FOR 49 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE SEPTEMBER 2019 / ISSUE 1160

Latin America’s 42 Largest Acquirers The 42 largest merchant acquirers in Latin America and the Caribbean (LA&C) based on card payments processed in 2018 are POS Terminal Shipments ranked on page 9. This group processed 22.26 billion (up 13%) Worldwide by Region > see p. 8 MARKET SHARE (%) IN 2018 VS. 2017 GoCardless Pull Payment Processing Pulling an authorized payment from a bank account to settle a Asia–Pacific Latin recurring bill, which includes subscriptions, installment payments, 41 s America and invoices to vendors, is the business of GoCardless. The 11 s > see p. 12 12 Contactless mPOS Platform Europe 10 s Canada-based Mobeewave provides a turnkey, NFC-enabled, PCI- 13 9 compliant software platform, SDK, and apps that let merchants use their own smartphones and tablets to accept payments 63 2018 8 67 MEA > see p. 7 7 6 104 s Mastercard, R3, and Marco Polo Network 5 8 The Marco Polo Network facilitates trade finance (payment, U.S. financing, risk mitigation, and provision of information for 21 s importers and exporters) among a consortium of banks and their > see p. 6 2017 Canada 10 s Sprint/Dynamics Card Partnership © 2019 The Nilson Report Sprint’s Curiosity IoT network is the first mobile telecom infrastructure built to support software that drives the Internet POS Terminal Shipments Worldwide of Things (IoT) as well as smartphones. Curiosity IoT separates > see p. 5 Shipments of point-of-sale terminals reached 103.6 million in 2018, up 39.0% over 2017. That figure was an increase of 29.1 Fidel Aggregates Card Data million units year over year. Shipments by region are shown on Fidel is an aggregator that makes payment card transaction data pages 10 and 11. Those shipments included countertop, accessible to web and mobile application developers in real time. multilane, tablet, and handheld terminals with integrated chip The company has API integrations with the authorization systems and/or magnetic- card readers, as well as PCI DSS- > see p. 5 approved chip & PIN devices, approved chip & signature devices, and mPOS devices not connected via a smart mobile device. Not Verified Mark Certificates for Email included are smartphones used as POS terminals, peripheral PIN Entrust Datacard, best known in the payment industry for pads, card reader dongles inserted in smartphones or tablets, technology used in card manufacturing and personalization, magnetic-stripe card readers connected to electronic cash also acts as a certificate authority—a trusted third party that > see p. 8 > see p. 10

INSIDE 2 – 4 Fast Facts CHARTS 8 Top General Purpose Acquirers in Latin America 6 Payments via Text Messaging 9 Largest Visa/Mastercard Merchant Acquirers in Latin America 7 EMVCo and 8-digit Issuer ID Numbers 11 Manufacturers of POS Terminals Ranked by Shipments in 2018, Market Shares by Region

© 2019 HSN Consultants, Inc. THE NILSON REPORT VISIT US ONLINE AT WWW.NILSONREPORT.COM FINEXIO, an accounts payable payments-as-a-service com- MAGTEK has launched the LE for DynaPro Go, pany that operates a B2B supplier network, has formed a MagTek’s latest secure PIN Pad validated per PCI PTS 4.x. partnership with Payscout, an omnichannel global payment Bluetooth LE connects to iOS, Android, or Windows devices processor including for XR-augmented, virtual, and mixed and offers greater range and faster processing times. reality technologies. The partners will offer each other’s ser- John Arato is VP, [email protected], www.magtek.com. vices. Ernest Rolfson is CEO at Finexio, [email protected], 3DCART, provider of an ecommerce platform, will offer www.finexio.com. Manpreet Singh is President at Payscout, its clients ClearSale’s card-not-present fraud protection. [email protected], www.payscout.com. Merchants that use ClearSale receive guaranteed protection

FAST PAYACTIV provides employees real-time access to up to from fraud-related chargebacks. Gonzalo Gil is CEO at 3dcart, one-half of their earned wages prior to receiving their pay- [email protected], www.3dcart.com. Rafael Lourenco is EVP at check. The company processed more than $1 billion for U.S. ClearSale, [email protected], www.clear.sale. FACTS workers in 2018. It uses Digital Disbursements from to ANYWHERECOMMERCE filed litigation in a California enable employees to push money to a checking or savings federal court on July 26, 2019, alleging that Square infringed account. Fiserv does this via Visa Direct. Safwan Shah is CEO SEPTEMBER 2019 on U.S. Patent No. 8281998. The patent was awarded to at PayActiv, [email protected], www.payactiv.com. ISSUE 1160 Anywhere Commerce on October 16, 2012. Anywhere Tom Allanson is President, Electronic Payments at Fiserv, Commerce sells card reader devices in 15 countries to facili- No paid [email protected], www.fiserv.com. tate mobile payments. Mitchell Cobrin is Co-Founder at advertising. No KONFIRMI is a Chicago-based provider of customer Anywhere Commerce, [email protected], sponsored content authentication and onboarding services for websites and www.anywherecommerce.com. of any kind. mobile apps. Verification methods include age confirmation, PAX TECHNOLOGY’S S920 pocket-sized two-factor authentication by email or text message, selfie ID No company can terminal has been certified in the U.S. by Verizon and AT&T, photos, video ID selfies, knowledge-based authentication, the country’s largest mobile network operators. pay to be featured and single sign on. Konfirmi says users can be fully set up in Tony Fernandez is VP, Product Marketing at Pax, in our newsletter. under 5 minutes. Holly Urban is CEO, [email protected], [email protected], www.pax.us. www.konfirmi.com. It is never EARLY WARNING SERVICES, the network operator be- permissible for NET ELEMENT has launched the Netevia Mastercard, a hind the Zelle fast payments network, has selected BHMI’s commercial prepaid product for merchants. They can deposit subscribers to Concourse Financial Software to support disputes manage- a percentage of the card payments they accept to their forward or print ment for transactions processed by the Zelle network. prepaid card instead of their bank account to be used for this issue. Doing Lynne Baldwin is President at BHMI, [email protected], everyday business expenses. The Netevia Mastercard is so violates www.bhmi.com. Lou Anne Alexander is Group President, issued by Avidia Bank. Mike Normandeau is VP Commercial copyright laws. Payments at Early Warning, louanne.alexander@ Cards at Net Element, [email protected], earlywarning.com, www.earlywarning.com. www.netelement.com. Conferences & Seminars

Seamless Philippines 2019: FinovateAsia 2019: October 14-15, FinovateMiddleEast 2019: TrusTech 2019: November 26-28, September 25-26, 2019. The SMX 2019. The Marina Mandarin, November 20-21, 2019. 2019. The Palais des Festivals de Convention Centre, Manila, Singapore. Estimated attendance: The Ritz-Carlton DIFC, Dubai, Cannes, French Riviera, Cannes, Philippines. Estimated attendance: 450. Cost for the two-day United Arab Emirates. Estimated France. Estimated attendance: 5,000. Cost for the two-day conference is $1,395. Subscribers attendance: 400. Cost for the 8,000+. Cost for the three-day conference is FREE. Contact to The Nilson Report will receive two-day conference is $1,095. conference is FREE, including Danelle Filipinas at Terrapinn, a 20% discount. (Use code Subscribers to The Nilson Report attendance to the conference (65) 6322-2717, danelle.filipinas@ FKV2354NRW.) Contact will receive a 20% discount. (Use and exhibition. Contact terrapinn.com. Register at www. Tyler Ferst at The Finovate Group, code FKV2354FLW.) Contact Tyler Stephanie Dryander at terrapinn.com/exhibition/seamless- (646) 895-7329, tyler.ferst@ Ferst at The Finovate Group, Comexposium, 33 (1) 7677-1280, philippines. knect365.com. Register at (646) 895-7329, tyler.ferst@ stephanie.dryander@ https://bit.ly/2IueoxZ. knect365.com. Register at comexposium.com. Register at https://bit.ly/2lGCtZl. www.trustech-event.com.

2 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive 1 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive BLUEFIN has introduced ShieldConex to secure personally identifiable 11th Edition information, personal health information, and card data. ShieldConex uses Bluefin’s secure payment frame and vaultless tokenization technologies to enable organizations to enter sensitive data via secure online forms embedded The World’s in their website. All data is immediately tokenized with a Format Preserving Token that can be created in the same format as the original data. Top Card Issuers Ruston Miles is Chief Strategy Officer at Bluefin, [email protected], and Merchant www.bluefin.com. DAVINCI PAYMENTS is the new name of Swift Prepaid Solutions. Rodney Acquirers Mason is CRO, [email protected], www.davincipayments.com. Card Issuers 1,080 MULTIFACTOR AUTHENTICATION FOR E-COMMERCE, the final version 280 Merchant Acquirers More than 115 of the NIST special publication 1800-17, is available to retailers interested countries listed Asia-Pacific in implementing multifactor authentication. The publication is available at Canada Europe https://www.nccoe.nist.gov/projects/use-cases/multifactor-authentication- Latin America ecommerce. United States CUNA STRATEGIC SERVICES will offer the CardUpdatr app to its credit Mastercard Middle East and Africa Visa • union issuer customers. CardUpdatr is available from Switch. CUs can brand • JCB UnionPay their web and mobile browser application, which updates merchant sites with credit union cards in real time. Chris Hopen is CEO at Switch, chris.hopen@ • Discover Diners Club switchme.com, www.switchme.com. Eric Gelly is President at Cuna Strategic Services, [email protected], www.cunastrategicservices.com. Management Changes © HSN Consultants Inc. 2019 THE NILSON REPORT. www.nilsonreport.com/research. Reproducing or allowing reproduction or dissemination of any portion of this document in any manner is a copyright violation subject to substantial fines. Figures include cards in circulation and spending for credit & debit in each world region. Stephanie Ferris, formerly at Worldpay, has been appointed Enterprise- wide at FIS, stephanie.ferris@ fisglobal.com. Gregor Garry has been appointed Executive Vice President Order Today and Chief Operating Officer at The Bancorp, [email protected]. www.nilsonreport.com/research Nikki Waters has been appointed Head of Global Marketing at i2c, [email protected]. David Fletcher has been appointed Senior MEMBERS DEVELOPMENT COMPANY (MDC) will exclusively market Vice President of Sales at ClearSale, [email protected]. and promote the digital payment services of Payrailz, including the Payrailz Richard Swales has been appointed Chief Risk Officer at , Smart Payment Platform, consumer and business bill pay, account-to-account [email protected]. Ron Hynes has been appointed Chief transfers, peer-to-peer payments, and new account opening to credit unions. Executive Officer at Vesta, [email protected]. Ava Kelly Fran Duggan is CEO at Payrailz, [email protected], www.payrailz.com. has been appointed Head of Global Products at i2c, akelly@ Jeff Kline is CEO at MDC, [email protected], i2cinc.com. Elizabeth Kowal has been appointed Chief Product Officer www.membersdevelopment.com. at MineralTree, [email protected]. Justin Ferrabee has been appointed Chief Executive Officer at Mazooma, jferrabee@ THE CONSUMER FINANCIAL PROTECTION BUREAU has released its mazooma.com. Darren Gill has been appointed Chief Revenue Officer at fourth biennial report on the state of the market. The 99-page PCI Pal, [email protected]. Bob Sneed, formerly at Wex, has been report covers the period of 2017-2018. It is available at: https:// appointed Executive Vice President at TransCard, bob.sneed@transcard. files.consumerfinance.gov/f/documents/201908_cfpb_card-act-report.pdf. com. Marcelo Geraldi Velloso has been appointed Managing Director of Latin America at Wex, [email protected], FINANCIAL DATA EXCHANGE (FDX) is a nonprofit organization dedicated Josh Goines, formerly at PayPal, has been appointed Senior Vice to unifying the financial industry around a common, interoperable, royalty-free President of Strategic Partnerships at Bill.com, [email protected]. standard to give consumers and businesses access to their financial data. David Yates has been appointed Executive Partner at Siris, yates@ Visa and Mastercard have become members. Other members include Bank of siris.com. Nigel Stone has been appointed Head of U.K. Operations at America, Capital One, Charles Schwab, Citigroup, Envestnet/Yodlee, Experian, Citcon, [email protected]. Adam Bischoff has been appointed Fiserv, JPMorgan Chase, Plaid, PNC, TD Bank, USAA, U.S. Bank, , Product Manager at Allied Payment Network, adam.bischoff@ and Xero. FDX is an independent subsidiary of FS-ISAC. For more information alliedpayment.com. visit www.financialdataexchange.org.

© 2019 HSN Consultants, Inc. THE NILSON REPORT SEPTEMBER 2019 / ISSUE 1160 / THE NILSON REPORT 3 © HSN Consultants, Inc. 2017 THE NILSON REPORT SEPTEMBER 2019 / ISSUE 1160 / THE NILSON REPORT 2 SIGNIFYD, which offers an end-to-end, machine-learning-based commerce protection platform, has launched Signifyd Seamless SCA, a set of secure Featured Conference payment services that meet the requirements of the European Union’s PSD2 regulation slated to take effect this month. PSD2 requires businesses engaged ASIA GLOBAL PAYMENT SUMMIT 2019 in online transactions to provide greater security. Signifyd Seamless SCA is fully compatible with the EMV 3-D Secure 2 protocol. J. Bennett is VP Two-Day Conference of Operations and Corporate Development at Signifyd, j.bennett@ October 10-11, 2019 signifyd.com, www.signifyd.com. Sofitel Bali Nusa Dua Bali, Indonesia MIFINITY has launched a new consumer-focused, cross-border money transfer service to UnionPay cardholders in mainland China. Consumers can Topics include: aligning real-time payments towards seamless send money from the U.K. and Europe to China via the UnionPay network. interoperability, regulatory challenges in emerging markets, social Michael McDevitt is Chief Product Officer at MiFinity, michael.mcdevitt@ commerce platforms, harmonization in cross-border payments, fintech mifinity.com, www.mifinity.com. regulation in Southeast Asia, digital financial inclusion, eKYC and bio- BREX, the corporate credit card start-up, has connected with Ascenda’s metric authentication, QR codes standardization. Speakers represent: global loyalty currency network, TransferConnect, to enable its cardholders to PPRO, Fave, JPMorgan, DANA Indonesia, TransferWise, Kapronasia, transfer their Brex rewards points to six frequent traveler programs. Ascenda Schulte Research, Xfers, Philippine Clearing House Corporation, BTPN provides loyalty services to over 70 and travel brands world- Bank, Commercial Bank of Dubai, and more. Cost is $1,695 for full wide. Kyle Armstrong is CEO at Ascenda, [email protected], program; $1,295 for one-day pass until October 1, 2019. (Use discount www.ascendaloyalty.com. Henrique Dubugras is Co-CEO at Brex, henrique@ code NILSONDISCOUNT.) Contact Adriana Screpnic at Currency brex.com, www.brex.com. Research, [email protected]. Register at www.globalpaymentsummit.com. CYBERSOURCE’S 3-D Secure 2 authentication service is being integrated SAVE with Amadeus’s payment platform, which is used by travel industry merchants Subscribers to The Nilson Report worldwide. The aim is increased sales by reducing instances where travelers will receive a 20% discount. 20% are asked to practice two-factor authentication. 3DS 2 also provides native support for in-app authentication on mobile devices as well as the ability BARCLAYCARD, which processes nearly half of the U.K.’s credit and debit to request specific exemptions included in Strong Customer Authentication card transactions, has integrated with TouchBistro, an iPad-based POS service requirements. Bart Tompkins is Managing Director, Payments at Amadeus, for restaurants and pubs. TouchBistro handles order taking, payment process- [email protected], www.amadeus.com. Justin Fraser is Head of ing, menu management, sales tracking and reporting, staff scheduling, and Alliances & Enterprise Sales EU at CyberSource, [email protected], more. Alex Barrotti is CEO at TouchBistro, [email protected], www.cybersource.com. www.touchbistro.com. Nicole Olbe is Managing Director of Partnerships, Payment Solutions at Barclaycard, [email protected], Featured Conference www.barclaycard.co.uk.

SNAPPAY provides a payment gateway that lets merchants in North America 2019 ETA STRATEGIC LEADERSHIP FORUM accept QR code-based payments from and WeChat Pay users. It also helps merchants with coupon promotions. SnapPay says Chinese buyers spend Three-Day Conference up to 15% more when they can pay with Alipay and WeChat Pay. Spencer Xu September 25-27, 2019 is CEO, [email protected], www.snappay.ca. Boca Raton Resort & Spa, Boca Raton, Florida JCB will process automated teller machine transactions in Canada by leveraging the infrastructure between , Canada’s debit network, and Topics include: privacy demands influencing business decisions and the Discover Global Network. Edwin Lam is Director, International Services at impacting product development, /Fiserv merger, private Interac, [email protected], www.interac.ca. Ryuji Shinzawa is President at JCB equity, the evolution of ecommerce, and the critical role of the Intl Credit Card Co., [email protected], www.jcbusa.com. acquiring channel. Speakers represent: Wells Fargo, Mastercard, Fiserv (First Data), Searchlight Capital, Parthenon Capital, Bluesnap, PAYSWIFF is a provider in India of Set, a mobile application that allows Infinicept, Chetu, eBay, NCR, Priority Payments, Global Payments, and individuals and business owners to accept over 60 payment options. more. Cost for the three-day conference is $1,145 through September Merchants can be onboarded in less than 15 minutes on all POS devices. 24 (nonmember $1,545) and $1,295 on-site (nonmember $1,695). Mastercard will work with Payswiff to provide the app, services, and support Group rates available. Contact ETA at [email protected]. in regional languages. Rajeev Kumar is SVP, Market Development, South Asia at Register at www.electran.org/events/etaslf/register/. Mastercard, rajeev_kumar@.com, www.mastercard.com. Priti Shah is CEO at Payswiff, [email protected], www.payswiff.com.

4 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive 3 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Sprint/Dynamics Card Partnership from page 1... smartphone traffic from IoT traffic to create the Connected Wallet Card to handle the different shortest possible path for exchanging messages. Card frequencies deployed by MNOs around the world. manufacturer Dynamics recognized this feature would Card issuers signed to use the Wallet Card include place the lowest possible demand on the battery of its Emirates NBD, which will be the first to bring EMV-compliant Wallet Card, a high-security payment card that is also an IoT device. It provides issuers with over-the-air management capabilities, which include sending information and messages to the card’s 65,000 pixel display. Changes supported by over-the-air management include updates to expiration dates and loyalty programs. The ability to use Curiosity IoT solidified Dynamics’ investment in creating a 5-year lifecycle for its Wallet Card. Previously, it solved a power consumption problem associated with battery-operated cards. The Wallet Card gets certified by any mobile cards into circulation capable of downloading data network worldwide as smartphones do. Dynamics and messages. leverages Curiosity IoT to control the certification Ivo Rook is Senior VP, IoT & Product Management at process from the U.S. However, once registered, cards Sprint in Kansas City, Kansas, [email protected], operate on local mobile networks in 195 countries. www.sprint.com. The chip in the Wallet Card can be accessed Jeff Mullen is CEO at Dynamics in Cheswick, through any mobile network in the world. Dynamics Pennsylvania, [email protected], figured out a way to use a single antenna in the www.dynamicsinc.com.

Fidel Aggregates Card Data from page 1... at Visa, Mastercard, and American transaction data anywhere Visa, the three card networks, and the Express. From those links it Mastercard, and American Express expense associated with that task, also knows where transactions operate processing services. has been handled by Fidel. The occur and other information In addition to securely sending company’s clients also avoid PCI card data to an application compliance costs. developer, Fidel can facilitate Fidel generates revenue on a communication with a developer’s per-transaction basis. All data clients, such as a participating exchanged between the networks, merchant, to invoice that merchant Fidel, and its clients are tokenized. for miles or useful to clients for their rewards other rewards programs, digital receipts, money currencies. Fidel Customers include Royal Bank of management, POS lending, can also add Canada, & British Airways. and more. money into a The company launched in card account. December 2017. It has customers The main value in Fidel’s Fidel is backed by the in the U.K., Ireland, the Nordics, aggregation service is speed to U.K.’s Technology Strategy Canada, Japan, and the U.S., market for new apps that need Board (Innovate U.K.) and including Klarna, British Airways, access to card data. Developers Horizons Ventures. and Royal Bank of Canada. only need to write a few lines of Dev Subrata is CEO at Fidel in When cardholders provide code to connect to Fidel. All of the London, U.K., [email protected], consent, Fidel can gather complex code needed to link to www.fidel.uk.

© 2019 HSN Consultants, Inc. THE NILSON REPORT SEPTEMBER 2019 / ISSUE 1160 / THE NILSON REPORT 5 Payments via Text Messaging

Everyware provides clients a Everyware also offers merchants the ability to customer communication platform collect payments through its Pay-By-Text service. based on the integration of text No app is required. Payors need only one click to messages with a payment gateway. confirm details presented on the screen of the phone. Before a card-not-present They can text any questions they have about the payment transaction is authorized, transaction before making a payment. The two-way Everyware matches the mobile communication link is tokenized for security. phone number entered by the Everyware is PCI and HIPAA compliant. Elavon prospective buyer with the valid and TSYS have certified its gateway. Certification owner of that number. After that validation, authorizations occur and Everyware facilitates a confirmation Elavon and TSYS have certified of the sale via a text message. That Everyware’s gateway. confirmation helps reduce disputed transactions. The Everyware system links the confirmation text to a is pending for other top acquirers and payment valid merchant phone number, facilitators. Payfone provides the mobile number which gives the cardholder the validation service. opportunity to text back any Larry Talley is CEO at Everyware in Austin, Texas, questions about the sale. [email protected], www.everyware.com.

Mastercard, R3, and Marco Polo Network from page 1... corporate clients. TradeIX is the platform provider. automating multiple payment types through a single Its technology handles all core functions within the connection for buyers and sellers. network’s open-account trade infrastructure, which The Marco Polo Network will promote Mastercard operates on the Corda open-source blockchain Track and Mastercard will promote Marco Polo. platform of enterprise software firm R3. Mastercard and R3 have signed a separate Among the 25 banks currently in agreement to pilot a cross-border the consortium are BNP, NatWest, payment service. Standard Chartered, ING, Clearing and settlement will be , and Commerzbank. handled by Mastercard. More than Consortium members pay a 300 financial services companies, licensing fee to participate in technology companies, central Marco Polo, which is in banks, regulators, and trade its pilot test phase. associations link to Corda. Membership in R3’s Corda blockchain the network will soon is a rules-based payment expand to include network. Mastercard sees it insurance and logistics as a complement to its Transfast companies and other corporations. cross-border payment capabilities. Mastercard has joined Marco Polo to promote R3 is regulated and compliant, payment and Mastercard Track, its B2B trade-enablement platform. channel agnostic, and capable of reaching a majority of Mastercard Track provides banks and other the world’s population. companies access to business identity information Oliver Belin is Chief Marketing Officer at TradeIX in Miami, through a secure, permissioned repository of more Florida, [email protected], www.tradeix.com. than 210 million registered entities worldwide. Claire Thompson is Executive VP Enterprise Partnerships It reduces the time it takes for businesses to at Mastercard in London, U.K., claire.thompson@ identify, vet, and onboard new trading partners while mastercard.com, www.mastercard.com.

6 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive EMVCo and 8-digit Issuer ID Numbers

The International Organization PANs or IINs to identify a new specification bulletin will be for Standardization (ISO) in cardholder for services such as published by the end of 2019 and conjunction with the International loyalty programs. Those merchants become effective in 2021. Electrotechnical Commission might need to update their back- The move to include 8-digit end systems. Point-of- IINs could impact merchant sale terminals may and processor systems beyond need to be updated to payments. EMVCo has published ensure they recognize a draft specification bulletin that 8-digit IINs beginning summarizes all of the changes. (IEC) have published an update in 2021. of the ISO/IEC 7812-1 standard EMVCo allowing for issuer identification is working to A draft specification bulletin numbers (IINs) to be expanded to evolve the EMV summarizes all of the changes. 8 digits. Integrated Currently, IINs are 6 digits. Circuit Card The IIN forms part of the primary Specifications for Payment The draft specification bulletin account number (PAN) that links Systems to support 8-digit issuer can be downloaded from the a payment card to an individual identification numbers as well EMVCo website. account. Some merchants use as the existing 6-digit format. A

Contactless mPOS Platform from page 1... from contactless cards and The company owns smartphones. Owners of mobile intellectual property rights devices can download an app, covering more than a answer a few questions, and dozen use cases. It sells register for card processing within to financial institutions, the app. payment facilitators, SaaS Customers also receive gateway businesses, marketplaces, integration, the kernel, a white as well as independent label payment facilitator service, software vendors (ISVs). and, if necessary, a tap-in/tap-out Those companies gain transit implementation. the offline payment processing Mastercard was an early Mobeewave has a global service they need to provide investor in Mobeewave and works contract with to power omnichannel processing to their with the company, including online merchant participating in sales calls and customers. product certification. A contract with Samsung to Mobeewave This year, Mobeewave clients power NFC-enabled smartphones. sees launched pilots in Poland, opportunities Australia, and Canada. The for its software company’s technology is certified the device manufacturer’s NFC- among companies that deliver by Visa, Mastercard, and Interac enabled smartphones. mobile payments in their (Canada’s network). Through a combination of own apps. Benjamin du Hays is CEO at over-the-air provisioning and Partners of Mobeewave include Mobeewave in Montreal, Canada, downloading, Mobeewave can Global Payments, Commonwealth [email protected], connect to the secure element or Bank of Australia, National Bank www.mobeewave.com. trusted execution environment of of Canada, Polskie ePlatnosci (PeP) Samsung mobile devices. in Poland, and Elavon. Prior issues: 1111, 1079, 1062, 1055

© 2019 HSN Consultants, Inc. THE NILSON REPORT SEPTEMBER 2019 / ISSUE 1160 / THE NILSON REPORT 7 Verified Mark Certificates for Email from page 1... validates the identities behind websites and digital vetted by a certificate authority. Once Dmarc and documents. The company supports the Dmarc VMC technologies have been configured by a company, their logo will automatically display in participating email platforms. Google will be the first (Domain-based Message Authentication, Reporting major email platform provider to test VMC. The test & Conformance) standard used by information will begin in the first quarter of 2020. technology professionals to secure communication between servers. Google will be the first major Companies that deploy Dmarc have created a email provider to test VMC. consortium called Brand Indicators for Message Identification (Bimi). Members of Bimi want large companies to embrace Dmarc as the backbone of Entrust Datacard is the first certificate authority a system that verifies the sender of a message. An for VMC. It will conduct a pilot test with JPMorgan incentive to embrace Dmarc is senders will be able Chase later this year. to display their corporate logos in email inboxes. Chris Bailey is VP, Strategy and Operations at Entrust To guarantee the proper logo is displayed, Bimi has Datacard in Minneapolis, Minnesota, chris.bailey@ created a Verified Mark Certificate (VMC). A VMC entrustdatacard.com, www.entrustdatacard.com. is provided to a company that has been strongly

Latin America’s 42 Largest Acquirers from page 1... Mastercard and Visa transactions volume) tied to those transactions Discover, and domestic-only cards from 10.5 million active merchant was $692.05 billion, up 4%. was $77.74 billion, down 11%. outlets in LA&C. Spending for The six largest acquirers—Cielo, Domestic-only volume was $20.83 goods and services (purchase Rede, Getnet, BBVA Bancomer, billion, down 35%. Transbank, and Prisma Medios Global brand and domestic- de Pago—collectively processed only brands combined generated Top Acquirers in 73% of all Mastercard and Visa 25.19 billion credit, debit, and Latin America 2018 transactions handled by the top prepaid card transactions at these 42 acquirers. acquirers, an increase of 10%. Transactions Volume Rank Company (mil.) (bil.) Those 42 acquirers also Purchase volume was $769.79 1 Cielo 6,900.0 $ 172.73 processed 2.92 billion transactions billion, up 2%. To reduce the 2 Rede 4,436.7 $ 122.62 (down 5%) from American impact of inflation and conversion 3 Getnet 2,138.8 $ 51.68 Express, Diners Club, and Discover from local currency to U.S. 4 BBVA 1,863.1 $ 54.69 cards as well as domestic-only dollars, the year-over-year growth 5 Transbank 1,529.5 $ 60.79 credit and debit cards issued rates shown here are expressed 6 Prisma Medios de Pago 1,373.4 $ 55.44 in Argentina, Brazil, Chile, in nominal dollars (i.e., local 7 PagSeguro 1 1,235.0 $ 20.99 Colombia, Costa Rica, Curacao, percent change). 8 StoneCo 890.3 $ 22.99 the Dominican Republic, Ecuador, Foreign exchange rates do not 9 Serv. de Pago Citibanamex–EVO 509.2 $ 23.59 Jamaica, Mexico, Panama, keep up with inflation, which 10 BAC Credomatic Network 503.7 $ 20.31 Paraguay, Peru, and Puerto Rico. masks the devaluation of a local Rankings are based on consolidated volume and transactions. The largest domestic-only brands currency to the U.S. dollar. Figures include all Latin America business. Volume is net were Elo, Hipercard, Cabal, When a government also (gross minus chargebacks) for American Express, Diners Club, Banricompras, Redcompra, Clave, manipulates foreign exchange Discover, JCB, Mastercard, UnionPay, Visa, and domestic general purpose cards such as Elo, Hipercard, Carnet, and Credomatic, Cashnet, ATH, rates, as in Venezuela, the Redcompra. 1 Number of transactions have been estimated. Carnet, and Midas. Purchase distortion widens. © 2019 The Nilson Report volume for Amex, Diners,

8 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Largest Merchant Acquirers in Latin America 2018

Visa/Mastercard 1 Other Cards 2 Active Rank Transactions Volume Transactions Volume Merchant POS ‘18 ‘17 Company, Headquarters (mil.) Chg. (mil.) Chg. (mil.) (mil.) Outlets Terminals 1 1 Cielo, Brazil 5,300.0 -4% $ 137,688.3 -1% 1,600.0 $ 35,042.4 1,200,000 1,820,000 2 2 Rede, Brazil 4,328.5 8% $ 120,515.9 12% 108.2 $ 2,109.0 1,050,334 1,228,000 3 3 Getnet, Brazil 1,843.7 16% $ 46,451.7 19% 295.0 $ 5,226.8 481,965 774,825 4 4 BBVA Bancomer, Mexico 1,821.9 19% $ 52,602.9 25% — $ — 185,618 467,143 5 5 Transbank, Chile 1,482.7 24% $ 58,274.8 21% 46.8 $ 2,516.6 293,228 355,427 6 6 Prisma Medios de Pago, Argentina 1,370.0 16% $ 55,355.2 42% 3.4 $ 83.2 485,000 489,000 7 9 PagSeguro, Brazil 3 988.0 94% $ 16,793.9 98% 247.0 $ 4,198.5 4,135,473 5,125,000 8 7 StoneCo, Brazil 801.2 51% $ 20,694.6 55% 89.0 $ 2,299.4 267,900 339,134 9 8 Serv. de Pago Citibanamex–EVO, Mexico 470.8 7% $ 22,069.2 8% 38.4 $ 1,521.7 172,581 181,705 10 10 BAC Credomatic Network, Group 4 429.3 9% $ 15,219.2 5% 74.4 $ 5,090.3 103,619 180,661 11 11 First Data, Argentina 421.4 18% $ 16,821.3 43% 2.3 $ 90.6 335,279 350,367 12 13 Banorte, Mexico 417.1 30% $ 16,199.3 27% — $ — 107,595 157,953 13 12 VisaNet, Peru 397.1 23% $ 14,112.6 19% — $ — 248,802 247,820 14 14 Evertec Group, Puerto Rico 5 348.0 13% $ 13,594.6 17% 62.1 $ 3,111.7 29,938 44,227 15 15 Elavon/Santander, Mexico 340.5 23% $ 15,842.7 18% 0.1 $ 21.3 121,746 196,101 16 16 Bancolombia, Colombia 156.6 14% $ 8,226.9 16% 8.2 $ 740.4 145,470 6 17 18 HSBC, Mexico 145.8 27% $ 6,224.8 40% — $ — 48,052 85,579 18 17 Vero, Brazil 122.1 6% $ 3,245.8 16% 180.3 $ 3,969.7 258,078 2,091,103 19 38 VisaNet, Dominican Republic 107.4 8% $ 4,302.7 3% — $ — 25,597 41,592 20 19 CardNet, Dominican Republic 104.0 11% $ 4,184.8 1% 0.1 $ 15.0 23,254 39,924 21 20 Banco Davivienda, Colombia 91.7 11% $ 5,402.0 6% 6.4 $ 667.7 99,329 6 22 22 Banco Inbursa, Mexico 75.4 17% $ 2,270.1 18% 0.8 $ 6.1 67,999 74,052 23 24 Servicios Digitales Popular, Dominican Republic 73.0 25% $ 3,297.8 28% 0.2 $ 12.7 18,775 28,780 24 21 Banco Nacional, Costa Rica 66.2 3% $ 2,336.8 10% — $ — 61,633 50,936 25 25 BCR, Costa Rica 64.1 13% $ 1,982.9 11% — $ — 35,299 27,145 26 23 Banco de Occidente, Colombia 60.5 3% $ 2,450.4 -3% — $ — 25,638 6 27 26 Procesos de Medios de Pago, Peru 55.4 21% $ 2,199.7 15% 21.2 $ 1,338.0 136,938 162,271 28 28 Bancard, Paraguay 50.8 28% $ 1,819.4 16% 4.8 $ 119.8 28,448 40,256 29 27 Scotiabank, Mexico 50.1 21% $ 1,514.5 18% 0.2 $ 75.7 25,316 26,813 30 29 BBVA, Colombia 41.2 6% $ 2,091.0 5% — $ — 21,219 6 31 32 Banco del Pacifi co, Ecuador 39.6 23% $ 1,894.1 10% — $ — 81,698 57,564 32 30 Banco Caja Social, Colombia 37.9 6% $ 1,323.8 5% — $ — 17,898 6 33 31 Diners Club, Ecuador 28.7 -13% $ 2,465.7 19% 43.4 $ 4,267.4 71,537 91,618 34 34 Banco Agricola, El Salvador 23.4 21% $ 1,143.0 23% — $ — 2,004 4,403 35 33 Firstbank, Puerto Rico 22.9 6% $ 767.7 -17% 21.9 $ 726.2 4,491 5,447 36 35 Scotiabank, Puerto Rico 17.8 9% $ 3,453.8 7% 2.0 $ 984.3 7,901 9,560 37 — FirstCaribbean Intl Bank, Barbados 15.4 — $ 2,105.3 — 0.5 $ 238.5 5,378 7,140 38 37 National Commercial Bank, Jamaica 12.9 20% $ 1,583.7 31% 11.5 $ 1,016.8 13,137 17,267 39 36 Banco General, Panama 12.6 3% $ 1,042.0 -7% 11.6 $ 342.7 6,204 7,763 40 40 Maduro & Curiel’s, Curacao 7 9.6 13% $ 1,102.7 5% 20.2 $ 1,094.4 6,249 10,993 41 39 Republic Bank Limited, Trinidad & Tobago 8 8.8 1% $ 804.8 1% — $ — 6,758 9,719 42 41 Elavon/Santander, Puerto Rico 8.0 21% $ 580.0 19% 24.0 $ 812.0 3,623 4,112 Figures are net (gross minus chargebacks). Change in volume is based on local currency. 1 Visa and Mastercard credit, debit, and prepaid cards including Electron and Maestro. 2 Includes American Express, Diners Club/Discover, JCB, UnionPay, and domestic debit and credit cards. 3 Number of transactions have been estimated. 4 Includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. 5 Includes U.S. Virgin Islands and British Virgin Islands. 6 POS terminals are owned by Credibanco and Redeban. 7 Includes Aruba, Bonaire, and Sint Maarten. Includes Grenada and Guyana. Foreign exchange regulations in Venezuela restricted access to U.S. dollars. This aff ected the exchangeability between the Venezuelan bolivar and the U.S. dollar. Combined with the extraordinary hyperinfl ation, which further distorted purchase volume when expressed in U.S. dollars, we did not include merchant acquirers from Venezuela in this ranking. © 2019 The Nilson Report

© 2019 HSN Consultants, Inc. THE NILSON REPORT SEPTEMBER 2019 / ISSUE 1160 / THE NILSON REPORT 9 POS Terminal Shipments Worldwide from page 1... nearly 1.1 million units versus the prior year, overtook the prior year. Canada’s market share fell to 0.32% registers (ECRs) or PC-based The market share of worldwide Shipments to Europe reached the United States in the number of POS terminal from 0.41%. systems, or ECRs or PC-based shipments for Asia–Pacific was 7.9 million units, up 13.7%. shipments received. In Asia–Pacific, Newland Payment Technology systems themselves. 66.90% in 2018, up from 62.73% Europe’s market share dropped to Shipments to the United States of 5.6 million continued as the largest manufacturer with 13.7 Shipments of newly the prior year. 7.63% from 9.33%, even though terminals was a decline million terminals shipped, manufactured POS terminals into Latin America and the it received nearly 1.0 million more of 5.2%. The U.S. region’s Middle East—Africa overtook the an increase of 67.1% the Asia–Pacific region boomed Caribbean (LA&C) region received devices than the prior year. share of terminals shipped over 2017. China was U.S. in POS terminal shipments. in 2018 to 69.3 million devices, 13.9 million POS terminals last The Middle East–Africa region worldwide fell to 5.37% Newland’s largest market. an increase of 48.3%. Asia–Pacific year, up 52.3%. This was an shipments reached 6.6 million from 7.88%. The number Shenzhen Xinguodu accounted for 77.6% or 22.6 increase of 4.8 million units. The terminals, an increase of 19.7%. of terminals shipped to the US. fell by 306,212 units. Technology (Nexgo) ranked second largest in Asia– million units of the total increase market share for LA&C grew to However, its market share fell to POS terminal shipments to Canada reached Pacific. It shipped 4.8 million more units in 2018 than of 29.1 million units shipped 13.37% from 12.20%. 6.41% from 7.45%. Middle East- 330,009, an increase of 6.8%. The number of 2017, when it ranked eighth largest in the region. in 2018. Africa, which had an increase of terminals shipped to the region grew by 21,054 versus > see p. 12

M POS T R S 201 Market Shares by Region

U S L E M E Asia – Pacific Pax Ingenico Dspread Newland Ingenico Dspread BBPOS Verifone Bitel Xinguodu First Data SZZT Ingenico Datecs Castles Itron BBPOS Verifone Verifone Spire Verifone Anfu Castles Castles Dspread Pax Pax Ingenico UIC YouTransactor Castles Newland SZZT MoreFun Equinox Bluebird YouTransactor Castles Justtide Centerm Pax WizarPOS SZZT Yarus CyberNet Pax USA Tech. Smartpeak CyberNet Worldline Ingenico Tianyu Square Nayax Justtide Smartpeak Newland New POS SZZT Yarus Gertec Dspread Sunyard Verifone Nayax Sunyard Spectra Telepower Bluebird Dspread Dspread Wiseasy Newland Bitel Spectra SZZT Datecs First Data Telepower CyberNet Smartpeak Sunyard Smartpeak Urovo Yarus Nayax Spire Castles Yarus Newland Centerm Sunyard Centerm Vanstone Urovo New POS Bitel YouTransactor Vanstone Smartpeak WizarPOS Telepower Wiseasy Vanstone Telepower Bitel Telepower Waypotat New POS First Data WizarPOS Wiseasy Xinguodu Pax Sunyard NewNote Xinguodu Telepower ACS Vanstone WizarPOS CCV New POS Urovo Sunyard Spectra Datecs Urovo Worldline WizarPOS MagTek TOTL 0009 Smartpeak SZZT Yarus Spectra YouTransactor Totals Include: 1. Wiseasy (300), New POS (52), MoreFun (27). Vanstone WizarPOS Urovo BBPOS Bluebird 2. First Data (975), Waypotat (54), Worldline (43), ACS (14). Xinguodu Justtide Waypotat Justtide

Newland 3.Payter (7,70), UIC (5,677), Centerm (3,01), BBPOS (2,397), Bluebird New POS Datecs CyberNet Waypotat (2,200), Feitian (1,000), Wiseasy (200), ACS (191), Bitel MoreFun (90). 4. NewNote (1,250), First Data (1,000), Linkwell (951), Spire Spectra Wiseasy TopWise Vanstone BBPOS (340), MoreFun (36), ACS (2), UIC (15). 5. Spire (6,230), Feitan Bluebird Thumbzup Linkwell Worldline Feitan (74,300), Yarus (59,000),Bluebird (40,634), Toshiba (35,000), Urovo FlyPOS Nayax Panasonic Waypotat YouTransactor (35,000), Nayax (22,000), Worldline (15,515), Nayax Xinguodu YouTransactor Datecs SCSPro (,000), Thumbzup (2,000), ACS (1,94), Waypotat (1,530), TOTL 61 1 TOTL 101 2 TOTL 901 3 TOTL 66112 4 TOTL 69026 5 First Data (1,315), UIC (1,276). © 2019 The Nilson Report

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POS Terminal Shipments Worldwide from page 11 Shenzhen Itron Electronics was shipped 2.5 million more units in markets were Zimbabwe, Nigeria, third largest in Asia–Pacific. It 2018 than 2017. BBPOS remained the United Arab Emirates, and shipped 1.9 million more units in second largest. It shipped 0.8 South Africa. Bitel and Castles 2018 than 2017. The company’s million more units than the Technology were second and largest markets were China, prior year. third largest. South Korea, and Taiwan. Beijing In Europe, Ingenico and For shipments to the United Shenzhou Anfu Technology was Verifone continued as the top States, Verifone and Ingenico were fourth largest. It shipped 1.9 manufacturers. Datecs moved up the largest manufacturers. For million more units in 2018 than to third largest with an increase of Canada, Ingenico, Dspread, and 2017. China and Indonesia were its 0.4 million units. SZZT Electronics were the largest. top markets. In the Middle East–Africa Pax Technology continued as region, Dspread Technology was Prior issues: 1154, 1152, 1151, LA&C’s largest manufacturer. It the largest manufacturer. Its main 1146, 1145, 1144, 1143, 1142, 1141

GoCardless Pull Payment Processing from page 1... company estimates that consumer and commercial is the only global network of its kind. Other A2A recurring payments are a $40-trillion market processors either push payments to billers or offer pull annually on a global basis. payments only in select domestic markets. GoCardless is integrated with more than 150 platforms, including those of accounting software companies that focus on small businesses such as Xero, Sage, and Intuit’s Quickbooks, as well as that GoCardless’s more than 45,000 clients access of subscription software company Zuora. Enterprise its cloud-based service using a dashboard or API. clients include TripAdvisor, Thomas Cook, and Processing volumes exceed $1.20 billion a month. The Guardian. Merchants pay GoCardless a percentage of the value The company’s global network is built on direct of each transaction and in some cases monthly fees debit settlement links including with ACH (U.S.), depending on the level SEPA (EU), PAD of customization of The company can support mer- (Canada), Autogirot the service. (Sweden), BACS (U.K.), Failure rates from chants in 30 countries. BECS (Australia), BECS pull transactions tied to NZ (New Zealand), recurring payments are in the 3% range. For payment and Betalingsservice (Denmark). Those networks cards, failure rates on recurring payments are present different technological challenges to facilitate significantly higher. frictionless clearing services. GoCardless solves that The U.K.-based company recently completed problem and gives clients access to all with one API. expansion of its account-to-account (A2A) payment GoCardless has received more than $120 million in service and can support merchants in 30 countries in funding, including $75 million in a Series E round in Europe, North America, Australia/New Zealand, and February of this year. South Africa. GoCardless believes its authorization- Duncan Barrigan is VP Product at GoCardless Ltd. based pull payment service, which covers up to 70% in London, U.K., [email protected], of the potential global market for recurring payments, www.gocardless.com.

David Robertson, Publisher September 17, 2019

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