merging with a rival payment shares at £3.85. Shares in Worldpay had now approach Worldpay for six months. Vantiv, processor, companies can seek huge cost climbed to as high as £4.35 amid expectations which has grown rapidly by striking deals across savings from cutting redundant technology that a bidding war would ensue between Vantiv the US, is looking to gain a foothold in Europe and costs. They can also consolidate and JPMorgan Chase, both of whom were where Worldpay is a leader in providing the information about individual customers revealed to be competing to buy the company. technology that allows businesses to accept across different geographies, allowing them But JPMorgan ruled itself out from making card payments and online transactions to provide more added value services to large a bid within an hour of the announcement of from customers. corporations and retailers.

VISA COMMITS TO STRATEGIC INVESTMENT IN KLARNA

Visa and Klarna announced they have support a broad range of new partners who are “Visa is committed to partnering with a new reached an agreement for Visa to invest helping to redefine and enhance the purchase generation of partners and payment providers in Klarna, and intend to develop a future experience for millions of consumers globally. to bring secure, online commerce to many more strategic partnership. Klarna develops products that address consumers in Europe. We look forward to working Klarna is one of Europe’s fastest growing changing consumer preferences, giving them more closely with Klarna to accomplish this.” online payments companies, serving 60 the flexibility and seamless experience they According to Forrester, Europe is expected million consumers and 70,000 retailers. expect when shopping. to see double-digit growth in online sales in the The equity investment and planned “Klarna has demonstrated an expertise in coming years. By 2021, the growth in the number partnership demonstrate Visa and Klarna’s consumer credit and online purchasing and of connected devices and improvements in shared vision to accelerate online and mobile together, we share a vision for how today’s online mobile connectivity will drive online sales to commerce for the benefit of consumers and and mobile commerce experiences can be as reach 12 percent of the region's total retail sales. merchants across Europe. simple as they are in the real world,” said Jim Additionally, online retail sales are expected to Visa’s planned investment is part of a global McCarthy, executive vice president, innovation grow at an average rate of 12 percent per year strategy to open up the Visa ecosystem and and strategic partnerships, Visa Inc. over the next five years in Western Europe.

NATIONAL MOBILE WALLET SERVICE LAUNCHES IN UAE

The first nationally sanctioned mobile wallet banks, government departments, retailers, applications to be dynamically and over the air solution for the United Arab Emirates has been educational institutions, and transportation (OTA) provisioned on the wearable device. launched. Emcredit, a fully owned subsidiary companies – into a common platform where This technology results in the richest of the Dubai Economy, will launch empay, a consumers are easily able to access and pay possible user experience, where the consumer secure mobile wallet and payment platform for services from a single mobile wallet. is able to virtualise all of their personal that offers all United Arab Emirates residents empay will ultimately enable UAE contactless cards on their wearable device. the ability to easily pay for a wide variety of consumers to make retail payments, initiate goods and services using smart wearable money transfers, and pay for government technology or multi-functional devices. utilities – such as telecommunication and NXP will manufacture and provide the NFC school fees – all from a single mobile wallet controller and secure element (SE) necessary using either an active wearable or another to allow UAE consumers to utilise the service multi-functional mobile device. on wearable devices and Cardtek will provide Active wearables include a battery and the payment infrastructure. a Bluetooth Low Energy (BLE) connection, As a part of the Dubai Government in addition to a NFC interface. This allows Smart initiative, empay will bring together communication to the cloud via a mobile a number of service providers – including phone or companion device, enabling multiple www.paymentscm.com payments cards & mobile | July / August 2017 29 conferences UPCOMING EVENTS

Seamless Payments East Africa Money2020 Europe 6-7 September, Nairobi www.terrapinn.com/exhibition/ seamless-east-africa Money2020 Europe, held in Copenhagen 26-28 June, was again a great success, covering payments and financial services from core services to FinTech. Presentations included those Seamless Payments Vietnam from senior executives of well-known global companies to smaller, but equally interesting, 6-7 September, Ho Chi Minh City www.terrapinn.com/exhibition/ businesses. seamless-vietnam/

With more delegates and more exhibitors, it was a great place to network, talk business and create new The Future of Lending 19 September, London partnerships as well as meet with existing contacts and partners. www.marketforce.eu.com/events/ financial-services/future-of-lending Once there, delegates were catered for and looked after with plentiful supplies of refreshments as well as Restaurant Tech Live a good lunch with plenty of seating. Formal and informal meeting spaces were available throughout the Bar Tech Live #trustech2017 exhibition area and conference venue, with the ACI Smoothie Bar and JCB Tea Room proving Hotel Tech Live particularly popular. 26-27 September, London www.restaurantbusinessshow.co.uk

For the networking evening, those who signed up were bussed to the Tivoli Gardens for drinks and a buffet PayExpo Europe and, as an extra treat for the braver delegates, free rides on the numerous attractions. 4-5 October, London www.payexpo.com/europe

Not only does Money2020 deliver as an event but it is run by their whole team in a professional and Shoptalk Europe friendly way with plenty of assistance readily available to all attendees if required. 9-11 October, Copenhagen shoptalkeurope.com/ #INTERNATIONAL Money2020 Europe expects more growth in 2018 and have announced that next year’s event will take ATM & Cyber Security 2017 place 4-6 June in Amsterdam. 10-11 October, London www.rbrlondon.com/events/atmsec

Money2020 USA takes place 22-25 October in Las Vegas. Money2020 USA 22-25 October, Las Vegas #LARGEST www.money2020.com Ad Index July / August 2017 The Future of Nordic Banking Payment Card Yearbooks www.paymentcardyearbooks.com P13 6-7 November, Copenhagen www.marketforce.eu.com/events/ Money2020 www.money2020.com P21 banking/nordic-banking FIME www.fime.com Cover P4 #EVENT PayExpo Europe www.payexpo.com/europe P17 World Travel Market including The Travel Tech Show RS2 www.rs2.com Cover P2 6-8 November, London Trustech www.trustech-event.com Cover P3 london.wtm.com/about-the-show/ show-features/travel-technology/

The Future of Private Banking and Wealth Management 23 November, London new.marketforce.eu.com/money- live/event/private-banking-wealth- management/ The Future of Retail Banking 28 30 28-29 November, London new.marketforce.eu.com/money-live/ event/retail-banking Nov. Branch Transformation 2017 28-29 November, London www.rbrlondon.com/events/ Palais des Festivals branchtransformation Cannes France Trustech 2017 28-30 November, Cannes www.trustech-event.com 2017 REGISTER ONLINE !

30 payments cards & mobile | July / August 2017 www.paymentscm.com www.trustech-event.com

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#INTERNATIONAL #LARGEST #EVENT

28 30 Nov. Palais des Festivals Cannes France 2017 REGISTER ONLINE ! www.trustech-event.com

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