November / December 2018

COVER STORY THE DEATH OF CARDS?

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PaymentsCARDS & MOBILE November / December 2018 Volume 10, Issue 6

I have a conundrum. Is it possible to get through Production Team this issue without mentioning Money 2020? Alexander Rolfe Editor-in-chief and publisher Tel (+44) 1263 711 800 Damn it! So easily fooled. Oh well, it would have been remiss not to mention the [email protected] Greatest Show on Earth especially as many of the PCM team dedicated themselves to the trip to Vegas and during the time they were there squeezed in 28 meetings – I think James Wood Editor this is some kind of record…or perhaps justification for the expenses. [email protected]

As with all our issues, we try to offer some analysis and insight into topics that Wendy Sanders Head of Business Development deserve more column inches. Alternatively we try to tackle a new subject that is Tel (+44) 1263 711 801 perhaps under-represented in some form or another. November/December is no [email protected] different. First, we had the on-going War on Cash. Now, everyone wants to predict Gemma Rolfe the death of cards. In this article, we see that the major card networks still dominate General Manager the modern payments landscape and have been a driver of global commerce over Tel (+44) 1263 711 800 the last fifty years. Recent statistics confirm this dominance – but there is a growing [email protected] trend towards the disintermediation of both the payment networks and traditional Gemma Haywood banks. Our cover story looks at recent developments and whether they represent the Subscriptions and General beginning of the end for the plastic card. Tel (+44) 1263 711 800 [email protected]

AI is taking centre stage on a global level and every forward-thinking government Adam Unsworth is keeping a very wary eye on the technology, not only with a view on how it can be Graphic Design Tel (+44) 7932905744 harnessed but also to make sure that concerns on an electoral level are allayed. The [email protected] payments industry has a keen view on the abilities of AI — but is it really as useful as some people claim, or are we in the middle of a hype cycle? Printing Micropress Printers

Finally, and perhaps happily so for the Millennials, the new marketing focus is zoomed right in on Gen Z. But who are these phantom beasts and what do they want? They Editorial Advisory Board have never known a world without mobile phones and tablet computers, have their own unique expectations, and a different attitude to any generation before them, but John Berns what does Generation "Z" mean for the payments business? Managing Partner, Accourt

Sylvie Boucheron-Saunier SVP Financial Institutions, North America & Europe, ACI

Robert Courtneidge CEO, Moorwand

Alexander Rolfe, June Felix President – Europe, Verifone

Denise Gee AlexRolfe Director, Magna Carta Simon Hardie Editor-in-chief and publisher, Director, Magna Carta Payments Cards & Mobile

All rights reserved. No part of the publication may be reproduced or transmitted in any form without the publisher’s prior consent. While every care is taken to provide accurate information, the publisher cannot accept liability for errors or omissions, no matter how caused. Payments Cards and Mobile The Stable, Hall Yard, Kelling © PaymentsCM LLP 2018 Holt, NR25 7EW, United Kingdom Payment Cards and Mobile™ is owned and published by PaymentsCM LLP ISSN 1759-829X +44 1263 711800 / paymentscm.com contents

06 - 07 PAYMENTS NEWS EXPERTS PREDICT BLOCKCHAIN 26-27 MOBILE PAYMENTS PAYMENTS BY 2025

NEWS IN BRIEF Speaking at the recent Money2020 UPI LEADS VIBRANT INDIAN MOBILE WALLET All the latest news from the past 60 days. conference in Las Vegas, a number of industry RANKINGS experts predicted that public concern over Unified Payments Interface (UPI), a system 08 - 13 CARD NOTES recent data security breaches would which allows for instant bank-to-bank fund lead to the creation of a comprehensive transfers is gradually taking the lead over the EMERGING MARKETS STELLAR GROWTH IN blockchain-based payments network by 2025. vibrant mobile wallet market in India. NON-CASH PAYMENTS The World Payments Report 2018 from 24 - 25 ISSUING & ACQUIRING YOYO STRIKES $30 MILLION PARTNERSHIP Capgemini and BNP Paribas predicts noncash AGREEMENT FROM HARD YAKA transactions will accelerate over the next CONTACTLESS CARDS ACCOUNT FOR 50 Yoyo Wallet has secured $30 million in a five years. PERCENT OF ALL CARDS partnership agreement from Twitter and Contactless issuance is set Coinbase investor Hard Yaka. PAYMENTS INDUSTRY SET TO BE WORTH to hit 1.5 billion units in 2018. $110 TRILLION ALTERNATIVE PAYMENTS ESSENTIAL AT New research from sharespost.com SWEDEN’S CENTRAL BANK PREPARES TO POS IN ASIA PACIFIC describes the global payments industry as LAUNCH DIGITAL E-KRONA Consumer desire for convenience is reshaping a business opportunity worth $110 trillion. Sweden’s central bank is preparing to launch a the sector, where retailers are scrambling cryptocurrency, according to reports. to offer a seamless shopping experience. BANKS MUST CHANGE OR MISS OUT, ACCENTURE WARNS UNIONPAY STAYS ON TOP AS THE WORLD’S ASIA OUTPACES WEST IN TERMS OF MOBILE Accenture has warned traditional banks that LARGEST SCHEME WALLET ADOPTION new entrants have arrived as significant New research reveals that the number of Mobile wallet adoption in Asian markets like players in banking, and that the industry is payment cards in circulation worldwide China, India and Taiwan is much higher than now seeing revenues shift towards these reached 15 billion at the end of 2017. their Western counterparts such as the US, the new players. UK and Germany. MASTERCARD, AMEX AND WORLDPAY JOIN FIS REPORT TRACKS GLOBAL TREND TO INAUGURAL CYBER WAR GAME 29 CONTACTLESS FASTER PAYMENTS Mastercard, WorldPay and AmEx were among The 2018 edition of FIS’s annual Flavour of the payment processors who took part in a THE CASHLESS SOCIETY – MAINTAINING Fast report has revealed a world in full ‘cyber war game’, in a bid to test their systems TRUST IN PAYMENTS migration towards faster payments. amid rising IT security threats. Lack of trust in the payment system remains a fundamental obstacle to a cashless society.

COVER STORY P14-16 THE DEATH OF CARDS?

4 payments cards & mobile magazine - november / december 2018 www.paymentscm.com contents

31 E-COMMERCE DEUTSCHE BANK DIGITAL CHEQUE OPEN BANKING EXPO PROCESSING PLATFORM 27 November, London www.openbankingexpo.com RETAILERS SET TO LAUNCH VOICE Deutsche Bank is to migrate its cheque COMMERCE - ARE WE READY? processing operations to a digital, cloud-based TRUSTECH platform run by India's HCL technologies. Argos has become the first retailer in the UK to 27-29 November, Cannes offer a voice commerce and search shopping www.trustech-event.com service via the Google Assistant platform. 33 CONTRACTS BRANCH TRANSFORMATION PAYMENT TECH BRANDS CONNECT WITH UK INGENICO AND NATIXIS EYE STRATEGIC 27-28 November, London CONSUMERS MERGER www.rbrlondon.com/conferences/bt/ Half of the most significant brands in the UK The French bank Natixis is reported to be are associated with payment technologies, reviewing a potential deal with Ingenico as GSMA MOBILE 360 LATIN AMERICA 4-6 December, Buenos Aires according to an index recently launched by the companies look to expand in the rapidly www.mobile360series.com/latin-america/ Opinium Research. consolidating payments sector.

FDATA 2ND ANNUAL GLOBAL NCR STEPS INTO PAYMENTS WITH JETPAY 32 PRODUCTS Open Banking Summit ACQUISITION 6-7 December, Edinburgh NCR announced a definitive agreement to BIOMETRIC CARDS FOR LIMITLESS Fdata.global/summit/ CONTACTLESS PAYMENTS. acquire US based JetPay, a provider of end-to- Societe Generale is trialling a card end payment processing. PARIS FINTECH FORUM with a built-in fingerprint reader that enables 29-30 January, Paris users to make contactless payments of TRUSTLY PARTNERS WITH LARGEST www.fintechforum.com unlimited value. EUROPEAN P2P MARKETPLACE MINTOS Trustly has partnered with Mintos, a global MERCHANT PAYMENTS ECOSYSTEM 19-21 February, Berlin “DATA BLEACH” TECH PROTECTS online marketplace for loans which provides merchantpaymentsecosystem.com CUSTOMER PAYMENTS retail investors with a way to invest in loans from around the world. Elavon announced its Secured Point-to- MEFTECH 2019 Point Encryption (P2PE) solution has been 38 CONFERENCES 25-26 February, Riyadh successfully validated by the Payment Card www.meftechksa.com Industry (PCI) Security Standards Council. MONEYLIVE SUMMIT 2018 MONEYLIVE SPRING 2019 26-27 November, London HITACHI AND SBI LAUNCH NEW INDIAN 11-13 March, Madrid www.marketforce.eu.com/money-live/ PAYMENTS PLATFORM new.marketforce.eu.com/money-live/ event/summit/ State , with more than 420 events/spring million customers and 600,000 POS terminals GSMA MOBILE 360 MENA is the largest merchant acquirer in the Indian 26-27 November, Dubai market in terms of terminals has linked a JV www.mobile360series.com/MENA/ with Hitachi for a new payments platform.

FEATURE P22-23 FEATURE P18-20 THIS DIGITAL LIFE: PAYMENTS AI’S ON THE PRIZE AND GENERATION “Z”

www.paymentscm.com payments cards & mobile magazine - november / december 2018 5 news in brief global payments news from the last 60 days

DIEBOLD NIXDORF has partnered with leading have been used by the fintech to originate FINASTRA WILL launch its Fusion Global technology providers, including Google and nearly $5 billion in loans to more than 600,000 PAYplus solution for tier three and four Mastercard, to create Vynamic Engage and people. The platform has been customised to financial institutions (FIs) in the EU and US Vynamic Demand, two software products HSBC's specifications, including the bank's from Q2 2019. This product allows smaller FIs aimed at accelerating convergence between proprietary risk models. Customers will be to the benefits of the cloud without the digital payments, online customer behaviour able to complete the application process cost and infrastructure requirements which and retail advertising. Retailers increasingly online and, if approved, get the funds - up to have previously barred their entry. Based acknowledge that the consumer journey now $30,000 with terms of up to five years - the on Azure, Finastra’s offering will starts at home or remotely on mobile, with next day. Pablo Sanchez, regional head, retail enable central updates, ensuring all users pre-purchase advertising needing to keep banking and wealth management, US and benefit from the latest changes or new product pace with content consumers review on a daily Canada, HSBC, says: "By adding personal functionalities immediately, including SWIFT basis. Diebold Nixdorf’s new products enable loans to our expanding product suite, we’re and clearing scheme updates. Banks will be retailers to combine customer browsing and meeting the needs of today’s consumers able to get up and running in just a few months shopping information to offer highly-targeted who want a safe, fast and easy way to borrow with standardized pricing and onboarding promotions and incentives linked directly to money online." processes. Sagive Greenspan, SVP, General consumer’s interests, shopping habits and Manager, Payments at Finastra, said: “We will geo-location data. enable small and mid-sized banks to compete in the cloud environment with this hosted payments solution.”

AEVI ANNOUNCED its new product, AppFlow, at the recent Money2020 conference in Las will be working with Visa Vegas. Merchants are looking for applications and Mastercard to advance the EMV Secure that transform the consumer checkout Remote Commerce (SRC) specification, experience, but often find these apps are not EVERCOMPLIANT HAS launched eKYC which allows card payments to be made in interoperable, resulting in costly and intensive Discovery, a tool that addresses potential gaps a consistent way across websites, mobile integration efforts. AppFlow aims to remove in Know Your Customer (KYC) processes that apps and other digital platforms. With SRC, this pain by standardising and automating could leave financial institutions exposed to merchants will be able to offer a common the integration and interoperability of apps criminal activity. EverCompliant claims to have checkout process on their websites in the in an open environment. The company says used its AI-powered technology to identify form of a payment button that would deliver its AppFlow software development kit more than one million sites that appear to be a familiar experience to the consumer and the will “deliver on the promise of SmartPOS engaged in improper and potentially illegal merchant. This button eliminates the need systems to offer , flexibility and activity with its AI technology. EverCompliant for consumers to repeatedly type in their card strategic value to merchants.” Developers says its eKYC Discovery product allows data and billing information when checking and acquirers will be able to provide a better financial institutions and government officials out on a website or mobile app, and unifies the experience for merchants and consumers by to “gain deeper insight into a corporate way card data is securely stored and handled. delivering apps and services that work with customer’s complete profile by analysing the other apps available on AEVI’s marketplace Internet for hidden connections to sanctioned and on AEVI-enabled third-party devices, countries, illegal businesses and risky ensuring developers do not have to rework business associations.” their integrations.

HSBC'S US arm is rolling out technology from Avant to move into the online personal lending market. HSBC is tapping Avant's Amount technology and digital capabilities, which

6 payments cards & mobile magazine - november / december 2018 www.paymentscm.com news in brief

FINN AI, the provider of smart “ChatBot” E-COMMERCE AND payments-focused digital services for banking, has closed a second currency Dash has integrated Uphold, a digital funding round for US$11 million and money platform, into its . This will announced the hire of enable Dash Wallet users to buy and sell Dash veteran Linda Wittich as Managing from the Dash Wallet itself, meaning users will Director, Global Sales & Strategic Account not have to use another app or cryptocurrency Tough decisions for Acquirers Management. The new funding will allow exchange for these transactions. This allows and PSPs in 2019. Finn AI to extend its core product to users to buy and sell Dash easily through the support additional banking and personal push of a few buttons. The Uphold feature is In 2018/2019 both merchants and payment providers face pressing, finance capabilities for existing customers currently available on Android wallets, and will strategic questions related to the including ATB Financial, Bank of Montreal, soon be available on iPhone. Ryan Taylor, CEO selection of payment methods they Commonwealth Bank, and Fidor Bank. The of Dash Core Group, commented: “Our goal of support that need to be answered. round was led by Yaletown Partners and Flying achieving widespread adoption can only be European regulatory initiatives like Fish Partners, and joined by new investors made possible by making the user experience PSD2 promoting instant payments, open banking, and data sharing have BDC Capital’s Women in Technology Fund as easy and intuitive as possible. With this created a new payment ecosystem. (WIT), and New York-based 1843 Capital, an wallet integration, users can acquire and use Acquirers and PSPs and card schemes, early stage technology venture firm. Lending Dash more easily than before.” threatened by the risk to be bypassed facilities were provided by Comerica Bank. by Third Party Providers, are looking now at the new business models and the roles they can play in this new ecosystem. However, the key questions remain, whether to continue playing in the traditional card acquiring space or to take full advantage of PSD2 by opting for PISP/AISP licensing? What can be done in-house, what in collaborating with partners for those opportunities that lie outside the expertise? BRITISH AIRWAYS has warned that another GEOSWIFT AND PAYEASE have jointly created 185,000 customers may have had their Other questions relate to the future a cross-border payment solution for China payment card details stolen in a data breach. direction of European Card Acquiring. which enables overseas merchants to settle The airline says that customers who made In 2018, cards continue to grow their funds more rapidly. The integrated solution reward bookings with payment cards between share of the European payments market carries out domestic collection in Renminbi April 21 and July 28 are at risk. It is contacting but the increasing scheme fees are (RMB). It also settles cross-border and the holders of 77,000 payment cards to warn eroding the benefits of interchange overseas mass payment in multiple major that their names, billing addresses, email regulation. British Retail Consortium warned in 2018 that scheme fees currencies across the world's top financial addresses, and card payment information, increased 39% in 2017. Various consumer centers. "Joining hands with Geoswift will including card number, expiry date and CVV, groups ask the European regulators to help us deepen and widen the reach of our have potentially been compromised. A further step in to protect merchants from hidden product offerings, leveraging their strong 108,000 have had the same information fee increases. The UK Payment Systems global banking relationships, comprehensive compromised minus the CVV. BA only Regulator (PSR) announced in July 2018 a market review into card-acquiring end-to-end compliance approach and discovered the breach while investigating a services, including a public consultation robust technology infrastructure across similar hack that was carried out later but whether there is effective competition the world. This joint solution will enable uncovered in early September. That attack and supply of card-acquiring services. us to better serve our clients to meet their was initially thought to have involved the card What’s next for Card Acquiring, Scheme growing needs for cross-border and overseas details of 380,000 customers, although BA fees and Regulation in Europe in 2019? settlement," said Frank Zhou, CEO of PayEase. has now revised this down to 244,000. The Future of card acquiring, fees evolution, company says that it has had no verified cases new merchant payments options, Open of fraud related to these incidents. API technology are among the key topics to be discussed at the MPE 2019, Europe’s Largest Merchant Payment Acceptance Conference in Berlin, February 19-21.

Request the Agenda & register at merchantpaymentsecosystem.com

www.paymentscm.com payments cards & mobile magazine - november / december 2018 7 card notes GLOBAL

EMERGING MARKETS STELLAR GROWTH IN NON-CASH PAYMENTS

The World Payments Report 2018 from Specifically, the US is predicted to lose successful strategies adopted in recent years Capgemini and BNP Paribas predicts non- leadership in non-cash transaction volumes that have led to demonstrable step-changes in cash transactions will accelerate over the next to China by 2021. the adoption of non-cash payments, including five years to reach a compound annual growth Looking ahead, the report predicts rapid Australia’s New Payments Platform (NPP), rate (CAGR) of 12.7 percent globally, with the growth in e-wallet transaction volumes. In which is driving non-cash transaction growth world’s emerging markets growing at 21.6 2016, e-wallet transactions accounted by enabling real-time payments with added- percent over the same period. for almost 8.6 percent of all non-cash value features. Likewise, Singapore has Emerging markets, which currently transactions, or 41.8 billion transactions established a Payments Council, developed a account for about one-third of global non- world-wide. According to Capgemini and BNP common QR code for payments, standardised cash transaction volumes, are expected to Paribas, significant opportunities lie ahead for POS terminals and mandated cashless contribute nearly half of global non-cash “Big Tech” (Google, Amazon, Facebook, Apple, payment for public transport, while Japan has volumes by 2021. Over the next five years, Alibaba and Tencent) if they are able to create focused its efforts on the introduction of more global emerging markets are predicted to grow further partnerships with established financial global standards to facilitate smoother cross- three times faster than the mature markets institutions. Alongside seeking to create border payments. of Western Europe and North America. In partnerships with technology companies, the Alongside more flexible and forward-looking particular, emerging Asian markets are report recommends that banks and insurance regulation, these collaborations and initiatives expected to grow at 28.8 percent CAGR, with companies should seek to emulate Big Tech’s led by governments can create demand and growth led by sustained digital innovation, the approach to the development of new products, facilitate supply in the market, leading to the adoption of mobile payments, and financial and invest in technology platforms in an effort acceleration of non-cash payments in markets inclusion initiatives modelled on successful to mirror their successes. around the world. Non-cash payments are strategies already launched by Australia and As regards future strategies for growth, of strategic importance to any country’s Singapore, among others. the authors reject the notion of a one- economy, the authors argue, because they Reviewing the recent past, the report found size-fits-all approach to evolving non-cash speed up the velocity of money, facilitate that global non-cash transaction volumes grew transactions business in markets around the international trade, reduce cost and help to by 10.1 percent in 2016 to reach 482.6 billion, world. However, the report notes a number of combat fraud and corruption. with emerging markets in Asia, Africa, the Middle East and Central Europe leading this NUMBER OF NON-CASH TRANSACTIONS IN THE TOP TEN MARKETS growth. Notably rapid growth was achieved (BILLIONS), 2015–2016 in India (33.2 percent), China (25.8 percent) Growth and South Africa (15.1 percent), figures which 6.9% 25.8% 1.6% 9.0% 9.9% 36.5% 10.4% 5.1% 2015–16 5.7% 11.1% compare favourably with more solid growth of 148.5 7.1 percent in mature markets such as Japan, 150 140.5 Australia, North America and Western Europe. 120

Globally, the leadership of mature markets is 90 74.5 in decline, but they still transact the majority 69.7 60 48.0 of non-cash payments, accounting for 66.3 38.1 28.7 29.1 30 22.7 24.8 21.1 23.2 17.3 15.3 percent of the world-wide total. Over the last 12.7 13.9 12.0 12.6 9.610.6 0 ten years, mature markets have lost around Non-Cash Transactions Billions US Euroone China Brail UK South Korea Russia Japan Canada Australia 20 percent of their market share to emerging 2015 2016 economies that are able to leapfrog the legacy Note: Some numbers may differ from data published in WPR 2017 due to previous year data updated at the source. payment systems of mature markets and Source: The World Payments Report 2018 adopt more advanced payment technologies.

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STRATEGY | DELIVERY | OPERATIONAL EFFECTIVENESS card notes GLOBAL

PAYMENTS INDUSTRY SET TO BE WORTH $110 TRILLION

New research from sharespost.com RISE OF THE MACHINES BANKS ARE LOSING M-COMMERCE describes the global payments industry as REVENUES a business opportunity worth $110 trillion, Prior to the advent of the internet, banks including domestic non-cash payments ($55 around the world enjoyed virtual exclusivity Over the next five years, Sharespost predict trillion), cross-border payments ($25 trillion), in payments, sharing revenues with the card mobile commerce transaction values to retail payments ($25 trillion) and smaller networks and processors as necessary. rise by 52 percent, with mobile becoming segments such as e-commerce ($2.8 trillion), Over the last decade, however, consumer more popular thanks to enhanced security remittances ($1 trillion) and bank-to-bank preference for mobile payments via messaging features such as biometrics and security payments ($1.3 trillion.) and e-commerce platforms has grown, chips embedded in mobile devices. According Sharespost’s research predicts revenues providing genuine competition for traditional to this report, most of this growth will come from payment transactions will break the banks and payment networks such as Visa from emerging Asian markets, specifically $2 trillion barrier by 2021, noting that they and Mastercard. Companies such as Ayden from companies such as , WeChat and will constitute 36 percent of total banking and Square are growing their revenues rapidly , which have already siphoned some revenues world-wide at that point – up from by partnering with technology firms in deals $40 billion in revenues away from the banking 27 percent in 2011. Sharespost identify the that bypass traditional banking networks and sector. Noting that these companies are leading actors in payments as being banks and deprive the traditional financial services sector adding deposit accounts to their functionality, the major card networks, with P2P and money of revenue. Although tech-based payment a development which “spells big trouble for transfer companies following them in terms of firms are smaller than the card giants, they banks who rely on consumer deposits to fund market capitalisation. are able to command higher shares of revenue their operations”, Sharespost speculate that Within this competitive environment, because they do not have to share revenues Facebook, Google, Apply and Samsung are however, this research highlights two with banks and other processors. all well-placed to bring these functionalities important trends – firstly, the rise of mobile Sharespost’s report sees blockchain as a to Western markets – and threaten banks’ and other non-traditional payment methods, significant potential disruptor for the payments traditional dominance in the payments sector which pose a threat to the traditional sector, noting that cross-border payments and across the developed world. dominance of banks and established payments remittances have already become significantly In regard to the threats the industry faces, networks; and secondly, the dynamic growth of cheaper and faster. Sharepost single out sharespost note that they expect to see the emerging Asian markets, which are also most cross-border blockchain start-ups Ripple and current wave of industry consolidation continue familiar and comfortable with non-traditional Circle as companies to watch, and see the as existing players use M&A to improve their payment technologies such as WeChat, AliPay developing legal and regulatory framework market share, or partner with emerging players and Tencent. around blockchain as a further spur to growth. to better serve their customers.

VISA AND MASTERCARD ARE THE TOP NON-BANK TRANSACTION VIA MOBILE DEVISES RISE STEADILY PAYMENT COMPANIES IN THE WORLD THROUGH TO 2012

Market Capitaliation, September 2017 Billions Global transaction value in the Mobile Payment segment Visa Inc. $ Millions Mastercard 22 2 American Express 8 PayPal FIS 2 22 Discover Cielo 52% First Data Global Payments 2 FEETCOR

Vantiv Worldpay Grouo Wirecard Square 8 22 Stripe 8 Western nion Edenred Ingenico United States Brail Worldline United Kingdom Germany 2 2 28 2 22 22 Germalto France The Netherlands Nets A/S NCR Denmark Source: Sharespost.com

10 payments cards & mobile magazine - november / december 2018 www.paymentscm.com GLOBAL card notes

BANKS MUST CHANGE OR MISS OUT, ACCENTURE WARNS

Accenture has warned traditional banks that percentage of new institutions found in the UK underline the dramatic shifts taking place: in new entrants have arrived as significant players (63 percent), Canada (47 percent), and Australia China, AliPay and WeChat collectively account in banking, and that the industry is now seeing (38 percent). for 94 percent of mobile payments. In the United revenues shift towards these new players. States, banks originated only three percent of According to Accenture’s new report, Beyond MORE THAN SKIN DEEP the new corporate credit extended in 2017, with North Star Gazing, “banks must act before it 97 percent coming from the capital markets or is too late, rotating quickly to new models to Traditional players will often try to pass new investment funds – both intermediated by new, compete in a fragmented, highly competitive entrants’ offerings off as being nothing more than technology-based credit platforms. and open landscape.” digital versions of their services, with attractive Using the example of Ant Financial in China, the Accenture cite specific examples of how Graphical User Interfaces, or “skins”, being added parent company of AliPay which has migrated the industry is changing in their efforts to to them. While accepting that this is sometimes successfully into retail banking accounts, encourage banks to move more quickly to the case, Accenture claim that this argument investment management and credit scoring, open, collaborative digital business models. ignores the extent of genuine, customer-led Accenture’s report urges banks to identify their Although some press comment has positioned innovation being offered by new entrants – such strategy based on an analysis of their current the EU’s second Payment Services Directive (PSD2) as a damp squib, Accenture note that it has allowed Deutsche Bank to create a THE MAGNITUDE OF STRUCTURE CHANGE VARIES BY COUNTRY partnership with airline group IATA that cuts

760 GLOBAL BANKING AND PAYMENTS 63% 140 350 CHANGE REVENUE IN U.S. AND EUROPE 60 47% 2005 2017 24,000 19,300 17% 1,035 2005 2017 35 2.4% 831 800 2.0% 2005 2017 2.0% 54 671 1.3%

1,000 777 8,400 5,300 6,800 4,300 20% 7% 8,000 6,150 19% 2005 2017 2005 2017 2005 2016 2005 2016 2005 2017 EUROPE B UNITED STATES $ B

New players Incumbent players % CAGR 230 234 1,800 1,400 38% 7% Source: Accenture 2005 2017 2005 2017 the card payment networks out of the payments loop, a development it describes as “highly Source: Accenture disruptive.” Accenture predicts that legislation Percent of new players similar to PSD2 will quickly follow in Hong Kong, as Transferwise’s service which pairs customers market. Having chosen a strategic end-point, Australia and Canada, with banks being forced with similar amounts of foreign currencies to or “new North Star”, banks should then exit any to share their customer account and transaction transer directly between them, thus effectively activities not relevant to this objective, undertake data through Application Programming avoiding exchanging any funds and the banking a rigorous exercise to identify new sources of Interfaces, or APIs. fees associated with foreign exchange. revenue consistent with these strategic objectives, Basing its views on an analysis of more Accenture also note shifts in revenue towards and build technology platforms that will help them than 20,000 banks world-wide, as well as new players as hard evidence of the move achieve their strategic objectives and win a share moves by “Big Tech” firms such as Google, away from traditional financial institutions. of the new revenues currently going to digital Apple, Facebook and Amazon (GAFA) into While some commentators cite the low volume market entrants and big tech players. payments and banking, Accenture says the of total revenues accruing to new players as Accenture see many major banking players rapid arrival of new players such as challenger proof that these market actors are over-hyped, moving9 towards what they call the "Digital banks, non-bank payment platforms and Accenture points out that new players have Relationship Manager" model, in which the credit intermediaries is transforming the captured between six and seven percent of total bank acts as a single platform for a wide variety landscape. Nearly 20 percent of the global revenues in Europe and between three and four of customer services which it curates, offering financial institutions now active have been percent in the US, seizing fully one-third of new seamless integration and security between their set up in the last ten years, with the highest revenues in Europe. Specific examples serve to products and services from other providers.

www.paymentscm.com payments cards & mobile magazine - november / december 2018 11 card notes GLOBAL

FIS REPORT TRACKS GLOBAL TREND TO FASTER PAYMENTS

The 2018 edition of FIS’s annual “Flavour of as having created “arguably the most evolved billion active users per month, these services Fast” report has revealed a world in full migration and sophisticated payments infrastructure threaten to bypass traditional financial services towards faster payments. As part of this annual in the world”, with its IPS service settling players altogether.” study, FIS produces a ranking of global faster some 2.8 million transactions per day in 2018, Looking to the mature markets of North payments initiatives, with a score of five awarded growth of 40 percent over transaction volumes America and Europe, FIS characterise to those innovations which feature non-standard experienced in 2017. these markets as being at the infrastructure applications and maximise customer value. development stage, with Europe’s SETA The lowest score of one is given to innovations ADD VALUE FOR EXPLOSIVE GROWTH system expanding from 15 markets at launch in which fulfil the basic criteria of faster November 2017 to include 34 markets across the payments: execution between parties in less FIS claims faster payments will really start to continent today. Where faster payments already than one minute. dominate the market when payments companies exist, in markets such as Portugal, Germany Emphasising the global nature of the faster provide value-added services on top of existing and the UK, payments firms are teaming up payments revolution, the company awards high fast payment rails, a phenomenon the company with financial institutions to deliver value-added scores to initiatives in countries as diverse as says is already in evidence in China. Uptake of services to customers, something FIS argues Kenya (PesaLink), Australia (New Payments faster payments has more than doubled over the will be crucial to the future success of faster Platform), Singapore (the Fast and Secure past twelve months ,from 12 million transactions payments globally. Transactions Initiative), and Denmark’s NETS processed per day to 25 million in that country. Examples of these value-added services RealTime 24/7 payments platform. Around the In common with other jurisdictions in Asia, in Europe include a partnership between world, the number of national faster payment China has seen a particular spike in the use of Germany’s Deutsche Bank and major European schemes has grown from fourteen four years embedded QR codes as a payment method. airlines and global travel body IATA, to improve ago to 40 today, with a further 30 countries Also in Asia, the FIS study notes the successful fraud detection by directly transferring expected to launch new faster payment schemes combination of social media apps with payment payments between customers and service in the year ahead. technologies by companies such as Bharat providers. This service bypasses card networks The only initiative to score a perfect five out (India), and WeChat and Alibaba in China. and the potential for fraud via on-line scamming of five is India’s new Immediate Payments As the FIS authors put it, “With enormous schemes which skim cardholder information Service (IPS). The FIS authors describe India client reach, sometimes approaching one during the transaction process.

IMMEDIATE PAYMENT SYSTEMS MAP – OUTLOOK

FPII MAP AND RANKING

SCORING

1 10 12 13 Meets most features maximizing customer value 11 14 8 15 Meets some features maximizing customer value 2 17 Meets most features enhancing customer value 19 18 16 Meets some features enhancing customer value 27 Meets base required features only 28 29 3 30 Under development 21 31 On the radar 22 33 32 23 24 34 35 26 36 4 37 38 7 5 25

39 6

40

1 The Real-Time Rail Canada 11 NETS RealTime 24/7 Denmark 21 Fawri+ Bahrain 31 Hong Kong 2 Real-Time Payments USA 12 Payments in Real Time Sweden 22 Saudi Arabia 32 PromptPay Thailand 3 Sistema de pagos electronicos interbancarios Mexico 13 Siirto Finland 23 GhIPSS / GIP Ghana 33 Intermediate Payment Service India 4 Colombia 14 Pan-European Payments SCT Inst 24 NIBSS Instant Payments Nigeria 34 Vietnam 5 Funds Transfer System Brazil 15 Express ELIXIR Poland 25 Real-Time Clearing South Africa 35 LankaPay Sri Lanka 6 Transferencias en Línea Chile 16 Iberpay Spain 26 PesaLink Kenya 36 Philippines InstaPay 7 Peru 17 Czech Republic 27 Zengin Japan 37 Retail Payments Platform Malaysia 8 UK Faster Payments, UK 18 Hungary 28 Internet Banking Payment System China 38 Fast and Secure Transfers Singapore 9 Greidsluveitan Iceland 19 Swiss Interbank Clearing Switzerland 29 Interbank Home/Firm Banking Network Korea 39 New Payments Platform Australia 10 Norway 20 Retail Payment System Turkey 30 CIFS Taiwan 40 New Zealand

12 payments cards & mobile magazine - november / december 2018 www.paymentscm.com GLOBAL card notes

EXPERTS PREDICT BLOCKCHAIN PAYMENTS BY 2025

Speaking at the recent Money2020 conference no longer willing to see their data monetised by that blockchain would have a significant impact in Las Vegas, a number of industry experts others for gain.” Chaum went on to predict that on payments by 2025. predicted that public concern over recent data unbanked populations in Asia, Africa and Latin However, not everyone is convinced. Speaking security breaches and rising fraud on existing America would be fertile markets for growth in at the same Money2020 event as Mr. Schwartz, payment systems would lead to the creation of blockchain payments, and that these markets Esther Pigg, SVP Product Strategy at FIS a comprehensive blockchain-based payments could “leapfrog” the developed world in the use Payments, argued that blockchain was only network by 2025. of cryptocurrencies and blockchain, much as now moving from the "proof of concept" stage Although blockchain payments have been they did in the introduction of mobile telephony. to pilot schemes. Furthermore, Ms. Pigg noted growing at a rate of around 20 percent per Noting the capacity of messaging services like that a pilot project by had found month in recent years according to research Twitter and WeChat to grow exponentially, Dr. no appreciable benefit in terms of cost or time from Pantera Capital, concerns remain over Chaum predicted that the world would see a savings. She also said that cryptocurrencies the speed at which these payments can be fully-operational payments service linked to already in operation had shown blockchain processed by “miners”, who verify transactions blockchain by 2025 – and said that concerns to be susceptible to criminal activity, and and add them to the public ledger in exchange over fraud and data security in existing systems that governments and regulators appeared for cryptocurrency. For some, blockchain’s would be a major driver in the development of to be adopting a "wait and see" approach to most significant impact has been in trading blockchain payments over the next six years. the further development of blockchain. For and settlement systems development, with A recent survey of payments professionals by these reasons, she argued, we would not see financial institutions’ investment in distributed the European Payments Council concurs with a blockchain-based payments system in the ledger (i.e. blockchain) trading and settlement this view: 90 percent of those surveyed believed foreseeable future. systems growing by 59 percent year-on-year between 2014 and 2019, according to a recent study by McKinsey and Company. BLOCKCHAIN CROSS-BORDER PAYMENTS VOLUME GROWTH 20% MOM ON AVERAGE During a debate about the future of 1,500 blockchain at Money2020, David Schwartz, Chief Technology Officer at Ripple, a 1,200 Industry Average blockchain payments company, argued that, 900 “we currently have a fragmented payments 600 system which predates the internet. Band- aids and fixes won’t work – we need to 300 Indexed Growth Rates effect a wholesale replacement of existing 0 payment systems.” Schwartz cited the fact Apr-15 May-15 June-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 that Amazon, Uber, and Facebook all use Source: Pantera Capital proprietary APIs to access payment networks, making integration an unnecessarily complex task in the current environment. INVESTMENT IN BLOCKCHAIN HAS ALREADY STARTED TO GAIN MOMENTUM According to Schwartz, blockchain will AND IS EXPECTED TO GROW AT A VERY HIGH PACE IN THE NEAR FUTURE do for payments what e-mail did to postal letters, or MP3 technology did for music: Estimated capital market spending, 2014 -2019e SD MM and with cross-border payments outpacing Investments in blockchain -related startups SD MM overall growth in payments, the world needs to adopt a ubiquitous standard for payments execution rapidly. 31% p.q. 2 David Chaum, the “father of digital cash”, 59% p.a. also spoke to PCM during Money2020 in Las 2 Vegas. Dr. Chaum recently announced the launch of Elixxir, a faster person-to-person 8 platform for payments and messaging based on blockchain, which he likens to “WeChat 2 with additional security.” During our interview, 2 2 2 2 2 2 e2 e2 e28 e2 Dr Chaum noted that, “the public has lost 2 2 2 2 confidence in the capacity of existing internet Source: McKinsey platforms to protect their privacy – and they are

www.paymentscm.com payments cards & mobile magazine - november / december 2018 13 COVER STORY THE DEATH OF CARDS?

by James Wood, PCM Editor

The major card networks dominate the modern payments landscape, and have been a driver of global commerce over the last fifty years. The last few years’ statistics confirm this dominance – but also show a growing trend towards the disintermediation of both the payment networks and traditional banks. PCM Editor James Wood asks whether recent developments represent the beginning of the end for the plastic card.

Following the mistaken publication of his American Express, jointly enjoy a market to challenge the payment card’s status as the obituary in the New York Times, American capitalisation higher than that of the next 20 world’s preferred way to pay. The changing humorist Mark Twain sent a telegram from biggest companies in the payments sector put face of the world economy, new payment London to the paper’s offices in New York together, according to recent research from methods and consumers’ changing attitudes with the words, “reports of my death have sharespost.com. to payments are all opening up opportunities been greatly exaggerated.” Likewise, is the As well as being accepted in more than 210 for alternative payments providers and demise of the card imminent, and will the countries, cards are the most commonly-used beginning to eat away at the revenues of world’s 15 billion payment cards (two per means of paying for digital transactions, either various traditional actors in the payments inhabitant of this planet) soon find themselves directly or via a connected wallet, accounting business – including the card networks and being recycled? for around 80 percent of digital commerce issuing and acquiring banks. On the face of it, the short answer is “No.” transaction volumes. By the end of 2017, Or at least, “Not yet.” According to statistics Mastercard alone accounted for more than $3 INNOVATION RISING IN THE from ABI Research, card issuance continues trillion of transactions across its consumer EAST – AND ELSEWHERE… to rise at between 5 percent and 10 percent and commercial credit and debit cards in both annually. Visa and Mastercard account for 75 physical, mobile and online environments. Two specific trends in the Asian market spell percent of all non-cash transaction volumes, However, behind this narrative of clear trouble for card-based payments. One is the and those two companies, together with dominance, a number of trends are emerging rise of alternative payment systems which

14 payments cards & mobile magazine - november / december 2018 www.paymentscm.com cover story

do not require links to a payment card, and security purposes, the new payment services market, will constitute 50 percent of the global another is the growing importance of Asia from Asia directly to bank accounts” – payments market. to the global economy, with the implication in other words, the card is taken out of the And Western economies are not standing still that innovations in these markets could be payment process. in the race to develop new payment options, replicated elsewhere in the world to provide This trend towards disintermediation of either: research from Accenture shows Asian consumers with access to their local the card in the payment process is also that almost one in five financial institutions payment options. seen in India’s Immediate Payment Service active in major Western markets in 2017 were It’s now commonplace to say that AliPay and (IPS), which has seen 40 percent growth founded after 2005, many of which are online- WeChatPay have transformed the payments in transaction numbers between 2017 and only and offer digital wallets linked directly to market in China. However, a brief overview 2018, and now processes some 2.8 million bank accounts – alongside the option of credit of the growth of mobile payments in that transactions per day. Indeed, the IPS has and debit cards. Whilst these new entrants country helps to show just how fast the proven so popular with consumers that, are small compared to established players, global payments market is changing, as well according to FIS’s Flavours of Fast report, “the Accenture’s research points out that they are as demonstrating the scale of the challenge numbers of transactions originating through growing faster than traditional banks, and facing traditional actors such as banks and these apps has adversely impacted traditional overperforming by grabbing higher shares of card networks. As of September 2018, WeChat credit and numbers.” new revenues in both Europe and the United Pay had 800 million users, and is accepted At the same time as Asian consumers are States relative to their size, perhaps as much in 300,000 physical locations across 40 increasingly opting for mobile Commerce as 33 percent of total new banking revenues countries and 13 currencies. If anything, AliPay applications that do not engage with card in Europe. has been even more successful, claiming networks – including the use of fixed QR To the new digital-only entrants, one can add 54 percent of the Chinese m-Commerce codes, as promoted by the government of the explosive growth of mobile as a payment market. Whilst this success is by no means Singapore, among others — so emerging on the same scale as Visa and Mastercard’s Asia’s share of the global payments market

210 countries and 35.9 million acceptance is increasing. Figures released in September BANKING AND PAYMENTS locations, WeChatPay has achieved this reach 2018 by Capgemini and BNP Paribas in their REVENUE IN U.S. AND EUROPE in less than seven years, compared to the sixty World Payments Report 2018 demonstrate 1,035 35 2.4% years Visa has had to build its business since that emerging markets are outstripping mature 831 800 2.0% 2.0% 54 its foundation in 1958. markets in Western Europe and North America, 671 1.3%

According to James Booth, Head of Business growing by an average of 16.5 percent 1,000 Development at PPRO, an e-commerce compared with growth in mature markets of 777 partner for payment service providers, major 7.1 percent. For emerging Asian economies, US merchants such as Nike, Amazon and this growth rate is fuelled by impressive 2005 2016 2005 2016 Facebook are now geared up to accept WeChat statistics from China (25.8 percent) and India EUROPE B UNITED STATES $ B and AliPay transactions. This is especially (33.2 percent) – by 2021, Capgemini/BNP New players Incumbent players % CAGR significant, Booth says, because “instead of predict that emerging economies, including tokenising the card inside a mobile wallet for China with its established mobile commerce Source: Accenture

option among the under-35 segment in the NUMBER OF WORLDWIDE NON-CASH TRANSACTIONS UK, Nordic countries, Singapore and Australia. (BILLIONS), BY REGION, 2012–2016 Although much of this activity is currently CAGR Growth undertaken using cards to load digital wallets, 550 2012–16 2014–152015–16 482.6 a growing proportion is accounted for via QR Global 9.8% 11.7% 10.1% 438.4 40.1 code, loading through proprietary networks

ns 440 392.5 38.9 52.2 Latin America 5.8% 5.0% 3.2% (such as the Starbucks’ app) and other non- 360.7 37.0 44.6 Billi o CEMEA 13.8% 16.5% 17.1% payment card options. 331.7 35.2 70.6 16.5% 330 38.3 56.4 32.0 34.5 38.7 50.0 Emerging Asia 31.1% 45.9% 25.2% Developing 31.1 29.2 45.3 23.9 41.3 37.3 MAKING SENSE OF CHANGE 33.5 Mature 10.6% 9.6% 10.3% 220 108.5 100.8 Asia-Pacific sh Transa ct ion s 93.5 a 83.5 87.9 Europe 6.8% 7.8% 7.7% According to Raymond Qu, CEO of GeoSwift, 7.1%

No n- C 110 Including Mature 161.1 Euroone a payments clearing company focused on 127.7 136.6 143.7 152.5 China “What’s happened is that the Chinese North America 6.0% 6.1% 5.7% 0 economy has skipped PCs and credit cards 2012 2013 2014 2015 2016 and gone straight to smartphones and digital Source: Accenture wallets.” For Qu, the distinction is between

www.paymentscm.com payments cards & mobile magazine - november / december 2018 15 cover story

“traditional banks, which are focused on one- Director Jeni Mundy, agrees: “The future of to-one transactions, and new technologies, payments is continually evolving. We are in a "New ways to pay are which allow consumers to manage money new era where the act of paying is becoming in different ways for different suppliers and embedded into everyday experiences, like becoming embedded in payment environments.” Regarding payment getting a taxi or purchasing a coffee. However, everyday experiences cards in particular, Qu considers them to be one thing remains true: new ways to pay are a “closed loop”, offering percentage revenues about giving consumers choice to fit their - it's about giving for issuers, acquirers, and merchants, which lifestyle– choice is key.” consumers choice to fit compares less favourably with new payments Demonstrating their ability to collaborate systems that are more open and flexible. for mutual benefit, Visa and Mastercard have their lifestyle." Both Visa and Mastercard are aware of joined forces with American Express to launch - Jeni Mundy, UK and Ireland MD, Visa the changing payments landscape and have Secure Remote Commerce (SRC), an initiative undertaken activities to defend and project designed to make it possible for consumers payments are becoming the norm, networks their dominant positions. As Jess Turner, to pay with a common checkout process and payment methods will differentiate EVP of Digital Payments at Mastercard, puts across websites, mobile apps and other digital themselves by providing consumers with it: “we’re a technology company focused platforms. With SRC, merchants can create a reasons to choose selected payment mediums on payments” – and the company’s recent payment button that eliminates the need for over others.” activity would appear to bear out this claim. In consumers to repeatedly type in their card the last two years, Mastercard has launched data and billing information when checking out CATCH ME IF YOU CAN… Send, a faster P2P payments platform built on a website or mobile app, and unifies the way on open APIs, as well as acquiring , card data is securely stored and handled. On the basis of this analysis, it would appear a UK-based company that owns the faster that the major card networks – though they payment app Zapp while also managing the THE END OF THE BEGINNING? might perhaps prefer to be called payment LINK ATM scheme in the UK, and the UK’s brands these days – have the right strategy Automated Clearing House (ACH) activities. If both the card networks and other payments in place. However, they now arguably find In late 2017, Mastercard also acquired NuData industry professionals agree that the future themselves in the position of having to Security, a company which uses biometric is an omnichannel approach – “any time, play catch-up with more nimble, younger patterning data from individual users to any place, anywhere, any how” – then the competitors able to scale quickly thanks to provide two-factor authentication for card open question, it seems, is whether the card their dominance in the on-line and mobile and mobile wallet services. networks and issuers have done enough to environments, as well as the attraction of These launches and strategic acquisitions stave off the blistering growth of mobile- offering associated services alongside the suggest that Mastercard is aware of the wave based payment systems now moving pure payment play. China’s Ant Financial, the of change sweeping the global payments out of their Asian home markets and into parent company of AliPay, has been able to industry – and to some extent, these moves other jurisdictions. branch out into credit scoring, investment will also help to assuage consumer fears Kevin Grieve, Managing Director and North management and current accounts thanks to regarding fraud, especially in an America Lead for Accenture’s Banking the success of AliPay. online environment. To help combat online Practice, notes that “Payments is a scale For all that card issuance and usage fraud, both Visa and Mastercard appear to business. The challenge for any payments continues to grow around the world, the be putting their faith in a combination of system is ubiquity.” As such, Grieve argues, growth in alternative payments in emerging tokenisation (which encrypts card information incumbents are in a very strong position going markets is breathtaking. In its 2018 study of in the online and mobile environments) and forward – and it’s a position which is only likely the payments market, Sharespost estimates two-factor authentication systems using to strengthen in the future. “If you look at the that banks in emerging markets have already biometrics, including Sweden’s Fingerprint card issuing business, around three to five lost $40 billion in revenues to non-bank Cards, which launched a pilot for biometrically- players own about 90 percent of the market in payment methods such as AliPay, WeChat, enhanced cards with Visa USA, Gemalto and most developed markets. Go online, and you and India’s Paytm. Add to this the fact that Kona I in early 2018. find that online retail is similarly concentrated, emerging markets are projected to take 20 Mastercard’s Jess Turner recognises that with a more than 90 percent share for just percent market share from mature markets in the future, the industry’s focus will be less a few players. So the challenge for the card over the next five years, and the continued on card issuance and acceptance, and more networks is to translate their brand values – dominance of today’s payment brands seems about the customer experience: “The payment ubiquity, convenience and security – into the less certain. The outcome would appear to vehicle itself won’t matter – it will be all about online and mobile environments.” hinge on whether the card networks can effect the customer experience. People are going to Susanne Steidl, CPO of Wirecard, a specialist their pivot to a multi-channel, and specifically want to pay however they want to pay.” issuer services and payment processing digital and mobile, environment with sufficient For Visa, UK and Ireland Regional Managing company, agrees: “In a world where seamless speed and flexibility.

16 payments cards & mobile magazine - november / december 2018 www.paymentscm.com use code PCM to save 10%

11 – 13 March 2019 Melia Avenida America, Madrid, Spain

Whether you’re a payments professional, a retail banker or FinTech, MoneyLIVE Spring is the place for you. Comprising of two separate conferences in the same venue, you’ll have your pick of speakers, content and attendees from both MoneyLIVE: Cards & Payments and MoneyLIVE: Retail Banking Europe.

3 40+ 150+ 350+ Conferences Countries Companies Antendees AI’S ON THE PRIZE by James Wood, PCM Editor

Artificial Intelligence (AI) and Machine Learning are already the buzz-words of the next decade in almost every walk of life, from medicine to product design and financial services. But when it comes to the fast- changing payments industry, is AI really as useful as some people claim, or are we in the middle of a hype cycle? PCM Editor James Wood investigates.

Seasoned professionals frequently debate FIGHTING RISING FRAUD are turning to two-factor authentication and both the pace and scale of change in payments, devices enabled with biometric security. as the number of payment options available to In addition to meeting the ‘positive’ challenges But introducing these devices while keeping consumers multplies, and consumer demand of rising customer expectations and increasing an eye on the competition and maintaining for faster, safer ways to pay accelerates. In the customer choice as the payments business compliance with a growing body of regulation next ten years, cards, e-wallets and QR codes expands, today’s payments professionals means the industry has a long ‘to-do’ list. will be joined by voice and wearable payment must also grapple with the dark side: the rising technologies, as well as other payment options threat of fraud. As the figures from Aite Group HELP ON TAP? yet to be invented. Faster payments will and BI Intelligence on the next page show, become the norm, and consumers will expect card fraud is once again increasing globally, Here’s where AI’s proponents say machines to see more and better deals being offered by notwithstanding the introduction of EMV- can help improve productivity and automate companies - deals which will go far beyond compliant chip cards around the world. To help processes such as KYC and AML requirements. today’s air miles and reward points. combat this rise, issuers and card networks Continuous increases in computing power

18 payments cards & mobile magazine - november / december 2018 www.paymentscm.com artificial intelligence

One example of how AI and predictive It’s worth remembering that EMV-enabled CLICK BAIT analytics can be used to enhance fraud chip cards – though much more secure Amount of 'card-not-present' fraud in the U.S, billions of dollars management was launched at Money2020 than signature cards – only provided a brief in Las Vegas three weeks ago by Feedzai. Its respite for the industry from rising levels of $8 Billion “Genome” programme uses AI and machine fraud: criminals have developed new fraud

7 learning techniques to develop visual patterns techniques, many of which focus on the card- Estimates of financial crime via merchant and payment not-present environment. Nonetheless, AI 6 method. This software package is based on does seem to offer significant promise in more the biological systems approach, meaning rapidly detecting and preventing new types of 5 that it associates data from various sources to fraud, especially given the increased diversity identify patterns and linkages between distinct and complexity of the payments landscape. 4 fraud events. Feedzai says Genome can link multiple devices or payment methods with RAGE AGAINST THE 3 individual merchants or customers, making MACHINE? DATA PRIVACY real-time identification of malicious actors ISSUES 2 easier than before. Thanks to new machine

1 learning capabilities, Feedzai also claims A more nuanced question for the payments its Genome system can identify patterns industry is the application of AI and machine 0 being run by criminal gangs, significantly learning to customer data from search engines reducing the time fraud analysts have to spend and purchasing history. Here, the goal is to '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 eliminating “false positives” – that is, those develop more relevant and better offers based Source: Aite Group transactions which might be fraudlent, but turn on a customer’s interests and what they buy. out to be legitimate. AI potentially shows great promise in this area, have created huge streams of data from For all that AI shows tremendous promise as Angus Burrell, General Manager at AltaPay, customer transactions and internet browsing, in fighting transaction fraud – examples of notes: “Machine Learning is coming into play the so-called “big data” phenomenon. At fraud patterns identifed through AI include more and more. However, retailers have yet to the same time, ever-more sophisticated email addresses with two or more consecutive understand how they can make best use of it.” algorithms and software packages are digits, or the fact that 20 percent of all fraud Statistics from NTT’s Digital CX in 2020 study enabling the AI revolution through “machine is conducted within 100 hours of new account support Mr. Burrell’s view: of the organisations learning”: that is, the capacity for computers creation – fraud prevention remains, to quote surveyed by NTT, nearly half (47 percent) to improve processes and outcomes based Kevin Grieve, Managing Director at Accenture, were unable to exploit their customer’s data, on statistical analyses of the data they receive “a whack-a-mole enterprise.” In other words, while almost two-thirds (61 percent) said over a period of time. Some IT experts have as soon as one kind of attack is neutralised, they lacked a clear vision for what to do even referred to the advent of AI as “the fraudsters will immediately begin developing with the data. Furthermore, just over half fourth industrial revolution”, after the age of new attacks. And with 90 percent of password (51 percent) of organisations surveyed said steam, the discovery of electricity and the entries on e-commerce enabled websites that even if they could access customer data advent of computers. now estimated to be fraud attempts, there are and knew what to do with it, they lacked the When it comes to payments, recent clearly no shortage of criminals ready to try right analytics skills to make best use of their developments have focused chiefly on their luck. customer’s behavioural information. fraud reduction, enhancing the customer experience, and creating ‘rich’ data for product development and marketing purposes. Given GLOBAL COST OF PAYMENT CARD FRAUD $16 the continuous increases in fraud losses $14 noted in the charts above, there’s little doubt $12 that much of the industry’s hopes for AI are $10 $6.8 focused on how it can help to reduce fraud. $6.2 $8 As payments industry veteran Jason Goldberg, $5.4 General Manager at Elevate, puts it: “There’s $6 $4.0 $3.7 a void as far as the banks are concerned in $4 $5.5 $7.1 the Wild West of cyberspace. By using AI $2 $4.8 $3.2 $3.6 and predictive analytics, the goal is to keep $0 up with criminal activity and stop criminals 2009 2010 2011 2012 2013 from accessing the financial system in the United States Rest of the world Source: The Nilson Report first place.”

www.paymentscm.com payments cards & mobile magazine - november / december 2018 19 artificial intelligence

Part of the challenge is that it’s unclear A similar approach has been adopted by Diebold consumers are necessarily happy with Nixdorf, a Software-as-a-Service provider, in surrendering their data in exchange for their recently-launched partnership with Google "Consumers will perceived benefit. Although it’s an oft-repeated and Mastercard. This partnership has created take ownership piece of industry wisdom that consumers will two separate products, the first of which part with their data if they trust the organisation combines geo-location and search data from of their data and they are dealing with and receive sufficient browsers with purchasing data to offer shoppers rewards, recent scandals involving Facebook, a wide range of relevant offers and deals in choose where Cambridge Analytica and major data breaches their local area. Their second product, called at British Airways, among others, appear to be Vynamic Demand, allows retailers to connect and how it is awakening consumer’s caution in regard to with customers via audio triggers and bluetooth sharing their data. A separate study by NTT and with special offers and packages relevant to shared." Oxford Economics, The Future of Data, reveals their search and purchase history. By working - Eric Clark, NTT Data Services that a paltry 8 percent of consumers would trust with Mastercard, the company hopes to be able private companies to keep their data secure. to offer services including cardless pick-up the news practically every week, 2018 has been Given that NTT’s study also revealed only 42 of products from physical locations, and the a watershed year that will force companies to percent of major firms surveyed have robust provision of cash at ATMs. allow consumers to take ownership of their data plans in place to protect their customer’s data, and choose where and how it is shared.” In a such fears may not be misplaced. Worse news REGULATING THE AI 2018 study, NTT Data also revealed that only 41 for companies that may mishandle a consumer’s REVOLUTION percent of consumers think the advent of AI and data comes in NTT’s finding that fully 79 percent big data into retailing is a good thing – compared of consumers would stop doing business with a Perhaps the most interesting aspect of AI and to 90 percent of corporate executives working in company which mishandled their data. machine learning as they apply to payments is retail, who love AI’s potential. These widespread consumer concerns about the capacity of these techniques to harvest data In the end, the richness of data which AI data privacy should not be ignored in the wider from a wide range of sources, such as payment techniques bring to areas such as fraud debate about AI, since AI feeds off these ‘big cards, geo-location finders on digital devices, management and crime prevention may be their data’ arrays for success, especially when it laptops and PCs, and retailer websites – and strongest selling point. And it would appear comes to creating compelling customer offers combine these data sources to identify patterns that new players in payments have the upper and tailoring products. From the corporate and glean insights of benefit to both companies hand over established systems, since they can side, though, work continues apace on AI and, so many claim, their customers. embed AI into anti-fraud systems from the start, solutions that will mine customer’s browsing One thorny issue not mentioned by any of rather than having to integrate AI into existing and transactional data – with their consent – to those promulgating the use of AI in payments technology, as payments industry guru Patricia create more relevant offers and better products. – especially when it comes to product Carlin observes: “many emerging payments and Loop, a company owned by Synchony, development and marketing – is, on the one banking technology and apps are employing has just announced a gifting partnership hand, customer willingness to allow their data AI from the start. These newer fintechs have with Kenneth Cole, the US apparel retailer, to be used in this way and, on the other, the the leg up on existing payments players that which allows shoppers to gift each other legality of these techniques in the context of must affect change from legacy systems to Kenneth Cole merchandise via their on-line General Data Protection Regulations (GDPR) newer technology, which can be a slow and accounts, and to shop using digital gift cards. rules such as exist in Canada and the EU. To laborious process. Established payments Synchrony President and CEO Margaret Keane date, services that combine card purchasing companies will need to increase agility and says: “People are using mobile purchasing in information, search and geo-location data have take some calculated risks in deploying AI brick-and-mortar stores. We’re enhancing our all been launched in the US, which does not have and other technology to maintain pace with tech footprint and using AI to meet them and a GDPR-type data protection act. newer players.” make that purchasing process easy.” Greg Whether these solutions could be launched in AI’s utility when it comes to product Simpson, the firm’s Chief Technology Officer and European countries or Canada, which have more development and marketing is less clear, AI leader, confirmed: “Retailers are looking to stringent data access rules, remains unclear. however, owing to the manifold data privacy give their customers increased personalisation Of additional interest may be the fact that other and data security issues the industry faces at in their shopping experience. To make this markets, including wealthy and mature markets present. Of these, data security would appear happen, we are combining structured and such as Australia and Japan, are planning their to be an easier problem to solve than the more unstructured data.” – in other words, Synchrony own versions of GDPR in the next eighteen intractible challenge of data privacy, which is works with retailers to combine data from months. Eric Clark, the Chief Digital Officer linked to issues of trust between corporations shopper’s search activities on their sites with at NTT Data Services, notes: “Following the and their customers, and the wider question of their purchasing history to get a fuller picture of Facebook and Cambridge Analytica revelation, how we organise our society in the emerging their interests. the GDPR implementation and data breaches in digital era.

20 payments cards & mobile magazine - november / december 2018 www.paymentscm.com 2017-18 EDITION Payment Cards Statistical Yearbooks Stay one step ahead with deep industry information and a wealth of statistics from central banks, interbank companies and associations and individual banks.

In order to respond to the changing and new payment industry markets, the 2017-18 edition Yearbooks have been enhanced by adding:

• More issuer information – issued brands by issuer • More acquirer information – acceptance brands by acquirer • More on contactless cards and digital wallets • More e-/m-commerce information, e-payments mix and statistics • More on notable mobile payments initiatives • More on basic fraud trends and statistics • Mobile merchants and MPOS terminals • Notable market trends – battlefields in the payment industry

European Payment Cards Yearbook and Eurasian Payment Cards Yearbook 2017–18 are available as a complete volumes or as individual country profiles.

For further information, synopses, or to place an order and access free downloads, visit: www.paymentyearbooks.com

PAYMENTS INDUSTRY INTELLIGENCE www.paymentyearbooks.com PaymentsCARDS & MOBILE THIS DIGITAL LIFE: PAYMENTS AND GENERATION “Z”

by James Wood, PCM Editor

Born around the turn of the millennium, a new generation of consumers has entered adulthood in 2018. They have never known a world without mobile phones and tablet computers, have their own unique expectations, and a different attitude to any generation before them. PCM Editor James Wood looks at what the advent of Generation “Z” means for the payments business.

Fans of the three Musketeers will recall writer bias towards e-commerce and m-commerce. TYPES OF FINANCIAL INSTRUMENTS Alexandre Dumas’ statement of an eternal However, all the evidence points to a number GEN Z USES OR HAS PERSONAL truth in The Count of Monte-Cristo: “You see, of surprising shifts in attitude on the part EXPERIENCE WITH Edmond – the old must make way for the of young adults – as retailers, banks and young, otherwise there would be no future.” As intermediaries are beginning to acknowledge. CHECKING OR 72% a new generation of consumers stands on the PREPAID STORE GIFT CARD 49% cusp of adulthood, is the payments industry A SUPER-SAVVY GENERATION PREPAID CREDIT CARD 36% ready to meet their expectations? CREDIT CARD 27% At first glance, one might expect Generation The first surprise is that Gen Z is not going 15% PEER-TO-PEER PAYMENTS “Z” – the name given by marketers and to be “Millenials 2.0” – their attitudes and commentators to those born after 1996 – approach are markedly different. Perhaps 14% INVESTMENT ACCOUNT to be interested only in digital and online the most striking change is in their financial 14% BANK LOAN experiences, as befits the first generation born literacy and familiarity with various financial 10% STORE BRANDED CREDIT CARD after the internet revolution. When it comes to products – as research from American Source: thefinancialbrand.com payments, this would translate into a strong Express demonstrates:

22 payments cards & mobile magazine - november / december 2018 www.paymentscm.com generation 'z'

According to Marcie Merriman, Cultural business, with 69 percent of Generation Z shopping in-store and researching on-line, Insights and Strategy Leader for the Americas already conducting most of their financial lives and 28 percent want to discuss their purchase at Ernst & Young, “Gen Z consumers will have via smartphone apps, according to research with employees in-store. By contrast, the had access to financial products through from Accenture. over-55 age group are now most likely to shop their parents – but this doesn’t mean they on-line only without a ‘real-world’ corollary. As have access to huge credit resources. We THE DATA CHALLENGE Douglas Hartung, Senior Director of Business can expect Gen Z to be acutely aware of Development and Alliances at Diebold Nixdorf, transaction fees, annual fees and the like.” If Gen Z is looking for seamless fluency in puts it: “The under-25 bracket still want to go In addition to their financial awareness, payments delivered via an app, then they into a store. They also want their security and Gen Z are, of course, also highly tech-savvy. are paradoxically less willing than previous privacy to be respected – and they want their This translates into a massive 80 percent of generations to swap their personal data in purchases to be quick and secure.” this generation who are comfortable using exchange for these services. Following the digital wallets, according to Juniper Research Facebook/Cambridge Analytica scandal, fully BREAKING THE MOULD – a statistic which may cause concern to four times as many (44 percent) of Generation businesses still focused on physical card Z deleted the Facebook app from their phones For all that analysts, researchers and industry solutions. Juniper also predicts the number of compared to the over-65s, according to experts may speculate, there are times digital wallets in use will jump 30 percent over research from the Pew Foundation. Although when life throws us unexpected answers to the next year to reach two billion by the end of many retailers and intermediaries are currently seemingly intractable problems. How can the 2019. The challenge for those seeking to gain preparing AI-led marketing and product payments industry promise to protect Gen Z’s market share with Gen Z, it would appear, is development software (see page 18, "AI's on data, deliver an online, mobile wallet-based to develop brand trust and recognition in the the prize"), it’s not clear that Generation Z solution – and all of this with the speed and digital wallet market. are going to be willing to cede personal data security the emerging generation expect? When it comes to who provides these wallets to enable this kind of sophisticated sales One intriguing answer comes not from an and other products, however, there’s evidence and marketing. established payment brand or bank, but from that established financial institutions can’t Ernst & Young’s Marcie Merriman says: a new technology invented in the United offer the mix of products on a single platform “GDPR is something which is going to be given Kingdom by Sthaler, called Fingopay. This Gen Z is looking for. According to research more attention in the US. Understanding who technology works by taking a scan of the vein from CPG and The Hartman Group, Gen holds your data and what they are sharing patterning inside the index finger, a unique Zers are looking for seamless integration of with whom is one of the biggest issues for this identifier that remains constant throughout multiple ways to pay on one platform, and generation. On the upside, this will give some a human’s life. This pattern is then stored banks aren’t offering this: businesses the opportunity to differentiate in the cloud and linked to a mobile wallet themselves by showing they are trustworthy.” or bank account, with the option to include GENERATION Z'S PAYMENT DEMANDS loyalty apps. Transactions take less than The next group of young customers have needs that GREAT EXPECTATIONS: GEN Z two seconds, and the technology can also banks aren't currently in a position to meet be linked to other apps which allow access Banks without centralised AND RETAIL 84% multichannel payments to music venues, student unions, and other

GenZers wanting a When it comes to shopping and paying, locations. Customers can have e-receipts sent centralised experience 70% Gen Z consumers are more likely than the to their email addresses if they choose. Banks that have no plans over-55 group to move away from purely In 2015, the technology was successfully 41% to build that online shopping towards what some analysts tested by Visa and WorldPay, and has Source: CPG, The Hartman Group are calling “blended reality” – that is, a now been rolled out in Bristol (UK) and Many commentators believe this desire for mixture of online experiences and physical Copenhagen (Denmark). Fingopay’s trial a single platform that allows the distribution shopping. Both Amazon in the US and Tesco at Copenhagen Business School (CBS) in of funds to card accounts, wallets, ATMs in the UK have trialled retail environments Denmark was so popular with students that and marketplaces such as Amazon explains without check-out queues, which operate by when school authorities proposed ending the the popularity of PayPal’s VenMo in the US, identifying consumers through their mobile trial, the student’s union organised a protest to which Gen Z consumers treat as a “virtual devices and charging the consumer’s mobile reinstate it. With biometric payment-enabled bank.” Instead of having segregated accounts wallet directly for goods picked up in store. devices – from cards, to watches and use of for each payment product, this generation While this model fits Gen Z’s desire for the human body itself - predicted to rise to wants the freedom to be able to seamlessness and fluency, the clearer trend more than half a billion objects by the end of between credit, debit and wallet products on a emerging from studies of Gen Z’s shopping 2023, according to Goode Intelligence, and single app. Indeed, when it comes to financial habits is the combination of on-line research a market worth $5.6 trillion by 2020, it may services, it’s highly likely that app-based and physical experiences in-store. According be that Gen Z has the answer to the future of providers are going to win this generation’s to Euclid Research, 66 percent of Gen Z prefer payments at its fingertips.

www.paymentscm.com payments cards & mobile magazine - november / december 2018 23 issuing & acquiring

CONTACTLESS CARDS ACCOUNT FOR 50 PERCENT OF ALL CARDS

Contactless payment card issuance is set issuance as early as Q4 2018,” explains Phil means of combating Neo/challenger banks,” to hit 1.5 billion units in 2018, accounting Sealy, Principal Analyst at ABI Research. continues Sealy. for over 50 percent of all payment card “However, South East Asia is looking more “The leading vendors, including shipments delivered globally. positive than Latin America. It is understood Gemalto and IDEMIA, have primed their Breaking the 50 percent barrier marks a that larger issuers in Latin America are respective payment card product portfolios significant milestone in contactless card looking to postpone the mandate (particularly to take advantage of a card market which migration, where market momentum is in Brazil), driven by cost concerns and a lack is transforming from one of delivering expected to continue due to next-generation of readiness.” secure payment authentication, toward new migration opportunities, most notably in Furthermore, ASP degradation will continue functionality and personalised experiences to the US, India, South East Asia and Latin to play a significant role in issuer interface stand out from the crowd, create new levels of America. These opportunities are helping choice. Continued ASP reductions will only brand stickiness, and ultimately broaden card to push contactless card issuance volumes increase contactless appetite among issuers, portfolios via new form-factors, including toward 2.3 billion annually by 2022. particularly as the price gap between contact metal cards and next-generation powered and contactless narrows. payment cards with biometric and display CARDS TO However, contactless enablement and enabled form-factors.” ACCOUNT FOR OVER 50 PERCENT OF ALL migration programmes are only one factor “Contactless used to be one of the ways CARDS DELIVERED GLOBALLY IN 2018 driving the payment cards market toward to differentiate, but as contactless payment higher-value card propositions. The next- cards become the de-facto interface of The buzz in market expectations for generation of technologies and materials are choice, banks and financial institutions will contactless migration has been further already making their market presence felt. increasingly turn toward next-generation heightened thanks to contactless migration “Differentiation is playing a key role in issuer technologies, materials and personalised mandates put in place in Latin America and strategies, in a bid to not only differentiate services in order to execute differentiation South East Asia. With short deadlines set from the traditional competition, but also as a strategies,” he concluded. by Visa and Mastercard, coming into effect in October 2018 for POS terminals and April US CONTACTLESS CARD SHIPMENTS & WORLDWIDE CONTACTLESS CARD SHIPMENTS 2019 for new card issuance respectively, Source: ABI Research 500 3.0 all eyes are pinned on these two regions as significant growth areas for the contactless 2.5 400 2.09 payment card interface. 2.0 300 “All the indicators are positive for a 229.6 1.46 1.5 1.23 significant level of contactless migration 200 1.0 into these two regions and although demand 100 78.4 is yet to materialise, activity and heightened 25.7 0.5 interest from issuers in countries including 0 0.0 India, Thailand, Colombia, and the Philippines 2016 2018 2021 2016 2018 2021 will likely result in an increase of contactless

SWEDEN’S CENTRAL BANK PREPARES TO LAUNCH DIGITAL E-KRONA Sweden’s central bank is preparing to launch a analysis work needs to continue to increase the will investigate how to create an e-Krona that cryptocurrency, according to reports. Riksbank’s knowledge of the consequences of can be loaded on to an app or a card to be used The Riksbank started an e-Krona project in an e-Krona and technological solutions need for payments. the spring of 2017 to examine the scope for to be developed and tested.” A parliament committee has proposed that the creation of a central bank digital currency As regards the e-Krona, the aim will be "to the largest banks should be forced to handle (CBDC), with cash usage on the decline in develop a tested and ready e‐Krona,” that could cash in an effort to halt the development of Sweden, the central bank says an electronic be introduced should the bank “wish to do an e-currency. This year, only 13 percent of currency could ensure that the general public so,” it said in a second report of its electronic Swedes paid for their most recent purchase in will still have access to a state-guaranteed currency review. “The initial focus will be on cash, down from 39 percent in 2010. means of payment. an e-Krona that constitutes a prepaid value Sweden may “in a few years’ time be in a “Adopting a position on whether Sweden (electronic money) without interest and with position where cash is no longer generally should introduce an e-Krona will take time,” traceable transactions.” accepted by households and retailers,” states the central bank. “But at the same time, The pilot project, which could start next year, according to the report.

24 payments cards & mobile magazine - november / december 2018 www.paymentscm.com issuing & acquiring

UNIONPAY STAYS ON TOP AS THE WORLD’S LARGEST SCHEME

New research reveals that the number of Visa (including , and typically issuing UnionPay-only cards to payment cards in circulation worldwide Interlink) and Mastercard (including replace existing dual-badged ones, while reached 15 billion at the end of 2017, and Mastercard Electronic) account for customers can request an international card with UnionPay continuing to hold the 21 percent and 16 percent of global cards for use abroad. largest share. respectively; if China is excluded, Visa’s share “While some Chinese consumers and The 15 billion payment cards in circulation is 36 percent and Mastercard’s 27 percent. businesses will request a Visa or Mastercard is up by six percent since the end of 2016, The report shows that domestic schemes, card, UnionPay will account for the vast according to RBR’s most recent report, Global usually found in the debit sector, are declining majority of Chinese cards for the foreseeable Payment Cards Data and Forecasts to 2023. in most markets, as they are either dual- future,” explains Daniel Dawson of RBR. As governments and central banks in badged with, or replaced by, international “UnionPay will also aim to expand developing markets continue to encourage schemes. However, they have seen something internationally, but Visa and Mastercard’s financial inclusion, the number of cards has of a rebirth in a number of large markets in long history in other markets will enable them kept growing, providing further opportunities recent years. For example, India's RuPay to withstand pressure from new competitors.” for card schemes. has an important role in a financial inclusion campaign which has seen its share of the SHARE OF PAYMENT CARDS WORLDWIDE BY SCHEME, 2017 UNIONPAY’S SHARE INCREASES – CHINESE country’s card market rise to 49 percent since

MARKET CONTINUES TO EXPAND its launch in 2012. OTHER 7%

DOMESTIC Growth in the Chinese card market has CHINESE REGULATIONS ENCOURAGE 13% 44% been strong for several years and the trend GROWTH IN UNIONPAY 15 BILLION continued in 2017 which saw the number of 16% CARDS cards in issue rise by nine percent. The vast For many years, Visa and Mastercard cards in majority of the country’s cards are UnionPay- China were dual-badged with UnionPay, but 21% branded, and in 2017 the scheme accounted a 2017 regulation prohibiting dual-badging for 44 percent of the world’s payment cards, means that this is no longer the case. As increasing its share by one percentage point all Chinese cards issued for domestic use Source: Global Payments Cards Data and Forecasts to 2023 (RBR) compared to the previous year. must be UnionPay-branded, banks are

MASTERCARD, AMEX AND WORLDPAY JOIN INAUGURAL CYBER WAR GAME Mastercard, WorldPay and AmEx were among and cooperation between the industry and and Analysis Center, known as FS-ISAC, a the payment processors who took part in a government agencies is increasing. forum for banks, broker-dealers and insurance ‘cyber war game’, in a bid to test their systems “We put competitors in the same room companies to share data on threats. Banks and amid rising IT security threats. The payment together, which initially they were hesitant brokerage firms have been holding cyber war companies held their first joint cybersecurity to do,” said Rob Johnston, chief information games regularly since 2011, testing the U.S. war games to test their systems’ readiness for security officer for FIS and one of the capital markets’ readiness for attacks. simultaneous attacks, uncovering differences organisers. “But they realised pretty fast how “It’s interesting to see that payment in their defences including even how to valuable such a gathering is. When there are processors are actively testing their systems define a crisis. multiple breaches in an organised attack, it’s to see how prepared they are for a cyber- JPMorgan Chase, Mastercard, American better to coordinate the response.” attack,” says David Emm, Prinicpal Security Express, WorldPay and Fidelity National The participants discovered that they had Resacher at Kasperky Lab. Information Services were among the 18 varying definitions of a crisis related to “In today’s digital age, online fraud is a very payment processors from the US and the UK breaches as well as differing approaches real threat. With almost every area of our daily that took part in the cyber war game exercises, in how they reach out to law enforcement. lives now online, fraudsters are using a host which were held at IBM’s test centre in the US. Agreeing on a common definition and of sophisticated and varied cyber-threats Financial firms have led spending on streamlining cooperation with government to target victims, and make them drop their cybersecurity as high-profile attacks exposing agencies will be goals for the payments guard. There are a variety of different types of customer data and theft of funds raised industry, Johnston said. The sector will also : from combining cold-calling pressure on the industry. Executives and seek a more formal way of sharing information with phishing emails to targeted attacks that regulators are concerned that a systemic on threats, he said. are being initiated through payment system attack on the plumbing of the financial Some of the payments firms are members endpoints and through the exploitation of system could disrupt the global economy, of the Financial Services Information Sharing customers’ credentials and confidential data.”

www.paymentscm.com payments cards & mobile magazine - november / december 2018 25 mobile payments

UPI LEADS VIBRANT INDIAN MOBILE WALLET RANKINGS

Unified Payments Interface (UPI), a system on UPI and digital wallets are small-value P2P the way online payment gateways are now which allows for instant bank-to-bank fund fund transfers, according to industry estimates. designed, which could have made it more transfers is gradually taking the lead over the Debit card payments through POS terminals, attractive for customers to pay for products vibrant mobile wallet market in India. or card reading machines — a good indicator online rather than opt for cash-on-delivery, A large chunk of P2P remittance payments of the adoption of digital payments for thereby causing debit card usage to go up,” that were happening through digital wallets merchant transactions — increased to 366 said Belgavi. have moved to UPI, according to Naveen Surya, million in July from 301 million in January, RBI Also, several standalone wallet companies Chairman emeritus of industry body, The data demonstrates. have either deleveraged to broader financial Payments Council of India. The growth in debit card payments through services models or gone back to their He attributes this to the Reserve POS terminals is an interesting trend as it remittance business as banks’ agents, say Bank of India’s mandatory KYC rules for suggests people have started using their industry experts. digital wallet companies and the goods cards more for direct purchases than only Last month, Paytm said it registered 137 and services tax imposed on business for withdrawing cash from ATMs, says Vivek million UPI transactions in September, correspondents’ transactions. Belgavi, FinTech leader at PwC India. which was 20 percent of its overall “There are retail agents (of digital payments “There has also been an improvement in transaction volume. platforms such as EbixCash and Oxygen) who do almost Rs 5 crore ($675,850) of monthly UNIFIED PAYMENT INTERFACE (UPI) remittance. Many of them have moved on NO. OF TRANSACTIONS VS AMOUNT TRANSACTED 178.1 to UPI, where the transactions happen from their own user handles to the beneficiaries’ 25 145.5 171.4 accounts,” explains Surya, a former managing 151.8 director of ItzCash. 20 104.8 76.8 UPI transactions surged to about 405 million in September, up nearly 70 percent from about 15 235.65 million in July and 165 percent from 30.8 about 151 million at the beginning of this 10 year, according to data shared by the RBI and 16.6 5 9.2 10.4 11.6 the National Payments Corporation of India, 6.2 7.0 which runs UPI. Digital wallet transactions dropped to 320 0 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 million in July — the latest month for which data is available — from about 326 million in Amount Transacted (Rs Cr) Transactions (Mn) Source: MediaNama January. Nearly 90 percent of the transactions

YOYO STRIKES $30 MILLION PARTNERSHIP AGREEMENT FROM HARD YAKA Yoyo Wallet has secured $30 million in a of integrating into new and existing platforms, and loyalty experiences for thousands of retail, partnership agreement from Twitter and to increase Yoyo’s footprint and give more education and corporate catering outlets. The Coinbase investor Hard Yaka. choice and convenience to retailers and company reports that it processes more As part of the agreement, Yoyo will integrate consumers globally. It also provides than 2 million transactions a month, has its “omni-channel commerce API” with Hard a validation point for the commercial more than 1.25 million users, and over Yaka’s global user identification platform – model Yoyo is developing for 600,000 monthly active users. Global iD. these integrations. “We want to work in close Global iD is building software which seeks “We are building next generation cooperation with Yoyo to help execute to enable users to create an individual “token commerce infrastructure that redefines our vision of creating a global ID of identity,” attached to a unique name, which the buying experience for a technology and framework. This will provide everyone with can collect proofs of identity or “attestations” data driven world,” comments Michael Rolph, a secure and trusted private identity that based on the person’s electronic footprint and CEO of Yoyo. “Our deep collaboration with protects consumers, improves society and relationships. A cited use case of Global iD is Hard Yaka supports the fact that we are doing fuels economic progress,” stated HardYaka to enable users to securely pay for goods and the right thing at the right time to help retailers Founder and CEO Greg Kidd. services online and in-store. be more like Amazon.” Kidd is an early investor in Ripple and Square, The collaboration aligns with Yoyo’s strategy The Yoyo platform powers mobile payment as well as Twitter and Coinbase.

26 payments cards & mobile magazine - november / december 2018 www.paymentscm.com mobile payments

ALTERNATIVE PAYMENTS ESSENTIAL AT POS IN ASIA PACIFIC

Consumer desire for convenience is reshaping countries, such as the Philippines and China, “The next-generation approach to shopping the retail sector, where retailers are scrambling account twofold greater in terms of consumers sees mobile payments and smartphone-based to offer a seamless shopping experience showing preference towards stores with apps, such as WeChat and AliPay being quickly with the latest technologies such as self- advanced in-store payments, in comparison embraced by time-pressed consumers for service checkout systems and contactless to the global average. their convenience and hassle-free benefits,” payment technology. With e-commerce key to Asia’s modern way continues Mesheva. Asia-Pacific (APAC) is leading the race of shopping, the giant e-commerce platform “Additionally, future-focused technological in encouraging its population to become Alibaba is making the shopping experience advances are further facilitating consumers a completely cashless society, with more convenient by encouraging mobile and desire for simple, seamless and time- consumers in the Philippines and China in online payments, luring in digitally savvy and saving way of interacting with products particular using alternative payments in their time-pressed consumers. and services.” everyday purchases. According to the GlobalData 2018 Q3 global GLOBAL: TOP NATIONAS WHICH PREFER STORES EQUIPPED WITH consumer survey, over a quarter (25 percent) ADVANCED PAYMENTS METHODS of consumers in China find stores that support 27% alternative payment methods such as Apple 25% 24% Pay to be some of the most convenient when 22% deciding where to do their grocery shopping. 21% “Pressed-for-time consumers look for convenience and flexibility,” says 12% Iliyana Mesheva, Consumer Analyst at GlobalData. “They expect a seamless omnichannel experience and look to combine shopping, alternative payments and Global Philippines China Saudi Arabia India Turkey smartphone-based apps.” Source: Global Data The survey further reveals that APAC

ASIA OUTPACES WEST IN TERMS OF MOBILE WALLET ADOPTION Mobile wallet adoption in Asian markets like and common that there is no real reason or 0.3 percent – much lower than the 1.8 percent China, India and Taiwan is much higher than urgency to adopt mobile payments. average fee on credit cards. their Western counterparts such as the US, the QR code payments, which avoid the higher “The seamless payment experience UK and Germany. charges associated with card payments and offered by mobile wallets has redefined According to a new survey published in remove the need to set up terminals, the way consumers carry out their day-to- GlobalData’s 2018 Mobile Wallet Analytics, the have come to dominate in Asia Pacific. Low day activities. The convenience and comfort increasing popularity of smart devices has acceptance costs and high customer penetration offered by mobile wallets will further evolve to enabled rapid adoption of mobile wallets in of wallets such as AliPay and Paytm have led include innovative and simplified services for the region, with mobile wallets now gradually merchants to increasingly accept this form consumers. Cryptocurrency-based wallets are replacing cash payments. of payment rather than invest in acceptance just one example, with merchants in several Sowmya Kulkarni, Payments Analyst at devices. For instance, the merchant service Asian markets now accepting payment via this GlobalData, says: “The availability of low- fee on QR code payments in India is around method,” concludes Sowmya. cost smartphones, rising internet penetration, growing awareness of mobile payments MOBILE WALLET ADOPTION, 2018 & SMARTPHONE USAGE FREQUENCY, 2018 and the proliferation of mobile wallets has 64.9% 49.0% resulted in Asian countries shifting from 60.5% 29.7% cash transactions to mobile wallet payments, 25.6% 37.0% skipping cards to a certain extent in the 16.2% 11.5% 10.4% 9.6% 8.7% 9.5% traditional payments value chain.” Notably, this trend has not been seen in

Western countries despite widespread China India Taiwan US UK Germany China India Taiwan US UK Germany smartphone and tablet adoption. This is Source: Global Data because card-based payments are so familiar

www.paymentscm.com payments cards & mobile magazine - november / december 2018 27 C100 M100 Y35 B55 Dégradé Dégradé Ultra

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01_ad_payments-cm_210x280_nov1.indd 1 12/11/2018 18:21 contactless

THE CASHLESS SOCIETY – MAINTAINING TRUST IN PAYMENTS

There is no doubt that lack of trust in the service providers to have systemic and further damaging the journey towards a payment system remains a fundamental technological resilience. cashless society. obstacle to a cashless society. Research This is particularly the case as the number In work led by UK Finance, the industry shows that consumers are now more of actors on the payments stage increases has been upping its game. It has already concerned than ever about the risk of and relationships become more complex with improved APP fraud response protocols and payments fraud and security breaches. the introduction of open banking and third information sharing and it is now also working Meanwhile, there have been a series of news party payment services. towards initiating a 'confirmation of payee' stories that have highlighted how dependent solution. Perhaps most important, however, a cashless society is on systems resilience. AUTHORISED PAYMENTS AND SCAMS has been the creation by the Payment Systems Regulator (PSR) of the Authorised UNAUTHORISED PAYMENTS AND Meanwhile, consumers have, perhaps, Push Payments Scams Steering Group (the CONSEQUENTIAL LOSSES suffered most in the area of authorised Steering Group) in April 2018. The Steering payments as a result of the speed of change Group is tasked with designing a victim In September 2018, thousands of people and payments innovation. Thanks to Faster reimbursement model for APP fraud and across the country found that their debit Payments Services and mobile technology, it with finding an appropriate funding model for cards had been charged twice for the same is now possible to make a point of sale push that reimbursement. transaction. In accordance with payments payment directly from your bank account The Steering Group recently published legislation, all customers affected were as quickly and easily as it to authorise a consultation paper and draft industry issued refunds, because the second payment a pull payment using a debit or credit voluntary code (draft Code) which sets was 'not authorised' by the customer - writes card, so payments by way of direct credit out the proposed requisite level of care or Nikki Worden, Partner, Osborne Clarke transfers from account to account have 'best practice standards' that should be financial institutions group. been increasing. met by PSPs when sending and receiving The law makes it very clear that a PSP Whilst the allocation of liability for fraud payments. It also sets out proposals for when which processes an unauthorised payment where a card payment has not been authorised a customer will not have met the requisite must refund it. What is still open to debate, is clearly set out in payments legislation, level of care. What the Steering Group has not however, is the extent to which the obligation there is nothing which decides who bears the yet done is resolve the most challenging and 'to restore the debited payment account loss when a consumer is scammed or tricked pivotal question: how reimbursement is to to the state it would have been in had the into authorising a payment directly out of be funded in cases where both the PSPs and unauthorised payment transaction not taken their bank account. As a result, victims have the customer have taken the requisite level place' extends to consequential losses. often found themselves not only without the of care. For example, should the customer's bank be goods they have purchased, but also without A variety of solutions are being consulted liable if the customer is not able to complete any chance of a refund of the monies paid as upon, many of which assume that some on a house purchase due to insufficient a result of the scam. kind of fund will be required. Some are quite funds, and therefore incurs extra charges and radical, such as getting the whole ecosystem costs outside those immediately visible on of participants to contribute, including the account itself? telecoms companies and data handlers as Where the error is due to a third party's well as PSPs; or moving to a government- glitch, such as a merchant acquirer's system led solution, similar to the Criminal Injuries seeking to settle the transaction twice, the Compensation Scheme. direct transaction amount will be charged Other proposals could have unintended back to the merchant under scheme rules, but consequences for the UK payments industry, consequential losses could not be charged such as applying a transaction charge on back in that way. higher risk and high value payments, with that The spectre of a major error on a grand These so-called authorised push payment charge being directed into a fund. scale, and the potential consequences in or 'APP' scams are a growing problem. The final Code is due to be published in early terms of reputational damage and loss of Fraudsters are effectively exploiting 2019. Many are hopeful that it will drive down consumer trust, should be concerns for the consumers' and businesses' reliance on APP fraud and improve trust in the payments whole industry. When this risk is looked email, the web and the Faster Payments ecosystem. Many would also argue, however, at through the lens of the speed with Service. Even though this might not be the that the payments industry can only do so which consumers are increasingly using fault of the customer's PSP, it is trust in, much to prevent this kind of fraud, as in most non-cash payment methods, it is clear that and the reputation of, the payments industry cases it starts with an entirely unrelated the onus is firmly on banks and payment that is most affected by this kind of fraud, compromise of data.

www.paymentscm.com payments cards & mobile magazine - november / december 2018 29 MWC_PrintAd3_210x297.pdf 1 2018/11/01 3:12 PM

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MWC Barcelona 2019 is where over 100,000 of the tech industry’s innovators and #MWC19 influencers gather to explore how Intelligent AN EVENT OF Connectivity will shape the future of our digital experiences, our industry and our world. e-commerce

RETAILERS SET TO LAUNCH VOICE COMMERCE - ARE WE READY?

Argos has become the first retailer in the UK to Information based on data it obtained from common real-world scenarios. For instance, offer a voice commerce and search shopping “two people briefed on the company’s internal obtaining information about and pricing for service via the Google Assistant platform. figures”, only two percent of the people who products using voice commands is probably While the success of this service is yet to own Amazon Alexa-powered devices have far less efficient and desirable than using, say, be seen, this should act as a call to action taken advantage of their ability to make voice- a mobile app. for retailers that long term market success based purchases. Even for common items that are purchased involves innovation and keeping up with the There are estimated to be some 50 million on a regular basis – “Alexa, buy paper latest technology and consumer trends. Alexa devices in the wild, meaning that one towels” – many customers might want to The move comes on the back of increased million of them have been used to make a double-check prices before committing to a competition from Amazon, which produces voice-based purchase. That might not seem purchase, especially if they’re not brand-loyal. voice-controlled Echo speakers. Even though like the worst start, but a number of analysts Another observer, an Amazon seller, pointed Amazon and Google have sold millions of have touted voice commerce as one of the out that the Alexa keywords for his products smart speakers, analysts say few people use next big things in payments. frequently get changed, making it more them to buy products. As BGR’s Andy Meek noted, OC&C Strategy difficult for customers to place orders “Argos’ move into voice search is the start Consultants had predicted that voice by voice. of a new era in retail, where voice activated commerce will generate a whopping $40 Issues like this might very well explain why devices are transforming the process of online billion in sales by 2022. If the Information’s owners of voice-based intelligent assistant purchase into a more seamless and accessible sources are accurate, such a prediction looks devices apparently aren’t being used for customer experience.” commented according tenuous at best. shopping. In theory, Amazon and other to Andy Burton, CEO of Tryzens. What’s more, The Information’s sources retailers selling through voice-based devices “Argos is the first of what we anticipate will claim 90 percent of the people who used their could address some of these issues, and likely be a long line of retailers investing in voice Alexa-powered device to make a voice-based will. But as digital commerce evolves, it’s still commerce. This new channel is arguably purchase failed to make a second voice- not clear just how important voice commerce somewhat overdue for attention. With smart based purchase. If that is true, it raises even will actually be. speaker sales reaching 3.94 million in the bigger questions about the UK last year, there is a clear opportunity future of voice commerce, VOICE COMMERCE SALES for retailers to reach consumers through especially since shopping is 2017, 2022 IN US & UK 2022 a growing channel that promises to offer one of the features Amazon a new level of simplicity and convenience. highlights when promoting $40 BILLION Advancements in simplified payments enable its Echo devices. consumers to research, reserve and purchase in a matter of seconds, transforming the way IS VOICE COMMERCE 2017 customers shop.” DOOMED? $5 However, whilst consumers have BILLION $2 embraced voice-based intelligent assistant While voice commerce $.2 BILLION devices like Amazon’s Echo Dot and Google looks promising on paper, BILLION Home smart speakers, apparently this interest numerous observers UK US UK US is not resulting in a voice commerce boom. have pointed out that the Source: OC&C 2018 According to a report published by The experience falls short in

PAYMENT TECH BRANDS CONNECT WITH UK CONSUMERS Half of the most significant brands in the UK A further five payments brands, including are associated with payment technologies, PayPal and Mastercard, featured in the top according to an index recently launched by fifty UK “connected” brands, along with Opinium Research. The Most Connected Brands Facebook, which has trialled payment mobile payments, real-time payments and Index, which included responses from 6,000 UK technologies via its Messenger service. instant messaging. consumers, including 11,000 brand mentions Among the other factors associated with the Emily Dickinson, Director at Opinium, and 48,000 reviews, has found Amazon, relatively strong performance of payment commented: “Tough trading conditions on Google, Apple, Samsung and Microsoft all to technology brands in this study, Opinium the high street, and online giants such as be in the top ten brands when it comes to being cite the “fundamental changes to our society Amazon, have created a perfect storm for “indispensable to consumers’ daily lives.” [created by] technological trends” such as retail brands.”

www.paymentscm.com payments cards & mobile magazine - november / december 2018 31 products

BIOMETRIC CARDS FOR LIMITLESS CONTACTLESS PAYMENTS

Societe Generale is trialling a payments card When a customer receives the card, they with a built-in fingerprint reader that enables record their fingerprint themselves. Because users to make contactless payments of the data is verified directly on the card, no unlimited value. element of it is transmitted to either the bank Using technology from Idemia, the biometric or merchant. element eliminates the need for shoppers The card also functions normally for all to enter a PIN, letting them tap and pay for contact-type payments in-store, on the any amount. internet and ATM withdrawals.

“DATA BLEACH” TECH WILL PROTECT CUSTOMER DATA BY MAKING IT VALUELESS Elavon announced its Secured Point-to- defend themselves from the increasing Standards Council P2PE solution. It also Point Encryption (P2PE) solution has been number of data breaches. By encrypting assists companies in reducing the high costs successfully validated by the Payment Card credit and debit card data on Point-of- associated with achieving PCI compliance Industry (PCI) Security Standards Council. Sales terminals, it prevents the personal as an integrated, ready-to-go solution for Secured P2PE provides Elavon’s European information of customers from being payments terminals. customers with some of the strongest accessed during cyberattacks. Secured IBM and the Ponemon Institute’s 2018 The commercially available encryption protection P2PE works by encrypting sensitive card Cost of a Data Breach report estimates the by making card data valueless if stolen. It payment until delivery to Elavon’s secure average costs of data breaches in the United emphasises Elavon’s commitment to be a decryption environment. Kingdom at £2.84million. Furthermore, this trusted choice for businesses looking for a A strict chain of custody, including secure global study points to the extensive use of payments partner. devices, applications and processes satisfies encryption as a top factor in reducing the per Elavon’s solution helps businesses requirements for a validated PCI Security capita cost of data breaches.

HITACHI AND SBI LAUNCH NEW INDIAN PAYMENTS PLATFORM , with more than 420 million Under the new agreement, the two customers and more than 600,000 POS companies will forge a joint venture with the terminals is the largest merchant acquirer aim of establishing a card acceptance and in the Indian market in terms of terminals future-ready digital payments platform for has inked a JV with Hitachi for a new India within the context of the Government's payments platform. "Digital India" initiative. Hitachi, which claims 55,000 ATMs and Rajnish Kumar, chairman of the State 850,000 POS devices under management Bank of India, comments: "At 2500 POS per In Hitachi Payments, we see a long-term in India, has been providing deployment, million people, the penetration of payment business and technology partner that has the technology and management services for the acceptance infrastructure is still low. ability, capability and willingness to develop card and digital acceptance payment network With this JV, we aim to grow the payment the broad vision of SBI which is tied into the of SBI since 2011, running over 70% of the landscape by providing a frictionless modern success of the digital payment imperatives of bank's current network. digital payment platform to our customers. the country."

DEUTSCHE BANK DIGITAL CHEQUE PROCESSING PLATFORM Deutsche Bank is to migrate its cheque the world, the volumes across the industry are intensive, highly manual task,” says Shahrokh processing operations to a digital, cloud-based falling and processing them remains a labour- Moinian, Global head of cash products, Global platform run by India's HCL technologies. Transaction Banking of Deutsche Bank. Set to go live in 2019, the new paperless “This strategic partnership is a great example platform will not only improve straight-through where we are proactively responding to client processing rates it will also generate data on needs and changing industry dynamics. We are business flows and working capital for onward turning a challenge of a commoditised product use by the German bank's corporate and with declining volumes into an opportunity institutional clients. for innovation and creation of digital assets, “While cheques are still widely used around which will ultimately benefit our customers.”

32 payments cards & mobile magazine - november / december 2018 www.paymentscm.com contracts

INGENICO AND NATIXIS EYE STRATEGIC MERGER

The French bank Natixis is reported to be billion. But its shares have lost close to 30 reviewing a potential deal with Ingenico as percent in value so far this year and the group the companies look to expand in the rapidly has been the subject of takeover speculation consolidating payments sector. since it made a failed £6.6 billion approach for In a statement today, Natixis confirmed that WorldPay ahead of its UK rival’s IPO in 2015. the company has “an interest in exploring the The potential deal, which was first reported rationale of a possible industrial combination by Bloomberg, would fit with Natixis’ strategy. of consolidation in the European payments of Natixis payment activities with Ingenico The bank is keen to expand its payments sector, with a slew of takeovers being pushed Group and its businesses and having business and is trying to move outside of its through in search of scale. In May, Worldline preliminary discussions in this respect.” home market. Newly installed chief executive agreed to buy Swiss SIX Group’s payments unit Ingenico also confirmed it had “received Francois Riahi recently told the Financial for €2.3 billion including debt. preliminary approaches for a strategic Times that while his payments business is Last year, Hellman & Friedman acquired transaction” and said it had “initiated a review “75 percent France now — we want to be 50 Denmark’s Nets in a $5.3 billion deal, and of its options and of their respective merits.” percent France by 2020.” Paysafe was bought by a consortium of private Ingenico has a market capitalisation of €4 An agreement would be the latest example equity groups for £3 billion.

NCR STEPS INTO PAYMENTS WITH JETPAY ACQUISITION NCR announced a definitive agreement to accelerates NCR’s strategy of increasing NCR to couple stickier, feature-rich POS acquire US based JetPay, a provider of end-to- recurring revenue growth and expanding and payment acceptance applications with end payment processing. margins by enhancing its mix of software payment processing,” continues Rivka Gewirtz The transaction will be a cash tender offer and services. Little, Research Director, Worldwide Payment of $5.05 per JetPay share, which represents “The acquisition of JetPay is a key, strategic Strategies, IDC. a multiple of 2.9 times the 2018 consensus initiative that will enable NCR to create a full, The transaction is anticipated to close by revenue forecast of $63.4 million. The purchase end-to-end integrated payments offering for year-end, subject to regulatory approval and price is approximately $184 million and will be its enterprise-wide POS customers,” comments other customary closing conditions. financed with a combination of cash on hand Michael D. Hayford, President and Chief and existing capacity under NCR’s revolving Executive Officer, NCR. “Enabling payments credit facility. The offer has been approved by as part of our transactions is part of our long- each company’s board of directors. term strategy to create integrated value for This acquisition will enable NCR to integrate our clients.” a cloud-based payments platform into its “NCR’s acquisition of JetPay reflects enterprise point-of-sale (POS) solutions an important trend in consolidation in the for retail and hospitality industries. It also payments ecosystem. This acquisition allows

TRUSTLY PARTNERS WITH LARGEST EUROPEAN P2P MARKETPLACE MINTOS Trustly has partnered with Mintos, a global bank transfers, the investors using the Mintos newly registered investors chose to transfer online marketplace for loans which provides marketplace will be able to transfer money in their funds with Trustly because of its speed retail investors with a way to invest in loans real-time, without having to wait as is required and convenience. from around the world. “We are delighted to partner with Mintos, By implementing Trustly’s direct online who will make our bank payment method banking payments, Mintos now allows available to their growing investor base,” investors to easily transfer funds – in real- says Johan Nord, CCO at Trustly. “We have a time – to and from bank accounts across 29 common interest in making online payments European countries. The collaboration will as convenient and efficient as possible facilitate and simplify investors to invest in for local and international investors. This credits through the Mintos marketplace. partnership is an excellent example of how two Mintos has a fast-growing customer base financial technology businesses can partner to and the number of investors using the platform create value for investors by streamlining the is expected to reach 100,000 by the end of the with conventional clearing systems. During transaction process, while also delivering the year. With Trustly’s method for direct online the test period in the Baltics, 80 percent of highest level of transaction security.”

www.paymentscm.com payments cards & mobile magazine - november / december 2018 33 conferences UPCOMING EVENTS

MoneyLIVE Summit 2018 As anticipated, Money2020 USA held in Las Vegas 21-24 October was 26-27 November, London a great success. Over 11,000 attendees from 100 countries filling www.marketforce.eu.com/money-live/ event/summit/ the presentations throughout 5 subject tracks and visiting the 500+ sponsors and exhibitors. As always, it was efficiently and professionally GSMA Mobile 360 MENA run by the Money20/20 team. 26-27 November, Dubai www.mobile360series.com/MENA/ Forthcoming events include Trustech in Cannes 27-29 November. The event has been Open Banking Expo changing and evolving but still attracts senior executives from the payments industry. This 27 November, London year conference sessions will include Biometrics, Mobile Payments and Wallets, Blockchain www.accourt.com www.openbankingexpo.com THE LEADING EVENT and Regulation. Trustech 27-29 November, Cannes The Central European Digital Payments conference in Warsaw 11-12 December is firmly www.trustech-event.com established in the Industry Calendar. With 350+ delegates meeting for a full programme of FOR DIGITAL Advanced payments expertise, knowledge currentand delivery topics for the payments industry. Sessions are in Polish or English with simultaneous Branch Transformation interpretations. There is also a Gala Diner where the winners of the best Polish payment 27-28 November, London solutions for 2018 are announced. www.rbrlondon.com/conferences/bt/ TRUST GSMA Mobile 360 Latin America A new addition to our events calendar is the Paris Fintech Forum 29-30 January 2019. This is 4-6 December, Buenos Aires Accourt is a leading provider of strategic the 4th annual event and they predict even more success than previous years, expecting over www.mobile360series.com/latin- and operational consultancy services to TECHNOLOGIES 2,500 attendees , 220 speakers and 120 exhibitors. america/ the payments industry worldwide with specialist expertise, knowledge and FDATA 2nd Annual Global delivery of payment systems Ad Index November / December 2018 Open Banking Summit #TRUSTECH2018 6-7 December, Edinburgh Accourt www.accourt.com P9 Fdata.global/summit/ equensWorldline www.equensworldline.com Cover P2 Merchant Payments Ecosystem merchantpaymentsecosystem.com P7 Paris Fintech Forum 29-30 January, Paris Mobile World Congress www.mobileworldcongress.com P30 www.fintechforum.com MONEYlive Spring www.marketforce.eu.com/mlsummit P17 REGISTER ONLINE Paris FinTech Forum www.parisfintechforum.com P28 Merchant Payments Ecosystem Payments Yearbooks www.paymentsyearsbooks.com P21 19-21 February, Berlin www.trustech-event.com RS2 www.rs2.com Cover P4 merchantpaymentsecosystem.com Trustech www.trustech-event.com Cover P3 MEFTECH 2019 25-26 February, Riyadh www.meftechksa.com

MONEYLIVE Spring 2019 11-13 March, Madrid new.marketforce.eu.com/money-live/ STRATEGY | DELIVERY | OPERATIONAL EFFECTIVENESS events/spring

use code PCM to save 10% TechNOVA:AI in Financial Services 27 March, London 27 29 new.marketforce.eu.com/technova/ 11 – 13 March 2019 Melia Avenida America, Madrid, Spain

Whether you’re a payments professional, a retail banker or FinTech, MoneyLIVE events/ai-financial-services/ Spring is the place for you. Comprising of two separate conferences in the same venue, you’ll have your pick of speakers, content and attendees from both MoneyLIVE: Cards & Payments and MoneyLIVE: Retail Banking Europe. Nov.

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