A NEW LOOK for the FOR 49 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE NILSON REPORT MAY 2020 / ISSUE 1175 NEXT ISSUE Payment Industry’s Response to Covid-19—Part 3 Governments worldwide are taking steps to reopen their Top Acquirers in Europe economies to retail commerce, manufacturing, and services as they address the global recession triggered by the fight against Purchase Transactions (Bil.) the Covid-19 pandemic. 2019 VS. 201 On pages 10 and 11 we highlight actions taken in North and SERANK South America, Asia, and Europe taken by card and mobile ‘19 20.61 payment companies to address the impact of Covid-19. ’18 14.37 > see p. 10 WORLDPAY Global Payments Gets Truist Credit Card Processing ‘19 9.67 ’18 8.70 The Total System Services (Tsys) business unit of Global Payments ARCLAYS will handle credit card account processing services for Truist, the ‘19 7.34 bank holding company formed by the 2019 merger of BB&T and ’18 7.00 > see p. 6 J.P. MORGAN ‘19 4.62 First Quarter Card Results in the U.S. ’18 3.75 Consumer, small business, and commercial credit, debit, and NETS prepaid cards carrying Visa, Mastercard, Discover, and American ‘19 4.42 Express brands issued in the U.S. as well as payments settled ’18 3.58 > see p. 5 CREDIT AGRICOLE ‘19 3.94 Aluminum Payment Cards ’18 3.61 WORLDLINE Anomatic has spent the last three years in research and ‘19 3.87 development of its all-aluminum anodized AnoCard card. ’18 3.48 AnoCards, which are manufactured using 100% recyclable CREDIT MUTUEL > see p. 5 ‘19 3.86 Adflex B2B Digital Payment Processing ’18 3.61

More than 3,000 companies use the Adflex multilingual, © 2020 The Nilson Report multicurrency (150+) platform to increase accounts payable and Top 45 Merchant Acquirers in Europe accounts receivable efficiencies between buyers and suppliers. > see p. 6 A ranking of the 45 largest acquirers of Visa (including Electron) Investments & Acquisitions—April 2020 and Mastercard (including Maestro) credit, debit, and prepaid card payments from merchants in Europe based on transactions Turn to page four for a list of 63 acquisitions and investments that processed in 2019 is presented in the chart on pages 8 and 9. occurred in 20 countries in April 2020. The U.S. led with 26 deals, The chart above shows Europe’s eight largest merchant followed by Europe with 18, Asia-Pacific with 11, Middle East- acquirers ranked by combined global brand (Visa, Mastercard, Africa with 5, Canada with 2, and Latin America with 1. American Express, Diners Club, UnionPay, and JCB) payments Prior issues: 1173, 1171, 1169 acquired as well as four Europe-based domestic-market-only > see p. 4 > see p. 7

INSIDE 2 – 3 Fast Facts CHARTS 5 U.S. General Purpose Cards 1Q 2020 vs. 1Q 2019 Management Changes 7-9 Top Merchant Acquirers in Europe Ranked by: Transactions & Purchase Volume and Mastercard/Visa Transactions 12 Top 25 Acquirers of Web Transactions in Europe

© 2020 HSN Consultants, Inc. THE NILSON REPORT VISIT US ONLINE AT WWW.NILSONREPORT.COM FIS has launched FIS Digital Issuance, which lets financial VISA, MASTERCARD, AMERICAN EXPRESS, and DIS- institutions provide newly approved applicants with COVER have postponed increases in interchange and mer- 12TH EDITION The World’s Top Card Issuers and Merchant Acquirers immediate mobile access to their credit and debit accounts. chant fees until April 2021. Adjustments had been scheduled Now in its 12th edition, this 126-page report lists 1,109 Avidia Bank is the first issuer to offer the service. FIS Digital for July 2020. Amex, Visa, Mastercard, and Discover have card issuers in 117 countries grouped by region. Issuance also provides a same-day mobile replacement also postponed the imposition of the EMV fuel pump liability option for cardholders whose cards are lost, stolen, or shift from issuers to gasoline sellers. Our research report is available as a PDF and, for the compromised. Jim Johnson is Head of Payments and Wealth CONFERMA PAY, provider of virtual card technology to first time, data tables are also available in Excel format. at FIS, [email protected], www.fisglobal.com. corporations, has integrated Visa virtual cards in the The World’s This much-requested update adds new possibilities for Todd Wood is AVP Digital Banking at Avidia Bank, t.wood@ Top Card Issuers exploring our data. FAST Conferma Pay mobile app. Employees can make virtual card avidiabank.com, www.avidiabank.com. payments anywhere contactless payments are accepted. and Merchant Acquirers As a Nilson Report subscriber, you will appreciate PAYA, an integrated payment provider that handles over Purchases are captured in a single record, providing the

FACTS AR ISSUERS having our regional and worldwide figures in one $30 billion annually for over 100,000 customers, will be commercial card program manager with visibility into an ERANT AUIRERS ASIAPACIFIC, CANADA, EUROPE, LATIN AMERICA, reference document. You will also get the following offered to clients of Healthfully, an enterprise healthcare individual’s spending. Paper receipts or manually submitted UNITED STATES, MIDDLE EAST AND AFRICA Visa, Mastercard, American Express, UnionPay, JCB, Discover and Diners Club service provider. Mark Engels is Chief Revenue Officer expenses are eliminated. Kevin Phalen is SVP, Global Head at (not published in the newsletter): WHAT YOU’LL FIND IN THIS REPORT MAY 2020 at Paya, [email protected], www.paya.com. Visa Business Solutions, [email protected], www.visa.com. Worldwide By World Region General Purpose Cards General Purpose Cards 2018 vs. 2017 Paul Viskovich is CEO at Healthfully, [email protected], Simon Barker is CEO at Conferma Pay, simon.barker@ Purchase Transactions on Global Cards Market Shares of Purchase Volume • Top 300 Issuers Worldwide by Country (ranked by ISSUE 1175 Purchases by Card Type YOY Growth/Decline in Purchase Volume Top 300 Issuers Top General Purpose Card Issuers purchase volume) www.healthfully.io/. conferma.com, www.conferma.com. Top 150 Credit Card Issuers Top 50 Credit Card Issuers Top 150 Debit Card Issuers Top 50 Debit Card Issuers • Top Merchant Acquirers Worldwide (ranked by Top 100 Maestro Issuers Largest General Purpose Card Issuers No paid SECURETRUST, a division of Trustwave, has launched COMPASS PLUS migrated Network International’s 12 Top 150 Credit Card Portfolios Card Issuers Credit vs. Debit Top 150 Merchant Acquirers Largest Merchant Acquirers purchase volume) advertising. SecureTrust PCI Manager, a cloud-based platform that issuer processor clients (banks) in Egypt from legacy Photo by Kewal on Unsplash • Hundreds of additional listings: No sponsored provides Payment Card Industry (PCI) compliance validation infrastructures in 2019. Network International, a top third- FOR 50 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE Issuers by Region and Country (more than the top 50) content of any kind. and enhanced risk mitigation for acquiring banks and party processor in the Middle East and North Africa, has Figures include cards in circulation and Credit vs. Debit Issuers by Region by Country Ever. merchant service providers. It was designed for all self- used Compass Plus software for 14 years. Alexey Osipov is spending for credit & debit in each world region. assessing entities (Level 2 through Level 4). Michael Petitti is EVP & MEA Managing Director at Compass Plus, a.osipov@ Order online, or contact our subscription manager President at SecureTrust, [email protected], compassplus.com, www.compassplus.com. Hany Fekry is Order Today ([email protected]) to inquire about pricing. www.securetrust.com. Managing Director, Egypt at Network International, www.nilsonreport.com/research [email protected], www.network.ae. CLEARSALE has moved the hosting of its anti-fraud application to Microsoft Azure and to using the Azure SQL TRUSTONIC has provided KB Kookmin Bank (KB Bank), Database hyperscale tier. The move lets ClearSale, which the largest bank in Korea with three million mobile custom- has over 3,000 customers worldwide, streamline upgrades ers, with Trustonic Application Protection (TAP) to enable to new and existing applications. Rafael Lourenco is EVP a simpler authentication process for the KB star banking and Partner at ClearSale US, [email protected], app. Trustonic’s mobile application protection lets the bank www.clear.sale. provide faster and more secure digital banking services because it isolates authentication certificates in the LINKED2PAY, a risk management and payment hardware of smartphones. Dion Price is CEO at Trustonic, technology provider, has launched CustomerConnect, [email protected], www.trustonic.com. which aims to eliminate late B2B invoice payments. CustomerConnect supports merchant accounts on card DPO GROUP, a payment service provider to over 100,000 processing gateways including TSYS MultiPass/TransIT, merchants in Africa, has expanded operations to include Heartland Portico, First Data, NAB Velocity, and francophone countries Senegal, Côte d’Ivoire, and the Authorize.Net. It also supports the linked2pay and Paya ACH Democratic Republic of the Congo. DPO is the largest gateways. Robert McShirley is CEO at linked2pay, PSP in South Africa. Eran Feinstein is CEO, [email protected], www.linked2pay.com. [email protected], www.dpogroup.com.

ASURINT, provider of background checks used in the hiring UNIONPAY has expanded its online merchant acceptance process for both recruiters and candidates, has gone live in Europe with 10 partnerships, including Stripe, Santander, with BillingPlatform’s fully automated, cloud-based billing and Nexi. Since the beginning of the Covid-19 pandemic, services. Dennis Wall is CEO at BillingPlatform, dennis.wall@ global online transaction volume at UnionPay has increased billingplatform.com, www.billingplatform.com. Brent Sisson is by 20%. Wei Zhihong is International Market Dir. & General CFO at Asurint, [email protected], www.asurint.com. Manager of Europe Branch, [email protected], www.unionpayintl.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 12TH EDITION The World’s Top Card Issuers and Merchant Acquirers

12TH EDITION NowThe World’s in its 12th Top edition, Card Issuers this 126-page and Merchant report lists Acquirers 1,109 cardNow issuersin its 12th in 117 edition, countries this 126-page grouped byreport region. lists 1,109 card issuers in 117 countries grouped by region. Our research report is available as a PDF and, for the firstOur researchtime, data report tables is availableare also availableas a PDF in and, Excel for format. the The World’s Thisfirst much-requestedtime, data tables update are also adds available new possibilities in Excel format. for TopThe CardWorld’s Issuers exploringThis much-requested our data. update adds new possibilities for andTop MerchantCard Issuers Acquirers exploring our data. and Merchant Acquirers As a Nilson Report subscriber, you will appreciate

AR ISSUERS havingAs a Nilson our regional Report subscriber,and worldwide you willfigures appreciate in one

ERANT AUIRERS ASIAPACIFIC, AR CANADA,ISSUERS EUROPE, LATIN AMERICA, referencehaving our document. regional and You worldwide will also get figures the following in one UNITED ERANT STATES, MIDDLE AUIRERS EAST AND AFRICA Visa, Mastercard, American Express, UnionPay, JCB, Discover and Diners Club ASIAPACIFIC, CANADA, EUROPE, LATIN AMERICA, reference document. You will also get the following UNITED STATES, MIDDLE EAST AND AFRICA (not published in the newsletter): WHATVisa, YOU’LLMastercard, FIND IN American THIS REPORT Express, UnionPay, JCB, Discover and Diners Club (not published in the newsletter): Worldwide By World Region WHAT YOU’LL FIND IN THIS REPORT General Purpose Cards General Purpose Cards 2018 vs. 2017 PurchaseWorldwide Transactions on Global Cards Market By World Shares Region of Purchase Volume • Top 300 Issuers Worldwide by Country (ranked by

PurchasesGeneral Purpose by Card Cards Type YOYGeneral Growth/Decline Purpose Cards in Purchase 2018 vs. 2017Volume TopPurchase 300 Issuers Transactions on Global Cards TopMarket General Shares Purpose of Purchase Card Issuers Volume • purchaseTop 300 Issuers volume) Worldwide by Country (ranked by TopPurchases 150 Credit by CardCard TypeIssuers TopYOY 50 Growth/Decline Credit Card Issuers in Purchase Volume TopTop 150 300 Debit Issuers Card Issuers TopTop 50 General Debit PurposeCard Issuers Card Issuers • Toppurchase Merchant volume) Acquirers Worldwide (ranked by TopTop 100 150 Maestro Credit Card Issuers Issuers LargestTop 50 GeneralCredit Card Purpose Issuers Card Issuers TopTop 150 150 Credit Debit Card IssuersPortfolios CardTop 50Issuers Debit Credit Card Issuersvs. Debit • Top Merchant Acquirers Worldwide (ranked by Top 150 Merchant Acquirers Largest Merchant Acquirers purchase volume) Top 100 Maestro Issuers Largest General Purpose Card Issuers

Top 150 Credit Card Portfolios Card Issuers Credit vs. Debit

Top 150 Merchant Acquirers Largest Merchant Acquirers purchase volume) Photo by Kewal on Unsplash • Hundreds of additional listings:

FOR 50 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE Photo by Kewal on Unsplash • IssuersHundreds by ofRegion additional and Country listings: (more than the top 50)

FOR 50 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE Figures include cards in circulation and CreditIssuers vs. by Debit Region Issuers and Country by Region (more by Countrythan the top 50) spendingFigures for include credit & cards debit in in circulation each world and region. Credit vs. Debit Issuers by Region by Country spending for credit & debit in each world region. Order online, or contact our subscription manager Order Today ([email protected])Order online, or contact our tosubscription inquire about manager pricing. www.nilsonOrderrepo Trot.dcom/ayresearch ([email protected]) to inquire about pricing. www.nilsonreport.com/research

PPRO, a top provider of a local payment platform-as-a-service, has added two Japanese ecommerce payment methods, Konbini and Pay-easy, to the over Management Changes 150 methods already on its platform. Konbini consumers can shop online and pay in cash at over 50,000 convenience stores. Pay-easy lets consumers pay Daniel Eckert has been appointed Executive Vice President & Chief offline with cash and debit cards at ATMs and post offices or online using a Product, Strategy, and Development Officer at Green Dot, daniel. bank transfer. Kelvin Phua is Global Head of Payment Networks at Ppro, [email protected]. Roger Applewhite has been appointed [email protected], www.ppro.com. President and Chief Executive Officer at MagTek, roger.applewhite@ magtek.com. Shai Cohen has been appointed Senior Vice President of ZWIPE, provider of a biometric inlay platform for fingerprint-secured payment Global Fraud Solutions at TransUnion, [email protected]. cards, has a partnership with Hong Kong-based Asia Credit Card Production Sean Feeney has been appointed Chief Executive Officer at (ACC), a specialist smart card manufacturer. The Zwipe Pay ONE platform is USA Technologies, [email protected]. Kurt Andersen has been powered by a single-chip biometric secure element. ACC is currently appointed Chief Marketing Officer at BillingPlatform, kurt.andersen@ completing the application process for full Visa, Mastercard, JCB, and billingplatform.com. Matthew Landers has been appointed Vice UnionPay certification to issuers in the APAC region. Andre Lovestam is CEO at President of Sales at Certified Payments, matthew.landers@ Zwipe, [email protected], www.zwipe.com. certifiedpayments.com. Larry Wine has been appointed Chief Operating MASTERCARD brand virtual and physical debit cards will be issued by Paytm Officer at Bakkt, [email protected]. Annie Kirkland has been Payments Bank. The bank will begin with virtual debit cards. Porush Singh is appointed Vice President, Solution Design at Ubiquity Global Services, Division President, South Asia at Mastercard, porush.singh@mastercard.com, [email protected]. Octavia Washington has been appointed www.mastercard.com. Assistant Vice President and Operations Analyst at ICBA Bancard, [email protected]. Pamela Tefft has been appointed Corporate BARCLAYCARD provides UnionPay card acceptance to its 110,000 U.K. Controller and Chief Accounting Officer at Priority Technology Holdings, merchants. Rob Cameron is CEO of Payment Acceptance at Barclaycard, [email protected]. [email protected], www.barclays.com.

© 2020 HSN Consultants, Inc. THE NILSON REPORT MAY 2020 / ISSUE 1175 / THE NILSON REPORT 3 © HSN Consultants, Inc. 2019 THE NILSON REPORT SEPTEMBER 2019 / ISSUE 1161 / THE NILSON REPORT 2 Investments & Acquisitions April 2020

Company Buyer/Investor Amount Country Company Buyer/Investor Amount Country (mil.) (mil.) ALTERNATIVE CREDIT MERCHANT ACQUIRING/PROCESSING (CONTINUED) Afterpay Tencent 1 $224.0 Australia Stripe Series G 22 $600.0 U.S. AlphaCredit equity round 2 $100.0 Mexico MOBILE PAYMENTS Cross River Series C 3 $100.0 U.S. Hubpay seed funding 23 * U.A.E. Oriente Series B 4 $50.0 Hong Kong M-Pesa Safaricom/Vodacom 6 * Kenya Paidy Series C 5 $8.0 Japan M2P Solutions/YAP Series A 24 $4.5 India Tidewater Credit Genesis Credit 6 * U.S. Mamo Pay seed funding 7 $1.5 U.A.E. ATMS Moka Gojek 6 $130.0 Indonesia Dolphin Debit Euronet 6 * U.S. PhonePe corporate round 25 $28.0 India Tremont Capital Paramount Management 6 * U.S. Phos seed funding 26 $1.4 U.K. B2B PAYMENTS VibePay undisclosed venture round 27 $1.5 U.K. AvidXchange Series F 7 $128.0 U.S. Voyager (PayMaya) equity round 28 $120.0 Philippines Digits Series B 8 $22.0 U.S. PERSONAL FINANCE Global Envoi Harbour & Hills 6 * Hong Kong Chip crowdfunding $3.2 U.K. Investree Series C 9 $23.5 Indonesia Snoop seed funding 29 $3.6 U.K. Previse undisclosed venture round 10 $11.0 U.K. Stash Series F 30 $112.0 U.S. Railsbank Series A 11 * U.K. Trade Republic Series B 31 $69.0 Germany Sila seed funding 12 $7.7 U.S. PREPAID CARDS BLOCKCHAIN/CRYPTOCURRENCY Airwallex Series D 32 $160.0 Hong Kong Applied Blockchain seed funding 13 $2.4 U.K. MoneyToPay Global Payments/CaixaBank 6 * Spain Bitpanda undisclosed venture round 14 * Austria SVM Cards Blackhawk Network 6 * U.S. Crypto Finance Series B 15 $14.9 Switzerland University Fancards Series A 33 $4.0 U.S. Portis ShapeShift 6 * Israel SECURITY Props token sale 16 $2.0 U.S. Beyond Identity Series A 34 $30.0 U.S. CARD PROCESSING BioCatch Series C 35 $145.0 Israel Galileo Financial SoFi 6 $1,200.0 U.S. IdentityMind Acuant 6 * U.S. CREDIT BUREAU Onfi do Series D 36 $100.0 U.K. Credit Kudos Series A 17 $6.0 U.K. Privitar Series C 37 $80.0 U.K. LOYALTY/OFFERS SOFTWARE Aimia Kognitiv 6 * Canada Greenbits Series B 38 $23.0 U.S. Empyr Augeo 6 * U.S. Paytronix Systems private equity round 39 $10.0 U.S. MERCHANT ACQUIRING/PROCESSING Recko Series A 40 $6.0 India Acceptiva Qgiv 6 * U.S. Yapily Series A 41 $13.0 U.S.

18 Bango NHN $3.7 U.K. Terms not disclosed. 1 Purchased a 5 stake. ed By oftBanks atin BNA Smart Ackroo Canada 6 * Canada America und. ed by hefa Capital. ed by ee Ka Kit. 5 rom tochu. Acuisition. nvestors not disclosed. ed by V. ed by B Ventures. Echo Daily VizyPay 6 * U.S. 10 ed by Mastercard. 11 ncluding Visa. 1 ed by Hope Cochran. 1 rom BN EVO Payments private equity round 19 $150.0 U.S. Capital. 1 rom peedinvest. 15 ed by ingfeng Capital. 1 ed By Union uare 1 1 1 FlashBanc Celero 6 * U.S. Ventures. ed by AlbionVC. Purchased a . stake. rom Madison earborn Partners. 0 ed by Combinator Continuity. 1 rom NB and Gateway Payments Payroc 6 * U.S. anske Banke. ed by Andreessen Horowit. ed by ignal Peak Ventures. GoPay Worldline 6 * Czech Rep. ed by Beenet. 5 rom lipkart. ed by New Vision . ncluding Vela Technologies. ed by C Asset Management. ed by Havisham roup. 6 Korta Rapyd * Iceland 0 ncluding ending Tree. 1 ed by Accel and ounders und. ed by Paytron Australis Capital 6 * U.S. alesforce Ventures. ed by MetaBank. rom Koch isruptive Technologies and New Enterprise Associates. 5 ncluding American Epress. ed by TP Podium Series C 20 $125.0 U.S. rowth. ed by arburg Pincus. ed by Tiger lobal Management. ed Spiir equity round 21 $5.1 Denmark by reat Hill Partners. 0 ed by Verte Ventures. 1 ed by akestar. © 2020 The Nilson Report

4 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Aluminum Payment Cards from page 1... aluminum, are scratch-resistant. They can be made What is distinctive about aluminum cards is the in any color with bright and semibright finishes. All vibrancy of the color printing, which is also immune edges are completely smooth. to fading or discoloring over time. AnoCards, which AnoCards weigh 9.5 grams, are heavier than PVC cards but are immediately lighter than other metal cards. available for Anomatic can deliver cards premilled with pockets identification, that accommodate chips and magnetic stripes from its insurance, facilities in the U.S. All design, prototyping, tooling, loyalty, and anodizing, and fabrication occur in the same plant. private label The company operates over 90 stamping presses and prepaid 14 anodizing lines. It can produce over 2.50 billion use cases. units a year. Accreditation from Visa and Mastercard is in progress and hoped ...validated by third-party labs to for by year-end 2020. Full-function contact-only meet all relevant ISO standards. AnoCards have already been validated by third- party labs to meet all relevant ISO standards. The cards cannot support contactless payments because Steve Rusch is VP Marketing and Business Development aluminum blocks radio waves. at Anomatic in New Albany, Ohio, srusch@anomatic. com, www.anomatic.com.

First Quarter Card Results in the U.S. from page 1... through Visa Direct and trillion in payment volume in the through March 31), up 4.9% from Mastercard Send generated $1.626 first quarter of 2020 (January 1 the same period in 2019. Credit card purchase volume of $931.72 billion U.S. General Purpose Cards 1Q 2020 vs. 1Q 2019 increased 3.1%. Cash volume (from balance transfers, Dollar Volume (bil.) Purchase Trans. ATMs, over the counter, and Brand Total Chg. Purchases Chg. Cash Chg. (bil.) Chg. paper checks) on credit cards Visa Credit $ 507.08 3.9% $ 492.09 3.9% $ 14.99 2.1% 5.96 4.5% was $30.04 billion, up 5.6%. Mastercard Credit $ 227.00 7.0% $ 216.89 6.6% $ 10.11 14.2% 2.46 9.5% Visa cards generated American Express Credit $ 190.20 –2.7% $ 188.75 –2.7% $ 1.45 2.1% 1.40 0.7% $492.09 billion in credit card purchase volume, up 3.9%. Discover Credit $ 37.47 3.0% $ 33.99 3.3% $ 3.49 0.0% 0.65 6.6% Mastercard purchase volume CREDIT CARD TOTALS $ 961.75 3.1% $ 931.72 3.1% $ 30.04 5.6% 10.47 5.3% on credit cards was $216.89 Visa Debit & Prepaid $ 616.41 5.7% $ 491.78 7.6% $ 124.63 –1.1% 11.68 3.6% billion, up 6.6%. American Express at $188.75 billion fell Mastercard Debit & Prepaid $ 251.49 5.5% $ 202.51 7.5% $ 48.98 –2.0% 4.89 5.2% 2.7%, and Discover at $33.99 DEBIT CARD TOTALS $ 867.90 5.7% $ 694.29 7.6% $ 173.61 –1.3% 16.56 4.1% billion increased 3.3%. CREDIT & DEBIT TOTALS $ 1,829.65 4.3% $1,626.01 4.9% $ 203.65 –0.3% 27.03 4.5% Cash accounted for 3.12% of total credit card volume, Visa Totals $ 1,123.49 4.9% $ 983.87 5.7% $ 139.62 –0.7% 17.63 3.9% up from 3.05% in the first Mastercard Totals $ 478.49 6.2% $ 419.40 7.0% $ 59.09 0.5% 7.35 6.6% quarter of 2019. V&MC TOTALS $ 1,601.98 5.3% $1,403.27 6.1% $ 198.71 –0.4% 24.98 4.7% Combined purchase and cash volume on Visa and ncludes all consumer, small business, and commercial credit, debit, and prepaid cards. American Epress includes business from third-party issuers. Figures include PIN-based debit card fi gures for Visa (Interlink) and Mastercard to Mastercard debit and prepaid match their reporting. © 2020 The Nilson Report cards plus Visa Direct and > see p. 6

© 2020 HSN Consultants, Inc. THE NILSON REPORT MAY 2020 / ISSUE 1175 / THE NILSON REPORT 5 First Quarter Card Results in the U.S. from page 5... Mastercard Send volume reached Of all card transactions at share decreased 39 basis points $694.29 billion, up 7.6%. Visa merchants, credit cards accounted over the first quarter of 2019. payment volume (including for 38.73%, up from 38.46% a year Mastercard’s market share of Visa Direct) credit card purchase transactions on debit and Credit card purchase volume of was 23.54%, up 91 basis points. prepaid cards $931.72 bil. increased 3.1%. American Express held a 13.38% increased 7.6%. market share of all credit card Mastercard payment transactions, down 60 debit and prepaid card payment earlier. Transactions on Visa cards basis points. Discover held a 6.16% volume (including Mastercard accounted for 56.92% of all credit share, up 8 basis points. Send) grew 7.5%. card transactions. Visa’s market Prior issue: 1157

Global Payments Gets Truist Credit Card Processing from page 1... SunTrust. Outstanding credit card receivables at a revenue-sharing alliance. Tsys Merchant Services Truist exceeded $5.64 billion at year-end 2019. The point-of-sale terminal processing is wholesaled Truist Visa/Mastercard credit card portfolio ranks by BB&T. 16th largest in the U.S. Fiserv (First Data) provides debit card account processing services for SunTrust cards. Tsys handles that function for BB&T. When combined, Truist is the fifth largest debit card issuer in the U.S. Its more than 8.8 million Visa and Mastercard cards generated over $46 billion in purchase volume in 2019. Conversion of BB&T’s credit card portfolio, which Brad Strock is Executive VP, Card and Direct to Consumer is almost entirely comprised of Visa cards, will occur Lending at Truist in Wilson, North Carolina, bstrock@ in the 4th quarter of 2021. Tsys will begin processing bbandt.com, www.truist.com. the accounts in 2022. In the meantime, accounts that operate under the BB&T name will continue to be The credit card portfolio ranks processed by FIS. Tsys already handles card account 16th largest in the U.S. processing for SunTrust’s consumer and commercial credit card portfolios. When combined, the Truist credit card business includes 3.8 million Visa and Gaylon Jowers is Senior Executive VP, Global Payments Mastercard accounts. and President, Tsys Issuer Solutions in Columbus, Truist owns two merchant acquiring processing Georgia, [email protected], www.tsys.com. portfolios. Currently, Fiserv (First Data) handles merchant account processing for SunTrust as part of Prior issues: 1171, 1170

Adflex B2B Digital Payment Processing from page 1 The company was a pioneer Adflex, which processed over include Level 3 data as well as in providing services to large $4.00 billion in payments last travel hand-off data sent directly to corporations with support for Visa, year, also supports push payments card issuers. Mastercard, and American Express (straight-through processing) The Adflex platform, which is purchasing card products. Today, from suppliers directly from an PCI-DSS v3.2.1 certified, supports Adflex is increasingly using virtual ERP system using commercial partial settlements and refunds cards preloaded with invoice credit lines. It helps buyers by and recurring payments. Users can information to replace purchasing onboarding suppliers to accept request real-time analytics as well card transactions. card payments. Transactions as tokens for card transactions.

6 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive Adflex offers a virtual terminal with web Global Payments, and American Express. Elavon application. Merchants can upload files for Adflex to recently signed a Europe-wide partnership with process. The Adflex. Mastercard has selected Adflex as a partner in Adflex card Europe to test its Track Business Payment Service. payment API Adflex is an Amazon Web Services partner. It integrates into is also building the capability to offer Google Low a merchant’s Code, which utilizes a visual approach to application ERP system development. Developers with little experience can or payment use a graphical user interface with drag-and-drop platform. The company is fully integrated with SAP components and model-driven logic to create web and and offers customers worldwide access to merchant mobile applications. acquiring services. Pat Bermingham is CEO at Adflex in London, U.K., patb@ Customers include Barclaycard, HSBC, Visa, BNP adflex.co.uk, www.adflex.co.uk. Paribas, Citi, Bank of America, Fiserv (First Data),

Top 45 Merchant Acquirers in Europe from page 1... general purpose debit and credit Top Acquirers in urope card transactions they handled in 2019. In both charts, purchase Ranked by Transactions (Bil.) Ranked by Purchase Volume (Bil.) transactions counted include in- 1. Sberbank 1 20.1 1. Worldpay 0.2 store, online, and mobile (web and in-app). 2. Worldpay 9. 2. Barclays .2 The chart on this page ranks 2 3. Barclays . 3. Nets 21.10 Europe’s 20 largest merchant 4. J.P. Morgan .2 4. Worldline 3 200. acquirers by purchase volume 5. Nets 2 .2 5. Sberbank 1 1.2 (spending for goods and services) and purchase transactions. The 6. Credit Agricole .9 6. Credit Mutuel 12.9 chart on page 12 ranks the 25 3 7. Worldline . 7. Credit Agricole 1.2 largest acquirers based on online 8. Credit Mutuel . 8. Global Payments 10 12. and mobile purchase transactions. 9. Swedbank .2 9. Elavon 12.12 Global brand and domestic-only cards are combined on both charts. 10. Adyen 4 .01 10. Payone 5 12.2 Of the eight domestic-only 11. Elavon 2.2 11. J.P. Morgan 122.2 general purpose debit and credit 12. Payone 5 2.9 12. Adyen 4 11.12 card brands in Europe identified 13. Evo Payments Int’l 5 2.9 13. Nexi Payments 8 112. by the acquirers listed here, the four largest based on purchase 14. BPCE 2.2 14. BPCE 10.21 transactions were Mir, girocard, 6 15. VTB Bank 2.2 15. BNP Paribas 102. Bancontact, and Pagobancomat. 16. BNP Paribas 2.1 16. Societe Generale 7 9. In the table on pages 8 and 17. Societe Generale 7 1. 17. Lloyds Bank Cardnet 9.09 9, only Visa and Mastercard transactions are counted. That 19. Nexi Payments 8 1. 18. Intesa Sanpaolo 8 .0 chart does not include American 18. 9 1.0 19. .00 Comercia Global Swedbank Express, Diners Club, JCB, 20. Intesa Sanpaolo 8 1. 20. Comercia Global 9 .99 UnionPay, or domestic-only cards. ncludes all card brands Mastercard, Visa, American Epress, iners Club, JCB, UnionPay, and domestic general Those 45 acquirers processed purpose credit and debit cards. 1 Includes PRO100 and Mir figures. 2 Includes Dankort and girocard figures. 3 ncludes 94.50 billion (up 19.5%) 4 5 Bancontact and girocard figures. Estimate. Includes unidentified brand of domestic debit and credit figures. ncludes Mastercard and Visa card girocard figures. 6 Includes Mir figures. 7 Includes Cartes Bancaires figures. 8 Includes Pagobancomat figures. 9 ncludes Multibanco figures. 10 Estimate. oes not include the UC ussia business, the Comercia lobal Payments oint venture transactions in 2019 from 11.7 in pain, or the oint venture in Central and Eastern Europe involving lobal Payments, Caia Bank, and Erste roup. million active merchant outlets. © 2020 The Nilson Report > see p. 8

© 2020 HSN Consultants, Inc. THE NILSON REPORT MAY 2020 / ISSUE 1175 / THE NILSON REPORT 7 Top 45 Merchant Acquirers in Europe from page 7 in Central and Eastern Europe involving Global The 45 largest acquirers handled 315.3 million (up Mastercard and Visa purchase volume combined was Sberbank remained Europe’s largest Mastercard/ Payments, CaixaBank, and Erste Group moved to 11.1%) transactions from American Express, Diners $3.415 trillion. Visa merchant acquirer, a position it has held since 43rd from 45th. Club, Discover, JCB, and UnionPay credit cards last Of the 45 largest merchant acquirers in Europe, 27 2016. Sberbank dominates acquiring in Russia, where Tinkoff Bank made the Top 45 ranking for the year. Those payments were valued at $24.79 billion. handled more than 1 billion Mastercard and Visa card it is over 8 times larger than its nearest competitor. first time and took the J.P. Morgan Merchant payments last year. That group handled a combined J.P. Morgan Merchant Services pulled ahead of 44th place. 27 acquirers processed 1+ bil. Services acquired 34.7% 89% of the purchase transactions and 88% of the Credit Agricole and Credit Mutuel to become Europe’s The 45 largest acquirers of that business. Mastercard/Visa transactions. purchase volume. 4th largest Mastercard/Visa acquirer in 2019. handled 18.11 billion (up Russia-based Mir led Mastercard and Visa purchase volume and VTB Bank moved up to 15th largest in 2019, up 44.4%) web-based (online Europe’s domestic-only transactions included in the web-based column from 17th in 2018. UniCredit moved to 25th largest, and mobile) transactions in 2019 valued at $975.24 debit and credit brands with 4.86 billion transactions in the chart below are the online and mobile up from 26th. Gazprombank moved up to 30th billion. J.P. Morgan Merchant Services held a 24.9% handled by acquirers listed here. In 2019, Sberbank business of those acquirers. Web-based is a subset from 33rd. Payone, owned by Ingenico since the first market share of all web-based transactions among the acquired 4.37 billion Mir transactions. Another 494.4 of the Mastercard/Visa column to the left side of quarter of 2019, moved to 32nd from 38th. top 45 acquirers in Europe. Adyen’s share was 14.9%, million Mir transactions were acquired collectively those figures. Santander Espana Merchant Services moved up to Worldpay’s share was 14.4%, Barclay’s share was 38th from 39th. Global Payments, the joint venture 6.3%, and Sberbank held a 6.0% share. > see p. 12

Largest Merchant Acquirers in Europe 2019 Ranked by Mastercard/Visa Transactions

Mastercard/Visa 1 Web-Based 2 Active Mastercard/Visa 1 Web-Based 2 Active Rank Transactions Volume Transactions Volume Merchant POS Rank Transactions Volume Transactions Volume Merchant POS ‘19 ‘18 Company, Headquarters (mil.) Chg. (mil.) Chg (mil.) (mil.) Outlets Terminals ‘19 ‘18 Company, Headquarters (mil.) Chg. (mil.) Chg (mil.) (mil.) Outlets Terminals 1 1 Sberbank, Russia 3 16,238.4 35% $ 151,930.4 24% 1,090.9 $ 12,148.9 1,339,960 2,101,761 23 23 First Data Polska, Poland 1,131.1 16% $ 15,641.1 14% 16.1 $ 331.6 129,062 165,060 2 2 Worldpay, United Kingdom 9,652.7 11% $ 402,887.8 4% 2,603.5 $ 156,383.6 414,759 1,974,682 24 21 Lloyds Bank Cardnet MS, U.K. 17 1,109.8 3% $ 89,010.3 5% 170.0 $ 32,882.7 98,732 67,078 3 3 Barclays, United Kingdom 7,343.3 5% $ 373,414.2 9% 1,144.4 $ 171,678.5 114,056 172,020 25 26 UniCredit, Italy 18 1,082.5 20% $ 45,686.4 12% 35.9 $ 2,146.9 352,495 440,619 4 6 J.P. Morgan Merchant Services, Ireland 4,450.5 24% $ 113,684.9 17% 4,499.3 $ 111,324.4 — — 26 24 Yapi Kredi Bank, Turkey 19 1,071.9 11% $ 31,501.2 15% 114.9 $ 5,413.8 358,746 708,989 5 4 Credit Agricole, France 3,936.9 9% $ 175,553.9 7% 344.0 $ 19,503.4 348,397 458,020 27 27 AIB Merchant Services, Ireland 20 1,032.7 24% $ 55,760.9 15% 554.3 $ 31,991.6 84,994 41,229 6 5 Credit Mutuel, France 3,862.5 7% $ 182,673.4 6% 254.9 $ 28,644.4 294,293 360,857 28 25 T. Isbank, Turkey 21 993.2 5% $ 28,344.7 15% 145.2 $ 9,609.9 351,893 489,324 7 7 Swedbank, Sweden 4 3,246.2 4% $ 87,004.3 6% 124.4 $ 5,587.2 104,250 200,324 29 28 Banco de Sabadell, Spain 796.6 9% $ 39,360.4 19% 63.9 $ 4,621.3 309,438 330,551 8 8 Nets, Denmark 5 2,899.9 28% $ 143,892.7 75% 426.2 $ 29,749.5 381,100 808,080 30 33 Gazprombank, Russia 22 782.1 49% $ 10,357.6 33% 146.1 $ 3,633.0 39,357 101,134 9 9 Elavon, Ireland 2,816.6 27% $ 123,899.7 12% 589.8 $ 47,946.1 665,475 389,848 31 30 BBVA, Spain 719.6 9% $ 40,413.2 21% 86.4 $ 6,616.0 296,038 302,622 10 — Adyen, Netherlands 6 2,749.7 — $ 104,499.8 — 2,688.7 $ 102,169.7 — — 32 38 Payone, Germany 23 705.4 44% $ 41,736.2 29% 52.8 $ 3,730.4 346,251 435,960 11 10 Evo Payments International, Germany 7 2,476.2 19% $ 61,230.8 15% 36.0 $ 4,478.0 291,257 346,744 33 31 Akbank, Turkey 24 699.5 6% $ 21,181.0 17% 52.9 $ 2,298.2 412,231 551,075 12 11 Worldline, France 8 2,433.4 20% $ 133,985.9 14% 211.3 $ 17,044.7 486,837 666,230 34 29 Market Pay, France 25 690.6 -3% $ 32,950.3 -6% 10.0 $ 1,155.6 2,404 42,465 13 12 BPCE, France 2,260.0 12% $ 103,144.7 10% 123.0 $ 13,730.2 344,000 423,100 35 32 Handelsbanken, Sweden 26 615.1 8% $ 22,953.3 -1% 37.3 $ 2,465.0 31,319 49,245 14 13 BNP Paribas, France 2,136.0 16% $ 102,758.3 13% 406.0 $ 25,534.2 136,683 188,716 36 35 Bambora, Sweden 27 594.6 16% $ 24,957.9 15% 191.2 $ 11,341.7 70,503 67,080 15 17 VTB Bank, Russia 9 1,986.4 60% $ 22,649.3 -10% 306.1 $ 9,693.9 108,803 220,226 37 34 La Banque Postale, France 28 588.6 14% $ 24,275.9 15% 110.6 $ 8,422.4 59,020 145,012 16 14 Societe Generale, France 10 1,746.5 6% $ 89,345.0 6% 99.6 $ 11,422.3 151,002 261,603 38 39 Santander España MS, Spain 560.3 17% $ 24,767.0 12% 43.4 $ 3,201.4 176,533 259,802 17 15 Comercia Global Payments, Spain 11 1,642.2 13% $ 61,427.5 9% 101.1 $ 8,167.2 427,272 478,374 39 36 Unicre, Portugal 546.2 9% $ 22,392.3 6% 3.3 $ 257.4 84,765 110,925 18 16 Global Payments, United Kingdom 12 1,579.1 11% $ 126,875.1 10% 139.2 $ 23,864.8 192,519 517,487 40 40 Bankia, Spain 527.0 18% $ 22,768.0 10% 16.9 $ 1,652.4 164,560 170,327 19 18 Nexi Payments, Italy 13 1,393.0 15% $ 89,536.4 6% 48.0 $ 3,917.1 888,175 894,175 41 41 CSOB, Czech Republic 493.2 22% $ 11,601.7 10% 35.6 $ 1,271.2 67,794 108,819 20 19 Garanti Bank, Turkey 14 1,252.8 5% $ 32,877.6 15% 105.6 $ 5,745.8 551,475 665,355 42 42 BofA Merrill Lynch MS, U.K. 365.9 -3% $ 12,077.1 0% 359.9 $ 11,940.0 — — 21 20 Intesa Sanpaolo, Italy 15 1,161.7 3% $ 58,377.0 -6% 65.2 $ 4,309.5 324,998 555,793 43 45 Global Payments, Czech Republic 29 358.8 11% $ 12,224.6 16% 14.7 $ 729.2 88,359 45,497 22 22 Raiff eisen Bank (Group), Austria 16 1,141.8 13% $ 26,133.6 8% 76.0 $ 2,409.0 105,022 190,025 44 50 Tinkoff Bank, Russia 30 321.8 51% $ 11,934.9 61% 275.6 $ 11,622.1 45,164 48,427 31 Figures are net (gross minus chargebacks). 1 Mastercard and Visa credit, debit, and prepaid cards including Maestro and Electron. Change in volume is based 45 43 Russian Standard Bank, Russia 312.5 -15% $ 5,754.7 9% 85.2 $ 2,455.1 416,118 667,320 on local currency. Web-based fi gures include all card brands (Mastercard, Visa, American Express, Diners Club, JCB, UnionPay, and domestic general purpose Banks Division. Pagobancomat figures (462.4 mil., $25.78 bil.) are not included. 1 ncludes Austria, ermany, ussia, Ukraine, Belarus, omania, Bulgaria, credit and debit cards). PRO100 and Mir figures (4.37 bil., $34.75 bil.) are not included. ncludes Norway, enmark, Estonia, inland, atvia, and ithuania. lovakia, Cech epublic, Poland, Croatia, Bosnia, erbia, Kosovo, and Albania. 1 Joint venture between Lloyds Bank and First Data. 1 ncludes ermany, Austria, 5 Acquired Concardis. Dankort and girocard figures (1.51 bil., $72.15 bil.) are not included. Estimate. ncludes its pan-European operation in ermany including Poland, Russia, Croatia, Bulgaria, Romania, Ukraine, Hungary, Czech Republic, Slovakia, Slovenia, Bosnia, Serbia, and Ajerbaijan. Pagobancomat figures (194.8 branches in the U.K. and Ireland, eService in Poland and the Czech Republic, and Universalpay Entidad De Pago, S.L. in Spain. Girocard figures (10.8 mil., $897.5 mil., $11.12 bil.) are not included. 1 Troy figures (16.5 mil., $196.1 mil.) are not included. 0 Joint venture between Allied Irish Bank and First Data. 1 Troy figures 10 mil.) are not included. Bancontact and Girocard figures (1.44 bil., $64.32 bil.) are not included. Mir figures (256.1 mil., $4.18 bil.) are not included. Cartes (15.0 mil., $1.16 bil.) are not included. Mir figures (147.9 mil., $1.56 bil.) are not included. Payone, owned by Ingenico since the fi rst quarter of 2019. Girocard 11 Bancaires figures (0.7 mil., $27.3 mil.) are not included. Joint venture between CaixaBank and Global Payments. Also includes its acquiring business in Portugal. figures (1.79 bil., $81.33 bil.) are not included. Troy figures (5.6 mil., $59.1 mil.) are not included. 5 Cartes Bancaires figures (0.3 mil., $10.0 mil.) are not included. 1 Multibanco figures (55.9 mil., $2.31 bil.) are not included. Estimate. oes not include the UC ussia business, the Comercia lobal Payments oint venture ncludes acuiring in Norway, inland, and enmark. Owned by the ngenico roup. Cartes Bancaires figures (2.7 mil., $126.0 mil.) are not included. 1 in pain, or the oint venture in Central and Eastern Europe involving lobal Payments, CaiaBank, and Erste roup. Pagobancomat figures (345.4 mil., $22.90 Estimate. Joint venture in Central and Eastern Europe involving Global Payments, CaixaBank and Erste Group. 0 Mir figures (49.5 mil., $606.4 mil.) are not 1 15 bil.) are not included. Troy figures (30.3 mil., $572.3 mil.) are not included. ncludes countries in Europe and the ntesa anpaolo nternational ubsidiary included. 1 Mir figures (41.0 mil., $411.2 mil.) are not included. © 2020 The Nilson Report

8 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive © 2020 HSN Consultants, Inc. THE NILSON REPORT MAY 2020 / ISSUE 1175 / THE NILSON REPORT 9 rest of the year...I want us to be Bridges in the U.S. city of pandemic by helping merchants Payment Industry’s Response to Covid-19—Part 3 able to handle as much as 50% Philadelphia resumed accepting move to ecommerce and curbside from page 1 occupancy in most locations by the cash for payment of tolls. The U.S. pickup with its Online Checkout Payment Cards Despite a January purchase account-to-account transfers to end of the year. But I want to be Department of Transportation function. Weekly gross payment A New York Federal Reserve agreement, Wex is attempting to charities. Cross-border payment clear that I don’t expect us to get took the unusual step of reiterating volume on the company’s online Bank study revealed household terminate its purchase of U.K.- platform Rapyd waived foreign anywhere near the 50% mark by its position on air travel refunds, store has grown 500% since the debt in the United States increased based B2B payment specialist exchange and processing fees the end of 2020…We are going to and a bill called the Cash Refunds launch of its curbside capability. 1.1% to $14.300 trillion in the Optal and Australia-based travel on the first $100,000 in total phase in the number of people in for Coronavirus Cancellations Act Square, heavily dependent on first quarter of 2020 despite a payment firm eNett. processing volume for new each location, starting slowly at as of 2020 was put forward by United brick-and-mortar stores, closed Q1 larger than expected $34-billion PSCU, a top provider of card businesses in the U.S., Brazil, low as 10% occupancy…we’ll have States Senators. with a loss of $106 million. Klarna seasonal decline in credit card account processing services to and Mexico. procedures for seating and moving reported U.S. customers initiated debt. The JPMorgan Chase credit unions in the U.S., reported In Canada, Mastercard’s around in each building to ensure 25% more transactions with CHINA Institute found that household that credit card spending is down RiskRecon unit responded to airlines in the week ended May 9 spending on Chase credit cards more than 20% in the states escalating criminal hacking by WeChat Pay will be than the prior week. fell 40% year over year by the hardest hit by Covid-19. However, extending a free cybersecurity U.K. The U.S. Department of distributing over $1.4 bil- end of March despite a frenzy debit card spending is up 8.5% in assessment service. Mobile Commerce found that April lion worth of government- of early spending on household those same states. PSCU said card- payment provider bKash, the Issuers offered payment retail sales were down 16.4% from essentials when the implications not-present (CNP) transactions holidays to 700,000 issued spending vouchers. March and down 21.6% from of stay-at-home orders became among its member credit unions customers in April. April 2019. Retail apparel took an U.S. apparent. Chase is the largest U.S. nationwide were up over 51%, Wex is attempting to terminate BANGLADESH especially large hit with an 89.3% credit card issuer ranked by credit while CNP counted for nearly 60% year-over-year decline. Retailers A Chase study found house- January purchase agreements bKash reported an card outstandings. of all purchase volume. for Optal (B2B payments) and J. Crew, Neiman Marcus, and Brazilian payment processor India’s government expanded hold spending on its cards fell $12-million surge JCPenney filed for bankruptcy eNett (travel payments). StoneCo laid off 1,300 employees, low-interest credit offered to the 40% YOY in March. in remittance funds. protection. All three have private roughly 20% of its workforce. country’s hard-hit agricultural Shopify reported a 62% label credit card programs. In Digital wallet provider PicPay sector through Kisan Credit increase in storefronts and Retail Shift its earnings call, Evo Payments surpassed 20 million customers Cards available from 10 regional, a 47% rise in revenue. social distancing…That means no ACI Worldwide documented reported recently dormant seven months ahead of cooperative, and public sector meetings in conference rooms and the rapid shift from spending in merchants are making and taking precoronavirus projections. Trade banks. The Reserve Bank of India no visitors or contractors in our brick-and-mortar stores to online payments again after 35% of its association UK Finance reported called for a moratorium on credit BRAZIL buildings…we’ll be enhancing our merchants. The company’s analysis customers ceased trading following that issuers in the U.K. offered card payments in April. cleaning protocols, making hand indicates that general retail the imposition of lockdown payment holidays to 700,000 In the United Kingdom, PicPay’s digital wallet reached sanitizers readily available, and ecommerce grew 209% year over orders. China’s National Bureau credit cardholders in the month K Wearables and its partner 20 million customers seven optimizing our air conditioning year in April, while gaming (126%) of Statistics reported retail sales of April. The association said Moorwand were overwhelmed months ahead of projections. systems…enhanced screening and and digital downloads (26%) also of consumer goods were down 27 million card accounts were by demand after they offered monitoring of everyone entering saw significant offered three months of interest- 300 rings with embedded our offices, including ways to increases. Retail ecommerce grew 209% free borrowing on the first $610 EMV-compliant contactless largest in Bangladesh, reported a measure temperatures.” Indian payment year over year in April. (£500) of overdrafts. Issuer payment technology to frontline $12-million surge in remittance platform provider Virgin Money UK suspended, workers in the National Health funds in April, up from $3 million Policy Simpl reported then reinstated, new purchases on Service (NHS). Payment card in March. The World Economic Forum a 30%-35% increase in in April by 16.2% year over year. manufacturers released a study recognizing the transactions on essential items. Tencent announced more than U.S. household debt increased Cardel, Nitecrest, Back to Work contributions of digital payment A Mastercard research report $1.4 billion worth of WeChat 1.1% to $14.300 trillion. and Allpay American Express’s CEO, technology during a pandemic on 12,500 consumers in Europe Pay Spending Vouchers will be partnered to Stephen Squeri, speaking to through the lens of China’s reported a 36% uptick in online distributed. Tencent’s first quarter produce protective employees via video, said, “We still accelerated adoption of digital spending on essentials, as well earnings of $15.2 billion were led more than 30,000 credit cards in visors for the NHS. Flatfair don’t know exactly when we will payments following the outbreak as a surge in spending on books, by its online gaming companies. the first week of May, seemingly introduced a software tool for start coming back (to the office) of SARS in 2003. In the United online entertainment, and The company’s fintech holdings, against prior guidance by the U.K.’s resolving rent disputes and but we expect it will take several States, a coalition was formed exercise equipment. which include WeChat Pay and Financial Conduct Authority. creation of payment plans between months in most locations…for the to encourage preservation of cash There was a 62% increase in a stake in Afterpay, were up 22% Visa, Mastercard, American residential leaseholders and most part our offices in the near payments. Members include the new online storefronts created year over year, but down 12% from Express, and Discover announced landlords. TrueLayer, provider of term will be alternative workspace Amusement and Music Operators on Shopify’s ecommerce the previous quarter. delays in implementing changes to APIs customers deploy to facilitate for people...In fact, if you can Association, the National Armored platform, while the company’s Q1 interchange and other merchant open banking, launched a fee- work from home effectively, you Car Association, and ATM revenue increased 47% year over Prior issues: 1174, 1173 fees until April 2021. free standalone app to initiate should plan on doing so for the manufacturer Diebold Nixdorf. year. Square responded to the

10 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive © 2020 HSN Consultants, Inc. THE NILSON REPORT MAY 2020 / ISSUE 1175 / THE NILSON REPORT 11 © 2020 HSN Consultants, Inc. THE NILSON REPORT All Rights Reserved. Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is strictly prohibited and may violate the intellectual property rights of HSN Consultants, Inc. dba The Nilson Report.

Top 45 Merchant Acquirers in Europe from page 9... by Gazprombank, Russian In Denmark and Germany, In Italy, Nexi Payments, Standard Bank, Tinkoff Bank, and Nets acquired 1.51 billion Dankort Intesa Sanpaolo, and UniCredit VTB Bank. and girocard transactions, which combined to acquire 1.00 billion In Belgium, Worldline are included due to its merger Pagobancomat transactions. acquired 1.44 billion with Concardis. In Germany, EVO Payments Bancontact transactions. and Payone with a majority market share combined to acquire 1.80 To 2 cuirers o eb Transactions billion girocard transactions. Garanti, Yapi Kredi Bank, eb Trans. T. Isbank, and Akbank acquired Acuirer Country Mil. Share of Its Total Transactions 67.5 million Troy transactions J.P. Morgan Ireland ,99 9. in Turkey. Adyen 1 Nether. 2,9 9.2 Domestic-only debit and credit card transactions processed by the Worldpay U.. 2,0 2.9 top 45 acquirers in Europe reached Barclays U.. 1,1 1. 11.01 billion in 2019, up 50.8% Sberbank Russia 1,091 . from the prior year, and generated Elavon Ireland 90 20.9 $336.14 billion in purchase volume. Figures for all acquirers AIB Mer. Services Ireland . that handled domestic-only debit Nets enmark 2 9. and credit cards are provided in BNP Paribas rance 0 19.0 the footnotes. Growth in domestic- BofA Merrill Lynch U.. 0 9. only card transactions exceeded growth in global brand cards for Credit Agricole rance . the third consecutive year. VTB Bank Russia 0 1. Transactions handled by Tinkoff Bank Russia 2 .2 processors iZettle, Klarna, and Credit Mutuel rance 2 . SumUp are counted at acquirers listed here. Worldline rance 211 . When Adyen and Wirecard act Bambora Sweden 191 2.1 as third-party processors, those Lloyds Bank Cardnet U.. 10 1. transactions are settled through Gazprombank Russia 1 1. acquirers listed here. Both also have licenses to acquire directly in T. Isbank Turkey 1 1. Europe. Adyen’s acquiring volumes Global Payments 1 U.. 19 . are listed here. Wirecard’s are not Swedbank Sweden 12 . because those volumes are too low BPCE rance 12 . to make the ranking. Alfa Bank Russia 11 9. Prior issues: 1153, 1132, 1110, Yapi Kredi Bank Turkey 11 10 . 1087, 1065 La Banque Postale rance 111 1.

Online and mobile (web and in-app.) 1Estimate. 2020 The Nilson Report

David Robertson, Publisher May 19, 2020

12 VISIT US ONLINE AT WWW.NILSONREPORT.COM Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive